Linx Grows 11% in Net Revenue in the First Quarter of 2021 Compared to the Same Period in 2020

Rhea-AI Summary

Linx reported gross revenue of BRL 264.5 million for Q1 2021, with total recurring revenue reaching BRL 233 million, a 15% increase year-over-year. Net operating revenue rose 11% to BRL 231 million. Adjusted EBITDA totaled BRL 52 million, reflecting a margin of 22.4%. However, an adjusted net loss of BRL 4 million was noted. CEO Alberto Menache emphasized the resilience of e-commerce during challenging times in Brazil, with Linx Digital and Linx Pay contributing significantly to recurring revenue. Linx holds a 45.6% market share in retail management software in Brazil.

Positive

• Gross revenue of BRL 264.5 million in Q1 2021.
• Total recurring revenue up 15% year-over-year to BRL 233 million.
• Net operating revenue increased by 11% to BRL 231 million.
• Adjusted EBITDA reached BRL 52 million with a margin of 22.4%.
• Recurring revenue from Linx Core grew 14.6% compared to Q1 2020.

Negative

• Adjusted net loss of BRL 4 million in Q1 2021.

Linx closed the first quarter of 2021 with gross revenue of BRL 264.5 million. In 1Q21, total recurring revenue reached BRL 233 million, 15% higher than 1Q20 and equivalent to 88% of gross revenues. Net operating revenue was BRL 231 million, which represented an increase of 11% over 1Q20. Adjusted EBITDA reached BRL 52 million in the quarter and the adjusted EBITDA margin in the period was 22.4%. The adjusted net loss in the first quarter was BRL 4 million.

“The first quarter of 2021 was very hard for Brazil. New variants of the Coronavirus have been detected, the number of infections has skyrocketed across the country, health systems in several cities have collapsed and, unfortunately, the death toll has grown exponentially. In view of this situation, e-commerce continued to be the main alternative for retailers to continue operating safely, enabling the continuity and even the expansion of their businesses. As a result, Linx Digital now represents 14.7% of total recurring revenue in 1Q21, while Linx Pay also grew and started to account for 13.1% of total recurring revenue in the same year. It is important to note that despite the restrictive measures to the retail operation, the recurring revenue of Linx Core grew 14.6% in 1Q21 when compared to 1Q20,” explains Alberto Menache, Linx CEO.

We reaffirm our commitment to the long term, ensuring the safety of our team, service to customers and suppliers, and consequently, to the business.

About Linx

Linx is a Brazilian company specialized in retail technology. Leader in the management software market, with 45.6% of retail market share, as IDC attests. All of Linx's shopping journey expertise is transformed into key insights to achieve what retailers expect most: build customer loyalty and achieve tangible, relevant results. Publicly traded at B3 since 2013, Linx also became the first Brazilian publicly traded software company at NYSE in 2019. The company has more than 3,500 employees distributed among its headquarters in São Paulo, 15 branches throughout Brazil. and 5 countries in America. To learn more, visit www.linx.com.br/imprensa.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005994/en/

FAQ

What were Linx's total recurring revenues in Q1 2021?

Linx's total recurring revenue for Q1 2021 was BRL 233 million.

How much did Linx report in net operating revenue for Q1 2021?

Linx reported net operating revenue of BRL 231 million in Q1 2021.

What was Linx's adjusted EBITDA margin in Q1 2021?

Linx's adjusted EBITDA margin in Q1 2021 was 22.4%.

Did Linx experience any net loss in Q1 2021?

Yes, Linx recorded an adjusted net loss of BRL 4 million in Q1 2021.

What percentage of recurring revenue did Linx Digital account for in Q1 2021?

Linx Digital accounted for 14.7% of total recurring revenue in Q1 2021.