Ladies and gentlemen, and welcome to the Eletromidia Earnings Conference Call to discuss the first quarter 2024 results. Would like to share some instructions with you before we start. Should you need simultaneous interpretation, please click the globe icon at the bottom of the screen and choose Portuguese or English. Ou inglês. To hear the audio in English, please click on "Interpretation" and select English. Esta videoconferência está. The slide deck of this videoconference is available on our IR website, ri.eletromidia.com.br, and on the CVM website. The video will be made available later on. Please note that all participants are in a listen-only mode during the videoconference. After that, we will open the call so that you can start the Q&A session, and you'll have further instructions then. We would like to inform you that forward-looking statements are subject to risks and uncertainties, which may cause these expectations not to occur or to be materially different from our expectations. These forward-looking statements are based on the beliefs and assumptions of the company on the date they are made, and the company does not need to update them. With us today, we have Alexandre Guerrero, our CEO, and Ricardo Winandy, our CFO and IRO. We'd now like to turn the call over to Mr. Guerrero, who will start the call. Mr. Guerrero, you may start, sir. Bom dia a todos. Agradeço a participação. a todos. Agradeço a participação. Good morning, everyone, and thank you for joining our earnings videoconference to discuss the first quarter of 2024. We started 2024 with a clear vision and a clear strategy, and we remain committed to our relentless pursuit of innovation, agile execution, and data and indicator-based delivery. All of that is boosted by an accurate commercial strategy which captures value and the main seasonal opportunities in the first quarter of 2024. On our operating agenda, we maintained our discipline in execution, and we installed 906 new digital panels. Our commitment to continue to transform cities is still solid. Strategic investment in technology boosted our position in the market, allowing us to offer new solutions and more advanced solutions in metrics and indicators to our customers. The digitalization of our assets, coupled with a data-based approach, stands out in the out-of-home market, offering brands a good way to reduce their CAC, their customer acquisition cost. We have had a good start into the year. That's where the numbers have been showing. Our revenue was BRL 778 million, 42% higher year-on-year. Our EBITDA was BRL 77 million, 51% higher year-on-year. That can also be seen on our margin. Our margin was 32% in the first quarter. And of course, this is a seasonal sector. There are several factors that have boosted these results in the first quarter. And a very important piece of information we'd like to share with you is that our platform has now reached 53 million unique people. It reached 53 million unique viewers in the first quarter. That was possible with our platform because we were able to deduplicate our audience, not only selling based on target but also understanding our real reach. The main projects or the highlights for this year are the summer carnival, Lollapalooza, and Easter projects. Let me show you this video. Início de ano agitado por aqui. Nosso. Despite a start into the year, our center for technology and innovation developed the first immersive Lambe-Lambe, where we had technology, experience, and creativity brought together. There was a whole new level of engagement with the audience, much higher than we were already at, by the way. We had a total of 7,800 unique interactions that were either for one single person or up to a group of seven people, and we interacted with 15% of the total audience of the event during the three days of the festival. This is a real experience and technology bringing our business to a new level of interaction. Still talking about EletroLAB, we have a number of other creative initiatives that allowed us to have an 84% rise year-on-year. That shows not only that the brands are more and more mature in creating, focusing on out-of-home, but that also shows that we have a power to execute on scale. Now, talking about concessions, there's a very important piece of news for this year. Eletromidia will now start operating the Gentileza terminal, the kindness terminal, in Rio de Janeiro. That really underscores our presence in the transport vertical. With this concession, we touch on everyone's journey at the airport, of Santos Dumont, at Galeão, at the VLT, or the subway and the SuperVia, covering 100% of the transport market in Rio de Janeiro. That's the second largest advertising market in the country. And the guided bus shelter is also something I'd like to talk about. We had over 2,200 calls made. That really underscores our thesis that creativity, technology, and truth can help the city to address important social matters. When it comes to technology, our main expansion avenue, we continue with our innovation pipeline, Eletromidia Ads, that allows for an experience and a purchase in out-of-home that is very close to the digital experience. And that can be seen in figures, too. Speaking about the figures of this platform, I would like to say that in the first quarter, we had 4,035 plans and over 7,000 materials that were sent through or via the platform. That accounts for 62% of all of the materials from customers received by the company. We continue to make progress and to keep our finger on the pulse when it comes to these indicators because we have the