CI&T (CINT) FY Conference Transcript

Summary of CI&T (CINT) FY Conference Call - May 14, 2025 Company Overview - Company: CI&T (CINT) - Industry: IT Services and Digital Transformation Key Financial Highlights - First Quarter Results: CINT reported a solid performance, beating guidance with a year-over-year constant currency growth of 13.7% [3] - Revenue Guidance: Reaffirmed revenue growth guidance of 9% to 15%, with a midpoint of 12% [3] - EBITDA Margin: Adjusted EBITDA margin guidance for the year is between 18% to 20%, with a midpoint of 19% [4] Market Trends and Client Insights - Client Cohort: CINT's main clients are large, solid companies engaged in critical digital initiatives, which mitigates the impact of macroeconomic volatility [7] - Digital Projects: Significant demand for projects focused on customer experience and legacy system modernization, particularly in Brazil's financial sector [9][10] - AI Strategy: CINT's AI strategy is central to its offerings, enhancing customer experience and operational efficiency [4] CINT Flow and AI Integration - CINT Flow Launch: The platform was launched in July 2023, integrating AI capabilities and co-created with major clients [12][13] - AI Agents: Over 3,000 AI agents are now operational on the platform, enhancing productivity and efficiency [14] - Employee Engagement: 85% of employees use AI tools daily, indicating a strong integration of AI into the company culture [34][35] Competitive Landscape - Shift in IT Services: The return on investment equation is shifting towards custom development due to hyper productivity driven by AI [18][20] - Market Opportunities: CINT sees potential in verticalizing capabilities to create custom AI-driven solutions, contrasting with traditional horizontal IT consulting models [20] Investment and Growth Strategy - M&A Strategy: CINT views M&A as a long-term strategy but is cautious due to the current AI disruption, focusing on companies with strong client portfolios [57][58] - Talent Acquisition: The company is investing in fresh graduates to create an "AI native" workforce, emphasizing the need for adaptability in new hires [40][41] Challenges and Future Outlook - Legacy Modernization: Many large companies still face challenges with outdated systems, which CINT aims to address through cloud migration and modernization [25][26] - Productivity Concerns: While AI may reduce project sizes, the increase in demand for new solutions is expected to offset this effect [29][32] - Investor Relations: Transitioning to reporting in USD has improved comparability with peers, enhancing investor interest [62][63] Conclusion - CI&T is positioned for growth through its robust AI strategy, strong client relationships, and a focus on digital transformation. The company is navigating the challenges of legacy systems while capitalizing on the opportunities presented by AI and evolving market demands.