Q1 2021 Linx SA Earnings Call

[music].

Good morning, ladies and gentlemen, and thank you for waiting.

Welcome to earrings conference call to discuss the results of the first quarter of 2021.

Share today are Mr. Alba and domain ashy links CEO Rama teas, and Dragon, CFO, and all euro and commodity and uphold shoes.

Head of Investor Relations, we would like joined Formula to disadvantage being recorded and timely P and years be translated into English.

All participants will be in listen only mode. During the company's presentation and after that we will initiate the Q&A session. When further instructions will be provided.

In case any of you need any assistance during this call. Please spread zero a star zero to reach the operator. This event is also being broadcast live via webcast and may be access it through the website and I are dot links dot com Dot BR.

Where the presentation is also available participants may view the slides in any order. They wish the replay will be available shortly after the event is concluded.

Before proceeding let me mention that forward looking statements about future events operating or financial results are based on the beliefs and assumptions of links management and also on information currently available to the company.

Forward looking statements are no guarantee of performance as they involve risks uncertainties and assumptions as they refer to future events and therefore depend on circumstances that may or may not occur.

Investors and analysts should understand that conditions related to macroeconomic conditions and history and other factors could also cause results to differ materially from those expressed in such forward looking statements.

Now I will turn the floor to Mr. Alba and commit ashy, who will start for presentation. Mr. Menasha you May proceed.

Good morning.

Thank you very much for your interest and trust and links.

The first quarter of 2021 was a very difficult one for Brazil, new variants of the Corona virus were detected.

And the number of infections has skyrocketed across the country, the public health care system and several municipalities collapsed.

And time and Fortunately the debt Tal was higher than ever.

With all of that more restricted restrictive measures had to be put in place throughout the nation and.

Acts different moments.

According to the severity of the situation in each municipality or region of the country.

At the same time the countries started to vaccinate its population against COVID-19.

With this backdrop e-commerce remains the main alternative for retailers to operate safely and even grow their businesses.

Thanks.

Continues to develop and improve its products and systems, while at the same time and strengthening partnerships to support retailers to navigate through this challenging period that has vaccinated over a year.

Our portfolio consists of quick and efficient solutions.

And we've been excellent cost benefit ratio for all retailers in different industries and profiles.

According to I B G E monthly Commerce survey the volume of sales and retail trade grew two point for for Sandy and March of 2021 when compared to the same period of 'twenty 'twenty.

However, the negative results posted in January and mainly February resulted in a 0.6% decline year on year.

We still have some power steady any relevant impact on churn due to the differentiator and profile of our customer base and also the fact that the months.

And the subscription subscription fee had a lower representatives and is on our customers' revenue.

Also I would like to take this opportunity to mention the excellent performance of our e-commerce related products like links Calmart's.

And and also our delivery product like the delivery apps and more to that vote.

Hosting and impressive growth in the period.

As we will see further on.

Yes.

Our opportunities Committee continues to monitor the M hangs on.

Of COVID-19.

In addition to the several measures to protect our cash debt have been employees since the early days of the pandemic, 100% of links employees are still working from home and so far there is no prediction on when they should return to our offices.

Before proceeding I would like to highlight the status of the business combination between links and stone.

As you are aware on March 19th Caddies General Superintendents issued a technical opinion in favor of the approval with no restrictions at the business combination between links and stone cold on April 7th of this year, we informed the market.

That's the technique our opinion from colleges General Superintendence was appealed and now is being analyzed by card and use admin and strategic tribunal.

Links will keep its shareholder than the market and forums as to judge us for the general developments out there referred the proceeding and the final decisions will be awarded by Cognos Tribunal and Gerald the final approval occurs links and stone and will continue to operate independently.

Now I will give the floor to <unk>, who will talk about the results of the first quarter of 'twenty 'twenty. One Rama Chief. Please you May proceed.

Thank you Alberto and good morning to you all.

Looking at the presentation now on slide three links core total recurring revenue was up 12% year on year and here I would like to highlight a few points what do we look at it the delivery performance in Q1 'twenty one we see that the recurring revenue was up 300 and cheaper sand it.

Over Q1 of 'twenty, 'twenty with a customer base, and 114 point and 2% higher when compared to the same quarter of last year and the other highlighted heber recurring revenue that grew 36 pre sade year on year.

He per authorities base was 27% higher visa V Q1 of 2020.

Yes.

Farmers recurring revenue was up 16% and over the first quarter of 2020.

And customer activation was 39% higher when compared to Q1 of 'twenty and finally.

Links totaled 428 franchisees and December accounting for 38 per cent of volume of Activations in the first quarter of 2021.

Here on slide three we see the main highlights of link spray that pulsed and 10% growth year on year of total recurring revenue. The main highlights are the electronic transfer of funds T F, which was 54% of links pays recurring revenue in a quarter and the volume traded.

Was 30% higher when compared to the first quarter of 'twenty. Another highlight was gateway with for 7000 customers and March QR code and takes total more than 14000 customers at the end of Q1 of 2021 increasing the customer base by 8% vis vis December of.

<unk> 2020.

Finally <unk>.

A link space G. P V room, 2.2 times in relation to the first quarter of 2020.

Now moving to slide four.

We show the highlights for Lynx digital which total recurring revenue grew 56% in the quarter HIV last year since April of last year, we've been posting and Black Friday sales volume every month with a G. M V from the E Commerce platform and 87 for <unk> for.

As said higher year on year.

Links and pulse recurring revenue grew 37%.

Versus the first quarter of 'twenty, and 'twenty, representing 60% of lengths Digital's recurring revenue. Moreover, there was an increase in ads and that increase was 188 per sand higher in the volume of bass line.

And when compared to other first quarter of last year and.

And at the end of the court quarter Omni O M. S had 25 clients and 6300 rollout stores and therefore and recurring revenue was up 71% year on year and their first quarter on 'twenty. One of approximately 400 sellers published their inventories and marketplaces of links Barclays and finally, I would like to mention that we were.

Reached 38 links digital partners.

I would like to think.

Your of support throughout this process with car day related to stone and links.

Business combination and I would like to thank link's financial team they've been doing an excellent work.

I would like to thank all of our B piece and those who work with me. Thank you for it and there's incredible partnership and and last but not least I would like to thank links board members. We just elected a new independent members of on one of them.

Links founders.

So I would like to thank our entire team.

And think links shareholders for their trust in the company and we are at your disposal, how and I wish you all of a very good day. Thank you very much.

<unk> conference call.

On the results of the first quarter of 2021 and is now concluded.

Thank you all for joining us and have a very good day.

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