CI&T Inc(US:CINT)2022-03-10 16:29Financial Data and Key Metrics Changes - In Q4 2021, the company's net revenue was R$456.8 million, a 72% increase compared to Q4 2020, exceeding guidance of at least R$440 million [23] - For the full year 2021, net revenue totaled R$1.44 billion, a 51% increase year-over-year [24] - Adjusted EBITDA for Q4 2021 was R$101.8 million, up 78% from Q4 2020, with an adjusted EBITDA margin of 22.3% [23] - The adjusted net profit reached R$47.7 million in Q4 2021, a 62% increase compared to Q4 2020 [23] - The net revenue retention rate was 128%, indicating strong client engagement and recurring revenue [24] Business Line Data and Key Metrics Changes - The company added 19 new clients with net revenue above R$1 million in the last 12 months, increasing the total from 75 clients in Q3 2021 to 94 in Q4 2021 [23] - The integration of Dextra contributed to the growth, with the company now operating 26 growth units [42] Market Data and Key Metrics Changes - The West operation was the fastest-growing market, recording 50% organic growth in Q4 2021 compared to Q4 2020 [26] - All industry verticals showed significant growth, particularly technology, media, telecommunications, retail, and manufacturing [26] Company Strategy and Development Direction - The company aims for a 56% growth in 2022, driven by both organic growth and the contribution from the Somo acquisition [29] - The strategy includes a focus on M&A to foster organic growth, with a strong pipeline for future acquisitions [31] - The company is committed to enhancing its talent pool and diversifying its operations, particularly in Europe following the Somo acquisition [21][46] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges in the global economy but emphasized the ongoing demand for digital services as a significant growth opportunity [7][8] - The company expects to maintain a strong growth trajectory, with guidance for Q1 2022 net revenue of at least R$485 million, a 64% increase year-over-year [29] Other Important Information - The company reported a financial net cash position of R$145.8 million at the end of 2021, with a gross debt position of R$788.7 million [26] - The attrition rate at the end of 2021 was 15.6%, with leadership attrition at only 3.6%, indicating stability in management [19][50] Q&A Session Summary Question: Growth and margin cadence expectations for the year - Management guided for an annual growth of 56% for 2022, with 41% being organic growth and contributions from Somo [31][38] Question: Impact of geopolitical situations on business - The company has no direct exposure to the Ukraine and Russia regions but is monitoring the situation closely [34][35] Question: Revenue growth breakdown considering MRR and M&A - The growth profile includes 41% organic growth and over 10% from Somo, with a focus on established markets [38] Question: Attrition rate comparison with 2020 - The attrition rate was 15.6% in 2021, influenced by market conditions and the acquisition of Dextra [48][50]