• 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.

• Warning! GuruFocus has detected 5 Warning Signs with FOSL.

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.

Q: What are your plans for cash use in 2025, considering you haven't pursued M&A recently? A: (Cesar Gon, CEO) We focused on transforming CI&T into an AI-first company in 2024, driving organic growth. We may resume M&A to accelerate growth, particularly in the US. (Stanley Rodrigues, CFO) We will continue investing in R&D, particularly our AI platform FLOW, and consider share buybacks and debt reduction.

Q: Should we expect the level of selling expenses and sales investment in Q4 as a guide for 2025? A: (Cesar Gon, CEO) We will continue to enhance our sales structure, which has strengthened our pipeline. Expect increased investment in sales while leveraging AI efficiencies and diluting G&A expenses. (Bruno Guicardi, President) Utilization rates are expected to remain strong, between 85% and 89%.

Q: Can you provide more details on the full-year guidance and the impact of FX volatility? A: (Stanley Rodrigues, CFO) We expect stabilization of FX rates in 2025. Our guidance of 12% constant currency growth is fully organic. (Cesar Gon, CEO) We anticipate strong growth in North America and Latin America, with a more stable outlook for Europe.

Q: How is the use of Gen AI impacting client engagements and contracting terms? A: (Cesar Gon, CEO) AI is becoming integral to digital projects, enhancing efficiency and customer experience. Demand is split between AI for legacy modernization and improving customer journeys. This trend is expected to continue throughout the year.

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