Q4 2021 Ci&T Inc Earnings Call
And as such are subject to known and unknown risks and uncertainties, including but not limited to those factors described in our earnings release and discussed in the risk factors section of our registration statements on form F. One in connection with our initial public offering and other reports we may file from time to time with the SEC.
This risks and uncertainties could cause actual results to differ materially from those expressed on this call. We caution you not to play undue reliance on those forward looking statements because they are valid only as of the date when made.
During this presentation, we will comment on certain non <unk> financial measures to evaluate our business. Please refer to the reconciliation tables of non <unk> measures in the appendix for more details.
Our agenda for today includes an update on our financial highlights and recent events followed by some of our successful business cases.
We will also discuss our people in ESG strategy and deep dive on our quarterly and annual financial results. After the presentation, there will be a Q&A session.
Now I am pleased to invite says they're going to begin our presentation. Thanks Eduardo.
Good day, everyone I.
I hope, you're well and safe, it's an honor to be here again with all of you.
We are delighted to end 2021 with robust results outperforming our growth guidance for the quarter and year in our first year end as a public company before diving into those results are worried about our industry under the current economic and macro environment and the opportunity for <unk>.
Yes, there are clouds in the Sky Global economy has yet to recover from a devastating pandemic and we have a new set of geopolitical dredge on the table, but one thing has not changed software continues to eat the world.
Precedent and radical shifting society values and consumer behaviors companies need to react and uncertainties are the best shoe for change.
You should always to answer to Rick on that companies to a new breed of consumers.
The result is a secular demand for digital services and the corporate world.
An extraordinary opportunity for a decade of high growth for Ci.
And that's why we continue to present solid results and our bullish long term outlook.
Our net revenue growth in the fourth quarter of 2021 was 72% year over year and I'm proud to say does or two in the second quarter of consecutive revenue growth.
2021 our net revenue totaled $1 44 billion Reais.
Two 1% higher than 2020.
This growth was boosted by three main factors. The first was higher demand from existing clients with a metal revenue retention of 128%.
Second. The addition of 36, new clients, which annual revenue above $1 million in Brazilian reais to our portfolio moving from 58 in 2022 94.
In 2021.
Third the fast and smooth integration of the extra as for new growth of units on top off or a solid growth.
EBITDA margin was 22, 4% a benchmark in our industry and our cash conversion was 66%.
It's an outstanding result, and I want to express my gratitude to all CIA tiers worldwide I am very proud of what we've done as a team. Thank you.
Sterling will present, our financial results in more detail shortly.
Another relevant update.
In January this year, we announced our first post IPO equity position alignment with our goal to pursue strategic M&A to foster our organic growth.
So let me use an award winning digital project agents based in the UK with a very similar culture to our founder led innovation driven and have a sterling reputation with global brands delivering digital solutions across several verticals, especially automotive and wood.
The company recorded 25 million British pounds net revenue last year, a 41% growth compared to 2020.
So it will add around 300 digital specialists with deep expertise in digital products, a strong leadership team and offices in the U K the U S and Colombia.
We will accelerate our growth in Europe .
Second largest market for digital services in the World now lets take a look at recent puffer stores. We are building with our clients. The first is the high end U S manufactured reinventing the whole module experience set.
Second as Soma will help you in large UK utility company Booth.
Customers' experience at scale and third is the successful launch of a financial services marketplace to millions of consumers in Brazil in just four months.
We go.
Okay.
We are very proud to partner with centers.
One of the world's leading sound experience companies to support its growth ambitions and deliver stellar customer experiences.
Our services play a critical role in several technology solution that enables owners to move faster and fulfill business need to drive innovation.
One very important aspect of our joint work is the modernization as soon as cool platform, which has helped to deliver soon as radio subscription service to customers.
And enhance the company's key digital offering.
The data around we are helping scientists structure and evolve its data platform, leading to faster and more accurate decision building.
<unk> is also working in close partnership with Bono to empower its products organization and enable deep internal alignment digital value stream.
And a strong focus on consumer needs.
This brings a disciplined and deliberate approach towards progress.
