Locaweb Serviços de Internet (LWSA3) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with a focus on operational fundamentals, profitability, and simplification, following M&A-driven expansion, and included the completion of Squid restructuring.

• Achieved double-digit growth in GMV, subscriber base, and platform subscription revenue, with ecosystem GMV reaching R$69.7 billion and 193,200 subscribers.

• Prioritized shareholder returns through over R$190 million in buybacks and dividends, and launched new buyback programs for 2025.

• Launched new omnichannel solutions, integrated POS, and AI-driven tools to enhance customer value.

• Strategic agenda for 2025 centers on growth reacceleration, organizational streamlining, and leveraging existing assets.

Financial highlights

• Consolidated net revenue rose 6% year-over-year to R$1.37 billion in 2024; excluding Squid, revenue grew 10.4%.

• Own stores' GMV reached R$5.8 billion (+16.3% YoY); Q4 GMV was R$1.7 billion (+12.4%).

• Adjusted EBITDA increased 24.2% year-over-year to R$281.4 million, with margin improving to 22.3% in Q4.

• Cash generation proxy (Adjusted EBITDA minus CapEx and financial expenses) for 2024 was R$127.5 million, up 75% year-over-year.

• Net cash position at year-end was R$447.4 million (IFRS: R$373 million), after significant buybacks and dividends.

Outlook and guidance

• 2025 focus is on accelerating growth through a tactical plan with over 170 initiatives, leveraging existing assets, and maintaining financial discipline.

• No expectation of significant incremental investment; growth to be driven by internal resources and operational efficiency.

• Earnout obligations resolved, removing a key uncertainty for future periods; no further need to report ex-Squid results from 1Q25.