Positivo Tecnologia (POS3) Q3 2024 earnings summary

Executive summary

• Services contributed 19% of revenue, with strong growth in Payment Solutions and Consumer segments; diversification and core business expansion continued.

• Integration of Algar Tech MSP advancing well, with low churn, high NPS, and business acceleration in Colombia.

• Operational efficiency initiatives and cost reduction measures implemented, with full impact expected in 2025.

• Consumer and Payment Solutions segments posted strong growth; public tenders underway.

• ESG achievements include EcoVadis Gold and GHG Protocol Gold Seal certifications.

Financial highlights

• 3Q24 gross revenue R$957 million, down 7.4% YoY; 9M24 gross revenue R$3.1 billion, up 10.7% YoY.

• 3Q24 EBITDA R$67 million (margin 8.2%, down 6.1 p.p. YoY); 9M24 EBITDA R$267 million (margin 10.1%).

• 3Q24 net profit R$2 million, down 94% YoY; 9M24 net profit R$71 million, up 20.8% YoY.

• 3Q24 gross margin 24.2% (down 2.8 p.p. YoY); 9M24 gross margin 24.7%.

• Cash generation for 9M24: R$362 million, driven by working capital improvements.

Outlook and guidance

• Acceleration expected across all business lines in 4Q24, with robust public sector and seasonal consumer demand.

• Annual gross revenue guidance reaffirmed at R$4.0–4.5 billion, trending toward the lower end.

• Backlog for public institutions exceeds R$600 million, mostly for 4Q24.

• Margin pressures from higher costs and FX expected to persist in 4Q, but price normalization and cost reductions are underway.