Q1 2024 CI&T Inc Earnings Call

May 22, 2024

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Speaker Change: [music] technology is more than a device system what industry.

Technology is built by people for people.

Speaker Change: Technology is built by people who are people.

So for people, who desires and needs and ambition.

Speaker Change: So for people, who desires and needs and ambitions.

Speaker Change: By our people who are talented.

Speaker Change: By our people who are talented curious creations.

Speaker Change: Serious creative and diverse.

Speaker Change: The diverse power.

Speaker Change: People use innovative strategy design and engineering to offer end to end solutions that help companies to quickly transform and scale. The operations later today, while we create AI powered solutions, all we really want and what motivate us is.

Speaker Change: How people use the innovative strategy design and engineering to offer end to end solutions that help companies to quickly transform and scale their operations globally, while we create AI powered solutions, all we really want and what motivate us is.

Speaker Change: Tomorrow.

P. I N C. We've reached and build taxes make there tomorrow.

Speaker Change: P. I N C. We've reached and build taxes make there tomorrow.

Eduardo Galvao: While we create AI-powered solutions, all we really want, and what motivates us, is to make their tomorrow. CI&T. We breathe and build tech to make their tomorrow. Good morning. Welcome to the Ci&T earnings call for the first quarter of 2024. I am Eduardo Galvao, Head of Investor Relations at Ci&T. BOOM.

Eduardo: Good morning, welcome to <unk> earnings call for the first quarter of 2024, I am Eduardo go phone head of Investor Relations at <unk>.

Speaker Change: Good morning, welcome to <unk> earnings call for the first quarter of 2024, I am Eduardo go phone head of Investor Relations at <unk>.

Eduardo Galvao: Good morning. Welcome to the Ci&T earnings call for the first quarter of 2024. I am Eduardo Galvao, Head of Investor Relations at Ci&T.

Eduardo: Okay.

Speaker Change: Okay.

Eduardo: Okay.

Speaker Change: [music].

Eduardo: [music].

Eduardo: Yeah.

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Eduardo: Okay.

Eduardo: Yeah.

Speaker Change: [music] technology is more than a device system for industry.

Speaker Change: Technology is built by people for people.

Speaker Change: So for people, who desires and needs and ambition.

Speaker Change: <unk> people who are talented.

Speaker Change: By our people who are talented.

Speaker Change: Serious creations.

Speaker Change: Creative and diverse.

Speaker Change: The diverse.

Speaker Change: Now what people use innovative strategy design and engineering to offer end to end solutions that help companies to quickly transform and scale their operations way today, while we create AI powered solutions, all we really want and what motivate us is.

Speaker Change: Now what people use innovative strategy design and engineering to offer end to end solutions that help companies to quickly transform and scale their operations by today, while we create AI powered solutions, all we really want and what motivate us is good.

Eduardo Galvao: While we create AI-powered solutions, all we really want, and what motivates us, is to make their tomorrow.

Speaker Change: I should add tomorrow.

Speaker Change: M&A should add tomorrow.

Speaker Change: P. I N T. We've reached and build taxes make there tomorrow.

Speaker Change: P I N T with brief and build taxes make there tomorrow.

Eduardo <unk>: Good morning, welcome to <unk> earnings call for the first quarter of 2024, I am Eduardo <unk> head of Investor Relations at <unk> with me on today's call are SaaS are gone founder and CEO, We don't look at Cod.

Speaker Change: Good morning, welcome to <unk> earnings call for the first quarter of 2024, I am Eduardo go phone head of Investor Relations at <unk> with me on today's call are SaaS are gone founder and CEO Bruno get caught.

Eduardo Galvao: Good morning. Welcome to the Ci&T earnings call for the first quarter of 2024. I am Eduardo Galvao, head of investor relations at Ci&T. With me on today's call are Cesar Gon, founder and CEO, Bruno Guicardi, founder and president of North America and Europe, and Stanley Rodrigues, our CFO. This event is being recorded, and all participants will be in a listen-only mode during the company's

Eduardo Galvao: After that, there will be a Q&A session. If you'd like to submit a question, please send it via email to investors at cint.com. The presentation is available on the company's investor relations website, and the replay will be available shortly after the event is concluded. Some of the matters we'll discuss on this call, including our expected business outlook, are forward-looking statements. They are subject to known and unknown risks and uncertainties, which could cause actual results to differ from those expressed on this call.

Speaker Change: <unk> founder and President for North America, and Europe, and steadily reduce our CFO.

Speaker Change: <unk> founder and President for North America, and Europe, and Stanley <unk> our CFO.

Speaker Change: This event is being recorded and all participants will be in a listen only mode. During the companys presentation.

Speaker Change: After that there'll be a Q&A session, if you'd like to submit a question. Please send it via E mail to investors at <unk> Dot com.

Speaker Change: That there will be a Q&A session, if you'd like to submit a question. Please send it via E mail to investors at <unk> Dot com.

Speaker Change: The presentation is available on the company's Investor Relations website, and a replay will be available shortly after the event is concluded.

Speaker Change: Some of the matters, we'll discuss on this call, including our expected business outlook are forward looking statements. They are subject to known and unknown risks and uncertainties, which could cause actual results to differ from those expressed on this call. We caution you not to place undue reliance on those forward looking state.

Eduardo Galvao: We caution you not to place undue reliance on those forward-looking statements, as they're valid only as of the date when made. During this presentation, we'll comment on certain non-IFRS financial measures to evaluate our business. Please refer to the reconciliation tables of non-IFRS measures in the appendix for more details.

Speaker Change: <unk> as 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.

Speaker Change: <unk> as they are valid only as of the date when made.

Speaker Change: 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.

SASSA: Our agenda for today includes an overview of our quarterly highlights followed by some of our business cases, we will then talk about our people and our financial results at this time I'll pass it onto <unk> gone to begin our presentation SASSA.

Speaker Change: Our agenda for today includes an overview of our quarterly highlights followed by some of our business cases, we will then talk about our people and our financial results at this time I'll pass it onto SaaS had gone to begin our presentation SASSA.

Eduardo Galvao: Our agenda for today includes an overview of our quarterly highlights, followed by some of our business cases. We'll then talk about our people and our financial results. At this time, I'll pass the baton on to Cesar Gon to begin our presentation. Thank you, Eduardo, and a warm welcome to everyone joining us today.

SASSA: Thank you Eduardo and a warm welcome to everyone joining us today.

Speaker Change: Thank you Eduardo and a warm welcome to everyone joining us today.

SASSA: Our first quarter of 2024 has been transformative it marks one year since we started the <unk> powered by AI initiatives to transform <unk> into an AI first company and capitalize on the amaze opportunity of this next chapter of the digital Revolution.

Speaker Change: Our first quarter of 2024 has been transformative it marks one year since we started the <unk> powered by AI initiatives to transform <unk> into an AI first company and capitalize on the amaze opportunity of this next chapter of the digital Revolution.

Cesar Nivaldo Gon: Our first quarter of 2024 has been transformative. It marks one year since we started the Ci&T Powered by AI initiative to transform Ci&T into an AI-first company and capitalize on the amazing opportunities of this next chapter of the digital revolution. Over this year, AI has become integral to our operations, enhancing our capabilities and allowing us to deliver more value to our community. In this context, Bruno will soon share impressive numbers on how our teams are adopting Ci&T Flow, our AI platform for hyper-digital.

SASSA: Over this year AI has become integral to our operations enhancing our capabilities and allowing us to deliver more value to our clients.

Speaker Change: Over this year AI has become integral to our operations enhancing our capabilities and allowing us to deliver more value to our clients.

SASSA: In this context Bruno will soon share impressive numbers on how our teams are adopting <unk> flow.

Speaker Change: In this context Bruno will soon share impressive numbers on how our teams are adopting <unk> flow.

Bruno: I plan to farm for our hybrid digital as we reshape our market positioning and offerings around AI. We are also reinventing key internal processes, including sales HR branding and several other functions to fully leverage the potential of AI, let's take sales and <unk>.

Speaker Change: I plan to farm for our hybrid digital as we reshape our market positioning and offerings around AI. We are also reinventing Keene Turner processes, including sales HR branding and several other functions to fully leverage the potential of AI, let's take sales and <unk>.

Cesar Nivaldo Gon: As we reshape our market positioning and offerings around AI, we are also reinventing key internal processes, including sales, HR, branding, and several other functions to fully leverage the potential of AI. Let's take sales as an example.

Speaker Change: Simple with two decades of experience in selling and delivering complex digital solutions. We are excited to share advancements in our go to haggle approach.

Speaker Change: Simple with two decades of experience in selling and delivering complex digital solutions. We are excited to share advancements in our go to wag and approach.

Cesar Nivaldo Gon: With three decades of experience in selling and delivering complex digital solutions, we are excited to share advancements in our go-to-market approach. To drive efficiency and growth, we established the AI Growth Machine, a team of industry experts, solution strategists, and AI specialists. This evolution of our global sales organization has two main goals: using AI to be faster and more precise in understanding our clients' needs and being radically more effective in proposing unique solutions that maximize results for our clients.

Speaker Change: To drive efficiency and growth, we established the AI growth machine a team of industry experts solution strategists NII specialists. This evolution of our global sales organization has two main goals using AI to be faster and more precisely in understanding our clients.

Speaker Change: To drive efficiency and growth, we establish the AI growth machine a team of industry experts solution strategists Nai specialists. This evolution of our global sales organization has two main goals using AI to be faster and more precisely in understanding our clients' needs.

Speaker Change: Meats and being radically more effective in proposing unique solutions that maximize results for our clients.

Speaker Change: Amongst several positive outcomes, we are proud to announce a particularly significant what we signed one of the largest contracts in our history with a leading global automotive player.

Speaker Change: Amongst several positive outcomes, we are proud to announce a particularly significant to what we signed one of the largest contracts in our history with a leading global automotive player.

Cesar Nivaldo Gon: Among several positive outcomes, we are proud to announce a particularly significant one. We signed one of the largest contracts in our history with a leading global automotive player. We became its digital agents of record in the U.S., securing a multimillion-dollar contract for at least three years. This major win was achieved after a very competitive RFP process involving all the major players in our industry.

Speaker Change: We became its digital agency of record in the U S. Securing a multimillion dollar contract for at least three years. This major win was achieved after a very competitive RFP process involving all major players in our industry.

We became its digital agency of record in the U S. Securing a multimillion dollar contract for at least three years. This major win was achieved after a very competitive RFP process involving all major players in our industry.

Speaker Change: I believe its highlights our exceptional capabilities and our innovative AI approach to meeting clients' needs in a unique way.

Speaker Change: I believe it highlights our exceptional capabilities and our innovative AI approach to meeting clients' needs in a unique way.

Cesar Nivaldo Gon: I believe it highlights our exceptional capabilities and our innovative AI approach to meeting clients' needs in a unique way. Now, let me present our quarterly financial highlights. In the first quarter of 2024, our net revenue totaled R$523.5 million, a 20 basis points increase compared to the fourth quarter of 2023 and 70 basis points above our guidance. Although it's a slight increase, it represents an important milestone as it resumes our growth trajectory, which we foresee accelerating in the following quarter.

Speaker Change: Now, let me present, our quarterly financial highlights in the first quarter of 'twenty 'twenty four are in metal revenue totaled $523 5 million Reais 20 basis points increase compared to the fourth quarter of 2023, and 70 basis points above our.

Speaker Change: Now, let me present, our quarterly financial highlights in the first quarter of 2024 are in metal revenue totaled $523 5 million Reais 20 basis points increase compared to the fourth quarter of 2023, and 70 basis points above our.

Cesar Nivaldo Gon: Revenue from our top 10 clients grew 7.9% sequentially, signaling our ability to strengthen relationships with key engagements and expand wallet share among them. Additionally, in the fourth quarter of 2024, leveraging our new AI growth machine, we successfully onboarded 22 new logos, including admired global brands, representing substantial opportunities for future expansion. We ended the quarter with an adjusted EBITDA margin of 16.21%, as planned. Our EBITDA margin is expected to improve throughout the year according to the seasonality of our business.

Guidance.

Speaker Change: Our guidance.

Speaker Change: Although it is life increase it represents an important milestone as it resumes our growth trajectory, which we foresee accelerating in the following quarters.

Speaker Change: Although it is life increase it represents an important milestone as it resumes our growth trajectory, which we foresee accelerating in the following quarters Rhem.

Speaker Change: Revenue from our top 10 clients grew seven 9% sequentially timely our ability to a strengthening relationships with key engagements and expanding wallet share among them.

Speaker Change: Revenue from our top 10 clients grew seven 9% sequentially timely our ability to our strengthening relationships with key engagements and expanding wallet share among them.

Speaker Change: Additionally, in the first quarter of 'twenty 'twenty four leveraging our new way high growth machine, we successfully awarded 22, new logos, including admired global brands, representing substantial opportunities for future expansion.

Speaker Change: Additionally, in the first quarter of 'twenty 'twenty four leveraging our new AI growth machine, we successfully awarded 22, new logos, including admired global brands, representing substantial opportunities for future expansion.

Speaker Change: We ended the quarter with an adjusted EBITDA margin of 16, 1% as planned.

Speaker Change: Our EBITDA margin is expected to improve throughout a year. According to the seasonality of our business.

Speaker Change: Finally in the first quarter, we generated 130 million reais in cash from operating activities the strongest cash generation in the first quarter since our IPO.

Cesar Nivaldo Gon: Finally, in the fourth quarter, we generated R$130 million in cash from operating activities, the strongest cash generation in the first quarter since our IPO. Now, let's explore some concrete examples of how we are creating value for our clients and revolutionizing our offerings through the power of AI.

Speaker Change: Now, let's explore some concrete examples of how we are creating value for our clients and revolutionizing our offerings through the power of AI.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Uh huh.

[music] the collaboration between <unk>, one of the largest educational organizations in Brazil, and C. I N T marks a milestone in the education sector.

Speaker Change: The collaboration between <unk>, one of the largest educational organizations in Brazil, and C. I N T marks a milestone in the education sector.

Cesar Nivaldo Gon: The collaboration between EDUCS, one of the largest educational organizations in Brazil, and Ci&T marks a milestone in the education sector. Together, these entities are paving the way to a future where artificial intelligence is not just a learning tool but a fundamental pillar in creating enriching and personalized educational experiences. Modern education faces the challenge of integrating emerging technologies to enhance the learning experience. EDUCS needed a robust reference architecture that could effectively and innovatively incorporate AI into its educational solutions while maintaining practicality and efficiency.

Speaker Change: Together these entities are paving the way to a future where artificial intelligence is not just a learning tool, but a fundamental pillar and creating enriching and personalized educational experiences.

Speaker Change: Modern education faces the challenge of integrating emerging technologies to enhance the learning experience.

Speaker Change: It looks needed a robust reference architecture that could effectively an innovative lee incorporate AI into its educational solutions, while maintaining practicality inefficiency.

Speaker Change: It looks needed a robust reference architecture, they could effectively an innovative we incorporate AI into its educational solutions, while maintaining practicality inefficiency.

Speaker Change: C. I N T responded strategically developing a generative AI strategic roadmap, combining evolutionary engineering and innovative product strategies.

Cesar Nivaldo Gon: Ci&T responded strategically, developing a generative AI strategic roadmap combining evolutionary engineering and innovative product strategies. The partnership has generated innovative experiments in AI, providing new growth opportunities and generating significant savings. Through a well-crafted strategy and focused execution, education is becoming more accessible, personalized, and effective, preparing students for the future and solidifying EDUCS's role as a pioneer in the Brazilian educational sector.

The partnership has generated innovative experiments in AI, providing new growth opportunities and generating significant savings.

Speaker Change: Yes.

Speaker Change: Pete.

Speaker Change: Yes.

Speaker Change: Okay.

Okay.

Speaker Change: Okay.

Okay.

Through a well crafted strategy and focused execution education is becoming more accessible personalized and effective preparing students for the future and solidifying <unk> role as a pioneer in the Brazilian educational sector.

Speaker Change: Through a well crafted strategy and focused execution education is becoming more accessible personalized and effective preparing students for the future and solidifying <unk> role as a pioneer in the Brazilian educational sector.

Speaker Change:

Speaker Change: Okay.

Speaker Change: Keith.

Speaker Change: Sure.

Speaker Change: Some Saudi is an innovative healthcare provider in Brazil.

Cesar Nivaldo Gon: Sami Sawati is an innovative health care provider in Brazil. The company was facing a crucial challenge optimizing its care coordination journey by eliminating administration work. The solution? Partnering with Google, Sami Sawati implemented an advanced generative AI system with Ci&T, supported by the robust technologies of Google Cloud Run, Vertex, and BigQuery. This innovation brought a qualitative leap; health care coordinators operate more efficiently, and customer satisfaction has reached new heights. The solution has saved 900 hours monthly on administrative issues, and the expectation is that each care coordinator will assist 50% more clients per day after the solution. We've turned a challenge into a glorious opportunity, proving that technology and human care can go hand in hand.

Keith: The company was facing a crucial challenge optimizing a care coordination journey by eliminating administration works.

Speaker Change: The company was facing a crucial challenge optimizing a care coordination journey by eliminating administration works.

Keith: Solution.

Speaker Change: <unk>.

Speaker Change: Partnering with Google and some is already implemented and advanced generative AI system with the IMT supported by the robust technologies of Google Cloud ran protects and big query.

Speaker Change: Entering with coupons and some is already implemented and advanced generative AI system with CMT supported by the robust technologies of Google Cloud run protects and big query.

Speaker Change: This innovation product qualitatively health care coordinators operate more efficiently and customer satisfaction has reached new heights.

Speaker Change: The solution has saved 900 hours monthly with administrative issues and the expectation is that each care coordinator will it says 50% more clients per day after the solution.

Speaker Change: The solution has saved 900 hours monthly with administrative issues.

Speaker Change: And the expectation is that each care coordinator will I said, 50% more clients per day after the solution.

Speaker Change: We've turned a challenge into a glorious opportunity proving that technology and human care can go hand in hand.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Bulla: In an increasingly digital world Bulla, a fintech specializing in flexible credit and benefits has partnered with <unk> to provide essential financial services there.

In an increasingly digital world Bulla, a fintech specializing in flexible credit and benefits has partnered with <unk> to provide essential financial services.

Cesar Nivaldo Gon: In an increasingly digital world, BOLA, a fintech specializing in flexible credit and benefits, has partnered with Ci&T to provide essential financial services. Their mission?

Speaker Change: <unk> mission.

Speaker Change: Their mission.

Speaker Change: To revolutionize digital financial inclusion using generative AI technology.

Cesar Nivaldo Gon: To revolutionize digital financial inclusion using generative AI technology. By leveraging Ci&T's Gen-AI platform, FLO, Bola aims to accelerate software development and deployment, doubling the velocity of code generation, and reducing testing time by one-third. Bola's journey toward digital financial inclusion has begun, powered by innovation and human and AI collaboration. Welcome to our latest update.

Speaker Change: To revolutionize digital financial inclusion using generative AI technology.

Speaker Change: By leveraging <unk> Gen AI platform flow controller aims to accelerate software development and deployment doubling the velocity of cogeneration and reducing testing time by one third.

Speaker Change: By leveraging <unk> Gen AI platform flow controller aimed to accelerate software development and deployment doubling the velocity of cogeneration and reducing testing time by one third.

Speaker Change: Okay.

Hum.

Speaker Change: Hum.

No.

Speaker Change: Bullets journey towards digital financial inclusion has begun powered by innovation and human and AI collaborations.

Speaker Change: Well this journey towards digital financial inclusion has begun powered by innovation and human and AI collaborations.

Speaker Change: I don't know.

Speaker Change: Uh huh.

Okay.

Speaker Change: Yes.

Speaker Change: Yeah.

Yeah.

Speaker Change: Okay.

Speaker Change: Welcome to our latest update we have gathered the most recent information and insights from our leadership team to share with you.

