Locaweb Serviços de Internet (LWSA3) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with a strategic focus on operational fundamentals, profitability, and simplification, following M&A-driven expansion and major corporate restructuring.

• Achieved strong growth in e-commerce, GMV (+16.3%), TPV (+15.3%), and subscriber base (up 4.8% to 193,200), with platform monetization and margin expansion.

• Adjusted EBITDA for 2024 was R$281.4 million, up 24.2% year-over-year, with margin expanding to 20.5%.

• Net income for 2024 was R$42.2 million, reversing a net loss in 2023.

• Completed Squid restructuring and set a clear path for growth reacceleration in 2025.

Financial highlights

• Consolidated net revenue rose 6% year-over-year to R$1,370.0 million in 2024; Q4 revenue was R$364.1 million, up 4.8%.

• Platform Subscription Net Revenue grew 22.3% in 2024 and 20.1% in Q4.

• Adjusted EBITDA margin improved to 20.5% in 2024 and 22.3% in Q4.

• Free cash flow after Capex was R$33.1 million in 2024.

• Net cash position at year-end was R$447.4 million (IFRS: R$373 million), with net debt (excluding earnouts) at negative R$100.0 million.

Outlook and guidance

• 2025 priorities include growth reacceleration 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 payments and related financial statement noise have ended, leading to clearer reporting in 2025.