EX-99.1 2 a991earningsreleasefor2q20.htm EX-99.1 Document
Exhibit 99.1
Semantix Announces 2Q 2023 Financial Results
Second Quarter 2023 Financial Highlights
Proprietary SaaS revenue for the second quarter of 2023 grew 47% year-over-year.
Gross profit increased 51% in the second quarter of 2023 year-over-year, with gross margin improving 15 percentage points year-over-year to 47% in the second quarter of 2023.
Net revenue for the second quarter of 2023 of R$48 million, reflecting an increase of 4% year-over-year as compared to the second quarter of 2022.
Semantix had 14 customers in 2Q23 each contributing more than US$1 million in revenue in the last twelve months.
Adjusted EBITDA loss in the second quarter of 2023 was R$26 million. Cash and cash equivalents of R$151 million as of June 30, 2023. Net cash (net of the loans and borrowings) was R$90 million as of June 30, 2023.
Key Business Highlights
Product and Go-to-market natural evolution towards AI platform and applications: substantial investments in product development and acquisitions over the past twelve months have propelled Semantix to evolve its product portfolio and refine its go-to-market communication to a comprehensive, integrated AI platform and a range of readily applicable AI applications tailored to diverse business use cases, such as in the finance, retail, health and pharma industries.
Synergistic Offerings via User-Friendly Web Portal: Semantix has strengthened its strategic alliances with Elastic and NEO4J and is strategically integrating these renowned global providers' complementary products with Semantix's cutting-edge AI platform and applications on a unified channel. Therefore, Semantix expects to reinforce its partners’ go-to-market in Latam while simultaneously expanding its own market penetration across diverse customer segments.
Elastic1: Semantix will be the agent for building the LATAM reseller chain, which will be trained and certified in Elastic’s technology.
Neo4j2: The partnership between Semantix, Google Cloud and NEO4J aims to serve all Latin America and will provide local support in Portuguese and monthly payment in local currency.
1 – Elastic is a prominent software company known for its search and analytics solutions, helping organizations efficiently manage and obtain insights from vast amounts of data.
2 – Neo4j is a leading graph database platform that specializes in managing and analyzing complex relationships in data.
2Q23 and 1H23 Financial Metrics
(In BRL million, except for percentages)
2Q 20232Q 2022
Net RevenueR$ 48R$ 464%R$ 88R$ 863%
Gross ProfitR$ 23R$ 1551%R$ 40R$ 2842%
Gross Margin47%33%15 pp45%32%13 pp
Adjusted EBITDA(R$ 26)(R$21)(20%)(R$ 58)(R$ 36)(61%)
Adjusted EBITDA Margin(54%)(47%)(7 pp)(66%)(42%)(24 pp)

Jun 30, 2023Dec 31, 2022Change
Cash and Cash EquivalentsR$ 151R$ 338(55%)
Net Cash (Debt)R$ 90R$ 259(65%)
Forward-Looking Statements
This report on form 6-K (“6-K”) contain forward-looking statements and forward-looking information within the meaning of applicable United States securities legislation that involve substantial risks and uncertainties (collectively herein referred to as “forward-looking statements”). All statements other than statements of historical facts contained in this 6-K including statements regarding our future financial position, results of operations, business strategy and plans and objectives of management for future operations, are forward-looking statements. For example, forward-looking statements include, without limitation, statements concerning the following: the growth of Semantix’s business and its ability to realize expected results, including with respect to its net revenue, gross profit, gross margin, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, cash and cash equivalents and net cash (debt); the viability of its growth strategy, including with respect to its ability to grow market share in Brazil and internationally, particularly through the expansion of its proprietary SaaS data solutions, grow revenue from existing customers, and consummate and achieve expected benefits through acquisitions; opportunities, trends and developments in the data industry, including with respect to future financial performance in the industry; the size of Semantix’s total addressable market; macroeconomic and geopolitical factors, including as a result of the policies and actions of the new administration in Brazil following the 2022 presidential election. In some cases, you can identify forward looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “could,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target,” “trend” or other similar expressions (or the negative versions of such words or expressions).
Such forward-looking statements are based on the current expectations of our management and are inherently subject to uncertainties and changes in circumstance and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements and could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking statements contained in this 6-K, those results or developments may not be indicative of results or developments in subsequent periods. Although Semantix has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this 6-K are based on current estimates, assumptions, expectations and projections, including with respect to the management’s expectations regarding Semantix’s growth based on historical financial results and anticipated commercial developments, the anticipated success of current strategies for market penetration in Brazil and globally in light of competition from existing market participants and the emergence of competitors in the future, management’s expectations with respect to the development of technology and other proprietary intellectual property by Semantix based on existing technological realities and strategies with respect to intellectual property development, management’s expectations regarding the likelihood Semantix will be able to enter into commercial arrangements with relevant third-parties and customers, Semantix’s ability to maintain adequate margins based on financial metrics available to management, the ability of Semantix to finance its ongoing capital needs, the continued involvement of Semantix’s management in Semantix’s operations and the ability of Semantix to attract and retain talent in the future, which are based on the information available as of the date of this 6-K, and, while considered reasonable by Semantix, are inherently uncertain. Historical statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. In this regard, certain financial information contained herein has been extracted from, or based upon, information available in the public domain and/or provided by Semantix. In particular, historical results should not be taken as a representation that such trends will be replicated in the future. No statement in this document is intended to be nor may be construed as a profit forecast.

