Bemobi Mobile Tech S.A. (BMOB3) Earnings Call Transcript & Summary

Good morning. Thank you for being here. We're very excited about the Bemobi Investor Day. We have lots of interesting information, and we're sure you're going to be blown away. We also have some of our officers who are not usually talking to you. So this is going to be also interesting in that sense. We have a standard disclaimer here. Any forward-looking statements here are not any guarantee of future profitability. First, we're going to hear from our CEO, Pedro Ripper.

Good morning. By the way, before we get started, these tables are available. So if you want to move forward, please go ahead. As Nicholas was saying, it's been over 2 years since the last Investor Day. And we like this kind of event because usually during road shows and earnings release presentations, we have to keep it at a surface level. Sometimes we have financial statements or we have overall remarks, but we missed the mark of the connection between numbers and our strategic vision. Sometimes we're unable to really convey our bets and our assumptions. So today, we have a longer session. In our agenda, we're going to try and connect these ideas. I'm going to be brief in this introduction. I think many of you know our history well, but I'm going to spend a couple of minutes to talk about where we're coming from because this will help you understand where we're going. Then we're going to be discussing concepts. And I don't want to be preaching to the choir. I don't want to be talking about why AI is hot right now or talking about the payment industry. But I want to show you what our lens is when it comes to looking into these topics, which are key for our business. We're going to discuss why we're obsessed with AI and what we see as transformation in the payment methods industry. Again, we're going to be highlighting what it means to us. Now going from concept to practice, we're going to do something different here. We're going to share a product view. I'm going to be handing it over to Felipe Goldin, our CTO and Product VP and Lucas Zardo. They will be brief, but they will be talking about the trends that we see, the opportunities that they represent and how we turn that into products that we offer to our clients. Right after that, João Stricker, our Chief Revenue Officer, will be talking about our strategic vision, the products that we want to deliver on, our starting point right now and the growth that we expect for these verticals. And finally, with a financial lens, Andre Veloso will give us a recap of the last 3 years. He's going to be discussing what we expect for the last year and ahead. So let me give you a brief overview, and I'm going to try and be brief. I find this funny. We were born out of a spin-off of a company that specialized in payments. So I think this is our destiny. And during the spin-off, the company that was actually the subject of the spin-off ended up becoming very niche. We saw the boom of smartphones, and we decided to focus on distribution, monetization and alternative payments for the mobile gaming industry. This is a huge industry right now, and we had lots of asymmetries at the time. Now time went by and now we have the subscription mode. We call it the AppsClub or the GamesClub depending on the mix of apps. Again, this was focused on alternative payment methods. At the time, this was basically the opposite of what we're going to discuss now because credit cards didn't have lots of penetration in Brazil and other countries where we had operations. So we were looking for other payment methods to make these services universal through micro transactions. Since we had a telecommunications background, we understood that recharging was how this was going to be done or the top-ups. We started working with lots of carriers, but especially in Brazil and Latin America. When we started understanding that for us to have massive distribution in the B2B2C model, we had to understand about digital channels. We were already 100% digital, but we developed a DNA to understand how to create a connection between a business and their end customer to collect or to talk to them. So we had this SaaS structure. This was born when we were working with the gaming industry in apps. We would call this platform Loop. And then we got listed. This is 2021. We had 2 or 3 assets, mainly 90% of our revenue came from the distribution and monetization of mobile games. We also had a relationship with 60 to 70 carriers from all over the world. And we have the structure of the digital distribution of apps where we could do cross-selling for other services. We also saw something shifting in Brazil. traditional payment methods were on the rise and the role of alternative payment methods was decreasing, especially in Brazil. So our hypothesis was that it would be great to have very accurate, very specific acquisitions, and we had our targets in mind before our IPO, and we wanted to increase our revenue with the customers that we already had. We wanted to create a natural hedging by going into "traditional payment methods." So we bought M4U. This is a company that we had a spin-off from. They went to Cielo, and we bought this asset back. This was basically a foundation for the reinvention of Bemobi in the past few years. We also bought a microfinance business from Chile with a strong operation in Mexico, which we keep very important for Bemobi in the next few years. Now we're nearing the current times. In 2022 to 2023, so 3 years ago, we started working on the concept of being a specialized payment player in a vertical segment. I'm going to go into details about what this means. So we had 2 acquisitions. We wanted to go beyond our traditional industry. We used to be a company that was very focused on having partnerships with telcos in Brazil and abroad, but we saw that we had other closer industries that made sense. We were getting into utilities. We decided to go into education, and we chose the long tail of ISPs. We had 7Az and Lucas is here. He's their founder. He's going to be talking about a new solution. And we have Anderson from Fortaleza, who is here with us online, who operated a SaaS business, which we bought for digital payments for digitalizing schools. Now we're almost at the present time. Recently, we had 2 acquisitions. We were able to confirm our strategy because we were still dipping our toe in the water. But with SaaS and payments, we decided to double down. We bet heavily on this for the future of our business. So we bought another SaaS business, which was called Nomo and which is now called Wave. And then we bought a shell of company in payments -- the [indiscernible] was no longer secondary. It became a main player. So it made sense for us to be more vertical there so that we had control over our own IP. And Friday is how we were able to do that. We have our proprietary IP. So we don't have to rely on third parties. Right now, our overview is that we have 60 countries. We are still heavily focused on telecommunications and a few other services. We're talking to 5 industries, and we had a few dozen clients, but now we have over 1,500 clients. We work with medium-sized businesses at most. We're going to be discussing this concept throughout the presentation. And I'm going to try and make it less abstract, especially when you talk to [ Gino ] and Lucas because you'll be discussing projects and products. So the concept of vertical payments means that payments are a part of a longer journey. It starts with the end customer interacting with a business. You have the North interface. However, you have the payment and then you have the South interface, which is your systems in a business. You have billing, CRM, ERP. We noticed that oftentimes, there was friction in payment, but also at the borders of communication between customer and business. Oftentimes, communication was a fee. So we understood that we could work on different points of this chain to ensure for a smooth communication. And this would make a huge difference in adoption and conversion. So we talk about a vertical because we're talking about a software stack. We want to be closer to customers. We want to make sure we enjoy digital communication, but we can also use ERP and CRM and we can that for this whole system to work, we need full integration from beginning to end. This is what unlocks value. We also joke around and we see that a vertical means that we've recognized that in different segments as an industry matures, things mean different things. And e-commerce is going to mean a different thing for a telecommunications business or for a school or for a personal care shop. So becoming specialized really makes sense. And we don't believe in this out of nothing. We're testing hypothesis. We see how the market responds. And the best way to do it is to go to market. We usually do it with the leaders in a given industry with the biggest names where we have lots of scale. So for every industry we enter, we go from the top to the bottom of the pyramid. It's usually the opposite of what other businesses do. At the top, we have a stress test of our thesis. The product is not as segmented when it comes to the ability to replicate it so we can still customize it. And as we become more mature, we turn this into a product and we have lower costs to go down into the value chain to talk to smaller businesses. This gives you an advantage in this industry. So right now, basically from the biggest utilities in Brazil, we were working with the biggest private businesses in utilities in Brazil and 12 out of the biggest 15 are our customers. So this is a sanity check. We have this thesis of software verticalization and specialization. I think that the fact that we are getting the biggest clients in each industry is confirmation that we are on the right path. We can also check for that when we look at our transformation. When we became listed, our business was mainly focused on game monetization. We had alternative payments and digital subscriptions. We had a very small share for micro credit, payment was basically nonexistent. It was 3% of our revenue. And we also had something with channels and software. Now time goes by. And in the last fiscal year, we grew the company by 2.5x. But more important than the growth is that this thesis is now more robust. Nowadays, almost 60% of our revenue comes from these 2 business lines, which are relatively new and were not relevant a few years ago. Now this is not a guidance, but it is a sign of what we believe in. So for the next 2 years, meaning 2025 and 2026, this is where we believe growth is going to stem from basically based on what we're doing and what the market can offer. In the last quarter, we have 58% coming from vertical payments and 42% coming from traditional offerings. Now when we look ahead, we believe that a disproportional part of growth is going to come from the first 2 verticals. If you double-click on growth forecasts and our potential for growth with Joao Stricker, we're going to be focusing here. As I said, we believe that 80% to 90% of the growth we expect is coming from here. Finally, here, we have an x-ray of things we don't usually talk about on a day-to-day basis. We had a significant growth of our workforce. However, since 2022, we reduced our pace of growth, and this is by design. We're going to be discussing operational leveraging and how to leverage AI, which is something more recent. So yes, we're going to keep hiring. But as we create more products or as we go deeper into products, our revenue is going to grow faster than our team. In our geography, 3/4 of our team is in Brazil right now. So we have more people in Brazil than revenue. Brazil is a good hub. We have more operational synergies here. So we do a lot with a few offices, even though we have folks in 18 countries. These are people who are closer to customers. Finally, we can look at the type of professionals that we have. We are focused on generating IPs. And most of these IPs are connected to tech and products. So around 2/3 of our team comes from tech and products. Finally, since we don't always have the opportunity of being together in person, this is a snapshot of some of our leaders. Many of you know João because you are a part of the early release presentations. He's our CRO. We have Andre Veloso, our CFO. Many of you know him. But here, we have other leaders who sometimes are not in direct contact with you on a day-to-day basis. Fernanda is our People and Culture Director. We have Gadner, who -- it feels like he's been around for 5 years, but he's been here for like half a year. He is now helping our team with lots of experience in the utilities industry. He comes from the tech and telecommunications industry. Then we have Lucas Zardo. He is one of the newer bloods coming from 7AZ. He was the CEO and Founder of 7AZ, and now he's leading 2 business lines at Bemobi. He is leading the subsegment of access providers, and he knows this in depth because this is how he created his business. He's creating a new area at Bemobi, and he's going to be talking about it today. Felipe Goldin is our CTO. Around a year ago, we saw the trend of mixing up product and tech, and this is what we're focusing on with Felipe. We usually joke around that if anything goes wrong at our company right now, we can blame him. But jokes aside, this makes a difference. Peter is not here with us today. He's in Denmark. He takes care of our international business outside of LatAm, a little bit under 30%. We have Henrique Garrido, who is over there, and he's another founder. He is leading our digital transformation department. He's the founder of previous Nomo, now Bemobi Wave. We also have Ricardo Santos in the back. Ricardo has taken care of many departments in this company. He was working with products and now he's working with marketing, partnerships and strategy. He is one of the biggest people who put together what you're seeing today. I mentioned Anderson briefly. He's also an entrepreneur. So we have execs from bigger, more structured companies, and we have entrepreneurs from smaller start-ups. So in addition to taking care of this product, he also takes care of our education segment. And finally, we have Andre Andrade, who is not here today. He's been at Microsoft, Nuance and he also works with digital services. He reports to Joao Stricker. So everything that is related to Brazil is led by Andre. What we want to share is that everyone who's here is here for a reason. And we want to strike balance between people who understand about payments and technology, which is our horizontal core, people who have experience in the industries where we're active and also people who are entrepreneurial with a sense of ownership, but at the same time, have this executive flare and are able to take care of a business that may be 5 to 10x bigger than what we are today. So this is our pool of talent right now. So we wrap up this brief introduction and I will try to give you a backdrop so that we can hit the floor running in the next sessions. So I talk about AI in every TED Talks you go to 8 or 9 of them talk about AI. And I agree with that emphasis just out of curiosity. When I was doing my masters, I went abroad to study AI and I joke around saying that I got it wrong by 25 years because I was 25 years early. But in the last 4 years, what was a big promise has become very promising indeed. So let me give you our interpretation of AI. We believe that AI is not a hype. You can have like a short-term pulse. But this is a project for a 2- to 3-year horizon, not a 10-year horizon. And we do believe that everything we've been talking about will actually take place. So this is a priority and not the secondary topic. A few years ago, we were focused on studying AI, but it was not a top priority, but this has changed in the last 8 months. We believe that a lot is going to be disrupted, but the world of the business minds will be disrupted even earlier than the physical world. And since works with the digital world, digital payments, digital customers, we believe that these are segments that will be hit the hardest first and those that don't get it will be left behind. So for companies that do what we do, we cannot just be sitting aside, you have to lead with all the owners and the burden and the bonus of doing so. And time will tell. But those that do this well and get things right will have the chance to lead this known configuration of different industries. But I can assure you that will see many people changing positions and things changing relevance. This is a believe we have, this is not rocket science, just the way we organize our rationale. So we believe that there are 3 waves that happen more or less at the same time. So you will not wait for wave 1 to be over to start wave 2. So the most obvious case we have for industries like ours that are digital is the potential in gaining productivity, which is huge. And when you use these AI tools, you understand what else they can offer you. And the second wave is by understanding what we already do today, the type of challenge to solve for our customers, we can use AI to change the quality and the value of what we offer. And once you start doing that, that's like a metaphor. When you're walking among the cloud, you start being able to see what the most structural changes will be. Some players and activities will lose relevance completely and then new activities will arise. This is what we're calling wave 3. And we believe that surfing waves 1 and 2 is key for us to better understand what Wave 3 will look like. So let's zoom in on each one of the waves to tell you a bit more about what we're doing to serve those waves. So the first wave is about supercharging productivity. And this can help all of the positions here at Bemobi, but I chose one that is even clearer for you. As I told you our DNA is people. 70% of what we do relies on people. Our CapEx is intangible, it's R&D and that relies on people. And 2/3 of our company are people, and they are creating products, creating technological solutions. And we've been seeing that one of the killer use cases that we've been seeing is to use AI, not only for coding, but to develop products from scratch at an unprecedented speed and at a tacit hypothesis quality that was unforeseen in the past. So let me share a brief video with you. This is our colleagues of technology talking about the coding and product generation market with AI. [Presentation]

