Demo
CINT NYSE· CI&T Inc
FundamentalsNews digest Peer analysis
Login
CINT NYSE· CI&T Inc
Earnings report Q4 2023

CI&T Reports Decrease in Net Revenue for 3Q23

Segments of revenue

CI&T's net revenue for the third quarter of 2023 (3Q23) was R$529.1 million, compared to R$559.0 million in the same quarter of the previous year (3Q22). The breakdown of net revenue by nature of services includes software development revenue of R$504.6 million, software maintenance revenue of R$14.5 million, consulting revenue of R$9.3 million, revenue from software license agent of R$0.4 million, and other revenue of R$0.3 million.

Strengths

Despite the decrease in net revenue, CI&T demonstrated a sustainable profitability and robust cash generation in 3Q23. The company's founder and CEO, Cesar Gon, highlighted their cautious approach and successful navigation in 2023. CI&T also positioned itself at the forefront of the technological revolution driven by AI, enhancing their AI capabilities and preparing their teams for future growth.

Challenges

The decrease in net revenue for 3Q23 compared to the previous year's quarter (3Q22) indicates a challenge in maintaining consistent revenue growth. The company experienced a decline in adjusted net profit from R$67.4 million in 3Q22 to R$45.5 million in 3Q23. Additionally, the adjusted EBITDA decreased from R$105.2 million in 3Q22 to R$97.7 million in 3Q23.

Noteworthy

CI&T's cash generated from operating activities significantly increased to R$254.5 million in the nine months ended September 30, 2023 (9M23), compared to R$28.6 million in the same period of the previous year (9M22). This substantial improvement in cash generation reflects the company's focus on efficient operations and cost management.

Summary

CI&T faced a decline in net revenue for 3Q23, primarily driven by a decrease in software development revenue. However, the company demonstrated sustainable profitability and robust cash generation. CI&T's focus on AI capabilities and preparation for future growth positions them well for the upcoming technological revolution. The increase in cash generated from operating activities is a notable achievement. Going forward, CI&T aims to resume more aggressive growth in 2024 and beyond.

Source documents

Form 6-K  filed on Nov 17, 2023
23 pages scanned

Reference data

Company financials Q4 revenue 529M
Analyst estimates Q4 EPS beat by 19.41%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.