Semantix, Inc.

Good morning, everyone, and welcome to the Semantics fourth quarter and full year 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, we will conduct a question and answer session. As a reminder, this call may be recorded. I would now like to hand the call over to Augusto Vilela, Semantics Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining our fourth quarter 2022 earnings conference call. Joining me on the call today is Leonardo Santos, our CEO, founder and chairman, and Adriano Caldi, our CFO. By now, everyone should have access to our earnings announcement. This announcement is also on our investor relations website. During this call, we will make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These comments are based on our plans, predictions, and expectations as of today, which may change over time. Our actual results could differ materially due to the number of risks and uncertainties, including the risk factors outlined in our 20F that will be filed with the SEC. Also during this call, we will discuss certain long-term financial measures. These non-GAAP measures are not intended to be a substitute for our GAAP results. Please refer to our earnings release on our investment relations website for a reconciliation of GAAP to non-GAAP financial measures, as well as additional context on our key operating metrics. And finally, this call in its entirety is being webcast from our investment relations website at ar.thematics.ai. And another replay will be available on the website in a few hours. With that, I'd like to turn the call over to Leo. Leo, good morning.

Thank you, Augusto, and thank you, everyone, for joining us today. We have a lot of exciting developments to go over. On today's call, we will provide details on our fourth quarter and full year 2022 results, as well as offer guidance for fiscal year 2023. I'm happy to report that in the fourth quarter, we delivered record revenue of 96 million reais, an increase of 132% year-over-year. With growing across each of Semantic's revenue lines, despite a more challenging macro environment, Adriano will provide greater details during his remarks. But we again delivered a material increase in our gross margin as we continue to see healthy uptake of proprietary stocks. Forty-quarter growing was again driven by proprietary stocks, which can in the booth consensus expectation and increased 67% year over year. This higher margin revenue stream is the result of our increasing strategy focus on growing our proprietary business and is the key lever of growth and scaling our business. We plan to double down on our go-to marketing forces with this special offering. Each I will discuss in a few moments. In 2022, we invested to scale the business for a long-term success. Each include a restricting in the fourth quarter, a while successfully making our entry into the public market with a lesson on Nasdaq in August. While our focus remains on accelerated top-line growth, we plan to drive leverage through the balance and investment approach. with the goal of achieving operating profitability within fiscal year 2023. I would like to provide an update on the progress we have made across key initiatives that we have identified that are paramount to our success. This includes, one, product development and innovation across our proprietary platform offering. Two, enhancing the capability through the selected two key M&A, and three, improvement in our sales motion and go-to-market strategy. Turning first to the product side, at the core of our offering in the Semantic Data Platform, or SDP, a proprietary, highly scalable end-to-end data enterprise AI platform, which enables organizations to extract value from data in a time-efficient way without the largest-scale deployment of resources that a multi-vendor approach requires. Recent developments on the SDP include today's release of the Semantic Data Marketplace, empowering our customers to analyze a vast array of data and enabling the creation of powerful AI algorithms with increased accuracy. Looking ahead, we expect the data marketplace to increase our overall addressable market and along with the addition of more than 50 new features to our data integration model to directly translate to a growing cross-cell pipeline. Additionally, in the area of generative AI, We have a broad-to-market solution that allows customers to cost-efficiently leverage our infrastructure to fine-tuning and training their models. This is a huge opportunity to scale. This is a pioneer B2B solution in the generative AI field. Second, I would like to discuss target M&A and enforce to expand our footprint. Early this year, we acquired Elemento, US-based, called Management Machine Learning Operations Provider, complementing the SDP. In addition to expanding presence in the US and deepening the engineer bench with a highly technical team, the Generative AI features are a byproduct of the acquisition. I'm also happy to announce we have a fully integrated Zepa. a health tech focus analytics provider, into the DSTP. Healthcare is an underserved vertical in any area of increasing focus for semantics. In this quarter, we have further enhanced our capabilities with the acquisition of ATE Saúde, which provides analytics and insights in an innovative way to the pharma industry. With ATE Saúde, we will be able to increase our offering to this sector, presenting a great opportunity for growth. Third, we are making rapid progress and enhancing our specter of our go-to-market motion. To that end, in January, we announced the hiring of Maurício Melo, Vice President of Sales and Marketing. Maurice has a deep public company experience, having a working in the senior sales leadership role at Avanade, a joint venture between Microsoft and Accenture, as well as holding management position at Google, IBM, and SAP. His driven improvement across the entire range of go-to-market activities include an increased focus on vertical selling, enhanced to our market and lead generation activities, building our indirect sales motion, and importantly, continue to build a strategy relationship with the key partners. Reflecting on the past several quarters, I'm especially pleased with the growth of proprietary staff in our results and the material expansion in our growth margin profile. Proprietary SaaS is the key lever of growth and scaling our business, and we plan to increase and prioritize our go-to-market resource with this differentiated offering. Going forward, we will be guided to this method as the primary measure of the underlying health of our business. As we place greater emphasis on the proprietary SaaS update, we will continue to offer the third-party products, which continue to support our lending and expanding strategy, while focused on improving the margin profiles of this business. In summary, I'm impressed with the progress we made in 2022, leaving us well-positioned at the forefront of emerging data analytics and AI technology. Further, recently M&A, ongoing integration and new product launch align with our goal of supporting our customers throughout their entering the data journey. Looking forward, giving the largest opportunity in the front of us, we plan to keep investing while also placing increased rigor on our expenses. discipline, and are targeting a juice EBITDA profitability in the last quarter of this year. As always, we are focused on what we can control, especially given the understanding macro environment. That said, I remind confidence in our ability to deliver profitable growth this year while meaningfully increasing our proprietary needs of business. Now, I would like to share a couple of the key wins from the quarter that emphasize the unique power of our platform. First, we won a contract to monitor several hundred thousand streetlights in São Paulo. Leveraging our SAP, this customer can monitor their distributed physical infrastructure in real time and organize and maintain it as necessary. Further, members of the public can report issues with their feedback became integrated to analytics' dashboard. This win aligns with our lengthy and extensive sales motion, as we have the opportunity to layer on AI models to increase efficiency. This win also illustrates the broad range of the data-related problems that our AI-rich platform can solve, and a use case that can be easily replicated. Second, we are engaged with the major agribusiness companies that work with the farmers to realize business efficiency in the areas such as risk analysis, personal processes, and financial structuring. This customer is delivering our data AI expertise to build a data lake within SDP, delivering information collected from the farmers to financial institutions and improve farmers' access to the credit. In an open point, as we cited last quarter, we are seeing increased opportunities in agribusiness and under-penetrated vertical with a vested runway for growth that represents over a quarter of the Brazil GDP. Overall, I'm incredibly proud of what the Semantic team has accomplished in such a short time and wish to take this opportunity to thank you all of our employees, partners, clients, and investors for their continued support and commitment. With that, I would like to turn the call over to the Semantic CFO, Adriano Caldi. Thank you.