LWSA presented its 3Q24 financial results with significant advances in productivity, reflected in the Gross, Net and EBITDA margins that demonstrate significant expansion compared to previous periods, and solid performance in its operational indicators.
During the period, customers' Own Store GMV grew by 18%, while Ecosystem GMV grew by 15.9% compared to 3Q23.
"Despite the macroeconomic scenario still lacking clear growth trends for retail and e-commerce in Brazil, our operational results maintain an important growth trajectory. These increases, which surpass the market average, are the result of the company's new development avenues and the quality of our ecosystem, which includes various integrations and tools that enable our clients to accelerate their sales both in their own e-commerce platforms and in marketplaces," says Rafael Chamas, the company's current COO.
Based on this performance, LWSA's Consolidated Net Revenue in 3Q24 was R$ 349.3 million, a 5.8% increase compared to 3Q23 and a 4.0% increase compared to 2Q24. In the Commerce segment, Net Revenue reached R$ 243.0 million, an 8.5% increase compared to 3Q23 and a 5.5% increase compared to the immediately previous quarter. Ignoring the effects of Squid, the group company undergoing restructuring, the Company showed an 11.7% growth in Q3 2024 compared to Q3 2023. Still for the Commerce segment, growth excluding Squid was 18.0% compared to Q3 2023.
The evolution of the Company's profitability also stands out in this quarter.The Gross Margin reached 49.9%, representing a 6.0 percentage point increase compared to the same period of the previous year, due to gains in operational cost efficiency, as well as the significant growth of the Commerce segment, which has a higher gross margin than the BeOnline/SaaS segment.
In the quarter, the company also showed improvement in its Adjusted EBITDA, which grew by 36.2% in 3Q24 compared to 3Q23, with an adjusted EBITDA margin of 21.1% (an expansion of 4.7 percentage points).
In the period, LWSA's Net Income was R$16.9 million, while Adjusted Net Income was R$37.0 million, an increase of +52.7% vs 3Q23.
We understand that the future of retail is being shaped by technological innovations and changes in consumer preferences. LWSA conducted a survey focused on Omnichannel and Unified CommerceClick here), reinforcing a major trend, which is increasingly evident, of all journeys being fully integrated. One example of this is that 79% of consumers are already transitioning between online and offline. Furthermore, 44% of consumers believe that this integration is only perfect when service is quick and efficient across all channels, and 34% when they can buy online and pick up in-store without friction," says Fernando Cirne, CEO of LWSA.
In the quarter, one of the important innovations was Tray POS, a solution that automates business management for retailers. This product aims to provide, in a single environment, all the necessary tools for store management, whether virtual or physical, allowing merchants to unify the management of their physical and online businesses. The Wake U app was also launched, bringing together various systems into a single solution, maximizing the potential of the infinite shelf, integrating sales, inventories, payments, and orders, providing a unified view of the customer through an integrated CRM.
The company continues to expand the use of Artificial Intelligence, such as Woz Agent, launched by Octadesk in Q3 2024. The tool allows for customized configuration of multiple agents to meet different needs, optimizing efficiency and customer experience.
In October, LWSA concluded its 3rd Share Buyback Program, totaling 30,939,800 shares purchased, and approved the cancellation of 34,000,000 LWSA shares (5.7% of the company's total shares). Due to the cancellation of treasury shares, LWSA's share capital has been divided into 562,886,478 common shares.
Finally, it was decided by the Company's Board of Directors that on November 21, 2024, dividends in the amount of R$40,000,000.00 will be paid, corresponding to R$0.07164873 per common share, excluding treasury shares.
