Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Meliuz SA (BSP:CASH3, Financial) successfully completed an operational turnaround, achieving a positive adjusted EBITDA of 54.1 million in 2024, compared to a negative 93 million in 2023.
- The company reported a significant increase in user base, growing from 30 million accounts in Q4 2023 to 38.4 million in Q4 2024, representing a rapid growth rate.
- Meliuz SA's net revenue grew by 12% year-on-year in 2024, with a notable acceleration in the second half of the year.
- The company achieved a 62% growth in new shopping accounts, driven by successful Black Friday promotions and increased user engagement.
- Meliuz SA launched new financial services products, including Meliuz Prime and investment options, which contributed to increased user retention and engagement.
Negative Points
- Despite the positive turnaround, Meliuz SA's revenue growth was modest at only 2% in 2023, indicating challenges in accelerating growth during the initial phase of the turnaround.
- The company faced impacts on net take rates, although it maintained levels above 2%, which could affect profitability if not managed carefully.
- Personnel and general administrative expenses showed significant drops year-on-year, raising questions about sustainability and potential underinvestment in key areas.
- The transition to an asset-light model with BB required disinvestment, which may have short-term impacts on revenue generation and growth.
- Meliuz SA's focus on maintaining stringent cost controls and efficient investment allocation could limit flexibility in responding to market changes or opportunities.
Q & A Highlights
Q: Could you elaborate on your focus for accelerating sustainable growth in 2025? Are you planning to speed up the growth of GMV, or does it refer to something different?
A: Gabriel Lourdes, CEO: Our focus in 2025 is to continue to grow and speed up growth. We want to increase revenue, which will reflect differently across our business lines. Between 2022 and 2024, we reduced costs and made the company healthier. We aim to maintain those margins while accelerating growth, which will be evident in user acquisition and other channels at varying intensities. We will also be launching new products.
Q: Can you provide more details on the significant drop in expenses with personnel and GNA, and what would be the recurrent amount for these line items going forward?
A: Marcio, CFO: In terms of operating expenses, we have variable and fixed ones. Variable expenses are related to cashback, which increases with revenue. For personnel expenses, we don't expect significant changes compared to 2024, aside from inflation adjustments. We are confident that fixed operating expenses will align with 2024 levels.
Q: How did the strategic shift to an asset-light model with BB impact your financial results?
A: Gabriel Lourdes, CEO: The shift to an asset-light model with BB since 2023 focused on profitability. We reversed negative results, achieving an adjusted EBITDA of 54.1 million in 2024, consolidating growth and enhancing margins. This model allowed us to share value with partners while maintaining a focus on profitability.
Q: What are the key highlights of your product development in 2024, and how do they contribute to your growth strategy?
A: Gabriel Lourdes, CEO: In 2024, we significantly developed products like Melius Prime, which grew our subscriber base tenfold. This program enhances user purchasing behavior and retention, contributing to both B2B and B2C growth. Additionally, we expanded our financial services with new verticals like insurance and investment products, aligning with our growth strategy.
Q: Can you discuss the impact of your user base growth on your business performance?
A: Gabriel Lourdes, CEO: Our user base grew significantly, with accounts increasing from 30 million in Q4 2023 to 38.4 million in Q4 2024. This growth, the fastest since 2021, was crucial for our long-term sustainability. It led to a 62% increase in shopping and a threefold growth in digital accounts, driving revenue and product engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