Nothing in this 6-K should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this 6-K, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. This 6-K also contains certain financial forecast information of Semantix. Such financial forecast information constitutes forward-looking information and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such financial forecast information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive, and other risks and uncertainties. Actual results may differ materially from the results contemplated by the financial forecast information contained in this 6-K, and the inclusion of such information in this 6-K should not be regarded as a representation by any person that the results reflected in such forecasts will be achieved. You must make your own determinations as to the reasonableness of these projections, estimates, goals, trends and other statements and should also note that if one or more estimates change, or one or more assumptions are not met, or one or more unexpected events occur, the performance and results set forth in such projections, estimates, goals, trends and other statements may not be achieved. We can give no assurance as to future operations, performance, results or events.
Non-GAAP Financial Measures
This 6-K includes certain non-IFRS financial measures and industry metrics such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin and net cash (debt). These measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS. Semantix believes that these measuresprovide useful supplemental information to investors about Semantix, particularly as they exclude the impacts of certain events that we believe are isolated in nature incurred as part of our recent expansion and, therefore, not reflective of our underlying results. Semantix’s management does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. However, there are a number of limitations related to the use of these measures, including that they exclude significant expenses that are required by IFRS to be recorded in Semantix’s financial statements, including certain expenses with share based plan expenses, D&O insurance, gains from fair value of Semantix’s warrants and concentrated expenses of an extraordinary nature incurred in connection with our completed business combination with a SPAC occurred in 2022 and the earn-out compensation related to our acquisitions. In addition, other companies may calculate non-IFRS measures or industry metrics differently or may use other measures to calculate their financial performance, and therefore, Semantix’s non-IFRS measures and industry metrics may not be directly comparable to similarly titled measures of other companies
Other Business Metrics
Proprietary SaaS and Resale of Third-party Software: Proprietary SaaS consists of Semantix’s data platform software, while resale of third-party Software consists of the resale of licenses from third-party data platform software providers.
Customers with Trailing 12-Month Revenue Greater than US$1 Million: Large customer relationships lead to scale and operating leverage in our business model. Compared with smaller customers, large customers present a greater opportunity for us to sell additional capacity because they have larger budgets, and a wider range of potential use cases. As a measure of our ability to scale with our customers and attract large enterprises, we count the number of customers that contributed more than US$1 million in revenues in the trailing 12 months, considering the Brazilian real to US Dollar exchange rate as of June 30, 2023. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.
Net Cash (Debt): Net cash (debt) reflects Semantix’s cash and cash equivalents balance at a given date in time, net of the loans and borrowings balance as of the same date.

Semantix, Inc.
Unaudited Consolidated Statement of Profit or Loss
(in BRL thousands)

Three Months Ended,
Jun, 30
Six Months Ended,
Jun, 30
Revenues48,003 46,108 87,682 85,542 
Cost of sales(25,346)(31,067)(48,151)(57,793)
Gross profit22,657 15,041 39,531 27,749 
Operating expenses
Sales and marketing expenses(12,952)(15,578)(27,204)(24,830)
General and administrative expenses(40,111)(19,730)(76,303)(59,498)
Research and development(8,626)(13,287)(21,322)(20,565)
Operating loss(39,032)(33,554)(85,298)(77,144)
Financial income9,487 2,335 19,850 6,630 
Financial expenses(3,703)(12,715)(18,164)(19,208)
Net financial results5,784 (10,380)1,686 (12,578)
Loss before income tax(33,249)(43,934)(83,612)(89,722)
Income tax(2,795)1,670 (246)3,572 
Loss for the period(36,044)(42,264)(83,858)(86,150)

Semantix, Inc.
Unaudited Revenue Mix
(in BRL thousands)

Three Months Ended,
Jun, 30
Six Months Ended,
Jun, 30
Third-party software26,867 28,888 50,470 52,246 
Deductions on third-party software(3,151)(2,996)(5,344)(4,943)
Revenue from Third-party software23,716 25,892 45,126 47,303 
AI & data analytics services9,393 10,524 17,831 19,076 
Deductions on AI & data analytics services(631)(690)(1,194)(1,250)
Revenue from AI & data analytics services8,762 9,834 16,637 17,826 
Proprietary software as a service (SaaS)16,356 11,108 27,500 21,839 
Deductions on proprietary software as a service (SaaS)(1,143)(726)(1,893)(1,429)
Revenue from proprietary software as a service (SaaS)15,213 10,382 25,607 20,410 
Other revenue312  312 3 
Total revenue48,003 46,108 87,682 85,542 