Argue that part of these executives are biased because they are providing the tools for coding. But they are also companies in which coding is a core product, and they've been eating their own dog food. So [ Felipe Goldin ] and I focus on a project on our free times, and we've been working hard to separate what is hype and what is reality. And we tried to code with ChatGPT a few years ago. And that was helped us to document coding and to remove one bug or another, but you would hardly change the process on the go. But literally, in the last 8 to 9 months with the new models, new recent models and the amount of tokens that you can pass through a window and the native tools that are now embedded this, we've seen a quantic move forward. Now you can get nondevelopers to prototype apps in minutes because in the process of iterating the product, it's the value it's hard to measure and the quality and the robustness of the code that is tested, generated, tested and validated is dramatically better now with AI than without it. And if we project a learning curve, if you start using it right now, when this is the only condition, then you will already be there. And we ran an internal survey 6 months ago to understand the level of adhesion and use of AI at Bemobi. And the first surprise is that it was below what we expected. And I checked with our peers at other companies, and we were better than them. So it was at the same time a wake-up call, and we understood that there was a mismatch because for the most senior developers that work well without AI, they started to show a bit of resistance. So we changed our approach. I'll show you a demo so that you understand the day-to-day of a product person interacting with a technology person and the targets that we have self-imposed to achieve by the end of the year. So just briefly, one of the things we do at all times is to try and see how you can remove friction from the payment process and the elements of the payment process is to have checkout that supports many functionalities and it's quite straightforward. So this is a natural example. This is a static screen or a design created by a designer, and they are interacting with the product team. They work with Figma, this design tool that shows flows. This would then go to a DFT that would code this would take 2 to 3 weeks and then this would go back to design to customer to product, and you would repeat this process and iterate over and over again until you get to a version that would go to production. So this animated screen that you see on the right is a real code, a native code that is running on several smartphones, this was generated in 15 minutes. The designer took a picture, an image and created this in 15 minutes. Of course, this is not a code in production yet. It's not under production, but you shorten the cycle that would take 2 weeks to minutes. So I'll show you this video now. This is one of the tools that we're making available to our team. On one side, you see the image, and we're not going to say anything to the AI tool. And the AI will interpret the image. There will be a semantic understanding and based on that, they will create a code, the AI will create a code and it will generate that image, but no longer as a picture, but as a code that can run on Android and iOS. But we didn't say anything to AI. So you see that there are many prompts or natural language that could be voice or audio or written messages to say, oh, I want the user to expand other options when they get here or create an option to release the payment means. And AI will not only adapt the code in real time as you give the prompt, but also imaging items that are not there will be taken from a repository. So you can see the level of autonomy in these apps. It creates elements of graphic interface that we're missing in the image on its own. So let me show you this. This is a 3-minute video, but we have accelerated it. We you have a fast version of 1 minutes only. So you see that image and it generates the first code so it starts to give you description. And when the user puts some value, I want those to expand to more items. And then they said I'm going to change something here. If you select 1 I want it to mark the payment method that has been selected. And remember, this used to be a static image. And whenever you're giving prompt in real time, the AI under the prompt and updates the code and you can see in realtime how the graphic interface is being updated. And this gives you real feedback. And this is noncoding. This is a product person doing this. Technology team didn't even have to get involved at this stage. But at the end, you have a prototype. Just to make it clear, I wouldn't send this to production right away. But you have a prototype and you test and you say, well, does that achieve our goal? Should we take this to a client to test, should we run an AB test? This is not the future. This is something that happened 4 months ago. And literally, 8 months ago, this was impossible. So in a period of 4 months, we took a process that lasted 1 week and now it can be done in 11 minutes. So will the company work at a speed that is 100x faster? Maybe not, but you can interact much more, improve the quality of what you do and decrease lead times. So this is just one example of dozens that we could share with you. But this shows that tipping point. We were just dipping our toes in the water, but now we think that we need to take a deep dive into this full and the time is now. And we have established some targets because if you cannot measure, we don't know whether we're evolving or not. So although we gave you a coding example, the impact is across the board, contract review, NDAs, language translation, some basic stuff. 100% of the company is being trained. They are not yet proficient in AI, but that means different things for different people. And when it comes to coding, we have a target. We want to have 80% of the coding committed. 80% needs to be either assisted and/or generated by AI. Assisted means you have a developer supervising the process. And in other cases, by the end of the year, the codes will be generated by AI. And we're going to measure productivity not only based on cost reduction, but also on increased throughput. And unlike traditional companies that say, oh, now we're going to standardize and everyone will use Copilot or X or Y, we are still looking at our options, tools like Cursor that we rely on today didn't exist 2 years ago. And this is the best tool right now and Windsurf, which was acquired by OpenAI recently is another example. So we have adopted like 8 to 9 tools, and I'm sure this slide will look completely different in a year's time. We are just trying out and we're sure we're going to have good and bad experiences, but we think we should test them all out. So this is what we call Wave 1. And this is a very important wave for us to position ourselves for wave 2, but we are already serving wave 2 as well. So wave 2 is about taking what we already do and embed AI not only in the way we develop, but also in our value delivery proposition to do something that is materially better than what it was before AI. So how do we measure that? Just to illustrate something that a payment company does is to improve payment conversions. So this is a good metric. If you include AI, you have to check whether you have improved this metric, user experience, less friction, less time to complete payment and cost optimization. Felipe Goldin and Lucas will give you examples of our new product and they will tell you how they have adopted AI. And Lucas will give you an interesting case because this third element not only has AI included in the product, but this is the first product that was created from scratch with AI. So in less than 100 days, we went from conception to production with large-sized customers with the help of AI. So we got the wave 1 process. We created a joint service offer, used AI to implement this, and this is [ in the root ] of one of the services that we'll tell you more about in a minute. So I don't want to give you any spoilers, so let me move forward. Now let's talk about Wave 3. We should be literal here. We should exercise our imagination for 2 to 3 years how can our industry change the payment and purchasing process. Google has an annual event called Google I/O. This is an event for developers, and they have shown how search, which is Google's core business is being reinvented. And they have shown a complete journey from search to purchase. We have short in the video, but this is a person who wants to buy a purse. So they will search first and create an agent to monitor the market to get that purse for her. So I'll tell you how the e-commerce and payment process happens with this new version that is about to be launched. There we go. So here you can see the user is monitored this purse. They have searched for the purse before and they just click on buy from me. So this is like a checkout that will go to the user. They don't have to enter payment method or anything else. So what happened here in these few seconds of video. They destroyed the e-commerce and payments industry as we know it because the e-commerce store in this case is not even shown to the user and the payment disappeared from the user perspective and you have an agent there which is Google search representing the user that wants a purse and the agent who is capable of finding the for the user to validate and the payment was done into place. So how will this happen in the real world because this is not only a conceptual [indiscernible]. In LLM models, you can create agents which are businesses software with greater autonomy and the software will be built for agents to talk to agents. So you have languages and patterns. Google has the [ agentic ] model for agents to talk to agents and [indiscernible] needs to talk to each other. And we believe there will be 2 major markets. The first, agents that will serve us as individuals. So you have major B2C agents and you have Gemini, Copilot, ChatGPT and Siri which is working behind. It can also perform different tasks. And we're talking about simple tasks today. They are connected with the chat format, but these agents are gaining autonomy. And for these agents to be effective, you have the other side of the coin, and that's where we fit in. These are the agents that in our micro [indiscernible] will represent the merchants. So to create that magical experience, you have to have lots of pieces of information exposed. So you have to have a wrapper around your product catalog and e-commerce and the checkout that we used to have with payment methods and the collection process for the services industry. So the opportunities we see in Wave 3 is although we're going to kill checkout as we know it, there will be a new framework that will enable the B2C agents, which are not our focus to enable these use cases. So we focus on service companies. So we could be an enabler for the service companies to offer a more seamless experience when the B2C agents start operating. This is just one illustration. But this can be done with the technology we have today. This is just about combining things and gaining scale. So you have a B2C agent. I use Gemini, but it could be any other. And this Gemini will be able to communicate with several agents that are representing our agents, maybe an energy provider or a mobile carrier payment agent or a school and so on and so forth. And each one of these agents know the customer information, payment means and the history of the customers with this institution. So in this hypothetical example, you can tell Gemini. "Well, Gemini, I want to pay my electricity bill." So Gemini knows that you live in Rio de Janeiro, so your utility company is Light and they will communicate with us and say, "Pedro the bill is due tomorrow, this is the amount. Can I use your credit card that has been registered in your wallet." And you say, "yes, please." So the agents will interact with each other, and that's it. Your bill has been paid. And this is a possible future. But the arrangement part of it checkout, e-commerce, and this can change in a short period of time. And the companies that are not needed in this market are the companies that will be disrupted. And this is not a product for 6 months' time. We need to understand where this will go so that we can be the best partners for the companies we serve today. So to wrap up the session, we will now try to give you more tangible cases in the coming quarters, but we know there is no way out. this is a threat for those who are doing nothing. And this creates opportunity to gain efficiency, generate value and to disrupt the market at the end of the day. Now let me tell you about the last industry trend that I want to address today. When we were preparing this material, we try to understand why we created certain solutions. And we decided to take a step back to see what happened in the Brazilian payments ecosystem. And for us, we're engaged in this on a daily basis. When we take a step back to look at the whole picture, we saw movements that were not as obvious as when we were there creating the product. So we want to tell you what we were able to see when we took the step back. So forgive me if there is one or another in precision, but I just try to streamline the whole process for you to understand. But this is the story of how people paid for anything here in Brazil. We're focusing on Brazil here. And the story may be similar to that of other countries. But we spent almost 20 years with one single way to pay our bills in Brazil, virtually speaking. So you have a bank slip, what we call boleto. Brazil is not highly banked. So you had to have something that worked for banked and unbanked people. And you basically had one channel, which was the bank, which later became Internet banking, but it would be the digital or the brick-and-mortar bank and one payment method. So we lived for 18 years with that single payment method. So now in the following 10 years, things changed. The boletos or bank slips changed. We saw the rise of DDA, which is a bank slip adapted to the post Internet world. So this can be seen on any bank that you have an account with. And this was launched 15 years ago, but you still have a lot of unregistered bank slips. In the utility sector that we work with more than half of the bank slips are not DDA yet. And credit cards set this date because this is a date and many things happened in Brazil. You broke monopole, you used to have one brand only for credit cards and then 2. And from 2009 to 2010, the monopoly was broken, new players came in, and we established what we call 4 parties model. So you have the credit cards, the channel, the merchant. Anyway, this brought a disruption to the payments that were made in the points of sales. And it also paved the way for online payments. So as e-commerce and other companies created e-business and self-service websites, then you created 2 different channels. The brick-and-mortar bank, Internet banking, in-store, online and this migrated to mobile and also the complexity increased and that was in the 10-year window. Okay. Now let's move forward to 2020 to 2022. This is when the PIX invention was launched. This was here to replace the old DOCs and TEDs, which I didn't even include here because this was more for individuals and not companies, and it was very successful. And overnight, it replaced DOCs and TEDs, which are the electronic funds transfer. And I mean, consumers are usually faster than companies to adopt technology. Even for PIX, we saw this happening. So first, individuals started doing this and then the companies. It was fast, but still lagging behind individuals. And about PIX, it exists for 5 years now. The PIX already still account for like 50% of the payments. So yes, companies do lag behind individuals. That was in 2 years. So now let's speed up and things will get more complex. In another 3 years, you have a few more transformations. Credit card brands, when they saw the evolution of PIX, were also evolving their rails, their payment structure, and they made many changes. They try to make online transactions as convenient as other transactions. They also created the click-to-pay structure. They created other convenience and safety structures, tokenization, the passkey, 3DS so that credit card transactions were even safer and different from the PIX transfer because of charge back and logistics security. So this adds lots of complexity here. At the other end point, you'll start to dematerialize the POS. So any smartphone is able to receive payments. Meanwhile, and we're talking about 2023, we had the wallets being created. For physical assets, they existed 5 years ago. But here, they started being used online as if they were bundling credit card payments so that we eliminated friction, and we didn't have to register with every shop, with every store. And of course, again, the PIX transfer was heavily and quickly adopted. Now turbo ahead and in a year, this is what we could expect. At the top left, you have the digital wallets. In the past, this was a [ wrapper ] heavily focused on debit and credit cards. Google is spearheading this in Brazil. They are starting payments. And we have a dotted line with PIX and open finance so that you can associate your PIX account with a Google Wallet so that you can make a purchase with the wallet without the copy and paste to go to a bank. And then PIX is also turboing forward. And with open finance, you're able to open up lots of different opportunities, which are not located for by the original PIX. So we have recurring PIX payment, the automatic PIX payment, which was launched and disclosed yesterday, it's going to go into operation in 9 days. We have the Smart PIX. So we're going to use the same individual entity number with different banks, and we have other options here. Something that has not been launched yet, which is not a payment method, but will have impact on payment methods is the [ Drax ] structure framework. So payments will only be released after checking for a contract, and this is going to make for that to be easier. For cross-border payments, we are also going to be using crypto. We didn't use this asset for transactions a lot, but this now plays a role with stablecoins. And finally, we have WhatsApp. WhatsApp was already dipping their toes in payments, but they have a very good initiative now. They are now more payment friendly. WhatsApp Pay is a series of APIs and standards so that you have another big channel, which is going to lead the way here. And we were picky. There are other things that we didn't include here. Our take-home message is that this is going to be heavily accelerated. Now this has a pro, a challenge and a responsibility. The pro is that from a client's perspective, this is amazing. You have so many options. You have better payment methods, you have less friction, and you can pay for things however you want, whenever you want. As soon as all of these technologies are available, it is undeniable that we're going to have a better structure here. And I was talking about adoption for B2C, and this is very quick in Brazil. Brazil has a good appetite for testing out and adopting new technologies. This is applicable to social media and also to payment methods. However, life is not easy. If you look at most businesses, they like the idea. They say great automatic PIX transfer. This is going to reduce my costs with bank slips. I'm going to spend less with collections. I'm going to have better conversion rates. Maybe my accounts receivable are going to be lower, so my working capital will be better. So overall, businesses look at payment methods according to this lens, which is good, real whenever you implement it properly. However, there is a big gap in real life because this is very complex. We needed 10 minutes for an overview with this slide, let alone to implement all of this. And at the end of the day, there is a mismatch here. DDA transfers have been around for 15 years, and we still have lots of bank slips, which are not DDA based. The PIX transfer has been around for 5 years. And even though the population has happily adopted it, in some industries, 50% of payments happen with bank slips. Wallets have been around for 6 to 7 years, but only a minority of people use it. Now why is there a mismatch? This is not hard to understand. You have to integrate this to your structure, to your CRM, to your accounts receivable, to your accounts payable. The ecosystem we mentioned is not a one-stop shop. You have 6 to 7 players that you have to organize so that everyone is able to play this game properly. Most companies don't have an army of 300 to 400 people with the right know-how who are doing research on this all the time. And if they do, this may not be the best CapEx allocation to do it in-house. So this slide was created by myself as an individual. I'd like to say that the future is here, but it's not well distributed. We have businesses that came to be from 0 digitally. a digital journey is their core. They don't have as much legacy. And this is their core business. So they are literally betting billions to be early adopters and to come up with a beautiful digital experience. However, if a user is getting food delivered or getting an Uber ride, they are also paying for their power bill. They are also topping up their phone. So this is a mismatch. I'm not going to say NASA, but sometimes you have a SpaceX-like experience. But sometimes you have companies that see the value in that, but are actually trying to manage the complexity. So this is what we call the digital payment gap. Things are available, but only a few businesses are able to enjoy that. For 99.9%, probably 99.99% of companies, there is a mismatch. So you go from a SpaceX-like experience to a very crude experience, which is not as easy and not as friendly. This creates friction. But on the other hand, it also creates opportunity. I'm going to talk about why we believe that we are one of the best players to do this. Think about this. We have new standards. Users have given us their vote of confidence. They've shown us what they adopt and what they want. We also have industries that want to make clients happy. Many of these industries are client-centric. So at the end of the day, they need help to close the payment gap. When we go vertical, we pick some companies. We understand their pain points in depth. We understand these standards in depth, and we figure out how to offer a best-in-class experience from a digital native to the other 99.9% of the economy, which are not enjoying that right now. This is close to what we want to achieve. Now why us? Think about what is happening in this ecosystem. Technologically speaking, we have this game which is fast paced, and we're trying to play the game at the same time in a collaborative way. But think about offer or think about supply. Supply is focused on the players to the left, which have played a fundamental role in making payments universal. A few years ago, one of the biggest transformations with credit cards was that we had horizontal acquirers. Most of them came from spin-offs from banks and some of them were independent. I say that they are horizontal because the solutions that they offer could be working for a beauty salon or for a university with 20,000 students or a telecommunications with thousands and thousands of customers. The solution is actually very similar to all of these, and it is up to the client to put something together for them. Now this is a competitive industry. We want something good for both businesses and customers. So margins are low. And what we see companies doing is to reverticalize their operation, not as we do with industries, but as in reintegrating their payments with other banking offers like recurring credit and payments. They were seen as independent in the past. But in the past few years, we've seen consolidation. Many of these companies are being reintegrated into their previous banks or they are becoming something else like PagBank. Now they have credit for small retailers. And this is good. This is valid. This is also competitive for a mid-market. These companies are going to keep their relevance as a minimum common denominator. This is a clear movement. In the past, we would clearly see where the market was headed. You had one big player, they would pivot, they would sell their software. I don't need to name names. But this was the strategy for a big horizontal guy, and it was hard for them to implement it. So the rest of the industry is trying to look for specialization. One of them was really successful. It's not our case. They found a problem for a niche for companies operating in many countries. So if you are a SaaS business or a digital distribution business, you operate in 80 countries, you have no legal entity in all of them, but you have to collect money in these countries. So you have global payments or cross-border payments. And at the end of the day, you have good margins because you tackle one pain point for the players that are more commodified with lower margins because they are unable to do it. So it is one way of becoming specialized. And finally, as we have a more sophisticated market that is very fast paced, players at the left are no longer the priority. Solutions are very similar to what we had 6 to 7 years ago because the value that they offer is different. These players are not going to be experts on one single country, not as intensely because there's coverage and they want to make it easier. And we have other companies that are going to choose their specialization, either it's going to be a macro specialization and they're going to be leading the payment industry, and they're going to close the gap. So a company is going to take 6 months or a few months to adopt something instead of 10 years or they're going to become specialized by understanding very specific problems. We see ourselves here as specialized payment providers. And we believe that we are very well positioned to close this gap. Of course, we're not the only ones. Other companies are going to use other segments, and they're going to do great things. And we're going to be able to cross this metaphorical bridge that we're talking about. I'm almost wrapping up, and I'm going to be handing it over to Felipe Goldin. In the next session, you're going to see a product. This product is aimed at organizing this mess. Through our solutions, we're going to help some specific clients, for which we know their pain points, and we're going to help them accept every payment, maximize conversion and simplify management in a cost-effective way or at a minimum, we want to unlock more value than costs so that choosing us as a partner is an obvious choice. Finally, this is an ecosystem, right? And with an ecosystem, of course, we need partnerships, we need collaboration. I know this is common place. But this is a penny that dropped for us 3 years ago. It really makes a difference for us to have a close conversation with the other links in this chain because at the end of the day, we want to be the glue that brings it all together. Let me give you a few examples that made a difference in our journey, and it's going to make a difference forward. We were very passive with the credit card brands, but now we're closer to them. We have Mastercard. They are great partners now. Felipe Goldin is going to talk about tokenization, security, 3DS. This has been very useful because now we have access to where the ball is going to. So when we have a new technology, we're ready to launch. This is also helpful for us to communicate tech benefits to the market. So being close to these players has been key for us to be able to push this boundary forward. We also have 2 big techs, which dominate user devices. We were passive with them before, but now we're very close to Apple and Google. Google is here. They are partners of ours, and they actually show up 2 times here. Google owns the most used device in Brazil, Android. And it is the wallet that reaches more people. We are one of the first players to accept biometric PIX payments, which was just launched inside Google Pay. This is an example that Felipe will be showing. Without this kind of partnership, we would have access to that in 3 years, most likely. Now acquirers are here as a different kind of player, but actually, there's lots of symbiosis. As this industry gets more mature and specialized, I don't have to do the basic service at scale because they do it really well. They have scale, they are competitive. And they don't need to be experts. They don't need to do it all on their own. So we have a relationship with many of these acquirers. And it's not only about having a partnership for supply. In some of our cases, we have verticals that are also their target, and we are actually tackling them together. It's not about the competition. When I go with them, I make sure that they are the acquirers behind us, and they make sure that I can go into new accounts with existing relationships. Another company, which was not as obvious, is Meta, and now they are partners of ours. They own WhatsApp. We're going to be discussing WhatsApp later. And WhatsApp is really connected to improving relationships between end users and companies and how to have the best payment experience between companies and individuals. We've been working a lot with Meta. We want a better integrated payment journey, and we want to be an official partner to be able to deliver that with autonomy. And everything we are discussing here is based on the cloud. So we have AWS and Google. We do not necessarily have a partnership here. But with the PIX world, we have a regulated structure with the Central Bank, and this is what we do. All right. I'm 1 minute over, and I'm going to be handing it over to Felipe Godin. In summary, we have all of these trends, but now we're going to go down deeper. We're going to see the backstage and how it works under the hood. You're going to see what the products are and you're going to see the user cases that were not possible in the past without these products. When João Stricker speaks, he's going to be talking about the addressable market and where our solution fits. It is our market view added to the pain points that clients have that lead us to our product strategy. This also gives us a clear way forward. We see our serviceable addressable market. Goldin, please go ahead.

