Sonda (SONDA) Q1 2025 earnings summary

Executive summary

• Consolidated revenues for 1Q25 were US$376 million, nearly flat year-over-year, with Southern Cone growth offsetting declines in Brazil and North America.

• EBITDA dropped 21.3% year-over-year to US$28 million, and operating income fell 37.5% to US$14.1 million, mainly due to higher provisions and non-recurring items.

• Net profit increased 17.6% year-over-year, reaching US$5.4 million, mainly due to lower income taxes and positive FX effects.

• The company continues to focus on digital transformation, innovation, and sustainability, as recognized in its 2024 Integrated Report.

Financial highlights

• Digital Business revenues were US$130 million (-3.9% YoY), Digital Services US$93 million (-12.4% YoY), and Transactional Business US$154 million (+12.5% YoY).

• Consolidated deal closings totaled US$392 million, down 10.3% from 1Q24.

• Gross profit decreased 7.8% year-over-year to $48,088 million, with gross margin at 13.4%.

• EBITDA margin for the quarter was 8%.

• Net cash from operating activities increased to $54,701 million, up 326.5% year-over-year.

Outlook and guidance

• The pipeline for the last twelve months reached US$6.4 billion, with Brazil and the Southern Cone representing significant opportunities.

• Strengthening of commercial teams and tactical planning is underway to drive execution and capitalize on future growth.

• Strategic plan for 2025-2027 is driving increased commercial efforts and investments.

• Strategic focus remains on growth in Brazil, Mexico, Colombia, and Chile.