CINT - CI&T Reports Strong Fourth Quarter and Full-year 2022 Results

March, 08 2023 06:29 AM CI&T Inc Class A

CI&T (NYSE: CINT, “Company”), a global digital specialist, today announces its results for the fourth quarter of 2022 (4Q22), and the full-year ended on December 31, 2022 (2022) in accordance with International Financial Reporting Standards (IFRS). For comparison purposes, we refer to the results for the fourth quarter of 2021 (4Q21) and the full-year ended on December 31, 2021 (2021).

Fourth Quarter of 2022 Operating and Financial Highlights

Net Revenue was R$611.8 million, an increase of 33.9% compared to 4Q21 or a 41.5% growth at constant currency.
The number of clients with annual revenue above R$1 million in the last twelve months grew from 94 in 4Q21 to 178 in 4Q22.
Net Profit was R$30.1 million compared to R$43.8 million in 4Q21.
Adjusted EBITDA was R$127.4 million, a 25.1% growth year-over-year, equivalent to an Adjusted EBITDA margin of 20.8%.
Adjusted Net Profit was R$54.5 million, 4.3% higher than 4Q21 with an Adjusted Net Profit margin of 8.9%

Full-year ended December 31, 2022 Operating and Financial Highlights

Net Revenue was R$2,187.7 million, an increase of 51.5% compared to 2021, or a 57.9% growth at constant currency.
Net Profit was R$125.9 million, compared to R$125.9 million in 2021.
Adjusted EBITDA was R$417.5 million, 28.8% higher than 2021, with an Adjusted EBITDA margin of 19.1%.
Adjusted Net Profit was R$213.6 million, an increase of 30.2% compared to 2021.
CI&T ended 2022 with 6,904 employees, a 24.1% growth compared to the end of 2021.

Cesar Gon, founder and CEO of CI&T, commented, "Our core competency is method-driven innovation for large and fast-growing corporations, and we are obsessed with efficiency for our clients and ourselves. We ended 2022 marking our 28th consecutive year of profitable growth, highlighting a net revenue expansion of 51% year-over-year and the addition of 84 new clients.

"We remain bullish regarding the enduring opportunities created by the intersection of technology advancements and consumer behavior. We have always been at the cutting edge of digital innovation. It's an infinite game, and we are designed to continue leading the way in the years to come."

Comments on the 4Q22 financial performance

The net revenue was R$611.8 million in 4Q22, an increase of 33.9% compared to 4Q21, or a 41.5% net revenue growth at constant currency. In 4Q22, we added 31 new clients to our portfolio with annual revenue above R$1.0 million in the last twelve months, increasing our client base from 147 in 3Q22 to 178 in 4Q22. The net revenue grew in all regions and industry verticals that we operate compared to the same period last year.

The cost of services provided in 4Q22 reached R$391.1 million, an increase of 32.7% in relation to 4Q21, and the gross profit was R$220.7 million. The Adjusted Gross Profit in 4Q22 was R$234.4 million, 36.0% higher than in 4Q21. The Adjusted Gross Profit margin was 38.3%, an increase of 0.6 percentage points compared to 4Q21, due to better pricing, despite the lower gross margins from the acquired companies.

In 4Q22, selling, general and administrative (SG&A), and other operating expenses were R$134.2 million, 61.3% higher when compared to 4Q21, mainly due to (i) an increase in personnel expenses, as a result of new hirings in the back-office areas; and (ii) acquisition-related expenses, such as retention packages, fair value adjustments on accounts payable for business combination, and amortization of intangible assets from the acquired companies.

In 4Q22, the Adjusted EBITDA was R$127.4 million, an increase of 25.1% compared to 4Q21. Adjusted EBITDA margin was 20.8% in the quarter, a reduction of 1.5 percentage point compared to 4Q21, mainly due to higher SG&A expenses. Sequentially, the Adjusted EBITDA margin improved from 19.2% in 3Q22 to 20.8% in 4Q22, due to a better utilization rate and lower SG&A expenses as a percentage of revenue.