Good morning. I'm so happy to be here. We're going to be discussing our payment platform called Bemobi Pay. This is a very broad platform tackling every stage of the payment process. Today, we're going to zoom in, in 3 elements of this platform. We have the smart checkout. This is when users actually interact with the platform. It is their point of contact with the platform. We have payment orchestration, which is under the hood. This is invisible to users, but it enables many of the things we're going to see today. And finally, we have our youngest daughter, Grace. Grace is our conversational payment platform based on WhatsApp and new LLM models. So let's start with the Smart Checkout. The Smart Checkout was created to close the gap that [indiscernible] was mentioning. We have high expectations from clients. Consumers expect a smoother experience when making payments. We've brought the bar up. However, payment complexity has also gone up. If a company is not specialized in payments, it is harder for them to actually meet user expectations. So through the Smart Checkout, it is easier for companies to deliver on the experience that people expect to have. They can support every payment method in existence and every future payment method. We're able to deliver a superior experience through the white label approach. There's also consistency among different channels. So this is the white -- or actually, this is the omnichannel approach for checkout. And throughout this experience, we're using AI to make payments simpler and to make for a better process. At the end of the day, this leads to better conversion rates, increased customer satisfaction and the outsourcing of all this complexity, not only the investments that are required to put this journey together, but also operational complexity under the hood so that we have a very robust payment structure. Let's watch a clip of what the checkout experience is like, and then we'll be able to double-click on some of the aspects of this product. [Presentation]