Semantix, Inc.
Unaudited Consolidated Statement of Cash Flows

(in BRL thousands)

Six months ended
June 30
Loss for the period(83,858)(86,150)
Adjustments to reconcile loss for the period
Depreciation and amortization16,165 7,471 
Deferred income tax333 (3,683)
Onerous contract— (477)
Fair value adjustment of derivatives financial instruments5,164 1,586 
Stock option plan1,732 2,292 
Trade and other receivables expected loss7,461 484 
Accounts receivable write-off and Write-off of creditor invoice(227)(4,590)
Provision for contingencies443 774 
Interest accrued4,208 14,979 
Interest paid(1,954)(11,815)
Change in operating assets and liabilities(92,777)(76,481)
Net cash outflow from operating activities(94,731)(88,296)
Purchase and development of intangible assets(19,389)(14,652)
Acquisition of subsidiaries net of cash acquired(24,386)— 
Acquisitions of property and equipment(76)(319)
Net cash outflow from investment activities(43,851)(14,971)
Loans obtained— 122,016 
Proceeds from exercise of stock options511 276 
Acquisition of non-controlling interest5,018 (148)
Payment of loans(20,027)(21,210)
Purchase of treasury shares(34,633)— 
Lease payments(794)(535)
Net cash inflow (outflow) from financing activities(49,925)100,399 
Increase (decrease) in cash and cash equivalents(188,507)(2,868)
Cash and cash equivalents at the beginning of the year338,020 52,149 
Cash and cash equivalents at the end of the year151,223 48,881 
Effect of exchange rate changes1,710 (400)
Increase (decrease) in cash and cash equivalents(188,507)(2,868)
Supplemental non-cash flow information
Remeasurement of lease agreement199 — 
Unpaid amount related to business combination9,558 — 
Other receivables related to the sale of non-controlling interest5,018 — 

Semantix, Inc.
Unaudited Consolidated Statement of Financial Position
(in BRL thousands)

June 30, 2023December 31, 2022
Cash and cash equivalents151,223 338,020 
Trade receivables and other, net140,801 139,546 
Tax receivables17,037 11,317 
Prepaid expenses and other assets23,338 35,060 
PP&E, Intangible and right of use asset165,770 156,110 
Deferred tax asset21,818 22,488 
Total current assets326,459 519,169 
Total non-current assets193,528 183,372 
Total assets519,987 702,541 
Loans and borrowings60,789 78,671 
Trade and other payables68,756 107,695 
Lease liabilities and other liabilities51,538 64,676 
Taxes payable12,700 14,733 
Derivatives financial instruments12,811 6,412 
Deferred income tax8,592 8,929 
Total current liabilities115,686 181,390 
Total non-current liabilities99,500 99,726 
Total liabilities215,186 281,116 
Share capital425 425 
Additional paid-in capital872,771 872,771 
Capital reserves22,543 20,300 
Other comprehensive income(7,216)(6,840)
Treasury shares(35,141)(508)
Accumulated loss(552,224)(468,869)
Non-controlling interests3,643 4,146 
Total equity304,801 421,425 
Total equity + liabilities519,987 702,541 

Semantix Inc.
GAAP to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
(in BRL thousand)

Three Months Ended,
June 30,
Six Months Ended,
June 30,
Loss for the period(36,044)(42,263)(83,858)(86,150)
(+/-) Net interest income (expenses)(4,647)7,735 (10,476)11,736 
(+/-) Income tax2,794 (1,675)246 (3,577)
(+) Depreciation and amortization8,205 3,760 16,164 7,478 
(+) Share based plan expenses (1)1,086 1,342 2,173 2,907 
(+) Transaction expenses (2)— 9,645 — 31,408 
(+) D&O Expenses (3)4,391 — 9,002 — 
(+/-) Fair Value of Derivative Financial Instruments (4)(3,617)— 5,079 — 
(+) Earn-Outs (5)2,052 — 3,552 — 
Adjusted EBITDA(25,780)(21,458)(58,119)(36,198)
Net Revenue48,003 45,918 87,682 85,353 
Adjusted EBITDA Margin(54)%(47)%(66)%(42)%
(1)Consists of expenses related to share based compensation grants, including payroll expenses in the amounts of R$0.2 million and R$0.4 million in the three and six-month periods ended June 30, 2023, respectively, and in the amounts of R$0.3 million and R$0.6 million in the three and six-month periods ended June 30, 2022, respectively.
(2)Consists of concentrated expenses of an extraordinary nature related to third-party advisory, support services, travelling and events incurred in connection with our business combination with a SPAC that are not expected to be ongoing.
(3)Consists of expenses related to D&O Insurance (directors’ and officers’ liability insurance).
(4)Consists of gains from fair value of Semantix Warrants.
(5)Consists of expenses related to earn-out payment to the former shareholders of Zetta and Elemeno.

Investor Contact
Adriano Alcalde
Chief Financial Officer & IR
Press Contact
Source: Semantix, Inc