Wiz Co Participações e Corretagem de Seguros (WIZC3) Q1 2024 earnings summary

Executive summary

• Net revenue excluding commissions was R$231.7M, up 8.9% YoY; reported EBITDA reached R$157.8M, up 40.1%, while adjusted EBITDA was R$151.8M, up 29.1%.

• Adjusted net income was R$102.7M, up 44.4% YoY; consolidated net income rose 94.2% to R$67.2M, including R$37.5M attributable to controlling shareholders.

• Insurance and credit/consortium growth and lower costs supported results; strategic priorities included profitable growth, new business, synergies, capital structure and Wiz Pro.

Financial highlights

• Gross revenue was R$457.9M, up 10.1% YoY; net revenue excluding commissions was R$231.7M, up 8.9%, and R$181.0M excluding Caixa runoff revenue, up 13.3%.

• Consolidated costs and expenses declined R$13.9M YoY; general and administrative expenses were R$36.9M, down 23.8%.

• Adjusted net income was R$102.7M, up 44.4% YoY; parent net income was R$37.5M, up 168.6%.

• Insurance premiums issued totaled R$840.1M, up 37.3% YoY; credit and consortium sales totaled R$3.6B, down 3.1%.

• Statutory consolidated revenue was R$291.1M versus R$260.2M; operating income rose to R$128.1M from R$85.9M.

Outlook and guidance

• Strategic priorities include improving profitability, generating business through internal synergies, strengthening the capital structure and advancing Wiz Pro.

• Promotiva expects continued growth through network and commercial expansion, technology investment and potential benefits from lower interest rates and broader loan access.

• Management expects second-half results to generally exceed first-half results, reflecting seasonality in partner consumption and credit-market activity.

• Caixa runoff is expected to decline at a historical pace of ~8% annually; acquisitions remain possible if they fit the core business and capital structure.

• Financial resources, projected cash flows and business plans were cited as supporting continuity; management reported no significant uncertainty about ongoing operations.