ClearSale (CLSA3) Q3 2024 earnings summary

Executive summary

• Signed a merger agreement with Serasa Experian in October 2024, pending regulatory and shareholder approvals, aiming to become a wholly owned subsidiary.

• Focused on strategic pillars: growth in new sales, cost diligence, diversification, simplification, scalability, and profitability.

• Gross revenue from new sales reached R$47.6 million in 9M24, up 46.8% year-over-year, helping to slow the decline in total revenue.

• Maintained cost discipline and cash generation, despite one-off chargebacks and increased branding investments.

• Net loss narrowed to R$29.8 million for the nine months ended September 30, 2024, reflecting improved operational efficiency.

Financial highlights

• Net revenue for Q3 2024 was R$114.4 million, down 4.1% year-over-year; 9M24 net revenue was R$344.9 million, down 6.9%.

• Gross profit in 3Q24 was R$41.5 million, up 16% year-over-year; 9M24 gross profit was R$113.9 million.

• EBITDA (excluding LTI/ILP) in 3Q24 was -R$10.2 million, an improvement of R$9.3 million year-over-year; 9M24 EBITDA ex-LTI was -R$13.6 million, up R$22.7 million.

• Operating cash generation was R$22.7 million in Q3 and R$45.2 million in 9M24.

• Net cash position at quarter-end was R$359 million.

Outlook and guidance

• Management remains committed to growth, profitability, and cash generation, with continued investment in innovation and platform development.

• Revenue decline in large marketplaces is slowing, and diversification is expected to enhance long-term resilience.

• Planning for next year is based on strong new sales in 2024, with annualized MRR from new sales at R$72.9 million.