Accelerating value creation and increasing efficiency at scale.
Okay.
Beyond our European utility company operating in over 30 countries with over 33 million customers approached sell mode to design and build a self service customer platform.
The goal to launch a new digital product at rapid pace with the scale to adapt and manage new and existing customers at the same time provide a one stop shop for account management to boost customer experience for E on Nick the renewable energy arm of E. On.
Delivering at pace only 14 weeks from briefing thermal launched an innovative digital product that transforms the leading energy provider into a digital first business executing at scale by migrating $5 7 million customer accounts onto the platform served as a key lever towards a multimillion pound cost reduction.
Digital product enabled the migration of millions of recently acquired empower customers onto a single platform.
Working with the backdrop of COVID-19, causing global chaos enforcing numerous countries into lockdown thermal quickly pivoted to develop an effective agile and transparent way of working.
Delivering remote customer testing to enable rapid response and accelerate launch.
Using cutting edge technologies, including the integration of octopus energies cracking platform and an agile approach to delivery ensured a more enjoyable and meaningful experience for customers.
Empowering neon NEK and their customers to take a fresh and flexible approach to manage their account requirements in one place.
Soma and <unk> continue to work together to drive forward digital services that benefit both customers and employees of E on and sustain their market leading status.
Okay.
Mixed shelf is a marketplace of mix predict digital bank.
With more than 10 million users next created the next shop marketplace to enhance its position as a digital platform offering different financial services within the digital financial landscape.
The marketplace offers instant cashback, an important competitive advantage.
<unk> partnered with Bank company and latex to orchestrate the solution.
The project demonstrates the IMT unique approach of articulating and utilizing deep technical skills to build impactful solutions in partnership with different providers and business unit.
We were responsible for the deployment of the business strategy and all the development of the <unk> platform.
Within four months. The next shelf marketplace was successfully launched and the high end technology was ready in time for Black Friday 2021, enabling the next step to reach a new record of downloads in just two months 100000 products were available across over 30 departments and categories.
Well. These are just a few examples of how <unk> is generating business impact.
Based on our scale to some of our clients now I invite Bruno to talk about our delivery model and to comment on our people and ESG strategy. Thank you Stella.
Good morning, everyone. It's nice to be here with you again.
We are very proud of our organizational design, which we've been perfecting over many years. It was a model designed for growth and has intrapreneur ship at its core.
We're approaching the market through autonomous units called growth units.
Turning charges, bringing together multifunctional teams that work on multiyear Julien a lot of our clients and.
And to foster innovation and corporate learning across the growth units, we created a power outage.
Our houses are virtual cross growth unit communities focused on speeding up learning and marketing verticals newer technologies security practices oriented specific subject, rather one thing additional world.
Reformer powerhouses, we can assemble teams that are fluid and industry verticals have deep expertise in the lifecycle of digital products and its practices Master a wide range of technologies and are also role models for our new organizational culture, more agile and more collaborative.
Now, let's take a look at a practical example of one of our successful powerhouses.
The open finance powerhouse brings together a global team of strategists designers and technologists, who had been immersed in the financial services industry for years or decades. It includes teams that have been implementing open banking and some of the largest global banks and market expertise from countries at different stages of open finance adoption. It goes beyond the regs.
<unk> demands of open banking, where those exist and explore as the business benefits of embracing a broader opened finance strategy. One key example of how the powerhouse works to leverage this global network is the participation in the global open Finance challenge, which resulted in US winning this global competition proposed by four global banks and now having an opera.
Tuning to developed in partnership with them a platform that enables global mobility from a financial perspective, and solves an age old problem that millions of immigrants continue to face every year overall the open finance powerhouse allows <unk> to serve its clients in their local markets with the perspective of multi markets experienced the more intelligently.
<unk> for a world that is increasingly connected.
Now on to our most important asset our people.
In 2021, we surpassed incredible Mark of 5000 tiers.
Peers around the globe and ended the year with more than 5500 people.
It represents a net addition of 2300 selling tiers.
73% growth year over year.
Our attrition rate at the end of 2021 was 15, 6%.
