Q3 2025 Ci&T Inc Earnings Call
Speaker #1: In a world that's always on transformation, CI&T is your go-to tech transformation specialist, helping you navigate opportunities and co-create solutions at every step of your technology journey.
Speaker #1: We get things done quickly, efficiently, and at scale. By combining the best human expertise with the power of our very own AI platform, CI&T Flow.
Speaker #1: Our mission? To design and develop tech solutions that drive growth and boost your business value. When it comes to navigating change, we turn challenges into possibilities, leading the way to a brighter future.
Speaker #1: We're right by your side, innovating together, and pushing you forward. That's what we do. Our deep know-how covers the entire tech development cycle, from strategy to AI, customer experience, software development, cloud, and data services.
Speaker #1: Navigate technology change with CI&T to reach new heights. Navigate change with CI&T.
Speaker #2: Good Good morning. Welcome to CI&T earnings call for the third quarter of 2025. I am Eduardo Galvão, investor relations director at CI&T. Joining me on today's call are Cesar Gon, founder and CEO, Bruno Guicardi, founder and president for North America and Europe, and Stanley Rodrigues, our
Speaker #2: CFO. This event is being
Speaker #3: Recorded and all participants will be in a listen-only mode during the company's presentation. After that, there will be a Q&A session. If you'd like to submit a question, please send it via email to investors@ciant.com.
Speaker #3: 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 include our expected business outlook, our forward-looking statements, their subject to known and unknown risks and uncertainties, which would cause actual results to differ from those expressed on this call.
Speaker #3: We caution you not to place undue reliance on these 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.
Speaker #3: Please refer to the reconciliation tables of non-IFRS measures in the earnings release for more details. Our agenda for today includes an overview of our quarterly highlights, followed by some of our business cases.
Speaker #3: We'll then talk about our people and our financial results. At this time, I'll pass it on to Cesar Gon to begin our presentation. Cesar, please.
Speaker #4: Thank you, Galvão, and good day, everyone. As we celebrate 30 years I would like to highlight our winning operating model built on four pillars.
Speaker #4: It starts with three decades of experience shaping our world-class talent ground. Our teams use this expertise to co-create AI agents and digital solutions that solve real client problems.
Speaker #4: We deploy this combination of talent, proprietary technology, and methodology using a unique delivery model to win and expand clients. With every engagement, the learning accelerates, expanding our knowledge, refining our tools, and propelling our growth.
Speaker #4: And we are amplifying this flywheel by dogfooding AI across our operations. As we look back, it's remarkable how CI&T has evolved through each major tech shift, from the early internet and e-commerce to mobile to cloud, and now artificial intelligence.
Speaker #4: At every stage, we've helped clients adapt and turn technology into business impact. Today, the same spirit continues with CI&T Flow, our AI management system.
Speaker #4: With an unprecedented level of adoption, we are combining leading large language models with our proprietary tools and data to create thousands of AI agents, and prepare our clients for the inevitable agentic world.
Speaker #4: Across the industry, there's still a clear gap between AI ambition and real results. Most enterprises haven't yet turned AI investments into meaningful impact. A recent MIT study titled "The GenAI Divide" highlighted that 95% of GenAI projects are failing to deliver measurable financial results.
Speaker #4: That gap created strong demand for partners who can turn experimentation into scalable business value. This is where CI&T stands. Built to help the 5% who are making AI work and to expand that group.
Speaker #4: It's a challenging tailor-made for our model and a major opportunity ahead. Now let me turn to our quarterly earnings highlights. Revenue reached another historical record of $127.3 million US dollars in the third quarter of 2025, representing 12.1% organic revenue growth at constant currency year over year, above our guidance.
Speaker #4: This also reflects a 13.4% year over year increase in reported revenue. Our just EBITDA margin was 18.5%, showing a healthy and sustainable profitability. Finally, our just profit margin was 8.9%.
Speaker #4: This quarter marked CI&T's fourth consecutive quarter of double-digit organic revenue growth. Our AI strategy is effectively bridging the GenAI divide for our clients, transforming their AI investments into tangible efficiencies and high impact solutions.
Speaker #4: This AI-powered offering has expanded our sales pipeline, increased our wallet share with clients, and reinforced our role as a key partner in their digital and AI transformation journeys.
Speaker #4: Now let's explore some inspiring client stories that showcase the diverse and powerful applications of AI.
Speaker #1: Ford partnered with CI&T to expand its wings platform across South America. Using CI&T Flow, our AI management system, the team analyzed 4,800 minutes of meetings and 50,000 lines of code, cutting delivery time by two months.
Speaker #1: The rollout in Argentina was completed in just 10 months. Beyond speed, AI-enhanced quality, and accuracy transformed how the project was delivered, reflecting local market needs.
Speaker #1: This success shows how deep business knowledge and advanced technology can create real impact at
Speaker #5: CI&T is supporting Teranis Energy, a renewable energy company in Singapore, to enhance the technology behind its solar operations. We're modernizing their legacy systems, building a new Azure cloud platform, and providing real-time monitoring for continuous performance.
Speaker #5: Together, we're ensuring clean energy runs smarter, faster, and more efficiently. Powered by data and innovation.
Speaker #1: Porto adopted CI&T Flow. Our AI management system that enhances software delivery. In just a few weeks, development teams became 38% more efficient, reduced task time by 18%, and fixed 79 legacy code issues in one day.
Speaker #1: Test coverage grew across the process, increasing both quality and confidence. Together, Porto and CI&T show how AI can simplify and strengthen digital transformation.
Speaker #6: At CMG Financial, we are rebuilding how mortgage technology gets built. And that requires a fundamental shift in mindset. The traditional model is about outsourcing.
Speaker #6: How many developers? How many hours? Lines of code? We need partners focused on outcomes. What actually gets delivered? What business value gets created? CI&T understood that before we even had to explain it.