Now let's zoom in some of these solutions. First, we have an omnichannel and customers, who are more digital, are already used to interacting with these businesses through different channels. Right now, we have a Smart Checkout, which ensures consistency and security in every channel. To your right, we have more traditional channels like POSs or TOTEMs. These are used with a physical credit card. Then we have mobile channels. We can use them on a browser or on the phone. So you have the mobile web or you have apps. And you may also have the available interface, Like notebooks or tablets or even desktops. And finally, we have more conversational platforms with WhatsApp, SMS and RCS. You also have integrated chatbots here. And a different interface here is during service when somebody calls a call center or when a collection agent approaches somebody. And at the end of this process, we finished the transaction in one of the previous channels. What we usually witness is that companies are focused and specialized on a part of this experience. Sometimes they are specialized on physical terminals. Some of them specialized on the mobile checkout experience or they may specialize in collection. What is special about Bemobi is that we are present in all of these channels, and we're able to offer a consistent safe experience for our partners. Next, what's interesting about this platform is that a checkout is usually embedded in a website or app. And checkout needs to work as the app or as the website. So with the smart checkout, we have a white label offering. This means that this is fully, fully adaptable not only to the brand of our clients, but also their visual guidelines, their color. It fully integrates to their websites and apps. Through the Smart Checkout, we can offer every payment method we have right now, the main payment methods. And according to our indicators, we see that it does make sense to offer more options to end consumers. They will be able to pick the one that's most convenient to them, and this has a very good positive impact on conversion. To our left, we also see that it's not about the number of payment methods. We're using AI and machine learning with historical data. So we're offering the payment methods that leads to a higher likelihood of a better experience of a seamless experience with higher conversion rates. And finally, we can combine multiple payment methods. So not only multiple payments, but you could mix up a card and the PIX transfer. We see that in reality, this leads to higher conversions. Usually, you have denied transactions because of the limits of credit cards. Usually, we have lower limits in Brazil. So when you have multiple payment methods for one single transaction, you see a considerable increase in the conversion rates for these transactions. Now let's zoom into a more recent issue. Think about your purchase experience in apps. We're usually interacting with very big companies. They invest heavily in their care or customer service apps for end users. And we've noticed that there's so much frustration here. They invest so much. They think about every single detail. They think about the font size. They make sure it's a seamless experience. But with the payment methods, they didn't have lots of options. They usually use checkouts that are created for the web and not for apps. So there's a clear gap between the experience up to the point, which was seamless. And as of the moment, they use the checkout for the web in an app. So these companies would try to control the experience a bit more. They were trying to develop a purchase experience. They would look at a payment structure as an API, something that is in the back end. And as Pedro was showing in the payment map, we have lots of complexity right now. So the companies that chose this option as they try to evolve start noticing that the complexity is not only in the back end, but it's also in the front end. You have wallets, Google, Apple, Click to Pay, 3DS, the open finance system, PIX, biometrics. So there is a lot of integration effort required at the front end, and these companies would have to develop this from the bottom. This is why last year, we decided to build a new version of checkout, a version that specializes in apps. So for most native apps for iOS or Android, the Smart Checkout will be available. We also have the reactive nature and floater technologies. This is a much, much better experience. We have SDKs that are very easy to integrate. These SDKs were made by developers for developers. So we are focusing on developers. We're focusing on their experience when integrating SDKs. So based on the SDKs and the checkout, we are actually able to offer a much better experience specifically for apps. You have lots of layers of customization. Our goal is to offer an experience that is in line with what our original app offers or what the original host app offers. Here, you see an example of an app that was done really clearly. It's clean. You have big fonts, you have good spacing. And it's clear that there's a transition between the original app and the payment platform. Look, this is the payment. When they click here, we see the Smart Checkout. This is aligned with their visual guidelines. It's very seamless. And it removes the complexity of the purchase process through a simple integration. There's another advantage to this new product, which is based on the SDK integration. We're able to have better integration with the OS with the native system used in the phone. So you have a better experience with the wallets, which are heavily integrated to the OS. You can also use the biometrics in your phone, which are key for the biometric PIX, for instance. This is another example of something I mentioned earlier about how abstracting payment methods through a checkout or an SDK will also prepare you for the future. So Pedro mentioned that the Central Bank in Brazil launched a new PIX modality in Brazil, the biometrics PIX on open finance that was back in February 28. And Bemobi has approached this in 2 ways by purchasing a license to become an initiator or through our partnership with Google. Through this partnership, we had easy access to this new PIX modality through Google Pay. So we integrated this into our SDK and made available to our customers who were already using SDK. So they only had to update the version and the feature is now available for the customers who adopted the solution. So this is a top-up example of a cell phone carrier. The customer chooses how much they want to top up and they click on the button to continue. And the pop-up will be shown offering the best payment methods for that context. The end consumer will then choose to pay via PIX, biometrics, PIX on Google Pay. And then the SDK will open the Google Wallet. In this case, the new bank account is linked and then they validate the biometrics and the payment is done. The top-up is available on the customer's mobile right away. This is a much more convenient process. You don't have to copy the PIX code, open the banking app, log in, paste the code, pay and then go back to the app to see if everything runs smoothly. Here, everything happens within the telco app, a very seamless experience, an effortless transaction for customers who have SDK. And finally, here, I want to share with you a new feature that is under development, and it's part of our road map for Q4. This is part of Bemobi's obsession with reducing friction. Although we already offer very convenient offers, Google Pay, Apple Pay, B2Pay, there's still a group of users that would prefer to type their credit card in the form. And this is a friction. It takes time. You have to type the numbers. The expiration date. And this happens only once for each merchant that uses the checkout. When they come back to pay like a utility bill or school tuition, then there is no friction because then the credit card has already been saved on Bemobi's wallet with the tokens, cryptography and the whole PCI that makes sure the transaction is safe. But whenever they interact with the website of any establishment that uses the checkout, then they will have to type their credit card number again. But in recent years, we've seen that as we increase our coverage working in new industries. We started with telecom, then utilities, and now we are also in education. We can see the same user moving from one sector to another. This is what we call a multi-industry user, and we can measure how much we can reduce friction if we could offer them a chance to reuse the information they have typed earlier. Of course, this is in a safe way where they're opt-in, when they are logged in. But the goal is to remove this step and decrease friction when typing in a credit card. We have Stripe and PayPal already using this with interesting results, and our team is now working on this. And we see that this indicator of how much the user moves from one company to another is quite high. So we can estimate friction reduction gains by doing so. But our team is working on this. We plan to launch this in Q4, and I will later be able to share some of the results with you. Now let's talk about the Payment Orchestration. This is running in the background. It cannot be seen, but it has a key role in our payment architecture. And that's why it's here right in the center, representing our brain. I will show you how this works with some examples. So as the name says, this is the orchestrator. It communicates with several other elements. And one of the elements is our payment gateway. Its role is to integrate with the other players of the payments ecosystem, either the acquirers or the brands, the wallets, credit card brands, the PIX and open finance ecosystem, the banks because many of them also have closed loops solutions. And it's through the gateway that we integrate with all of them. But it's the orchestrator that will define when to use one or another, when to apply a new attempt policy or a fallback policy, but I'll give you further examples later. And it also communicates with our wallet. That's where we store the credit cards with cryptography and user preferences. And finally, here, you can see our installment options, but I will zoom in to this in a future slide. And at the foundation of everything, security and prevention, a few years ago, we invested in an anti-fraud solution for security and prevention of frauds. So my first example is a spot payment. So a one-off nonrecurring payment. This is a recent case, a natural case. We started a relationship with a customer that already had a solution, but they wanted to evolve the experience that they delivered to end consumers. They wanted more payment methods, they wanted to enable recurrent payments, and they wanted to offer installments. Since they already had an experience with an acquirer, then I mean, spot transactions would be sent to this contract where Bemobi acts as a gateway, but the processor of the payment itself is the acquirer. So this is a credit card transaction, a Mastercard. It was routed through the orchestrator that performs this dynamic router based on the characteristics of the transaction. So we set up that spot transactions that are not installment payments would be preprocessed by prior commercial conditions. So they had this contract with the acquirer and the commitments. So BYOP means bring your own processor. So Getnet would process and settle the transaction in this case. And the other types of transaction, either if they were not supported in this model, so wallets or installments would be processed by Bemobi in its role as a sub-acquirer and payment processor. And internally, we have rules that aim to optimize cost. In this specific case, we set up the platform so that transactions that were to be paid in 2 to 4 installments had to be processed with our relationship with [indiscernible] as a sub-acquirer and the cost would be sent to the merchant. So the merchant wanted to offer installments without creating any burden for the end consumer. So they would absorb the cost. But in this case, you have the exclamation point, a warning sign here in yellow, and it didn't go through because of platform instability. There were many links in the chain and the orchestrator plays a very important role here. They decide to retry the transaction, respecting the retry policies of the payment methods. And then the transaction is converted in a transparent way to users. And in certain decisions, we route the transactions that are to be paid in 5 installments or more to Cielo. We have this contract with -- we are the sub-acquirers here with Cielo, and I'll give you further details about how the installment price is covered by the end consumer here in this case. But here, the transaction did not grow through. And in our practical experience, we know that in many cases, it makes sense to cascade from one acquirer to another. This creates a small increment in the conversion rates, but this is a way for you to add value. And so we routed this to Getnet as a secondary acquirer and then the transaction went through. So this is an example of how you can optimize transaction cost with dynamic rules at the orchestrator. In addition to optimizing cost, you also create more resilience to the whole payment process. And this example focuses on recurrence optimization. Our goal here is to make recurring payments invisible and seamless to users. One of the ways we work to make sure there is transparency is to use several payment rails represented here by the horizontal line. So the first is the credit rail, the second is the debit rail, and finally, the third is the PIX rail. In 9 to 10 days, the Central Bank of Brazil will launch a new modality, the automated PIX, and we are prepared for this launch, and this will be a fourth rail that can be combined with the others, as you'll see here in my example. So in this example, we have a typical customer. They want to include one of their bills like monthly school tuition as a recurring payment. So they enable this option on the checkout and then in February, the next payment cycle, everything runs smoothly. The payments made in a transparent way for users. But then so in February, the consumer has lost the credit card. I don't know, for any reason, he has to get a new credit card. This is very common, and it's a nightmare for any company that works with recurring payments because the user usually leaves your base. If the problem is not solved, the LTV will be lower. Actually, 2 weeks ago, I lost a credit card, so I had to block it. And now I have dozens of services coming after me to try and update my credit card information. But anyway, we do have a partnership here with the credit card brands that provide more robustness to the solution. We have the tokenization solution that will give us the information that the credit card has been replaced and the token that is stored in our wallet is replaced and the user doesn't have to do anything, and this is a very transparent movement. And so in the March payment cycle, the transaction is performed in a seamless way, although the user replaced their credit card. But then in April, when we try to make the payment go through, then the transaction fails. And in this case, it's because the credit card limit has expired or it is over. So in this case, we do an operation a few days earlier. But in this case, the customer couldn't pay, and then the orchestrator decided to keep on trying. There are many mechanics for the retry. So the customer was out of limit, but then the credit card limit was renewed. And so in a transparent way, the payment happened without any intervention of the end customer. Now in May, once again, the customer had no credit card limit. So the decision of the orchestrator here was to change payment rails from the debt, of course, we acquired prior consent, the user had to opt into this. So the customer had no card limit. This would be his preferred payment method, but he allows this fall back to another payment method and the transaction was successful. So a story that would have multiple failures here actually run smoothly. And finally, in June, well, this guy is out of luck, he had no credit card limit again. So his credit card was not accepted. The orchestrator tried all the other modalities, but still was not able to make the payment go through. And that's when the orchestrator decided that in order to continue, they would have to get in touch with the user using the different communication technologies, either e-mail, SMS, but mostly WhatsApp, and Lucas will give you more details about this later. And so we offer alternatives here, you can either replace your card or pay by [ PIX ], and the goal is to make sure the transaction will go through. So if you register a new card here, that's the card that will be used for future transactions. So what we can see is that when we add up all of these different mechanisms, we can provide greater comfort to end consumers. And this has a relevant impact on the conversion rate of recurring payments. When we look at the basic that doesn't use all of these mechanisms, the conversion rate is around 70%, 7-0. But when you use all of these mechanics, you can increase this rate by 20 percentage points in absolute numbers, which is quite relevant. Now the last topic here I want to address is the installment payment modality. That's what we call flexible installments or Settle Now, Pay Later. We focus here on bill payment. So we're talking about essential services, recurring bills, like those bills that end consumers will try to avoid as much as they can, being in delinquency, being overdue because they could have their power cut out, for example, and the traditional installment possibility that we see in retail in which the merchant will cover the transaction cost. If we were applied here to these cases, since these are recurring bills, it would create a distortion, a negative incentive of postponing payment at all times, and that would create a great burden for the service provider. But on the other hand, for consumers, it makes perfect sense. They need some breather so that if they make the payment installments up to 24 installments, making the most of the credit line that has been preapproved for them. So this is low friction. They can even combine multiple credit cards, so multiple credit lines that are added up when you make a payment. And so they're not overdue. And from the point of view of companies, since this modality passes through a small fee to end consumers, then we can make the payment to the service provider earlier. And we're talking about large companies with a huge cash flow. Interestingly, power companies have on D+1, so the day after the bills are due, 30% to 40% of the bills have not been paid yet, and this impacts the -- so this is a benefit for end consumers, and it reduces delinquency as well as collection costs. So for this modality, we decided to start with that in the power market, which is the most essential service in people's lives. So electricity -- the adherence was great. That's how we got into the utilities market. And more recently, we offered the same solution to other industries such as mobile Internet, broadband and payment of monthly school tuition fees. Now I'd like to invite Lucas Zardo to talk about Grace, our conversational payment platform.