Increase compared to <unk> historical level due to M&A activity in the current competitive environment for Tech talent.
Leadership attrition, though was only three 6%, allowing us to continue to project and consistent growth and high net revenue retention.
We continuously strive to enhance shedding tears experiences and opportunities internally.
<unk> beaten up in their careers.
Our strategy is to attract people entry and mid level positions develop them and promote from within.
As they grow with us they stay longer with us.
So due to that strategy, we are very proud of having an average standard of 15 years at the executive level.
At the beginning of 2022, we own board at 400, new hires into our training program called next Gen.
Which has been going on for more than two decades, we have long term partnerships with the best universities in Brazil to Foster our program and promote our employer brand.
Our hiring and training machines have been operating at full speed globally to attract and retain the best balance in any industry in order to support our accelerated growth.
We're proud of being nominated with one of the top five great place to work in Brazil in 2021.
A recognition that demonstrates our continuous efforts and commitment to providing an innovative and collaborative environment for our employees Mauro.
Moreover, 90 stopped ranking it as a great place to work in most countries operates and now we add Colombia to that list a recognition received by somewhere in 2021 over.
Over the last two decades, we have been perfecting our robust and distributed delivery model that allows us to provide superior performance to our clients and therefore keep our net revenue retention at a very high level.
Our operating model is based on a combination of on site teams close to our clients with near short Tech talent from cost effective and time zone compatible locations.
Due to our Oregon resilience to our main source of that comment and I'll.
<unk> is ideally located to serve the massive U S market and the largest pool in Americas, just behind the USA, we are yet working to diversify our talent pool.
And those lines, we're very happy to see the recent addition of Colombia to our footprint in operation we are integrating from the sawmill acquisition.
We are committed to building and promoting a diverse inclusive and equitable company.
Focused on creating a better to more around us. It's a long journey that requires an inspiring vision solid actions and a lot of fragmented. We don't just want to do the right thing we want to be a lighthouse for changing society.
Mission is to be a role model for more responsible leadership in the corporate world with a broader vision of what success looks like beyond simply the company's success to a more significant impact on the lives of our people and the communities around US last year, we signed a global come back from the United Nations and we chose <unk>.
Six sustainable development goals that could Mac to our cause and served as a starting point to define our goals and actions.
In the second quarter of 2022, we will release, our ESG report detailing our main initiatives results and ambitions for the future.
Now I will hand, it over to Stanley to comment on our financial results Stanley. Please. Thank you Bruno and good morning, everyone. I hope, you're all doing well I am excited to present the indicators of 2021, another great year of <unk> in Q4, 'twenty one our net revenue was $456 eight.
<unk> is an increase of 72% compared to Q4, <unk> and above our guidance of at least 404 million net revenue organic growth was four 8%, while our net revenue in constant currency grew 69% in the comparable period during the quarter we expand.
Our engagement with our existing clients and we added to our portfolio of 19, new clients with net revenue of above $1 million in the last 12 months going from 75 clients in Q3 to anyone to 94 in Q4 'twenty one.
Our adjusted EBITDA was $101 8 million Reais and increase of 78% compared to Q4 'twenty with an adjusted EBITDA margin of 22, 3% in Q4 2001.
Adjusted net profit reached 47, 7 million Reais and increase of 62% compared to Q4 'twenty.
In 2021, <unk> net revenue was $1 44 billion Reais, an increase of 488 million or 51% year over year net revenue growth in constant currency was 47%.
Our performance was driven by our net revenue retention rate of 128% demonstrating the re currency and the resilience of our business.
Adjusted EBITDA was 324 million Reais 36, 2% higher than in 2020, adjusted EBITDA margin was 22, 4% in 2021 below the level of 24, 9% reported in 2020 when the results benefited from.
Lower costs and expenses during the first year of independent bank.
The adjusted net profit was 157 million Reais and increase of 22, 6% compared to 2020. The adjusted net profit margin was 10, 9% in 2021, a reduction of the level observed in 2020, mainly explained by the increase.
In the cost of services provided and higher expenses with depreciation and amortization and financial expenses.
