TOTVS announces 1Q21 results
- The Company maintained the balance between profitability and growth, with a 20% increase in Total Net Revenue, and Adjusted EBITDA margin of 26.3%, adding 46% (Rule of 40), an increase of 18 pp YoY
- Highlightsfor the double-digit growth in Technology Revenue and for the Credit Production (Supplier), which surpassed the historical record of the 4Q20 and exceeded the level of R$2 billion in the actual quarter
- Accelerated Digital Journey with 40% growth YoY of SaaS signings, with highlight for Cloud servicesthat grew 72% in the period
Message of the Management
We started 2021 at the same pace we closed 2020: accelerating! The construction of an Ecosystem of technologiesfor SMBs continued to consolidate,supported by a digitalization journey aimed to exponentialize TOTVS operations.
In Management business dimension, focus on SaaS, continuous evolvement on product quality (with NPS increase), and Cloud enabled usto further accelerate the growth of recurring revenue, which reached 15%. We understand that the Brazilian market of managementsoftware (ERP, HR, and Verticals) isfar from mature and still has a lot of room for growth, as presented in our Investor Day.
In Techfin business dimension, Supplier continued its V-recovery, reaching more than R$2 billion in credit production, of which R$800 million in March.
And in Business Performance dimension, we took a fundamentalstep with RD, the main asset of this market in Brazil. Although not yet consolidated in our results, its performance in 1Q21 was much higher than the business plan used in the acquisition.
Finally, we see TOTVS prepared for all challenges. A team united by the same ambition while being aware that we have a unique opportunity to become the key partner of our customers.
● Focus on SaaS, continuous evolvement product quality, and cloudification enabled us to accelerate the Recurring Revenue growth
● Brazilian market of management software is far from mature and still has a lot of room for growth
● Innovation in our portfolio, such as HR, electronic signature, and the new T-Cloud platform work to strengthen even more our solid market position
● We reached a new record-breaking production level of +R$2 billion, of which R$800 million in March
● We made progress in business integration, with 6 affiliates with signed contracts, 3 of which already in production
● We keep launching new products: “TOTVS Pagamento Instantâneo”, which offers customers instant payment via PIX integrated with TOTVS management solutions
● With RD Station, which is seen in the Brazilian market as a synonym for digital marketing, we took a fundamental step to establish the dimension of Biz Performance
For further information, visit our Results Center.