In 4Q22, net financial expenses were R$31.9 million, an increase of R$23.8 million, compared to 4Q21, mainly as a result of a net foreign exchange loss of R$15.8 million in 4Q22, compared to a net foreign exchange gain of R$9.2 million in 4Q21.

In 4Q22, income tax expense was R$24.5 million, a reduction of 9% in relation to 4Q21. Depreciation and amortization expenses totaled R$27.4 million in 4Q22, an increase of 50.2% or R$9.1 million compared to 4Q21, due to the amortization from intangible assets from acquired companies in the amount of R$13.8 million. In 4Q22, management reduced its real state property leases based on the successful work-from-anywhere approach, which will contribute to lower leases expenses going forward.

In 4Q22, the net profit was R$30.1 million, compared to a net profit of R$43.8 million in 4Q21. Adjusted Net Profit was R$54.5 million, 4.3% higher than 4Q21. The Adjusted Net Profit margin reduced from 11.4% in 4Q21 to 8.9% in 4Q22, mainly due to an increase in SG&A expenses and the foreign exchange variation in the comparable period, as detailed above.

Comments on the 2022 financial performance

The net revenue in 2022 was R$2,187.7 million, an increase of 51.5% compared to 2021. The contribution from the companies acquired in 2022 was 15 percentage points to the revenue growth. The negative foreign currency translation impact was 6.4% in the period and the net revenue growth at constant currency was 57.9%.

During 2022, CI&T added 84 new clients with annual revenue above R$1.0 million to our portfolio, demonstrating CI&T's capability to onboard new clients and the resilience in the demand for digital services.

The cost of services provided in 2022 reached R$1,425.2 million, an increase of 52.3% in relation to 2021, and the gross profit was R$762.5 million. The Adjusted Gross Profit in 2022 was R$807.7 million, 48.9% higher than in 2021. The Adjusted Gross Profit margin was 36.9%, a slight decrease compared to 37.6% in 2021, mainly due to lower margins from the acquired companies.

In 2022, selling, general and administrative (SG&A), and other operating expenses were R$488.6 million, an increase of 85.0% when compared to 2021, mainly due to (i) the strengthening of our back-office teams as a publicly-listed Company, and (ii) acquisition-related expenses, such as retention packages, consulting expenses, and amortization of intangible assets from acquired companies.

In 2022, the Adjusted EBITDA was R$417.5 million, an increase of 28.8% compared to 2021. Adjusted EBITDA margin was 19.1% in the year, a reduction of 3.3 percentage points compared to 2021, mainly explained by the lower gross margin and the increase in SG&A expenses, as detailed above.

In 2022, net financial expenses were R$ 73.6 million, 115.1% higher compared to 2021, as a result of an increase in the debt position and higher interest rates.

In 2022, depreciation and amortization expenses totaled R$94.6 million, an increase of 95.6% or R$46.2 million compared to 2021, of which R$43.1 million are related to the amortization of intangible assets from acquired companies.

In 2022, income tax expense was R$74.4 million, a reduction of 11.9% in relation to 2021. The income tax paid (cash effect) was R$48.3 million in the period, equivalent to a cash tax rate of 24%.

In 2022, the net profit was R$125.9 million, in line with the net profit recorded in 2021. Adjusted Net Profit was R$213.6 million, 30.2% higher than 2021. The Adjusted Net Profit margin was 9.8% in 2022, a reduction of 1.6 percentage points compared to 2021, mainly due to higher SG&A and financial expenses, as detailed above.

In 2022, cash generated from operating activities net of taxes was R$112.4 million, which is reduced by a cash outflow of R$59.7 million for the operating activities of the acquiree Somo and other acquisition-related expenses. If we exclude these impacts, the cash generated from operating activities net of taxes would have been R$172.1 million in 2022.

