CI&T (CINT) Q2 2024 earnings summary

Executive summary

• Net revenue in Q2 2024 reached BRL 565.7 million, up 8.1% sequentially but down 1.1% year-over-year, surpassing guidance and market expectations.

• Growth was driven by expansion with top clients, especially in North America, and strong performance from top 10 clients, which grew 10.2% sequentially.

• Adjusted EBITDA was BRL 108.7 million with a margin of 19.2%, up 29% sequentially.

• Adjusted net profit was BRL 65.4 million, up 5.8% year-over-year and 56.7% sequentially, with a margin of 11.6%.

• Cash generated from operating activities in H1 2024 was BRL 131.3 million, 11.6% higher year-over-year.

Financial highlights

• Net revenue at constant currency for Q2 2024 was BRL 548.5 million, down 4.1% year-over-year.

• Adjusted gross profit margin remained stable at 37.0% in Q2 2024.

• Free cash flow in H1 2024 was BRL 71.9 million, with operating cash flow representing 68% of adjusted EBITDA.

• Net finance costs fell 37.2% year-over-year to BRL 11.6 million.

• Cash and cash equivalents increased to BRL 264.8 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 net revenue expected at least BRL 591 million, up 11.7% year-over-year and 4.5% sequentially.

• Full-year 2024 net revenue growth guidance raised to -0.5% to 2.5% year-over-year at constant currency.

• Adjusted EBITDA margin for 2024 guided at 17%-19%, with double-digit revenue growth expected in H2 2024.

• Guidance implies a V-shaped recovery and sequential growth through 2024.