Méliuz S.A. (CASH3) Earnings Call Transcript & Summary

[Interpreted] Good morning, and thank you for holding. Welcome to the Méliuz webinar for the fourth quarter 2022. I am Giovana Villari. I work in the Méliuz folks team, and I will be hosting this event. Our event will be carried out in Portuguese with simultaneous translation into English. [Operator Instructions] With us today, we have Israel Salmen, Founder and CEO of Méliuz; Gabriel Loures, Growth Director; Andre Amaral, Director of Strategy, Shopping and Data; and Marcio Penna, Head of Investor Relations for Méliuz. [Operator Instructions] Our material is available for download at ri.meliuz.com.br.

[Interpreted] Thank you, Jojo, and good morning to all of you. One more presentation of results. It's a pleasure to speak to you. Last year was a year of intense work, a different year, a year where we had to change our strategy throughout the year, ensuring that the company could become ever more efficient operationally because of the changes in the macro economy. It was a year where we truly complied with what we had set forth to do. The operational adjustments, of course, without disregarding the growth of the company as a whole in shopping and other business lines. It is important to underscore that when Méliuz carried out the IPO in 2020, we came as a company with strong growth, generating cash, and with an EBITDA margin very close to 20%. Even in the year 2020, in November, December, we made some investments and somewhat compromised the EBITDA. I'm referring to this because since the IPO, I have been harping on this. We like to work with a net in our hands with a control of our decisions, a control of the company. And of course, with the results that we are presenting, we're showing you that the reigns are carefully in our hands. We know what we have to do to bring the company back to a scenario of profitability of positive EBITDA. And what we have shown you is but the beginning of what is to come in fourth quarter. We see the tip of the iceberg, the more impactful results in terms of cash generation, breakeven. And throughout 2023, this is what we will see. And this is the reason why we carried out adjustments throughout last year. We have not stopped making these adjustments this year, many adjustments. And this has enhanced our cost structure, our operational efficiency. Additionally, as the cherry on the cake, we have a commercial agreement that we have held with BV helping us in operational efficiency, and that will aid in a bit. Our revenues, in the previous model, we did not have this in the short term for financial services. So the operational efficiency and a growing revenue and financial expenses with BV plays in favor of the company who has a mega cash to reinforce all this. I can say that perhaps one of the results that has satisfied me the most. It shows us we are on the right track is that in the last quarter of last year, we obtained BRL 1 billion. We were able to balance out our accounts, balance out our revenues, allow the company to grow despite our investments. Therefore, the year of 2023 is the year where we set off in a very positive way. Having complied with our duty in 2022 and complying with what we have said in previous quarters, we are able to grow our value proposition for users is incredible. Our partners are increasing their exposure in the Méliuz apps, and we have that engagement with users that enables us to continue growing with lower expenses and continuing on with investments. I feel extremely happy, and I'm very enthusiastic about the year 2023. I'm going to give the floor to Gabriel, Andre and Marcio, who will go through the presentation, and we'll speak more during the Q&A. Thank you.

