LPS Brasil - Consultoria de Imóveis (LPSB3) Q3 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q3 2024, with launches reaching R$9.7 billion, up 81% year-over-year, and intermediated volumes totaling R$3.7 billion, up 39% year-over-year, especially in São Paulo and Rio de Janeiro.

• CrediPronto mortgage volume surged 81% year-over-year to R$1.2 billion in 3Q24, with a 6.2% market share among private banks.

• Net income before IFRS was R$14.9 million in 3Q24, up 22% year-over-year; after IFRS, net income dropped 69% to R$5.5 million.

• EBITDA for 3Q24 was R$20.6 million, a 21% increase year-over-year, with margin rising to 39.4%, the highest since 2014.

• Cash and equivalents at quarter-end were R$43.6 million, up 98% from the previous quarter, or R$65.1 million including financial investments.

Financial highlights

• Net revenue reached R$52.4 million in 3Q24, a 17% increase year-over-year.

• Gross profit for 3Q24 was R$43.8 million, up 15% year-over-year; gross margin remained strong.

• Operating expenses increased, with selling, general, and administrative expenses totaling R$38.3 million in 3Q24.

• Net financial result was negative R$5.4 million in 3Q24, compared to a positive R$11.9 million in 3Q23.

• Cash flow from operations was R$12.3 million in 3Q24; cash and equivalents after financial investments totaled R$65.1 million.

Outlook and guidance

• Management remains attentive to macroeconomic factors such as inflation and interest rate changes, which may impact real estate financing.

• Despite high interest rates, there is confidence in continued growth and resilience in the real estate credit market, with a focus on franchise expansion and digital transformation.

• EBITDA margin guidance remains robust, with ongoing cost discipline and operational efficiency.