Nvni Group (NVNI) Sidoti May Micro-Cap Virtual Conference summary

Company overview and strategy

• Focuses on acquiring profitable, cash-generating, niche-leading SaaS B2B companies in Latin America, primarily Brazil, with a diversified portfolio and segment-agnostic approach.

• Targets companies with predictable, recurring revenue and low customer concentration, maintaining 92% recurring revenue and no client over 0.24% of revenue.

• Emphasizes value creation through margin expansion, founder retention, and disciplined acquisition criteria, aiming for a 31% IRR hurdle rate.

• Maintains a strong pipeline, with 29 qualified targets and three deals in closing, totaling $32M in revenue and $19M in EBITDA.

• Acquisitions are exclusive, typically priced at 4x-6x EBITDA, funded by cash or seller notes, avoiding stock to prevent dilution.

Market and financial performance

• Operates in a $9.2B Latin American SaaS market expected to double by 2030, with Brazil as the largest segment.

• Achieved 14% organic growth and 26% EBITDA margin, with EBITDA up 30% and first operating profit recently reported.

• Net cash position has improved, supporting further acquisitions and margin expansion.

• Current debt carries a 14.5% interest rate, reflecting high local rates and limited IPO activity in Brazil.

• Company trades at a discount to global peers due to local market conditions and aims to arbitrage this by listing in the U.S.

Growth initiatives and operational approach

• Plans to acquire four to six companies annually, with both direct and subsidiary-led acquisitions to diversify risk.

• Focuses on smaller targets ($2M-$7M revenue) to avoid risk concentration, with potential to pursue larger deals as scale increases.

• Post-acquisition, founders and teams are retained, with autonomy supported by governance, reporting, and talent management best practices.

• Sees further EBITDA margin upside from AI-driven efficiencies and cross-selling opportunities.

• Reports annually but plans to move to semi-annual and then quarterly reporting as operations mature.