[Interpreted] Well, thank you, Israel. Let's begin speaking about the shopping results in Brazil. About last year, of course, as an introduction, it's important to reinforce something for those who follow up on this. The sector in Brazil was highly challenging as a whole because of the internal and external macroeconomic scenario. We had a slowdown of 4% in the e-commerce industry. Despite this scenario, we delivered robust results. In Brazil, we had a drop in sales generation, but Méliuz grew 14% last year, delivering more than BRL 5 billion in sales to partners, and we did this with an increase in the take rate. This is the commission that we receive from our partners, which is the main message that we can observe here that Méliuz in the last 10 years and more recently, evermore has positioned itself as a mega strategic channel for our partners. Yes, we are generating sales, additional sales, acquisition of users. And even when the scenario was in our favor, we held important campaigns for our partners. In a challenging scenario, this becomes ever more important. There is a channel with a highly positive return and it pays off for the partners. We can see that our penetration in the Brazilian e-commerce increases 3% more than in 2021, showing the strength of our channel. This has been happening in our affiliates vertical where we received a commission for each sale generated. We also received this for Brazil shopping and other verticals were partner brands and partner companies paid to appear as a highlight in our app, in our site, in our communication, which is our Méliuz ads vertical, and you can observe the growth of 2022 vis-a-vis 2021 of almost 70% in that vertical. It's important to mention that the revenues of Méliuz ads are based on our net take rate. It refers to sales, and this is a publicity space that we have shared with our partners. Additionally to this, we are able to see not only the strategic strength of our channel growing more than Brazilian commerce and bringing in investments, we have seen the total take rate, but we have also been able to increase our profitability. As Israel mentioned in the introduction and some results releases, we reinforce that ability that we have of hanging on to the driving wheel and optimizing the investment of our partners and sales creating a better generation of users and sales, but of course, growing with profitability as our base. And throughout 2022, we can see our net take rate. The sales revenues minus cashback with a growth of almost 80% a growth of 2.3%. And when we look specifically at the fourth quarter, the jump was more than 2.2 percentage points when compared with the fourth quarter of '21, a gigantic leap in our net take rate for the fourth quarter '22 vis-a-vis the fourth quarter '21. Of course, in accordance with our strategy to increase profitability and of course, a success because of the macroeconomic scenario. We mentioned this in the results of April so that we could grow faster. And once again here, in full control this year, we have held back a bit the investments in cashback, and we have continued to grow more abroad, of course, but increasing our profitability as well. When we look at the results of all of this together, our Brazil shopping net revenue -- although we had a growth of GMV 14% in the sector, we put this together with our enhancement in take rate and less investments and ads. In this challenging scenario, we delivered a growth of 30% in our revenues, reaching almost BRL 250 million of net revenues for Brazil shopping. It's important to underscore in the second graph that we delivered all of this growth without depending on marketing expenses. Once again, this shows our control. The macro scenario allowed us to invest more in marketing in 2021, where we spent BRL 40 million to have a more rapid growth. But this year, once again, we slowed down a bit the investments in marketing -- 60% reduction of investment in marketing, we spent more than BRL 1 million a month last year on average, a very low and controlled investment, but at the same time, we were able to grow revenues by 30%. This once again reinforces the fact that Méliuz does not depend on growth for paid channels. We are able to acquire users in a very efficient way, and of course, in a very controlled way with these users. And the cashback expenses, as has already mentioned, we grew the revenue 30%. Cashback only grew 25% because we have been able to significantly increase our cash take. Now this ability to grow, although we're putting aside a bit our margin and cashback without the need for absurd investments, is summarized in this slide. Now the retention of our user cohorts or harvest, we have been showing this in a very consistent way, and the behavior of these cohorts has not changed. Since 2011, we have been adding groups of cohorts year-after-year. And regardless of competition and the condition of the segment, they continue to be faithful to our product because of our ability to communicate offers. We have products with more features with higher user engagement. And this has enabled us to grow since 2017 with a CAGR of 70% when we look at Brazil shopping, of course, without depending on robust investments in marketing, allied to our capacity to work with users. I now give the floor to Gabriel who will speak to us about what has happened in these first months in terms of cashback and our international shopping and the operation in Picodi.

[Interpreted] Thank you, Andre, for the floor. It is a pleasure to be here with you. I'm going to speak about what is happening internationally in terms of the shopping Picodi. Let's step back a bit and go back in the thesis that we set forth. We have more than 1 year with Picodi. We acquired Picodi in March of 2021 to transform the qualified traffic into a qualified traffic with recurrence and the identification of users. Well, we transformed the traffic of users that do not return to users that we are able to communicate with and return. We will be able to build up Picodi in 44 different countries with the cohorts that we have shown you here in Brazil. In September of 2021, we launched the pilot of the cashback in 9 countries. A little more than a year later, we have 1.3 million users registered in our platform. It's equivalent to what we have after 4 years of operation when Méliuz began to grow with cashback. And the differential is that we have this geographic distribution with users everywhere, and we can invest more or less depending on the e-commerce situation of each country. What is more interesting to discuss here is, why? Why did this happen? Basically, what we did was to leverage the know-how that we have built at Méliuz in the last 11 years, a know-how of product and technology, the more relevant products, how to transform the user's experience so that it will be very fluid and how to avoid the errors we committed in 11 years and invest in the right things. Besides the capacity that Méliuz has of communicating campaigns, showing the best features, how to launch products, allowing for a tracing of cashback so that our partners can gain something with a sale. Now we have done this with Picodi, and the managers who are working incredibly to scale this up. In the graph to the right, we launched the cashback in 9 countries and a web version without an app. Now this cashback was spread to 44 countries in a scalable way. And we began to launch features like crypto back in a very accelerated way. We brought the best we had at Méliuz to Picodi along with our team. If we could change pages, please? And that ability to generate registries speaks for itself. It reflects the capacity of activating everything, begin creating the cohorts and the value generated by these groups. In the fourth quarter '21 to the fourth quarter '22, in terms of total buyers, we had an accelerated increase, especially in the fourth quarter of '22, the GMV of the operation since fourth quarter '21 had a growth of 80% quarter-on-quarter and the net revenue followed a very similar sequence, growing 19% between the third quarter and the fourth quarter. This reflects the cashback operation of Picodi that is moving away from the legacy operation with discounts, and we'll be able to build cohorts that are similar to those built by Méliuz in 4 years, with the speed of acquisition and bringing in more users more than twofold more users than what we did in Brazil. This is an overview of our international operation. I will give the floor to Marcio, who will refer to our financial figures and the deal with the bank.

