Méliuz (CASH3) Q1 2023 earnings summary

Executive summary

• Net revenue rose 10% YoY to R$98.7m, while consolidated net loss widened to R$11.9m from R$6.5m; cost controls and the Banco BV partnership supported a shift toward an asset-light model.

• Management said it was close to operational break-even at the parent level and targeted profitability in 2023.

Financial highlights

• Brazil shopping net revenue declined 11% YoY to R$60.8m; shopping margin rose 33% to R$26.5m as cashback expenses fell 27% and marketing expenses fell 42%.

• Reported operating expenses were R$131.6m versus R$108.9m YoY; excluding Bankly and extraordinary items, adjusted EBITDA was -R$7.0m and net loss was R$4.0m.

• Recurring EBITDA was -R$1.5m and recurring net income R$7.6m after specified exclusions; a separate pro forma calculation reported recurring EBITDA of R$5.5m after costs transferred under the BV agreement.

• Financial result was R$21.6m versus R$9.7m YoY; consolidated net loss was R$11.9m versus R$6.5m.

Outlook and guidance

• Management targeted profitability in 2023 through further cost reductions and operating efficiencies.

• Banco BV rollout was expected to progress gradually, with accounts and cards scaling and partnership-related financial-product revenues developing as activations increased.

• Bankly adjustments were expected to continue in Q2, with results targeted to improve in H2 and break-even prioritized.

• Growth initiatives included Picodi cashback, Méliuz Ads, Méliuz Invoice, BV financial products and subsidiary cash generation; no quantified growth guidance was provided.