ClearSale (CLSA3) Q4 2024 earnings summary

Executive summary

• Completed or announced the merger with Serasa Experian, securing all regulatory and shareholder approvals, with closing scheduled for April 2024 or April 2025 depending on the document; BDR exchange ratio defined and BDRs began trading.

• Emphasized business continuity, integration, and unlocking synergies with Serasa Experian, with a focus on simplification, scalability, and profitability.

• Achieved revenue diversification, reduced dependence on large marketplaces, and repositioned the brand.

• Optimized structure, invested in technology, and stabilized cash burn, preparing for profitable growth and international expansion, including a new subsidiary in Argentina.

• Audit confirmed financial statements present a true and fair view in accordance with Brazilian GAAP and IFRS as of December 31, 2024.

Financial highlights

• Total net revenue for 2024 was R$474.6 million, down 5.9% year-over-year.

• Gross margin improved to 41% or 41.0% (ex-LTI) for the year, up 2.9 p.p. year-over-year.

• Gross new sales revenue grew 36.4% year-over-year to R$72.9 million in 2024.

• EBITDA ex-LTI for 2024 was -R$6.0 million, an improvement of R$18.4 million year-over-year.

• Operating cash flow reached R$62.1 million in 2024; cash at year-end was R$357.8 million.

Outlook and guidance

• Positioned for scalability, profitability, and entry into new markets and segments, with a focus on leveraging new products, technology investments, and brand repositioning.

• The merger with Serasa Experian is expected to bring strategic synergies and expanded market reach, subject to regulatory and contractual conditions.