Enjoei (ENJU3) Q2 2023 earnings summary

Executive summary

• Gross margin reached 50.6%, adjusted EBITDA loss narrowed to R$2.1M, and operating cash flow turned positive at R$1.1M.

• Total GMV rose 8.3% QoQ to R$262.3M but fell 12.6% YoY; fashion GMV increased 15.2% QoQ.

Financial highlights

• Net revenue was R$40.1M, up 6.8% YoY and 11.8% QoQ; 6M23 revenue increased 11.7% to R$76.0M.

• Gross profit reached R$20.3M, up 52.8% YoY; gross margin expanded 15.2 p.p. to 50.6%.

• Adjusted EBITDA loss narrowed to R$2.1M from R$15.6M in 2Q22 and R$5.6M in 1Q23; 6M23 loss was R$7.7M versus R$41.3M.

• Net loss was R$4.9M versus R$18.1M in 2Q22; 6M23 net loss was R$13.9M versus R$49.2M.

• Q2 operating expenses fell 19% YoY to R$31.2M; G&A excluding stock-based compensation declined 28% to R$11.8M.

Outlook and guidance

• Growth initiatives were set to resume in 3Q23, prioritizing seller-base expansion and product assortment while maintaining improved profitability and cash dynamics.

• Planned actions included brand campaigns, seller-management tools, improved listing and delivery experiences, and gradual marketing investment.

• Seller acquisition and inventory expansion were expected to take time to yield returns; management anticipated stronger YoY results in Q4 without issuing formal guidance.