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CI&T Inc (CINT) Q4 2024 Earnings Call Highlights: Record Revenue Growth and Strategic AI ...

In This Article:

  • Net Revenue (Q4 2024): BRL656.5 million, a 25.6% increase year-over-year.

  • Net Revenue (Full Year 2024): BRL2,368 million, a 6.0% increase year-over-year.

  • Adjusted EBITDA (Q4 2024): BRL128 million, a 23.7% increase year-over-year, with a margin of 19.5%.

  • Adjusted EBITDA (Full Year 2024): BRL442 million, a 2.4% increase year-over-year, with a margin of 18.7%.

  • Adjusted Net Profit (Q4 2024): BRL78 million, a 41.3% increase year-over-year.

  • Adjusted Net Profit (Full Year 2024): BRL241.8 million, an 8.9% increase year-over-year.

  • Cash Generation from Operating Activities (2024): BRL467 million, a 12.7% increase year-over-year.

  • Free Cash Flow (2024): BRL317 million, a 16.9% increase year-over-year.

  • Revenue Growth by Industry (2024): Retail and Industrial Goods up 70%, Consumer Goods up 14.9%, Financial Services up 5.7%.

  • Top 10 Clients Revenue Growth (2024): 9.7% year-over-year.

  • Employee Growth (2024): Over 6,900 employees, a 13% increase year-over-year.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • CI&T Inc (NYSE:CINT) reported a record net revenue of BRL656.5 million for Q4 2024, marking a 25.6% increase compared to Q4 2023.

  • The company's adjusted EBITDA margin reached 19.5%, surpassing the industry average.

  • CI&T Inc (NYSE:CINT) achieved a 41.3% year-over-year increase in adjusted net profit, totaling BRL78 million.

  • The company has been recognized by Forrester Research as a leader in modern application development services.

  • CI&T Inc (NYSE:CINT) is leveraging AI through its CI&T FLOW platform, which has been a key driver of revenue growth and client digital transformation.

Negative Points

  • Despite strong growth, the full-year net revenue increase was only 6.0% compared to 2023, with a constant currency growth of just 1.3%.

  • The company faces challenges from geopolitical and macroeconomic uncertainties, particularly in Europe.

  • There is a gradual increase in payroll taxes in Brazil, which could impact future profitability.

  • CI&T Inc (NYSE:CINT) has not pursued significant M&A activities recently, which could limit rapid expansion opportunities.

  • The company anticipates potential volatility in foreign exchange rates, which could affect financial performance in 2025.

Q & A Highlights

Q: Are you seeing any pause or caution in client spending due to geopolitical and macroeconomic concerns? A: (Cesar Gon, CEO) We continue to see stable demand from large organizations despite macro uncertainties. Stability is favorable for our strategy, and we have a stronger pipeline compared to last year, indicating promising prospects for 2025.