Enjoei (ENJU3) Q1 2023 earnings summary

Executive summary

• Q1 net revenue rose 17.6% YoY to R$35.9 million; gross margin expanded 13.3 p.p. to 44.5%, while adjusted EBITDA loss narrowed to R$5.6 million.

• Total GMV declined 10.5% YoY to R$242.1 million, while fashion GMV grew 13.0% to R$189.6 million.

Financial highlights

• Net revenue was R$35.867 million, up 17.6% YoY; gross profit rose 67.8% to R$15.968 million.

• Adjusted EBITDA, excluding share-based compensation, was -R$5.594 million versus -R$25.744 million in Q1 2022.

• Advertising expenses declined 46% YoY to R$8.0 million; G&A excluding share-based compensation fell 31% to R$12.8 million.

Outlook and guidance

• Q2 priorities include payroll savings, initial advertising revenue recognition and lower payment-anticipation costs; growth initiatives are to resume gradually while preserving margin and LTV/CAC.

• Fashion GMV is expected to advance; near-term initiatives to expand total GMV are limited as margin gains create room for gradual growth investment.

• Plans include seller acquisition and inventory investment, optional seller commission formats, optimized subsidies and non-transactional revenue streams.