Méliuz (CASH3) Q3 2023 earnings summary

Executive summary

• Parent-company EBITDA was R$4.8 million and adjusted EBITDA R$7.0 million; consolidated adjusted EBITDA was R$1.2 million, versus reported consolidated EBITDA of -R$0.9 million.

• Consolidated continuing-operations net income was R$7.611 million; total net profit was R$5.163 million, including a R$2.448 million discontinued-operations loss.

• Priorities included cost discipline, profitable shopping growth, product innovation and scaling financial services sustainably.

Financial highlights

• Continuing net revenue was R$70.420 million, down 8% YoY and 2% QoQ; adjusted consolidated expenses were R$71.9 million, down 29% YoY and 17% QoQ.

• Cash, cash equivalents and securities excluding Bankly reached R$418.9 million, up from R$395.8 million in June.

• Cash and securities increased R$23.1 million QoQ; cited contributors included R$12.7 million of financial result and R$7.1 million of delayed receivables.

• 9M consolidated net loss narrowed to R$22.238 million from R$52.702 million restated in 9M 2022.

Outlook and guidance

• Focus remained on cost discipline and profitable shopping growth, with a target net take rate above 2%; the 2024 e-commerce outlook was conservative, with no numerical guidance.

• Planned 2024 financial-services launches included Cofrinhos/CDBs, boleto, installment Pix and insurance products.

• Méliuz Prime was launched to support engagement and recurring revenue; contribution was expected to ramp gradually, with limited Q4 impact.