LWSA’s Remarkable Q3 Performance: Profits Soar and Dividends Announced

LWSA, formerly known as Locaweb, has reported impressive financial results for the third quarter of 2024. The company’s net profit reached R$16.9 million ($2.96 million), marking a staggering 336.4% increase compared to the same period last year. This substantial growth reflects LWSA’s ability to navigate challenging market conditions effectively.

The company’s adjusted net profit for Q3 2024 stood at R$37 million ($6.49 million), representing a 52.7% year-over-year increase. LWSA’s strong performance stems from significant productivity gains and robust operational indicators.

The company saw an 18% increase in its Own Store Gross Merchandise Value (GMV) and a 15.9% rise in Ecosystem GMV compared to Q3 2023. LWSA’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached R$67.7 million ($11.88 million), showing a 50.7% increase from the previous year.

The adjusted EBITDA climbed to R$73.7 million ($12.93 million), a 36.2% year-over-year growth. This performance reflects the fair value remeasurement of Earnouts and reduced expenses related to receivables anticipation in payment operations.

The company’s net operating revenue for Q3 2024 totaled R$349.3 million ($61.28 million), a 5.8% increase compared to the same period in 2023. This growth was primarily driven by the Commerce segment, which saw a 19.7% revenue increase, and the BeOnline/SaaS segment, with a 22.2% revenue growth.

LWSA’s financial health has also improved, with net debt decreasing by 58.4% year-over-year to R$460.3 million ($80.75 million). The company reported a financial result of R$8.5 million ($1.49 million) for Q3 2024, a 101.2% change from the previous year.

This performance was influenced by receivables anticipation expenses in payment operations and lower financial income related to cash application.

LWSA’s Remarkable Q3 Performance: Profits Soar and Dividends Announced

In light of these positive results, LWSA has announced a dividend payment of R$40 million ($7.02 million). Shareholders will receive R$0.07164686 per common share, excluding treasury shares. The payment is scheduled for November 21, 2024, with the record date set for November 12, 2024.

Despite the strong financial performance, LWSA’s stock (LWSA3) closed at R$4.39 on the day of the earnings release, representing a 3.3% decrease from the previous day’s closing price. The stock has experienced a decline of over 20% since the beginning of the year, reflecting broader market trends and investor sentiment.

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