Good morning, everyone. Before I get started, just a curiosity, our last Bemobi Day was 2.5 years ago on the exact day that Pedro and I started dating, and I became a Bemober. And then we got married and now we are in a happy marriage, right, Pedro? Anyway, joking aside, we are going through a revolution in the way we interact amongst ourselves and with the brands and companies that are part of our daily lives. Studies say that 85% of our interactions are solved via messages. For many of us, I would say the rate is even higher. On certain days, I see myself spending the whole day talking on WhatsApp, Slack, Teams. So a lot of what we do on our day-to-day lives is based on conversations. So we are going from a world between -- that the relationship between people and companies is also on messaging apps. The interactions are more and more conversational today. We do things by talking to companies. And when we talk about conversation, in the Brazilian market and in many of the markets where we operate abroad as well, you talk via WhatsApp. How many people do you know that are not on WhatsApp every day? Very few, right? Maybe you cannot even recall anyone. So WhatsApp is ubiquitous. It's everywhere. It's in our personal and in our professional relationships as well as in our relationship that we have as a consumer with a brand or a company that is a service provider. So this is a communication channel that has come to stay. This is the dominant channel here in Brazil and abroad as well. When we look at WhatsApp as a tool or as a solution, we see that there has been a major evolution of this product as a platform to enable companies to create relationships with their customers. And we work with Meta. Thank you for being here, by the way, in building a product that Meta calls WhatsApp Pay. This is a payment product embedded in our day-to-day conversations on WhatsApp. And WhatsApp is becoming a main actor in the set of tools or solutions of Meta itself. Mark Zuckerberg in the last earnings call of Meta mentioned the importance of WhatsApp as part of Meta's solutions package in the B2C market. And we see companies either being founded with WhatsApp as the main channel or adapting to this channel in order to build tools that are used on their day-to-day like Megi and Mailbank, this is a digital bank and their main communication channel with their current account holders as WhatsApp. And OMI, they focus not only on B2C but also B2B customers, and they believe that all of them can use WhatsApp as the main channel. And so management ERP embedded on WhatsApp. Now on the other hand, we also see a major transformation, as Pedro said earlier. AI is no longer just a hype. Maybe a bit, but this is already a real solution being converted into tangible products that we can see from the launch of the main LLM tools that we saw in recent years all the way to 2025, in which we reached the main inflection point in which an LLM will talk to you, and it will feel like a human talking to you. And it's now affordable to do so. It's no longer expensive to have a machine talk to you and you think that you're interacting with a human being on the other side of this conversation. So the convergence point has been reached. We can now create products and services based on AI that are affordable and transformational when it comes to quality of conversations and quality of interaction with your customers. So when we put all of these 3 spheres together, these 3 worlds, WhatsApp and digital payments, which is our DNA, our core business. And a few weeks ago, we lived a remarkable moment in our journey of how we look at the platforms and technology. And I said that this is a Shakespearean moment. There is a tide in the affairs of men that will lead on to fortune. So yes, this is one of the waves we're surfing, one of the major waves. This is the moment in which we will put together platforms, technology, our experience, what we do best to develop a product. And this product is called Grace. This is our new Bemober in the team of products and solutions that we deliver to customers. Grace was born 100 days ago. It's 100 days old. We put together our best team of engineers to create the best market solution. The team is fantastic. But without AI, this would not have been done in 100 days. We are making the most of those 2 waves that Pedro mentioned earlier. The first wave is how we use AI on a daily basis to become more productive in our routine and extract more value from our routine tasks. And here, we are also applying AI. AI becomes a product, a tool, a solution and will address a natural problem right there in the field with our customers. I will show you a brief video about what Grace is already doing and what a conversation will look like on WhatsApp. And since to create videos of this type, AI is not that good. It was more work for our team to create the video than most of the solutions that are included here. Now why is Grace special? Why is it important in our portfolio of solutions? First, Grace is vertical. Pedro was talking about this earlier. We see this vertical structure as 2 different fronts. It is vertical because you're putting together different parts and pieces of software to deliver a way more appropriate solution to tackle the problems that our clients are trying to tackle and that the clients of our clients are trying to tackle at their endpoint. And it's also vertical because we're specializing in the industries we already work with. This is not a product to cater to every single business out there. This is a product created for what makes sense for us for telecommunications, utilities, education. We know these industries in depth. We've delved into them. We understand them well. We know their pain points, and we know how to tackle their pain points with real solutions. Secondly, Grace was born to boost our DNA, which is payment. It's created as a tool that enables payments to go even further. As Pedro was saying, you can go north and that's the channels where the clients of our clients are interacting and using payment solutions. So Grace behaves as one of these channels, maybe one of the most relevant ones for the next few years because we have this trend of using conversational tools. This is how people interact with brands and companies they buy from. And finally, being a latecomer is not only -- not always an advantage, but we do believe it's an advantage here. Using AI for this product is something natural for us. Our team uses it on a daily basis to build tools. We're always thinking about how to use this tool as a product solution in an embedded way. We have trends that are transformed every single day. We have new LLM models every single week. Sometimes within a given week, we have 2 different launches from big international players like OpenAI, Anthropic, Google, Meta. So when you use them, when you really understand how these models allow for the creation of other things, then we're able to apply and break down these -- this is real. Of course, we have a design layer here, but this is a real example of what we're doing right now with this product that we put together 100 days ago. We're processing millions of messages every single day. Somebody may be having a conversation right now with an AI agent. And many of these clients actually believe that they are talking to a human being. So in this hypothetical case, this client is about to watch a match. However, they ran out of data, they forgot to pay their bill. They wanted to stream the match, but they were unable to have access to it. So they start a conversation on WhatsApp with the company that provides them this service. It is a conversation, just a regular open text situation as if they were chatting with another person. Now this agent is going to understand where they're coming from. They will understand what's happening. This is a pain for this client. It's not a general situation. So we need to think about impact. We need to think about the pain for this client and how to tackle it with a real solution. Agents will have to identify this client if it's the first time they have access to this channel, and they need to find a solution that is going to solve their problem. Again, you see this is a conversational message. They are not just providing us with their individual number. They're saying, please, it's urgent because they want to see players playing. Now our agent is able not only to understand the context of this problem and lead to a solution, but we see the building blocks of our solution. Here, you're connected at the South border. You're connected to billing, CRM, ERP right with our clients. So you have access to the information of the outstanding bills. Based on our payment intelligence tool, we also know that they have a card with us, a Mastercard ending in 1234. So we know that given the situation and given the past history of this client, they would probably pay this bill installments. So we have the full picture. We're ready to solve this problem with 2 or 3 messages. We have a quick solution so that this client can solve their problem and then everyone is happy. And of course, this is a Brazilian client. So they are having a conversation via text, but Brazilians love audio files. And here, they say that, yes, they would pay with their credit card, 4 installments is fine. AI is going to now switch to the audio mode because if clients are talking to us by voice, then we have to adapt. And we're going to also answer by audio. So the AI knows that they want to pay in 4 installments. They're going to prepare the payment structure, and they're going to give the option for this client to pay their bill. It's another building block of our solution. This is a native component that we built with Meta. This is done with WhatsApp Pay. So in WhatsApp Pay, we have an information card with the total for this bill, how they're going to be paying the payment method for installments, and they just need to click Pay Now. They click Pay Now, payment is successful, and we charged for installments of BRL 32.5. Now we have a happy client who is ready to watch a soccer match. And as we receive this payment, we also go to the South border. We go to the billing structure of this telecommunications company that we work with, and we let them have access to their Internet data package again. So now they'll be able to stream the game. This is just a sneak peek of what Grace is able to do. If you're in Sao Paulo, you're going to see this happening when you use basic services that you pay for at your home. You're going to see this in the next few weeks for one of your basic utility services. And this is just a glimpse. There's still a lot that we are building in real time. We see new solutions every single day. AI is making strides every day. We are co-building tools with Meta all the time. And this is a product that could really boost not only this channel, but also our whole ecosystem. We'll go from the north border in direct relationship with clients to the south border in direct relationship with the systems used by our clients. These are some of our products by myself and Godin. Now Pedro was talking about trends in AI and payments. We were showing you what we are making available to you in a very concrete way. Now Joao, our CRO, is going to bring it home with the market opportunities that we're going to look into more heavily in the next few years. We're going to see how we'll be able to extract lots of value from these products and from these market opportunities as business opportunities.

