B3 - Brasil, Bolsa, Balcão (B3SA3) Q4 2024 earnings summary

Executive summary

• Total revenue for Q4 2024 reached R$2,667.8 million, up 7% year-over-year, supported by a resilient and diversified business model amid significant market volatility and political events.

• Recurring net income for Q4 2024 was R$1,201.0 million, a 13.6% increase year-over-year, with recurring EBITDA up 9.5% to R$1,597.6 million and a margin of 67.2%.

• Operational highlights include strong performance in listed derivatives, Bitcoin futures, and OTC derivatives, with double-digit growth in most OTC metrics year-over-year.

• Equities volumes benefited from volatility, with cash equities ADTV at R$25,592 million, and notable contributions from BDRs, ETFs, and listed funds.

• Continued growth in technology and data segments, with data revenue up 5–10% and advances in Neoway and Neurotech.

Financial highlights

• Net revenues for Q4 2024 were R$2,399.2 million, up 7% year-over-year, with recurring EBITDA margin improving to 67.2%.

• Recurring net profit was R$1,201.0 million, a 13.6% increase year-over-year.

• Adjusted expenses for 2024 were below the midpoint of guidance, reflecting disciplined cost control; total expenses decreased 15.3% year-over-year.

• Cash and financial investments stood at R$15,257 million at year-end.

• Adjusted net cash from operating activities reached R$6,321 million in 2024.

Outlook and guidance

• No specific volume or revenue guidance for equities due to market uncertainty, but management sees stability and potential upside in volumes, especially from diversified products.

• New tariff system for equities to be implemented in 2025, expected to equalize tariffs by investor type without impacting margins.

• Payout ratio guidance for 2025 set at 90%-110%, with a higher weight toward buybacks (around 70%) due to current share valuation.

• Management highlights resilience in revenue growth, driven by multiple business segments, and ongoing share buyback and capital return initiatives.

• Continued focus on cost discipline and capital structure optimization, including a R$1.7 billion debenture issuance in January 2025.