Financial Data and Key Metrics Changes - The company reported a top line revenue increase of 14.4% and EBITDA growth of 30% for 2024 [18][19] - Net cash from operating activities increased to 38,600,000 reais, marking a substantial rise [18] - The company achieved its first operating profit since inception five years ago, indicating consistent historical growth in top line and improved margins [19][22] Business Line Data and Key Metrics Changes - The company has acquired seven companies across different segments, with a diversified client base of 22,000 clients, where no single client represents more than 0.25% of total revenue [13][14] - The average revenue per user increased to 8,500.0 reais, and the lifetime value of clients grew by 50% [20][21] - The company has maintained a high recurring revenue rate of 90% and low churn rates across its portfolio [20][21] Market Data and Key Metrics Changes - The total IT spend in Brazil is approximately $9.2 billion, driven by the digital transformation of small and medium businesses [11] - Brazil represents 44% of the market, with plans to expand into Mexico, Colombia, Chile, and Argentina over time [12] - The SaaS market in Latin America is growing at twice the pace of the rest of the world, presenting significant opportunities [13] Company Strategy and Development Direction - The company focuses on acquiring multisector SaaS businesses that are established, profitable, and have growth potential, differentiating itself by targeting companies too small for private equity [6][7] - The management team has a clear acquisition strategy, having evaluated over 2,500 companies since inception, emphasizing the predictability and diversification of revenue [23][40] - A partnership with Oracle is anticipated to enhance AI capabilities, driving efficiencies and margin expansion [20][46] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the current market conditions, noting a lack of IPOs in Brazil and high interest rates, which create favorable acquisition opportunities [9] - The company aims to utilize cash flow for acquisitions while maintaining operational efficiency, with a focus on EBITDA and cash flow generation as primary KPIs [34][43] - Management acknowledged the challenges of compliance with Nasdaq, including notifications regarding market cap and stock price, and outlined plans to address these issues [36][39] Other Important Information - The company has a strong governance structure, being audited by a top four auditing firm and utilizing Oracle for operational governance [26] - Employee churn has been reduced by 60% after companies are integrated into the NuVini portfolio, indicating effective management practices [25] Q&A Session Summary Question: How should success be tracked? - Management emphasized the importance of cash flow generation, EBITDA, and revenue diversification as key performance indicators [34][35] Question: What is the plan to stay compliant with Nasdaq? - Management acknowledged concerns regarding market cap and stock price, stating efforts are underway to improve compliance [36][39] Question: Does the growing pipeline impact acquisition criteria? - Management confirmed that while the pipeline is expanding, the criteria for acquisitions remain firm, focusing on revenue predictability and diversification [40][41] Question: What is management's view on the current share price? - Management stated that the market will ultimately determine the stock price, while they continue to execute operationally [42] Question: What are the capital allocation priorities? - Management clarified that excess cash generated by profitable companies is allocated for acquisitions and related expenses [43] Question: What are the current capital needs outside of acquisitions? - Management indicated that operational needs are minimal, with a focus on servicing existing obligations [44] Question: What role does AI play in the portfolio? - Management highlighted the importance of implementing AI solutions for various operational efficiencies and announced a partnership with Oracle to enhance these capabilities [46]

