Semantix Announces 1Q 2023 Financial Results
SÃO PAULO,
“Since increasing focus on our core proprietary SaaS only one quarter ago, we are pleased with the vigor and traction we are seeing in prioritizing higher-quality proprietary SaaS revenue, with accompanying relevant improvements in our gross margin profile, reflecting our culture of always seeking efficiency in our business,” said
First Quarter 2023 Financial Highlights
- Net revenue for the first quarter of 2023 of
R$40 million , reflecting an increase of 1% year-over-year as compared to the first quarter of 2022, with proprietary SaaS revenue growth partially offset by slight decreases in revenue from our third-party SaaS and AI & data and analytics services business lines. - Proprietary SaaS revenue for the first quarter of 2023 grew 4% year-over-year.
- Gross profit increased 33% in the first quarter of 2023 year-over-year as compared to the first quarter of 2022, with gross margin improving 10 percentage points year-over-year to 43% in the first quarter of 2023, primarily due to the improved performance of third-party SaaS products gross margin reflecting the prioritization of higher margin contracts during the period.
Semantix had 17 customers in 1Q23 each contributing more thanUS$1 million in revenue in the last twelve months.- Adjusted EBITDA loss in the first quarter of 2023 was
R$34 million , due primarily to ramping-up investments in talent as well as sales and marketing efforts. - Cash and cash equivalents of
R$232 million as ofMarch 31, 2023 . Net cash (net of the loans and borrowings) wasR$161 million as ofMarch 31, 2023 .
Key Business Highlights
- Control and Efficiency: successfully implemented an ERP system to streamline Semantix’s operations and to improve its internal controls.
- People and leadership:
Semantix hiredBruno Bonfanti , a former executive atGoogle , in the newly created role of Channel and Ecosystem Director. - Partnership program:
Semantix relaunched its global partnership program, already consisting of 70 partners. Semantix’s partners will now be categorized into four groups based, each with different approaches and benefits: Semantix Partner, Sales Partner, Implementation Partner and Independent Software Vendor. - Product Development:
- Recently launched GenAI, Semantix’s Generative AI product, which captured approximately 1,300 sign-ups already in this first month.
- Quantum computing: launched a sandbox to pull and use data in simulations.
- SDP Genius: introduced a large language model framework within the SDP platform to improve usability, learn from customers and incorporate feedback, query response times and automate communications between teams.
- Implemented a new feature within our integration module that enables obfuscation of personal and sensitive data in transition, increasing data security and user experience.
- Implemented a module for financial institutions, SDP Financial, a purpose-built tool for complex analysis of financial product design, aiming to resolve business challenges through leveraging public data sets from the financial community.
- Customer advisory board:
Semantix is implementing aCustomer Advisory Board , inviting key customers from our different industry verticals to design and test new features, which provides valuable input for Semantix’s product roadmap.
1Q23 Financial Metrics
(In BRL million, except for percentages)
1Q 2023 | 1Q 2022 | Y/Y Change |
|
Net Revenue | 1% | ||
Gross Profit | 33% | ||
Gross Margin | 43% | 32% | 10 pp |
Adjusted EBITDA | ( |
( |
130% |
Adjusted EBITDA Margin | (85%) | (37%) | (48 pp) |
Change | |||
Cash and Cash Equivalents | (31%) | ||
(38%) | |||
Financial Outlook
Based on current market conditions and management expectations, and subject to a variety of factors described below,
- Proprietary SaaS revenue for 2023 will be between
R$ 75 million andR$ 80 million , implying growth in the range of 40% and 50% in 2023 compared with 2022. - Total revenue for 2023 will increase above 10% compared to the previous year.
Historically,
Conference Call and Webcast Information
Forward-Looking Statements
This press release and the earnings call referencing this press release contain forward-looking statements and forward-looking information within the meaning of applicable
Such forward-looking statements are based on the current expectations of our management and are inherently subject to uncertainties and changes in circumstance and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements and could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking statements contained in this press release and the earnings call referencing this press release, those results or developments may not be indicative of results or developments in subsequent periods. Although
Nothing in this press release and the earnings call referencing this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this press release and the earnings call referencing this press release, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. This press release also contains certain financial forecast information of
WE DO NOT UNDERTAKE ANY OBLIGATION AND EXPRESSLY DISCLAIM ANY RESPONSIBILITY TO UPDATE OR REVISE, OR PUBLICLY DISCLOSE ANY UPDATE OR REVISION TO, ANY FINANCIAL FORECASTS CONTAINED HEREIN TO REFLECT CIRCUMSTANCES OR EVENTS, INCLUDING UNANTICIPATED EVENTS, THAT MAY HAVE OCCURRED OR THAT MAY OCCUR AFTER THE PREPARATION OF THESE FORECASTS. HOWEVER, WE MAY ELECT TO UPDATE OUR BUSINESS OUTLOOK AT ANY TIME FOR ANY REASON.
Non-GAAP Financial Measures
This press release includes certain non-IFRS financial measures and industry metrics such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin and net cash (debt). These measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS.
