Ci&T, Inc. ((CINT)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
In a recent earnings call, CI&T, Inc. expressed a predominantly positive sentiment, underscored by strong revenue growth and improved profitability metrics. The company highlighted significant achievements, particularly in Latin America, and noted the high adoption of CI&T FLOW, which is expected to drive future growth. Despite some challenges, such as a slight decline in adjusted profit and slower AI adoption in the retail sector, the overall outlook remains optimistic.
Strong Revenue Growth
CI&T reported a revenue of $117.2 million, marking an organic growth of 12.3% at constant currency compared to the same period last year. This achievement underscores the company’s ability to expand its market presence and capitalize on growth opportunities.
Improvement in EBITDA Margin
The company demonstrated operational excellence and effective cost management, as evidenced by an improved adjusted EBITDA margin of 18.4%. This sequential improvement from the first quarter highlights CI&T’s focus on enhancing profitability.
Significant Growth in Latin America
Latin America emerged as a key growth region for CI&T, with revenue increasing by 26% year-over-year. This momentum reflects the company’s successful strategies in expanding its footprint in this promising market.
High Adoption of CI&T FLOW
CI&T FLOW has seen high adoption, reaching 90% of the team and influencing 9% of the company’s revenue with AI-driven services. This adoption rate is a testament to the platform’s effectiveness and its potential to drive future revenue streams.
Strong Commercial Pipeline
The company reported a commercial pipeline that is 25% higher than the same period last year. This robust pipeline is a positive indicator of future growth and reflects increased confidence in CI&T’s market strategies.
Stable Voluntary Attrition Rate
CI&T maintained a healthy voluntary attrition rate of 10.6%, indicative of a strong company culture and effective employee retention strategies.
Slight Decline in Adjusted Profit
The company experienced a slight decline in adjusted profit, recording $12.2 million in the second quarter of 2025 compared to $12.5 million in the same period the previous year. This decline highlights areas for potential improvement in profitability.
Challenges in Retail Sector Adoption
CI&T faces challenges in the retail sector, where AI adoption is slower due to the need for modernization of legacy systems and the creation of robust data architectures. Addressing these challenges will be crucial for future success in this sector.
Forward-Looking Guidance
CI&T provided an optimistic business outlook, expecting third-quarter revenue to reach at least $124.4 million, indicating a year-over-year growth of at least 10.5% at constant currency. The company has raised the lower bound of its full-year revenue guidance to an organic growth range of 10.5% to 15%. Additionally, CI&T maintains its adjusted EBITDA margin guidance at 18% to 20%, driven by strong commercial momentum and continued expansion with its largest clients.
In summary, CI&T’s recent earnings call painted a largely positive picture, with strong revenue growth, improved profitability, and a promising commercial pipeline. While challenges remain, particularly in the retail sector, the company’s strategic initiatives and forward-looking guidance suggest a bright future ahead.