CI&T Reports Double-Digit Revenue Growth for Third Quarter of 2024
New York - November 14, 2024 - CI&T Inc (NYSE: CINT), a global technology transformation specialist, has reported its financial results for the third quarter of 2024 (3Q24). The company experienced notable growth, demonstrating the strength of its business model and its increasing influence in the technology transformation sector.
Financial Overview
The key financial metrics for 3Q24 are as follows:
| Financial Metric | 3Q24 (R$ million) | 3Q23 (R$ million) | YoY Change |
|---|---|---|---|
| Net Revenue | 622.2 | 529.1 | +17.6% |
| Adjusted Gross Profit | 231.8 | 184.2 | +25.8% |
| Adjusted EBITDA | 121.4 | 97.7 | +24.2% |
| Adjusted Net Profit | 56.5 | 42.5 | +32.9% |
Interpretation: CI&T achieved a robust year-over-year (YoY) revenue growth of 17.6% in 3Q24. The company's profitability also improved significantly, with a notable increase in adjusted gross profit and adjusted EBITDA, indicating enhanced operational efficiency and effective management of costs despite rising expenses.
Revenue Performance by Segment
The revenue distribution across regions in 3Q24 is detailed below:
| Region | Revenue Contribution (%) |
|---|---|
| North America | 45.8 |
| Latin America | 40.4 |
| Europe | 9.4 |
| Asia Pacific | 4.4 |
Interpretation: CI&T saw comprehensive revenue growth across all regions YoY. North America leads in contribution, followed closely by Latin America, highlighting the company's strategic penetration in these markets.
Key Developments and Operational Highlights
- 25.3% YoY revenue growth from the top 10 clients, showcasing strong client relationships and demand for CI&T's services.
- SG&A expenses increased by 33.8% YoY due to investments in sales teams and restructuring costs related to nearshoring strategies.
- Total revenue expected for 4Q24 is projected to grow by 22% YoY.
Comments from Company Officers
Cesar Gon, Founder and CEO, expressed confidence in the company’s growth trajectory, attributing success to their CI&T Flow platform and strategic client partnerships. Looking forward, CI&T anticipates significant opportunities in 2025, driven by increased demand for innovative solutions.
Dividends and Share Repurchase Program
A share repurchase program has been initiated to buy back up to 2.5 million Class A common shares by December 31, 2024. As of September 30, 2024, 1,893,941 shares were repurchased.
Forward Guidance
CI&T projects 4Q24 revenue between R$620 million to R$655 million, reflecting a confident 22% YoY growth outlook, assuming an average FX rate of BRL/USD 5.55 in 4Q24.
Stock Price Movement
Following the earnings release, CI&T’s stock price experienced a decline of 3.36%, indicating a possible market reaction to financial performance or forward-looking statements.
In conclusion, CI&T's third-quarter results demonstrate strong performance across major financial metrics and business segments. The company's strategic investments and focus on client relationships are expected to support continued growth into the next quarter and beyond.
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