LINX S.A. (NYSE:LINX) Q2 2020 Earnings Conference Call - Preliminary Transcript

Aug 12, 2020 • 10:00 am ET

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LINX S.A. (NYSE:LINX) Q2 2020 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Linx's Conference Call to discuss the Results of the Second Quarter 2020. With us here today are Mr. Alberto Menache CEO; Ramatis Rodrigues, CFO; and Carolina Pontes, Investor Relations Officer of the company. This quarter, we also have here Linx's VP, Gilsinei Hansen of Linx Core; Jean Klaumann, Linx Digital; Denis Piovezan, Linx Pay; and Flavio Mambreu from Marketing and People.

We would like to inform you that this event is being recorded and simultaneously translated into English. All participants will be on listen-only mode during the company's presentation and after that we will initiate the Q&A session when further instructions will be provided. [Operator Instructions]

This event is also being broadcast live via webcast and may be accessed through Linx's website at ir.linx.com.br where the presentation is also available for download.

Participants may view the slides in any order they wish. The replay will be available shortly after the event is concluded. Before proceeding, let me mention that forward-looking statements about future events, operating or financial results are based on beliefs and assumptions of Linx management and also on information currently available to the company.

Forward-looking statements are no guarantee of performance as they involve risks, uncertainties and assumptions since they refer to future events and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that conditions related to macroeconomic conditions and other operating factors could cause results to differ materially from those expressed in such forward-looking statements.

Now, I'll turn the floor over to Mr. Alberto Menache to start the presentation. You may proceed sir.

Executive
Alberto Menache

Good morning and thank you very much for your interest and trust in Linx. As you know, this was certainly the most intense social distancing period in Brazil so far. In attempts to halt the spread of COVID-19 several non-international commercial businesses were shut down. And this had an impact on a large portion of our customer base. But we turn this into an opportunity. We technologists provided to our end to end platform, we're able to offer solutions that allowed retailers to proceed with their activities mainly through Linx digital offerings, but also for through the restaurant apps. And all this becomes apparent when we look at the strong acceleration of the digital transformation process of the last month. We strengthen our partnerships with the most relevant marketplaces in the country. We launched Linx commerce performances, opening the possibility for immigration with the CW marketplace.

Also, the Neemu app experience a significant demand growth, which is the app delivery, and we were able to double the number of customers of the payment link in June versus May. Also this quarter, we invested in the functional evolution of the e-commerce platform with omni capabilities to extend our services to Brazilian midsize retailers.

And we are currently running a pilot project in the fashion segment. And of course, as we always say in our calls and other