Nexpe Participacoes SA

BOVESPA:NEXP3

Earnings Call Transcript 2023-Q1

[Operator]

Good afternoon, ladies and gentlemen, and welcome to Nexpe's audio conference to discuss results relative to Q1 2023. This audio conference is being recorded, and a replay facility can be found in the company's website at www.nexpe.co. The presentation is also available for download. [Operator Instructions]

Before moving on, I'd like to say forward-looking statements have, as basis, beliefs and assumptions on the part of the company's management and also information currently available. Such forward-looking statements might involve risks and uncertainties as they refer to future events and, therefore, depend on circumstances that may or may not materialize.

Investors, analysts and journalists should take into account that events relative to the macroeconomic environment, the industry and other factors might lead these results to be different from those expressed in these forward-looking statements.

Here with us today, we have Mr. Daniel Guerbatin, CFO, CEO and the RI. I'd like now to turn the conference over to Mr. Guerbatin who will start the presentation. Please, sir, you may carry on.

[Daniel Guerbatin, executive]

Good afternoon, everyone, and welcome, everyone, to our earnings call relative to Q1 2023. Nexpe is a platform that offers the best and more thorough customer journey using technology. Our purpose is to make every experience a unique partnership.

We're now on Slide #3. Nexpe's operations saw a performance better in this last quarter than in the first period of the previous year. We have improved our gross revenue by 31% when compared to Q1 2022. Credimorar, our multibank financial platform, played an important role, maintaining the market share for Bradesco and continue to advance in generating real estate credit for Santander and Itaú, reaching a growth of 73% in GFE -- produced GFV when compared to Q1 2022 and has reached BRL 1.2 billion in GFV for the quarter. We have reduced by 24% in the ratio G&A over gross revenue, which shows higher operating efficiency when compared to the same period of last year.

Moving to the next slide. We have the evolution of the gross revenue in the quarter when compared to the previous quarter, 2% better when compared to Q1 last year and 31% better. When we talk about our gross profit, we have reached BRL 15.3 million, a growth of 8% when compared to the last quarter and 14% better than the same quarter of last year.

On Slide #5, in terms of SG&A, we see a nominal amount of BRL 21.5 million in the quarter, a drop when compared to the previous quarters, which also means better operating efficiency. The adjusted EBITDA has no labor liability at minus BRL 8.9 million in the period.

On Slide #6, when we look at the indicators for our performance, we can realize the improvement at 48% of cost over gross revenue and BRL 28,000 per headcount. All our efforts right now are focused on improving those numbers, bringing more revenue and at lower costs.

On Slide #7, we see that the operating generation in the quarter set at BRL 10.9 million negative, and we can see that we are in a trend to decrease cash consumption and stabilize the company.

On Slide #8, we see the evolution of our labor liabilities, and you can see that we are under control. We remain stable at 144 lawsuits in the labor area.

On Slide 9, we see the snapshot of a Figital company where our customers experience both a digital and an in-presence experience. That dynamic is part of the business. Even if a client is looking for a real estate unit digitally, the in-person visit with a qualified broker is fundamental, plays a key role for the final acquisition. In this quarter, 86% of our sales were originated digitally. That journey brings about a better customer experience, better relationship and becomes more efficient. The explanation for that is that today, we have a mature end-to-end platform.

On Slide #10, we see that Credimorar continues to evolve even amidst a market that seems to be resistant and has reached the origination of BRL 15 billion; in other words, resuming levels seen in the second and third quarter of last year. Credimorar origination is a combination of several products such as home equity and financing pools.

On Slide 11, we see the performance of real estate brokerage, where we saw a contraction in PSV and units sold when compared to the previous year.

Moving on to Slide #12. We see the breakdown of those sales: 57% in the state of Rio, 40% in the state of São Paulo and 1% in other places. We can also see that we continue in our plan of concentrating sales on units above BRL 1 million.

Thank you all for listening, and we now move on to the Q&A session.

[Operator]

[Operator Instructions] The Q&A session is now over. I would like now to turn the floor back over to Mr. Guerbatin for his final remarks. Please carry on, sir.

[Daniel Guerbatin, executive]

Thank you all for participating and see you next time.

[Operator]

Nexpe's video conference is now over. Thank you all for participating, and have a nice day, everyone.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]