LINX S.A. (NYSE:LINX) Q4 2019 Earnings Conference Call - Final Transcript

Mar 31, 2020 • 10:00 am ET

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LINX S.A. (NYSE:LINX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Carol Fong Chu

a fintech specialized in electronic means of payment with personalized and disruptive solutions for installment payments for the retail market.

And also, we have another solution for personalized delivery, which integrates the merchant's delivery after the e-commerce platform. The first one has been an important tool for retailers in times of greater demand for digitalization.

As you can see on Slide 4, recurring revenue reached BRL196 million, accounting for 76% of gross revenue, plus 15% over Q418 and up 8% vis-a-vis Q319. In the 4Q19, Linx Digital and Linx Pay Hub represented individually, approximately 13% and 12% of total recurring revenue, respectively. It's also important to mention that the acquisition of SetaDigital in October 2019 was allocated as part of Linx Core, reinforcing its stake in the recurring revenue.

Slide 5. Here we show that net income was 22% higher when compared to Q418 and up 13% year-to-date versus 2018.

Moving to Slide 6. Adjusted EBITDA was BRL53 million in the quarter, up 17% when compared to adjusted EBITDA in Q418. When comparing 2018 to 2019, there was a 16% increase, with an adjusted EBITDA margin of 24.7% in the year.

Thank you very much for your attention, and now we will initiate the Q&A session.