Semantix, Inc.

Good morning, everyone, and welcome to Semantics' third quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. To remove yourself from the queue, simply press star 1-1 again. As a reminder, today's call will be recorded. Now I'd like to turn the program over to Augusto Villela, Semantics Head of Investor Relations and Please go ahead, sir.

Thank you. Good morning, everyone, and thanks for joining our third quarter of 2033 earnings conference call. Joining me on the call today is Leonardo Santos, our CEO, founder, 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 of today, which may change over time. Our actual results could differ materially due to a number of risks and uncertainties, including the risk factors outlined in our 20F filed with the SEC. Also during this call, we will discuss certain no-gap financial measures. These non-GAAP measures are not intended to be a substitute of our GAAP results. Please refer to our earned utilities on our investment relations website for reconciliations of GAAP to non-GAAP financial measures, as well as additional context on our operating metrics. And finally, this call is being webcast from our investment relations website at ir.semantics.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 all for joining us today. I'm excited to talk about the progress we made in the third quarter and continued innovation across our platform. In Key3, we observed significant year-over-year growth in revenue from AI, particularly in our priority verticals, such as agro, finance, and health. We remain optimistic about the further growth opportunities. Notably, our proprietary SaaS revenue saw an impressive 41% year-over-year growth, largely driven by the success of our AI application. I'm glad to announce that 53% of our total required revenue comes from Semantic's Intellectual Property. which means proprietary products and consulting AI services, up from 29% in the same period last year. This shift reflects our ability to execute against our strategy, solving client challenges along the way. This improved revenue mixed toward highly quality income, combining with our strategy cost saving initiatives, It's positively impacting our gross margin, driving into our impressive record high of the 60%, reaching a remarked 14% point increase from the same period last year. This is giving us confidence on our strategy of pursuing sustainable growth on proprietary products and accelerating our path to operational cash break-even. In this contest, as Adriano will elaborate on, I am pleased to announce our goal of achieving operation cash generation in the full year of 2024. We are observing a growing attraction and customer demand for AI-based business solutions, and for this reason, we have already identified new opportunities for launch AI applications. In the current quarter, we unveiled an innovative retail application with the user-friendly, no-code, touch-free interface and a seamless integrated, ready-to-use solution. These initiative models are available now. in especially designed to elevate the customer experience through the SAMLAS integration, data collectives, and analyzing across both physical and digital customer touchpoints. This is empower retailers with the invaluable insights delivered from their data, enable real-time decision making, and providing them with the competitive edge in understand customer behavior and stand up to date to involving market trends. In the current quarter, we introduced Chatfarm, a cutting-edge application that serves as a GAI layer with a farm application. This is a revolutionary feature in power for pharmaceutical industry executives to assemble as engaged with the Semantic's unique health data set using generative AI. As a result, it enables them to efficiently access available insights, complete with the dynamical regenerate tables and charts, thanks to our multi-generative AI technology. This is advanced significantly, emphasizes their capacity to expand strategies and design effective to the go-to-market strategies. We have the SAMLabs integrated for powerful AI algorithms into our health application. And they are already making a positive impact within hospital operation, generating substantial value from our customers. I'm especially proud of this because we can go beyond our proposed of impacting lives and actually contribute to the health system on saving people's lives. These algorithms were successfully implemented during the third quarter, resulting in the significant boost to the competitiveness of the Semanticist products, all achievement with the minimal cost implications. Semanticist has expanded its JNAR hub with the addition of several specialized LLMs, reaffirming its position as a truly multi-generative AI platform. These LLM models are tailored for various tasks, ranging from source code generation to the natural language understanding among others. By combining these models, Semantics enables the creation of agents that labor with unique abilities. In addition to the product appeal across all industries, this development not only benefits Semantics customers, but it also accelerates the company's AI application development process. Semantics is actively engaged in a multiple application development and testing projects in collaboration with the valued clients. We then and often identify opportunities to scale sustainable and efficiently while keeping costs under control. Our multi-LLM management layer emphasizes security for business, insurance data privacy and control. Customer don't need to worry about the data leaks. as the concern is integrated within their own infrastructure, providing complete control, auditability, and maximum security. Our technology allows us to extract the best features from each LLM, whether they come from the partners, open sources, or private sources. I would like to highlight a few keys to win from the quarter. We have secured new clients across various industries with a strong presence in the finance, agribusiness, and health sectors. For instance, we have worked in a use case for exporting companies on a comprehensive solution that includes intelligent stock control, asset management, risky calculation modeling, and more. This specific application also simplifies stock exchange operations, enhancing efficiency and cost control. In the financial market, similar to the Quasar model reported on the last quarter, we have created a data architecture for a large Brazilian asset management company, enabling to efficiently improve operations capabilities. eliminating weeks-long delays in some workflows. In the pharmaceutical sector, we have a structured platform support strategy due to market planning and monitoring of the market, demonstrating how Symantec is well positioned in this market. We recently signed a contract with the global laboratory to enhance the management of oncology patients in the Brazil public health system with a focus breast cancer. In summary, our AI-focused strategy is wielding positive results. We have helping our clients extract intelligent through AI, all while maintaining the cost efficiently and accelerating our AI application development process. With that, I will pass the call to the Semantic CFO, Adriano Caldi.