Infracommerce CXaaS (IFCM3) Q2 2023 earnings summary

Executive summary

• Q2 net revenue reached R$299.8m, up 36.0% YoY; GMV rose 40.0% to R$4.3bn despite a 14% H1 decline in Brazilian e-commerce sales.

• Adjusted EBITDA increased 181.8% to R$52.9m, with margin expanding to 17.7%; management focused on profitability and cash generation.

• The ecosystem ended Q2 with 758 customers, versus 597 in Q2 2022.

Financial highlights

• Q2 gross profit rose 41.1% to R$129.2m; gross margin improved 1.6 p.p. to 43.1%.

• Reported Q2 net loss was R$52.4m, versus R$61.0m a year earlier; adjusted net loss was R$26.0m under the presented reconciliation.

• 1H net revenue was R$513.9m, up 23.9% YoY; adjusted EBITDA was R$79.0m, up 123.1%.

• Q2 operating cash flow was R$134.4m, versus R$29.7m in Q2 2022.

Outlook and guidance

• FY23 guidance remained R$150m–R$170m for adjusted EBITDA and R$120m–R$140m for CapEx; H1 delivered R$78.9m and R$61.7m, respectively.

• H1 adjusted EBITDA less CapEx was R$17.2m against FY guidance of -R$10m to R$50m.

• Break-even initiatives target R$156m–R$176m in annualized savings; R$88m was completed by June, with R$32m–R$52m in progress for H2 2023 and most additional savings expected in 2024.

• 118 new customers were progressing through contract recognition and go-live, with revenue expected as projects launch; quarterly churn represented 0.2% of revenue.