Cesar Nivaldo Gon: We have gathered the most recent information and insights from our leadership team to share with you. Ci&T showcased its innovative solutions to advance the future of healthcare and life sciences at the HIMSS24 Global Health Conference in Orlando, Florida. In collaboration with Mercy Personal Physicians and Bayer, Ci&T hosted a main stage session exploring how AI could help orchestrate a seamless health ecosystem. Ci&T also showcased industry-leading solutions for doctors and patients that enhance and streamline the user experience. Solutions included immersive solutions for HCP training, augmented patient triage, and HCP accelerators.

Speaker Change: Yes.

Speaker Change: Okay.

IMT representative: See IMT showcased its innovative solutions to advance the future of health care and life Sciences at the H I M. S. As 24 Global Health Conference in Orlando, Florida.

C I N T showcased its innovative solutions to advance the future of health care and life Sciences at the H I M. S. As 24 Global Health Conference in Orlando, Florida.

Speaker Change: In collaboration with Mercy personal physicians and Bayer <unk> hosted a main stage session exploring how AI can help orchestrate a seamless health ecosystem.

IMT representative: In collaboration with Mercy personal physicians and bear the IMT hosted a main stage session exploring how AI can help orchestrate a seamless health ecosystem.

Speaker Change: <unk> also showcased industry, leading solutions for doctors and patients that enhance and streamline user experience.

Speaker Change: <unk> solutions included immersive solutions for HCP training augmented patient triage and HCP accelerators.

Speaker Change: Yes.

Okay.

Speaker Change: Okay.

Speaker Change:

Speaker Change: Okay.

Speaker Change: In 2020 for the Web Summit Rio took center stage uniting over 35000 people at the Rio de Janeiro.

Cesar Nivaldo Gon: In 2024, the Web Summit Rio took center stage, uniting over 35,000 people in Rio de Janeiro. Among the thought leaders and innovators, Ci&T drove the conversation on the transformative power of AI in the corporate world. From thought-provoking discussions to groundbreaking insights, Ci&T's impact was felt across the event. From exploring AI's role in driving efficiency to navigating the generative AI revolution, Ci&T's top leaders and the CEO shed light on the vast opportunities and challenges in the new AI world.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Among the thought leaders and innovators in <unk> drove the conversation on the transformative power of AI in the corporate World.

Speaker Change: From thought provoking discussions to groundbreaking insights.

Speaker Change: Some thought provoking discussions to groundbreaking insights.

Speaker Change: <unk> impact was felt across the event.

From exploring <unk> role in driving efficiency to navigating the generative AI Revolution C. I N T top leaders and the CEO shed light on the vast opportunities and challenges in the new AI World.

Speaker Change: From exploring <unk> role in driving efficiency to navigating the generative AI Revolution C. I N T top leaders and the CEO shed light on the vast opportunities and challenges in the new AI World.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: At the Gartner data and analytics summit in Sao Paulo, Brazil C. I N T unveiled groundbreaking solutions that seamlessly blend advanced knowledge artificial intelligence and data to address evolving landscape as a strategic partner for growth C. I N T illustrated how to Tran.

Speaker Change: At the Gartner data and analytics summit in Sao Paulo, Brazil C. I N T unveiled groundbreaking solutions that seamlessly blend advanced knowledge artificial intelligence and data to address evolving landscapes as a strategic partner for growth C. I N T illustrated how to translate.

Cesar Nivaldo Gon: At the Gartner Data and Analytics Summit in Sao Paulo, Brazil, Ci&T unveiled groundbreaking solutions that seamlessly blend advanced knowledge, artificial intelligence, and data to address evolving landscapes. As a strategic partner for growth, Ci&T illustrated how to translate vast data into actionable business strategies. Ci&T proved to be a transformative force at the summit, emphasizing that collaboration between humans and AI is the key to unlocking the potential of data.

Speaker Change: <unk> vast data into actionable business strategies.

Vast data into actionable business strategies.

Speaker Change: C. I N T proved to be a transformative force at the Gartner data and analytics summit, emphasizing that collaboration between humans and AI is the key to unlocking the potential of data.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: [music].

Okay.

Speaker Change: Okay.

Speaker Change: In 2024 C. I N T was recognized by the Everest group for its excellence in digital transformation and was named in the peak matrix for 2024, and CPG and retail.

Speaker Change: In 2024, <unk> was recognized by the Everest group for its excellence in digital transformation and was named in the peak matrix for 2024, and CPG and retail.

Cesar Nivaldo Gon: In 2024, Ci&T was recognized by the Everest Group for its excellence in digital transformation and was named in the Peak Matrix for 2024 in CPG and retail. In April, a moment of great pride for all of us, Ci&T was distinguished by the Everest Group as a major contender in not just one, but two of their reports, the Application Transformation Services Peak Matrix assessment for both North America and Europe. The Peak Matrix is a proprietary framework that assesses the market success and overall capabilities of service providers based on key parameters such as performance, experience, ability, and knowledge. This recognition shows how Ci&T continues to raise the bar in hyper-efficiency and reaffirms its commitment to innovation and excellence.

Speaker Change: Yes.

Speaker Change: In April in a moment of great pride for all of US team distinguished by the Everest group as a major contender in not just one but two of their report the application transformation services peak matrix assessment for both North America and Europe.

Speaker Change: In April in a moment of great pride for all of us.

Speaker Change: He was distinguished by the Everest group as a major contender in not just one but two of their report the application transformation services peak matrix assessment for both North America and Europe.

Speaker Change: The peak matrix is a proprietary framework that assesses the market success and overall capabilities of service providers based on key parameters, such as performance experiences ability and knowledge.

Speaker Change: This recognition shows how <unk> continues to raise the bar and hyper efficiency and reaffirms its commitment to innovation and excellence.

Speaker Change: Okay.

Yes.

Speaker Change: Yes.

At the Visionary Award 2024 C. I N T is a finalist in the learning innovator of the year category.

Speaker Change: At the visionary Awards 2024 C. I N T is a finalist in the learning innovator of the year category.

Cesar Nivaldo Gon: At the Visionary Awards 2024, Ci&T is a finalist in the Learning Innovator of the Year category. The company's commitment to continuous education through Ci&T University reflects its culture of promoting team growth and aligning skills with market demands. Ci&T has implemented a robust strategy for skill mapping and professional development, including the creation of power houses, communities of experts, and the integration of advanced technology and artificial intelligence at Ci&T University. Ci&T's learning strategy ensures the maintenance of its leadership in innovation and professional development.

Speaker Change: The company's commitment to continuous education cin to University reflects its culture of promoting team growth and aligning skills with market demand.

Speaker Change: The company's commitment to continuous education through <unk> University reflects its culture of promoting teen growth and aligning skills with market demand.

Speaker Change: <unk> has implemented a robust strategy for skill mapping and professional development, including the creation of powerhouses communities of experts and the integration of advanced technology and artificial intelligence at <unk> University.

Speaker Change: <unk> learning strategy ensures the maintenance of its leadership in innovation and professional development.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Since the rise of cloud computing.

Cesar Nivaldo Gon: Since the rise of cloud computing, Ci&T, in strategic collaboration with Salesforce, has been reinventing the technological landscape for a decade through innovative and efficient solutions. This strategic partnership, which spans sales support to delivering solutions across multiple clouds, has been a milestone in development and innovation in various areas, optimizing processes and creating valuable customer experiences. Ci&T has accumulated numerous certifications and qualified professionals, reflecting the partnership's success with Salesforce and the ability to deliver impactful results. The benefits of the union of these two brands are clear. Clients and companies have seen their businesses transformed, customer satisfaction elevated, and operational efficiency enhanced by automation and advanced data technologies.

Speaker Change: I N T in strategic collaboration with Salesforce has been reinventing the technological landscape for a decade through innovative and efficient solutions.

Speaker Change: T in strategic collaboration with Salesforce has been reinventing the technological landscape for a decade through innovative and efficient solutions.

Speaker Change: This strategic partnership, which fan sales support to delivering solutions across multiple cloud has been a milestone in development and innovation in various areas optimizing processes and creating valuable customer experiences.

Speaker Change: This strategic partnership which spanned sales support to delivering solutions across multiple cloud has been a milestone in development and innovation in various areas optimizing processes and creating valuable customer experiences.

D. I N T has accumulated numerous certifications and qualified professionals, reflecting the partnership's success with salesforce and the ability to deliver impactful results.

Speaker Change: The I N T has accumulated numerous certifications and qualified professionals, reflecting the partnership's success with salesforce and the ability to deliver impactful results.

Speaker Change: The benefits of a union of these two brands are tangible clients and companies have seen their businesses transform customer satisfaction elevated and operational efficiency enhanced by automation and advanced data technology.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: At <unk>, we recognize legacy systems challenges to modern businesses, they slow market responsiveness lack resilience against unexpected events and hindered digital innovation.

Cesar Nivaldo Gon: At Ci&T, we recognize legacy systems as challenges to modern businesses. They slow market responsiveness, lack resilience against unexpected events, and hinder digital innovation.

Speaker Change: Our AI legacy modernization service is designed to address these issues head on by.

Cesar Nivaldo Gon: Our AI-based legacy modernization service is designed to address these issues head on. By leveraging specialized teams and artificial intelligence, we reduce risks and accelerate the modernization process, boosting organizational efficiency. We delve deep into existing code to extract and transform rules, enabling modernizations that were once deemed too risky or impractical. Our approach has significantly sped up the modernization process, ensuring it's safe and agile. Together with our clients, we are ready to propel companies into new digital horizons.

Speaker Change: By leveraging specialized teams in artificial intelligence, we reduce risks and accelerate the modernization process boosting organizational efficiency.

Speaker Change: We delve deep into existing code to extract and transform rules, enabling modernizations that we're once deemed too risky or impractical, our approach of significantly sped up the modernization process, ensuring its safe and agile.

Speaker Change: Together with our clients, we are ready to propel companies into new digital horizons.

Speaker Change: Together with our clients, we are ready to propel companies into new digital horizon.

Yes.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: Okay.

Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: I talent is an artificial intelligence tool integrated with Google chat developed to optimize the search for internal talents at C. I N T. It plays a crucial role in the transition of employees between project speeding up the process and providing recruitment and selection tests.

Speaker Change: I talent is an artificial intelligence tool integrated with Google chat developed to optimize the search for internal talents at C. I N T. It plays a crucial role in the transition of employees between projects speeding up the process and providing recruitment and selection tests.

Cesar Nivaldo Gon: iTalent is an artificial intelligence tool integrated with Google Chat developed to optimize the search for internal talents at Ci&T. It plays a crucial role in the transition of employees between projects, speeding up the process and providing recruitment and selection tips. iTalent assists hiring managers and talent acquisition specialists in the search for available talents, suggesting candidates with potential for open opportunities. It is a faster process than the previous one, requiring them to navigate through complex filtering and search commands.

Speaker Change: I tell it assists hiring managers and talent attracting specialists in the search for available talent, suggesting candidates with potential for open opportunities. It is a faster process than the previous one requiring them to navigate through complex filtering and search commands.

Speaker Change: Developed internally at C. I N T. The talent as a more user friendly and agile solution for internal reallocation.

Speaker Change: Developed internally at C. I N T E. <unk> is a more user friendly and agile solution for internal reallocation.

Cesar Nivaldo Gon: Developed internally at Ci&T, iTalent is a more user-friendly and agile solution for internal reallocation. Just three months after the launch, iTalent had 246 users and more than 5,000 interactions, resulting in greater agility in recruitment processes.

Speaker Change: Just three months after the lunch I talent had 246 users and more than 5000 interactions, resulting in greater agility and recruitment processes.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: It's exciting.

Speaker Change: Lighting is a tangible AI advancements internally and with our clients. We are thrilled to be part of this remarkable technological revolution now I invite Bruno to talk about our people.

Speaker Change: <unk> do you see tangible AI advancements internally and with our clients. We are thrilled to be part of this remarkable technological revolution now I invite Bruno to talk about our people.

Bruno Guicardi: It's exciting to see tangible AI advancements internally and with our clients. We are thrilled to be part of this remarkable technological revolution. Now, I invite Bruno to talk about our people.

Bruno: Thank you Sir it's great to have the opportunity to talk about our people.

Bruno Guicardi: Thank you, Cesar. It's great to have the opportunity to talk about our people. At the end of the year, we had around 6,100 CI&Ters, relatively in line with the number we presented in the previous quarter. Going forward, we foresee an increase in our headcount, as we are speeding up the hiring process to fill open positions and support the growing demand from our clients. As we resume our growth trajectory, we are creating new opportunities for career advancement and reinforcing our commitment to fostering an environment of innovation and entrepreneurship. The development of our people is a core value. We firmly believe in nurturing and empowering our people, giving them autonomy and meaningful challenges to stimulate their growth and potential.

Bruno: At the end of the year, we had around 6100 chairing tears relatively in line with the number we presented in the previous quarter going forward, we foresee an increase in our head count as we are speeding up the hiring process to fulfill open positions and support the growing demand from our clients as we resume our growth trajectory.

Bruno: At the end of the year, we had around 6100 chairing tears relatively in line with the number we presented in the previous quarter.

Bruno: Going forward, we foresee an increase in our head count as we are speeding up the hiring process to full fill open positions and support the growing demand from our clients as we resume our growth trajectory, we are creating new opportunities for career advancement and reinforcing our commitment to fostering an environment of innovation and entrepreneurship.

We are creating new opportunities for career advancement and reinforcing our commitment to fostering an environment of innovation and entrepreneurship.

Bruno: Yeah.

Speaker Change: The development of our people is a core value we firmly believe in luxury and empowering our people, giving them autonomy and meaningful challenges to stimulate the growth and potential.

Speaker Change: The development of our people is a core value, we firmly believe and nurturing and empowering our people, giving them autonomy and meaningful challenges to stimulate their growth potential.

Furthermore, the current landscape market by emergence of <unk> and the launch of selling T flow has created an environment full of exciting possibilities for our team. It has sparked a new wave of innovation and creativity opening doors to many opportunities for our employees to thrive and excel.

Speaker Change: Furthermore, the current landscape market by emergence of <unk> and the launch of selling T. Flaw has created an environment full of exciting possibilities for our team. It has sparked a new wave of innovation and creativity opening doors to many opportunities for our employees to thrive and excel.

Bruno Guicardi: Furthermore, the current landscape, marked by the emergence of GenAI and the launch of Ci&T Flow, has created an environment full of exciting possibilities for our team. It has sparked a new wave of innovation and creativity, opening doors to many opportunities for our employees to thrive and excel. Our overall voluntary attrition rate remains at a healthy level of 9.6. Meanwhile, for the leadership layer, it's even lower at 4.9.

Speaker Change: Our overall voluntary attrition rate remains at a healthy level of $9. Six Meanwhile, for the leadership layer, it's even lower at $4 nine.

Speaker Change: As we continue to integrate AI into our operations and move towards a high producing state with focus on nurturing a culture of continuous learning and developing the necessary skills to unlock <unk> full potential within our organization.

Bruno Guicardi: As we continue to integrate AI into our operations and move towards a hyper-divisive state, we focus on nurturing a culture of continuous learning and developing the necessary skills to unlock AI's full potential within our organization. In light of that commitment, we are delighted to announce the launch of our inaugural Ci&T Flow Certification Program. This initiative's main goal is to democratize our platform's utilization, ensuring that every Ci&T employee can access and benefit from it, regardless of their role or position. The response thus far has been truly remarkable.

Speaker Change: In line with that commitment we are delighted to announce the launch of our inaugural selling peak flow certification program.

Speaker Change: These initiatives main goal is to democratize, our platform's utilization, ensuring that every ceiling tiered can access and benefit from it regardless of their role our position.

Speaker Change: These initiatives main goal is to democratize, our platform's utilization, ensuring that every second tier can access and benefit from it regardless of their role our position.

Speaker Change: The response, thus far has been truly remarkable to this date, we have more than 2300 active users more than 700 of whom have successfully completed their certification process.

Bruno Guicardi: To this date, we have more than 2,300 active users, more than 700 of whom have successfully completed their certification processes. The Flow AI Certification Path is an upskilling program for Ci&Ters, enabling them to learn and apply Flow progressively in their work. By supporting the adoption of Ci&T Flow across teams, this program enhances the quality of our work and amplifies the value creation for our clients. Moving on, to our delivery center. We're excited to resume our organic global expansion following a period of strategic acquisition.

Speaker Change: The flow AI certification path is and up skilling program pursuing tiers, enabling them to learn and apply for progressively in their work by supporting the adoption of Chengdu floor Cross teams. This program enhances the quality of our work and amplifies the value creation for our clients.

Speaker Change: The <unk> certification Beth is an upscaling program pursuing tiers, enabling them to learn and apply full progressively in their work by supporting the adoption of guaranteed floor across teams. This program enhances the quality of our work and amplifies the value creation for our clients.

Speaker Change: Moving onto our delivery centers.

Speaker Change: Moving on to our delivery centers.

Speaker Change: We're excited to resume our organic global expansion following a period of strategic acquisitions.

Speaker Change: We are proud to announce the launch of our newest AI powered delivery center in the Philippines, situated just outside Manila.

Speaker Change: We're proud to announce the launch of our newest AI powered delivery center in the Philippines, situated just outside Manila.

Bruno Guicardi: We are proud to announce the launch of our newest AI-powered delivery center in the Philippines, situated just outside Manila. This expansion represents a significant milestone in Ci&T's dedication to integrating artificial intelligence and automation into our service offering. We've established centers in Australia, Japan, and China. The addition of the Philippine Center further solidifies C&T's presence in the Asia-Pacific region, enhancing our ability to serve clients in this dynamic market. This initiative will bring together a team of highly skilled professionals who will leverage cutting-edge technologies and advanced AI to drive client innovation and success.

Speaker Change: This expansion represents a significant milestone as guarantees dedication to integrating artificial intelligence and automation into our service offerings.

Speaker Change: We have established centers in Australia, Japan, and China. The addition of the Philippine Center further solidifies <unk> presence in the Asia Pacific region, enhancing our ability to serve clients in this dynamic market.

Speaker Change: With established centers in Australia, Japan, and China. The addition of the Philippines Center further solidifies <unk> presence in the Asia Pacific region, enhancing our ability to serve clients in this dynamic market.

Speaker Change: This initiative will bring together a team of highly skilled professionals, who will leverage cutting edge technologies and advanced AI to drive client innovation success. This strategic move aligns us selling to his mission to cultivate a diverse and talented workforce.

Speaker Change: This initiative will bring together a team of highly skilled professionals, who will leverage cutting edge technologies and advanced AI to drive client innovation and success.

Speaker Change: This strategic move aligns us selling to his mission to cultivate a diverse and talented workforce.

Bruno Guicardi: This strategic move aligns with Ci&T's mission to cultivate a diverse and talented workforce, building upon our successful acquisition of Transpire in Australia in 2022. Our right shore approach ensures optimal outcomes for our clients, irrespective of their location. The creation of the Philippine Center enhances our regional capabilities while enabling us to deliver cost-effective solutions for our clients. Now, I invite Stanley to comment on our financial results.

Speaker Change: Building upon our successful acquisition of Transpiring in Australia in 2022.

Building upon our successful acquisition of Transpiring in Australia in 2022.

Speaker Change: Our right short approach ensures optimal outcomes for our clients irrespective of their location.

Speaker Change: The creation of the Philippine Center enhances our regional capabilities, while enabling us to deliver cost effective solutions for our clients.

Speaker Change: Now I invite Stanley to comment on our financial results.

Stanley: Thank you Bruno and good morning, everyone I'm glad to be here once again to present, our financial performance to all of you in the first quarter of 2024, we achieved a net revenue of $523 5 million reais, representing a decline of 14, 2% compare.

Stanley Rodrigues: Thank you, Bruno, and good morning, everyone. I'm glad to be here once again to present our financial performance to all of you. In the first quarter of 2024, we achieved a net revenue of R$523.5 million, representing a decline of 14.2% compared to the first quarter of 2023, or 12.1% in constant currency, as a result of the challenges and market dynamics we faced during this period. But most importantly, I'm pleased to report an important growth indicator when compared to the previous quarter.

Speaker Change: <unk> to the first quarter of change change three or 12, 1% in constant currency as a result of the challenges and market dynamics, we faced during this period.

