Nvni Group Limited reports 2023 FY results: Net Revenue growth of 36%, Adjusted EBITDA up 142%

Rhea-AI Summary

Nvni Group (NVNI), Latin America's leading SaaS B2B company acquirer, reported strong financial results for FY 2023. The company achieved 36% growth in net revenue to R$ 168,985 million and a 142% increase in Adjusted EBITDA to R$ 44,238 million. Notable improvements include:

- Adjusted EBITDA margin expansion to 26% (up 800 bps)
- Gross profit increase of 43% to R$ 102,847 million
- Aggregate churn reduction of 28% to 3.3%
- CAC/LTV improvement of 33% to 452%
- Net loss per share reduction from R$ 6.48 to R$ 3.10

The results exclude R$176,282 million in non-cash, non-recurring items related to the SPAC merger in September 2023.

Positive

• Net revenue growth of 36% to R$ 168,985 million
• Adjusted EBITDA surge of 142% to R$ 44,238 million
• Gross profit increase of 43% to R$ 102,847 million
• Adjusted EBITDA margin improvement of 800 bps to 26%
• Significant reduction in net loss per share from R$ 6.48 to R$ 3.10
• Customer churn reduction of 28% to 3.3%
• CAC/LTV ratio improvement of 33% to 452%

Negative

• Company still operating at a net loss

Insights

Financial Analyst

The financial performance demonstrates remarkable execution in Nvni Group's roll-up strategy in the Latin American SaaS B2B space. The 142% surge in Adjusted EBITDA to R$ 44,238 million, coupled with an 800 basis point improvement in EBITDA margin to 26%, signals strong operational leverage and successful integration of acquisitions.

Two metrics stand out as particularly impressive: The reduction in aggregate churn to 3.3% (down 28%) indicates high customer satisfaction and sticky revenue streams. The 452% CAC/LTV ratio (up 33%) suggests highly efficient customer acquisition and strong unit economics. The significant narrowing of net losses from R$ 6.48 to R$ 3.10 per share (excluding SPAC-related items) shows clear progress toward profitability.

For a serial acquirer, maintaining 36% revenue growth while expanding margins substantially indicates disciplined M&A execution and successful post-merger integration. The Latin American SaaS market remains fragmented, providing continued opportunities for accretive acquisitions.

Market Research Analyst

Nvni's results validate its position as the dominant consolidator in Latin America's B2B SaaS landscape. The dramatic improvement in customer metrics - particularly the reduced churn and enhanced CAC/LTV ratio - demonstrates the advantages of scale in this market. The platform approach allows for cross-selling opportunities and operational synergies that smaller, standalone SaaS companies cannot achieve.

The timing is opportune as Latin America's digital transformation accelerates, with businesses increasingly adopting cloud-based solutions. The region's SaaS market remains highly fragmented compared to mature markets, creating a long runway for Nvni's acquisition strategy. The robust EBITDA growth suggests the company has cracked the code on identifying, acquiring and integrating complementary SaaS businesses while maintaining strong unit economics.

NEW YORK, Dec. 26, 2024 (GLOBE NEWSWIRE) -- Nvni Group Limited (Nasdaq: NVNI) (“Nuvini” or the “Company”), the leading serial acquirer of private SaaS B2B companies in Latin America reports financial results for FY 2023:

Key highlights:

• Net revenue: R$ 168,985 million up 36%
  
  
• Gross profit: R$ 102,847, million up 43%
  
  
• Adjusted EBITDA: R$ 44,238 million up 142%.
  

“We are incredibly proud of our FY 2023 performance, which reflects the strength of our business model and the unwavering dedication of our team,” said Pierre Schurmann, Nuvini’s CEO. “With 36% revenue growth, a remarkable 142% increase in Adjusted EBITDA, and a significant improvement in profitability metrics, we are demonstrating our ability to drive sustainable growth while delivering increasing value to our clients and shareholders. These results affirm our position as the leading consolidator of private SaaS B2B companies in Latin America. We are excited both about our current portfolio companies’ superior performance, reflected in the financial highlights below, and the opportunities ahead from our robust acquisition pipeline.”

