Enjoei (ENJU3) Q3 2023 earnings summary

Executive summary

• Managerial GMV reached R$364.1m in 3Q23, up 31% YoY; reported revenue rose 50% to R$54.9m, with Elo7 included from its 10 August closing date.

• Gross margin expanded to 49.6%; adjusted EBITDA loss narrowed to R$8.9m from R$9.6m, while net loss widened to R$23.1m from R$10.2m.

• Active buyers reached 2.6m and available inventory 13.4m items; the quarter-end cash position plus immediately liquid receivables totaled R$298m.

Financial highlights

• Revenue was R$54.9m in 3Q23, up 50% YoY and 37% QoQ; 9M23 revenue rose 25% to R$130.8m.

• Gross profit reached R$27.2m, up 106% YoY and 34% QoQ; 9M23 gross profit increased 76% to R$63.5m.

• Net loss was R$23.1m versus R$10.2m in 3Q22; 9M23 net loss narrowed to R$36.9m from R$59.4m.

• Adjusted EBITDA loss was R$8.9m in 3Q23 versus R$9.6m in 3Q22; the 9M23 loss narrowed to R$16.6m from R$50.9m.

Outlook and guidance

• 4Q23 growth supports included the national “enjoei, faturei” campaign, funded with resources paid in 2022, and new seller, listing and commercial-model features.

• Elo7’s October gross profit increased ~30% vs. September and gross margin rose ~5 p.p. after commercial-policy changes; management expected rapid breakeven.

• Integration, logistics, payment, corporate-structure and expense initiatives target profitability and full-capacity platform integration by early 2024.

• Growth investment is to remain disciplined, with priorities including improved inventory circulation, category expansion and efficient returns.