<unk> continues to deliver solid cash flow in 2021, <unk> generated $214 for minimizing cash from operating activities, 37% higher compared to the amount of $156 9 million Reais recorded in 2020.
Deducting payment for income tax and interest on loans borrowings in lease net cash from operating activities was $132 4 million Reais and increase of 31 4 million in relation to 2020.
<unk> ended December 31, 2021, we think financial net cash position of $145 8 million Reais composed of a gross debt position of $788 7 million and $934 5 million reais in cash cash equivalents and financial investments.
Including the net proceeds of our IPO.
Moving onto our pro forma numbers, our pro forma net revenue for 2021 totaled 162 billion Reais 39, 4% higher than in 2020 and above our guidance of at least $1 6 billion in 2000 to anyone.
In terms of geography, the U S operation continues to be the fastest growing market recording a 50% organic growth in Q4, 'twenty, one compared to Q4 'twenty.
All industry verticals presented significant growth, it's worth mentioning that technology media and telecom and retail and manufacturing what are the verticals that grew faster in terms of revenue in Q4 21 year over year.
In 2021, we improved significantly our revenue breakdown by client we reduced our top one client concentration from 21% in Q4 'twenty to 16% in Q4, 'twenty, one and reduced our top 10 client concentration from 72% to 54% in the <unk>.
Same period.
And as of the first quarter of 'twenty to Soma will contribute to increase our revenue exposure in Europe , any hard currency and exposure to two new verticals automotive and utilities and diversify our client concentration with its portfolio of solid and well known brands.
Now talking about our land and expand strategy. The average net revenue retention rate in the past five years reached 120% and in 2021, our net revenue retention was 128%.
Most of our growth in the upcoming years happens by expanding within current clients, which provides greater visibility of the trends in our business. In addition, we pursue the entry of new logos every quarter to foster future growth in 2021, we successfully increased the number of <unk>.
Clients with annual revenue of about 1 million from 58 in 2022, 9% to <unk> 2021 the number of clients above $5 million and 10 million and also consistently grew over the same period building a solid cohort for the upcoming years. Thanks Stanley.
Now, let's talk about the future.
Looking back to understand how we will move forward.
Founded in 1995 safety has 27 years of consecutive growth and profitability.
From 2006, and emblematic of the year, we launched <unk> in the USA.
<unk> 16 had an organic 10 year CAGR of 30% in revenue.
From 2016 on we introduced three new growth forces.
A domain driven digital strategy is a core component of our offering.
Our <unk> business architecture, fostering a scalable entrepreneur organization of motto and our programmatic approach for M&A as an enduring new capability focused on the flow of selective strategic acquisitions as a result of those moves we are.
Accelerating our annual growth base, 41% in 'twenty to win 51% in 2021 and the guidance at least 56% in 2022 to operate at this new base, we are constantly increasing our investments in hiring training.
And leadership development.
While keeping solid margins and cash conversion rates that said, we can indicate a solid business outlook for Q1, 'twenty two and full year 2022 based on current market conditions, we expect our net revenue in the first quarter of 2022 to be at least.
485 million Brazilian Reais, a 6% to 4% growth compared to our net revenue of 296 million Reais in the first quarter of 2021 for the full year of 2022, we expect our net revenue to be at least two points 25.
Billion, Brazilian Reais, a 56% growth compared to our net revenue of 144 billion Reais in 2021 in.
In addition, we estimate our adjusted EBITDA to be at least 20% for the full year of 2022 .
This guidance for 2020, Q assumes an average exchange rate of five two Brazilian reais to the U S dollar for the full year.
That's what we had for today, we are fully committed to generating value for our advisors investors Society and our people and we are confident we are on the right track.
Thank you all for your interest in <unk> and for attending our call. Today. So we conclude our presentation here and we may now begin the Q&A session.
We will now begin the question and answer session all announced our name.
Once you hear it lists a mute your line and ask your question.
Then when you are done please mute your line.
The first question comes from Ashwin <unk> from Citi Ashwin. Please.
Good morning, everyone and thank you for the presentation.
If I can start with.