Other Business Metrics
Proprietary SaaS and Resale of
Customers with Trailing 12-Month Revenue Greater than
About
Consolidated Statement of Profit or Loss (in BRL thousands) |
||
Three Months Ended, | ||
2023 | 2022 | |
Revenues | 39,679 | 39,434 |
Cost of sales | (22,805) | (26,726) |
Gross profit | 16,874 | 12,708 |
Operating expenses | ||
Sales and marketing expenses | (14,252) | (9,252) |
General and administrative expenses | (36,192) | (22,305) |
Research and development | (12,696) | (7,278) |
Other expenses | — | (17,463) |
Operating loss | (46,266) | (43,590) |
Financial income | 10,363 | 4,295 |
Financial expenses | (14,461) | (6,493) |
Net financial results | (4,098) | (2,198) |
Loss before income tax | (50,364) | (45,788) |
Income tax | 2,549 | 1,902 |
Loss for the period | (47,815) | (43,886) |
Consolidated Statement of Cash Flows (in BRL thousands) |
||
Three months ended | ||
2023 | 2022 | |
Loss for the period | (47,815) | (43,886) |
Adjustments to reconcile loss for the period | ||
Depreciation and amortization | 7,970 | 3,711 |
Deferred income tax | (2,549) | (2,062) |
Onerous contract | - | (1,174) |
Fair value adjustment of derivatives financial instruments | 8,738 | - |
Stock option plan | 857 | 1,235 |
Trade and other receivables expected loss | 1,294 | 685 |
Accounts receivable write-off and Write-off of creditor invoice | (238) | (355) |
Provision for contingencies | 1,517 | (3,856) |
Interest accrued | 2,761 | 5,257 |
Interest paid | (976) | (2,341) |
Change in operating assets and liabilities | (38,859) | (8,489) |
Net cash outflow from operating activities | (67,300) | (51,275) |
Purchase and development of intangible assets | (9,976) | (7,351) |
Acquisition of subsidiaries net of cash acquired | (1,988) | - |
Acquisitions of property and equipment | (55) | (164) |
Net cash outflow from investment activities | (12,019) | (7,515) |
Loans obtained | - | 82,015 |
Acquisition of non-controlling interest | 5,018 | - |
Payment of loans | (10,109) | (10,800) |
Purchase of treasury shares | (22,144) | - |
Lease payments | (393) | (341) |
Net cash inflow (outflow) from financing activities | (27,655) | 70,874 |
Increase (decrease) in cash and cash equivalents | (106,974) | 12,084 |
Cash and cash equivalents at the beginning of the year | 338,020 | 52,149 |
Cash and cash equivalents at the end of the year | 231,765 | 66,168 |
Effect of exchange rate changes | 719 | 1,935 |
Increase (decrease) in cash and cash equivalents | (106,974) | 12,084 |
Supplemental non-cash flow information | ||
Remeasurement of lease agreement | 211 | - |
Unpaid amount related to business combination | 33,062 | - |
Other receivables related to the sale of non-controlling interest | 5,018 | - |
Consolidated Statement of Financial Position (in BRL thousands) |
||
ASSETS | ||
Cash and cash equivalents | 231,765 | 338,020 |
Trade receivables and other, net | 135,809 | 139,546 |
Tax receivables | 14,958 | 11,317 |
Prepaid expenses and other assets | 26,371 | 35,060 |
PP&E, Intangible and right of use asset | 163,757 | 156,110 |
Deferred tax asset | 23,756 | 22,488 |
Total current assets | 404,154 | 519,169 |
Total non-current assets | 192,262 | 183,372 |
Total assets | 596,416 | 702,541 |
LIABILITIES | ||
Loans and borrowings | 70,289 | 78,671 |
Trade and other payables | 92,790 | 107,695 |
Lease liabilities and other liabilities | 47,356 | 64,676 |
Taxes payable | 10,464 | 14,733 |
Derivatives financial instruments | 15,737 | 6,412 |
Deferred income tax | 7,648 | 8,929 |
Total current liabilities | 140,089 | 181,390 |
Total non-current liabilities | 104,195 | 99,726 |
Total liabilities | 244,284 | 281,116 |
EQUITY | ||
Share capital | 425 | 425 |
Additional paid-in capital | 872,771 | 872,771 |
Capital reserves | 21,157 | 20,300 |
Other comprehensive income | (7,004) | (6,840) |
(22,651) | (508) | |
Accumulated loss | (516,493) | (468,869) |
Non-controlling interests | 3,927 | 4,146 |
Total equity | 352,132 | 421,425 |
Total equity + liabilities | 596,416 | 702,541 |
GAAP to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (in BRL thousand) |
||
Three Months Ended, | ||
(in R$ thousands) | 2023 | 2022 |
Loss for the period | (47,815) | (43,886) |
(+/-) Net interest income (expenses) | (5,829) | 4,002 |
(+/-) Income tax | (2,549) | (1,902) |
(+) Depreciation and amortization | 7,959 | 3,718 |
EBITDA | (48,234) | (38,069) |
(+) Stock option expenses (1) | 1,087 | 1,565 |
(+) Transaction expenses (2) | - | 21,763 |
(+) D&O Expenses (3) | 4,611 | - |
(+/-) Fair Value of Derivative Financial Instruments (4) | 8,696 | - |
Adjusted EBITDA | (33,839) | (14,740) |
Net Revenue | 39,679 | 39,434 |
Adjusted EBITDA Margin | -85% | -37% |
(1) Consists of expenses related to stock option grants under our 2021 stock option plan and a stock option plan adopted by us in 2020, including payroll expenses in the amounts of
(2) Consists of concentrated expenses of an extraordinary nature related to third-party advisory, support services, travelling and events incurred in connection with our business combination with a SPAC that are not expected to be ongoing.
(3) Consists of expenses related to
(4) Consists of gains from fair value of Semantix Warrants.
Investor Contact
Chief Financial Officer & IR
ir@semantix.ai
Press Contact
semantix@rpmacomunicacao.com.br
Source:

Source: Semantix, Inc.