Financial Data and Key Metrics Changes - The company reported a top line revenue increase of 14.4% for 2024, with EBITDA growth of 30% [21] - Net cash from operating activities reached 38.6 million reais, marking a substantial increase [21] - The company achieved its first operating profit since inception five years ago, indicating consistent historical growth in top line and improved margins [22] Business Line Data and Key Metrics Changes - The company has acquired seven companies across different segments, with a diversified client base of 22,000 clients, none representing more than 0.25% of total revenue [15][16] - The average revenue per user increased to 8,500.0 reais, and the lifetime value of clients grew by 50% [23][24] - The company has maintained a high recurring revenue rate of 90% and low churn rates across its platform [23][24] Market Data and Key Metrics Changes - The total IT spend in Brazil is approximately 9.2 billion dollars, driven by the digital transformation of small and medium businesses [13] - The SaaS market in Latin America is growing at twice the pace of the rest of the world, with Brazil representing 44% of the market [14][15] - The company plans to expand into other Latin American markets such as Mexico, Colombia, Chile, and Argentina over time [14] Company Strategy and Development Direction - The company focuses on acquiring multisector SaaS businesses that are growing or profitable, positioning itself as an M&A platform in the SaaS segment [8][9] - The management team emphasizes a clear investment thesis with a focus on cash flow generation and operational efficiency [12][25] - A partnership with Oracle is expected to enhance AI capabilities, driving efficiencies and margin expansion [23][48] Management's Comments on Operating Environment and Future Outlook - The management highlighted the current high interest rates in Brazil and the lack of IPOs as opportunities for acquisitions [11] - The company aims to utilize cash flow for further acquisitions while maintaining a focus on improving EBITDA margins [25][44] - Management expressed confidence in executing operational strategies to enhance market position and stock performance [43][44] Other Important Information - The company has a thorough due diligence process for acquisitions, focusing on predictable cash flow and revenue quality [27][41] - The management team has extensive experience in both operational and investment roles, contributing to the company's strategic direction [32][34] Q&A Session Summary Question: How should success be tracked? - The company emphasizes cash flow generation, EBITDA, and revenue diversification as primary KPIs [36] Question: What is the plan to stay compliant with Nasdaq? - The company is addressing notifications regarding market cap and stock price, with plans for operational execution to improve compliance [38][40] Question: Does the growing pipeline impact acquisition criteria? - The company prioritizes revenue predictability and quality in its acquisition criteria as the pipeline grows [41][42] Question: Management's view on current share price? - Management refrains from commenting on stock price, focusing instead on operational execution [43] Question: What are the capital allocation priorities? - The company allocates excess cash generated from profitable companies for acquisitions and related expenses [44] Question: Current capital needs outside of acquisition pipeline? - The company has minimal operational needs apart from M&A activities, with a debenture reduced from 12 million to about 4 million [45] Question: Role of AI in driving efficiencies? - The company is actively implementing AI solutions for various operational aspects and has plans for a major partnership with Oracle [48]

Nuvni's Next Chapter: From Collector to Compounder NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- Nuvini Group Limited (Nasdaq: NVNI) ("Nuvini" or the "Company"), a leading acquirer of private B2B SaaS companies in Latin America, today issued a letter to shareholders from Nuvini Founder and CEO Pierre Schurmann. Dear Fellow Shareholders, I wanted to take this occasion having recently announced our 2024 Full Year results and celebrated over 18 months as a public company to reflect on our journey thus far and dis ...

Core Insights - Nuvini Group Limited reported record FY24 revenue of R$193.3 million, representing a 14.4% increase from R$169.0 million in FY23, driven by higher SaaS subscription revenue and improved customer retention [1][6] - The company achieved its first operating profit of R$16.5 million, a significant turnaround from a loss of R$(189.2) million in FY23 [1][6] - Adjusted EBITDA rose to R$57.4 million, marking a 30% increase compared to R$44.3 million in FY23 [1][6] - Nuvini plans to complete a minimum of four acquisitions in 2025 as part of its expansion strategy [5] Financial Highlights - Gross profit increased to R$122.5 million with a margin of 63.4%, up from R$102.8 million and 60.8% in FY23 [6] - Adjusted free cash flow improved to R$22.5 million, an increase of R$31.9 million compared to the previous year [6] - Cash and equivalents at year-end were R$18.0 million, up from R$11.4 million at the end of FY23 [6] - Churn rate improved to (2.9)% from (3.3)% in FY23, indicating better client satisfaction [6] Strategic Developments - The company announced the acquisition of Munddi, an online platform connecting brands with consumers, suppliers, and retail chains in São Paulo, Brazil, which is expected to close in Q2 2025 [3][4] - This acquisition is part of a broader strategy to enhance profitability and expand the revenue base through targeted acquisitions [4]