Speaker #6: They're not selling us seats; they're delivering results. And that's the kind of partner you need when you're trying to transform, not just maintain. First, they bring us capabilities we don't have.
Speaker #6: Both emerging technologies like their Flow AI platform, deep financial services expertise, and real financial services experience across domestic and international markets. The model that worked in 2023 won't work in 2025.
Speaker #6: We need partners who are as comfortable with AI-generated code as human-written code. Who measure success by outcomes, not hours and can help us figure out what right-sized teams actually look like in an AI-first world.
Speaker #6: CI&T has shown us they can make that shift. Now it's about scaling it.
Speaker #1: The New York Stock Exchange was packed on October 15th for our biggest impact AI event yet. Leaders from top global brands shared how AI is driving real results.
Speaker #1: From scaling beyond pilots to reimagining customer experience. AI isn't the future; it's the now. And the ideas born here will keep shaping enterprise transformation.
Speaker #1: Everyone's talking about artificial intelligence. We asked, a different question. Who's creating real impact? Together with Fundação Dom Cabral, CI&T launched the AI Lighthouse Awards, Brazil's first index measuring how companies use AI responsibly and at scale.
Speaker #1: It's more than an award; it's a benchmark guiding organizations toward ethical, human-centered innovation. Backed by data, research, and voices from Brazil's top business leaders, the initiative sparked nationwide coverage, reaching over 600,000 people through Forbes and other top media.
Speaker #1: And positioned CI&T as a leading voice in Brazil's AI transformation.
Speaker #5: Together with the Costa Foundation, CI&T partnered in the charity bike ride 2025 across Wales, turning every climb into a chance to make a difference.
Speaker #5: Each ride helps children in coffee-growing communities get closer to education, safety, and opportunity. On August 26th and 27th, CI&T was in official sponsor of the Lean Summit 2025.
Speaker #5: On the main stage, CEO Cesar Gon joined José Roberto Ferro to discuss what truly transforms organizations. Practice. The event also marked the launch of the Portuguese edition of Managing on Purpose, featuring a foreword written by Cesar.
Speaker #1: We joined the Gartner Summit in London, where leaders from around the world came together to talk about what's next in tech. On stage, our team shared how CI&T is helping companies turn AI into real business value.
Speaker #1: With CI&T Flow, our AI management system. We showed how one of our clients in banking unlocked over $200,000 in just nine months using AI across their delivery process.
Speaker #1: Because when AI connects every step of the journey, it stops being a tool and starts driving real transformation.
Speaker #7: Now I would like to invite Bruno to provide insights into our challenging strategy and evolution of our offerings. Thank you, Cesar. It's a pleasure to be here.
Speaker #7: We entered the quarter with more than 7,800 CI&Ters. A strong 16.3% growth year over year. Ensuring we have the talent to meet the growing demands of our clients.
Speaker #7: Our people strategy begins with an advanced hiring process. We have built a systematic engine to attract and onboard the right people. It begins with our partnerships with top technical universities.
Speaker #7: Which provide a large high-quality pipeline of young talent. Simultaneously, our reputation as a next-generation technology firm committed to a career-long development makes us desirable destinations for experienced professionals.
Speaker #7: Finally, we utilize an AI-enabled screening process to quickly identify the best candidates and we prioritize filling open positions with our own internal talent whenever possible.
Speaker #7: This creates a robust and efficient hiring model. The direct result of our hiring process is the ability to scale our workforce quickly. Supporting our revenue pipeline.
Speaker #7: Our robust training and development programs drive industry-leading employee satisfaction and retention, leading to a healthy voluntary attrition rate of 10.9%. Now, let me discuss our delivery model, which is central to delivering an AI value for our clients.
Speaker #7: Before extending these capabilities externally, we ensured mastery of AI internally by developing a systematic playbook for driving AI adoption. We've achieved an impressive 85% adoption rate of AI tools across our entire organization.
Speaker #7: This highlights our capability to effectively integrate new technology at scale. This widespread adoption has significantly fueled the growth of CI&T Flow. Over the past 18 months, the number of agents our teams have created and are using to deliver value to our clients has increased 15-fold.
Speaker #7: Today, our system operates at a substantial scale, with 4,700 active agents executing tasks across our business, from simple automations to highly complex workflows. Leveraging our extensive network of AI agents, we've developed compelling solutions that address our clients' critical needs.
Speaker #7: To give you a concrete example, our data modernization studio features a set of AI agents designed to streamline and modernize data pipelines. This end-to-end approach encompasses data assessment, quality checks, and script generation, ensuring seamless integration into modern data architectures.
Speaker #7: Our solutions significantly automate the transformation of legacy systems into advanced data platforms. By utilizing GenAI, we generate code, create technical documentation, and produce visual data lineage diagrams, therefore significantly reducing manual effort and risk.
Speaker #7: Through our data modernization fast track, we convert isolated data islands into comprehensive data intelligence systems. Expediting the process from assessment to post-migration. This approach overcomes the time and resource challenges of traditional migration, enabling our clients to quickly unlock the full potential of their data.
Speaker #7: As we continue to innovate with generative AI, we're witnessing a shift in the market towards more flexible, value-based pricing models. Clients are seeking greater predictability and a clearer connection between their investments and business outcomes, presenting us with an opportunity to monetize the value created by our AI-driven approaches.
Speaker #7: To align with this shift, we are actively experimenting with new engagement models, such as fixed price and output-based contracts. Which better align our compensation with the successful outcomes we deliver for our clients.
Speaker #7: We anticipate a gradual transition to this model's over time. With our AI management system, we are unlocking entirely new revenue streams. The large scale of opportunities driving our growth today were not feasible just a few years ago.
Speaker #7: Clients turn to us for our advanced AI capabilities, which empower them to address their most ambitious and complex challenges. Whether it involves modernizing legacy systems, building predictive platforms, or creating new AI-native business models.
