Sonda (SONDA) Q2 2024 earnings summary

Executive summary

• Revenues for 1H24 reached $770 million, up 28.6% year-over-year, driven by strong growth in Brazil and the Southern Cone Region.

• EBITDA increased 22.5% to $65 million, with robust commercial activity and expanding business opportunities, especially in Brazil.

• Net income attributable to owners was $7.3 million, down $10.1 million year-over-year, mainly due to a non-recurring gain in 1H23 and higher tax and financial expenses.

• Opened new offices in Brazil, Argentina, and Mexico to enhance client proximity and service.

• Klap's operations showed improved financial performance, and AI implementation in client processes is creating new opportunities.

Financial highlights

• Consolidated revenues reached $770 million, up 28.6% year-over-year for 6M24.

• Digital Business revenue was $252 million (+34.7%), Digital Services $246 million (+37.5%), Transactional Business $271 million (+16.9%).

• Gross profit totaled $106 million (+10.5%), operating income $37 million (+21.2%), EBITDA $65 million (+22.5%).

• Net income was $7.3 million, $10.1 million below 6M23, mainly due to the absence of a non-recurring gain and higher taxes.

• Cash and cash equivalents at June 2024 were $114,758 million, down 14.4% from December 2023.

Outlook and guidance

• Strong commercial pipeline of $5,941 million, with Brazil representing 45% of opportunities.

• Fitch Ratings affirmed an AA- rating with a Stable outlook in April 2024; ICR’s risk rating also remains AA- Stable.

• Continued focus on commercial excellence and proximity to clients expected to drive medium-term results.