Financial Performance - Nuvini reported net losses of R$78.2 million, R$247.9 million, and R$114.2 million for the years ended December 31, 2024, 2023, and 2022, respectively, with a working capital deficit of R$348.3 million as of December 31, 2024[73]. - Nuvini's net operating revenue for the year ended December 31, 2024, grew 14%, from R$169.0 million in 2023 to R$193.3 million in 2024[81]. - Nuvini's future profitability may take time to achieve, as it continues to incur significant expenses and losses during its growth phase[73]. - The company has incurred an increasing amount of debt in recent years to support acquisitions, impacting its financial flexibility[242]. - Nuvini's financial performance may be significantly affected by general economic conditions and fluctuations in currency exchange rates[246]. Client Retention and Revenue Risks - As of December 31, 2024, 97.1% of clients renewed their subscriptions to Nuvini Group services or products every month, compared to 96.7% in 2023 and 95.4% in 2022[91]. - Nuvini S.A.'s future revenue flow is uncertain due to clients' ability to terminate engagements at any time, potentially leading to significant revenue loss[92]. - If a significant number of clients reduce their usage of Nuvini's SaaS solutions, the company may need to increase sales and marketing expenditures, adversely affecting its financial condition[93]. - Demand for Nuvini's SaaS solutions may fluctuate due to economic conditions, affecting clients' capital spending and, consequently, Nuvini's revenue[106]. Growth Strategy and Acquisitions - Nuvini plans to continue acquiring other SaaS businesses to expand into new markets in Latin America, with a focus on Brazil[77]. - Nuvini has completed seven acquisitions since its inception and aims to integrate these businesses while maintaining their independent operations[79]. - Nuvini's growth strategy is dependent on the successful identification and acquisition of suitable SaaS business candidates[77]. - The company faces risks related to its rapid growth, including potential strains on management and operational capabilities[81]. Cybersecurity and Data Protection - The Nuvini Group's proprietary data platform processes and stores sensitive data, making it vulnerable to security breaches that could harm its reputation and demand for its services[117]. - Cybersecurity threats, including ransomware and phishing attacks, are prevalent and increasing, posing significant risks to the Nuvini Group's operations and client data security[118]. - Security breaches could lead to litigation, regulatory actions, and significant liabilities, adversely affecting the Nuvini Group's business operations[121]. - The Nuvini Group may incur additional costs to comply with increasing cybersecurity demands from clients, which could affect its financial performance[127]. Intellectual Property and Legal Risks - The Nuvini Group's inability to protect its proprietary technologies could adversely affect its competitive position[135]. - The Nuvini Group's intellectual property rights may not provide adequate protection in jurisdictions with less stringent laws, impacting its competitive position[144]. - The Nuvini Group may face significant legal expenses and operational delays due to claims of infringement against its proprietary technology[138]. - The Nuvini Group's businesses could be adversely affected by unauthorized use of its proprietary technology, which may be difficult to police[135]. Economic and Political Environment - The Nuvini Group's business is significantly impacted by the economic conditions in Brazil, which has experienced uneven growth and mild recessions recently[156]. - Ongoing political instability and corruption investigations in Brazil have led to a decline in market confidence, adversely affecting the Nuvini Group's business and share prices[161]. - Economic and political uncertainties in Brazil may lead to adverse effects on the Nuvini Group's operations and the trading prices of its shares[159]. - The Brazilian government's fiscal reforms are uncertain, which may adversely impact Nuvini's business and financial condition[164]. Compliance and Regulatory Risks - The Nuvini Group's consolidated effective income tax rate could be adversely affected by changing tax laws and interpretations[203]. - The Nuvini Group may face increased exposure to regulatory actions and fines if unable to lawfully transfer personal data from the EEA[197]. - The evolving nature of privacy and data protection laws may require the Nuvini Group to expend significant resources to adapt to changes[202]. - The Nuvini Group operates in jurisdictions with high corruption risks and must comply with anti-corruption laws, which if violated, could result in significant liabilities[220]. Internal Controls and Financial Reporting - Nuvini has identified material weaknesses in its internal control over financial reporting, which could result in material misstatements in future financial statements[229]. - Nuvini expects to incur approximately US$1.0 million on remediation efforts to address identified material weaknesses in internal control over financial reporting in fiscal year 2025[235]. - The company plans to hire accounting and finance personnel with public company reporting experience to strengthen its internal controls and compliance[232]. - Nuvini's management has concluded that its internal controls over financial reporting were not effective as of December 31, 2024[229]. Debt and Financing - Approximately 97.5% of Nuvini's loans and borrowings were subject to floating interest rates as of December 31, 2024, primarily linked to the CDI floating rate[170]. - Nuvini's ability to generate sufficient cash flow from operations is critical to service its debt obligations, which may limit its operational flexibility[252]. - Non-compliance with financial covenants may lead to defaults, potentially resulting in accelerated debt obligations and adversely affecting cash flows and liquidity[257]. - The Company requested waivers for covenant violations on December 13, 2024, and April 24, 2025, which were granted by debenture holders, alleviating concerns regarding potential early debt maturity[255][256].