same experience and the same speed as digital with that. And SMB is small and medium businesses. SMB is also very important to us. In three months in 2024, we already had 66% of the total revenue we had in 2023, and the TAM, the total addressable market, is BRL 25 billion. So we'll continue to invest not only in developing our platform but also our team. This is likely to be the most important or one of the most important growth avenues for the company. We have started some projects with Globo. We're still at the very beginning, and Mercado Livre was one of these first projects with a very good performance in sales. For the first time, we have brought Big Brother Brasil into the streets with the street furniture of Eletromidia. That allowed for people to have a unique experience. And mind you, we had over 25,000 coupons used with out-of-home. That really underscores our thesis that context and the journey is a very important element in engaging the audience. Another important avenue is our growth in programmatic advertising. We had a total of BRL 33 million in revenue in this first quarter. That was either through DSP and Globo or DSP for Google DV360. That shows an eightfold increase year-on-year. These are very robust figures, very important growth that really underscores our discipline and our journey. Now, I would like to give the floor to Ricardo for the financial details and highlights. Ricardo, please. Good luck. Thank you, Guerrero. Good morning, everyone. First and foremost, thank you very much for your interest, and thank you very much for joining this videoconference to discuss the most recent results. And let's talk about the figures, shall we? In this first quarter of the year, we had BRL 278 billion in revenue. That accounts for a 42% rise year-on-year. This improvement shows not only how relevant and important the company is, but it also shows how much we've grown in the Brazilian territory. We ended the quarter with BRL 76.5 million in EBITDA with a 32% margin. This is 51% higher year-on-year. There's a 4.5 percentage points improvement in our margin. The adjusted net profit is BRL 22.1 million in the quarter, which is sixfold higher year-on-year, a BRL 18.5 million increase with a net margin of 9%. Our EBITDA conversion to operating cash was 153%. Let's now look at the inventory we had for the quarter. We had 66,700 advertising panels, 48,400 of which are digital. That's 73% of our network. That accounts for a 2,900 asset increase in the last year, mainly digital. We have added 815 new digital panels in comparison to 2023, with now 1,877 digital street furniture pieces. That is a 70% rise year-on-year. Now, when we talk about the growth in the building vertical, we had 32,700 screens with 2,200 lifts having been installed in the last year. And that is a 7% increase year-on-year. 753% of these installations and lifts haven't been made in the last quarter alone. In this quarter, in transport, we installed the assets in the Santos Dumont Airport, the concession that was announced in the second half of last year. We also had the intermodal terminal Gentileza, kindness, that was just mentioned by Guerrero. And we have also made progress in the rail advertising front in Rio de Janeiro with the SuperVia lines. And we have 210 new digital panels in this vertical. With that, we have had a very good pace in expanding our network in verticals and buildings and transport. All of these initiatives underscore the commitment we have with out-of-home, always in line with the demands of our customers and the market. Now, when it comes to sales, we had a significant increase in sales, BRL 278 million in the quarter, 41.8% higher year-over-year. In the past 12 months, our revenue totaled BRL 1,030 million. That's a 20% increase year-over-year. This performance is due to the better recognition we have had in the sector and our efficiency in commercial strategy, also due to the new operations we have had and the progress and the maturation of our newest investments. When it comes to streets, in this vertical, we had a 45% increase year-over-year. In buildings, we have a 61% rise year-on-year. That is mainly due to the increase in residential buildings, also programmatic advertising, our programmatic sales, rather, and also our organization to service small and medium businesses. In transport, we had a 31% rise year-on-year, also showing the good results that we have in rail advertising and airport advertising, including the new contract we have with the Santos Dumont Airport. In shopping malls, we had a 17% increase. That shows that we have seen the retail bounce back. This sector has a very clear seasonality, and the first quarter normally has lower revenues due to the start of new marketing campaigns. Historically, this quarter normally accounts for 20% of the total revenue, and the last quarter accounts for 35%. Due to our performance in sales and due to our control in costs and expenses, we have had a margin of 31.6%. We have had an EBITDA of BRL 76.5 million in this period, a 31% margin. We can see that the results had a 51% improvement year-on-year as well. This performance led to BRL 372 million in our year-to-date EBITDA, or rather, in the last 12 months, EBITDA, a 37% rise year-on-year. Now, the operating result combined with the leveraging of the debt in the year reflected in an adjusted net profit that was BRL 22.1 million and a net margin that was 9%. That's a number that is over six times what we had in the past year when we had BRL 3.5 million in our profit. We also had a 7 percentage point increase in net margin, and the