Speaker #7: The direct result of our AI value proposition is our ability to consistently grow and capture market share. The value we deliver to our clients translates directly into the strong financial performance we provide to our shareholders.
Speaker #7: To guide you through our financial profile in detail, I'll now hand it over to
Speaker #7: Stanley. Thank
Speaker #8: you, Bruno, and good afternoon, everyone. Let me walk you through our third quarter 2025 financial performance. Our revenue in the third quarter was $127.3 million, an increase of 13.4% compared to the same period last year.
Speaker #8: Fully organic. On a constant currency basis, revenue grew 12.1% year over year. Looking at the year to date, our revenue reached $355.4 million, a 12.8% increase over the nine months '24 at constant currency.
Speaker #8: As Cesar mentioned, this quarter marks CI&T's fourth consecutive quarter of double-digit organic revenue growth, demonstrating the resilience and solidity of our business model. In the third quarter of 2025, our revenue from Latin America experienced a remarkable 35% year over year growth.
Speaker #8: In North America, revenue increased by 6% compared to the same period last year. Starting this quarter, we are reporting the performance of our Europe and Asia Pacific regions together under the designation new markets.
Speaker #8: We are pleased to announce that both regions have recorded sequential growth in third quarter 2025. Focusing on industry verticals, we particularly highlight the strong performance in financial services and retail and industrial goods, which grew by 51% and 11% respectively in third quarter compared to the previous year.
Speaker #8: These sectors have been actively prioritizing digital transformation and modernization. In the financial services sector, companies are increasingly investing in AI-driven analytics to enhance customer experience, streamline operations, and improve risk management.
Speaker #8: Similarly, retailers and industrial goods are adopting AI technologies to better understand consumer behavior, optimize inventory management, and enhance supply chain efficiency. Our strategic cornerstone for growth continues to be our disciplined land and expand approach.
Speaker #8: This strategy has resulted in a predictable and stable revenue base characterized by exceptional local retention and long client tenure. We have 10 clients, each generating over $10 million in revenue.
Speaker #8: This cohort has seen a reported revenue increase of 19.5% in the third quarter of 2025 compared to the same quarter last year. Another solid indicator of our expansion with our large clients can be seen by the growing number of clients, each generating 5 to 10 million in revenue annually from 11 clients in 2024 to 15 clients in the last 12 months.
Speaker #8: This illustrates our capacity to compound growth from within our established client base. In the third quarter of 2025, we achieved an adjusted EBITDA of $23.5 million, marking a 7.5% increase from the previous year.
Speaker #8: The adjusted EBITDA margin stood at 18.5%, reflecting a 1 percentage point decrease from third quarter 2024. This decrease is largely attributed to our anticipated upfront investment in expanding our workforce with an increase of over 1,100 employees during this period, supporting our pipeline and revenue growth trajectory.
Speaker #8: Combined with an unfavorable FX rate in the comparable period, we've maintained a disciplined approach towards our operating expenses. This is evident in our reduced SG&A as a percentage of sales.
Speaker #8: For the first nine months of 2025, we generated $46.5 million in cash from operating activities, translating to a robust 72% cash conversion rate from adjusted EBITDA to operating cash.
Speaker #8: This strong cash conversion provides us with the flexibility to reinvest in strategic initiatives to foster growth. In the third quarter of 2025, our adjusted net profit reached $11.3 million, marking a 10.6% increase compared to the same period in 2024, with an adjusted net profit margin of 8.9%.
Speaker #8: Our adjusted diluted earnings per share for the quarter was $0.09, demonstrating a notable 16.4% increase from last year. In summary, we have successfully achieved double-digit organic revenue growth on a consistent basis, while maintaining solid profitability metrics and strong cash generation.
Speaker #8: Additionally, we are actively executing our share repurchase program, further enhancing shareholder value. At this point, I would like to invite Cesar back to the stage to share our business
Speaker #8: outlook. Thank
Speaker #2: you, Stanley. For the fourth quarter of 2025, we project revenue to be between $130.4 million and $132.6 million US dollars. The midpoint of this range represents a year-over-year growth of 16.8% on a reported basis and 12.5% at constant currency.
Speaker #2: For the full year of 2025, we are maintaining the midpoint of our revenue guidance, while refining our expectations. We anticipate organic revenue growth at constant currencies to be between 12.5% and 13% year over year.
Speaker #2: Additionally, we are reaffirming our adjusted EBITDA margin guidance, which we expect to be in the range of 18 to 20%. This guidance reinforces the strong pace of organic revenue growth reported throughout the year.
Speaker #2: Above the industry average, positioning us well for continued expansion as we move into 2026. This outlook also reflects the effectiveness of our growth initiatives.
Speaker #2: A robust commercial pipeline, ongoing expansion with our largest clients, and the evolution of our AI-boosted offerings. In closing, I want to extend my heartfelt gratitude to all CI&Ters around the world.
Speaker #2: Your dedication to innovation and to delivering exceptional value to our clients remains the driving force behind our progress. This concludes our presentation. We will now open the floor for questions.
Speaker #2: Thank you.
Speaker #1: Okay. We'll now begin the question and answer session. I'll announce each participant's name. Once you hear your name, please unmute your line and ask your question.
Speaker #1: Then, when you're done, please mute your line. The first question comes from Luke Morrison from Canaccord. Hi, Luke. Please go ahead.
Speaker #3: Hey, guys. Nice results, and thanks for taking the question here. So I just want to double-click on the new engagement model slide that you presented, which first came out at your Analyst Day.
Speaker #3: You showed it here again. Just maybe help us think, how should we be thinking about the scalability of those models from here? Where are you seeing the earliest traction or client readiness?
Speaker #3: And what needs to happen operationally or contractually for those newer constructs? Particularly flow or agent-based consumption to represent a more meaningful share of your revenue mix over time.