Financial highlights

• Total Gross Profit of R$ 168,985 million up 36%
  
  
• Adjusted EBITDA R$ 44,238 million up 142%.
  
  
• Adjusted EBITDA margin at 26%, up from 18%, a 800 bps improvement.
  
  
• Aggregate churn down 28% across all clients to 3.3%
  
  
• CAC/LTV up 33% at 4
  
  
• 52% Net Loss reduction to R$ 3.10 per share in 2022 vs R$ 6.48 per share in 2022, excluding R$176,282 million of non-cash, non-recurring and other extraordinary items related to the merger with the SPAC in September 2023.
  

About Nuvini

Headquartered in São Paulo, Brazil, Nuvini is the leading private serial software business acquirer in Latin America. The Nuvini Group acquires software companies within SaaS markets in Latin America. It focuses on acquiring profitable “business-to-business” SaaS companies with a consolidated business model, recurring revenue, positive cash generation and relevant growth potential. The Nuvini Group enables its acquired companies to provide mission-critical solutions to customers within its industry or sector. Its business philosophy is to invest in established companies and foster an entrepreneurial environment that would enable companies to become leaders in their respective industries. The Nuvini Group’s goal is to buy, retain and create value through long-term partnerships with the existing management of its acquired companies.

For more information, visit www.nuvini.co

Forward-Looking Statements

Some of the statements contained in this press release include or may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies regarding the future. The forward-looking statements contained in this press release are based on current expectations and beliefs concerning future developments and their potential effects on Nuvini. There can be no assurance that future developments affecting Nuvini will be those that we have anticipated. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan,” “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements contained in this press release include, but are not limited to, statements about the ability of Nuvini to: realize the benefits expected from this strategic partnership; achieve projections and anticipate uncertainties relating to the business, operations and financial performance of Nuvini, including (i) expectations with respect to financial and business performance, including financial projections and business metrics and any underlying assumptions, (ii) expectations regarding market size, future acquisitions, partnerships or other relationships with third parties, (iii) expectations on Nuvini’s proprietary technology and related intellectual property rights, and (iv) future capital requirements and sources and uses of cash, including the ability to obtain additional capital in the future; enhance future operating and financial results; comply with applicable laws and regulations; stay abreast of modified or new laws and regulations applying to its business, including privacy regulation; anticipate rapid technological changes; and effectively respond to general economic and business conditions.

While forward-looking statements reflect Nuvini’s good faith beliefs, they are not guarantees of future performance. Nuvini disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. For a further discussion of these and other factors that could cause Nuvini's future results, performance or transactions to differ significantly from those expressed in any forward-looking statement, please see the section “Risk Factors” of the Registration Statement in Form F-4 filed by Nuvini with the U.S. Securities and Exchange Commission on September 6, 2023 under number 333-272688. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Nuvini.

For further information or media inquiries regarding this partnership, please contact:

Nuvini Investor and Media Contact
Debora Dias
ir@nuvini.co

FAQ

What was NVNI's revenue growth in FY 2023?

Nvni Group reported a 36% increase in net revenue to R$ 168,985 million for FY 2023.

How much did NVNI's Adjusted EBITDA improve in 2023?

NVNI's Adjusted EBITDA grew by 142% to R$ 44,238 million in FY 2023.

What was NVNI's customer churn rate in 2023?

NVNI's aggregate customer churn rate decreased by 28% to 3.3% in FY 2023.

How did NVNI's net loss per share change in 2023?

NVNI's net loss per share improved from R$ 6.48 in 2022 to R$ 3.10 in 2023, excluding extraordinary items related to the SPAC merger.

What was NVNI's Adjusted EBITDA margin in 2023?

NVNI's Adjusted EBITDA margin increased to 26% in 2023, up 800 basis points from 18% in the previous year.