11/13/2019
We nnounce today its consolidated results for the third quarter of 2019 (“3Q19”) and for the 12-month period ended 30 September 2019 (“LTM-3Q19”).
Financial highlights:
Net revenues. Record of R$ 46.4 million (+30.0% vs. 3Q18), a significant increase mainly due to the inorganic growth of R$ 9.9 million;
Portfolio of recurring contracts. Record of R$ 140.3 million (+65.1% vs. 3Q18), highlighting the 16.1% increase in the organic portfolio, a proxy for future growth in Software revenues;
Recurring revenues. Record of R$ 38.1 million (+34.0% vs. 3Q18), a significant increase mainly due to the growth of 60.6% in Software Subscription;
Subscription net revenues. Record of R$ 27.4 million (+60.6% vs. 3Q18), with organic growth of 9.6%, showing that the change in the business model has been reaching its goal;
Adjusted EBITDA. Record of R$ 6.0 million (+24.3% vs. 3Q18), a strong performance mainly due to the consolidation of the results of the recently acquired companies;
Net cash. The highest balance of the Company’s history, in the amount of R$ 268.4 million (+R$ 347.1 million vs. 2Q19), compared to a net debt of R$ 78.6 million in previous quarter.
MESSAGE FROM MANAGEMENT
In this third quarter, we reached several records, being the first period with the full results of the last 4 acquisitions (ConsultBrasil, Atena, ADSPrev and Softpar). The main indicators – contracts portfolio, net revenues, recurring revenues, gross profit and adjusted EBITDA – showed substantial growth of 65.1%, 30.0%, 34.0%, 18.5% and 24.3%, respectively, compared to the third quarter of the previous year.
The portfolio of recurring contracts of Software reached a record gross value of R$ 140.3 million, up 65.1% over 3Q18. We highlight the addition of R $ 13.7 million in the organic portfolio, an increase of 16.1%, a proxy for future software revenue growth, proving the favorable outlook for the coming quarters.
Net revenues was record R$ 46.4 million, up 30.0% over 3Q18. As for organic growth, it is worth mentioning that in this quarter there was a 9.6% increase in Software Subscription revenues, a first sign of acceleration, showing that the change in the business model has been reaching its objective.
We also emphasize that due to the successful integration of the last 4 acquisitions, most of the synergies have already been captured and the expected results exceeded. As a result, general and administrative expenses represented 21.3% of net revenues (vs. 23.6% in 3Q18), contributing to a record adjusted EBITDA of R$ 6.0 million.
Finally, we recently made our second share offering of R$ 362.7 million, bringing gross cash to R$ 368.3 million, the highest balance ever recorded by Sinqia. We are ready to open a new consolidation cycle, very confident that with discipline and agility we will multiply all the numbers one more time!
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