Semantix Announces First Half 2022 Financial Results
Semantix added 42 net new customers in the twelve-month period endedJune 30, 2022 .Semantix has 11 customers contributing more thanUS$1 million in revenue in the trailing 12 months as ofJune 30, 2022 .- Proprietary SaaS revenue grew 25% year-over-year, with Proprietary SaaS ARR increasing 62% year-over-year in
June 2022 . - Net revenue for the first half of 2022 was
R$86 million , down 10% year-over-year, reflecting the Company’s strategy to adjust product mix, favoring a shift towards proprietary SaaS products, which, in general, generates higher margins than third-party products. - Adjusted EBITDA loss in the first half of 2022 increased to
R$36 million , due primarily to ramping investments in headcount and sales/marketing efforts.
SÃO PAULO--(BUSINESS WIRE)--Aug. 31, 2022--
“We are excited to announce our first set of results as a public company following our business combination with
First Half 2022 and Recent Key Business Highlights
- Capitalization: On
August 3, 2022 , the business combination withAlpha Capital was completed, raisingUS$127 million , before transaction-related expenses, to fund future organic and inorganic growth initiatives. - Growth strategy execution update:
- Acquisition: On
August 31, 2022 ,Semantix announced the acquisition of Zetta Health Analytics (“Zetta”), a leading Brazilian health care tech and analytics provider, according to Ranking 100 Open Startups 2021. Zetta adds a new vertical to the Semantix Data Platform (“SDP”), expanding its total addressable market. According to market research produced byGrand View Research , the healthcare data analytics segment’s total addressable market globally is estimated at approximatelyUS$35 billion in 2022. - Product development: (i) Released Semantix Data &
AI Marketplace with a new array of features that significantly streamline the analytical journey for users of SDP, providing an app store-like experience that puts frequently used data sets and pre-packaged, vertical specific algorithms at the fingertips of data scientists and business analysts; (ii) launched Analytics Chat, a new feature that enables users of SDP to gain analytical insights into their business’s performance via an easy-to-use chat interface; (iii) introduced a new data catalog governance feature, which allows centralized management and lineage of data through SDP, adding a new layer of security, data governance and privacy; and (iv) added real time and streaming capabilities to SDP, that can potentially cater to aUS$50 billion total addressable market, according to calculations performed by Confluent inDecember 2020 . - Innovation: In
May 2022 ,Semantix partnered with MIT’s Industrial Liaison Program (ILP) whereSemantix will help monitor emerging technology trends and work directly with faculty on forthcoming research and recruitment efforts. - Team: In order to expand its product development and sales effort,
Semantix added more than 100 new team members sinceDecember 31, 2021 , with total company headcount exceeding 650 employees globally as ofJune 30, 2022 . - Global expansion: In
June 2022 ,Semantix opened a new office inMiami, Florida to accelerate its expansion plans in the US.
- Acquisition: On
First Half of 2022 Financial Results Highlights |
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(In BRL million, except for percentages) |
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|
As of and for the six months ended |
|
|
|
2022 |
2021 |
Y/Y Change |
Net Revenue |
|
|
(10%) |
Gross Profit |
|
|
(28%) |
Gross Margin |
32% |
41% |
-8 p.p. |
Adjusted EBITDA1 |
( |
( |
- |
Adjusted EBITDA Margin2 |
(42%) |
(5%) |
- |
Cash and Cash Equivalents |
|
|
(6%) |
____________________________ |
1 Reconciliation of Adjusted EBITDA can be found in tables below. |
2 Reconciliation of Adjusted EBITDA margin can be found in tables below. |
3 As of |
Financial Outlook
Based on current market conditions and management expectations, and subject to a variety of factors described below,
Historically,
First Half of 2022 Results Conference Call
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 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 (including on a forward-looking basis) and industry metrics such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, and annual recurring revenue. 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
Proprietary SaaS ARR: This metric is intended to measure the value of the contracted recurring revenue components of our proprietary SaaS term subscriptions normalized to a one-year period. We measure Proprietary SaaS ARR as the total gross revenue we expect to receive from our proprietary SaaS customers over the following 12 months based on contractual commitments, assuming no increases or reductions in their subscriptions or usage.
