Bemobi Mobile Tech (BMOB3) Q2 2024 earnings summary

Executive summary

• Achieved robust double-digit revenue growth of 11% YoY in Q2 2024, led by Digital Payments and SaaS integration for recurring service industries, with strong recovery in Digital Subscriptions and resilient international operations.

• Adjusted net income (excluding swap effects) more than doubled YoY to approximately R$40 million, supported by a lower effective tax rate and positive FX impact.

• Operational cash generation increased 15% YoY to R$36 million, with a cash conversion rate of 74%.

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

• Continued strategic focus on integrating SaaS with Payment Solutions and expanding into essential recurring service industries.

Financial highlights

• Net revenue reached R$147.2 million in Q2 2024 (+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 in Q2 2024 (+102% YoY), with net margin at 27%.

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

• Operational cash flow reached R$35.6 million in Q2 2024 (+15% YoY), with cash conversion rate at 74%.

Outlook and guidance

• Management expects revenue acceleration in the second half of 2024 as new enterprise clients are onboarded and services rolled out, especially in Digital Payments.

• Continued focus on M&A to strengthen vertical payment and SaaS strategy, with share buybacks and dividend payments as capital allocation priorities.

• Optimism for future expansion, with new business initiatives gaining traction and commercial initiatives in Payments expected to mature.

• Microfinance expected to remain stable with slight retraction, while credit scoring is projected to double in one to two years in current markets.

• Payments segment seen as a major growth driver, with potential to double or triple business in the near term.