total accounting profit was BRL 30 million in the period. Now, talking about the cash flow analysis, we had a conversion of 153% of our EBITDA in operating cash management, totaling BRL 117.4 million. After paying interest, the operating cash was BRL 51.2 million. That was due to the payables from last quarter as well. When we look at investments, we had BRL 25.4 million in the quarter, mainly due to new devices being bought, new equipment being bought for street furniture concessions and also for the building vertical. We have realized amortizations and debentures and loans that were BRL 241 million in the first three quarters. Our cash was over BRL 268 million in the period, and the net debt was BRL 292 million, representing 1.3x our EBITDA in the past 12 months, in the last 12 months. That is comparable to 1.8-fold what we had last year and 1.5-fold what we had quarter-over-quarter. The gross debt was reduced to BRL 670 million compared to BRL 995.3 million in the last quarter. We had another quarter then with very solid results with substantial growth and with focus on execution. We have reached 1.3, which is a record in the reduction of our leveraging. In the ordinary general meeting in April, the distribution of dividends or dividend payout, rather, was approved in the amount of BRL 12.05 million. This is the first year where we'll begin to be having a dividend payout approved at 100% of the legal limit due to the reversal we had in the previous quarters. Now, I'd like to give the floor to Guerrero for his final remarks. Thank you, Ricardo. It's great to see our company starting to pay out dividends. There are three main points that I think we should highlight here just before we start the Q&A session. We see substantial growth in revenue, 42% year-on-year. We see that our EBITDA grew 51% year-on-year. Our net profit was 6x what we had last year. Eletromidia Ads and the SMB platforms have been making very important progress, and they have allowed us to position our company in a new level, in whole new interaction with the brands and with the agencies. And it has also allowed Eletromidia to scale up our business. We can deliver value to our customers. We have projects that are ever more based on data and metrics. We continue to be very enthusiastic and very excited, but also very disciplined in our execution. I'd like to wholeheartedly thank our Eletromidia team, who has been working hard to allow Eletromidia to climb onto a new level and who is also helping us make history in out-of-home in Brazil. I'd like to thank our board directors and our partners who support us in all of these initiatives. We'll now start the Q&A session. We'll now start the Q&A session for analysts and investors. You may send questions in writing using the Q&A button at the bottom of the screen. Once your question has been selected, you'll be able to unmute your microphone. Should you not want to read your own question, our operator will read the question you've sent in writing. Our first question comes from Bernardo Guttmann from XP Investimentos. Mister Bernardo, pode prosseguir. Seu microfone já está liberado. Mister Bernardo, you may pode prosseguir. Seu microfone já está liberado. Mister Bernardo, you may pode prosseguir. Seu microfone já está liberado. Mister Bernardo, you may start. Bom dia, pessoal. Vocês estão me escutando? Hello, everyone. Can you hear me? Ouvimos, Bernardo. Pode prosseguir. Yes, we can hear you. Bom dia, Guerrero, Ricardo, team Eletromidia. Obrigado. Guerrero, Ricardo, Eletromidia team, thank you very much. E como essa sazonalidade piora no começo do ano? Se estivermos... como essa sazonalidade piora no começo do ano? Se estivermos... como essa sazonalidade piora no começo do ano? Se estivermos... Given that the seasonality is worse at the start of the year, you have had very important growth. I'd like to try and understand the demand and the activities. Have you noticed that there has been an increase in the number of advertisers, or is the share of wallet of current customers growing? My second question has to do with your footprint. The company already has a substantial audience very much focused on the capitals. How do you consider tapping into other cities that are not capitals? Are you looking into new concessions? What are your plans? Bernardo, bom dia. Obrigado pela participação. Bernardo, thank you for joining the call. As for the performance of our first quarter, I think it's important to say that the expansion of our company, especially in the Northeast, opening up brands in Salvador, Recife, and Fortaleza, that allowed us to capture value in two of the main events we had in the year, summer and carnival. So this expansion, coupled with the seasonality of the period and the Lollapalooza and Easter moments were the main traction moments, the main drivers. They allowed our companies to grow. In this period, that seasonally is the weakest in the sector. Now, as for the share of wallet, I think we have been making progress in the three main fronts. First, customers that have been investing with us for a long time. October last year, we had our Tomorrow event, our sales upfront event. We signed all of our JBPs, the annual agreements, contracts that we have with the brands. These contracts are more and more mature. They continue to grow. We can continue to grow even with brands that have more maturity than others. Second, there are customers that have less maturity. And these customers, they're either starting to build JBPs with us, or they start investing with more consistency now, allowing for them to grow. And last