The cash and cash equivalents position, including financial investments, was R$282.0 million at the end of 2022. Loans and borrowings totaled R$974.2 million in 2022, compared to R$788.7 million in 2021. The incremental debt position was mainly to finance the NTERSOL acquisition.

Business Outlook

We expect our net revenue in the first quarter of 2023 to be at least R$590 million compared to a net revenue of R$492 million in the first quarter of 2022, a 20% growth on a reported basis.

For the full year of 2023, we expect net revenue growth in the range of 13% to 17% year-over-year, assuming a constant currency outlook.

In addition, we estimate our Adjusted EBITDA margin to be at least 19% for the full year of 2023.

These expectations are forward-looking statements and actual results may differ materially. See "Cautionary Statement on Forward-Looking Statements" below.

Conference Call Information

Cesar Gon, Bruno Guicardi, Stanley Rodrigues, and Eduardo Galvão will host a video conference call to discuss the 4Q22 and 2022 financial and operating results on March 08, at 8:00 a.m. Eastern Time / 10:00 a.m. BRT. The earnings call can be accessed at the Company’s Investor Relations website at https://investors.ciandt.com or at the following link: https://www.youtube.com/watch?v=80LiTtgxwd4

About CI&T

CI&T (NYSE:CINT) is a global digital specialist, a partner in digital transformation for 100+ large enterprises and fast growth clients. As digital natives, CI&T brings a 28-year track record of accelerating business impact through complete and scalable digital solutions. With a global presence in nine countries with a nearshore delivery model, CI&T provides strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience and driving operational efficiency. Recognized by Forrester as a Leader in Modern Application Development Services, CI&T is the Employer of Choice for more than 6,900 professionals.

Basis of accounting and functional currency

CI&T maintains its books and records in Brazilian reais , the presentation currency for its audited consolidated financial statements, and the functional currency of our operations in Brazil. CI&T prepares its audited consolidated financial statements in accordance with IFRS, as issued by the IASB.

Non-IFRS Financial Measures

We regularly monitor certain financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. These non-IFRS financial measures include Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Profit, Adjusted Net Profit Margin, Net Revenue at Constant Currency, and Net Revenue Growth at Constant Currency, and should be considered in addition to results prepared in accordance with IFRS, but not as substitutes for IFRS results. In addition, our calculation of these non-IFRS financial measures may differ from those used by other companies, and therefore comparability may be limited. These non-IFRS financial measures are provided as additional information to enhance investors’ overall understanding of our operations’ historical and current financial performance.

CI&T is not providing a quantitative reconciliation of forward-looking Non-IFRS Net Revenue Growth at Constant Currency and Adjusted EBITDA to the most directly comparable IFRS measure because it is unable to reasonably predict the ultimate outcome of certain significant items without unreasonable efforts. These items include, but are not limited to, stock-based compensation expenses, acquisition-related expenses, the tax effect of non-IFRS adjustments, foreign currency exchange (gains)/losses, and other items. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

We calculate Net Revenue at Constant Currency and Net Revenue Growth at Constant Currency by translating Net revenue from entities reporting in foreign currencies into Brazilian reais using the comparable foreign currency exchange average rates from the prior period to show changes in our revenue without giving effect to period-to-period currency fluctuations. Reported Net Revenue in 2022 considers the FX rate at the end of each month, while Net Revenue at Constant Currency considers the average FX rate for the prior period.

In calculating Adjusted Gross Profit, we exclude cost components unrelated to the direct management of our services. For the periods herein, the adjustments applied were: (i) depreciation and amortization related to costs of services provided; and (ii) stock-based compensation expenses.

In calculating Adjusted EBITDA, we exclude components unrelated to the direct management of our services. For the periods herein, the adjustments were: (i) stock-based compensation expenses; (ii) consulting expenses related to the initial public offering and corporate reorganization; (iii) government grants related to tax reimbursement in the Chinese subsidiary; (iv) non-cash expenses related to the impairment associated with the discontinuation of certain investments made by Dextra on intangible assets related to digital platforms; and (v) acquisition-related expenses, including fair value adjustment on accounts payable for business combination, consulting expenses, and retention packages.

