Sinqia (SQIA3) releases its 3Q19 results

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.



 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!


Click to see All News



Acquisition of Softpar
Settlement of the Debentures
Dividends payment
Acquisition of ADSPrev
Change of ticker and trading name
Headquarters Change
Closing of the Acquisition of Atena