About
Semantix Tecnologia em Sistema de Informação S.A. |
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Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income |
|||||
(in BRL thousands) |
|||||
|
|||||
For the Six Months Ended |
|
|
|
||
|
2022 |
2021 |
|
Δ |
% |
Revenues |
85.542 |
95.110 |
|
(9.568) |
-10% |
Cost of sales |
(57.793) |
(56.475) |
|
(1.318) |
2% |
Gross profit |
27.749 |
38.635 |
|
(10.886) |
-28% |
Operating expenses |
|
|
|
|
|
Sales and marketing expenses |
(24.830) |
(15.720) |
|
(9.110) |
58% |
General and administrative expenses |
(58.327) |
(23.217) |
|
(35.110) |
151% |
Research and development |
(20.565) |
(12.639) |
|
(7.926) |
63% |
Other expenses |
(1.171) |
(8.209) |
|
7.038 |
-86% |
Operating loss |
(77.144) |
(21.150) |
|
(55.994) |
265% |
|
|
|
|
|
|
Financial income |
6.630 |
2.441 |
|
4.189 |
172% |
Financial expenses |
(19.208) |
(8.927) |
|
(10.281) |
115% |
Net financial results |
(12.578) |
(6.486) |
|
(6.092) |
94% |
|
|
|
|
|
|
Loss before income tax |
(89.722) |
(27.636) |
|
(62.086) |
225% |
Income tax |
3.572 |
4.562 |
|
(990) |
-22% |
Loss for the period |
(86.150) |
(23.074) |
|
(63.076) |
273% |
|
|
|
|
|
|
Net loss attributed to: |
|
|
|
|
|
Controlling interests |
(86.187) |
(23.217) |
|
(62.970) |
271% |
Non-controlling interests |
37 |
143 |
|
(106) |
-74% |
Semantix Tecnologia em Sistema de Informação S.A. |
||||||
Unaudited Interim Condensed Consolidated Statement of Cash Flows |
||||||
(in BRL thousands) |
||||||
|
|
|
|
Δ |
% |
|
Cash flows from operating activities |
|
|
|
|
|
|
Loss for the period |
(86.150) |
(23.074) |
|
(63.076) |
273% |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
7.471 |
2.925 |
|
4.546 |
155% |
|
Deferred income tax |
(3.683) |
(4.477) |
|
794 |
-18% |
|
Onerous contract provision |
(477) |
7.746 |
|
(8.223) |
-106% |
|
Fair value adjustment of derivatives financial instruments |
1.586 |
2.648 |
|
(1.062) |
-40% |
|
Share based payment |
2.292 |
2.305 |
|
(13) |
-1% |
|
Loss allowance |
484 |
8.630 |
|
(8.146) |
-94% |
|
Provision for contingencies |
774 |
4.428 |
|
(3.654) |
-83% |
|
Interest expense |
14.979 |
2.189 |
|
12.790 |
584% |
|
Write off of creditor invoice |
(4.301) |
- |
|
(4.301) |
|
- |
Adjusted profit (loss) for the period |
(67.025) |
3.320 |
|
(70.345) |
|
- |
Change in operating assets and liabilities |
|
|
|
|
|
|
Trade receivables |
(14.340) |
(37.944) |
|
23.604 |
|
-62% |
Recoverable taxes |
(1.040) |
(1.294) |
|
254 |
|
-20% |
Prepaid expenses and other assets |
(11.913) |
(6.416) |
|
(5.497) |
|
86% |
Account payables and accrued expenses |
19.507 |
12.279 |
|
7.228 |
|
59% |
Taxes payable |
1.083 |
(1.081) |
|
2.164 |
|
- |
Other liabilities |
(2.753) |
377 |
|
(3.130) |
|
- |
Cash used in operations |
(76.481) |
(30.759) |
|
(45.722) |
|
149% |
Interest paid |
(11.815) |
(518) |
|
(11.297) |
|
2181% |
Net cash outflow from operating activities |
(88.296) |
(31.277) |
|
(57.019) |
|
182% |
|
||||||
Cash flows from investment activities |
||||||
Purchase and development of intangible assets |
(14.652) |
(8.867) |
|
(5.785) |
|
65% |
Acquisitions of property and equipment |
(319) |
(281) |
|
(38) |
|
14% |
Net cash outflow from investment activities |
(14.971) |
(9.148) |
|
(5.823) |
|
64% |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Proceeds from exercise of stock options |
276 |
- |
|
276 |
|
- |
Loans obtained |
122.016 |
105.196 |
|
16.820 |
|
16% |
Proceeds from non-controlling interest |
(148) |
5.016 |
|
(5.164) |
|
- |
Payments of acquisition of subsidiaries |
- |
(3.767) |
|
3.767 |
|
- |
Payment of loans and financing |
(21.210) |
(2.069) |
|
(19.141) |
|
925% |
Principal elements of lease payments |
(535) |
(931) |
|
396 |
|
-43% |
Net cash inflow from financing activities |
100.399 |
103.445 |
|
(3.046) |
|
-3% |
|
|
|
|
|
|
|
Increase/(decrease) in cash and cash equivalents |
(2.868) |
63.020 |
|
(65.888) |
|
- |
Cash and cash equivalents at the beginning of the period |
52.149 |
25.936 |
|
26.213 |
|
101% |
Cash and cash equivalents at the end of the period |
48.881 |
90.559 |
|
(41.678) |
|
-46% |
Exchange rate effect |
(400) |
1.603 |
|
(2.003) |
|
-125% |
Increase/(decrease) in cash and cash equivalents |
(2.868) |
63.020 |
|
(9.170) |
|
-146% |
|
|
|
|
|
|
|