In calculating Adjusted Net Profit, we exclude components unrelated to the direct management of our services. For the periods herein, the adjustments applied were: (i) consulting expenses related to the initial public offering and corporate reorganization, (ii) non-cash expenses related to the impairment associated with the discontinuation of certain investments made by Dextra on intangible assets related to digital platforms; and (iii) acquisition-related expenses, including amortization of intangible assets from acquired companies, fair value adjustment on accounts payable for business combination, consulting expenses, and retention packages.

Cautionary Statement on Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: the statements under "Business outlook," including expectations relating to revenues and other financial or business metrics; statements regarding relationships with clients; and any other statements of expectation or belief. The words “believe,” “will,” “may,” “may have,” “would,” “estimate,” “continues,” “anticipates,” “intends,” “plans,” “expects,” “budget,” "scheduled,” “forecasts” and similar words are intended to identify estimates and forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the current and future impact of the COVID-19 pandemic, the ongoing war in Ukraine and economic sanctions imposed by Western economies over Russia on our business and industry; the effects of competition on our business; uncertainty regarding the demand for and market utilization of our services; the ability to maintain or acquire new client relationships; general business and economic conditions; our ability to successfully integrate the recent-acquired companies; and our ability to successfully execute our growth strategy and strategic plans. Additional information concerning these and other risks and uncertainties are contained in the "Risk Factors" section of CI&T's annual report on Form 20-F. Additional information will be made available in our annual reports on Form 20-F, and other filings and reports that CI&T may file from time to time with the SEC. Except as required by law, CI&T assumes no obligation and does not intend to update these forward-looking statements or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Consolidated statement of profit or loss

(In thousands of Brazilian Reais)


Quarter ended December 31,

Full year ended December 31,

2022

2021

2022

2021






Net Revenue
611,805


456,794


2,187,710


1,444,380

Costs of services provided
(391,108
)

(294,746
)

(1,425,219
)

(935,732
)
Gross Profit
220,697


162,048


762,491


508,648









Selling expenses
(45,443
)

(27,752
)

(163,871
)

(89,654
)
General and administrative expenses
(87,800
)

(58,625
)

(315,915
)

(151,681
)
Research and technological innovation expenses
-


-


-


(4
)
Impairment loss on trade receivables and contract assets
56


1,533


(329
)

(497
)
Other income (expenses) net
(966
)

1,656


(8,458
)

(22,206
)








Operating profit before financial income and tax
86,544


78,860


273,918


244,606









Finance income
17,358


26,395


172,996


69,816

Finance cost
(49,327
)

(34,525
)

(246,642
)

(104,048
)
Net finance costs
(31,969
)

(8,130
)

(73,646
)

(34,232
)








Profit before Income tax
54,575


70,730


200,272


210,374

Income tax expense







Current
(25,077
)

(32,008
)

(69,873
)

(95,375
)
Deferred
588


5,106


(4,483
)

10,958

Net profit for the period
30,086


43,828


125,916


125,957









Earnings per share







Earnings per share – basic (in R$)




0.95


1.03

Earnings per share – diluted (in R$)




0.93


1.01









Weighted average number of basic shares held by shareholders




133,186,441


121,777,128

Weighted average number of diluted shares held by shareholder




134,774,674


125,155,798

Consolidated statements of financial position

(In thousands of Brazilian Reais)