Stanley: To the first quarter of change change three or 12, 1% in constant currency as a result of the challenges and market dynamics, we faced during this period.

Speaker Change: Most importantly, I'm pleased to report an important growth indicator when compared to the previous quarter.

Our net revenue showed a modest increase of 0.2% finally, a resumption of our growth trajectory. Despite the seasonal nature of quarters. This demonstrates our ability to adapt and capitalize on opportunities in the market.

Speaker Change: Our net revenue showed a modest increase of 0.2% finally, a resumption of our growth trajectory. Despite the seasonal nature of quarters. This demonstrates our ability to adapt and capitalize on opportunities in the market.

Stanley Rodrigues: Our net revenue showed a modest increase of 0.2%, signaling a resumption of our growth trajectory despite the seasonal nature of quarters. This demonstrates our ability to adapt and capitalize on opportunities in the market. The sequential growth in net revenue was primarily driven by our top ten clients, who exhibited a remarkable increase of 7.9% compared to the previous quarter. This underscores the strength of our relationships with key clients and our commitment to providing exceptional value and service.

Speaker Change: The sequential growth in net revenue was primarily driven by our top 10 clients, who exhibited a remarkable increase of seven 9% compared to the previous quarter.

The sequential growth in net revenue was primarily driven by our top 10 clients, who exhibited a remarkable increase of seven 9% compared to the previous quarter.

Speaker Change: This underscores the strength of our relationships with key clients and our commitment to providing exceptional value and service.

Speaker Change: When examining our revenue distribution by geography. It is notable that North America, and Europe have demonstrated sequential growth collectively contributing to 53% of our total net revenue mature economies as a whole now represent 57% of our total revenue cig.

Stanley Rodrigues: When examining our revenue distribution by geography, it is notable that North America and Europe have demonstrated sequential growth, collectively contributing to 53% of our total net revenue. Material economies as a whole now represent 57% of our total revenue, signaling resilience and optimism for the future growth of our operations. In the first quarter of 2024, Latin America accounted for 43% of our revenue. Furthermore, in terms of our revenue mix across industry verticals, we observed a positive trend in retail and industrial goods, which experienced a remarkable 37.5% growth quarter over quarter. Additionally, there was sequential growth of 4.9% in the consumer goods sector.

Speaker Change: <unk> resilience and optimism for the future growth of our operations in the first quarter of 2020 for Latin America accounted for 43% of our revenue.

Speaker Change: Furthermore, in terms of our revenue mix across industry verticals, we observed a positive trend in retail in those show goods, which experienced a remarkable 37, 5% growth quarter over quarter. Additionally, there was a sequential growth of four 9% in the.

Furthermore, in terms of our revenue mix across industry verticals, we observed a positive trend in retail in those show goods, which experienced a remarkable 37, 5% growth quarter over quarter. Additionally, there was a sequential growth of four 9% in the.

Speaker Change: Consumer goods sector.

Speaker Change: These developments more than offset the decline experienced in the technology and telecommunications life Science and financial services verticals. Another significant milestone in our revenue distribution is the diversification of revenue share from our top clients currently our top client.

Stanley Rodrigues: These developments more than offset the decline experienced in the technology and telecommunications, life science, and financial services verticals. Another significant milestone in our revenue distribution is the diversification of revenue share from our top clients. Currently, our top client contributes 6% of our revenue, down from 11% a year ago. Moreover, our top 10 clients now account for 41% of our revenue, a decrease from 44% in the first quarter of 2023.

Speaker Change: <unk> two 6% of our revenue down from 11% a year ago. Moreover, our top 10 clients now account for 41% of our revenue a decrease from 44% in the first quarter of change change three.

Stanley Rodrigues: This diversification reflects a healthy and balanced client portfolio, enhancing our overall financial stability. Now, let's take a look at our client base and explore some key metrics. Firstly, I'm pleased to report that we have seen growth in the number of clients with revenue exceeding R$20 million, from R$29 million in Q4'23 to R$30 million in Q1'24. Notably, three of these clients have revenues exceeding R$100 million. It's important to note that this client cohort takes into account their revenue contributions over the past 12 months. And in the first quarter of 2024, we successfully onboarded 22 new clients, demonstrating our ability to attract and nurture new business relationships.

Speaker Change #100: This diversification reflects a healthy and balanced client portfolio any hazing, our overall financial stability.

Speaker Change: <unk> portfolio any hazing, our overall financial stability.

Speaker Change #101: Now, let's take a look into our client base and explore some key metrics. Firstly I am pleased to report that we have seen growth in the number of clients with revenue exceeding 2 million Reais from 2009 in the fourth quarter of 2003 through 30 in the first quarter 'twenty four.

Speaker Change: Now, let's take a look into our client base and explore some key metrics. Firstly I am pleased to report that we have seen growth in the number of clients with revenue exceeding 2 million Reais from 29 in the fourth quarter 23 to <unk> 30 in the first quarter 'twenty four.

Speaker Change #102: Notably three of these clients have revenues exceeding 100 million reais.

Speaker Change: Notably three of these clients have revenues exceeding 100 million retch.

Speaker Change #102: It's important to note that this client cohort takes into account the revenue contributions over the past 12 months.

Speaker Change: It's important to note that this client cohort takes into account the revenue contributions over the past 12 months.

Speaker Change #103: And in the first quarter 'twenty 'twenty four we successfully on boarded 22, new clients, demonstrating our ability to attract and nurture new business relationships. This upward trajectory in client engagement sets the stage for the expansion of our multi million accounts throughout the year.

Speaker Change: And in the first quarter 'twenty to 'twenty four we successfully on boarded 22, new clients, demonstrating our ability to attract and nurture new business relationships.

Speaker Change: This upward trajectory in client engagement sets the stage for the expansion of our multi million accounts throughout the year.

Stanley Rodrigues: This upward trajectory in client engagement sets the stage for the expansion of our multi-million accounts throughout the year. Additionally, one of our top priorities is to increase our wallet share among our largest clients. We are committed to fostering strong, long-lasting relationships with them and expanding the range of services we offer.

Speaker Change #104: Additionally, one of our top priorities is to increase our wallet share among our largest clients.

Speaker Change: Additionally, one of our top priorities is to increase our wallet share among our largest clients.

Speaker Change #104: We are committed to fostering strong long lasting relationships with them and expanding the range of services. We offer these aligns with our land and expand strategy, which aims to both retain existing clients and grow our business within their organizations.

We are committed to fostering strong long lasting relationships with them and expanding the range of services. We offer these aligns with our land and expand strategy, which aims to both retain existing clients and grow our business within their organizations.

Stanley Rodrigues: This aligns with our land and expand strategy, which aims to both retain existing clients and grow our business within their organization. I am proud to highlight our net revenue retention rate, which has consistently averaged 120% over the past five years. This impressive figure serves as a testament to our unwavering resilience, strength, and ability to consistently deliver value to our clients. It also underscores the sustainability of our business model.

Speaker Change #105: I'm proud to highlight our net revenue retention rate, which has consistently averaged 120% over the past five years. This impressive figure. It serves as a testament to our unwavering resilience strength and ability to consistently deliver value to our clients.

Speaker Change: I'm proud to highlight our net revenue retention rate, which has consistently averaged 120% over the past five years. This impressive seeger serves as a testament to our unwavering resilience strength and ability to consistently deliver value to our clients.

Speaker Change #105: It also underscores the sustainability of our business model.

Speaker Change: It also underscores the sustainability of our business model.

Speaker Change #106: Now, let's turn our attention to the key metrics that reflect our profitability in the first quarter 2024, our adjusted EBITDA stood at $84 3 million Reais compares to $116 5 million in the same period of the previous year.

Speaker Change: Now, let's turn our attention to the key metrics that reflect our profitability in the first quarter 2024, our adjusted EBITDA that stood at $84 3 million Reais compares to $116 5 million in the same period of the previous year.

Stanley Rodrigues: Now let's turn our attention to the key metrics that reflect our profitability. In the first quarter of 2024, our adjusted EBITDA stood at 84.3 million reais compared to 116.5 million in the same period of the previous year. This resulted in an adjusted EBITDA margin of 16.1%, a decrease of 3 percentage points compared to the first quarter of 23. The decline can be attributed to a lower gross margin and an increase in SG&A expenses as a percentage of revenue.

Speaker Change #107: <unk> resulted in an adjusted EBITDA margin of 16, 1% a decrease of three percentage points compared to the first quarter 'twenty three that.

Speaker Change: This resulted in an adjusted EBITDA margin of 16, 1% a decrease of three percentage points compared to the first quarter 'twenty three.

Speaker Change #108: The decline can be attributed to a lower gross margin and an increase in SG&A expenses as a percentage of revenue.

Speaker Change: The decline can be attributed to a lower gross margin and an increase in SG&A expenses as a percentage of revenue.

Speaker Change #109: Throughout 2023, our proactive cost management strategies played a pivotal role in maintaining attractive profitability margins.

Speaker Change: Throughout 2023, our proactive cost management strategies played a pivotal role in maintaining attractive profitability margins.

Stanley Rodrigues: Throughout 2023, our proactive cost management strategies will play a pivotal role in maintaining attractive profitability margins. As we anticipate revenue growth throughout the year, we expect to achieve margin expansion by diluting fixed expenses. It's worth noting that the first quarter of the year typically encompasses salary increases for most of our employees in Brazil, while our contract price adjustments occur throughout the year. Moving on to adjusted net income, we recorded R$41.7 million in Q1'24 compared to R$62.4 million in Q1'23.

Speaker Change #110: As we anticipate revenue growth throughout the year, we expect to achieve margin expansion by diluting fixed expenses.

Speaker Change: As we anticipate revenue growth throughout the year, we expect to achieve margin expansion by diluting fixed expenses.

Speaker Change #111: Worth, noting that the first quarter of the year typically encompass as salary increases for most of our employees in Brazil, while our contract price adjustments occur throughout the year.

Speaker Change: Worth, noting that the first quarter of the year typically encompass as salary increases for most of our employees in Brazil, while our contract price adjustments occur throughout the year.

Speaker Change #112: Moving on to adjusted net income we recorded $41 7 million Reais in first quarter 'twenty four compared to $62 4 million in the first quarter changed III. This led to an adjusted net income margin of 8% a decrease of two three percentage points compared to the.

Speaker Change: Moving on to adjusted net income we recorded $41 7 million Reais in first quarter 'twenty four compared to $62 4 million in the first quarter changed III. This led to an adjusted net income margin of 8% a decrease of two three percentage points compared to the same.

Stanley Rodrigues: This led to an adjusted net income margin of 8%, a decrease of 2.3 percentage points compared to the same quarter last year. The reduction is primarily attributed to lower adjusted EBITDA, which was partially offset by lower net financial costs and tax expenses.

Same quarter last year. The reduction is primarily attributed to the lower adjusted EBITDA, which was partially offset by lower net financial costs and tax expenses.

Speaker Change: Quarter last year. The reduction is primarily attributed to the lower adjusted EBITDA, which was partially offset by lower net financial costs and tax expenses.

Speaker Change #113: Starting from first quarter 2004, we have decided to add back stock based compensation expenses in our calculation of adjusted net profit, which is a non <unk> financial measure to achieve better comparability with our main peers and it's a common pratt.

Speaker Change: Starting from first quarter 2004, we have decided to add back stock based compensation expenses in our calculation of adjusted net profit, which is a non <unk> financial measure to achieve better comparability with our main peers and it's a common practice.

Stanley Rodrigues: Starting from first quarter 24, we have decided to add back stock-based compensation expenses in our calculation of adjusted net profit, which is a non-IFRS financial measure to achieve better comparability with our main peers, and it's a common practice within our sector. And to finalize our financial performance presentation, in the first quarter of 24, we had another quarter of strong cash generation from operating activities, amounting to $130.3 million, 11.8% higher than the same period last year. Free cash flow, calculated as net cash generated from operating activities, less CAPEX, was $108 million.

Speaker Change #114: This within our sector.

Within our sector.

Speaker Change #115: And to finalize our financial performance presentation in the first quarter 'twenty four we had another quarter of strong cash generation from operating activities amounted to $130 3 million 11, 8% higher than the same period last year.

Speaker Change: And to finalize our financial performance presentation in the first quarter 'twenty four we had another quarter of strong cash generation from operating activities amounted to $130 3 million 11, 8% higher than the same period last year.

Speaker Change: Free cash flow calculated as net cash generated from operating activities less capex was $108 million.

Speaker Change #115: Free cash flow calculated as net cash generated from operating activities less capex was $108 million.

Speaker Change #116: This is a solid mark that allow us to reinvest in our business and reduce our net debt position.

Speaker Change: This is a solid mark that allow us to reinvest in our business and reduce our net debt position.

Stanley Rodrigues: This is a solid mark that allows us to reinvest in our business and reduce our net debt position. Finally, I'm pleased to announce an important decision regarding our reporting currency. Starting with the full year 2024 results, which will be reported in March next year, we will be transitioning from the Brazilian Real to the United States dollar as our reporting currency. This strategic move will facilitate a more accurate global evaluation of our financial performance and allow easy comparison of our results with those of other companies in our industry. Now, I will invite Cesar back to provide you with our business outline.

Speaker Change #117: Finally, I am pleased to announce an important decision regarding our reporting currency.

Speaker Change: Finally, I'm pleased to announce an important decision regarding our reporting currency.

Speaker Change #118: Starting with the full year 2024 results, which will be reported in March next year, we will be transitioning from Brazilian real to the United States dollar as our reporting currency. This strategic move will facilitate a more accurate global evaluation of.

Speaker Change: Starting with the full year 2024 results, which will be reported in March next year, we will be transitioning from Brazilian real to the United States dollar as our reporting currency. This strategic move will facilitate a more accurate global evaluation of.

Speaker Change #119: Our financial performance and allow easy comparison of our results with those of other companies in our industry.

Speaker Change: Our financial performance and allow easy comparison of our results with those of other companies in our industry.

Speaker Change #120: Now I'll invite seizure back to provide you with our business outlook.

Speaker Change: Now I will invite seizure back to provide you with our business outlook.

Thank you is steadily we expect our net revenue in the second quarter of 'twenty 'twenty four to be at least 542 million rise on a reported basis equivalent to a three 5% increase in our revenue compared to the first quarter.

Speaker Change: Thank you and steadily we expect our net revenue in the second quarter of 'twenty 'twenty four to be at least 542 million rise on a reported basis equivalent to a three 5% increase in our revenue compared to the first quarter.

Cesar Nivaldo Gon: Thank you, Stanley. We expect our net revenue in the second quarter of 2024 to be at least 542 million reais on a reported basis, equivalent to a 3.5% increase in our revenue compared to the first quarter of 2024. For the full year of 2024, we are maintaining our guidance. We expect our net revenue growth at constant current rates to be in the range of minus 2.5% to plus 2.5% year over year. In addition, we estimate our adjusted EBITDA margin to be in the range of 17% to 19%.

Speaker Change #120: Of 2024.

Speaker Change: 2024.

seizure: For the full year of 'twenty 'twenty four we are maintaining our guidance, we expect our net revenue growth at constant currency to be in the range of minus two 5% to plus two 5% year over year. In addition, we estimate our adjusted EBITDA margin to be in the range of 17.

Speaker Change: For the full year of 2024, we are maintaining our guidance, we expect our net revenue growth at constant currency to be in the range of minus two 5% to plus two 5% year over year. In addition, we estimate our adjusted EBITDA margin to be in the range of 17.

seizure: <unk> to 19%.

Speaker Change: <unk> to 19%.

Speaker Change #122: Now, let me add some color to our business outlook for the year.

Speaker Change: Now, let me add some color to our business outlook for the year.

Cesar Nivaldo Gon: Now, let me add some color to our business outlook for the year. As we project flattish revenue growth in 2024, the midpoint of our guidance implies a significant sequential increase of low-to-mid single digits over the next three quarters. This entails a V-shaped recovery from the atypical 2023, resulting in double-digit revenue growth year-over-year in the fourth quarter of 2024.

Speaker Change #123: As we project flattish revenue growth in 2024, the midpoint of our guidance implies a significant sequential increase.

Speaker Change: As we projected flattish revenue growth in 2024, the midpoint of our guidance implies a significant sequential increase of low to mid single digits over the next three quarters.

Speaker Change #124: Low to mid single digits over the next three quarters.

Speaker Change #125: This entails a V shape of the recovery from the atypical trailing 23, resulting in double digit revenue growth year over year in the fourth quarter of 2024.

Speaker Change: This entails a V shape of the recovery from the atypical trailing 23, resulting in double digit revenue growth year over year in the fourth quarter of 2024.

Speaker Change #126: This solid exit rate will position us favorably for a strong growth trajectory in 2025 and beyond.

Speaker Change: This solid exit rate will position us favorably for a strong growth trajectory in 2025 and beyond.

Cesar Nivaldo Gon: This solid exit rate will position us favorably for a strong growth trajectory in 2025 and beyond. To conclude, I want to express my deep appreciation for the dedication and resilience of our team. As we embark on this new phase of growth and development, we are committed to providing every CI&T with the support and resources they need to succeed. Together, we will continue to drive our company toward a future defined by innovation, collaboration, and impact. Thank you all for your trust and support. We now conclude our presentation, and we'll begin the Q&A session. Okay, we'll now begin our lesson.

Speaker Change #127: To conclude I want to express my deep appreciation for the dedication and resilience of our team as we embark on this new phase of growth and development. We are committed to providing every CIA in tier with the support and resources they need to succeed.

Speaker Change: To conclude I want to express my deep appreciation for the dedication and resilience of our team as we embark on this new phase of growth and development. We are committed to providing every CIA in tier with the support and resources they need to succeed.

Speaker Change #128: Together, we will continue to drive our company towards a future defined by innovation collaboration and impact.

Speaker Change: Together, we will continue to drive our company toward our future defined by innovation collaboration and impact. Thank.

Speaker Change: Thank you all for your interest and support.

Speaker Change #129: You all four are thrusting support.

Speaker Change #130: We now conclude our presentation and we will begin the Q&A session.

We now conclude our presentation and we will begin the Q&A session.

Speaker Change #130: Okay.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change #131: Okay. We will now begin our Q&A session I will announce each participants name once you hear our name. Please on mute your line and ask a question then when you are done please mute your line.

Speaker Change: Okay. We will now begin our Q&A session I will announce each participants name once you hear our name. Please on mute your line and ask a question then when you are done please mute your line.

Eduardo Galvao: Okay, we'll now begin our Q&A session. I'll announce each participant's name. Once you hear your name, please unmute your line and ask your question. Then, when you're done, please mute your line. The first question comes from Eduardo Rubi from UBF. Eduardo, please go ahead.

Speaker Change #131: The first question comes from Eduardo who will be from UBS. Please.

Speaker Change: First question comes from Eduardo who will be from UBS.

Eduardo: Please go ahead.

Speaker Change #132: Please go ahead.

Speaker Change #132: Hello.

Speaker Change: Hi, everyone. Thank you very much fiber to make the question Joe.

Speaker Change #133: Hi, everyone. Thank you very much farmers finish to make the question.

Speaker Change #134: Two from my side first if you could comment please on the main drivers for that were having expansion acquired over acquired and second if you could you gave more details any opportunities you're seeing in Asia, and Australia and when would we expect you'll see that higher revenue expansion. There. Thank you very much.

Eduardo: Two from my side first if you could comment please on the main drivers for that were having expansion acquired over acquired.

And second if you could give more details and the opportunities you're seeing in Asia, and Australia, and when would we expect to see higher revenue expansion. There. Thank you very much.

Speaker Change #135: Sure I can start with the first one.

Speaker Change: Sure I can start with the first one.

Eduardo Rubi: Sure, I can start with the first one. So, basically, as you saw, our Q2 expansion is guided at 3.5%. Incremental increase. It's basically based on bookings we already have, so deals we already want. And it's a matter of ramping up the teams that we are doing, so we have a very high confidence level around that. I will detail more what the kind of demand we are seeing. And then for the implied Q3 and Q4, we are, of course, counting on the current books, bookings we already have, combined with our, [inaudible] By the way, in our category, so among our peers, we are probably the player with the higher sequential growth, forecasted.

