Nexpe Participacoes SA

BOVESPA:NEXP3

Earnings Call Transcript 2022-Q3

[Operator]

Good afternoon, ladies and gentlemen. Welcome to the Nexpe videoconference for the quarter -- the third quarter of '22. If you want, you can check at nexpe.co. for the presentation. This will always be available for download.

[Operator Instructions]

Before we go on, we'd like to say that prospective statements are based on the beliefs and ideas of the administration of Nexpe based on the current and available data. These statements may involve risks and uncertainties because they have to do with future events and they depend on circumstances.

Investors, analysts and journalists may take into account that events related to the macroeconomic environment, the segment, the industry may lead to profits and results that are different than those expressed here.

We have Ms. Andrea de Rizzio, CFO, and Investors Relationships Director; and Daniel Guerbatin, CEO of the company. Mr. Guerbatin will start his presentation.

[Daniel Guerbatin, executive]

[Audio Gap] Credimorar achieved 27% if compared to the previous quarter. And we also completed the reduction project of our legal liabilities in 80 lawsuits and only four's pend homologation.

Now let me call Mrs. Andrea de Rizzio, our CFO, Investors Relationship Manager, who will talk about more financial and performance details. I'll be back later.

[Andrea de Rizzio, executive]

Thank you, Daniel. Good afternoon, everyone. So let me start our presentation on Slide 4, and I'll talk about our results for the first (sic) [ third ] quarter of 2022. The gross revenue in this quarter was BRL 42.8 million, 18% higher than the previous quarter. This recovery is mainly due to the growth of financial services market. When we talk about gross profit, it grew 13% when compared to the second quarter of 2022.

In Slide 5, regarding administrative expenses, there was a face value of BRL 22 million in the third quarter of '22, a drop of 17.8% if compared to the second quarter. We have breakeven in adjusted EBITDA with no labor liabilities, with an improvement of nearly BRL 5.2 million regarding the second quarter of 2012.

On Slide 6, when we look at performance indicators, both cost over revenue and revenue per headcount, both had significant gains due to improvement of revenue and not growth in cost and headcount.

On Slide 7, our operating cash flow generation was negative in BRL 25 million, closing the quarter with a balance of BRL 30.2 million. This impact reflects especially the payment of labor liabilities.

On Slide 8, we demonstrate the evolution of liabilities with a total of 144 lawsuits. So this was the results' session. And back to Daniel, who will continue with our call, talking about the performance of our operations.

[Daniel Guerbatin, executive]

Thank you very much, Andrea. So on Slide 9, we show a picture of a Figital company, where the client's journey takes place in the physical environment, off-line; in the digital environment, the online. The real estate journey has and will always have these dynamics. Even when customer look for properties in the digital environment, the physical visitation with a qualified broker and the relation of trust is crucial.

In this quarter, 83% of our sales had their origins in digital channels. This journey brings better experience to the customer, better relationship and is more efficient. The explanation for that is that we develop system and processes that improve the performance in the funnel, environment in leads coming from digital channels.

Now on Slide 10, we see that Credimorar continues evolving in its growth and achieved BRL 1.187 billion, going back to levels of productions next to the peak achieved in the third quarter last year. Credimorar is composed of several products like real estate credit, home equity and [ pool ] purchase.

On Slide 11, we see the performance of ready properties. In this vertical, that is composed by brands like the Desenrola, Bamberg and Brasil Brokers. We had global sales values retraction in units sold regarding the previous quarter.

Now on Slide 12, we have distribution of the sales like 57% in Rio de Janeiro, 36% in São Paulo and 7% in other regions. We can also see that we keep owning our planning of concentrating the sales of real estate properties above BRL 1 million. Half of our sales already take place in this segment.

On Slide 13, I detail Desenrola location data, our main initiative in this market. And we have improved continually in our processes and systems with better performance in funnel conversions if compared to traditional operation in our history, even with a higher difficulty in generating leads.

In Slides 14 and 15, we see information related launching intermediation segment, where we can see there is a retraction in all indicators.

Now on Slide 16 and 17, there are some initiatives connected to ESG. We believe the future is a responsibility of us all, and we must have commitment to do our part in this ecosystem. The ESG agenda out of all the Nexpe group brands is composed of multidisciplinary professionals and volunteers who try to integrate the strategy of the business with environmental, social and governance commitments.

The next slide, this makes me proud, which is the Gigantesca movement, which says it can all be included, but prejudice. We will focus on inclusion and diversity. So we have an environment where everyone is cherished, supported and treated with justice and respect, with equal access to opportunities and resources and can contribute fully for the group's success in guaranteeing conditions so that everyone can reach their full potential.

Thank you very much for your attention. And now let's move on to the Q&A session.

[Operator]

[Operator Instructions] Question and answer session is hereby closed. Let me call Mr. Guerbatin, who will now make his final considerations.

[Daniel Guerbatin, executive]

Hello, good afternoon. I'd like to thank you all for attending the Nexpe call. Today, exceptionally, I will ask Andrea for her final thoughts on this call. So Andrea, the floor is yours, please.

[Andrea de Rizzio, executive]

So I would like to say that, thank you very much. I wish Nexpe a lot of success. Thank you very much, and thank you for your attention.

[Daniel Guerbatin, executive]

Can you hear me? Can you hear me? Can you hear me? Well, I think she is not with us. But let me tell you the Nexpe participations is here to inform shareholders and the market. We stated in our statement. She decided to renounce her post as CFO and Director of Investors Relations.

I would like to thank Andrea for all the years she devoted to Nexpe, and I wish all the best for her future undertakings. Thank you very much. And I hope you enjoy your afternoon.