but not least, when we look at customers that haven't yet tried out-of-home or SMB clients that still have a small share of the total revenue, but there's a very large TAM, so I think these three avenues have been well served by our commercial teams, growing with strategic clients, also developing new clients and gathering new clients, and also generating experience and long tail. Now, your second question regarding expansion. Our business was developed looking at the main cities or the main metropolitan centers and the main media or marketing and advertising centers. Now, the second round that looks at smaller towns is natural for the growth of an industry like ours. We believe that when we look at the 20 or 30 largest cities in the country, there is still a substantial roadmap in public and private concessions, especially in street furniture, airports, and also some other in the transport vertical. But when we look at the second layer or the second tier of cities and towns, then there's a lot of room for growth. And our company is probably going to start looking at these businesses soon. The structural matter is ever clearer. We have governance rules for compliance and governance for new concessions and new bids that are really well structured. That is an opportunity for our companies when we can really join these processes when they start taking place in smaller cities and other towns. I think this is an overview of the three points you raised. Our next question comes from Eduardo Rubi from UBS. Eduardo, pode prosseguir. Seu microfone já está liberado. Eduardo, you may begin, sir. You may unmute yourself. Muito obrigado pelo espaço para fazer perguntas. Hello, everyone. Thank you very much for taking my questions, and congratulations on your results. Como que a gente poderia? First, could you talk a little bit more about our margins and what you expect for the future? And these expenses and these new markets, what could we expect on that front? Thank you. Eduardo, obrigado pela participação. Thank you for raising these points. We ended 2023 with a substantial increase in our margin, the 6 percentage point, so 37% EBITDA margin. And we started this quarter with 32%, comparing to 27% in 2023. We continue to expand new concessions in the rollout of a number of concessions this year. And we continue to invest in our technology projects. And we aim to sustain a margin at 37%. And we have seen that we have had very good performance with companies that we purchased and individual examples. Very clear. Thank you. A nossa próxima pergunta vem do senhor Cristian Faria. Our next question comes from Cristian Faria from Itaú BBA. Cristian, you may start, sir. Bom dia, pessoal. Bom dia, Ricardo. Bom dia, Guerrero. Parabéns pelo resultado. Congratulations, Ricardo and Guerrero, on your results, and thank you for taking my questions. My first question is: can you talk a little bit more about the dynamics of the growth for Eletromidia, but from an advertising perspective, from an advertiser's perspective? Senhor Cristian, seu microfone deu pequeno problema. Mr. Cristian, I think we have a technical problem with your microphone, sir. Se puder, por favor, repetir a pergunta. Try and repeat your question. A conexão do senhor Cristian caiu. Lembrando que, para fazer perguntas. Mr. Cristian got disconnected. Should you wish to ask a question, just click on the Q&A icon. Please bear with us while we collect the next questions. Senhor Cristian Faria voltou com a conexão. Por favor, senhor Cristian, pode prosseguir. Mr. Cristian, you may continue, sir. Apologies, everyone. So my question was: can you try and clarify your growth strategy or dynamics, thinking about the number of advertisers as a whole, and also how that correlates to price? How has CPM been behaving in these past moments? And my second question has to do with SMB. There are some details in the presentation already, but there was a new version that was launched recently. So I would like to understand a bit better how that start of these new operations has been going, and also what your expectations are for operations in other segments. Thank you. Thank you, Cristian, for your participation. Ad spend, I think that's something that you brought up. Whenever we have geographic expansions, we can increase our reach, also when we digitize markets that we already operate on. And when we increase our reach, we increase our impact. This figure: 53 million unique viewers, unique people that we reach every month, that already contributes to this view. The first point is that we don't believe in the either/or. We believe in the one plus the other. So digital plus out-of-home, open TV and out-of-home, the CAC, the CAC, customer acquisition cost indicators have been very positive. And what we've been noticing in our analysis is that our CPM continues to be very competitive in every environment, be it due to new geographies or digitization in markets that we already operate in. So it's a positive agenda that should continue to grow. I think the industry as a whole still has tailwind in the next three to five years. Continue to develop in geography, perfecting also our ads platform, looking at data and metrics. Now, SMB is a startup within our company, but there's a blue ocean, right? It's a gigantic total addressable market. The out-of-home has never really tapped into it. There are very positive results, of course, if we look at the more robust growth rates because it's still at the very beginning. But we have basically been making investments in people and technology, be it AI or data scientists, and the results have been rising month after month, be it due to the platform or due to our sales team. Purchase recurrence is also something we've been monitoring, and we have been keeping a close eye on the indicators so that we can have more improvements made to our platform and also to, I mean, the go-to-market with other channels, with new partnerships, with companies that already work in this ecosystem that is already ready. Digital has already built it. And what we're doing now is we're looking at this development track and we're building our business. So there's a lot of opportunity for us to seize. 