ClearSale (CLSA3) Q3 2024 earnings summary

Executive summary

• Signed a merger agreement with Serasa Experian in October 2024, with regulatory processes and EGM convocation underway; 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 slow the decline in total revenue.

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

• Ended 3Q24 with a net cash position of R$359 million, up R$4.2 million in the quarter, supported by R$22.7 million in operating cash generation.

Financial highlights

• Net revenue for 3Q24 was R$114.4 million, down 4.1% year-over-year; 9M24 net revenue was R$344.9 million, down 6.9%.

• Gross profit (ex-depreciation) in 3Q24 was R$41.5 million, up 16% year-over-year, with gross margin at 36.3%.

• EBITDA ex-LTI 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, an improvement of R$22.7 million.

• Operating cash generation was R$22.7 million in 3Q24 and R$45.2 million in 9M24.

• Costs and expenses reduced by R$41.7 million in 9M24.

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 make revenue more resilient long-term.

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

• Continued focus on cost reduction, cash management, and strategic transaction closing.

• Noted a slowdown in annual revenue decline, especially in Transactional Brazil.