Leonardo Olmos

Leonardo Olmos requested more details on TIM's lease efficiency plan, specifically the timing of expected impacts from the IHS Towers partnership, rent sharing agreements, and leasing contract renegotiations.

Answer

CFO Andrea Viegas explained that the IHS agreement provides options for site construction for specific customers like agro and mining. She reiterated the goal to keep lease growth aligned with inflation despite increased 5G coverage, mentioning ongoing rent sharing discussions with Vivo for 3G/4G and continuous renegotiations with tower companies.

Leonardo Olmos requested more details on TIM's lease efficiency plan, specifically the expected timing and impact of the IHS Towers partnership, rent sharing agreements, and lease contract renegotiations.

Answer

CFO Andrea Viegas explained that TIM is in continuous discussions with partners. The IHS agreement focuses on building specific sites for customers like agro-business and mining. The goal for lease costs is to grow only with inflation, despite increasing 5G coverage. She confirmed CADE's approval for expanding the rent-sharing agreement with Vivo for 3G and 4G, and ongoing renegotiations with tower companies to achieve the inflation-linked growth target.

Leonardo Olmos from UBS inquired about the C6 Bank partnership monetization, asking if a potential non-cash write-off could impact the cash dividend policy. He also asked for details on the inflation metrics used for adjusting leasing contracts.

Answer

CEO Alberto Griselli clarified that the C6 deal has a positive cash impact and contributes to expanding cash flow, which supports the company's policy of increasing shareholder remuneration. CFO Andrea Viegas explained that leasing contracts are adjusted by a mix of inflation indices, with the major part now tied to EPCA, and that the company continues to renegotiate these contracts to find efficiencies.

Leonardo Olmos asked about client trends regarding vendor consolidation, questioning if clients are concentrating their business with fewer IT service firms and how this competitive dynamic is affecting Globant's ability to grow its accounts.

Answer

CEO Martín Migoya and CTO Diego Tártara responded that Globant has been successful in vendor consolidation processes and continues to grow its number of million-dollar-plus accounts. Tártara noted that major tech shifts like AI are causing clients to seek out nimble, innovative partners like Globant, sometimes leading to de-consolidation, which presents an opportunity.

Leonardo Olmos inquired about the impact of embedding more industry experts into local teams on future employee growth and utilization rates.

Answer

CFO Juan Urthiague projected continued net headcount additions, particularly in Latin America and India, while aiming to increase the utilization rate from 79.8% towards the 81-82% target. COO Patricia Pomies and CTO Diego Tartara added that this strategic shift ensures deep domain expertise is close to clients, enabling proactive engagement with new technologies like AI and digital twins.

Leonardo Olmos questioned how the macroeconomic situation in the U.S., particularly concerning tariffs, is affecting client IT budgets and how VTEX is positioning its platform in discussions with them.

Answer

Chief Financial Officer Ricardo Sodre explained that while the macro environment creates volatility, it also prompts enterprises to seek cost-effective and agile solutions, positioning VTEX favorably. He noted that despite increased volatility observed in April, the company is maintaining its full-year guidance. He added that VTEX's current small market share in the U.S. makes it less exposed to U.S.-specific macro shifts, allowing it to focus on execution.

Leonardo Olmos requested a deeper analysis of the 2025 guidance assumptions, seeking clarity on growth expectations for Latin America (excluding Brazil and Argentina) and the Rest of World, given the recent deceleration.

Answer

CFO Ricardo Sodre clarified that the guidance acceleration from Q1 to the full year is driven by a decreasing headwind from Argentina's recovery, partially offset by new headwinds from softer consumption in Brazil. He also noted that longer implementation times for larger enterprise customers globally are factored into the revenue timing for 2025.

Leonardo Olmos from UBS inquired about VTEX's relationship with system integrators (SIs), its evolution, future strategy, and whether any competitors are gaining traction in that channel.

Answer

Mariano Gomide de Faria, Founder and Co-CEO, stated that the SI ecosystem is maturing globally, reducing the need for VTEX to provide direct implementation services. This shift is a deliberate strategy reflected in lower services revenue and higher margins. He emphasized that the focus remains on subscription revenue, which constitutes 96% of the total. Regarding competition, he noted that the competitive landscape has remained stable with no significant shifts, and VTEX's annual revenue churn remains consistent in the mid-single-digit range.

Leonardo Olmos inquired about new telecommunications legislation in Mexico, its potential impact on spectrum distribution, and any concerns related to the U.S. administration's views on market concentration in Mexico.

Answer

CEO Daniel Hajj Aboumrad stated that América Móvil is closely monitoring the proposed laws currently being discussed in Mexico's Congress and is providing its views to legislators. He noted that the company's market share in fixed broadband and TV is 27% and Telcel's mobile subscriber share is 55%, arguing that the company is no longer a dominant player and that the new laws should reflect this reality.

Leonardo Olmos from UBS Group AG asked about the financial impact of the C6 Bank partnership monetization, specifically if a potential non-cash write-off could affect dividend payments. He also inquired about the inflation metrics used for adjusting leasing costs.

Answer

CEO Alberto Griselli clarified that the C6 deal has a positive cash impact and contributes to expanding cash flow, which supports the company's policy of increasing shareholder remuneration. CFO Andrea Viegas explained that for leasing costs, the majority of contracts are now adjusted by the EPCA inflation index, with a smaller part tied to IGP-M, and that the company continues to renegotiate these contracts.

Leonardo Olmos from UBS inquired about the dividend outlook for 2025, asking for a breakdown of expected distributions and how the non-cash benefits from the 2024 concession migration would affect 2025 dividends.

Answer

Executive David Sanchez-Friera reaffirmed the guidance for a shareholder payout of at least 100% of net income for 2025 and 2026. He detailed that BRL 4.2 billion is already committed for 2025 via a capital reduction and interest on capital, supplemented by a BRL 1.75 billion share buyback program. While the Q4 provision release was an accounting measure, he stated that the company has a monetization plan for real estate and copper that will positively impact future cash flow and results.

Leonardo Olmos asked about potential non-operating drivers for net income, specifically profits from asset sales, the reversal of concession liabilities upon migration, and the expected trend for tax recoverables in the second half of 2024.

Answer

Executive David Sanchez-Friera stated that financial impacts from the concession migration cannot be disclosed yet but may be discussed in Q4. He noted that the current income tax rate of ~27% is historically high and could see a reduction due to seasonality and interest on capital declarations. Regarding tax assets, he confirmed that the positive working capital impact is consistent, and the 'other costs and revenues' line, which includes tax recoveries, is expected to follow past trends.

Leonardo Olmos of UBS Group AG inquired about CI&T's strategy for managing rapid employee growth to meet rising demand, the impact on utilization rates, and the reasons for an income tax rate that was higher than anticipated.

Answer

Bruno Guicardi, Founder and President, explained that headcount growth is a manageable challenge, aided by an AI-enhanced onboarding process that keeps utilization rates healthy between 85-90%. CFO Stanley Rodrigues addressed the tax rate, attributing the quarterly increase to one-off restructuring expenses and losses in emerging regions, advising analysts to focus on the cumulative 9-month rate for a clearer picture and noting the cash tax rate has improved year-over-year.