Méliuz (CASH3) Q4 2023 earnings summary

Executive summary

• 4Q23 revenue rose 23% YoY to R$100.4M; adjusted consolidated EBITDA turned positive at R$16.3M, excluding extraordinary items.

• FY23 adjusted parent EBITDA was R$15.7M versus a R$93.8M loss in FY22; on a basis excluding Bankly and extraordinary items, adjusted parent EBITDA was R$46.9M versus R$31.0M.

• Margin improvement, expense discipline, the Bankly sale and the Banco BV partnership shaped the 2023 operating reset and growth plans.

Financial highlights

• Consolidated continuing revenue was R$326.6M in FY23, up 2% YoY; 4Q23 revenue was R$100.4M, up 23% YoY.

• Adjusted consolidated expenses were R$86.7M in 4Q23, down 21% YoY, and R$337.0M in FY23, down 20%.

• Adjusted consolidated net income was R$29.4M in 4Q23 versus a R$19.2M loss; FY23 adjusted net income was R$39.9M versus a R$37.0M loss.

• Consolidated net loss was R$20.7M in 4Q23; FY23 total net loss was R$25.6M versus R$58.1M in FY22.

• Brazil Shopping margin reached R$35.8M in 4Q23, up 59% YoY, and R$105.3M for FY23, up 42%.

Outlook and guidance

• 2024 priorities include growing Brazil Shopping, expanding profitable verticals, maintaining net take rate above 2%, and aligning costs with growth.

• Plans include recurring-revenue products, scaling financial services through Banco BV, and expanding Méliuz Prime and Méliuz Ads.

• International Shopping priorities include recovering organic traffic and improving user-cohort growth and retention.