CI&T Inc

Welcome to CINT Earnings Call for the fourth quarter and full year of 2024. I am Eduardo Galvão, Director of Investor Relations at CINT. Joining me today are Cesar Ghosn, our Founder and CEO, Bruno Guicardi, Founder and President for North America and 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 presentation. 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 could 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're valid only as of the date when made. During this presentation, we'll comment on certain non-IFRS financial measures to evaluate our business. 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 2024 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 César Ghosn to begin our presentation. César.

Thank you, Galvão, and good day, everyone. Before discussing our quarterly results, I would like to acknowledge a significant milestone in our journey, CINT's 30th anniversary. Founded in 1995, CINT began with a bold vision. become a globally recognized leader in tech services. Over the past three decades, we have successfully navigated various market conditions and economic shifts, proudly achieving 30 consecutive years of growth. Today, we are a global force of 7,000 passionate CITers across 25 countries, collaborating with some of the world's most admired brands. That's why I'm so thrilled to share that Forrester Research has recently recognized CI&T as a leader in modern application development services. A right on time honor, as we mark 30 years of innovation and growth. Looking ahead, our continued success rests on three strategic pillars. First, artificial intelligence. Reshape industries, with CIT as a protagonist through CIT flow. Second, our culture of excellence, driven by top-tier talent, our key advantage. And finally, our client-centric approach, blending expertise and innovation to create lasting value and long-term relationships with our clients. Now moving on to our financial highlights for the fourth quarter of 2024. We are proud to report a record net revenue of R$ 656.5 million, representing a 25.6% increase compared to Q4 2023. At constant currency, net revenue grew 14.7% year-over-year. This remarkable growth was driven by the outstanding performance of our top 10 clients, whose revenue increased 40% in Q4 2024 versus the same period in the previous year. These clients have been leveraging CI&T Flow, our AI-powered platform, to accelerate their digital transformation journeys. On the profitability side, our adjusted EBITDA margin reached 19.5%, surpassing the industry average. In addition, adjusted net profit totaled R$ 78 million, reflecting a 41.3% year-over-year increase. For the full year of 2024, we reached a net revenue of R$ 2,368,000,000, representing a 6.0% increase compared to 2023. At the constant currents, net revenue grew by 1.3% year-over-year. We concluded the year with a robust adjusted EBITDA margin of 18.7%. demonstrating consistent operational efficiency over the years. Our cash generation from operating activities totaled R$ 467 million in 2024, a strong indicator of the strength and resilience of our organic operations. We are excited about the momentum we have built and remain focused on driving sustainable growth as we continue to deliver solid results for our clients and stakeholders. Now let's explore some inspiring client success stories that highlight the diverse applications of AI.

As Mundelez keeps empowering people to snack right, our partnership has been helping them to make the best with the best data. By integrating data across multiple lines into a single platform, we've enabled real-time visibility and increased manufacturing line efficiency, allowing even more time for strategic actions. We're excited to continue our journey helping Mondelez to drive growth and lead the future of snacking. 85% increase in product additions. This is the impact of Project V-Tree. Natura, one of the leaders in Latin America's beauty and cosmetics sector, is transforming the order capture experience for over 1 million sales consultants from Natura and Avon. Project Vitrine is a personalized platform powered by AWS's robust infrastructure and CINT's digital expertise, resulting in an increase in cart additions and over 13 million monthly searches with its Smart Search feature. As we expand globally, Vitrine is set to enhance consultants' experiences worldwide. CINT, AWS, and natura together in the journey of shaping the future of beauty through technology the company mitsui sumitomo part of the largest insurance group in asia faced a crucial challenge high licensing costs for an essential tool in orchestrating mass insurance quotations The need to remain competitive and update its calculation rules required an efficient and cost-effective solution. We were called upon to address this scenario and develop a solution that reduced costs, optimized performance, and simplified maintenance for this vital operation. The benefits of the new solution were remarkable. the company saw a drastic reduction in annual licensing costs, which decreased from approximately $1 million per year to a one-time investment of about $500,000 for the project with CINT. In addition to a meager monthly cloud cost, the modernization envisioned by Mitsui Sumitomo and executed in partnership with CINT resulted in significant annual savings and improved efficiency in the quotation process. reducing calculation time by 54%, by eliminating high costs and technological modernization,