Assets
December 31, 2022

December 31, 2021

Liabilities and equity
December 31, 2022

December 31, 2021









Cash and cash equivalents
185,727

135,727

Suppliers and other payables
33,376


33,566
Financial Investments
96,299

798,786

Loans and borrowings
231,296


164,403
Trade receivables
501,671

340,519

Lease liabilities
21,539


21,214
Contract assets
217,250

134,388

Salaries and welfare charges
260,156


234,173
Recoverable taxes
7,619

7,785

Accounts payable for business combination
71,650


48,923
Tax assets
2,959

2,810

Derivatives - hedge accounting
35,169


-
Derivatives - hedge accounting
19,637

-

Derivatives
4,109


535
Derivatives
11,194

896

Tax liabilities
3,890


13,345
Other assets
38,269

29,994

Other taxes payable
14,382


5,423
Total current assets
1,080,625

1,450,905

Contract liability
32,136


13,722





Other liabilities
47,501


13,669
Recoverable taxes
3,624

3,046

Total current liabilities
755,204


548,973
Deferred tax assets
35,138

31,989





Judicial deposits
9,819

3,079

Loans and borrowings
742,935


624,306
Restricted cash - Escrow account and indemnity asset
31,552

-

Lease liabilities
41,269


60,674
Other assets
3,654

2,974

Provisions
12,347


633
Property, plant and equipment
55,266

57,721

Accounts payable for business combination
133,299


36,803
Intangible assets and goodwill
1,750,898

738,803

Other liabilities
3,530


1,660
Right-of-use assets
56,187

73,827

Total non-current liabilities
933,380


724,076
Total non-current assets
1,946,138

911,439










Equity








Share capital
37


36





Share premium
946,173


915,947





Capital reserves
203,218


10,105





Profit reserves
251,873


125,957





Other comprehensive income (loss)
(63,122
)

37,250





Total equity
1,338,179


1,089,295









Total assets
3,026,763

2,362,344

Total equity and liabilities
3,026,763


2,362,344

Consolidated statement of cash flow

(In thousands of Brazilian Reais)


December 31, 2022

December 31, 2021




Net profit for the period
125,916


125,957

*Adjustments for:*



Depreciation and amortization
94,558


48,354

Loss on the sale of property, plant and equipment and intangible assets
3,781


1,237

Interest, monetary variation and exchange rate changes
55,323


45,627

Interest and exchange variation on accounts payable for business combinations
(2,994
)

3,091

Exchange variation on escrow account related to Somo acquisition
2,968


-

Interest on lease
3,823


6,369

Unrealized loss (gain) on financial instruments
(7,114
)

3,084

Income tax expenses
74,356


84,417

Impairment losses on trade receivables
423


280

(Reversal of) impairment losses on contract assets
(94
)

217

Write-off of intangible assets
-


21,894

Provision for labor risks
386


472

Share-based plan
5,486


2,531

Income on financial investments
(1,964
)

-

Fair value adjustment - accounts payable for business combination
11,497


-

Others
(1,855
)

98

Variation in operating assets and liabilities



Trade receivables
(116,574
)

(102,300
)
Contract assets
(69,101
)

(52,876
)
Other taxes recoverable
(547
)

(13,806
)
Tax assets
1,267


(91
)
Judicial deposits
(6,741
)

4

Suppliers
(29,769
)

12,215

Salaries and welfare charges
10,729


63,083

Tax liabilities
(9,681
)

(17,364
)
Other taxes payable
6,376


1,698

Contract liabilities
9,636


1,922

Payment of share-based indemnity
-


(628
)
Other receivables and payables, net
565


(21,054
)
Cash generated from operating activities
160,656


214,431

Income tax paid
(48,299
)

(64,150
)
Interest paid on loans and borrowings
(70,096
)

(12,149
)
Interest paid on lease
(6,169
)

(5,753
)
Net cash from operating activities
36,092


132,379

Cash flows from investment activities:



Acquisition of property, plant and equipment and intangible assets
(22,967
)

(29,907
)
Acquisition of subsidiary net of cash acquired – Dextra
-


(692,722
)
Acquisition of subsidiary net of cash acquired - Somo
(270,825
)

-

Acquisition of subsidiary net of cash acquired - Box 1824
(19,040
)

