Wiz Co Participações e Corretagem de Seguros (WIZC3) Q4 2023 earnings summary

Executive summary

• 4Q23 net revenue excluding commissions was BRL 268.8M, up 48.8% YoY; adjusted EBITDA reached BRL 172.6M, up 86.2%, and adjusted net income was BRL 117.5M, up 71.5%.

• FY23 net revenue excluding commissions was BRL 913.6M, up 22.7%; reported EBITDA was BRL 580.1M, up 34.7%, and consolidated net income was BRL 235.9M, up 21.6%.

• Insurance and credit and consortium growth, including Promotiva’s first-year contribution, supported expansion; year-end headcount fell 21.9% YoY following efficiency measures.

Financial highlights

• 4Q23 current net revenue excluding Caixa was BRL 208.1M, up 46.0% YoY; issued premiums were BRL 0.8B, up 30.0%, and credit and consortium sales were BRL 3.0B, up 156.0%.

• FY23 insurance premiums totaled BRL 2.8B, up 26.7%; credit and consortium sales reached BRL 13.2B, up 107.2%.

• FY23 adjusted net income was BRL 368.4M, up 33.0%; parent-company net income was BRL 142M, up 8.4%.

• 4Q23 reported EBITDA was BRL 182.7M, up 126.3%, versus adjusted EBITDA of BRL 172.6M, up 86.2%; reported and adjusted net income were BRL 84.8M and BRL 117.5M, respectively.

• Consolidated FY23 revenue on a gross basis was BRL 1,121.5M, up from BRL 934.3M; gross profit rose to BRL 691.4M from BRL 535.4M.

Outlook and guidance

• 2024 priorities include annualizing cost savings, improving operational profitability, capturing synergies, developing new businesses, and strengthening the capital structure.

• Lower interest rates were identified as a potential driver of increased credit origination; the outlook depends on market conditions and interest-rate assumptions.

• BRB Seguros plans to expand products and physical and digital distribution, while optimizing sales technology; Wiz Corporate plans further technology investment in corporate insurance and distribution channels.

• The proposed 2024 capital budget includes BRL 213.4M for completed-acquisition payments, funded by retained earnings and operating cash of BRL 106.2M and related-party loans of BRL 107.2M.