A question on the growth and margin cadence that you expect to the year.
Can comment on that and the drivers.
Particularly because.
The.
Comp associated with next time.
And so on.
Thank you rich for you again.
Well.
As we mentioned we are guiding.
Annual growth of 56% for 2022.
Part of this is organic 41 plus percent of this growth is organic and then we have the.
<unk> of Soma.
For this growth.
And in this guidance, we are not considering any additional M&A move.
Even though we have a very strong pipeline and are confident we are going to do.
A few next moves in this space so.
Does this basically.
Following our.
The really amazing opportunity in the market I think digital is more than ever.
In Boston strategic for ever.
Every single company and I think we are really.
Showing our ability to manage the supply side of this equation.
Binding very aggressively.
Again hiring training and leadership development.
With our M&A.
Programmatic M&A strategy.
And in terms of just the cadence of what you expect.
If you're speaking one Q2 Q3 Q4 Q okay.
You may have.
How do you expect that to Lady over time, both for margins.
Yes, I think that in terms of revenue growth.
We probably will have a very similar pace quarter over quarter, along the year in.
In terms of margins there is some seasonality.
Especially because of.
Salary inflations normally.
A lot of <unk>.
Costs in Brazil seller Carsten.
We have normally adjustment of salaries.
In the beginning of the year January and our price adjustments.
<unk> are designed to occur along the year. So normally first half is more.
And in terms of March than the second half.
Everything as we said we are confident we are guiding to.
20% plus EBITDA, along the full year.
Okay.
If I can ask just one quick question because we get this a lot.
Because of the geopolitical situation you mentioned.
Ukraine, and Russia has been.
I know you have no direct exposure there but.
Are you seeing maybe more opportunity as clients, who may have done some work in those areas, maybe turn to you, but more work or do you see maybe on the margin side because.
Those companies hiring in other regions are you seeing any pressure.
On wage inflation.
Okay.
As you mentioned since it does not have the office people or any meaningful client exposure in the region.
Certainly.
This is an event.
Creates an imbalance globally.
We are closely monitoring the developments.
Reason.
Really in order to prepare to adapt.
Our south.
More important is support our clients as needed but at this time it is difficult to make any further projections or expectations. We do hope this conflict will be over soon.
And we are prepared to support our clients as needed.
Thank you for that.
Thank you Asher and our next question comes from <unk>.
From Goldman Sachs Diego please.
Yes. Good morning, everyone. Thank you for taking my question, maybe just a quick follow up on shrink question. If I would try to breach your revenue growth expected in 2022, considering your MRI or new clients and maybe M&A, how should we be thinking about it and the simple margin. So maybe just.
Trying to understand what would be your margins without soma, because if I'm not mistaken soma.
It comes with lower margins.
<unk>. So this is the first question.
Sure. Thank you.
First our growth profile is basically 41 was organic.
And then.
A little more than 10% coming from some acquisition again, we are not consider further M&A.
Growth.
It's concentrated in the <unk>.
Any markets, where we are where we establish U S, Brazil and now U K.
And we see foresee a lot of growth coming from your couponing, our historical growth.
In the U S.
Brazil.
The second in terms of margins you are right.
<unk> an hour.
M&A targets are operating.
Lower levels of margins the Mci.
And so basically but there is a small impact.
If you consider that some of us.
It's a company with very good margins by the way in the high teens EBITDA high teens, but.
Less than 10% of our business and we see also a very good opportunity to gradually improve.
Margins because of the current.
Closure.
Near shore is only 20%.
Colombia for that and we believe that gradually as we grow we can increase having <unk> global on near shore capability.
To increase their margins so we foresee that.
Basically.
Our strategy and Thats that will.
We can expect.
Our M&A strategy move.
Move on we expect some volatility.
The bottom line because of this is part.
Part of the game, we are at <unk> ability to increase margins to the.
The companies we are acquiring.
That's great. Thank you.
And I guess looking to your net revenue retention of 128% if I'm not mistaken. This is this implies a great increase relative to 2020.
So can you just maybe give some colors on what is driving such improvement maybe.
New applications, New solutions, New services, just wanted to understand.