Speaker Change #135: So.

Eduardo: So.

Speaker Change #135: Basically is there.

Eduardo: Basically is there.

Speaker Change #135: So.

So.

Speaker Change #135: No.

Eduardo: Our.

Speaker Change #136: Our Q2 expansion as guided is three 5%.

Speaker Change: Q2 expansion as guided is three 5%.

Speaker Change #137: We incurred minimal increase it's basically.

Speaker Change: Incremental increase it's basically.

Speaker Change #138: Just on bookings we are ready to have so deals from your reservoir and it's a matter of robot. The teams that we are doing so we have a very high confidence level around that.

Speaker Change: On bookings Red hat, so to us from day, one and it's a matter of robot. The teams that we are doing so we have a.

Speaker Change: Very high confidence level around that.

Speaker Change: Detail more what what is the kind of demand we are seeing and then for the implied Q3 and Q4. We are of course, we are calling on the current books bookings we are ready to have combined with our.

Speaker Change #139: To tell you more.

Speaker Change #140: What is the kind of demand we are seeing and then for the implied Q3 and Q4. We are of course, we are calling on the current books bookings we are ready to have combined with our.

Speaker Change: Deals for our pipeline keeping the current rate of closing new deals. So we are as you saw we are maintaining our full year guidance.

Speaker Change #141: Deals for our pipeline keeping the current rate of closing it will do so we are as you saw we are maintaining our full year guidance.

Speaker Change: By the way.

By the way.

Speaker Change #142: Category. So among our peers, we are probably the player with a higher sequential growth.

Speaker Change: Category. So among our peers, we are probably the player with a higher sequential growth for.

Speaker Change: Forecasted.

Speaker Change #142: Forecasted.

Speaker Change: And.

And.

Speaker Change: In terms of.

Speaker Change #142: In terms of.

Speaker Change: Basically what we see now or ignore portfolio is.

Speaker Change #142: Basically what we see now are in our portfolio is.

Eduardo Rubi: In terms of... basically, what we see in our in our portfolio is, And I think this relates to the demand environment as, of course, there is still uncertainty in the macro, but we see our larger clients much more stable in their spending patterns this year. And I think we should not wait for ideal macroeconomic conditions.

Speaker Change: And I think this relates to the demand environment.

Speaker Change #143: And I think this relates to the demand environment.

Speaker Change: <unk> is of course, there is it's showing surgeon in the macro but we see our larger clients much more stable.

Speaker Change #144: <unk> is of course, there is so uncertain in the macro but we see our larger clients much more stable.

Speaker Change: Sure.

Speaker Change #144: Sure.

Speaker Change: But spending partners this year.

Speaker Change #145: But spending partners this year.

Speaker Change: And I think we decided.

Speaker Change #146: And I think we decided.

Speaker Change: Not to wait for ideal macroeconomic conditions. So instead I think we are creating very concrete differentiations in offerings that allow us to gain client share and new clients even.

Speaker Change #147: Not to wait for ideal macroeconomic conditions. So instead I think we are creating very concrete differentiations in offerings that allow us to gain client share.

Eduardo Rubi: So instead, I think we are creating very concrete differentiations and offerings that allow us to gain client share and new clients even in, let's say, unfavorable environments. So we are creating, I think part of this expansion is based on new offerings related to, I think, a very compelling value proposition around using AI for boosts, cloud migration, legacy modernization, a lot of things related to data strategy as a foundation for future AI leverage.

Speaker Change #147: New clients even.

Speaker Change #148: <unk>, let's say in favor environments. So we create I think part of this.

Speaker Change: Let's say in favor environment. So we create I think part of this.

Expansion is based on new operators relate to.

Speaker Change: Expansion is based on new operators relate to.

Speaker Change #148: Yeah.

Speaker Change #100: I think a very compelling value prop around using AI for our booths cloud migration legacy modernization a lot of things relate to data strategy as a foundation for our future AI leverage and also we are seeing a lot of traction on our journey.

A very compelling value prop around using AI for our booths cloud migration legacy modernization a lot of things relate to data strategy is.

Speaker Change #149: Foundation for our future AI leverage and also we are seeing a lot of traction on our journey to AI strategy roadmap so commercial activity.

Eduardo Rubi: And also, we are seeing a lot of traction on our generative AI strategy roadmap. So, commercial activity and pipeline this year compared to the previous year are considerably higher. And we see our dual closing ratio continue to improve. So basically, if we look at the kind of projects, there are a lot of things related to digital efficiency, doing more with less, which is the main value prop of CI&T flow, and also a lot of investments that are really preparing the foundations for future AI leverage. I mentioned cloud migration, legacy or app modernization data, and so on. I think this is basically what's driving our growth in Q2 and a half. Sorry, the second question. The second question was about expansion in APEC.

Speaker Change #101: <unk> AI strategy roadmap, so commercial activity.

Speaker Change #149: Pipeline this year compared to the previous year.

Speaker Change #101: <unk> pipeline this year compared to the previous year.

Speaker Change #101: Is considerably higher.

Speaker Change #149: <unk> is considerably higher.

Speaker Change #149: And.

Speaker Change #101: And.

Speaker Change #149: And we see our deal closing ready to ratio continuing to improve so.

Speaker Change #101: And we see our deal closing ready to.

Speaker Change #101: Ratio continued to improve so.

Speaker Change #149: Basically.

Speaker Change #102: Basically if we look the kind of projects, there's a lot of things related to digital efficiency.

Speaker Change #150: If we look the kind of projects a lot of things relate to digital efficiency.

Speaker Change #103: Doing more with less debt as the main value prop of CIM two flow and also a lot of investment.

Speaker Change #151: Doing more with less that is the main value prop of CMT flow and also a lot of investment.

Speaker Change #104: Are really preparing the foundations for future.

Speaker Change #152: Are really preparing the foundations for future.

Speaker Change #104: Leverage animation cloud migration legacy apps modernization data and so on so.

Speaker Change #153: Leverage at Imation cloud migration, <unk> modernization data and so on so.

Speaker Change #104: This is basically what's driving our growth.

Speaker Change #153: This is basically what's driving.

Speaker Change #154: Record growth.

Speaker Change #104: In Q2 and.

Speaker Change #155: In Q2 and.

Speaker Change #104: Okay.

Speaker Change #155: Yeah.

Speaker Change #105: Sorry, the second question. The second question was about expansion in APAC since I can I can take this one.

Speaker Change #156: Sorry, the second question. The second question was about the expansion in APAC since I can that can take this on the curve, but what's driving the offering.

Eduardo Rubi: The second question was about the expansion in APEC, since I can take this one. Because what's driving the offering there, you may recall that we acquired a company in 2022 in Australia that had a very good client portfolio. And the growth there is based on providing a different scale to the services, which is what a small company does. And now they have the power of Nearshore and other capabilities from Ci&T. So that's what's driving the growth plans there. And actually, even the Philippine Center that we are opening now this year. So that's the rationale behind it.

Speaker Change #106: What's driving the offering.

Speaker Change #107: You may remind that we acquired the company in 2022 in Australia.

Speaker Change #157: You may remind that we have.

Speaker Change #158: The company in 2022, and Australia that had a.

Speaker Change #108: Very good.

Speaker Change #159: Very good.

Speaker Change #160: Client portfolio.

Speaker Change #108: Portfolio.

Speaker Change #109: And the growth there.

Speaker Change #160: And the growth there.

Speaker Change #110: Based on the kind of providing.

Speaker Change #161: Based on the kind of providing.

Speaker Change #162: On a different scale to the services, which was a small company.

Speaker Change #111: A different scale to the services, which was a small company.

Speaker Change #163: And though.

Speaker Change #111: No.

Speaker Change #111: The power of <unk>.

Speaker Change #164: More of a near shore.

Speaker Change #111: Sure.

Speaker Change #112: <unk> and other capabilities for <unk>, So that's what's driving the growth plans there.

Speaker Change #165: <unk> and other capabilities for <unk>, So that's what's driving the growth plans there.

Speaker Change #113: So thats whats driving it actually even though the Philippine center that we are opening this year. So that's the rationale behind it.

Speaker Change #166: That's what's driving that actually even though the Philippine center that we are opening this year.

Speaker Change #166: That's the rationale behind it.

Speaker Change #114: Okay very clear thank you very much thank.

Speaker Change #167: Okay very clear thank you very much thank.

Eduardo Rubi: Okay, very clear. Thank you very much. Thank you for your question.

Speaker Change #115: Thank you for your question.

Speaker Change #168: Thank you for your question.

Speaker Change #116: <unk> will be our.

Speaker Change #169: <unk> will be our.

Eduardo Galvao: Thank you, Rubi. Our next question comes from Ryan Potter from Citi. Ryan, your line is open.

Speaker Change #116: Our next question comes from Ryan Potter from CD Ryan Your line is open.

Speaker Change #169: Our next question comes from Ryan Potter from CD Ryan Your line is open.

Ryan Potter: Hey, Thanks for taking my question. So you guys had some variability in your top clients recently with your top client changing over in Q. So could you give some color on the demand trends youre seeing largest clients do you believe you're taking share of those clients.

Hey, Thanks for taking my question. So you guys had some variability in your top clients recently with your top client changing over in <unk>. So could you give some color on the demand trends youre seeing largest clients do you believe you're taking share of those clients.

Ryan Potter: Hey, thanks for taking my question. So you guys had some variability in your top clients recently, with your top client changing over in 4Q. So could you give some color on the demand trends you're seeing? You know, the largest clients; do you believe you're taking a share of those clients? And then on that top client, is it consistent with the client that was in 4Q, or did it change back to the client that was in 4Q?

Ryan Potter: Then on that top line is consistent with the client and it wasn't <unk> or does it change back to the fact that most of the quarter.

Speaker Change #170: Then on that top line is consistent with the client and it wasn't <unk> or does it change back to the client that most importantly.

Ryan Potter: Got it.

Ryan Potter: Okay. Thank you Ryan Great secret.

Ryan Potter: Thank you Ryan great feel it.

Cesar Nivaldo Gon: Thank you, Ryan. It's great to see you.

Well as I mentioned I think.

Speaker Change #172: Well as I mentioned I think.

Speaker Change #118: We mentioned that in the first quarter, our top 10 clients expanded seven 9% so we see that.

Ryan: We mentioned that in the first quarter, our top 10 clients expanded seven 9%. So we see much better butter, while sustaining our larger clients. This year, but this is combined with our strategy of gaining share.

Cesar Nivaldo Gon: Well, as I mentioned, I think we mentioned that in the first quarter, our top 10 clients expanded 7.9%. So we see a much better pattern of growth for our larger clients this year, but this is combined with our strategy of gaining client share based on efficiency.

Speaker Change #118: Much better butter office spending in our larger clients. This year, but this is combined with our strategy of gaining share.

Speaker Change #119: Sure based on efficient, but this is the.

Speaker Change #174: Sure based on efficient, but this is the.

Cesar Nivaldo Gon: I think this is the main focus of our strategy for 2024, leveraging our CI&T flow platform in terms of efficiency to really replace non-AI vendors within our clients and also being very competitive when adding new logos to our portfolio. So basically, this is the main agenda; there is a lot of preparation for leveraging AI. I mentioned data. Data is hot right now. Of course, there is no AI without data, and companies are kind of trying to speed up their data strategies so they are prepared for the benefits and opportunities around leveraging AI inefficiency or experienced coroners.

Speaker Change #120: May folks.

Speaker Change #175: May folks.

Speaker Change #121: Brad as you forward when joining for leveraging our <unk> platform in terms of the fusions and.

Speaker Change #176: Strategy for it when joining for leveraging our <unk> platform in terms of efficiency and.

Speaker Change #121: Really replace Norway and vendors.

Speaker Change #177: Really replace Norway vendors.

Speaker Change #122: Within our Atlanta, and also being very competitive.

Speaker Change #178: Within our clients and also being very competitive on adding.

Speaker Change #122: Adding.

Speaker Change #123: New logos to our portfolio so.

Speaker Change #179: New logos to our portfolio so.

Basically this is the EMEA agenda.

Speaker Change #179: Basically.

Speaker Change #180: This is the main agenda.

Speaker Change #180: There is a lot of preparation.

Speaker Change #123: There is a lot of preparation.

Speaker Change #181: Or leveraging AI.

Speaker Change #123: We're leveraging AI.

Speaker Change #182: Our nation data data is it's hard to know that.

Speaker Change #124: Automation data data is it's hard to know that.

Speaker Change #183: Yes of course, there is no AI without data and companies are.

Speaker Change #125: Yes of course, there is no AI without data companies are kind of.

Speaker Change #183: End of <unk>.

I'm trying to choose speed.

Speaker Change #125: Trying to choose speed.

Speaker Change #184: Their data strategy. So they are prepared for the benefits.

Speaker Change #126: Their data strategy. So they are prepared for the benefits.

Speaker Change #185: And opportunities around leveraging AI inefficient or experience corners. So this is basically what is driving and we have I think last year was a tough year, but we on boarded very large global companies with retail and consumer goods.

Speaker Change #126: Opportunities around leveraging.

Inefficient or experience corners. So this is basically what is driving and we have I think last year was a tough year, but we on boarded very large global companies with retail and consumer goods and theirs.

Cesar Nivaldo Gon: So this is basically what is driving growth. And we have, I think last year was a tough year, but we onboarded very large global companies in retail and consumer goods. And this global master service agreement is expanding in a very good way this year. So this is also driving growth for us.

Cesar Nivaldo Gon: Got it. And on the large client comment, is it consistent with large client 4Q?

Speaker Change #186: And this.

Speaker Change #187: Global Master service agreement are expanding in a very good way. This year. So this is all sold.

Speaker Change #127: Global Master service agreements are expanding in a very good way this year. So it is resolved.

Speaker Change #187: Driving growth for us.

Speaker Change #128: Driving growth for us.

Speaker Change #128: Yeah.

Yeah.

Speaker Change #187: Got it.

Speaker Change #129: Got it on that large client comment is it consistent with large clients work in.

Speaker Change #188: <unk> client comment is it consistent with large clients.

Speaker Change #189: Same client.

Speaker Change #129: The same client.

Speaker Change #129: Yeah, I think so.

Speaker Change #190: Yeah, I think so.

Cesar Nivaldo Gon: Yeah, I think so. It's the same pattern.

Is the same pattern.

Speaker Change #190: Uh huh.

Speaker Change #130: We we mentioned for the first time in history, we have.

Speaker Change #191: We we mentioned for the first time in history, we have.

Speaker Change #131: Three clients with.

Speaker Change #192: Three clients with.

Cesar Nivaldo Gon: We mentioned for the first time in history, we have three clients with last 12 months revenue above 100 million reais. So we see a lot of consistency in the expansion of the largest clients of our portfolio. And, of course, more challenges for the smaller, more tech-savvy companies still, providers that back us up to a challenge. But, for luck or strategy, we are not very exposed to the tech sector. We are more grounded in traditional verticals like financial services, consumer goods, retail, and so on. So it's placed in our favor.

Last 12 months' revenue above 100 million Reais. So we see a lot of consistency on the expansion in the large deals.

Speaker Change #193: Our last 12 months' revenue above 100 million Reais. So we see a lot of consistency on the expansion and the large the largest clients so far portfolio.

Speaker Change #132: <unk> clients, so far portfolio.

Speaker Change #133: And of course more more challenges in the <unk>.

Speaker Change #194: And of course more more challenges in the for the smaller.

Speaker Change #134: The smaller.

Speaker Change #134: More tech savvy companies is still I think a very turbulent environment and you see across the board.

Speaker Change #195: More tech savvy companies is still.

Speaker Change #197: I think a very turbulent environment and you see across the board.

Speaker Change #135: Given the.

Speaker Change #196: And then even.

Speaker Change #136: There are other.

Speaker Change #198: There are other.

Speaker Change #136: No.

Speaker Change #198: No.

Speaker Change #137: Two providers that that cause us to a challenge.

Speaker Change #199: Two providers.

Speaker Change #200: That gives us to a challenge.

Speaker Change #138: For luck or is China is that we are not very exposed to the deck.

Speaker Change #201: For luck or is China is that we are not very exposed to the deck.

Speaker Change #139: Sector, we are more and more.

Speaker Change #202: Sector, we are more and more.

Speaker Change #140: Grounded in traditional.

Speaker Change #203: Grounded in traditional.

Speaker Change #140: Verticals like financial services consumer goods retailer and so until it displays in order trailers.

Speaker Change #204: Verticals like financial services consumer goods for damage so until its place in our trailers.

Speaker Change #141: Got it got it it was good to see the large deal that you announced in your prepared remarks.

Got it got it it was good to see the large deal that you announced in your prepared remarks.

Cesar Nivaldo Gon: It was good to see the large deal that you announced in your prepared remarks about the auto client. Could you give some additional color on what exactly you're doing for this client and what led them to choose you? And then do you believe you have other larger, more complex opportunities in the pipeline similar to this? Yeah, this was a major victory in the front.

Speaker Change #141: Got it.

Got it.

Speaker Change #142: Could you give some additional color on what exactly youre doing per client.

Speaker Change #205: Could you give us some additional color on what exactly youre doing per client.

Speaker Change #143: As you and then do you believe you have other kind of larger more complex opportunities in the pipeline similar to us yes.

Speaker Change #206: As you and then do you believe you have other kind of larger more complex opportunities in the pipeline similar to us yes.

Speaker Change #144: Yes. This is was a major victory in the first quarter, we were working.

Speaker Change #207: Yes. This is <unk>.

Cesar Nivaldo Gon: Yeah, this was a major victory. In the first quarter, we were working hard.

Speaker Change #208: A major victory in the first quarter, we were working.

Speaker Change #145: Digital is a very.

Speaker Change #209: It was a very.

Speaker Change #146: Broad and competitive RFP process global or upgrade process with all the players.

Speaker Change #210: Broad and competitive RFP process global or upgrade process with all the players.

Cesar Nivaldo Gon: It was a very broad and competitive RFP process, a global RFP process, with all the players in the industry involved. I think we used our new AI growth machine approach. I think that gave us a set of speed and the kind of differentiation that allowed us to win. I think it will probably be public in a few months, but right now, we cannot disclose more than what we did. But we are very happy, and this is part of what is, for us, considered a very good start for the year.

Speaker Change #147: He was involved with it I think we use our new AI growth machine approach I think that.

Speaker Change #211: He was involved with it I think we use our new AI growth machine approach I think that.

Speaker Change #147: Gave us a set of speed in the kind of differentiation that allow us to win.

Speaker Change #212: Gave us a set of speed in the kind of differentiation that allow us to win.

Speaker Change #148: I think it will be public.

Speaker Change #213: I think it will be public.

Probably in a few months.

Speaker Change #214: Probably in a few months.

Speaker Change #149: But right now we cannot disclose more than what we did but we are very happened is as part of what it's.

Speaker Change #215: But right now we cannot disclose more than what we did but we are very happen. This is part of what it's.

Speaker Change #149: For us consider a very good start for the year.

Speaker Change #216: For us consider a very good start for the year.

Speaker Change #216: Year.

Ken: Great. Thanks, Ken.

Ken: You're right.

Ken: Right.

Puneet Jain: Thank you Ryan next question comes from Puneet Jain from Jpmorgan.

Eduardo Galvao: Thank you, Ryan. The next question comes from Puneet Jain from J.P. Morgan. Puneet, go ahead.

Speaker Change #152: And then perhaps.

Speaker Change #219: And then perhaps.

Puneet Jain: Hey, Thanks for taking my question I have a quick question on like this growth improvement.

Puneet Jain: Hey, thanks for taking my question. I have a quick question on this growth improvement. Are, is this growth improvement in any way related to clients willing to do more Gen-AI projects? Like some of those Gen-AI projects, is that driving this growth, the sequential growth that you expect for the rest of the year? And the second part to that question is we often hear that many of those projects are still stuck in the POC stage, like they're still in the pilot stage. So what are some of the top constraints to adoption from the client's perspective?