Hi, can you hear me? Good morning. I'm so happy to be here again. As Lucas was saying, I do have something fun here because I'm going to show you how this is going to turn into revenue. I'm also going to show how this is going to lead to our growth at Bemobi, which is accelerated right now and which will be even more accelerated. Let me borrow from a known framework from McKinsey, the Horizons framework. I'm going to split our types of growth into 3 big horizons. Of course, this has been adapted, we have time horizons here, and we have no new necks. But everything here is actually starting at the same time. It's not a sequence. But they do have a different time line. Each one is now. This is the industries where we are already active. This is the country where we're very strong with payments. And I'm focusing a lot on growth here. I'm talking about the 80% to 90% that Pedro was talking about. We're going to be growing that in Payment Solutions. Of course, we're going to be growing with other solutions, too. But today, in our breakdown, we're going to be focusing on the most accelerated growth that we expect to have. So in H1, we have what we do right now in the industry is where we're active right now, basically telecommunications, utilities in education in Brazil. We're going to go into details, and we're going to get to figures of what we believe is the potential of what we're doing and why. Our second horizon is our new activity, industries and new locations. We've proven our theory for telecommunications, utilities and education, but we have other similar industries, which could have big potential. We're going to start with them. Also, we'll be very strong with our solutions in Brazil, and we may find other locations for these proven solutions. And then we have our third horizon for revenue growth. This is cross-selling between SaaS solutions and payment solutions and vice versa. I'm going to go into details about all 3 horizons. We're going to break down the first one the most, but you're going to clearly see what we see for this business for the next 3 to 5 years vis-a-vis our potential for growth. Think about 2021. This is a slide that Pedro was using. When it comes to this horizon and to opening up new industries, we're not as traditional as service businesses or SaaS businesses or tech businesses. Usually, companies start at the bottom with smaller clients and then they grow in the industry. We are a high-touch business. We work with the biggest benchmarks in an industry. It usually takes us longer to make the cell. It costs us more, but it also gives us lots of learning. It turns us into a benchmark, and it makes us reach these industries in a more structured broad way. This is what we did with telecommunications. We had Tim, Claro, Vivo, and now we have ISPs in the long tail. Also with utilities, we went straight to the big players. And this is also happening with education. We're working with big groups like Salta and INSPIRA, which are big for middle education. This is what we're doing for these new horizons. Here, you have a spoiler of a brand that we haven't officially announced for utilities. We're actually mentioning it for the first time today. You're going to get more details soon. So this is our playbook. It's like a domino effect. You get the big players and then you sweep the industry with a proven solution. I know there's a lot of information here, but this is important for us to explain how we calculate and how we see the potential for growth. We usually pick a big important segment. So this is our TAM, our total addressable market. For instance, utilities or electricity. And as you go down one level, you have the total addressable market for your clients. So it's a share of this market. So for electricity, we have around 70%. So 70% of the TAM is available to us. And then we have a third layer, which is really important. This is what's available to be serviced. Even if I am in a huge market, I won't be necessarily able to service all of these clients for many reasons, maybe because of the competition, maybe because I'm not the only one in this scope, maybe because of the speed of adoption. We estimate our SAM, which is the serviceable addressable market or the serviceable available market as the B2B. And we are actually reaching B2C. We're reaching the end customer, but oftentimes, they have corporate clients that won't be serviceable by me. And finally, we have our penetration. This is my current penetration, how much I've captured from this market. When we do the math between the new clients that I could acquire and the penetration that I could increase, then we have a growth potential. So in H1, we're going to talk about telco, utilities and education. We're going to see where we're at, what we've reached, the size of the market and where we think we could be. Let's start with telco. This is the first industry where we started working with payment. And historically speaking, it is our biggest presence. So we have mobile with prepaid and postpaid plans, and we have fixed broadband. When we look at these segments, starting with prepaid plans, we have a yearly segment of BRL 20 billion in TPV. We're having technical difficulties. [Technical Difficulty] We apologize for having power issues. We just need to make sure everything is powered by the generator. So, let's take a quick 2-minute break. We'll be back soon. [Break]

Are we all set? Okay, Nicholas. So I was talking about horizon #1, which is the growth that we could have in our industries focused on Brazil, which is the country where we have more activity for payment and SaaS right now. So let's start with prepaid plans. We have BRL 20 billion in TPV, and we're always measuring the potential in TPV. And of course, then we turn it into revenue as our clients are in this TPV depending on the services we're providing them with. But TPV is our reference here. When we talk about prepaid, it's BRL 20 billion focused on 3 operators: Tim, Claro, Vivo, where we have 100% of operations. So we have 100% for the segment for Bemobi. There's no carrier here that we're not working with. Now with SAM, I can't say that I'm going to work with 100% of top-ups in Brazil because they have brick-and-mortar stores, they have banks, they have wallets. We're able to capture some of it. So from the accounts that we have with the experience that we have, we believe that we could reach 25% of the SAM or the S-A-M. And we have 46% of the 25%. So we have BRL 2.4 billion out of an industry of BRL 20 billion. We have no other clients to conquer here. We have the 3 biggest players. So if we're able to achieve our SAM, that's going to be a 2x growth. So our potential for top-ups is to double its size for Bemobi within 3 to 5 years. This is when I capture the available market. Now for postpaid plans, we have a similar market. We have an BRL 84 billion, and we have 98% of this market because some small carriers have postpaid plans that are not controlled by us, but the biggest ones are with us. And the SAM is different because it's about adoption, digital payment methods. It's still very traditional. They pay bank slips, they pay traditionally. And we are capturing clients here, but we have more space. So our SAM for this market is 15%. Right now, I have 32% of that with BRL 3.9 billion of the TPV. So our potential for growth is around threefold. And something different happens with the broadband. This is a very scattered market when it comes to its players. We have 3 big blocks. We have the biggest operators operating in broadband or the biggest carriers. We have big ISPs, and then we have over 15,000 smaller ISPs. We try to work at a higher level. But here, we have a broader range of clients. Right now, out of BRL 76 billion, we have 16% when it comes to our penetration. We believe that our SAM is 20%. This is the available market that would be serviceable right now. And right now, we are catering to 8% of that. So we have BRL 0.2 billion here, and our potential is to multiply this by 30x as we acquire new clients and as we do better. Now in utilities, we have something different here. We have a breakdown of clients. Of course, I'm not going to name names, but this is an actual breakdown because we want to show you how different the level of maturity is for our services within these utilities. Of course, this has to do with the time and the number of services that we've been offering. So with electricity, we have BRL 212 billion, and we are present in 68% of it. For the SAM, the available market, it is much, much smaller. Let me tell you why. We still have monopolies here. This industry is not as focused on novelty or digitalization because basically, there's no competition. So we end up focusing on clients that are delinquent, that are far ahead in the collection roller. So the SAM is going to expand as we have a more open, more competitive market. But right now, our potential for the SAM is 8%, and we have a 16% penetration. What varies here is the level of penetration that we have for these accounts. Let me show you 2 examples. We have a high potential for growth here. Company C has a TPV of BRL 30 billion. We are addressing 45% of the available market. And this was one of the first companies we worked with. We developed it well. They have all of our services, everything that Lucas and the team were showing has already been deployed. Now for company A, which is similar in size with BRL 35 billion, I only have 0.4%. So if I actually bring all of these utility companies to a similar level of the first company we worked with in this industry, we have a huge potential for growth here in our revenue. And when we look at the overall potential of increasing penetration and also addressing more clients because we still have room for growth in the 68%, then we're talking about an eightfold increase for the BRL 1.8 billion for the utility industry. Now when we talk about education, we have 2 breakdowns here. We have private basic education, which is K-12. This is BRL 120 billion right now. This is a very scattered market. Yes, we have the biggest group of K-12, the second biggest group of K-12, the fifth biggest group of K-12 in Brazil and another 300 schools with smaller groups, but we are still only at 7%. We have a big long tail here. We have lots to explore. Here, we understand that our serviceable available market is 35%. Our current TPV is BRL 0.8 billion. So we have a potential of 7x. With higher education, we can look at the current penetration, and we have our first client, YDUQS. It represents 9% of this industry. So look how different the structure is here. We have 7% in K-12 with hundreds of clients, but for upper education or higher education, we already have 9% with one single client. It is a BRL 58 billion industry and our SAM is 35%. We don't have specific numbers for the current TPV because it all depends on our penetration. But you can imagine the potential of this market for us because we're just getting started. So let's see some final figures for Horizon 1. For telco, we have BRL 180 billion, and we have BRL 6.5 billion, which is 3.6%. We believe that in upcoming years, we have the potential to reach BRL 24 billion, meaning 13%. For utilities, we have BRL 212 billion. Right now, we have BRL 1.8 billion. Our potential is BRL 14 billion for upcoming years. For education, we're still small. We have BRL 0.7 billion and 0.5%. So we have the potential to multiply this by 15x. This is our Horizon 1. This is something we can measure more clearly and accurately based on what we believe is out there for us. Then we have Horizon 2. Here, we have 2 different lines. First, we can open up new industries where we are already active, and we can go to other countries. So let me talk about the new industries first. Here is the spoiler that we saw in a previous slide, and this is now official. We're starting to work with SABESP. This is our first client in water management. By itself, it represents 26% of water distribution. It's a BRL 59 billion industry. We're just getting started. Lucas was saying that clients in Sao Paulo will see Grace in their basic utility services, and this is one of them. We're launching it. We're already operational with SABESP. We don't exactly know what the SAM is here. It's probably close to what we have for power for electricity because of market conditions. But there are specificities, so we need a bit more time to clearly understand the potential here. Our second line here, and we still can't disclose any clients is private health. This is a huge segment in TPV. But it's important to make it clear, we're going to actually service a subset in this industry. We have lots of clients we won't be able to work with, but we have individual health care plans, and this is why we estimate a 10% SAM. So we're talking about around BRL 30 billion. This is probably the addressable market for us in this industry. We're also taking into account life insurance, auto insurance and condo bills. This could be very important for us with high values. As I was saying at the beginning, we cherry pick what we want to do, not only when it comes to solutions, but also size. We started with the biggest, around BRL 200 billion each. And now we're migrating to other sectors where we have BRL 50 billion to BRL 60 billion. Insurance is really big, but we're only able to work with a subset of it. There's another lane of growth for the horizon #2, which is countries. We could go to new locations. We chose 3 countries where we're going to be using payment services associated with SaaS. We're focusing on LatAm. First, we have Chile. We already have Enel in Chile. Chile is a well-developed country when it comes to payments. For telco, it is basically a postpaid market. They don't have lots of prepaid services. And electricity is distributed privately. We decided to start with Chile with electricity because it is a big market, as I was saying. And we are now looking at other things that could be good for payments. Our second country of focus is Colombia. It's different from Chile. It is well developed when it comes to digital payments with lots of wallets and local types of payments, but it is a prepaid country for telco. And electricity is mixed. Half of it is public owned, half of it is privately owned. So we're working with prepaid plans. We're taking small steps, but we are starting our activity here in Colombia. And we're going to look for opportunities with postpaid plans should they be interesting for us. And finally, we have Mexico. Mexico is very different from other countries. It is a cash-based country. We have credit card and debit -- of course, there's growth here, and it's basically prepaid for the telco industry. 85% of it is prepaid. Electricity is publicly owned. So we're going to replicate the solutions that we have for top-ups in Brazil, the BRL 20 billion market that I showed before. These markets could even be bigger than Brazil because it is basically prepaid. When we look at this block of countries. What we see is a potential that matches Brazil. If we add up Chile, Colombia and Mexico, we can consider yet another Brazil to operate in. And that's why we are stepping into these geographies. Now looking at horizon 3, the cross-sell horizon. We talked about our SaaS solution. Pedro talked about was Waves and Grace. These are solutions that we either developed more that we acquired and brought into Bemobi and we have our payment expertise and that all creates cross-selling opportunities. Agenda Edu was already penetrated when it comes to SaaS, it's already many schools in the education market, and it's already a channel for us to go into payments there. So it was a payment cross-sell within SaaS. And the opposite also happens. We have a good footprint in telco and utilities of -- terms of payments, and we have opportunities of cross-selling Wave Solutions as well as Grace that you saw in details earlier, our conversational payment platform. And a great example of how that works is Sabesp. Sabesp is our water utility. They're with us in payments, with Grace and Wave. We are working on channels and digital engagement, conversational payments and the whole payment structure for them. So that's our third growth horizon, where we create new revenue lines with the customers we already have with SaaS solutions. That's all. I hope I gave you a clear view of how we're growing. My goal was to give you details of Horizon 1, which is more tangible so that you can understand where we want to get. Of course, I gave you a high-level view, but I'll give the floor over to Andre to walk you through our financial results. Thank you.