2023 was a year packed with learnings and robust growth. We do not give any guidance, but clearly, this is a vertical that has a lot of room for growth more than other verticals, also because of the level of maturity it has. When we look at our business verticals, we have buildings, lifts, and shopping malls. When we look at rail and airport transport, they are still the two last ones where SMB should gain more momentum, also because of the characteristic of the business. So when we look at both questions, I think this is an overview we can give as an answer. Só fazer follow-up em outro tempo. If I may ask a follow-up question? You mentioned the first dividend payout. There has been a lot of growth. There has been a lot of financial leverage. How is it that you see return on investment for shareholders in the future? Legal, Cristian. Bom, de fato, anunciamos esse ano a primeira distribuição do dividendo. Yes, we announced now the first dividend payout. Referente ao ano de 2023, a gente executou o ciclo líquido. And And in 2023, we executed 100% of the accounting net profit available for distribution. Temos nossa política de dividendos que possui uma distribuição ao menos do. With the 25% payout and the net profit of the period. Nessa crescente junto com os nossos resultados. And we're going to continue on that front with our results. All right. Thank you, everyone. Have a good day. Nossa próxima pergunta vem do senhor Gabriel Vaz de Lima. Gabriel Vaz de Lima is going to ask his question. Pode prosseguir. Seu microfone já está liberado. Gabriel, you may unmute your microphone. I've got two quick questions. The first is a follow-up to a question that has already been asked. Reportaram 42% de crescimento em bruto revenue is what you reported. How sustainable is that? And in margins, 4.5 percentage points. Eu havia 4.5 percentage Eu havia 4.5 percentage points. Sustentáveis para os investimentos que vocês estão fazendo, mas queria entender de uma forma mais direta. And that is not exactly sustainable in the verticals that you have, but I'd like to try and understand the sustainability of these results. My next question is about the debt. 1.3 is what you believe is sustainable for the company going forward, right? Or what is your opinion? Thank you. Obrigado pela participação, Gabriel. Bom. Thank you, Gabriel, for your participation. Every year has its own dynamics. 2023 had a new government taking office. There were some events that may have impacted companies' confidence, like the credit crunch that we saw at the start of the year. So we expected better growth this year in comparison to last year. The LTV, pardon me, the LTM, the last 12-month growth was also good. The first quarter normally performs worse than the third and fourth quarters, so we really have a smaller base to start off of. And with our operating leverage, we have a better margin expansion at the start of the year than you can expect for the year as a whole. And 1.3 times, I mean, we're a company that generates a lot of operating cash. That can be seen in our EBITDA to cash flow conversion historically. And as we deleverage, we have more availability to sustain investment. We see 2-3 times net debt/EBITDA as sustainable, as good the company had it in the past, of course, considering a number of factors also, the level of interest rates and the banking spread. Thank you, everyone. Lembrando: participantes podem enviar perguntas por escrito utilizando a ferramenta de envio. Should you wish to Should you wish to send any questions in writing, you can use the Q&A button at the bottom of the screen. You'll then be asked to unmute your microphone. If you do not like to use your microphone, por favor, read your question yourself. Our operator will read it for you if you would not like to read it yourself. Please bear with us as we collect the next questions. There are no further questions. We will now conclude the Q&A session and turn the floor back over to Mr. Guerrero for his final remarks. Thank you, everyone. Eu queria mandar abraço para toda a população do Rio Grande do Sul. queria mandar abraço para toda a população do Rio Grande do Sul. I'd like to, just before we conclude, send my warm regards to everyone in Rio Grande do Sul. Our team in Rio Grande do Sul will know how difficult the situation is out there for many of you. And thank you, everyone, for joining this call. We're still very enthusiastic and excited about our business, very disciplined in our execution, and we believe there's a number of opportunities out there for our company. So thank you very much. We hope these materials we have put together will help you have an ever better analysis of our company. Should you have any questions, just go to our RI website or talk to our team. Have a great rest of the week. Thank you. This is the end of the Eletromidia's earnings call. Should you have any queries, please send your questions to the IR website using the RI.Eletromidia@eletromidia.com. Have a great day.