Wiz Co Participações e Corretagem de Seguros (WIZC3) Q3 2023 earnings summary

Executive summary

• Record adjusted EBITDA reflected stronger commercial performance, operating efficiency and growth across insurance, credit and consortium activities.

• Wiz Pro launched as a unified digital platform, alongside new product launches across business units.

Financial highlights

• Q3 net revenue ex commissions was BRL 229.2M, up 20.1% YoY; adjusted EBITDA reached BRL 159.3M, up 54.4%, and adjusted net income was BRL 107.3M, up 60%.

• Adjusted EBITDA margin was 69.5%, up 15.4 p.p. YoY; adjusted net margin was 46.8%.

• Consolidated net income was BRL 73.3M, up 7.4% YoY; income attributable to controlling shareholders was BRL 44.5M, down 14.8%.

• Q3 2022 G&A included a BRL 42.7M fiscal-contingency provision reversal; Q3 2023 adjusted EBITDA had no adjustments.

Outlook and guidance

• Q4 priorities included consolidating recently acquired businesses, preserving profitability and capturing operating synergies.

• Management expected lower Selic rates to support bank activity, credit transactions and recurring Prestamista sales; H2 seasonality typically favors activity.

• Interest on equity in Q4 was expected to reduce the effective tax rate; most of the tax benefit was expected in Q4.

• Promotiva planned to expand its commercial network and accredited agreements to grow production and reduce reliance on specific agreements.