Where the incremental demand is coming.
Sure historically, our net revenue retention was around 120% where senior maxillary Asian offers.
<unk>.
It's basically more demand coming from our portfolio of appliances.
Especially our global companies are really vastly increasing the reversal unusual there is plenty of opportunity.
Already.
Claude data.
Really improve customer experience.
Using more aggressively technology.
To support their customers and that drives more demand and I think we have a very.
Strong positioning and reputation with them.
And basically that help us to really not only increased the occurring engagements, but navigate through new business units and geographies with our portfolio and that's driving this.
New lateral off net rotation that is very important to guarantee this new base of growth. So we our strategy continues to be a lengthy expand where the short term.
This year and next year growth will depend a lot on our ability to increase our position in revenues in our <unk> portfolio, while having the discipline of adding new logos new clients every single quarter that will guarantee future long term growth. That's what we have been doing.
And to go produce new base of 40 plus percent of organic growth, we definitely need a higher metro irritation.
We are happy we are.
Being able to do that.
Perfect. Thank you.
Tanker Jabil. Our next question comes from Puneet <unk> from.
From JP Morgan.
Please.
Hey, Thanks for taking my question.
Appreciating versus the U S. Dollar are you seeing any impact on pricing.
Are there precedent based or U S based claims and what margin implications from this currency move sure.
Sure.
Tim ill take this one.
Sure.
Of course, there is no implication for the part of the business that are in Brazil.
The same occurs applications for.
Our survey in the U S market from from Brazil.
Of course, there is some short term implications in margins.
Our experience.
Been operating for more than 20 years.
So.
And mid to long term.
All of them.
FX ended up.
<unk> more than enough the inflation of the local market.
And.
And that's kind of the result.
But we can expect some volatility in the short term yes.
Okay.
And then.
How much visibility you have on two.
2022 revenue guidance.
40% organic growth.
And excuse me legacy already mentioned this how much is so new contribution going to be this year.
Produce.
Number really 41 plus percent is organic and then we have the rest for the 56 has some contribution.
There was enough visibility for the expand part that is basically.
The majority of this growth we have full visibility by now.
And I think there is I think the part that we have less certain to us.
The landmark but.
The market is the demand is really high we have been able to really onboard new clients every single quarter, good number different industries and geographies. So I know the visibility.
I would say is full and I think that is.
As always in this industry and for <unk> I think the complexity.
As the way as the supply side and I think we are doing an amazing job and the hiring front trainee our people developing our leadership to be able to cope with the demand.
And quick clarification, just to make sure organic growth calculation does not include incremental contribution from the ex China.
Yes, Dexter was we and the integration of next.
November so now as we.
We integrated <unk> for new growth units Nowaday, our operating in our platform. So it's now about organic growth.
By now we have 26 growth units.
And we are fostering growth.
One of them so.
Basically we are counting.
For 2022 at <unk> as a platform.
Growing 41% plus Soma.
As a new grill for unit growing in a very good base that will contribute 456% year over year.
<unk> group.
Understood. Thank you.
Thank you we.
Have a question here I.
E mail from Arturo Langa from <unk> BBA.
Could you please provide color into the base and climate for Hirings, how are you seeing wage inflation in our youll being able to pass on this to our clients.
Okay take this one.
Thank you for your question are true.
Regarding your first question about hiring.
In 2021.
More than $2 3000.
People, 73%.
Growth year over year.
Half of that was the incorporation of extra.
And the other half for us.
Our ability to go to market and higher.
As we are accelerating organic growth.
We are also investing more in the support are in training and leadership development teams.
As you know the market for talent continues to be very competitive.
But we believe we have a very strong value proposition to offer.
To this environment.
The professionals in this industry, which is always focused on offering them a place where they can develop their careers the fastest.
This has been very compelling for.
For this market.
It's important to highlight that our strategy is focused on attracting talent on your stages of their careers. So not in the kind of last minute.
Market for senior people.
Just for example, just onboard of last month 400 training, so we will develop and prepare.
To support future growth.
So overall our strategy is designed for the long term.