Speaker #2: Thank you. Thank you, Luke. Great to see you. Can I start, and Bruno complement me at your will? Well, as you mentioned, we see the future of our industry evolving from time material-based model pricing model to more value-based pricing models, more close with a more close link to the business outcome.
Speaker #2: But we see this happen in a gradual way. So it's also an opportunity to monetize the intellectual property that will be embedded in every single engagement in the future agentic architecture.
Speaker #2: So what we are doing now is proactively we are introducing this approach to our clients and encouraging and getting encouraging new results with our main clients.
Speaker #2: And in terms of timeline, I see this as a midterm opportunity. Gradually, we will translate and this is an amazing opportunity to translate gradually our superior performance into not only margins, but also scalability.
Speaker #2: And also giving our clients a more flexible, a more powerful set of options in terms of pricing models. So I we are not giving a concrete or outlook right now, but I think along the probably along the next six 12 to 18 months, we will have this as a relevant part of our P&L and the way we are seeing the future in our commercial and pricing models.
Speaker #1: And maybe just to complement Luke on your question around the education that clients require on their side to buy those models. So of course, there's the consumption basis is actually where most of the ramp-up of that education needs to happen and it's not easy.
Speaker #1: So it's kind of go to procurement and they have to learn a new way to buy, right? So that's that will take some time to happen.
Speaker #1: But there are other models that also tap into that ability to automate work and kind of which is kind of an output-based model where we can have like a fixed price by unit of software developed we have like even fixed price of overall engagements because of the tools that we have that we kind of can map those engagements and kind of can be really assertive in terms of what we will deliver.
Speaker #1: So there are models that are very easy to buy that any procurement area could buy just right now. There's no they don't require any education.
Speaker #1: So when there are and there's this new thread here with the consumption base, with IP-based consumption that will take some time. But all in all, I think we will go to move very quick in the next 6.12 to 18 months towards those models.
Speaker #3: Excellent. Very helpful. Maybe just a quick follow-up here. So just regarding your guidance, the guidance for Q4 implies continued sequential acceleration in growth as we exit the era.
Speaker #3: I know it's early and you're not guiding to next year, but just help us think about just sort of
Speaker #1: 2026 . And are there any factors we should be keeping in mind around seasonality or demands normalization as we enter next year ? Thank .
Speaker #2: .
Speaker #3: We
Speaker #3: are based our You outlook Sure . for Q4 in the I think in basically on the consistent performance of the nine months of 2025 and combining with a very solid commercial pipeline .
Speaker #3: And what think , a good data is I point is are having a now we strong sales conversion . I credit this to our differentiation based on our AI strategy , synergy flow , the kind of efficiency and even the the whole positioning regarding adoption of AI .
Speaker #3: So basically a consistent track record , a solid pipeline with a stronger sales conversion when compared to the to the last year , for example .
Speaker #4: Thank you . Luke next question . Our comes from Gabes from TD . Schwarzman Cowin . Hi , gates . Please go ahead .
Speaker #5: thanks for taking my Hey , questions . Schwarzman on for Brian Bergen . Just wanted to touch on gross margin . It looks like it ticked down 30 bips sequentially .
Speaker #5: Just curious talk a if you could little bit about the trends there . What are the underlying drivers in terms of gross margin and particularly how should we think levers you guys have moving into pull to 2026 that you can bode well expansion and support ?
Speaker #5: EBITDA growth? Any, and also any sort of color on the actual underlying FX on EBITDA margin or margin would be impacts appreciated.
Speaker #6: Thank you for gross question . This is Stanley here . first of Well , it's all , very confident on our ability of delivering this full guidance year of EBITDA margin .
Speaker #6: 18 to 20 adjusted So EBITDA margin for the full year been . We've delivering those robust profitability out of initiatives metrics , efficiency gains of course , we are SG&A scaling throughout and the year quarter , we .
Speaker #6: deliver a Every lower as a as a as a percentage of revenue . And that will not change . We will continue that towards the towards Right .
Speaker #6: future . and combining that , the fact that we are delivering those robust profitability under benchmark growth path organic , this our this capacity to , to to balance very well this showcases investment in the AI opportunity and also this cost discipline that we've been managing the company .
Speaker #6: So we are scaling our in business a in this very solid manner . And this this will not change in of not course , we are guiding 2026 yet , but we don't have any , any factor that would mean will this change that .
Speaker #5: Understood . And just a follow up . I to touch on demand trends , obviously tariff volatility has brought a related lot of uncertainty in the environment .
Speaker #5: Can on maybe how that's impacting your various verticals and also touch then on the US versus Latin America dynamics ? Have clients gain any comfort tariff with the related volatility and subsequently , have you seen any sort of recovery in terms of discretionary spending or smaller , more strategic spend ?
Speaker #3: Sure . I can get this one . I think we are growing sequentially in our regions . We we of course , Latin is stronger now , 12.5% growth sequentially .
Speaker #3: Third , over year . 35% year So driven basically by fast AI adoption among not only companies but users , not for America is also getting good traction .
Speaker #3: Now with 5.4 sequential growth and even new markets now are growing with 4.8% sequentially . So basically , we see two main sources of demand .
Speaker #3: And we see the overall environment improving , certainly driven by the evolution of the AI momentum . That is , as I mentioned , very strong in Brazil and more warming up US in the .
Speaker #3: And we can see by our our commercial activity evolving and giving us a very strong commercial pipeline for , for next few years .
Speaker #3: And give us a lot of confidence . Confidence that we will continue in a in a growth trajectory , in a very good pace .
Speaker #3: But as , as to , as a way qualify demand , I see two groups , one is is basically an demand for foundational spending .
Speaker #3: Let's say there are large-scale projects to upgrade legacy technology and accelerate cloud and data migration. This is huge. I think now.
Speaker #3: And and of course , we are extensively using AI and flow agents in this , let's say , foundational engagement . And there is another very well done .
