Locaweb Serviços de Internet S A : 4Q23 Earnings Presentation
March 20, 2024 at 05:18 pm EDT
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Results Presentation
4Q23
March 21, 2024
Disclaimer
The statements contained in this document related to business prospects, projections on operating and financial results, and to the growth perspectives of Locaweb Serviços de Internet S.A. are merely projections and, as such, are based exclusively on the expectations of the Board about the future of the business. These expectations depend materially on market conditions, the performance of the Brazilian economy, the sector and international markets and, therefore, are subject to changes without notice. All variations presented here are calculated based on numbers in millions of reais (unless otherwise stated), as well as rounding. This performance report includes accounting and non-accounting data such as operational, organic and pro forma financial data and projections based on the expectations of the Company's Management. The non-accounting data have not been reviewed by the Company's independent auditors
Fernando Cirne
CEO
4Q23 Highlights
Profitability, EBITDA and Cash Generation
Consolidated EBITDA margin with an expansion of 3.7 p.p. vs 4Q22, reaching 19.7% in 4Q23. The Company's highest quarterly margin since the beginning of the acquisition process
Expansion of the EBITDA margin of acquired companies, reaching 10.2% in 4Q23 (+22.1 p.p. since 4Q21 and +13.0 p.p. since 4Q22) due to operational leverage resulting from the strong growth of the majority of acquired companies
Adjusted EBITDA grew 41.5% vs 4Q22 and 26.3% vs 3Q23
Free Cash Flow after Capex of R$ 84.3 mm, 93.8% higher than in 4Q22
Growth
Net Revenue Growth of 14.8% vs 4Q22. In 2023, growth was 13.9% vs 2022
Commerce grew 18.2% vs 4Q22 (R$ 243.4 mm in Net Revenue). In 2023 the growth was 21,8%
3
LWSA evolution
Pre-IPO
Post IPO
Until 2023
Going Forward
BeOnline / SaaS used to
Commerce segment expansion
Commerce ECOSYSTEM
Increase profitability
represent 80% of the group
(70% of revenues)
reached ~20% share in Brazilian
GMV
Lower growth with higher
M&A strategy and Commerce
Focus on M&A integration
Increase the growth pace
margins
ecosystem enhancement
Increased profitability through
operational leverage
First steps in the Commerce
Higher growth with lower
Simplification of corporate
Monetization of investments
segment
margins
structure
already made in the
ecosystem
(Net Revenues and Adj. EBITDA Margin)
1.400,0
1,292.8
35,0%
1.200,0
1,135.4
30,0%
1.000,0
28.7%
800.2
25,0%
26.5%
25.1%
800,0
20,0%
600,0
488.2
17.9%
17.5%
15,0%
385.7
315.0
14.9%
400,0
10,0%
200,0
5,0%
4
0,0
0,0%
2018
2019
2020
2021
2022
2023
Financial
Services
Ecosystem of
Digital
Solutions
Logistics
Core Journey
r
Commerce
SMBs and
C
o
Enterprise
s
s
J
o
u
r
n
e
y
ERP
BeOnline
5
Growth Avenues
1
TAM Expansion
(Wake)
Product
Readiness
Impact on
2H24
results
2
Pricing
Growing in 24
3
Cross-selling
Growing in 24
4
Financial Services
2H24
5
Inorganic
Growth
Only if it has size + price + profitability
Ongoing AI investments with potential to improve every part of our ecosystem
6
6
Revenue of Commerce segment
Commerce Revenue
R$ mm
+18.2%
243.4
205.9
139.4
121.0
84.9104.0
4Q224Q23
Platform Subscription Revenue
Ecosystem Revenue
Platform Subscription Revenue (+22.5%)
Ecosystem Revenue (+15.2%)
7
Ecosystem GMV and Commerce Subscriber Base
Ecosystem GMV
R$ bi
+17.9%
16.8
14.3
4Q224Q23
+12.1% QoQ
8
Commerce Subscriber Base
In thousands
+13.7%
184.3
162.0
4Q224Q23
Total customer volume of the Commerce operation during the 4Q was 470 thousand
unique customers
Own Stores GMV and TPV
Own Stores GMV
R$ bi
+22.7%
1.5
1.2
4Q224Q23
QoQ: +17.2% vs 3Q23
9
TPV
R$ bi
+20.7%
1.8
1.5
4Q224Q23
QoQ: +6.6% vs 3Q23
9
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Locaweb Serviços de Internet SA published this content on
20 March 2024 and is solely responsible for the information contained therein. Distributed by
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Lwsa SA, formerly Locaweb Servicos de Internet SA, is a Brazil-based provider of Business-to-Business (B2B) technology solutions. The Companyâs activities are divided into two operating segments: Be Online/SaaS and Commerce. The Be Online/SaaS segment offers services of hosting, hosting reseller, domain registration, cloud computing and dedicated servers, as well as solutions related to email accounts, email marketing campaigns and Internet Protocol (IP) communication, mainly through brands Locaweb, KingHost, and Octadesk. The Commerce segment is engaged in facilitating online retail operations, providing e-commerce platforms and payment solutions, mainly through brands Tray, Bagy, Melhor Envio, Wake Commerce, Squid by Wake, and Bling CPlug.