Core Points - Nvni Group Limited is not in compliance with Nasdaq Listing Rule 5550(a)(2) and 5550(b)(2) regarding minimum bid price and market value of listed securities [1][2] - The company has been granted a 180-calendar day compliance period until October 13, 2025, to regain compliance [2][3] - If noncompliance persists, the company may qualify for a second 180-calendar day compliance period under certain conditions [3][4] Company Overview - Nuvini is a leading acquirer of private SaaS B2B companies in Latin America, headquartered in São Paulo, Brazil [5] - The company focuses on acquiring profitable SaaS companies with a consolidated business model, recurring revenue, positive cash generation, and growth potential [5] - Nuvini aims to create value through long-term partnerships with the management of its acquired companies [5]

Core Viewpoint - Nuvini Group Limited is expanding its portfolio through the acquisition of Munddi, marking the first of four anticipated acquisitions in 2025, aimed at strengthening its position in the Latin American B2B SaaS market [1][2] Company Overview - Nuvini is a leading acquirer of private B2B SaaS companies in Latin America, focusing on profitable, high-growth businesses with strong recurring revenue and cash flow generation [5] - The company aims to foster an entrepreneurial environment to help its portfolio companies scale and maintain industry leadership [5] Acquisition Details - Nuvini has entered into a term sheet for the acquisition of Munddi, an online platform based in São Paulo, Brazil, that connects brands with consumers, suppliers, and retail chains [1] - The acquisition is expected to close in approximately 60 days, pending the execution of definitive transaction documents and satisfaction of conditions [1] Strategic Fit & Growth Potential - The acquisition of Munddi is seen as a perfect fit for Nuvini's portfolio, enhancing synergies with existing companies such as Onclick, Leadlovers, and Mercos [2][3] - Munddi's platform will strengthen Nuvini's ecosystem, particularly in retail and supply chain solutions, unlocking cross-selling opportunities and optimizing business intelligence [3] About Munddi - Founded in 2015, Munddi assists small retailers in acquiring new customers by providing strategic insights and facilitating online product sourcing from regional suppliers [4] - The platform empowers manufacturers and retailers with data-driven business opportunities, streamlining connections in the retail supply chain [4]

Company Overview - Nuvini Group Limited is a leading acquirer of private SaaS B2B companies in Latin America, headquartered in São Paulo, Brazil [3] - The company focuses on acquiring profitable B2B SaaS companies with a consolidated business model, recurring revenue, positive cash generation, and significant growth potential [3] - Nuvini aims to invest in established companies and foster an entrepreneurial environment to help them become leaders in their respective industries [3] Upcoming Event - Nuvini will participate in the 37th Annual ROTH Conference from March 16th to March 18th, 2025, at the Laguna Cliffs Marriott Resort in Dana Point, CA [1] - The CEO, Pierre Schurmann, will host one-on-one meetings with investors during the event [2]

Core Viewpoint - Nvni Group Limited (Nuvini) has engaged MZ Group to enhance its investor relations and financial communications, aiming to increase visibility among retail and institutional investors in the SaaS B2B market in Latin America [1][2]. Company Overview - Nuvini is a leading acquirer of private SaaS B2B companies in Latin America, focusing on profitable companies with recurring revenue and high growth potential [5]. - The company currently has a portfolio of seven multi-vertical SaaS solutions that have undergone thorough due diligence to ensure alignment with its investment criteria [2]. Strategic Initiatives - The collaboration with MZ Group is designed to educate the investment community about Nuvini's acquisition strategy, which leverages management's direct access network to identify opportunities in the fragmented SaaS B2B markets of Brazil and Latin America [2]. - Nuvini aims to generate value for all stakeholders by supporting its portfolio companies in executing operations while maintaining a focus on long-term shareholder returns [2]. Investor Engagement - Investors are encouraged to sign up for email alerts to stay updated on company announcements and milestones [7]. - Nuvini's investor relations materials can be accessed through its dedicated website [3].

Core Points - Nuvini Group Limited has regained compliance with Nasdaq Listing Rules 5250(c)(2) as of February 5, 2025 [1] - The company filed the required Form 6-K reporting its unaudited condensed consolidated statements of profit or loss and financial position for the quarter [2] Company Overview - Nuvini is headquartered in São Paulo, Brazil, and is a leading acquirer of private SaaS B2B companies in Latin America [3] - The company focuses on acquiring profitable B2B SaaS companies with a consolidated business model, recurring revenue, positive cash generation, and growth potential [3] - Nuvini aims to invest in established companies and foster an entrepreneurial environment to help them become industry leaders [3] - The company's strategy includes buying, retaining, and creating value through long-term partnerships with existing management of acquired companies [3]