Neogrid sets new records in its financial results for the 1st half of 2021

Neogrid (NGRD3), a Software as a Service (SaaS) company for supply chain management, sets new records in its 2021 second quarter earnings announcement. In the first six months of the year, accumulated revenue was R$117.1 million, 15.9% higher than the same period in 2020. The company had a 97.6% recurrence, maintaining, on average, active contracts of 95 months and generating an Annual Recurring Revenue (ARR) of R$230.1 million in June 2021, a 20.2% growth compared to the previous year.

Also in the first half of 2021, Neogrid’s net profit was R$15.2 million. EBITDA, earnings before interest, taxes, depreciation, and amortization for the period is R$26.6 million, a 21.6% gain compared to 2020, with a margin of 22.8%, growth of 1.1 pp using the same comparison.

“Advances in Neogrid’s profitability reflect the efficiency gains in our operations, based on the synergy and integration of solutions on the cloud platform. It is important to emphasize that there is strict compliance with the strategy proposed in the IPO, a major fact in the achievements of these excellent results presented to investors”, comments Eduardo Ragasol, CEO of Neogrid.

Acquisitions and investments on the rise

In March, Neogrid acquired Smarket, a startup focused on promotion management for retailers, which contributed with 2.2% inorganic growth in the ARR for the first quarter of 2021. In July, the company announced an investment in Horus, an intelligence company that delivers insights on consumer profile of end customers through data such as prices, products, brands, categories, volume, and presence at the point of sale.

Moreover, Neogrid registers growth in its collaborative business model, with international partners already consolidated in the electronics sector, in countries like the United States.

Investments in software research and development also stood out in Neogrid’s financial results. In 2021, the company invested R$ 21.2 million, 59.6% more compared to the first half of 2020.

“This increased investment in R&D is in line with the company’s planning, which will allocate part of the funds raised in the IPO to projects for innovation and improvement of the technological platform, which supports the offerings and operations”, explains Thiago Grechi, Chief Financial Officer of Neogrid.

In order to expand the portfolio of solutions, making it even more comprehensive, Neogrid launched the “VIU” in August. The tool includes intuitive dashboards with indicators for sales, stocks, unavailability, and in-store execution that offer analytical and operational information, providing the necessary visibility for the organization to identify opportunities and anticipate adverse situations in its supply chain.

“Neogrid operates in the supply chain links and VIU enables a collaborative process in which everyone wins, including the end consumer, who is essential for the success of any business”, says Grechi. “We have the largest data mesh in the supply chain. They allow our customers to identify bottlenecks that affect their sales or factors that leverage their growth”, he concludes.