Puneet Jain: Is this growth improvement in any way related to clients willing to do more <unk> projects like some of those 10 AI projects is that driving this growth sequential growth that you expect for rest of the year.

Speaker Change #153: And second part to that question is we often here like many of those projects are still stuck in POC stage like they are still in pilot stage. So what are some of the top constrains to adoption from clients perspective.

Puneet Jain: And second part to that question is we often here like many of those projects are still stuck in POC stage like they are still in pilot stage. So what are some of the top constrains to adoption.

Speaker Change #220: Clients perspective.

Speaker Change #154: Sure. Thank you <unk>.

Speaker Change #220: Sure. Thank you for being a great see you.

Cesar Nivaldo Gon: Sure. Thank you, Puneet. Great to see you.

Speaker Change #155: Well basically there is I think the main driver.

Speaker Change #220: Well basically there is I think the main.

Cesar Nivaldo Gon: Well, basically, I think the main driving force for our growth is AI as a tool for efficiency in our service. And we, of course, companies continue to invest in and need to improve their digital experience. And now we have the possibility to really streamline a lot of initiatives based on the efficiency we can achieve by applying AI in the end-to-end production flow of digital solutions. So this is the main driver.

Speaker Change #154: Driving.

Speaker Change #220: Driving.

Speaker Change #156: As for our growth is.

Speaker Change #221: <unk> for our growth is.

Speaker Change #157: AI as a tool for efficiency in our services and we of course companies continuing to invest in need.

Speaker Change #222: AI as a tool for efficiency in our services and we of course companies continuing to invest in need.

Speaker Change #158: To improve their digital experience and now we have the possibility.

Speaker Change #223: To improve their digital experience and now we have the possibility.

Speaker Change #158: To really streamline a lot of initiatives based on the efficiency we can get.

Speaker Change #223: To really streamline a lot of initiatives based on the efficiency we can get.

Speaker Change #158: <unk> AI and the and to win.

Speaker Change #224: Play AI in the end to win.

Speaker Change #159: Producing flow of dish.

Speaker Change #225: Producing flow.

Speaker Change #225: Digital solutions. So this is the main drive this is basically what we were foreseeing with C&I and flow and now we are we are seeing the kind of results and differentiation.

Speaker Change #159: Digital solutions. So this is the main drive this is basically what we were foreseeing with C&I and flow and now we are we are seeing the kind of results and differentiation.

Cesar Nivaldo Gon: This is basically what we were foreseeing with the Ci&T flow. And now we are seeing the kind of results and differentiation that will be available to us. And in parallel, we are creating specific offerings. I mentioned, for example, legacy modernization.

Speaker Change #159: For us.

Speaker Change #225: For us.

Speaker Change #159: Parallel what we create as specific offerings I mentioned <unk>.

Speaker Change #225: Parallel what we create as specific offerings I mentioned.

Speaker Change #160: For example, legacy modernization, we create a framework based on AI to streamline so we call AI boosted app modernization. So we can do things that.

Speaker Change #226: For example, legacy modernization, we create a framework based on AI to streamlined so we call AI boosted at modernization. So we can do things that.

Cesar Nivaldo Gon: We create a framework based on AI to streamline. So we call it AI-boosted app modernization. So we can do things that without AI would take years, and now we can do in a matter of months because of applying some AI agents that we develop and incorporate into our Ci&T flow platform. Cloud migration is another thing. Everyone knows that being fully in the cloud is mandatory if you want to leverage future AI benefits.

Speaker Change #160: We dubbed AI would take years and now we can do in a matter of months because of apply some AI agents that we incorporate with development incorporated in all of our <unk> platform cloud migration is another thing everyone knows that too.

Speaker Change #227: We dug AI would take years and now we can do in a matter of months because of apply some AI agents that we incorporate with development incorporated in our <unk> platform cloud migration is another thing everyone knows that too.

Speaker Change #160: To be fair.

Speaker Change #227: To be fair.

Speaker Change #161: Fully in the cloud is.

Speaker Change #228: Fully in the cloud is.

Speaker Change #162: It's mandatory if you want to leverage future AI benefits, but the companies are.

Speaker Change #229: It's mandatory if you want to leverage future AI benefits, but the companies are.

Cesar Nivaldo Gon: But companies are still working on it, and we have a very compelling new offering based on AI to speed up AWS, Google, or Microsoft cloud migration. And that's helping a lot to also drive demand for us. So basically, it's more about efficiency and speed in creating this foundational digital infrastructure than new use cases based on generative AI. There is a lot of experimentation, POCs, around improving customer service experiences and improving a lot of customer-facing use cases.

Speaker Change #163: But working on it and we have a very compelling new offering based on AI to speed up AWS.

Speaker Change #230: But working on it and we have a very compelling new offering based on AI to speed up a.

<unk>, AWS, Google or Microsoft Cloud migration, and that's helping a lot to chew also driving demand for us so basically it's more about efficiency and speed up.

Speaker Change #230: <unk>, AWS, Google or Microsoft Cloud migration, and that's helping a lot to two also driving demand for us. So basically it is more about efficiency and speed up.

Speaker Change #164: Creating this foundational digital infrastructure than new use cases based on general <unk>. There is a lot of experimentation poc's around improving customer service experience is improving.

Speaker Change #231: Creating this foundational digital infrastructure than new use cases based on general <unk>. There is a lot of experimentation poc's around improving customer service experiences improving.

Speaker Change #164: A lot of <unk>.

Speaker Change #231: A lot of <unk>.

Speaker Change #164: Customer facing.

Speaker Change #231: Customer facing.

Speaker Change #165: The use case, but it is too early stage I think the whole.

Speaker Change #232: The use case, but it is too early stage I think the whole.

Cesar Nivaldo Gon: But this is still early stage. I think the whole foundational technology is not mature enough for big bets around experiences. But it will evolve. It clearly will be there. We are foreseeing that probably use case around the AI experience. So when we move away from screens and buttons and start doing interactions with the machine through natural language interfaces and so on, it will happen from next year on in a more aggressive way.

Foundational technology is not mature enough for big bets around.

Speaker Change #232: Foundational technology is not mature enough or big bets are wrong.

Speaker Change #165: Her experience, but it will evolve, which clearly will be there that we are foreseeing that probably use case around.

Speaker Change #233: Her experience, but it will evolve, which clearly will be there that we are foreseeing that probably use case around.

Speaker Change #166: Experience so when we move away from screens in bottoms and he started doing.

Speaker Change #234: Our experience so when we move away from screens in bottoms and they started doing.

Speaker Change #167: Interactions with the machine through natural language.

Speaker Change #235: Interactions with the machine through natural language.

Speaker Change #167: The interfaces. So one will happen for the next year or in a more aggressive way, but now as a moment of experience, creating the capabilities. It really streamlines govs and everything infrastructure, having data infrastructure mainly.

Speaker Change #235: The interface and so what will happen for the next year or in a more aggressive way, but now as a moment of experience, creating the capabilities. It really streamlines govs and everything infrastructure, having data infrastructure mainly.

Cesar Nivaldo Gon: But now is a moment of experience, creating the capabilities and really streamlining governance and everything infrastructure, everything data infrastructure, mainly, companies need to be able to play the experience war that is ahead. There will be a lot of invention around new ways to interact with consumers, and we will prepare our clients for this moment.

Speaker Change #168: Companies need to to be able to play.

Speaker Change #236: Companies need to to be able to play.

I would say the experience one that is ahead.

Speaker Change #237: I would say the experience one that is ahead.

Speaker Change #168: There is.

Speaker Change #238: There is there will be a lot of wells.

Speaker Change #168: We'll be a lot of wells.

Speaker Change #168: Mention around new ways to interact with.

Speaker Change #239: Nation around new ways to interact with.

Speaker Change #169: With our consumers and we will prepare that.

Speaker Change #240: <unk> and we will prepare that.

Speaker Change #170: Our clients for this moment.

Speaker Change #241: Our clients for this moment.

Speaker Change #171: Yeah, no thanks for that answer.

Speaker Change #243: Yeah, no thanks for that answer.

Puneet Jain: Thanks for that answer, and thank you.

Speaker Change #242: Thank you.

Speaker Change #172: You put it.

Eduardo Galvao: Thank you for that.

Speaker Change #242: Right.

Joey Bassi: Thank you Paul our next question comes from Joey Bassi from Canaccord.

Thank you Paul our next question comes from Joel <unk> from Canaccord Genuity your.

Eduardo Galvao: Thank you, Puneet. Our next question comes from Joey Vafi from Kanakot. Joey, your line is open.

Your line is open.

Joel <unk>: Your line is open.

Joey Bassi: Thank you Eduardo good morning, everyone I was just wondering.

Joel <unk>: Thank you Eduardo good morning, everyone I was just wondering.

Joseph Anthony Vafi: Thanks, Eduardo. Good morning, everyone.

Joey Bassi: If we could drill down in verticals a little bit in the outlook clearly some verticals are still weak and maybe we just focus on those.

Speaker Change #245: If we could drill down in verticals a little bit in the outlook clearly some verticals are still weak and maybe we just focus on those.

Joey Bassi: Does your outlook this year for TMT and telco.

Speaker Change #246: Is your outlook this year for TMT and telco.

Joseph Anthony Vafi: I was just wondering if we could drill down on verticals a little bit in the outlook. You know, clearly, some verticals are still weak, and maybe we should just focus on those. What is your outlook this year for TMT and telco relative to how that may be in your guidance at this point? Do you think that those weak verticals can stabilize and at least, you know, get to maybe flat sequential results? Or do you think there's still deterioration in those verticals this year? And then I'll have a follow-up.

Joey Bassi: Relative to.

Speaker Change #246: Relative to.

Speaker Change #174: How would that maybe in your guidance at this point.

Speaker Change #247: That may be in your guidance at this point.

Speaker Change #248: Do you think that those weak verticals can stabilize in that lease.

Speaker Change #174: Do you think that those weak verticals can stabilize in that.

Speaker Change #174: East.

Speaker Change #248: <unk>.

Speaker Change #175: Don't get too maybe flat sequential results or do you think theres still.

Speaker Change #249: Get to maybe flat sequential results or do you think theres still.

Speaker Change #176: Deterioration in those verticals this year and then I'll have a follow up.

Speaker Change #250: Deterioration in those verticals this year and then I'll have a follow up.

Speaker Change #177: Thank you Joey.

Thank you Joey.

Cesar Nivaldo Gon: Thank you, Joe. Well, I think we grouped tech and telecom in the same vertical, but I think there are two different perspectives. I think telecommunications is stable, and even increasing, especially among some of our largest clients in this vertical in the UK and Brazil. As you know, we have BT expanding in the UK, and we have Telefónica Vivo expanding in Brazil. So telecom is in a good fashion, and we see this vertical expanding over the year as we expand our revenues.

Speaker Change #178: Well I think I think we group.

Speaker Change #251: Well I think I think we group.

Speaker Change #252: Tech and telecom and the same.

Speaker Change #179: And calico and the same.

Speaker Change #179: Vertical, but I think there are there is there are two different perspective I think.

Speaker Change #253: Vertical, but I think there are there is there are two different perspective I think.

Speaker Change #180: Telecommunications is stable, even grazing, especially among <unk>.

Speaker Change #254: Telecommunications is stable, even grazing, especially amo.

Speaker Change #181: Some of our largest clients in this vertical in UK and Brazil.

Speaker Change #255: Some of our largest clients in this vertical in UK and Brazil.

Speaker Change #182: As you know we have BT expanding okay.

Speaker Change #256: As you know we have been expanding in U K, we have telefonica vivo expanding in Brazil. So telecom is in a good fashion and we see this vertically expanding.

Speaker Change #183: We have telefonica vivo expanding in Brazil. So telecom is in a good fashion and we see this vertically expanding along the year as we expand.

Speaker Change #257: Along the year as we expand.

Speaker Change #184: Or revenues that is different.

Speaker Change #258: Or revenues that is different.

Cesar Nivaldo Gon: Technology is different, but I think it's still under-challenged. Volatility in the demand from TACI, and we don't see over the year that this will be stable anyway. For Lucky, we have very low exposure to TACI. We are more exposed to telecom, but even though we are prepared for a lot of volatility in the tech space as digital natives, and this kind of company is still facing challenges in the funding part of their business.

Speaker Change #184: I think.

Speaker Change #258: Im saying.

Speaker Change #185: It's a shoe under challenging there is a lot of.

It is true under challenging there is a lot of.

Speaker Change #185: Volatility in the demand from Turkey.

Speaker Change #259: Volatility in the demand from Turkey.

Speaker Change #186: And we don't see.

And we both see along the year.

Speaker Change #187: Going to your debt.

Speaker Change #187: Uh huh.

Speaker Change #260: It will.

Speaker Change #188: B stable anyway for Lucky.

Speaker Change #261: B stable anyway for Lucky.

Speaker Change #262: We have very low exposure Becky we are more exposed to telco.

Speaker Change #189: Have very low exposure perspective, we are more exposed to telco.

But even though we are prepared for a lot of.

Speaker Change #190: But even though we are prepared for a lot of.

Speaker Change #263: Volatility in there.

Speaker Change #191: Volatility in the <unk>.

Speaker Change #263: The tech space.

Speaker Change #192: <unk> space.

Speaker Change #193: As digital natives.

Speaker Change #264: As digital natives and.

Speaker Change #193: <unk>.

Speaker Change #193: And just kind of companies are still facing challenges.

Speaker Change #265: And then just kind of companies are still facing challenges.

Speaker Change #194: When they're under funding BARDA, if their business, but for borrowers is small, but even though we are penetration and reacting accordingly. So we do not expect that deck is going to be.

Speaker Change #266: When they're on their funding BARDA, if their business, but for borrowers is small, but even though we are penetration and reacting accordingly. So we do not expect that deck is going to be.

Cesar Nivaldo Gon: But for us, it's small, but even though we are paying attention and reacting accordingly. So we do not expect that tech is going to be, we'll have a great year in 2024, maybe improving only from next year on.

Speaker Change #195: You'll have a great year, a 284 maybe.

Speaker Change #267: You'll have a great year in 2018 for maybe.

Speaker Change #195: Improving early next year or.

Speaker Change #268: Improving only so.

Speaker Change #268: Next year or.

Very good thank you for that color since our and then secondly.

Speaker Change #269: Very good thank you for that color since our and then secondly.

Joseph Anthony Vafi: Very good. Thank you for that, Cesar. And then secondly, on your operating margin trajectory for this year and in the guidance... Clearly, we have operating leverage in the business to a certain degree with sequential increases in revenue, but I was wondering how AI internally could be helping operating margins this year, and does AI have the potential internally to take you to maybe higher watermarks or higher levels of operating margin over time? Thank you.

Speaker Change #196: On your operating margin trajectory for this year and the guidance.

Speaker Change #270: On your operating margin trajectory for this year and in the guidance.

Speaker Change #198: Clearly, we have operating leverage in the business.

Speaker Change #271: Clearly, we have operating leverage in the business.

Speaker Change #197: Certain agree with.

Speaker Change #272: Certain agree with.

Speaker Change #199: Sequential increases in revenue, but wondering how AI internally could be helping operating margins this year.

Speaker Change #273: Sequential increases in revenue, but wondering how AI internally could be helping operating margins this year.

Speaker Change #200: It does.

Speaker Change #274: It does have the.

Speaker Change #200: Potential internally.

Speaker Change #275: Tensile internally.

Speaker Change #201: Take you to maybe higher watermarks or higher levels.

Speaker Change #276: Take you to maybe higher watermarks or higher levels.

Speaker Change #202: Operating margin overtime. Thank you.

Speaker Change #277: Operating margin overtime. Thank you.

Speaker Change #203: Sure Sterling.

Sterling: Sure Sterling.

Stanley Rodrigues: Sure. Stanley, you want to get this one, and I can add some comments.

Speaker Change #204: There is one and I can add some comments.

There is one and I can add some comments.

Speaker Change #203: Yeah.

Sterling: Yeah.

Speaker Change #203: Paul.

Paul.

Stanley Rodrigues: Yeah, well, um, talking about margin... Seasonally, we have a salary increase for most of our people in Brazil in January. So, typically, by design, we have the first quarter with lower margins, and then throughout the year, we will pass on that cost to our clients throughout the year, throughout the contract anniversaries. And, of course, for the near future, most of the SG&A, they are fixed expenses, for example. And with the growth, we should provide operating leverage as we resume growth. Additionally, we continue to focus on productivity gains. We have this cost management, a very diligent cost management approach. And yeah, we're forecasting this typical seasonality to happen on the margins throughout the year.

Speaker Change #205: Talking about margin.

Speaker Change #279: Talking about margin.

Speaker Change #205: Recently.

Speaker Change #279: Suddenly.

Paul: We have salaries increase for the most of our people in Brazil in January so typically by design, we have the first quarter with lower margins and then throughout the year, we will pass on.

Paul: We have salaries increase for the most of our people in Brazil in January so typically by design and we have the first quarter with lower margins and then throughout the year, we will pass on.

Paul: That cost to our clients throughout the year for the contract anniversaries.

Paul: That cost to our clients throughout the year.

Paul: Contract anniversaries.

Paul: And.

Paul: <unk>.

<unk>.

Of course for the near future most of the SG&A fixed expenses for example, and with the growth we should provide operating leverage and.

Speaker Change #281: Of course for the near future most of the SG&A fixed expenses for example, and with the growth we should provide operating leverage and as.

Speaker Change #207: As we resume growth.

Speaker Change #281: As we resume growth.

Speaker Change #207: Additionally, we continue to focus on productivity gains.

Speaker Change #282: Additionally, we continue to focus on productivity gains.

Speaker Change #207: We have this cost management very diligent cost management approach.

Speaker Change #283: We have this cost management very diligent cost management approach.

Speaker Change #207: Yes, we're forecasting this typical seasonality to happen.

Speaker Change #283: Yes, we're forecasting this typical seasonality to happen.

Speaker Change #207: In the margins for the year.

Speaker Change #283: And the margins for the year.

Speaker Change #208: The fees are doing.

Speaker Change #284: Our fees are doing.

Cesar Nivaldo Gon: Yeah, I would just add, yeah, we have a huge bet on reshaping all key internal processes around AI. I mentioned our sales reinvention in the call, and it's amazing the kind of effectiveness and benefit we can get from that. We are applying AI across the board in our HR practices, hiring, and the way we do and develop our teams. And in every single area of Ci&T, you're going to see both investment and expectations about turning Ci&T into an end-to-end AI-driven company.

Speaker Change #208: Yes.

Speaker Change #284: Yes.

Speaker Change #208: Just a component of it.

Speaker Change #285: <unk> added component of it.

Speaker Change #209: As you know we have a huge battle.

Speaker Change #286: As you know we have a huge battle.

Speaker Change #209: Reshape.

Speaker Change #286: Reshape.

Speaker Change #209: All key internal processes around AI a nation.

Speaker Change #287: All key internal processes around AI and nation.

Speaker Change #210: Our sales reinvention.

Speaker Change #288: Our sales reinvention.

Speaker Change #210: On the call.

Speaker Change #288: In the call.

Speaker Change #210: It's amazing the kind of.

Speaker Change #289: It's amazing the kind of.

<unk>.

Speaker Change #289: <unk>.

Speaker Change #211: <unk> benefits, we can get from that we are applying.

Speaker Change #290: And benefits, we can get from that we're applying.

Speaker Change #211: AI across the board in our HR, Bret is hiring and the way, we do and develop our teams in and in every single area of guarantee youre going to see both.

Speaker Change #290: Across the board.

Speaker Change #291: <unk> breadth is hiring and the way, we do and develop our teams in and.

Speaker Change #291: In every single area of guarantee youre going to see both.

Speaker Change #212: Investment in expectations about journey.

Speaker Change #292: Last minute expectations about turning the CIA.

And to an AI first.

Speaker Change #293: And to win.

Speaker Change #212: First company and another thing.

Speaker Change #294: <unk> company and another thing.

Speaker Change #212: And this will leverage to two <unk>.

Speaker Change #295: This will leverage to two <unk>.