[Interpreted] Well, a good day to all of you. Thank you, Gabriel. Now basically, this slide shows you the financial performance of the company. And it's the result of what Andre and Gabriel have explained to us. Since the change of the external scenario, the macroeconomic scenario, we have changed the company in terms of its profitability. Of course, without neglecting growth. Here, you see the EBITDA and the net result of all of this. When we think about the CASH3 Group, ex-Bankly, we began with an EBITDA BRL 52 million negative in the fourth quarter '21 to reach an EBITDA in the fourth quarter of minus BRL 2.3 million. A very good news here is that the net result enabled us to revert the losses we had in the last quarters after the IPO. With the heavy investments we made, we are able to present of it for the consolidated results, excluding Bankly. The best news I can convey financially is that the cash burn of the holding company was BRL 1.03 million comparing the fourth quarter with the third quarter. The company, therefore, is following that footprint of maximizing profitability, generating positive cash and doing away with our cash burn. This is our focus for the entire year. Not less important, of course, we should remember that we have some financial points that will help us enhance these results. They're not contemplated in the slide because they did not happen in the fourth quarter of '22. We have restructured throughout the first quarter of 2023. These figures will be presented in the first quarter of the year. And we have room to further enhance the bottom line of the company. And obviously, the deal with the BV Bank will reduce the cost of the company in terms of financial services. It will be under the BV umbrella. This is not being presented in this slide that refers to 2022. But in the very short term, we will have a positive impact on Méliuz. When we analyze the bottom part of the bank, the result is somewhat worse nominally, but we also have greater profitability. And the results will come throughout 2023. To give you an additional example, in terms of how we're restructuring and facing this more adverse scenario. Our number of employees had a decrease of 22% since November of last year to February of this year. The quarter is not over, and we have a drop of 22% in the number of the Méliuz employees. We went from 455 to 357. So there are good news in terms of better profitability, margin and profit in the coming quarters of '23. If we could go on to the next slide, please? I would like to speak about the financial services, speaking about our deal with the BV Bank. We went through a test process with the co-branded -- processes text, went on for 2 years. It was very positive because we saw that our users wanted Méliuz financial products, not only the shopping but financial services from Méliuz. In somewhat less than 2 years, we were able to attain a TPV of BRL 7.1 billion in the co-branded card and have BRL 7.2 million recurs for cards during this period. We went through a very good phase after the IPO, something that was broadly discussed in the investment markets, making the necessary investments so that we could get to that more sophisticated experience that we like so much at Méliuz. We would produce our financial products in-house and begin working with the best possible users, giving them what they deserve. Given what happened in the market, we found ourselves in a position where we could not leverage our own product because of the credit risk, a deterioration of risk of credit in Brazil as a whole. And so we sought out alternatives, and the BV Bank could not have been better in this quest that we call the Phase 3.0. They can offer us the user experience, user retention and -- well, the best that the BV Bank can offer us the structure geared towards credit, the know-how of financial services, enabling us to act better in that segment. So we are now beginning a partnership that we have been announcing for the last few months, a partnership that certainly will make Méliuz an asset-light company, once again, taking away some of the pains in the financial services, and we will maintain the user experience that for us is of the utmost importance. And here, I would like to update you on a material fact that we published in December of last year. On March 8, last Wednesday, we held the general shareholders assembly that approved the changes in the bylaws and the poison pill clause. We have the election of Julio Cezar, nominated by Bank BV to work in our Board. We had the acquisition of the minority share of BV at 3.85% at Méliuz. Additionally, on that same day, we signed a contract to begin the offer of products and financial services with BV. We have already begun to operate this system. We have issued the first cards. Of course, they're still in a test phase. These are cards that are being used by the BV Bank and Méliuz people, but we're making strides very quickly in the short term to begin to offer our products to the market as a whole. Now this being the case, we will have remuneration in terms of the card, the activation and TPV. Besides, of course, having our cost moving from Méliuz into the BV structure. A bit of an outlook. Until the end of this month, we should consolidate the sale of Bankly. We're going through the final stages of approval. It will be a single strength of 5%. And some information that I can offer you now is that we still depend on internal approval. Everything points to the fact that the value received for the sale of Bankly will be paid out to the shareholders by Méliuz. And this will be, of course, informed to the market once we have the approved information. In 2023, we should have the Bankly regulatory approval, and the closing of the transaction and the call option that BV will have from the shares of the reference group along with what they have to do with minority shareholders. This call option began on March 8, the date of the assembly, and they have a final deadline of March 8, 2025, to exercise their call option. Well, with this, we would like to end the presentation. And Jojo, we can go on to the question-and-answer session.

