Bemobi Mobile Tech (BMOB3) Q3 2024 earnings summary

Executive summary

• Achieved four consecutive quarters of accelerated growth in net revenue and adjusted EBITDA, with balanced expansion across all four business lines and geographies, including entry into five new countries and strong results in Brazil and internationally.

• Revenue growth reached 15% year-over-year in Q3 2024, driven by Digital Subscriptions (+26% YoY), SaaS (+17% YoY), and Payment Solutions (+7% YoY), with operational leverage and controlled expense growth.

• Operational cash generation increased 10% YoY to R$37 million, with free cash flow at R$56 million and a cash conversion rate above 73%.

• Added major enterprise clients and expanded international presence, especially in Eastern Europe, with new partnerships in Utilities, Education, and ISPs.

• Focused on integrating payments and software, with over half of revenue from this combination and continued upselling and cross-selling to SaaS clients.

Financial highlights

• Net revenue grew 15% YoY to R$153.3 million in Q3 2024, with all business lines expanding.

• Adjusted EBITDA rose 17% YoY to R$51 million, with margin expanding to 33%.

• Net income attributable to controlling shareholders reached R$78.1 million for 9M24, up from R$45.9 million in 9M23.

• Operational cash flow increased 10% YoY to R$37.1 million; free cash flow was R$56 million.

• Cash position at quarter-end was R$570 million, reflecting strong operational performance and positive working capital dynamics.

Outlook and guidance

• Management maintains a positive outlook for 2025, expecting continued acceleration in revenue and EBITDA, driven by new client contracts, international expansion, and deepening partnerships.

• Strategic focus remains on M&A to strengthen Payment vertical and enhance shareholder returns through dividends and share buybacks.

• Utilities segment expected to become increasingly relevant in 2025 as digitalization and new payment solutions are adopted.