Méliuz (CASH3) Q1 2024 earnings summary

Executive summary

• Q1 2024 consolidated revenue was R$82.412 million; consolidated EBITDA was R$5.8 million and net income was R$19.080 million, versus a restated net loss of R$11.869 million in Q1 2023.

• Results came in a seasonally weaker e-commerce quarter; management cited the quarter as an early indication of more robust, consistent results ahead.

• Priorities centered on profitability and margin improvement rather than maximizing GMV, supported by core shopping, new products and financial services.

Financial highlights

• Consolidated net operating revenue was R$82.412 million, versus R$83.648 million restated in Q1 2023; consolidated net margin was 23.2%.

• Consolidated EBITDA was R$5.8 million, versus losses of R$13.1 million in Q1 2023 and R$33.7 million in Q4 2023; no extraordinary items were recorded in Q1 2024.

• Parent Company adjusted EBITDA was R$12.8 million, with a 19.6% margin; LTM adjusted EBITDA was R$36.0 million versus negative R$82.8 million a year earlier.

• Adjusted operating expenses were R$79.5 million, down 14% YoY; LTM expenses fell 20% to R$324.2 million.

• Financial results were R$17.020 million; gross profit was R$2.932 million versus a R$14.728 million loss in Q1 2023.

Outlook and guidance

• 2024 priorities included growing Brazil Shopping revenue while sustaining net take rate, launching recurring-revenue products, expanding financial services and maintaining cost discipline.

• BV-linked account and card offerings were expected to accelerate, with additional financial services and new products planned to contribute revenue over time.

• International Shopping aimed to recover Picodi organic traffic, increase cashback's share and bring cash burn to zero.