Nexpe Participacoes SA

BOVESPA:NEXP3

Earnings Call Transcript 2023-Q2

[Operator]

Good afternoon, ladies and gentlemen, welcome to the Earnings conference call of Nexpe for the Second Quarter of 2023. This conference call is being recorded, and the replay can be accessed at the company's website at www.nexpe.co. The presentation is also available for download. [Operator Instructions]

Before proceeding, we would like to clarify that prospective statements that may be made are based on assumptions of Nexpe management and on information currently available to the company. Such forward-looking statements may involve risks and uncertainties since they talk about future events, which depend on circumstances that may or may not occur.

Investors, analysts and journalists should take into account that events related to the macroeconomic environment, the industry and other factors may cause results to differ materially from those expressed in such forward-looking statements.

Here with us at this conference call is Mr. Daniel Guerbatin, CEO, CFO and Investor Relations Officer of the company. Now I will turn the floor over to Mr. Guerbatin to begin the presentation.

[Daniel Guerbatin, executive]

Good afternoon. Welcome to the Earnings Conference Call for the Second Quarter of '23 of Nexpe. Nexpe is a platform that provides the best and most complete experience in the real estate journey using technology. Our purpose is to make a single partnership for each real estate experience.

We are on Slide 3. As a summary, we maintained our gross revenue above BRL 30 million in the quarter. We reached the production in BRL 1.1 billion in Credimorar with a growth of 14% if compared to the same period of last year. And our constant adjustment of cost allowed us to have a decrease of 11 percentage points in the ratio of administrative expenses over gross revenue compared to the previous quarter.

On Slide 4, we have the results for the second quarter of '23. The gross revenue of BRL 32.2 million, 6% lower than the previous quarter. When we talk about our gross result, the same was in line with the previous quarter.

On Slide 5. In terms of administrative expenses, we see a nominal amount of BRL 19.4 million in the second quarter of '23, a reduction of BRL 5.6 million when compared to the same period of the previous year and BRL 2.1 million lower than the previous semester. We have an adjusted EBITDA without judicial liabilities that's BRL 4 million negative in the quarter.

On Slide 6, when we look at performance indicators, we see the cost over gross revenue at 57% with an average production of BRL 32,000 per employee.

On Slide 7, we see that cash from operations in the second quarter of '23 was negative at BRL 3.7 million, and we ended the quarter with BRL 5.8 million in cash.

On Slide 8, we show the development of labor liabilities at the end of the quarter that are 149 labor claims with 5 new claims.

On Slide 9, we show a snapshot of a digital company where the customer journey happens off-line and online. The real estate journey will always follow this path in dynamic because although customers may seek for properties online, the physical visit with the qualified broker and the trust relationship we developed is essential. 86% of our gross revenue was originated from digital channels.

On Slide 10, we see that Credimorar continues to develop despite a resistant market with an origination of BRL 16 billion, with the production stabilized at BRL 1.1 billion. The origination of Credimorar is composed of several projects such as real estate credit, home equity and consortiums.

On Slide 8 (sic) [Slide 11], we see the develop -- the performance of the site. There was 76% in Rio de Janeiro, 14% in Sao Paulo and 10% in other states.

Thank you all very much, and let's open for the Q&A session.

[Operator]

[Operator Instructions]

Since there are no further questions. The Q&A session is now ended. Now I would like to turn the floor over to Mr. Guerbatin for his final remarks.

[Daniel Guerbatin, executive]

I would like to thank all the Nexpe employees for their commitment in all the deliverables given the adverse problems we had and the team that exceeded our expectations. Good afternoon.