CI&T (CINT) Q4 2023 earnings summary

Executive summary

• FY2023 net revenue rose 2.1% reported and 4.1% at constant currency to R$2,233.5M; net profit increased 38.5% to R$132.6M.

• Operating cash generation was R$414.3M; free cash flow was R$271.1M.

Financial highlights

• 4Q23 net revenue fell 14.6% reported and 12.3% at constant currency to R$522.6M; adjusted EBITDA declined 18.7% to R$103.6M, with a 19.8% margin.

• 4Q23 net profit was R$22.9M versus R$22.4M; adjusted net profit rose 13.2% to R$48.9M, with a 9.4% margin.

• FY2023 adjusted EBITDA increased 3.5% to R$432.1M; adjusted net profit rose 14.4% to R$193.9M, with an 8.7% margin.

Outlook and guidance

• 1Q24 net revenue guidance: at least R$520M reported, assuming an average exchange rate of R$5.00/US$1.

• FY2024 constant-currency revenue growth guidance: -2.5% to +2.5%; adjusted EBITDA margin guidance: 17%–19%.

• Guidance is forward-looking; actual results may differ materially, and quantitative reconciliation of forward-looking non-IFRS measures was not provided because certain items cannot be reasonably predicted.