Bemobi Mobile Tech (BMOB3) Q3 2024 earnings summary

Executive summary

• Achieved four consecutive quarters of accelerating growth in net revenue and adjusted EBITDA, with balanced expansion across all four business lines and geographies, including entry into five new countries and strong results in Brazil and internationally.

• Revenue growth accelerated to 15% YoY, driven by Digital Subscriptions (+26% YoY), SaaS (+19% YoY), and Payment Solutions (+7.5% YoY).

• Operational leverage led to gross profit rising faster than operating expenses (+11% YoY vs. +7% YoY), supporting a 17% YoY increase in adjusted EBITDA and margin improvement.

• Operational cash generation was strong at R$37.1M for the quarter (+10% YoY), with a cash conversion rate of 73% and free cash flow of R$56M.

• Focused on integrating payments and software, with over half of revenue from this combination and continued upselling and cross-selling to SaaS clients.

Financial highlights

• Net revenue grew 15% YoY to R$153.3M in 3Q24; nine-month revenue up 9.6% YoY to R$442.2M.

• Adjusted EBITDA rose 17% YoY to R$57.1M, with margin up ~0.5p.p. to 33.0%.

• Net income increased 52% YoY to R$24.8M; adjusted net income ex-swap was R$26.3M, flat YoY due to lower financial results.

• Operational cash flow increased 10% YoY to R$37.1M; free cash flow was R$56M.

• Cash position at quarter-end was R$570M, up 11% sequentially.

Outlook and guidance

• Management expects continued acceleration in revenue and EBITDA, with new client contracts, international expansion, and utilities digitalization driving results into 2025.

• Payments and software integration anticipated as main growth drivers over the next one to two years.

• Strategic focus on M&A to strengthen Payment and Software verticals and enhance shareholder returns.