For Us 2022.
Years ago, when we started the development of new leaders into new positions.
We've taken the new client engagements in the growth that we're expecting in 'twenty. Please.
So this consistency is what actually guarantees the quality of our services by consequence.
Guarantee of the hybrid currency.
Business of our clients.
I think just to finalize that point, we're very comfortable that we are also operating in very big talent pools Andrew.
<unk> of course, which is the biggest one.
In Brazil, which is the second biggest in Latin America zone.
We are.
Kind of a diversifying getting into Colombia, which is an important.
Latin American market that we just got into.
That's somewhat position.
Second part of the question is about inflation, we covered a little bit.
Maybe just.
We're seeing happening.
The board right.
Sure.
The agent wage inflation.
But thats happening more on the developed countries, where the shortage of Dr. Pellets is higher.
And in emerging countries.
By the end of the day will create.
So, let's do <unk> that.
That will help us do the price adjustments with our clients along the way.
Been very successful in doing this year over year.
Based on our close relationship and the value we create.
Our clients.
Thank you Bruno.
Our next question comes from Raimo <unk> from Clarkson capital.
Considering the Soma acquisition, how should we expect the growth breakdown among the different regions should we expect the growth base in Europe similar than in the U S.
And regarding the 2022 guidance how much of the revenue and EBITDA comes from Soma.
Well I think we are ready to talk about the contribution of sawmill in terms of regions.
I think the acquisition of sawmill was.
Very important move to really.
Sure.
Europe , especially UK as a main source of growth for CMT Europe is the second largest market in the world for digital.
And we have now an amazing platform reputation.
Skills.
Strategic.
Strategy skills design skills and of course full stack technology skills to operate there so.
You are right, we are really foresee a very aggressive growth.
As we have been doing in the U S.
And he says.
So that concludes the <unk>.
Questions will have from EMEA or like to extend year to see some of the analyst Ashwin Diego when I would like to do a follow up call.
Though up question.
Okay.
Okay.
Well.
With that thank you all with that sorry, Eduardo Yes go ahead J apologist, yes, I was trying to mute my phone. So just a quick question can you just comment on the attrition rate.
For 2021, and how this compared to 2020 I know that 2020 was.
A year, a very different year right because of Covid, but just wanted to understand what are the trends there. Thank you.
Okay.
I.
I can take that one bruno's unmoved.
It kind of.
Can you think of it as well.
Sure.
We have $15 six.
<unk> attrition and.
Mainly we see two effects that.
Of course, we have the market conditions current market conditions.
If you compare 2021 to 2000 22020, we had this.
The first year of the Pandemics.
We had a.
Right.
The higher rate of retention at that time in terms of.
In certainties of the market et cetera, and then later down the road, we had the opposite effect.
We played very well in the field as we continue to be a reference in the market.
Even in comparing to our peers.
And of course, we have this.
The acquisition of <unk> that came in with a higher attrition, but already.
We incorporated as mentioned as Susan mentioned and we are driving their attrition.
Attrition.
Sure.
Lower levels, let's say so.
We will compare this higher attrition comparing to 2020, most the two biggest factors those two that I mentioned.
That's helpful. Thank you Jacob just adding I think theres. Another kpis very importantly that we are monitoring carefully our leadership in duration.
2021.
Only three 6%.
The allowance relates continued projected consistent growth.
Net revenue rotation hiring I think you are right I think thats it.
It's important to not look only the overall attrition, but the leadership attrition at the end of the day leadership is the main bottleneck for growth in this space.
It's amazing thank you.
Sure.
Well that concludes our Q&A session I will now pass the SASSA to proceed with his closing remarks.
Okay.
Sure.
Thank you Eduardo steadily Bruno.
For joining us.
Joining me today again, thank you all the analysts all the questions.
Went to really.
I think at this moment.
All <unk> clients investors and partners for their continued support.
Continue to be very confident we will have another great year ahead.
Okay.
I expect you long stay safe and well and looking forward.
See you in a couple of months. Thank you.
Thank you all.
<unk>.
Thank you.
Okay.
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[music].
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[music].
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