-

Acquisition of subsidiary net of cash acquired - Transpire
(55,724
)

-

Acquisition of subsidiary net of cash acquired - Ntersol
(400,137
)

-

Cash outflow on hedge accounting settlement
25,263



Hedge accounting - ineffective portion inflow
5,337


-

Redemption (Contribution in) of financial investments
655,533


(784,915
)
Net cash used in investment activities
(82,560
)

(1,507,544
)
Cash flow from financing activities:



Share-based plan contributions
-


1,282

Issuance of common shares at initial public offering
-


915,947

Transaction cost of offering
-


(55,874
)
Dividends paid
-


(126,045
)
Exercised stock options
12,668


-

Interest on equity, paid
-


(6,288
)
Payment of lease liabilities
(26,993
)

(17,656
)
Proceeds from loans and borrowings
527,507


740,596

Settlement of derivatives
390


-

Payment of loans and borrowings
(350,571
)

(75,196
)
Payment of installment related to acquisition of business - Dextra
(62,338
)

-

Net cash from financing activities
100,663


1,376,766

Net increase in cash and cash equivalents
54,195


1,601

Cash and cash equivalents as of January 1st
135,727


162,827

Exchange variation effect on cash and cash equivalents
(4,195
)

(20,949
)
Cash reduction due to spin-off effect
-


(7,752
)
Cash and cash equivalents as of December
185,727


135,727

Reconciliation of Non-IFRS financial measures to comparable IFRS financial measures

Reconciliation of revenue growth as reported on a IFRS basis to revenue growth on a constant currency basis:

Net Revenue (in BRL thousand)
4Q22
4Q21
Var. 4Q22 x 4Q21
2022
2021
Var. 2022 x 2021
Net Revenue
611,805
456,794
33.9%
2,187,710
1,444,380
51.5%
Net Revenue at Constant Currency
644,956
455,712
41.5%
2,277,958
1,442,539
57.9%

Revenue Breakdown

Net Revenue by industry (in BRL thousand)
4Q22
4Q21
Var. 4Q22 x 4Q21
2022
2021
Var. 2022 x 2021
Financial Services
172,916
142,104
21.7%
649,166
487,177
33.3%
Food and Beverages
112,132
90,283
24.2%
429,023
340,709
25.9%
Technology, Media and Telecom
72,463
67,268
7.7%
328,500
169,311
94.0%
Pharmaceuticals and Cosmetics
113,348
61,305
84.9%
281,300
206,375
36.3%
Retail and Manufacturing
35,759
34,555
3.5%
135,566
93,871
44.4%
Education and Services
22,944
22,176
3.5%
78,452
64,336
21.9%
Logistic and Transportation
18,387
16,380
12.3%
73,248
37,247
96.7%
Others
63,856
22,723
181.0%
212,454
45,353
368.4%
Total
611,805
456,794
33.9%
2,187,710
1,444,380
51.5%

Net Revenue by geography (in BRL thousand)
4Q22
4Q21
Var. 4Q22 x 4Q21
2022
2021
Var. 2022 x 2021
North America
267,233
200,014
33.6%
923,174
664,858
38.9%
Europe
63,182
10,807
484.6%
205,992
28,148
631.8%
LATAM (Latin America)
251,466
229,681
9.5%
975,948
701,206
39.2%
APJ (Asia, Pacific and Japan)
29,923
16,293
83.7%
82,596
50,168
64.6%

Reconciliation of various income statement amounts from IFRS to non-IFRS for the three months and full year ended December 31, 2022 and 2021:

Gross Profit (in BRL thousand)
4Q22
4Q21
Var. 4Q22 x 4Q21
2022
2021
Var. 2022 x 2021
Net Revenue
611,805
456,794
33.9%
2,187,710
1,444,380
51.5%
Cost of Services
(391,108)
(294,746)
32.7%
(1,425,219)
(935,732)
52.3%
Gross Profit
220,697
162,048
36.2%
762,491
508,648
49.9%
Adjustments