Speaker Change #213: More space to two more space to leverage.

Speaker Change #295: More space to two.

More space to leverage.

Efficient.

Speaker Change #295: Efficient.

Cesar Nivaldo Gon: And another thing, and this will lead to, I think, more space to leverage efficiency in the future. Another thing is that in some contexts, our differentiation in terms of offering gives us some price elasticity. We are now totally focused on capturing our differentiation as growth, not margins, but there is some space where the kind of differentiation we can get, and I mentioned some offerings that are completely outstanding around AI efficiency, and so there is some space for some price elasticity, and we expect to see this gradually happening over the quarters, and especially from next year on, so internal efficiency and also some price competitiveness or some elasticity based on our differentiations. Great.

Speaker Change #213: In the future another thing in some context.

Speaker Change #296: In the future another thing in some context.

Speaker Change #213: Our differentiation in terms of offering give us some price elasticity.

Speaker Change #297: Our differentiation in terms of offering give us some price elasticity.

Speaker Change #214: We are now totally folks on capturing our differentiation is growth not margin, but there is some space, where the kind of differentiation.

Speaker Change #297: We are now totally focused on capturing our differentiation is growth not margin, but there is some space, where the kind of differentiation.

Speaker Change #215: We can get and I mentioned some offerings that are being.

Speaker Change #298: We can get and I mention some offerings that are being.

Speaker Change #215: Completely.

Speaker Change #298: Completely.

Speaker Change #215: Outstanding around AI solutions, and so there is some space for some price elasticity.

Outstanding around AI solutions, and so there is some space for some price elasticity.

Speaker Change #298: Got it.

Speaker Change #215: We expect to see this gradually happening.

Speaker Change #298: Expect to see this gradually happening.

Uh huh.

Speaker Change #215: Along the quarters, and especially from next year or so internal efficiency and also some.

Speaker Change #299: Along the quarters, and especially from next year or so internal efficiency and also some.

Speaker Change #215: Price competitiveness tour similar to city based on.

Speaker Change #300: Price competitive or sort of similar to city based on.

Speaker Change #216: Our differentiations.

Speaker Change #301: Our differentiations.

Speaker Change #217: Great. Thank you very much.

Speaker Change #302: Great. Thank you very much.

Joseph Anthony Vafi: Great. Thank you very much.

Speaker Change #218: Thank you.

Speaker Change #303: Thank you.

Speaker Change #219: Thank you Joe.

Joe: Thank you Joe.

Speaker Change #219: Our next question comes from Moshe Kathryn.

Joe: Our next question comes from Moshe Kathryn.

Eduardo Galvao: Thank you. Our next question comes from Moshe Katri, with Ed Wedbush. Moshe, your line is open.

Wedbush: Wedbush motion your line is open.

Speaker Change #221: Thanks, and congrats for actually pretty impressive result, so going back to the <unk>.

Moshe Kathryn: Thanks, and congrats for actually a pretty impressive result, so going back to the <unk>.

Moshe Katri: Thanks and congratulations for actually a pretty impressive result. So going back to the Nungap EBITDA margin discussion, you had some pressure this quarter. I think it was 300 bps.

non-GAAP EBITDA margin discussion. So you had some pressure this quarter I think it was 300 bps you alluded to comp compensation increases that typically happen in Q1.

Speaker Change #307: non-GAAP EBITDA margin discussion. So you had some pressure this quarter I think it was 300 bps you alluded to comp compensation increases that typically happen in Q1.

Moshe Katri: You alluded to compensation increases that typically happen in Q1. Can we get some color on how high these increases were this quarter? And then also, in the context of margins, can you comment on pricing or repricing of contracts in this environment? Are you still going through this exercise with clients? And what is the magnitude of any sort of pricing pressure we're seeing right now? Thanks a lot.

Speaker Change #222: Can we get some color on how high where these increases this quarter.

Speaker Change #308: Can we get some color on how high where these increases this quarter.

Speaker Change #222: Then also in the context of margins.

Speaker Change #308: Then also in the context of margins.

Speaker Change #223: Can you comment on pricing or repricing of contracts in this environment.

Speaker Change #309: Can you comment on pricing or repricing of contracts in this environment.

Speaker Change #224: Are you still going through this exercise with clients in.

Speaker Change #309: Are you still going through this exercise with clients.

Speaker Change #310: What is the magnitude of any sort of pricing pressure were seeing right now thanks a lot.

Speaker Change #225: What is the magnitude of any sort of pricing pressure were seeing right now thanks a lot.

Thank you Moshe.

Moshe Kathryn: Thank you Moshe.

Moshe Katri: Thank you, Moshe. Well, let's start with the first two questions.

Speaker Change #225: <unk>.

Moshe Kathryn: Yes.

Speaker Change #226: Start with.

Speaker Change #311: Start with.

Stanley Rodrigues: In comparison, if we go back to 2023, we saw that in a typical quarter at that time, we recorded more than 19% of EBITDA. And as a comparison, we should consider that in that quarter, we had higher than expected growth that really positively impacted our margin at that time. But throughout our history, we always have a first quarter with low margins, and this year, it happened as expected. So, and your question about how high it was?

Speaker Change #227: The the first two question.

Moshe Kathryn: The the first two question.

Speaker Change #228: In a comparison, if we go back to 'twenty to 'twenty three we saw in a typical a typical quarter at that time.

Speaker Change #312: In a comparison if you go back to 'twenty to 'twenty three we saw in a typical a typical quarter at that time.

Moshe Kathryn: We recorded more than 19% in EBITDA and as a comparison.

Speaker Change #313: We recorded more than 19% in EBITDA and as a comparison.

We should consider that in that quarter, we had a higher than expected growth that really positively impacted our margin at that time, but throughout our history. We always have first quarter with lower margins and this and this year it happens.

Speaker Change #314: We should consider that in that quarter, we had a higher than expected growth that really positively impacted our margin at that time, but throughout our history. We always have first quarter with lower margins and this and this year it happens.

Speaker Change #230: As expected so.

Speaker Change #314: As expected so.

Speaker Change #230: And.

Speaker Change #314: And.

Speaker Change #230: <unk>.

Speaker Change #314: <unk>.

Speaker Change #231: Your question about how high it was it so it was around 5%.

Your question about how high it was it so it was around 5%.

Speaker Change #232: The cost increase and in the in the whole majority of our payroll.

Speaker Change #315: Cost inquiries and in the in the whole majority of our payroll.

Speaker Change #232: With regard to passing onto those clients typically and we have.

Speaker Change #316: With regard to passing onto those clients typically we have.

Stanley Rodrigues: So, it was around a 5% cost increase on the whole majority of our payroll. With regard to passing on the cost of inflation to those clients, typically, especially for contracts based on our Brazilian clients, we have, at the contract anniversaries, we have automatic clauses to pass on inflation, for example. And we always have opportunities to sit with our clients and redesign the whole relationship in terms of adjusting things, considering those additional features, let's say.

Speaker Change #233: Especially for contracts based in any for our Brazilian plants, we have in the contract contract anniversaries.

Speaker Change #317: Especially for contracts based in <unk> for our Brazilian clients, we have and the contract contracted anniversaries will have them.

Speaker Change #233:

Speaker Change #233: Automatic clauses to pass on inflation for example.

Speaker Change #318: Automatic clauses to pass on inflation for example.

Speaker Change #234: But more than that we also we have organic let's say relationships with our clients and when we talk about price, we're always adding new.

But more than that we also we have our organic let's say relationships with our clients and when we talk about price, we're always adding new.

Speaker Change #235: It features new technologies, new skills, and we always have opportunities to seed with our clients and redesign the whole relationship in terms of adjusting things considering those at addition additional features that.

Speaker Change #319: It features new technologies, new skills, and we always have opportunities to seed with our clients and redesign the whole relationship in terms of adjusting things considering those at addition additional features that.

Speaker Change #236: So that happens in.

Speaker Change #319: So that happens in.

Stanley Rodrigues: So, that happens, and that's what we expect all the years. So, it's spread out. So, we don't have a certain date for the cost increase in January; we have certain dates, but we spread them out over the year for those conversations with the client. So that's the cause of this seasonality, as you see, quarter by quarter, our margins would be increasing as a result of that dynamic.

Speaker Change #237: That's what we expect for the year. So it's it's a spread it so we don't have a.

Speaker Change #320: That's what we expect for all the years. So it's it's a spread it so we don't have a.

Speaker Change #237: As we have a certain date for the cost increase in January we have certain dates but spread it throughout the year for those conversation with the clients. So that's the what but that's the cause of this seasonality.

Speaker Change #321: As we have a certain date for the cost increase in January we have certain dates but spread it throughout the year for those conversation with the clients. So that's the what what that's the cause of this seasonality.

Speaker Change #237: As youll see quarter by quarter, our margins would be increasing as a result of that dynamic and just.

Speaker Change #322: As youll see quarter by quarter, our margins would be increasing as a result of that dynamic.

Speaker Change #238: Just a follow up about guidance.

Speaker Change #323: Just a follow up about guidance.

Stanley Rodrigues: And just to follow up on guidance for the user, is this all organic, or are there some acquisitions embedded in guidance? No, it's 100% organic.

Speaker Change #238: I think Bruce is this all organic.

Speaker Change #324: I think Bruce is this all organic.

Bruce: Or there is some acquisitions embedded in guidance.

Or there is some acquisitions embedded in guidance.

Bruce: It's 100% organic.

It's 100% organic.

Cesar Nivaldo Gon: No, it's 100% organic. There's no acquisition in this guidance. Moshe, let me address the pricing part of your question. I think, as Stanley mentioned, part of this is automatic. In the Brazilian standard, we readjust salaries by inflation, by law, in January, and we have an annual automatic readjustment of contracts throughout the year. For the global contracts based on where we use Brazilian teams, we normally count on the FX that normally more than compensates for any difference in terms of cost structure.

Bruce: There is no acquisition in this.

Speaker Change #325: There's no organization in this.

Bruce: Guidance.

Speaker Change #325: Guidance.

Speaker Change #240: Let me address the pricing part of your question I think is as Tony mentioned this part of business automatic Brazilian is done there.

Speaker Change #326: Let me address the pricing part of your question I think is as Tony mentioned as part of business automatic at Brasilia is done there.

Bruce: No.

Speaker Change #326: Uh huh.

Speaker Change #241: We readjust salaries by inflation by law in January and we have an annual.

Speaker Change #327: And we readjust salaries by inflation by law in January and we have an annual.

Speaker Change #242: Nomadic readjustment of builders, along the year for the global context based on where we use Brazilian.

Speaker Change #328: Nomadic readjustment of programs alone a year for the global context based on where we use Brazilian.

Speaker Change #243: <unk> teams, we count on normally we count on the FX that normally more than compensate any any difference in terms of cost structure, but in general.

Speaker Change #329: <unk> teams, we count on normally we count on the FX that normally more than compensate any any difference in terms of cost structure, but in general.

Cesar Nivaldo Gon: But in general, of course, in the current environment, there is much less price elasticity than in the past, except in some areas where AI is really giving us, I would say, a matched level of efficiency. But in general, it's a market where we need to pay attention to pricing all the time. And as Stanley mentioned, our motto is having a discussion once a year with our clients about price. It's a moment where we also discuss new capabilities, and new geographic locations we are adding to the deal.

Speaker Change #243: Of course with the current environment, there is much less price elasticity than in the past accepting some areas, where AI is really giving us.

Speaker Change #330: Of course with the current environment, there is much less price elasticity than in the past accepting some areas, where AI is really giving us.

Speaker Change #244: Ah matched level of efficiency, but in general is not.

Speaker Change #331: Say unmatched level of efficiency, but in general is not.

Speaker Change #245: As a market where we can.

Speaker Change #332: As as a mark to where we were.

Speaker Change #245: We need to pay attention on.

We need to pay attention on.

Speaker Change #246: And pricing all the time and is still Imation. Our motto is having once a year with our discussion.

And pricing all the time and is still a nation. Our motto is having once a year with our clients a discussion about price.

Speaker Change #246: Discussion about price.

Speaker Change #247: There is a moment, where we also discuss new capabilities, new geographical locations, where we are adding.

Speaker Change #333: As a moment, where we also discuss new capabilities, new geographical locations, where we are adding to the deal and so as we we normally update our global Master service agreement was a year to really reflect our capabilities and geographic.

Cesar Nivaldo Gon: And so this, we normally update our global master service agreement once a year to really reflect our capabilities and geographic locations expansion. So this is also an opportunity to manage pricing in a portfolio way. It's, I think it's, we have been doing this for three decades now, so I think it's part, it's an intrinsic part of our business to maintain a good level of contribution and Graz Marti. Thanks for the color.

Speaker Change #248: For the deal and so as we we normally update our global Master service agreement was a year or two to really reflect our capabilities and geographic locations.

Speaker Change #334: <unk> expansion. So this is also an opportunity to manish.

Speaker Change #249: <unk>. So this is also an opportunity.

Speaker Change #249: Manish.

Speaker Change #335: Pricing in a portfolio way so.

Pricing in a portfolio way so it's.

Speaker Change #335: <unk>.

Speaker Change #249: I think as we have been doing this for it.

Speaker Change #335: I think as we have been doing this for three.

Speaker Change #335: Decades, now so I think it's part is an increasingly part of our business too.

Speaker Change #249: Decades, now so I think it's part is an increasingly part of our business to maintain a good level of.

Speaker Change #335: We maintain a good level of.

Speaker Change #249: Contribution in gross margin.

Speaker Change #336: Contribution in gross margin.

Speaker Change #250: Thanks for the color.

Speaker Change #337: Thanks for the color.

Speaker Change #251: My pleasure.

Speaker Change #338: My pleasure.

Thank you Moshe.

Marcia: Thank you Marcia will.

Speaker Change #253: I have two questions here from Bryan Bergin from TD Cowen via email, let me start with the first one regarding the workforce planning so head count was down modestly in the first quarter. What is your expectation as you move through the second quarter and the balance of the year.

Speaker Change #338: I have two questions here from Bryan Bergin from TD Cowen via email, let me start with the first one regarding the workforce planning so head count was down modestly in the first quarter. What is your expectation as you move through the second quarter and the balance of the year.

Eduardo Galvao: We have two questions here from Brian Bergen from TD Cowen via email. Let me start with the first one regarding workforce planning. So headcount was down modestly in the first quarter. What is your expectation as you move through the second quarter and the balance of the year? Talk about the balance of utilization versus the need to add incremental engineering to support the growth field.

Speaker Change #254: Talk about the balance optimization versus the need to add incremental engineering to support the growth.

Speaker Change #339: Talk about the balance optimization versus the need to add incremental engineering to support the growth.

Speaker Change #255: Good day everyone.

Speaker Change #340: Good day everyone.

Speaker Change #256: So we're expecting the.

Speaker Change #340: So we're expecting the.

Bruno Guicardi: So we're expecting the headcount to go up in Q2 in line with revenue, right? Because our utilization rate in Q1 is already very high. So there's very little space there in front of the bench to tap into.

Speaker Change #341: The head Count go up in Q2 in line with revenue right because.

Speaker Change #257: Head Count go up in Q2 in line with revenue right because oh.

Speaker Change #342: Our utilization rate in Q1 is already very high.

Speaker Change #258: Utilization rate in Q1 is already very high so there's very little space there.

Speaker Change #343: So theres very little space there.

Speaker Change #259: For a bench.

Speaker Change #343: Bench.

Speaker Change #259: Up into so we.

Speaker Change #344: Tap into so we expect that the.

Speaker Change #259: <unk>.

Bruno Guicardi: So we expect that our headcount will go proportionally proportionally with revenues, increasing so, and throughout the year, actually, Q3 and Q4 as well.

Speaker Change #260: The head count grow proportionately with revenues.

Speaker Change #345: The head count will grow proportionally with revenues.

Speaker Change #260: Increased so.

Speaker Change #345: Increased so.

Speaker Change #261: And throughout the year actually for Q3 and Q4 as well.

Speaker Change #346: And throughout the year actually for Q3 and Q4 as well.

Speaker Change #261: Thank you Bruno and the auto question as broadening regarding Gen. AI. So what's the penetration of flow within our client base have you noted an uptick in engagement size.

Speaker Change #346: Thank you Bruno and the auto question as broadening regarding Gen. AI. So what's the penetration of flow within our client base have you noted an uptick in engagement size.

Eduardo Galvao: Thank you, Bruno. And the other question is regarding Gen-AI. So what's the penetration rate of flow within your client base? Have you noted an uptick in engagement size?

Speaker Change #262: Yes basically.

Speaker Change #347: Yes, basically thank you for the question basically we are ever single engagement.

Cesar Nivaldo Gon: Yeah, basically, thank you for the question. Basically, we are doing every single engagement of Ci&T in a Ci&T flow engagement. Sometimes it's even transparent to our clients. They are just seeing the kind of efficiency and velocity we can provide. And sometimes it's a more structured deal based on building new agents for specific... of each client contact, but in general, Bruno mentioned we have more than 2,000 CI&T-ers already onboarded on our platform, and that number will continue to increase throughout the year.

Speaker Change #263: <unk> for the question basically we are ever single engagement both city not.

Speaker Change #347: Ignite.

Speaker Change #264: Guarantee flow engagement, it's sometimes it's even transparent to our clients. They are just seeing the kind of efficiency.

Speaker Change #348: Guaranty through engagement.

Speaker Change #349: Sometimes it's even towards Barry.

Speaker Change #350: Clients Theyre, just seeing the kind of efficiency.

Speaker Change #351: And the velocity.

Speaker Change #265: Lastly, we we can provide and sometimes as a moisture to do based on building new agents for specifics.

Speaker Change #352: We can provide and sometimes as a moisture to do based on building new Asians for specifics.

Speaker Change #353: Of each client contact so but in.

Of each client carpet so but in general.

Speaker Change #353: <unk>.

Speaker Change #353: Bruno mention we have more than 2000 <unk> tiers are read on boarded.

Speaker Change #265: Bruno mention we have more than 2006.

Speaker Change #266: And tears a read on boarded.

Speaker Change #266: Our platform.

Bruno: Our platform.

Speaker Change #267: We will continue to increase although the year I think we have a very.

Bruno: We will continue to increase although the year I think we have a very.

Bruno: The aggressive growth.

Cesar Nivaldo Gon: I think we have very aggressive goals for adoption, and I think by now we know how to do that. It's not easy to turn sub-engineers designers, strategists, testers, architects, everyone to improve the way they work to incorporate AI. But I think we have the equation, the formula now, and you should expect this 2000 will continue to evolve monthly or quarterly, and it's going to end the year probably fully integrated into our platform in these new ways of working. So, I think. It's happening even at higher speeds than we expect.

Speaker Change #267: Aggressive.

Speaker Change #268: It goes for adoption.

Speaker Change #354: It goes for adoption.

Speaker Change #268: And I think by now we knew how to do that it's not easy to turn.

Speaker Change #355: And I think by now we knew how to do that is not easy to turn.

Speaker Change #269: Soft engineers.

Speaker Change #356: Such engineers.

Speaker Change #270: Signers of strategies.

Signers of strategies.

Speaker Change #271: Testers <unk> everyone.

Speaker Change #357: Testers <unk> everyone.

Speaker Change #272: To improve the way they work to incorporate AI and but I think we have the equation to formula now and you you should expect this 2000, we will continue to evolve.

Speaker Change #358: To improve the way they work.

Speaker Change #359: To incorporate AI and but I think we have the equation. The formula now and you you should expect this 2000 and we will continue to evolve.

Speaker Change #273: Monthly quarterly and a good end of the year probably fully.

Speaker Change #361: Monthly quarterly and a good end of year probably fully.

Speaker Change #274: Uh huh.

Speaker Change #360: Uh huh.

Speaker Change #274: On boarded.

Speaker Change #362: On boarded.

Speaker Change #274: And our platform.

Speaker Change #362: In our platform.

Speaker Change #275: These new ways of work so.

Speaker Change #363: These new ways of work so.

Speaker Change #276: I think it's.

Speaker Change #364: I think it's okay.

