CI&T Inc Reports Strong Sequential Revenue Growth in 2Q24

TL;DR

CINT Q2 revenue up sequentially, filing shows solid growth.

AI Summary

CI&T Inc announced strong sequential revenue growth for the second quarter of 2024, ending June 30, 2024. The company, a global technology transformation specialist, filed its 6-K report on August 16, 2024, detailing its financial performance for the period. The report includes unaudited condensed consolidated interim financial information.

Why It Matters

This filing indicates positive momentum for CI&T Inc, suggesting successful execution of their business strategy and potentially improving financial health.

Risk Assessment

Risk Level: low — The filing is a routine financial report and does not contain any immediately apparent negative news or significant risk factors.

Key Players & Entities

• CI&T Inc (company) — Filer of the report and subject of the announcement
• 2Q24 (date) — Reporting period for the financial results
• June 30, 2024 (date) — End date of the reporting period
• August 16, 2024 (date) — Date of the filing and press release
• NYSE: CINT (company) — Stock ticker symbol for CI&T Inc

FAQ

Key Financial Figures

• $565.7 million — 24 (2Q24) highlights Net Revenue was R$565.7 million compared to R$523.5 million in 1Q24, a
• $523.5 million — evenue was R$565.7 million compared to R$523.5 million in 1Q24, a sequential growth of 8.1% qu
• $48.5 million — er-quarter. Net Profit grew 24.5% to R$48.5 million in 2Q24 from R$39.0 million in 2Q23.
• $39.0 million — w 24.5% to R$48.5 million in 2Q24 from R$39.0 million in 2Q23. Adjusted EBITDA of R$108.7 m
• $108.7 million — million in 2Q23. Adjusted EBITDA of R$108.7 million and Adjusted EBITDA margin of 19.2%.
• $65.4 million — in of 19.2%. Adjusted Net Profit was R$65.4 million compared to R$61.8 million in 2Q23, an
• $61.8 million — Profit was R$65.4 million compared to R$61.8 million in 2Q23, an increase of 5.8%. The Adjus
• $571.8 million — s R$565.7 million in 2Q24, compared to R$571.8 million in 2Q23, a reduction of 1.1%, or a decl
• $369.7 m — cost of services provided in 2Q24 was R$369.7 million, 1.2% lower than in 2Q23, and the
• $196.0 million — than in 2Q23, and the gross profit was R$196.0 million. The adjusted gross profit in 2Q24 was
• $209.2 m — The adjusted gross profit in 2Q24 was R$209.2 million, with an adjusted gross profit ma
• $119.0 m — ) and other operating expenses totaled R$119.0 million, a reduction of 0.9% compared to
• $108.7 m — 2Q24. As a result, Adjusted EBITDA was R$108.7 million, with an adjusted EBITDA margin o
• $11.6 m — . 1 In 2Q24, net finance costs were R$11.6 million, 37.2% lower than in 2Q23, mainly
• $16.9 million — interest rates. Income tax expense was R$16.9 million in 2Q24, 16.3% lower than in 2Q23. The

Filing Documents

• cintfs2q24_6k.htm (6-K) — 1150KB
• image_001.jpg (GRAPHIC) — 52KB
• 0001292814-24-003179.txt ( ) — 1223KB