Speaker #3: Source of demand that is direct AI investment . I see . Relevant budget allocation moving from traditional IT to AI specific solutions . So around let's start with the low hanging fruit of hyper efficiency in the software development life cycle .
Speaker #3: Life cycle . But going for customer experience journeys like how you move for more conversational commerce or AI boosted chatbot . So especially in Brazil , using WhatsApp for example , and we see more broad programs like AI for transformation engagements , this is when the client wants kind of design and strategy and roadmap to accelerate their AI adoption .
Speaker #3: And finally , we are seeing a growing number of use cases using AI for optimize or label intensive or data intensive business process .
Speaker #3: So it's real , it's amazing . AI momentum . And I think we are very well positioned to to continue to capture opportunity this .
Speaker #3: Yep .
Speaker #4: Thank you . Gates . Our next question comes from Maria Clara in San from Itau . Maria Clara , please go ahead .
Speaker #7: Hi everyone . Thanks for the opportunity here . I just wanted to double click on the improvement of pipeline to sales conversion topic such that .
Speaker #7: Can you give us more color on this ? Is there any region that is calling more attention or maybe any specific client vertical that is worth highlighting ?
Speaker #7: is And what the pricing strategy behind those new contracts ? Are them all coming from output based , or do you still sell them and material and lastly , if you could please provide us a view on how perceive the you competitive environment , it would be great as well .
Speaker #7: Thank you .
Speaker #3: Thank you Sure . for your question , Maria Clara , I think in terms of vertical , I need to highlight financial services .
Speaker #3: It's 51% year over year growth expansion in 15% sequentially . So it's it's a combination of lending in new clients and expanding our main financial service clients .
Speaker #3: So, we also see a lot of growth in retail industrial goods, particularly in the auto industry, where we are very well positioned and expanding in the U.S.
Speaker #3: It's more about expanding our wallet share in this retail , industrial , good portfolio . And then we have also the good news of tech , tech and telco that were early year was was stable .
Speaker #3: But sequentially now, it is a 19% expansion, so it's very good news. Other considerations are our five main verticals: three are expanding and two are stable.
Speaker #3: We see consumer goods and life science stable in the sequential based . So we're going for your question regarding pricing models . It's a mix we our strategy is not a radical move from time to other models , but offering to offer to our clients a mix of models .
Speaker #3: And we can combine creatively . These models in the best interest of them . So it's it's more more of a mix game of some time materials , some consumption bases , some pieces outcome based and and other models .
Speaker #3: Which are inventing because this is a moment where we are really discovering the best way to play this new game in the AI agentic world .
Speaker #3: So and a lot of engagements also extend from just build for building run engagements and we need different pricing models for to support this to .
Speaker #3: shift So this is basically I think it's a long term game , but it's inevitable that the the AI will reshape the way .
Speaker #3: Pricing in business model operating in our industry . it's amazing And I think opportunity for us to to improve not only margins but scalability of our business .
Speaker #3: And your last questions were questions regarding .
Speaker #7: The competitive environment , overview , how you see competition .
Speaker #3: Yeah , I think we did . Looking back , we did an amazing job over the last three years . Introducing Seeing Flow in July 2023 and transforming every Sint engagement into an AI engagement .
Speaker #3: We mentioned a lot the massive reskilling of 8000 people and I see since really ahead of our competitors . I know that everyone is trying to figure out how to play in this new moment of the industry , but what we get from our clients is we I think are ahead and in my perspective , we are accelerating .
Speaker #7: Thank you so much for your answer ,
Speaker #3: My pleasure .
Speaker #4: Thanks , Clara . Our next question comes from Puneet Zhang from JP Morgan . Hi Puneet .
Speaker #8: Hey , thanks for taking my question . Very nice quarter . So this year you are all set to grow in give or take in low teens .
Speaker #8: Despite significant headwinds like tariffs and whatnot . As we think about next year , I know you're not providing the guidance , but should we expect growth rates to accelerate next year from current levels ?
Speaker #3: Thank you . Thank you for your question . Unfortunately , we are not anticipating 2020 . Yet . But as I mentioned , we are very confident on our future growth based on the evolution of commercial .
Speaker #3: Our commercial pipeline and better sales conversion by now is more about delivering a strong very Q4 and in the next call , we will be very happy to really give you our guidance for next year .
Speaker #8: That's fair . And and can you talk about your hiring plans like the skills of people you hire , experience level , and should we expect a revenue growth to continue to outpace your headcount growth ?
Speaker #8: And what would that mean for margins over the near term at EBITDA margin level ?
Speaker #3: I think this one . Puneet , our our
Speaker #9: Always strategy . been to develop our own people . Right ? So and that's we think of ourselves as a teaching organization , as a learning organization , we're very proud that that we think we learn faster .
Speaker #9: Than the average market . And I think , you know , the the achievements around , you know , what we are at with flow and our adoption and results we're creating for our clients is a is a proof of that .
Speaker #9: we So hired , you know , we continue to our strategy to hire from the , you know , base of the pyramid and promote from inside and give opportunities for people to grow with us .
Speaker #9: So and to invest in our people and invest and give the the opportunity to develop themselves , you know , to to reskill , to upskill and to move on to different , different roles and different profiles .
Speaker #9: think I that that is that would be a an absolutely critical going forward ability as the industry will transform all those roles will transform , people will do things in a completely different way than they do now , you know , 2 to 3 years from now .
Speaker #9: So that ability to be always learning and not not , not try to hire for for a job description because those job descriptions will be very fluid from now on .
Speaker #9: So it's ability to that we continue to hire for potential , continue to hire for ability to learn and to and to to grow .
Speaker #9: That's that's our strategy and I think will be a winning strategy going forward .
Speaker #8: Thank you .
Speaker #4: Thanks , Puneet . Our next question comes from Leonardo , from UBS . Leo , please go ahead .
