Dotz (DOTZ3) Q2 2024 earnings summary

Executive summary

• Techfin growth, Loyalty integration and lower operating costs supported improved profitability; EBITDA excluding IFRS 16 reached R$5.5 million in 2Q24 and R$4.6 million in 1H24.

• Techfin billings grew 57.4% YoY in 2Q24 and 67.1% in 1H24, while total billings and 2Q24 net revenue before redemption costs declined YoY.

Financial highlights

• 2Q24 net revenue was R$39.0 million, up 12.6% YoY; 1H24 net revenue was R$75.1 million, up 15.7% YoY.

• 2Q24 net revenue before redemption costs was R$56.6 million, down 5.1% YoY; 1H24 net revenue before redemption costs was R$118.6 million versus R$119.7 million in 1H23.

• Total billings were R$56.3 million in 2Q24, down 11.1% YoY; 2Q24 gross profit was R$31.3 million, up 7.9%, and 1H24 gross profit was R$60.1 million, up 9.8%.

• Net loss narrowed to R$6.1 million in 2Q24 from R$18.6 million and to R$16.2 million in 1H24 from R$34.1 million in 1H23.

• 2Q24 diluted loss per share was R$0.46; 1H24 diluted loss per share was R$1.23.

Outlook and guidance

• Priorities include expense efficiency, profitable Techfin growth, loyalty coalition partnerships, product development and expansion across partners and points of sale.

• Management plans to strengthen bank and retail partnerships and continue consolidating the integrated loyalty and financial-services ecosystem.

• Dotz Parcela was in final soft-launch testing and described as ready to scale.