Speaker Change #277: It's happening even even in the higher speed than we expected.

Speaker Change #365: It's happening even even in the higher speed than we are.

Expected.

Speaker Change #365: Yeah.

Speaker Change #278: And also related to that says Oh, we're not a questions from childhood Kapoor from Intel.

childhood Kapoor: And also related to that says Oh, another question from childhood Kapoor from Intel.

Eduardo Galvao: Also related to that, Cesar, we have a question from Thiago Kapustis from Ita BBA regarding Ci&T flow agents, specifically to give some examples of what we're doing in terms of POCs for our clients.

childhood Kapoor: Regarding <unk> flow agents, so specifically to give some examples of what we're doing in terms of poc's for clients.

childhood Kapoor: Yes.

Speaker Change #280: We have the majority of the agents.

Speaker Change #367: We have the majority of the agents it's.

Cesar Nivaldo Gon: Yeah, we have the majority of the agents, it's more than 50 now, are related to getting pieces of or tasks in the end-to-end production flow of digital solutions and streamlining or radically reducing the effort using journal-driven AI. So the majority, I would say 95% of the agents are related to efficiency and not specifically use cases that will touch the end user. But of course, it is still a field of opportunity.

More than 50 now are relate to getting pieces of.

Speaker Change #368: More than 50 now are relate to getting pieces of.

Speaker Change #281: That's because in the end to end.

Speaker Change #369: That's because in the end to end production flow of.

Speaker Change #281: <unk> Pro Av.

Speaker Change #369: <unk>.

Speaker Change #281: Digital solutions and extremely line or radically reduce staff or using <unk>.

Speaker Change #370: Digital solutions and streaming line or radically reduce staff or using it.

Speaker Change #370: Jeremy.

Speaker Change #282: Turning to the eye.

Speaker Change #283: So the.

Speaker Change #370: So.

Speaker Change #284: The majority I would say, 995% of the Asians are related to efficiency and not specifically use case that will touch the end user but of course is just too.

The majority I would say, 995% of the Asians are relate to efficiency and not specifically use case that will touch the end user but of course it is too.

Speaker Change #284: So the field of opportunity.

Speaker Change #371: Our field of opportunity.

Speaker Change #284: We as I mentioned before we have some very interesting use case or Ed in production.

As I mentioned before we have some very interesting use case or it in production.

Cesar Nivaldo Gon: We, as I mentioned before, have some very interesting use cases in production. And by the way, we just published a new report we call AI Boost. The first edition of this report is basically... On a quarterly basis, we are going to feature all the powerful stores and use cases, concrete results we are generating with our clients with AI and Flow, and you can download this report from our website. We are committed to quarterly updates with new use cases, and new results around what we are achieving with our clients.

Speaker Change #284: <unk>.

Speaker Change #371: <unk>.

Speaker Change #285: By the way we are we just publish.

Speaker Change #372: By the way we are we just publish.

Speaker Change #286: A new report we call AI post the first edition of this report is basically.

Speaker Change #373: A new report we call AI post the first edition of this report is basically.

Speaker Change #287: In a quarterly basis, and we are going to feature.

Speaker Change #374: In a quarterly basis, we are going to feature or the bar for stores and use case concretely results.

Speaker Change #288: The bar for stores and use case concrete results.

Speaker Change #289: <unk> generates wafer clients with a full and you can download this.

Speaker Change #375: <unk> generates wafer clients with AI in full.

Speaker Change #375: You can download.

Speaker Change #289: As reported in our website.

Speaker Change #376: This report in our website.

Speaker Change #290: We are committed to quarterly.

Speaker Change #377: Committed to quarterly.

Speaker Change #291: Date with new use cases, new results around what we are achieving with our clients.

Speaker Change #378: Date with new use cases, new results around what we are achieving with our clients.

And basically.

Speaker Change #378: And basically.

Speaker Change #291: It's a combination of efficiency with the majority of the results now are around efficiency, but opening space for future.

Speaker Change #379: It's a combination of efficiency with the majority of the <unk>.

Cesar Nivaldo Gon: And basically, it's a combination of efficiency; the majority of the results now are around efficiency, but opening space for future use cases that will readily improve customer experience. You can see the kind of results we already have in this report and AI tools on our website.

Speaker Change #380: <unk> now are around efficiency.

Speaker Change #381: Opening space for future use case that will rapidly improve customer experience.

Speaker Change #292: Use case that will rapidly improve customer experience.

Speaker Change #293: Can see the kind of results we are ready to have in this report AI tools in our website.

You can see the kind of results we already have in this report AI tools in our website.

Speaker Change #294: And it says are with no further questions that concludes our Q&A.

Speaker Change #382: And it says are with no further questions that concludes our Q&A.

Eduardo Galvao: Thank you, Cesar. With no further questions, that concludes our Q&A, and I'll pass it on to Cesar to proceed with his closing remarks.

says: I'll now pass it onto says to proceed with his closing remarks.

Speaker Change #382: I'll now pass it on to SaaS to proceed with his closing remarks.

Thank you Eduardo Stella Bruno for joining me today once again, thank you all.

SaaS: Thank you Eduardo Stella Bruno for joining me today once again, thank you all.

Cesar Nivaldo Gon: Thank you, Eduardo, Stanley, and Bruno, for joining me today. Once again, thank you, all CI&Ters around the world, for the hard work and the achievement of this first quarter. I think it's a very good start for the year, and a special thank you to our clients for selecting CI&T on this journey of reinvention around AI. So stay well.

Speaker Change #296: OCI and tears around the world.

Speaker Change #384: OCI and tears around the world.

Speaker Change #297: For the hard work and the achievement of this first quarter I think is a very good start.

SaaS: For the hard work and the achievement of this fourth quarter I think is a very good start for the year and a special bank.

Speaker Change #298: A year and a special bank.

For our clients for selecting <unk> and theirs.

Speaker Change #385: For our clients for selecting <unk>.

Speaker Change #386: Journey of reinvention around AI, so stay well and see you soon.

Speaker Change #299: Were any of reinvention around AI, so stay well and see you soon.

Speaker Change #299: Okay.

Okay.

Speaker Change #386: Okay.

Speaker Change #299: Yeah.

Speaker Change #299: Okay.

Speaker Change #386: Okay.

Speaker Change #299: [music].

Speaker Change #386: [music].

Speaker Change #299: Okay.

Speaker Change #386: Okay.

Speaker Change #299: Yes.

Speaker Change #386: Yes.

Speaker Change #299: [music].

Speaker Change #386: [music].

Speaker Change #299: Okay.

Speaker Change #386: Okay.

Speaker Change #299: Okay.

Okay.

Speaker Change #386: Yes.

Speaker Change #386: Okay.

Speaker Change #386: Yes.

Speaker Change #386: [music].

Speaker Change #386: Okay.

Speaker Change #386: [music].

Speaker Change #386: Yes.

Speaker Change #386: Okay.

Speaker Change #386: [music].

Speaker Change #386: Yeah.

Speaker Change #386: Yes.

Speaker Change #386: Okay.

Yeah.

Speaker Change #387: Technology is more than a device system or industry textile.

Speaker Change #388: <unk> technology is built by people for people.

Speaker Change #389: For people, who desires and needs and ambition.

Speaker Change #390: By our people who are talented.

<unk> created.

Speaker Change #391: The diverse now.

Speaker Change #392: Our people use innovative strategy design and engineering to offer end to end solutions that help companies to quickly transform and scale their operations globally, while we create AI powered solutions, all we really want and what motivated us is good.

Speaker Change #392: Tomorrow.

P I N T with brief and field Tech make there tomorrow.

Eduardo: Good morning, welcome to <unk> earnings call for the fourth quarter of 2023, I am Eduardo go wrong head of Investor Relations at CMT, and it's a pleasure to be here to talk about our operating and financial results with me on today's call are gone.

Bruno <unk>: <unk> and CEO, Bruno <unk>, founder and President for North America, and Europe instantly Hu <unk> our CFO.

Speaker Change #394: This event is being recorded and all participants will be in a listen only mode. During the companys presentation. After that there'll be a question and answer session for analysts and investors if you'd like to submit a question. Please send it via E mail to investors at <unk> Dot com.

Speaker Change #394: The presentation is available on the company's Investor Relations website, and a replay will be available shortly after the event is concluded.

Speaker Change #394: Some of the matters, we'll discuss on this call, including our expected business outlook are forward looking statements and as such are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those expressed on this call. We caution you not to place undue reliance on these forward looking statement.

Speaker Change #395: 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 non <unk> measures disclaimer for more details.

Speaker Change #396: Today, we announced that we will restate our financial statements for the year ended December 31, 2022, as we identified certain noncash accounting errors related to deferred income tax liabilities associated with the tax benefit on goodwill.

Speaker Change #397: Erected adjustments are noncash in nature will not increase the amount of income tax to be paid in the future and are not expected to impact net revenue or profit before income tax while we expect that our results will be consistent with this preliminary and unaudited estimates our actual results may differ materially from those preliminary.

Speaker Change #397: Right.

southern gone: Our agenda for today includes an update on our quarterly highlights followed by some of our business cases, we will then talk about our people and our quarterly financial results now I invite southern gone to begin our presentation server plays.

southern gone: Thank you Eduardo and good day, everyone. It's great to be here again to talk about their results for 2023, and our business outlook for 2024 best of year presented us with a series of short term challenges due to the economic landscape combined with the extraordinary opportunity.

southern gone: To position <unk> as a co author of the next chapter in the digital Revolution powered by artificial intelligence.

As we navigate through this challenging year, we focused on the reinvention of <unk> by partnering with our clients and launching <unk> floor, our AI platform for hybrid digital.

Speaker Change #399: As the founder and CEO My mission is to accelerate our path to value creation with a strong commitment to the long term.

Speaker Change #399: This vision is reflected in our team's exceptional dedication creativity and resilience showcasing our strength and adaptability more than ever.

Now looking forward technological advancements have opened up the ramp up new possibilities for our business to enhance productivity and establish a competitive edge in an increasingly disruptive landscape my experience with large companies has shown me that the speed of change is directly.

Speaker Change #400: To the speed of learning, both personal and corporate levels.

Speaker Change #401: To drive innovation companies must focus on understanding the intersection of new technological possibilities and evolving consumer behaviors. The REO disruption coming from leveraging both forces at the same time as seen with the current adoption of AI technology.

Speaker Change #402: To accelerate change companies must prioritize learning about AI capabilities and consumer behaviors in the AI powered world.

Speaker Change #403: The key challenges lies in increasing the speed of corporate learning.

Speaker Change #404: That's the duration of this AI our door based on raw files masterpiece, the school of Athens, symbolizing the spirit of the hint of source and the pursuit of knowledge.

Speaker Change #405: The way I invite you to take a look at my coloring the future of AI Sears Linkoping.

Speaker Change #406: Moving now to our financial and operating performance in 2023.

Our natural revenue totaled $2 2 billion Reais, a four 1% growth at constant currency compared to 2022 within our guidance range, we have strengthened our relationship with existing clients expanding the number of clients generating more than 10 and 12.

Speaker Change #407: Many million Reais, where revenue from 38 in 2022.

Speaker Change #407: <unk> to 50 in 2020.

Speaker Change #408: We ended 2023 with an adjusted EBITDA margin of 19, 3%.

Speaker Change #409: Isolate better than in 2022, as a result of our divisions cost and expense management efforts throughout this period of lower growth.

Speaker Change #410: Finally in 2023, we generated 414 million reais from our operating activities, a solid figure that underscores the resilience and strength of our business model.

Speaker Change #411: India is a notable track record of consistent revenue growth profitability and robust cash generation for instance in the past years from 2019 to 22 and three are revenue compound annual growth rate was a strong 35%.

Speaker Change #412: Over this period, our revenue distribution has shifted with nearly 60% of our revenue now coming from mature economies, primarily in the U S. This trend is expected to continue given the faster organic growth in these regions.

Speaker Change #413: Furthermore, a significant new improvement was seen the share of revenue from our top 10 clients. It decreased from six 7% in 2020 to below 40% in 2020.

Speaker Change #413: We are confident in our ability to sustain our growth trajectory by delivering innovation and impactful results for our long term clients Sterling, we will provide more details on our financial performance shortly.

Now, let's explore some client engagement and business highlights for the quarter.

Speaker Change #413: Yeah.

Speaker Change #413: Okay.

Speaker Change #413: Yeah.

Speaker Change #414: <unk> is proud to announce a new strategic partnership with Domino's Pizza, the world's largest pizza company and an icon among global restaurant brands digital innovator and prominent leader in the quick service restaurant industry Domino's draws on decades of tech expertise to consistently offer exceptional customer experiences.

Speaker Change #415: And dominoes have joined forces to lead the way in pioneering a next generation digital ecosystem sharing the goal of elevating and already thriving ecommerce landscape.

Speaker Change #416: By a shared passion for commitments and pushing boundaries. The partnership aims to build upon Domino's digital sales technologies. The collective effort will help provide a more streamlined path toward novel consumer experiences. Once again positioning Domino's ahead of market standards working with Domino's reflects our shared commitment to pushing technological bond.

Speaker Change #417: Our focus is on elevating dawn was already quite successful digital ecosystem empower them to lead the market.

Pearsons speed and innovation and customer experiences and e-commerce join us on this journey, where strategic collaboration creates innovative pathways delivering even more enhanced experiences for pizza lovers.

Speaker Change #417: Yeah.

Speaker Change #417: Oh.

Speaker Change #418: In a groundbreaking collaborations C R and T led the design of a pilot mobile application aimed at transforming emergency response through inclusive design and technology. These initiatives United for organizations with the shared Gulf of Revolutionizing Emergency response system.

Speaker Change #419: Principal challenge confronted by the project was to improve the accessibility of the emergency.

Speaker Change #419: Ensuring its effectiveness for diverse communities.

Speaker Change #420: The project's overarching goal was to extend the reach of emergency services acknowledging a diverse population competition with 30% born overseas, 27% converting in languages other than English and 17% living with a disability.

Speaker Change #421: <unk> and team collaborated with <unk> to develop an AI language solution that combines AI and human services for real time transactions.

Speaker Change #422: This ensured accuracy and quality control in delivering critical information.

Speaker Change #423: Insights from extensive user research guarded inclusive design decisions, making the app usable for diverse demographic groups the.

Speaker Change #424: The collaborative efforts on Vic emergency App have resulted in a pioneering solutions that sets a global standard for digital accessibility and emergency response by combining our technology with design excellence the project not only meet the immediate needs of Victoria, but showcases the transformative power of inclusive design and building trust.

Speaker Change #424: Fostering cooperation and demonstrating the potential to save lives through innovative and accessible solutions.

Okay.

Speaker Change #424: Wow.

Speaker Change #424: Yeah.

Speaker Change #424: Okay.

Speaker Change #425: Welcome to our latest update we have gathered the most recent information and insights from our leadership team to share with you.

[music].

Speaker Change #426: This is <unk> global ESG report for 2023.

Speaker Change #427: In it we demonstrate how we uphold our make their tomorrow motto by practicing sustainability environmental responsibility and respect for society and our people while operating ethically.

Speaker Change #428: For sustainability, we are proud to have neutralized, our carbon emissions and all our operations this year.

Speaker Change #429: Due to our work towards net zero, the Brazilian Ghd protocol program awarded us the Golden seal of quality.

Speaker Change #430: For people, we've achieved a significant milestone in our organization by having more than 50% of workers from under represented groups, including women and people with disabilities, and black and LGBTQ I E. P M plus people.

Also we are committed to creating a supportive and autonomous workplace. Our latest career development program has been successful in providing flexibility and fluidity and connecting career aspirations for 94% of our employees.

Speaker Change #430: Yes.

Speaker Change #431: In this society portion, we're thrilled to have positively impacted 21000 individuals through our sponsored programs.

Speaker Change #432: And the governance segment, we're proud to report that 100% of our people completed our code of conduct training. Additionally.

Speaker Change #433: Additionally, we've obtained new security and data protection certification.

Speaker Change #432: Yes.

Speaker Change #434: Finally, we are pleased to deliver value for our clients to ESG based digital solution, incorporating responsible principles into their business strategies.

Speaker Change #435: As an award winning company in digital services, we are backed by a robust ESG powerhouse, enabling us to deliver impactful social and environmental projects.

Speaker Change #436: To read our report please visit our website.

Speaker Change #436: Okay.

Speaker Change #436: [music].

Speaker Change #437: We're excited to share that C. I N T has been recognized in the 2023 Gartner Magic quadrant for custom software development services a worldwide reported this.

Speaker Change #438: This prestigious research report evaluates providers capabilities in custom software development to support digital transformations and build new products. It is based on rigorous criteria such as vision strategy innovation customer feedback and market presence.

Being recognized in the report is an honor and a testament to our unique approach to digital products, which helps enterprises continuously advance their software delivery capabilities, creating value at the speed of need we.

Speaker Change #439: We are also committed to developing transformational solutions through significant investments in AI and software engineering with the launch of C. I N T flow.

Speaker Change #440: We believe that this recognition further validates our position as a trusted partner for businesses that want to propel forward in the digital world. We thank our clients, who trust us with their most challenging and strategic projects.

Okay.

Speaker Change #440: Okay.

Speaker Change #441: C I N T U K launched accelerating digital efficiency, but the AI multiply our reporting collaboration with a global <unk> Institute.

Speaker Change #442: The report examines European enterprises complex and evolving digital landscape and reveals the challenges and opportunities they face in achieving their goals.

Speaker Change #443: The report is based on a survey and interview with 100 digital business leaders from various sectors.

Speaker Change #444: Findings show that despite increasing technology budgets with 59% of organizations reporting budget increases in 2023 and a further rise expected in 2020 for many businesses are still struggling to meet that digital transformation targets.

Speaker Change #444: The report identifies the key areas, where businesses are prioritizing efficiency and that technology operations, such as I T and data strategies data management customer operations and service platforms, cyber security and e-commerce and payment platforms.

Speaker Change #445: If you want to learn more about the report and how generative AI can help companies accelerate their digital efficiency you can download a copy at our website.

Speaker Change #445: [music].

Speaker Change #446: Podcast is now humans of digital.

Speaker Change #447: And this new editorial segment, we will uncover how to decode the new world of humans and a digital native World AI is undeniably a revolution in our area in terms of technology.

Speaker Change #448: 100% global relevant content why as they arise.

Capillary blackboard and resolutions by Jos.

Speaker Change #449: One big stack was Super Bowl. It is a journey that youre going to face all the profit available on your favorite platform.

Speaker Change #449: [music].

Speaker Change #449: Yes.

Speaker Change #449: Okay.

Speaker Change #449: Yes.

Speaker Change #450: This is our latest news.

Speaker Change #451: Our aim is to continue providing transparent and relevant information to keep you informed and up to date on our latest developments and achievements.

Speaker Change #451: Yeah.

Speaker Change #451: Sure.

Speaker Change #451: Yeah.

Speaker Change #451: Okay.

Speaker Change #451: Yes.

Speaker Change #451: [music].

Speaker Change #452: <unk> is advancing its beta version, reaching new clients in the era of AI human collaboration by gathering new users flow becomes a stronger ecosystem exclusive to our people and current customers.

Speaker Change #453: Nine out of 10 of our most significant clients are currently utilizing flow.

Speaker Change #454: All of these major brands are exploring the potential of Gen AI and software development through comprehensive AI use cases.

Speaker Change #455: Our offers are also evolving to be powered by flow in an AI first approach.

Speaker Change #455: The data and AI, the digital strategy orchestration AI legacy optimization and the AI roadmap offer examples of this transformative era of our business.

Speaker Change #456: In this way we pursue to set our clients at the forefront of AI innovation together.

Speaker Change #455: Thanks.

Speaker Change #455: Okay.

Speaker Change #455: Yes.

Sure.

Speaker Change #455: Okay.

Sure.

Speaker Change #455: Okay.

Speaker Change #455: Amazon Web services.

Speaker Change #457: W. F is the world's leading cloud computing platform that offers a wide range of services and tools for developers and enterprises.