Speaker #10: Hi everyone . Thank you for taking my question . Congrats on the numbers . Very good . Revenue beats . I just want to make sure we don't have anything misunderstood here .
Speaker #10: So you for the full year 2025 , you you reinforced the midpoint of revenue growth guidance right ? But you beat Q3 figure so that could assume and I'm probably wrong here , but that could assume Q4 is going to be slightly slower than you anticipated .
Speaker #10: Maybe you advanced some revenue to Q3 . I don't know , how should we read this ? I know you just said a in a in previous answer , I'm not going to talk about 26 .
Speaker #10: I get that . But I just don't want to leave a wrong impression here on on this shift between the quarters .
Speaker #3: you . Thank Well , I think it's it's basically we are guiding , keeping the pace , keeping our goal for the year .
Speaker #3: Last quarter we raised the the midpoint . So we are of course leaving some room to to beat again the number . And we are very confident .
Speaker #3: I think it's it's a strong year and with an amazing exit rate for projecting 2026 . So it's basically keeping our pace our and make sure we , we , we , we leave room for even to accommodate some FX .
Speaker #3: So surprising FX moves . We are not expecting . But we need to be conservative in terms of projecting effects . But at the end we are really projecting a solid Q4 and again , a very good exit rate for projecting next year .
Speaker #10: Thank you . Cesar , could do a second one . It's another question related to how well you did . And what's going to be ahead , if there is a risk top client right .
Speaker #10: Top client . Now when you round up gets to 12% of total sales performance was amazing right ? Congrats on that . I'm sure this is something to celebrate because in the past we saw how a large clients can impact all all IT service peers .
Speaker #10: So so how what how do you think about that ? Especially about I don't know , should we should you diversify . Should you not .
Speaker #10: And how you what do expect in terms of what heard in we the media a couple of months ago that these top client supposedly is going to reduce third party is that other part of third party personnel .
Speaker #10: So you could talk a little bit about Thank you . client .
Speaker #3: Sure . I think we are we in good are shape . Gradually we have been growing in diversifying our portfolio of clients . I think top one is a massive victor of our value prop .
Speaker #3: And you saw sequentially grew 13% . But our is top ten clients growing consistently too . So we sequentially 11% our top ten if you exclude top one is still a strong 10% growth in our top ten .
Speaker #3: If you look only the top ten is a is a 7% sequential growth . So I think it's a very , very solid Lucian , to give you another data point , eight of our top ten clients are growing sequentially .
Speaker #3: So regarding specifically our top one , as you know , is a very large financial service organization with dozens of different businesses . And we are very proud to be involved in different parts of their business strategy and .
Speaker #3: expand in continue to different areas . I think it's it's it's the result of due ability to our And efficient , superior results across the board .
Speaker #3: And we see this engagement will grow . But of continue to course a slower pace . But it's part of of what we we were anticipating and we are we are , we have now a lot of new avenues for it's part growth .
Speaker #3: So of the with very work We we large clients . And when they they see the , concrete the results of engaging with city tends to they tend to to concentrate a lot of demand on us .
Speaker #3: But we manage I think , in , in a good way , this kind of expansion . So I think we are in good shape .
Speaker #3: If you if you look at in a more , let's say , long term perspective , four years ago , we were top ten .
Speaker #3: Were we were kind of 67% of our revenue . Now is 43% . So it's gradually as we evolve , we will have we will continue to diversify the revenue source .
Speaker #3: But I think we are in good shape .
Speaker #10: Yeah . No . Very good point . The numbers talked by themselves right . Very good . Just quick , quick follow up .
Speaker #10: abuse my Sorry to time . How should we think about revenue in this top when clients or maybe top ten as a whole .
Speaker #10: How recurring is it . How can we see so recurring ? I get that you maybe won't grow 70% year on like year , but how recurring is that ?
Speaker #3: Historically, the recurring revenue is very strong. Annually, we disclose our net revenue retention, and it's always a sound number. I think the business model and engagement are the same.
Speaker #3: are If you investing in AI and and digital and you if you are leveraging real concrete results , you will increase your investment .
Speaker #3: So it's an equation of success in instead of a project based model . So as , as we continue to support our clients to expand their strategy , I think we are in good shape to continue , continue expanding , having a very high level of recurring revenue with them by design .
Speaker #10: Very good, very good. Thank you so much.
Speaker #3: My pleasure .
Speaker #4: Thank you . Leo . So that concludes our Q&A session . Thank you all for attending event our today . I'll now invite Cesar Gon to proceed with his closing remarks .
Speaker #4: Please .
Speaker #3: Sure . Thanks , Bruno . Stanley . Eduardo . Thank you all for joining us today . And to all singers around the world , I'm very what you proud of accomplished .
Speaker #3: This quarter . What we could do as a team . Congratulations for another record quarter . Let's keep it pushing and a special thank you for our clients for choosing Cynt such an in important moment in the industry .
Speaker #3: helping you , Mr. . Clients , to co-create the future in this moment exciting innovation . So everyone stay well . See you soon .
Speaker #11: Everybody . I noticed you . I was like the last one . No . Yeah . No . It was just like . This one .
Speaker #12: Good afternoon everybody . Thank you for being here today . We are going to get to my remarks and Q&A . As always .
Speaker #12: But I do have the FBI director with me here . Kash Patel , you all know him well he's here to provide an and update for you all with respect to China , as you know , President Trump had a very successful meeting on his trip to Asia with President XI , where they discussed the need for China to crack on fentanyl production and distribution , which ultimately makes its way here to the United States of America .
Speaker #12: And the FBI director recently traveled to China following President Trump's meeting to meet with his counterpart in And he Beijing . has a really positive announcement for the American people to wanted president me to bring the share .
Speaker #12: FBI director out that with all to share today . So the So , Kash , please , thank you for being here .
Speaker #11: Thanks , Caroline .
