Enjoei (ENJU3) Q4 2023 earnings summary

Executive summary

• 4Q23 net revenue rose 86.3% YoY to R$63.7m; gross margin expanded 15.3 p.p. to 52.4%, and adjusted EBITDA reached R$3.1m positive.

• 4Q23 GMV grew 46.6% YoY to R$352.5m; FY23 net revenue rose 40.1% to R$194.6m.

• FY23 adjusted EBITDA loss narrowed to R$13.5m from R$55.9m in 2022; year-end liquidity was R$282m.

Financial highlights

• 4Q23 gross profit rose 163.2% YoY to R$33.4m; FY23 gross profit increased 99.0% to R$96.9m.

• 4Q23 consolidated net loss was R$16.0m versus R$7.1m in 4Q22; FY23 net loss narrowed to R$53.0m from R$66.5m.

• FY23 operating loss improved to R$75.0m from R$95.8m; net financial income was R$21.8m, down from R$29.2m.

• Q4 cost of services was R$30.3m, or 47.6% of revenue versus 62.9%; FY23 was 50.2% of revenue versus 65.0% in 2022.

• Q4 marketing expense was R$17.1m, including R$7.0m non-cash Media for Equity settlement; adjusted marketing plus incentives fell to 42.2% of gross billings from 54.5%.

Outlook and guidance

• 2024 priorities included product and technology, pricing, search, navigation, incentive efficiency, logistics and payments, while preserving profitability levels.

• First permanent stores were planned from Q2 2024, franchising from H2 2024, with an ambition of 300 stores in three years.

• Freight-cost reductions, pricing and inventory initiatives, and Elo7 integration synergies were expected to support gradual improvement; further one-off costs were expected in Q1 2024.