CI&T Inc

Welcome to CINT earnings call for the third quarter of 2024. I am Eduardo Galvão, investor relations director at CINT. Joining me on today's call are Cesar Ghosn, founder and CEO, Bruno Guisardi, founder and president for North America in Europe, and Stanley Rodrigues, our CFO. This event is being recorded and all participants will be in a listen-only mode during the company's presentations. After that, there will be a Q&A session. If you'd like to submit a question, please send it via email to investors at cint.com. The presentation is available on the company's investor relations website, and the replay will be available shortly after the event is concluded. Some of the matters we'll discuss on this call, including our expected business outlook, are forward-looking statements. They are subject to known and unknown risks and uncertainties, which would cause actual results to differ from those expressed on this call. We caution you not to place undue reliance on these forward-looking statements as they are valid only as of the date when made. During this presentation, we'll comment on certain non-IFRS financial measures to evaluate our businesses. Please refer to the reconciliation tables of non-IFRS measures in the earnings release for more details. Our agenda for today includes an overview of our quarterly highlights, followed by some of our business cases. We'll then talk about our people and our financial results. At this time, I'll pass it on to Cesar Ghosn to begin our presentation. Cesar, please. Thanks, Eduardo.

Today I want to take a moment to talk about something that is at the very heart of our success and growth, our company culture. At this time of great change and excitement with the AI disruption, I'm intensifying my travels to connect with our teams around the world. CIT now has people in 25 countries, and in each visit, I feel the key element that unites and sets us apart. Our deeply rooted culture. Corporate culture does not happen by chance. It's the result of years of intentional choices, behaviors, and leadership. Our company culture is built on six tenets that guide everything we do. Let me briefly give you some context on them. It starts with our clients. They are the reason we exist. They face complex challenges and we bring our expertise as tech specialists to solve them with agility and innovation. To achieve this, we foster an environment of trust, built among smart, hard-working and resilient people, which enables deep collaboration and teamwork. This teamwork is driven by an obsession with excellence and continuous improvement, delivering superior results for everyone we serve. To remain relevant to our clients and sustain these results over the long run, in our infinite game, we must continuously learn, adapt and reinvent ourselves. Finally, we live by the belief that the more diverse we are, the stronger we become as a collective and more fulfilled we are as individuals. As we embrace exciting transformations, Including our AI reinvention, our culture remains the bedrock of our strategic vision and operational excellence, and the key element to attracting and empowering top talent. Now moving to our financial highlights. CIT continues to excel in an ever-evolving digital landscape. In the third quarter of 2024, we achieved a record net revenue of R$ 622.2 million, which marking a 17.6% increase compared to the third quarter of 2023, with constant currency net revenue growth of 90% year-over-year. Growth was especially strong among our top 10 clients, with net revenue up 25.3% year-over-year. The tangible productivity gains from the CI&T flow platform resonate well with our clients, giving us the opportunity to continue expanding our share with them. We continue to refine the process and methods of our AI growth machine, our expert sales team, boosting agility and effectiveness in meeting client needs. This enables us to onboard large clients with substantial tech investments, reinforce our long-term land and expand growth strategy. We conclude the quarter with a solid adjusted EBITDA margin of 19.5%. Additionally, our cash generation from operating activities reached 295 million reais in the first nine months of 2024, underscoring our strong financial position. We continue to attract and develop talent in the regions where we operate. This quarter, we onboarded 520 new CIN tiers across the globe. Notably, we have streamlined our talent acquisition process with AI, enhancing our ability to support our high-growth ambitions. In summary, we are excited with the perspectives for 2025, as we embrace AI as a transformative force and optimize our sales machine. Now let's explore some compelling stories of our clients leveraging AI in diverse contexts.

Earlier in 2024, CI&T was re-awarded Aldi of America's Digital Agency of Record, continuing the partnership between the companies for another three years.