Speaker #13: As Caroline mentioned , we have some tremendous news thanks to President Donald J . Trump . Once again for the American people , as the as soon president of the United States took office , he issued a mandate to rid America of the scourge that is fentanyl , a drug that has killed hundreds of thousands of Americans .
Speaker #13: Thanks to his leadership and engagements direct with China , we set up a framework to execute that mission . Eight months ago , Attorney General Bondi immediately thereafter took steps to engage her counterpart in China at the Ministry of Public Security .
Speaker #13: Pursuant to their direct discussions as the FBI director designated to run on counterpoint this , along with the Secretary of State , Rubio and Ambassador Perdue , and the team here at the white House , we set forward a path to implement the policy needed to plague of crush the fentanyl .
Speaker #13: Deputy Attorney General Blanche and our teams have been hard at work ever since , ultimately culminating in my trip to Beijing last week .
Speaker #13: This was only possible due to President Trump's historic engagement with President XI . Just a few short weeks ago . That set the stage for today's announcement .
Speaker #13: At that meeting , the leaders reached an agreement , but just to put this in frame for the American people , a reminder here that nearly 100,000 people died of fentanyl overdoses just last year alone here .
Speaker #13: This year , under this president , the FBI has seized 9900kg of fentanyl so far . That is a 31% increase from the same time period last year .
Speaker #13: To put it in perspective , that's enough fentanyl to kill 127 million Americans . Fentanyl precursors are what makes up fentanyl . While we , the interagency , the Department of Justice , have been hard fighting to seize and stop drug traffickers , we must attack fentanyl precursors .
Speaker #13: The ingredients necessary to make this lethal drug . That was the sole purpose of my trip to China to these precursors . And if successful , we would suffocate the drug trafficking organizations ability to manufacture fentanyl in places like Mexico .
Speaker #13: This was the first time an FBI director been to has China in over a decade , and received the audience with his counterpart to address this matter directly .
Speaker #13: And again , thanks to President Trump's direct engagement with President XI , the government of China committed fully to my engagement there on the ground in Beijing at a level never seen before .
Speaker #13: While at Ministry of Public headquarters , I met with my Security counterpart at NPS , where that Chinese government agreed on a plan to stop fentanyl precursors .
Speaker #13: What does that mean ? The People's Republic of China has fully designated and listed all 13 precursors utilized to make fentanyl . Furthermore , they have agreed to control seven chemical subsidiaries that are also utilized to produce this lethal drug .
Speaker #13: Effective immediately . Essentially , President Trump has shut off the pipeline that creates fentanyl , that kills tens of thousands of Americans . These substances are now banned , and they will no longer be utilized by the Mexican drug trafficking organizations or any other around the dtos world to make this drug .
Speaker #13: This historic achievement has saved tens of thousands of lives . This historic achievement would not have been possible without the tremendous team of Trump .
Speaker #13: This historic achievement has saved tens of thousands of lives . This historic achievement would not have been possible without the tremendous team of President The Attorney general , the Department of Justice , the Federal Bureau of Investigation and Ambassador Perdue in China , whose ground level engagements were imperative to achieving result .
Speaker #13: This is yet this another example of how President Trump defends the people American provide security for the American people and puts the American people first .
Speaker #13: This is a historic , first of its kind achievement by any president to stop the scourge of fentanyl . And it should be championed by every single American .
Speaker #13: This achievement will save lives. We are thankful for President Trump's steadfast leadership and this FBI will fearlessly follow in his footsteps to ensure the mission of safeguarding the American public is achieved every single day.
Speaker #13: Thank you, thank you, Caroline.
Speaker #12: Thank you so much . Appreciate it . Okay . Thank you again . Director Patel , before we get going , I do have scheduling one quick announcement tomorrow .
Speaker #12: President Trump will be joined by the First Lady in the East Room for an executive order signing aimed at expanding opportunities for education, career development, housing, and other resources for young people transitioning from foster care to adulthood.
Speaker #12: This is part of the First Lady's Fostering the Future efforts, which are a best initiative. In other news, the Democrats dragged on the government shutdown for 43 days.
Speaker #12: The longest shutdown in U.S. history . But tonight , thanks to white House is very hopeful that this shutdown is going to come to an end .
Speaker #12: The damage caused by the Democrats with this reckless government shutdown cannot be forgotten . It is entirely the fault of the Democrat Party .
Speaker #12: Just look at the vote count. Hundreds of thousands of employees have missed their paychecks; tens of billions in wages and benefits were withheld, impacting vulnerable families.
Speaker #12: Millions of low income Americans missed their Snap benefits . Nearly 20,000 flights at airports across the country were delayed due to staffing shortages , causing Americans to miss family events , vacations and work obligations , according to Airlines for America , an estimated 5.2 million travelers have had their flights disrupted over the course of the Democrat shutdown , and our economy has lost billions and dollars billions of in economic activity over the course of this shutdown , hurting consumer sentiment and crushing the travel and hospitality industries , according to a CBO estimate , the Democrat shutdown could end up decreasing fourth quarter economic growth by two whole percentage points .
Speaker #12: The Democrat shutdown made it extraordinarily difficult for economists, investors, and policymakers at the Federal Reserve to receive critical government data. The Democrats may have permanently damaged the federal statistical system, with the October CPI and jobs reports likely never being released.
Speaker #12: And all of that economic data released will be permanently impaired , leaving our policymakers at fed flying blind at a critical period . It's hard to recap all of this without asking a simple question why ?
Speaker #12: Why have the Democrats put the American people through this pain for 43 days in a row? It feels like Groundhog Day being up here again, talking about this shutdown, and the answer to that question is pure partisan politics.
Speaker #12: They started this shutdown with a demand ridiculous to force taxpayer funded health care benefits to illegal aliens who broke into our country , it was even after clear President Trump and Republicans would never force American pay for free taxpayers to health care for illegals .