From the Filing

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDERTHE SECURITIES EXCHANGE ACT OF 1934 For the month of August 2024 Commission File Number: 001-41035 CI&T INC (Translation of registrant's name into English) Estrada Guiseppina Vianelli De Napoli, 1455 – C, Globaltech 13.100-000 - Brazil Campinas-State of So Paulo +55 19 21024500 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F Form 40-F CI&T Inc TABLE OF CONTENTS ITEM 1. 2Q24 Earnings Release 2. Unaudited condensed consolidated interim financial information for the six-month period ended June 30, 2024 CI&T Reports Strong Sequential Revenue Growth in 2Q24 Results New York - August 16 , 2024 /Business Wire/ - CI&T (NYSE: CINT, "Company"), a global technology transformation specialist and fast-growing technology company, today announces its results for the second quarter of 2024 (2Q24) in accordance with International Financial Reporting Standards (IFRS). For comparison purposes, we refer to the results for the second quarter of 2023 (2Q23) and the first quarter of 2024 (1Q24). Second quarter of 2024 (2Q24) highlights Net Revenue was R$565.7 million compared to R$523.5 million in 1Q24, a sequential growth of 8.1% quarter-over-quarter. Net Profit grew 24.5% to R$48.5 million in 2Q24 from R$39.0 million in 2Q23. Adjusted EBITDA of R$108.7 million and Adjusted EBITDA margin of 19.2%. Adjusted Net Profit was R$65.4 million compared to R$61.8 million in 2Q23, an increase of 5.8%. The Adjusted Net Profit margin was 11.6%. CI&T ended 2Q24 with 6,235 employees, 2.4% higher than 1Q24. Cesar Gon, founder and CEO of CI&T, commented, "In 2Q24, we achieved an impressive net revenue growth of 8.1% quarter-over-quarter, accompanied by an adjusted EBITDA margin of 19.2%. These results reflect our ability to drive growth while maintaining solid profitability metrics. Looking ahead, our guidance indicates continued growth, bolstered by enduring relationships with our blue-chip clients, highlighting our commitment to delivering consistent value. A year ago, we proudly launched CI&T Flow, our end-to-end AI-powered platform, initiating a transformative journey for CI&T. With over 100 clients onboarded, we are effectively navigating the hyper-productivity disruption. As we resume our growth trajectory, we are expanding our team to accelerate AI initiatives across the globe." Comments on the 2Q24 financial performance Net revenue was R$565.7 million in 2Q24, compared to R$571.8 million in 2Q23, a reduction of 1.1%, or a decline of 4.1% at constant currency. Compared to 1Q24, net revenue grew 8.1%, boosted by the performance of the top 10 clients, which grew 10.2% in the same period. The geographic distribution of net revenue in 2Q24 was 44.4% from North America, 40.0% from Latam, 11.0% from Europe, and 4.6% from Asia Pacific. The cost of services provided in 2Q24 was R$369.7 million, 1.2% lower than in 2Q23, and the gross profit was R$196.0 million. The adjusted gross profit in 2Q24 was R$209.2 million, with an adjusted gross profit margin of 37.0%, stable year-over-year. In 2Q24, selling, general and administrative (SG&A) and other operating expenses totaled R$119.0 million, a reduction of 0.9% compared to 2Q23, as a result of lower personnel expenses, partially offset by CI&T's continued investments in sales and AI initiatives in 2Q24. As a result, Adjusted EBITDA was R$108.7 million, with an adjusted EBITDA margin of 19.2% in 2Q24. 1 In 2Q24, net finance costs were R$11.6 million, 37.2% lower than in 2Q23, mainly driven by lower net debt position and interest rates. Income tax expense was R$16.9 million in 2Q24, 16.3% lower than in 2Q23. The income tax paid (cash effect) was R$3.8 million, equivalent to a cash tax rate of 5.8%. The net profit was R$48.5 million in 2Q24, 24.5% higher than in 2Q23. Adjusted net profit was R$65.4 million, an increase of 5.8% compared to 2Q23. The adjusted net profit margin increased from 10.8% in 2Q23 to 11.6% in 2Q24, mainly due to lower net finance costs and income tax expenses, as explained above. In 6M24, cash generated from operating activities was R$131.3 million, 11.6% higher than in 6M23, mainly due to an improvement in working capital. Business Outlook We expect our net revenue in the third quarter of 2024 to be at least R$591 million on a reported basis, equivalent to a 11.7% growth year-over-year or a 4.5% increase quarter-over-quarter. This assumes an average FX rate of BRL/USD 5.40 in 3Q24. For the full year of 2024, we are increasing our guidance. We expect our net revenue growth at constant currency to be in the range of -0.5% to +2.5% year-over-year. In addition, we estimate our Adjusted EBITDA margin to be in the range of 17% to 19%. These exp

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