Depreciation and amortization (cost of services provided)
10,667
8,764
21.7%
40,968
31,884
28.5%
Stock-based compensation
3,045
1,582
92.5%
4,235
1,930
119.4%
Adjusted Gross Profit
234,409
172,394
36.0%
807,694
542,462
48.9%
Adjusted Gross Profit Margin
38.3%
37.7%
0.6p.p
36.9%
37.6%
-0.6p.p

Adjusted EBITDA (in BRL thousand)
4Q22
4Q21
Var. 4Q22 x 4Q21
2022
2021
Var. 2022 x 2021
Net profit for the period
30,086
43,828
-31.4%
125,916
125,957
0.0%
Adjustments






Net financial cost
31,969
8,130
293.2%
73,646
34,232
115.1%
Income tax expense
24,489
26,902
-9.0%
74,356
84,417
-11.9%
Depreciation and amortization
27,404
18,251
50.2%
94,558
48,354
95.6%
Stock-based compensation
3,592
1,838
95.4%
5,486
2,531
116.8%
Consulting expenses ⁽¹⁾
-
(859)
-100.0%
-
2,220
-100.0%
Government grants
(764)
(1,063)
-28.2%
(1,141)
(2,481)
-54.0%
Impairment ⁽²⁾
-
77
-100.0%
-
21,895
-100.0%
Acquisition-related expenses ⁽³⁾
10,601
4,680
126.5%
44,652
6,957
541.8%
Adjusted EBITDA
127,377
101,783
25.1%
417,472
324,081
28.8%
Adjusted EBITDA Margin
20.8%
22.3%
-1.5p.p
19.1%
22.4%
-3.4p.p

⁽¹⁾

IPO-related expenses, including consulting and corporate reorganization expenses.

⁽²⁾

Non-cash expenses related to the impairment of intangible assets of Dextra, acquired in August 2021 in the amount of (R$21,895) in 2021. The following adjustments were disregarded for the full year of 2022: non-cash expenses related to the write-off due to the inventory of property, plant, and equipment in the amount of (R$1,548) in 1Q22 and tax write-off of (R$2,159) in 3Q22.

⁽³⁾

Include fair value adjustment on accounts payable for business combination, consulting expenses and retention packages.

Net Profit (in BRL thousand)
4Q22
4Q21
Var. 4Q22 x 4Q21
2022
2021
Var. 2022 x 2021
Net profit for the period
30,086
43,828
-31.4%
125,916
125,957
0.0%
Adjustments






Consulting expenses ⁽¹⁾
-
(859)
-100.0%
-
2,220
-100.0%
Impairment ⁽²⁾
-
77
-100.0%
-
21,895
-100.0%
Acquisition-related expenses ⁽³⁾
24,400
9,210
164.9%
87,721
14,062
n.m
Adjusted Net Profit ⁽⁴⁾
54,486
52,256
4.3%
213,637
164,134
30.2%
Adjusted Net Profit Margin ⁽⁴⁾
8.9%
11.4%
-2.5p.p
9.8%
11.4%
-1.6p.p

⁽¹⁾

IPO-related expenses, including consulting and corporate reorganization expenses.

⁽²⁾

⁽³⁾

Include amortization of intangible assets from acquired companies, fair value adjustment on accounts payable for business combination, consulting expenses and retention packages.

⁽⁴⁾

Adjustments' amounts are gross of tax. Tax effects on non-IFRS adjustments totaled (R$1,182) in 4Q22, (R$365) in 4Q21, (R$3,172) in 2022, and (R$1,935) in 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230307005998/en/

Investor Relations Contact:
Eduardo Galvão
investors@ciandt.com

Media Relations Contact:
Zella Panossian
ciandt@illumepr.com

Company Name:	CI&T Inc Class A
Stock Symbol:	CINT
Market:	NYSE
Website:	ciandt.com

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