Other receivables related to the sale of non-controlling interest |
- |
5.016 |
|
(5.016) |
|
- |
Semantix Tecnologia em Sistema de Informação S.A. |
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Unaudited Interim Condensed Consolidated Statement of Financial Position |
|||||
(in BRL thousands) |
|||||
|
|
|
|
Δ |
% |
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
48.881 |
52.149 |
|
(3.268) |
-6% |
Trade receivables and other, net |
50.381 |
36.525 |
|
13.856 |
38% |
Tax receivables |
6.033 |
4.993 |
|
1.040 |
21% |
Prepaid expenses and other assets |
29.928 |
18.019 |
|
11.909 |
66% |
Total current assets |
135.223 |
111.686 |
|
23.537 |
21% |
Non-current assets |
|
|
|
|
|
PP&E, Intangible and right of use asset |
88.659 |
81.159 |
|
7.500 |
9% |
Deferred tax asset |
14.790 |
11.698 |
|
3.092 |
26% |
Derivatives financial instruments |
1.603 |
1.308 |
|
295 |
23% |
Prepaid expenses and other assets |
588 |
584 |
|
4 |
1% |
Total non-current assets |
105.640 |
94.749 |
|
10.891 |
11% |
Total assets |
240.863 |
206.435 |
|
34.428 |
17% |
|
|||||
LIABILITIES |
|||||
Current liabilities |
|||||
Loans and borrowings |
115.439 |
44.060 |
|
71.379 |
162% |
Trade and other payables |
93.595 |
78.389 |
|
15.206 |
19% |
Lease liabilities and other liabilities |
12.549 |
15.722 |
|
(3.173) |
-20% |
Taxes payable |
4.942 |
3.859 |
|
1.083 |
28% |
Total current liabilities |
226.525 |
142.030 |
|
84.495 |
59% |
Non-current liabilities |
|
|
|
|
|
Loans and borrowings |
135.125 |
102.534 |
|
32.591 |
32% |
Lease liabilities and other liabilities |
18.919 |
18.737 |
|
182 |
1% |
Derivatives financial instruments |
5.776 |
- |
|
5.776 |
- |
Deferred income tax |
6.438 |
7.029 |
|
(591) |
-8% |
Total non-current liabilities |
166.258 |
128.300 |
|
37.958 |
30% |
Total liabilities |
392.783 |
270.330 |
|
122.453 |
45% |
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
Share capital |
55.818 |
55.818 |
|
- |
0% |
Capital reserves |
18.567 |
15.999 |
|
2.568 |
16% |
Other comprehensive income |
(5.317) |
(1.022) |
|
(4.295) |
420% |
Accumulated loss |
(226.664) |
(140.477) |
|
(86.187) |
61% |
|
(157.596) |
(69.682) |
|
(87.914) |
126% |
Non-controlling interests |
5.676 |
5.787 |
|
(111) |
-2% |
Total equity |
(151.920) |
(63.895) |
|
(88.025) |
138% |
Semantix Tecnologia em Sistema de Informação S.A. |
||
GAAP to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations |
||
(in BRL thousands) |
||
|
For the Six Months Ended |
|
|
2022 |
2021 |
Loss for the period |
(86.150) |
(23.074) |
(+/-) Net interest income (expenses) |
11.737 |
2.306 |
(+/-) Income tax |
(3.572) |
(4.562) |
(+) Depreciation and amortization |
7.471 |
2.925 |
EBITDA |
(70.514) |
(22.405) |
(+) Data platform relaunch research expenses (1) |
- |
1.054 |
(+) Stock option expenses (2) |
2.907 |
6.732 |
(+) Transaction expenses(3) |
31.408 |
- |
(+) Earn-out payment expenses(4) |
- |
2.429 |
(+) Onerous contract provision expenses(5) |
- |
7.745 |
Adjusted EBITDA (A) |
(36.199) |
(4.445) |
Net Revenues (B) |
85.542 |
95.110 |
Adjusted EBITDA Margin (A)/(B) |
-42% |
-5% |
(1) |
Consists of isolated research expenses incurred in connection with the recent redesign and relaunch of Semantix’s proprietary data platform with the purpose of enhancing its functionality arising in relation to a single contract with a single supplier over a three-year period starting in 2019 and, following the relaunch of its data platform, which |
|
(2) |
Consists of expenses related to stock option grants under the 2021 Plan and a stock option plan adopted by |
|
(3) |
Consists of concentrated expenses of an extraordinary nature related to third-party advisory and support services incurred in connection with the Business Combination that are not expected to be ongoing. |
|
(4) |
Consists of expenses related to earn-out payment to the former shareholders of LinkAPI. |
|
(5) |
Consists of non-cash expenses recorded under provisions relating to the early termination by a single client of a three-year contract to purchase third-party software in the early phases of Semantix’s |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220831005835/en/
Investor Contact
Chief Strategy Officer & IRO
ir@semantix.ai
Press Contact
Marketing Director
semantix@rpmacomunicacao.com.br
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