Good morning, everyone. It's great to be here with you once again for our second Investor Day. As Joao said, my goal in the coming slides is to tell you about the evolution of our main financial metrics since our IPO back in February 2021. But before I dive into these metrics, I would like to share a piece of information with you. This matrix may seem complex at first with these waves going from one side to the other, but this is a 3D building block with interesting information about how the Bemobi's revenue is made up, who we sell to, where the revenue is generated. And if we look at the information that is released to the market, we know that 60% of Bemobi's revenue comes from Brazil. The other 40% came from abroad, but there is a balance between the revenue generated in Latin America and the rest of the world, as you can see. And when we break down by service line, the 2 main engine growth -- growth engines of the company are digital payment and SaaS, respectively. Digital payments accounting for about 40% of the revenue, SaaS, 20%; microfinance, 10%; and digital subscription accounting for 30% of the revenue. So like Joao and Pedro said 70% of the payments revenue of Bemobi comes from the telco segment. Another 20% comes from utilities and 10% from education and new businesses. So we can see that the revenue comes mainly from Brazil predominantly. And when we look at the first quarter 2025 earnings results, call, we mentioned that we had internationalized this solution taking those to Enel in Chile. And the results have proven to be quite promising. And we have great expectations about rolling this out not only to other utilities, but also other telco companies. When we look at SaaS, we can see that there is a certain balance between the revenue generated in Brazil and in Latin America. But the main partner as the telco companies in these 2 geographies. So this is a more spread market in the different business lines, not only utility but also education as well represented here. When it comes to finances, as we always said, this is a service line with 2 major components, advanced payments and micro credits, voice and data to serve not only the Brazilian market, but also countries in Latin America and the rest of the world. And the data monetization service line that serves the financial industry mainly in Latin America. We're talking about Mexico and then we also internationalize the solution to Colombia. And finally, the digital subscription line. If you remember well, this revenue started out in Brazil. So Brazil is the main market for many years. And due to the maturity of this offer, Brazil has been losing relevance in the whole, and this has become a predominantly international type of revenue focused there in Asia, but also growing in other countries of Latin America. So after this introduction of Bemobi's revenue build up, I want to focus now on the main challenges that I as a financial manager and had at Bemobi try to address. I basically have 4 plates that I try and balance out. And our mission is to support and contribute to the company's growth agenda, but doing that in a profitable way, generating cash and shareholder return, of course. So when we look at the financials scorecard time horizon from our IPO to the end of 2023 and adopting a more critical assessment of our performance, I would give us an average score for growth. I'll give you further details of why in the coming slides. But Bemobi has always grown in its history. It faced some hardship at the end of 2022 and throughout the year of 2023, we generated questions from market agents about the real ability of Bemobi growing. However, not only the profitability and cash generation variables did well in spite of all this adverse scenario, Bemobi was able to deliver increase profitability and increase conversion of [indiscernible] that's why in -- my -- our own assessment, I would say we got a good score here, when it comes to these 2 variables. However, when we look at shareholder return within this time frame, I would say that we did not live up to the expectations. When we got listed back in February 2021, the macro scenario was favorable, interest rates at 2%. Many people went -- many companies went public. And curiously, up until recently, we did exceed the price of our IPO. If we adjust for earnings in a way, we could be considered a good performer as compared to other companies that got listed at the same time. But we definitely were below our expectations when it came to shareholder return. The good news is that things are improving, and I'll give you now more details about why that is happening. When we look at revenue and EBITDA growth, since our IPO back in February 2021, we had been delivering growth. And in 2023, as I said, we faced major adversities because of the migration of Oi customers, that's something that started the previous year and also the Russia Ukrainian or 2 very important geographies and that hit Bemobi's capacity to deliver growth. And so there was a certain skepticism in the market about how we would be able to deliver growth. But after that, we started to communicate this, and this becomes even more visible when we look at our last quarterly results, that were released. We have 7 quarterly results in a role with growth, either from the perspective of revenue or EBITDA. We have been accelerating our growth base because of our operational leverage here in EBITDA. And in the last 5 quarters, we also see that the growth has been accelerating in a year-over-year comparison. When I look at net income. Among the financial metrics, I would say this is the best performing metrics. We've been growing 36% a year since our IPO, and we see a similar pace growth in cash generation. And the growth was even faster when we compare the first quarter of '24 to the first quarter of '23, and the first quarter of '25 to the first quarter of '24. We accelerated growth from 16% to 28%, and we also improved our EBITDA to cash conversion indicators. So except from some individual POS acquisitions to support this growth that my colleagues talked about, we believe that CapEx will grow a lower pace than EBITDA. So that's why we see this acceleration into cash conversion. And this becomes quite visible when we look at our cash position. Since our IPO, we reached almost BRL 600 million at the end of 2024. And this is combined with interesting perspectives for 2025, which made our managers comfortable to approve a new dividend policy. Now looking at the shareholder return metrics. I just want to remind you that Bemobi has already returned BRL 320 million to its shareholders, of the BRL 200 million were paid out in earnings. The first tranche of BRL 58 million was paid a bit over a month ago, and there's still BRL 142 million to be declared and paid out in the coming quarters by the end of 2025. So our payout ratio was lifted from 25%, which was the minimum to 100% at the end of last year, and we believe that this will continue throughout 2025. At today's prices, we're talking about a dividend yield of the outstanding share that still needs to go into our guidance of 9%. About buyback, we bought back 8 million in shares of our company, about 9% of the total shares and BRL 121 million, and our swap operations is still ongoing a bit over 2 million shares, accounting for 3% of the total shares and BRL 44 million at the current price. So we're talking about BRL 60 million that can be returned to our shareholders potentially. So my main takeaway message here is that at the end of this process and because of these 2 levers, we're talking about BRL 0.5 billion, considering the current market cap of the company, that's about 1/3 of our market cap. And of this amount, about 60% was done from the end of 2024 up until today. So there is still a lot of value to be captured here. Now looking at the capital market, we see that since we released the 2024 results and published the new dividend policy, the market reacted positively to the news. And we increased the volume of the Bemobi shares that are traded about 83% after the release. And of course, this was leveraged by the appreciation of our shares and ADTV growth of 123% and we grew 4 to 5x more than this indicator for transactions and ADTV. Now when we look at Bemobi performance on B3 year-to-date, to the end of May 2025, we see that the Bemobi shares appreciated about 50% outperforming Bovespa and SmallCap and 20 percentage points. And you might say, well, now it's too expensive. But when we look at the end of 2025, this forward-looking view, these are buy-side metrics, the company is still relatively cheap, especially when we look at our peers, not only in the SaaS industry, but also payment specialists. And in practice, the market has valued our recent operational performance. So this represents a repricing opportunity of our shares. Now if we look at the most recent dimension and applying this financial scorecard analogy here, I would say that we've been delivering our historical growth once again and we have a promising expectations for 2025 and beyond. So I would say that we're doing well when it comes to growth now. When it comes to profitability and cash generation, we've been able to sustain the profitability levels -- at high levels, and we can still improve this. And when it comes to shareholder return, I would say that we have improved a bit, but this is still below what we expect to deliver. We believe that we can optimize our capital structure and other variables. And as I said in the last slide, I think that we can still value Bemobi's share here a bit more. Having said that, I would like to thank you once again for joining us. And now I'd like to turn the floor over to Pedro for his final remarks. Thank you.

Hi, everyone. Well, we're out of time. We're already running late, so I'll be very brief. This has been a long presentation, and we wanted to have this different format going into things that we usually don't go into to give you more visibility. And our company has a great capacity to observe the market and transform itself. We went from a game payment company to a multi-sector payment company. And we implemented this strategy in the last years that gained momentum. We have some conservative customers that made the decision of continuing with us and that was well thought of that this has been giving us a more optimistic perspective that Joao included here in his growth prospects. AI, well, this is not a hype. We're going to be talking more and more about that. That's something that can drastically improve productivity. And the landscape of the payment market, I mean, for small companies, I'd say this is more of an opportunity than a threat. And we believe that we are well positioned to gain more than lose here because we know that some value will be destroyed here, but we are well positioned to make the most of the tailwinds, so to speak. And something we didn't say, but I would like to mention is that M&A can be hard to generate value, but we have a good DNA when it comes to M&As, but this is not a mechanism to bring in new revenues, but actually to bring in new capacities and to go into new segments. So these are assets that, in our hands, can be multiplied and expanded. So part of our capital base I mean, we want to give you better returns. We want to optimize our capital structure without impacting the nature of the M&As that we do. We intend to continue very active, and we want to be able to share results news with you in the near future. About the scorecard, Andre gave us a good assessment, although it was a bit critical. By far, I mean, in our technological deals, if we compare to our peers that went public at the time. We were the best performing companies. But that's not good because if I -- as an investor, had put my money in CDI, I would be doing better, right? The other we were celebrating, oh, we went back to the same share value. Yes, okay. But if you had put your money into CDI, you had made more. So we have to improve this. That's the goal we have. So even with the new prospects with a CDI of 14% to 15%, we would still need another year to exceed CDI returns. But we hope to get better at these 4 dimensions that we showed you in our scorecard.

Well, since we exceeded our time, I don't think we are going to have enough time for Q&A, I mean, we do have some time for Q&A, right? [Operator Instructions] Maria Clara and then [ Luis from XP ]. Is that right?

Can you hear me? Congratulations on your presentation. I have 2 questions here on my side. The first is about the capital structure, Andre said that they are studying an transaction opportunity. So can you give us a bit more color into that? And about the broadband market that is quite fragmented. Can you tell us about your go-to-market strategy in this segment? And have you seen synergies and challenges? What are the solutions that you have in mind for that?

About the capital structure in practice, that's actually quite simple. Since we were in the middle of a transformation, we did know for sure what the performance of the company would be. So in 2023, we thought that we had 2 vectors with a beginning, a middle and an end, pulling us down. So an anchor customer -- client that disappeared in 2 countries that accounted for 7% of the company together disappeared. So that was a new business that was doing really well, but the scale was small. And since don't know the speed of these 2 movements, it gives us some butterflies in your stomach because you don't know how much adjustment you need. And M&A has been an important instrument up until then, but we were a bit more conservative to retain more cash because since we didn't know how much would come in and the type of M&A we would do, we decided to be a bit more conservative. And one year went by, and we had more clarity on the types of M&A that we wanted to do, different sizes of M&A, but we'd like not to do ear-nout or [indiscernible] something that does not require a major upfront payment, so you don't put pressure on the short-term cash outflow, and we were generating cash which was good. So if you add these things up, we realized that we could maintain our strategy and be more aggressive in payout. That's why Andre put 100-plus there, because we can do a distribution going beyond 100 now because of that. but we don't want us to impact our growth opportunities. So we want to increase the payout and have a lower cash level, and this will improve ROE and other metrics as a result. Buyback is still an opportunity, but since it goes against liquidity, we're now going to focus on distributing earnings more than shares buyback. That was your first question, right? So the second question, as you noticed well, the broadband segment has different players up until recently, we were focused on the top 2 to 3 carriers. And it was not my chance that when we decided to acquire Lucas company, Lucas is back there, right? When we acquired this company, we were thinking about cross-sell because they had a SaaS solution, and they did something very similar to what we did with major telcos, but without doing that payment intermediation. So he created digital channels for small and medium ISPs with a service channel, this WhatsApp channel idea came from that, and they had a part to integrate with all systems and they charge the software fee for that intermediation with hundreds and hundreds of customers. And he found us and said, "Well, you do payments, I just SaaS. Maybe we can have a partnership." And we got excited. It was more than a partnership, and we decided to integrate the solution. So in that case, the go-to-market was facilitated because we had hundreds of ISPs for which we don't offer payments, we already offer SaaS to them. So that [ stalled ] ISP growth. I mean, it was literally 0 12 months ago. So the go-to-market is almost reverted. It's easier to sell SaaS because they have a better selling engine for small and medium businesses. And then you can just offer payments. And then you asked, why did we go to Agenda Edu? Well, ISP and schools are fragmented segment size is much easier for you to do the low-touch sales remotely. And then you just do the payment upsell. So depending on the segment, if it's more fragmented, you start with SaaS and then payment from our high-touch segments, we start with a more consultant approach and the goal is the opposite. So M&As, well, sometimes it's a way for you to get a very spread sector -- fragmented sector, and you start with a very good SaaS line, which is synergistic with payment, and this can become your go-to-market. If it's a market that is not our DNA with a high-touch sales and 10 to 15 customers. So that's what we did to address the fragmented markets.

