TOTVS closes first quarter with 5% growth in recurrent income

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TOTVS S.A. (B3: TOTS3), leader in the development of business solutions in Brazil and Latin America, announces its results regarding the first quarter of 2018 (1T18). In the period, the company presented a 5% growth in recurrent income, in the comparison year against year

This result in the first quarter was mainly driven by subscription revenues, 38% higher in relation to the same period of 2017. The growth of subscription revenues added to the 14% increase in licensing revenues were the main responsible for the organic evolution of 6.5% of total software revenues during the period. The subscription income totaled R $94.6 million in the quarter and, when annualized, already exceeds r $400 million.

Another indicator registered by the company in the 1T18 was the 29% increase in licensing revenues from the corporate model, in which the client has unrestricted access to the TOTVS systems and pays an increase in licensing, at the beginning of Each year, on the basis of their actual growth year of the previous year. The segments that contributed the most to the growth of this model were manufacturing, health and logistics.

“The growth of subscription and licensing in all comparisons portrays the progress of sales and the improvement of the market in that period,” notes Alexandre Apendino, director of attention and relationship of TOTVS.

The advance of the software result, the main activity of the company, coupled with the reduction of commercial and administrative expenses of the period, contributed to the growth of 7% of adjusted EBITDA, compared to the 1T17, totaling R $96.8 million, with margin of 17.2% . Results that also reflected in the increase of 9.3% of net profit, year against year, adding R $34.3 million in the period.

“The results of income growth and cost reduction reinforce our focus on sustainable growth, without compromising TOTVS’s growth, profitability and innovation capacity,” notes Gilsomar Maia, CFO of TOTVS.