Speaker Change #458: I N T and Amazon Web services have been working together since 2010 to deliver cutting edge services of cloud migration legacy optimization customer experience data AI and machine learning and digital products.

WNS: In 2023, we received the rising star partner of the year laid them from a WNS for our outstanding performance and growth in their cloud market, demonstrating our solid and prosperous relationship. We have also collaborated on projects with leading brands such as you'd use Banco Pan and see six bank.

Speaker Change #460: These projects showcase how C I N T and Amazon Web services can help clients transform their businesses improve customer satisfaction and leverage the power of data and cloud.

Speaker Change #461: What gave you guys I mean, they love cycling Gino I, just checked out of vehicles to give as good a semi <unk>.

Speaker Change #462: Thank you thanks for that update.

Speaker Change #463: Randomized if they think that should be died in 2024, we will continue fostering business together unlocking new opportunities and driving shared growth in project revenue.

Speaker Change #462: Okay.

Speaker Change #462: Yes.

Speaker Change #462: Okay.

Speaker Change #462: Yeah.

Speaker Change #462: Okay.

Speaker Change #462: Yes.

Speaker Change #462: Cash.

Speaker Change #462: Hello, Amy.

Speaker Change #462: And then the Yang so any view there.

Amy: My own sense anything overseeing the development and some addition of cutting edge technology.

Speaker Change #465: Technology is ensuring they are integrated ethylene.

Amy: My focus is on not only the spy imaging technology, but also perhaps maybe you can give.

Speaker Change #466: Our position today as a first line well.

Speaker Change #466: Well Anthony I career was challenging.

Speaker Change #467: Especially when I was told that I would only learn AI, if I left Brazil, However, I want that Permian barrels that it was possible.

Speaker Change #468: Without having my home country My ambition is to pave the way probably those will come after me, making in there alright featuring enthusiasm.

Speaker Change #469: Does do any of their whole word to achieve their goals.

They said finding a well developed Brad, but nice and awareness and then getting some advice.

Speaker Change #470: What's humbling experience, it's incredibly rewarding interesting might work. It would go live by the brothers that culminated what I'm. Most proud of is I think your point that it might work as well.

Speaker Change #471: But as to helping clients achieve their business goals at CMT.

Speaker Change #472: Today I call me any Gulf are inspiring others to my concept and project.

Speaker Change #472: Okay.

Speaker Change #472: Yes.

Speaker Change #472: Okay.

Speaker Change #472: Yeah.

Speaker Change #472: I Hope you enjoyed our planning stories updates and highlights now I would like to welcome Bruno to delve into our ESG initiatives and global talent strategy. Thanks.

Bruno <unk>: Thank you Susan and good morning, everyone.

Delighted to join you once more.

Bruno <unk>: To date, we've released our second ESG report, which outlines our initiatives actions and objectives in the environmental social and governance routes ESG stands as a foundational pillar at <unk> and the ability to articulate our thoughts and endeavors and shared them with our stakeholders is a source of <unk>.

Speaker Change #473: And fulfillment for us at <unk>.

Speaker Change #473: We truly believe that our ESG approach reflects our core values and our belief in the interconnected growth of our business, our people and society as a whole.

Speaker Change #474: Our ESG strategy is underpinned by our collective vision, a fasting equitable advancement opportunities for all providing education and professional pathways for underrepresented groups in mitigating our environmental footprint to foster a more sustainable world.

Speaker Change #475: <unk> you to download and read our ESG report, which is now available on Investor Relations Web site.

In 2023, our initiatives continued to demonstrate steady progress as we can see in this slide we made important advancements in all three pillars integrating this principles more deeply into our business strategies.

Speaker Change #476: Let me briefly describe our last year's accomplishments.

Speaker Change #477: In the environmental pillar, we're excited to share that we measure 100% of our carbon footprint globally and most importantly, we neutralized 100% of the carbon emissions generated by operations worldwide.

Speaker Change #478: Nature based carbon removal projects, that's applicable for scopes, one two and three.

Speaker Change #479: <unk> achievement indeed.

Speaker Change #480: Additionally, we've just launched our environmental policy outlining the principles, we're committed to falling to further reduce our impact in key areas, such as climate waste and water management energy usage, and our interactions with clients and suppliers.

We're delighted to announce that we submitted this commitment to the science based targets initiative.

Speaker Change #481: As a people business, we recognize that a diverse and inclusive workforce as a fundamental driver of innovation and success. In this regard we're able to finish 2023 with a 53% of our people coming from underrepresented groups.

Speaker Change #481: Our commitment to diversity.

Speaker Change #482: Beyond our internal efforts.

<unk> actively participate in various social responsibility initiatives within our communities.

Speaker Change #483: Aiming to foster practices that combat the marginalization of underrepresented groups last year, our initiatives reached 27000 individuals, including educational projects to enhance programming skills financial contributions and other initiatives.

Speaker Change #484: And the governance pillar, we've made progress in strengthening our practices, especially in risk management and compliance.

Speaker Change #485: We completed the ISO 27001 2022 certification process.

Speaker Change #485: Which is related to security and data protection, we are proud that our processes and controls are fully aligned with the information security practices within this framework.

Speaker Change #486: Moving on to talk about our people.

Speaker Change #487: We're proud to have a team digital specialists, who continually strive for excellence and innovation with.

We're committed to fostering a culture of entrepreneurialism.

Speaker Change #488: Where creativity and out of the box thinking or encourage an.

Speaker Change #489: We believe that investing in our people is the key to our continued and sustained success.

Speaker Change #490: We finished last year with 6000.

Speaker Change #491: 111, sharing tiers, which was relatively stable compared to the third quarter of 2023.

Speaker Change #492: In addition, our.

Speaker Change #493: Tricia rate remains at historically low levels and the nine three and four the executive layer that attrition is even lower at three 6%.

Speaker Change #494: As we look towards the future and focus on resuming growth. We are excited to be able to provide opportunities for career advancement and development for our employees.

Speaker Change #495: People are our most valuable asset and we're committed to supporting them in their professional growth.

Speaker Change #496: As we pioneer the advent of AI within our industry. We're excited about the opportunities it will bring to leverage our company and foster innovation and a great sense of belonging among our for employees.

Together, we can achieve rethinks and drive our company towards success I want to thank all sharing tiers for their continued support and trust in us as we work towards a brighter future for our company and our people.

Speaker Change #496: No.

Speaker Change #496: Stanley to comment on our financial results.

Stanley: Thank you Bruno and good morning, everyone I am pleased to once again present, our financial results to all of you in the fourth quarter of 2023, our net revenue stood at $522 6 million Reais a decrease of 14, 6%.

Stanley: Year over year, primarily attributed to lower revenue from our top client and a decline in revenue from select clients within our acquisition portfolio.

Speaker Change #497: For the full year of 2023, our net revenue totaled $2 billion 233 million Reais, representing an increase of two 1% year on year or four 1% at constant currency within our guidance range.

Speaker Change #498: We are pleased to report our continued focus on reducing client concentration and diversifying our revenue mix.

Speaker Change #499: One key reason for this strategic shift is our success in gaining wallet share within our largest clients.

Speaker Change #500: Looking at the revenue distribution by geography, North America remains our largest market accounting for 44%, although total revenue in 2023.

Speaker Change #500: Mature economies currently adds up to almost 60% of our total revenue providing resilience to our business led Tam represents 41% of our revenue and continues to be an important region for growth in terms of year over year revenue growth.

Speaker Change #500: We saw positive trends in multiple regions.

Speaker Change #500: North America experienced a five 9% increase Europe grew by nine 1% and Asia Pacific surged by 28, 6% while revenue from Latam declined by five 2%. It remains a key area to leveraging.

Speaker Change #501: <unk> opportunities for growth.

Speaker Change #502: Our revenue mix by industry verticals showcase our commitment to diversification while revenue from financial services remained stable. We saw a reduction in revenue contribution from consumer goods due to lower revenue from our top client.

Speaker Change #503: Conversely revenue from technology, and telecommunications grew by 17, 4% year over year, driven by the expanded client base, resulting from our recent acquisitions.

Speaker Change #504: In 'twenty three we significantly improved the distribution of revenue from our key clients, reducing revenue concentration the revenue share from our top one client decreased from 15% in 'twenty 'twenty, 2% to 8% intent to change three why are they collect.

Speaker Change #504: <unk> share of the top 10 clients reduced by 10 percentage points from 49, 6% in 2022 to 39, 7% in 2023.

Looking ahead this development signifies the diversification of our revenue streams as we broaden our client base and expand into new geographic regions and industries.

Speaker Change #505: Now turning our attention to our client base in.

Speaker Change #506: In 2022 we saw significant growth in our client base, both organically and through strategic acquisitions as we look to 'twenty changed three our focus has shifted towards maximizing wallet share within our largest clients cultivating strong relationship.

Speaker Change #506: <unk> and continually expanding our market reach.

Speaker Change #507: This is evident by the expansion of the number of clients that are generating revenue exceeding 10 million Reais from 38 in 2022 to 50 in 2023.

Speaker Change #508: Despite facing economic challenge, our net revenue retention rate remained strong at 96% in 'twenty three showcasing our ability to navigate tough financial landscapes over the past five years, our net revenue retention rate.

Speaker Change #509: It has been an impressive 120%.

Speaker Change #509: This underscores our resilience and our capability to consistently deliver value to our clients adapting our strategies as needed, thereby fostering long term growth and profitability.

Speaker Change #510: Moving on allow me to provide an overview of our financial performance for the fourth quarter and the full year of 2023.

Speaker Change #511: Our adjusted EBITDA was $103 6 million Reais in the fourth quarter of 23 compares to 127 4 million in 2022.

Speaker Change #512: The EBITDA margin was 19, 8% for the full year of twin chain three D. Adjusted EBITDA increased to 432 million up three 5% when compared to an adjusted EBITDA of $418 million.

Speaker Change #512: In 2022.

Speaker Change #512: The EBITDA margin rose to 19, 3% in 2023 slightly higher than 2022.

Speaker Change #513: Throughout 2023, our efforts were concentrated on identifying opportunities to optimize our costs and SG&A expenses. This enabled us to sustain healthy margins during this lower growth period.

Speaker Change #514: As we move into 'twenty 'twenty four we remain cautious in managing our expenses to adapt really navigate the prevailing environment.

Speaker Change #515: Finally in 'twenty <unk>, three we generated 414 million raising cash from operating activities compared to $161 million in 2022 and expansion of 158% year over.

Speaker Change #515: A year.

Speaker Change #516: This represents a cash conversion to adjusted EBITDA of 96%, demonstrating our robust capacity to generate cash from our core business activities.

Such a robust cash generation allow us to reinvest in our business any strategic opportunities that will drive sustainable growth such as the floor platform and other AI related projects.

Speaker Change #517: Now I invite <unk> to comment on our business outlook for the year coming.

Speaker Change #518: Thank you our history, we expect our natural rebate in the first quarter of 'twenty 'twenty four to be at least 520 million on a reported basis, assuming an average FX rate of five Brazilian reais per U S dollars in the first quarter of 2024.

Speaker Change #518: For the full year of 2024, we expect our net revenue growth.

Speaker Change #519: <unk> to be in the range of minus two 5% to two 5% year over year. In addition, we estimate our adjusted EBITDA margin to be in the range of 17% to 19%.

Speaker Change #520: Thank you all for attending our call today, we now conclude our presentation and begin the Q&A session.

Speaker Change #520: Yeah.

Speaker Change #521: Alright, Thank you all for attending our call today.

Speaker Change #522: Now begin the question and answer session.

Speaker Change #523: I will announce each party's Spence name once you hear your name. Please mute your line and ask a question then when you are done please mute your line.

Eduardo <unk>: Our first question comes from Eduardo <unk> from UBS.

Please go ahead.

Eduardo <unk>: Hi, everyone. Thanks for taking my question.

Eduardo <unk>: Now I would like to better understand where it takes into consideration further revenue and margin guidance. Please.

Speaker Change #524: Thank you Eduardo I can I can get this one.

In terms of revenue for our guidance.

Speaker Change #525: We are considering that we are coming out of a very unusual year.

Speaker Change #526: So there is still uncertain macro in corporate it spending environment.

Eduardo: And so we are planning a stable Q1, followed by incremental growth not only in the <unk>.

Eduardo: Following quarters of the year, but also.

Speaker Change #527: In the following years, so resuming already standard growth trajectory primary drivers I think I see two main drivers first is we have some of our large clients gain traction so to give you a data point our top 10 clients are expanding.

Speaker Change #527: Mid to high single digits.

They're still grow along the year and we have also.

Speaker Change #528: New client set of new clients that landed.

Speaker Change #529: We landed in the second half of last year that are now ramping up.

Speaker Change #530: Like Domino's Pizza as you saw in our highlights and also I would mention to let's say deal risk factors in our projections. The first is our top one two and three talk where the client is now stable.

Speaker Change #531: One of the challenges of last year.

Speaker Change #532: And if you see our last 12 months I think we gradually replace a number of small tic deals, especially from their acquired.

Speaker Change #533: Portfolio with a good number a good number of large clients.

Speaker Change #534: Basically the primary drivers for our revenue guidance in terms of margin I think we are expecting and projecting.

Speaker Change #535: <unk> flagged inflation combined with a lower price elasticity.

And.

Speaker Change #536: As we did last year, we're keeping our price cost discipline.

Speaker Change #537: As you can see now are above average.

Speaker Change #538: Turning to the numbers of EBITDA and cash flow generation.

Speaker Change #539: And of course, we continued to invest in our teams.

Speaker Change #540: In a way to prepare for receivable growth and AI.

Speaker Change #541: <unk> floor joist Revich.

Speaker Change #542: Okay. Thank you very much very clear.

Richard: Thank you Richard.

Gabrielle: Thank you Eduardo on next question comes from Gabrielle amortize them at all.

Gabrielle: Please go ahead.

Speaker Change #545: Hello, everyone. Thank you for taking my questions. We have two on our site and the first one is regarding the financial statement restatement.

Speaker Change #546: We expect potential further restatement going forwards are all of the adjustments should be made at watts and the second one is also a follow up regarding the guidance.

How do you see the recovery that could surface mine.

Speaker Change #547: Market throughout the year like so expect a better.

Speaker Change #548: The market in the second half of the year and also used to have some color regarding what you expect in terms of marketing environment as part of the problem.

So thank you guys.

Speaker Change #549: Oh I didn't get the first one thank you for the question.

Speaker Change #550: Well with regard with the restatement, we estimate that we will release the full earnings release in one week or so.

Speaker Change #551: And no later than the 28th of March we will release. The 20 20-F, So we will furnish the restatements.

Speaker Change #552: Restatements for the quarters within a additional 6K and the <unk>.

Same date, the same 10 year to date.

Speaker Change #553: And of course, the full year Restatements will you will see in the 20-F.

Speaker Change #554: To ensure students to rates.

Speaker Change #555: Just to add to add to that it's important to mention that we expect all that.

The adjustments necessary within this financial statements that were reported with the 20-F. So we do not project any further restatement going forward. It's already all contemplated in the announcement we provided this morning.

Speaker Change #556: Let me address the second part of the second questions.

Speaker Change #556: Alan.

Speaker Change #557: In terms of the demand environment.

Speaker Change #557: <unk>.

Speaker Change #558: <unk>, a better environment, when we compared to.

Speaker Change #558: Last year at the beginning of last year.

Alan: Of course with cautious optimism.

We see clearly a better commercial activities activity and pipeline compared to last year also enhanced visibility for the first half of the year.

Speaker Change #560: And we still we still some see some lab off uncertain, where the second level of the year. However, I think if you might.

Speaker Change #561: My perspective is that the conservative investment in digital in the recent years are now become kind of evident in the <unk>.

Speaker Change #562: Competitive the competitive landscape and if you add artificial intelligence. This equation is kind of inevitable that companies in general we will have to accelerate their digital strategies, so, especially in the second half of the year and in 2025. So this is my perspective.

Speaker Change #562: In terms of that.

Speaker Change #563: Thank you Hello, guys. This is very very clear thank you.

Speaker Change #564: My pleasure.

Thank you Gabriela our next question comes from jewelry Bassi from Canaccord Joe.

Jewelry Bassi: Go ahead.

Speaker Change #566: Good morning, gentlemen, thank you for taking my questions first one is I.

Jewelry Bassi: I think I heard since our that you said that your largest customer your largest clients going to be stable here in 2024.

Speaker Change #567: Wondering you know what is the outlook or.

Speaker Change #568: You're maybe or two through five customers.

Speaker Change #568: And then secondly is it may be a little early but.

Speaker Change #569: Is it possible to quantify how many perhaps points of revenue maybe coming in 2024 from AI.

Speaker Change #570: Related projects. Thank you very much.

Speaker Change #571: Thank you Andrew regarding your first question I think our.

Speaker Change #572: Top one client as forecasted.

Speaker Change #572: Yes.

Speaker Change #573: We see is a stable below the year end.

Speaker Change #574: We are seeing.

It was a higher growth in our top 10.

Speaker Change #574: Clients were forecasting.

Mid to high single digits of growth.

Speaker Change #575: Our top 10 clients so.

Speaker Change #576: Including the <unk>.

Speaker Change #576: Stable.

Speaker Change #577: One last here.

Speaker Change #578: And the second question regarding <unk>.

Oliver.

Oliver: The way we are approaching.

Speaker Change #580: AI is.

Speaker Change #581: Such a comprehensive away that.

Speaker Change #582: Of course, we have the AI specific.

Projects, but in general we are thoroughly every single engagement AI engagement with Ti into flow. So.

Speaker Change #583: Now so along the year, we expect our 100% of our offerings will be somehow powered by AI, especially officials.

Speaker Change #584: Perspective so.

Speaker Change #584: It's.

Speaker Change #585: Really I think.

Speaker Change #586: By now we have 35 of our larger clients are already engaged with us with <unk>.

Speaker Change #587: So we are of course, we're tansey hand, with those clients discussing your AI strategy and road map.

Speaker Change #588: This disruption so.

It's hard to predict but I would say that.

Speaker Change #589: By Q4 of this year, we probably we will have 80% to 90% of our engagement golf's Yankee somehow impacted or related somehow to AI, it's basically because our.

Speaker Change #590: <unk>, Florida strategy pace.

Two N platform.

Speaker Change #591: Or reducing digital solutions.

Speaker Change #592: Alright, Thank you Sir.

Speaker Change #593: My pleasure.

Joe: Thank you Joe.

Speaker Change #594: So we have one question here via email could you. Please provide more context on the cash generation for the year ended what should we expect going forward in that regard.

Speaker Change #595: Well I can take that one as well.

Speaker Change #596: Thank you for the question.

Speaker Change #597: Historically, we have we are running a business that generates a solid operating cash flow.

Speaker Change #598: 'twenty three it's another year in this track record.

Speaker Change #599: Without M&A and year with lower growth.

And as a consequence, lower working capital demand.

Speaker Change #600: For the future we should expect that we are in the range of 50% to 70% cash conversion from EBITDA as we have been performing at historically right.

Speaker Change #601: And mainly because we expect the resuming our growth trajectory so that new demand.

Speaker Change #601: More cash in comparison to 2023.

Speaker Change #601: Seasonally cash generation is stronger in the second half.

Speaker Change #602: So you would expect in the <unk>.

Speaker Change #602: First half of the year lower cash generation and towards the end of the year second half.

Speaker Change #603: The greater amount of cash generation.

Sterling: Thank you Sterling.

Sterling: So that concludes our Q&A session. Thank you all for attending our event today and now invite says they're going to proceed with his closing remarks.

Speaker Change #604: Thank you all for participating on our call here.

Speaker Change #605: Here are my friends go Bo Stanley and Bruno.

Speaker Change #606: Joining me on this call once again.

Speaker Change #607: I need to thank OCI tiers or around the world for their hard work and achievement.

Speaker Change #608: And also too.

Speaker Change #608: Support.

Speaker Change #608: This.

Amazing trajectory of building <unk>.

Speaker Change #609: So stay well.

Speaker Change #610: I see you soon.

Speaker Change #611: Thank you.

Speaker Change #611: Alright.