Thank you for this opportunity, Pedro. This is Maria Clara from Itau. And Pedro, can you comment on your 3- to 5-year strategic plan. I believe that you have room for growth there. So can you tell us about the pace and the cadence or you have a major addressable pool? What is the priority of the sector? What is the growth phase that we can expect for the coming years. And also related to that, we know that payments has a higher margin. So can you help me explore the profitability trends in the coming years? Can you tell us about margin potentials in the future?

Excellent. I'll be really careful. As you know, we don't offer guidance. However, we did leave some hints on how we look at it in a realistic way. You know that on purpose, we dehydrated our TAM because it's so big, and we don't want to say it's going to be a 1,000-time growth. We are being very realistic with the SAM. So I'm going to answer your question indirectly. The SAM is actually addressable. Are we going to be able to execute on it? I don't know. It's real life. This industry, this market is not static. Sometimes you may have the competition doing the exact same. It's life, just like in any other industry. But our take-home message is that I don't think we should try and aim at 300 things to have a lane of growth. As Joao was saying, of course, we're going to do more because we want to accelerate growth. But we have tested offerings, and we could be able -- we should be able to grow 20% to 40% with this structure. Of course, we're subject to different variables. Are we going to have the restrictions on payment methods? Are we going to have a stress on the margin? Are we going to have more players that are not niche right now and they're going to compete with us. I don't know it's an efficient market. We're not living in a vacuum. What I would say is that right now, with the current conditions, we would be able to grow in the high double digits for this business. We have another part of the business that is going to grow less but it's going to be between 15% to 30%. This is good for Bemobi. So this is not a guidance. But if you look at what's going on with Bemobi right now and if you do the math, it's obvious. Of course, subject to external market conditions. With the margin, I think we're going to have a pro and a con. I wouldn't be very bold in imagining better margins. What is good is the operational leverage. When we go into 1, 2, 3 for lines and I scale it up, if I grow, I can leverage a significant part of the structure that we already have. Of course, we're going to have more folks with customer success and customer service, but we're going to expand the EBITDA margin as a percentage. So this is going to go up. And you have 2 things going down. And in my opinion, this is going to offset the previous effect. With these new changes with payment methods, we can't have favorites and clients are going to have their favorites, but not us. So we may have higher payments with some, but we're going to have a lower spread with fixed transfers, and that's okay. So we may see scenarios where the TPV rockets up and we may have a compression of the gross margin, but this is going to be partially offset by the EBITDA. So with the gross margin, which is 70 plus, depending on market changes, this could reduce a bit. Maybe this could fall by half. And I don't think this is a problem. We're going to choose this without thinking twice. Otherwise, we're going to be hostage to a capital structure that is not proper for the way this market is going to behave in the future. And with the operational leveraging, our EBITDA margin could grow more, but I think it would be foolish to grow it more because we have Horizons 2 and 3. So initially, in the first wave, we're not going to be seeing high profitability right off the bat. So to have acceleration at the company, you have a trade-off. We could make it lean. We could cut all costs, but we're not going to do that. So net-net, I think I should see the margin improving marginally with the EBITDA. Otherwise, we would leave growth on the table. For the gross margin contribution, this could be a bit worse even though payment is getting better because we're going to be using payment methods that are more massive, and it's a good trade-off. And we're trying to grow. This doesn't mean that we're going to be able to do it all the time with enterprise clients. You have a slight curve. And if you have the as you have [indiscernible] you have a step change. Sometimes we grow more quickly. Sometimes we go less quickly. But I think we're optimistic because in the last few quarters, we saw what's happening. We look at our pipeline and we say, well, according to regular market conditions, this is what we could expect. Nicholas, any other questions.

Congratulations to such a much, much better event compared to the previous one. I have a question about the work you're doing to keep this workforce, not only now but in the future. Right now, there's lots of competition. People are fighting for talent. And in the future, these folks are going to be considering that they may lose their jobs because of the increase in productivity driven by AI. How do you tackle this right now? And how do you see yourselves dealing with this in the future?

This is a great question. Of course, I have a bias. I'm an entrepreneur. So let me actually switch your question to something else. I think whatever professional, either Bemobi or other companies who do not learn how to use AI are going to be the first ones to be replaced. So this is what we're trying to convey in-house. It's tough. It's tough love because it's adapt and enjoy it or leave in a way that's the message. And it is a tough message, tough pill to swallow, but I think it was well received. I think in the long term, this is going to actually attract talents. If you're curious, if you're creative, you want to use AI and if a business does it well, people are going to enjoy this advantage. And then you ask, well, is this going to increase or decrease the number? I think for some roles, we're going to decrease the number of that certain role. From our repetitive tasks, and we don't have many of those at Bemobi because we're very digitized. Then we're going to have fewer positions let alone in the traditional market. However, there's going to be demand for more interesting work. We have so much ambition. If Bemobi had the ambition of being the same size forever, yes, maybe we can have 60% less folks in 4 years. But we want to grow by 10x. So I'm not worried about reducing our workforce. I think our headcount is going to go up. Of course, we're going to try to use AI. Holding our headcount is almost a pressure tool to ensure that we're going to use AI for that. But yes, we're still going to grow. I don't think this is a dilemma. And the fight over talent is what it's always been. What's good is that we're lucky in a way. Since we are at the leading edge since we're trying to get newer things, this is more fun work. This kind of talent wants to be a part of it. This is helpful. I think it is easier for Bemobi to bring somebody who is innovative to this kind of department than a client of ours because they are incredible, but this is not their core operation. So if we're able to attract the best talents, our candidates for a position are actually better than they were 3 or 4 years ago. So that's good. Nicolas, I think we are running out of time.

[ Pedro and Gabriel ] from Morgan Stanley. You did improve many things for the company according to the performance you disclosed. But from a foreigners perspective, you're seen as a small company. Is there anything that you're doing to actually draw more attention from these folks from abroad?

Well, this is a good point. If we want to be more [ acidic ], we lost the CDI to the exchange rate. So for foreign investors, if they came to Brazil with Bemobi in 2021 with the IPO the SELIC was different. I don't even want to think about the foreign exchange rate. It wasn't good. And if you look at it, our foreign participation is small. It is under 10% of foreign investors. However, on the upside, it more than doubled in a year. And this doubling is not our merit. I think this is a macro trend. You know this more than I do. If there's any kind of uncertainty in the U.S. capital adjusts and it reallocates to the rest of the world. So as other companies, we were able to serve this trend. Now looking ahead, it is as simple as gaining in scale and growth. There is no magic recipe. Of course, we go to New York, Nicolas and I, we talk to foreigners, we bring visibility to our business. But while we're small and we're growing little, there's no recipe. Maybe we could simplify the equity store in the company. I think this would be a good step. In our last meeting 2 years ago, we were talking about 4 reasonably different businesses. Today, we talked about 1 single topic for 3 hours. This may sound simple, but it simplifies things for foreigners because they look at a medium-sized asset in Brazil. And if they're able to put it in a box, it makes it easier for them to do business with us. Of course, we didn't change the company because of this, but it is an added benefit to what we're doing. Since we're focusing heavily on 1 single value proposition, this indirectly benefits every investor, especially foreign investors because in the time that they allocate to this research, if we're simpler, they can say, well, they're comparable to Stripe, to Edge, and to salesforce.com, and I do hope they compare us to these. And in practice, these are our peers in these markets. So having a simpler strategy, focusing on an industry that has more comparables could also be key and also growing in scale. This could help. But only time will tell.

Pedro, we have one last question from our online attendees. Bernardo will speak now.

Can you hear me?

Yes, we can.

Great. Congratulations to Pedro and team. We've had a 2-year gap since the last Investor Day, and we can clearly see that you've made strides, you went deep into the topic of payment, and the AI topic was really surprising too. I'd like to talk about the evolution of Bemobi with payments in connection with the segment of micro finance. Some of your theory, which hasn't been validated yet for micro finance is the company's potential as a digital wallet? Maybe you could make progress with micro credit too. You showed the evolution in micro payments. Isn't this connected to Bemobi's potential so that in the future, you're able to offer more thorough banking solutions. Does this make sense to you? or am I out of my desk.

Bernardo, I'm not going to sugarcoat it. I'm going to be straightforward. We usually joke around saying that we aimed for something, and we got something else. [ Tiaxa ] had a small projects working with scoring and telecom data. We had penetration in lots of carriers, so we were interesting -- interested in this solution. And we had good execution, but it's a B2B. So we don't offer credit. At the end of the day, we help companies offering credit like Mercado Pago and Nubank to use alternative data for the scoring model. So this is a good business. Yes, we do share synergies with it, but they work directly with the telcos, with which we already work. There's a sales synergy that is great. And there's indirect synergy as well, which I don't think is significant. Think about Colombia and Mexico. For us to think that a market is actually good, it needs to become similar to the Brazilian market because this is where we developed our solution for a perfect match. Think about what [ Joao ] said about Mexico. They have under penetration for credit cards and they use lots of cash. So if you have an offering working with alternative data for credit bureaus, and then we're going to feed this data into the biggest players for credit in our country and Nubank is one of the biggest players, and they are a strong partner of ours there. Great. Then this market could look like Brazil, and this is great, but it's like the wag -- the tail wagging the dog. So Bernardo, I wouldn't say that this business is going to become a wallet. We are not from a B2B2C DNA. We think this is different. We want to be focused and be good at specific things so that they can choose us -- big players can choose us for big operations. So this is an option. This is in our back pocket, but I wouldn't say that it's between our top 5 or 10 priorities today. Let's see where we're headed with our business. Of course, this is going to help the other operations. But I do believe in the wallet that Felipe Goldin was saying, this is similar to what PayPal did in the American industry. In Brazil, they didn't have the depth to do it. Stripe is also doing the same in the U.S. You're eliminating friction. You're literally talking to tens of millions of people. We have many clients going in and out all the time. It's the B2B model, and it's good for the end client because it eliminates friction, but it's good for whoever hires you too. Why do you use Mercado Pago? Well, because your wallet has been set up. If we're able to replicate that to my companies which do not enjoy that right now, great, but it's different from the B2C market, and we don't know how to tackle it well. This is the end of our Q&A. Folks, thank you so much. Of course, we shared way more than usual. Again, I would like to stress that this is not a guidance, but we are showing a look under the hood. We are telling you what we see for this business. And I can tell you that we are excited. The market has been responding well to us in spite of its complexity and dynamicity. But thank you so much for being here. It's been a pleasure. Enjoy your day.