Bemobi Mobile Tech (BMOB3) Q2 2024 earnings summary

Executive summary

• Achieved double-digit growth in revenue, EBITDA, net income, and operational cash generation in Q2 2024, led by Digital Payments and SaaS integration for recurring service industries.

• Digital Payments TPV reached a record R$2.0 billion (+33% YoY), with revenue up 15% YoY; SaaS and Digital Subscriptions also posted strong gains, especially in international markets.

• Adjusted net income (excluding swap effects) more than doubled YoY to R$39.7 million, with a net margin of 27% in Q2 2024, aided by a lower effective tax rate.

• Operational cash generation was robust at R$35.6 million (+15% YoY), with a cash conversion rate of 74%.

• Maintained a solid cash position of R$514 million at quarter-end, despite one-off disbursements for interest on capital, profit sharing, and share buybacks.

Financial highlights

• Net revenue for Q2 2024 was R$147.2 million (+11% YoY), with Payments revenue up 15.8% and SaaS up 14.7%.

• Adjusted EBITDA rose 11% YoY to R$48.2 million, with margin at 32.8%.

• Adjusted net income ex-swap was R$39.7 million (+102% YoY), with net margin at 27%.

• Operational cash flow reached R$35.6 million (+15% YoY), with cash conversion rate at 74%.

• Gross margin was 71.9% in Q2 2024, down 1.6p.p. YoY due to higher customer acquisition costs.

Outlook and guidance

• Management expects revenue acceleration in the second half as new clients ramp up, especially in Digital Payments.

• Continued focus on M&A, share buybacks, and dividend payments for capital allocation.

• Optimism for future expansion, with new business initiatives gaining traction.