Speaker #12: In fact , President Trump's one big , beautiful bill fixed that problem . The Democrats kept dragging this reckless government shutdown on for weeks longer to boost their turnout in an election .
Speaker #12: Perhaps 1st May guess that's because the Democrats are totally captured by their far left wing base , who only care about attacking President Trump , even if it means hurting innocent Americans in our country .
Speaker #12: The Democrats weakness in their unwillingness to buck the fringe members of their party dragged this harmful shutdown on for seven weeks and inflicted massive pain onto the American public .
Speaker #12: But let's be clear the clean CR being voted on today in the House of Representatives that will lead to the reopening of the federal government is what President Trump and Republicans have supported from day one .
Speaker #12: Our troops, air traffic controllers, and federal employees will be back to receiving their regular paychecks. Families in need will get back to receiving their food purchasing assistance, and the people's government will soon be back open for business.
Speaker #12: President Trump looks forward to being able to finally end this devastating Democrat shutdown with his signature, and we hope that signing will take place later tonight.
Speaker #12: On another matter , I want to address the affordability issue that's received a great deal of media attention this past week , which is ironic because it didn't receive that much attention when Joe Biden was here .
Speaker #12: And inflation was at a record high of 9%, the worst inflation crisis in modern American history. President Trump won a landslide election, in part to address the affordability issues created by Joe Biden and the Democrats.
Speaker #12: a And that's exactly what President Trump has done since day one of his administration . Since the first day in office , in every day since the Trump administration has taken aggressive action to fix the Biden created cost of living issues , the notion that the same Democrats who just shut down the federal government to sabotage our economy rob people of their paychecks , and also helped Joe Biden ratchet up inflation to 9% , are now suddenly affordability champion champions .
Speaker #12: That notion is completely absurd, and it's something only the liberal media would have the gall to push. But the reality is that President Trump and his administration have done so much to lower prices and increase the economic prosperity of the American people.
Speaker #12: And this president and his team of amazing economic advisers are going to keep working on this issue every single day . In less than ten short months , President Trump signed the largest middle class tax cuts in American history , including no tax on tips , overtime and Social Security , which will guarantee that next year Americans are going to put more money back into their pockets .
Speaker #12: The president has completely unleashed American energy dominance to help bring gasoline prices to the lowest in five years, and we expect them to continue to decrease.
Speaker #12: And it has also lowered energy costs . Overall , there is more work to do . But again , the president's deregulatory and pro-American energy agenda is absolutely going to continue to drive down prices .
Speaker #12: This this formula worked , and president's first the term , and we expect that it's going to work again . And this is key because we know energy costs are the number one driver of inflation .
Speaker #12: Again, just look at what Joe Biden did to our energy industry over the past four years of his administration. And look at what happened to inflation as a result.
Speaker #12: Everything became more expensive to lower prescription drug prices and healthcare costs . The president has been working around the clock on this issue .
Speaker #12: He is obsessed with negotiating these good deals on behalf of the American people to bring down pharmaceutical drug costs and costs for Americans .
Speaker #12: And he has done so on a number of fronts . You have seen him discuss that in the Oval Office several times to fuel small businesses , lower their costs and incentivize hiring the Trump administration has already cut 30 unnecessary regulations for every new one on the books , which we know will save employers and small businesses the across country .
Speaker #12: Thousands of dollars in regulatory burdens . All of these pro Trump policies are working , and they will continue to work . Wages are rising at the fastest pace of the start of a presidential administration 60 in years .
Speaker #12: The cost of the typical new mortgage is down by nearly $3,000 per year . There's much work to do in this administration will continue to do it , but President Trump has already made great progress in cleaning up the economic disaster that was created by Joe Biden .
Speaker #12: With that , I will take your questions today . And in our new media seat , we have Bev Turner , who works for a new outlet UK outlet but based here in Washington , DC .
Speaker #12: GB news . Bev , thank you for being here today . Why don't you kick us off ?
Speaker #14: Thanks, Caroline. So the clock is ticking on the Friday deadline by which the BBC must retract and apologize for their malicious edits of the president in the documentary shown last year.
Speaker #14: The recently resigned Director General of the BBC yesterday described the organization as the very best of society and blamed the enemies of the BBC for this outcome.
Speaker #14: Also yesterday, a senior government minister launched a fierce defense of the channel in the House of Commons, saying that the broadcaster remains a light on the hill for people all over the world.
Speaker #14: So, does the President feel that the network is taking the situation seriously? Does he believe that they've shown sufficient regret? Does this strain the relationship between the President and the Prime Minister?
Speaker #14: And given that the organisation is publicly funded , is the president prepared to bankrupt the BBC in his pursuit of truth and justice ?
Speaker #14: Well .
Speaker #11: Thank you , Beth .
Speaker #12: There's a lot of questions in one there. I will say I know the president has a very good relationship with Prime Minister Starmer.
Speaker #12: You have been there . seen them You've in their interactions . You've questioned both leaders your in time joining us when we've gone to the United Kingdom a few different times now , however , he has always been very frank when he disagrees with leaders , even whom he has a good relationship with .
Speaker #12: And the BBC, being a fair news organization, is definitely an outlet. I think these two leaders would disagree. The president has made it very clear that this is a leftist propaganda machine that is unfortunately subsidized by British taxpayers, and he thinks that's extremely unfortunate for the great people of the United Kingdom.
Speaker #12: In Great Britain . And I think that the president was deeply concerned by the editing , the purposeful and dishonest editing of his speech that was so clearly fake news .
Speaker #12: And he rightfully dubbed that term many years ago. This is a classic example of that. We see it in the United States all the time.
Speaker #12: We see it now in the United Kingdom. As you know, the president's external legal counsel has filed a lawsuit against the BBC.
Speaker #12: We expect that to continue . And whether they apologize or not is up to them . Thanks for being here , Bev . Thank you .