[Interpreted] Well, thank you, everybody. We will now go on to the question-and-answer session. [Operator Instructions] The first question is from Ricardo from BTG Pactual.

[Interpreted] Congratulations for your results. You have shown in your results that Méliuz only had BRL 1 million cash burn for the quarter. At the same time, excluding Bankly, you had a profit of BRL 2.3 million. Without excluding noncash effects, we have a loss of BRL 28 million for the quarter, although other subsidiaries will burn cash. This difference seems to be quite broad. If you could help us work with a reconciliation and see what happened with the cash of Méliuz controlling company. How it compares to the results? And if you could give us more details on your efficiency plan. You have remarked that an important part refers to the adjustment in the number of employees. If you could give us more color? And if you could speak to us about the conditions underlying the agreement with BV, so we can think about how to model your revenues? And give us an idea of the costs you will no longer have once you enter that asset-light model, the cash of the company beginning with the first quarter of this year.

[Interpreted] Thank you, Ricardo, and thank you for the questions. I will begin answering the first question. The cash burn of only BRL 1 million quarter-on-quarter. And when you exclude extraordinary effects, which are noncash effects, the company had a loss of BRL 20-some million. Why was the cash burn only BRL 1 million? At least, this is my understanding of your question. We're comparing different things here. When we speak about the BRL 2.8 million. We're speaking of the consolidated Méliuz, excluding Bankly, when we speak about cash burn of BRL 1 billion, we're referring to the holding company only. And this helps us report the result of only BRL 1 million cash burn that does not refer to acquired companies. The equity balance and other elements respond for this BRL 1 million, an improvement in our market cap. I can break this down for you after the call, if you wish, look for the figures and the balance to inform you more precisely, but careful with that comparison. We're referring to the consolidated, excluding Bankly, when we speak about the BRL 1 million, it refers to the controlling company. So when we carry out that exercise that you're carrying out, you have to leave aside some things that are not very clear in the balance sheet, the equity balance, the working capital, and this could help us respond to your question. To answer your second question, we're going to hold Méliuz Day, very probably between April and May -- beginning of May. What we're doing with BV, our cost structure has changed a great deal as well as revenue structure. We're going to hold the Méliuz Day to inform you precisely in terms of our expectations for revenue, GMV, financial services and costs as well. The percentage linked to the cost that will be leaving Méliuz, how much or how far Méliuz will reduce its staff? I request a bit of patience for this. We have been enhancing our margin for some time. And in the first and second quarters, you will observe the adjustments we have made in-house. And in terms of figures for the deal, I would rather not anticipate anything. I would like to await Méliuz Day. Gabriel. I don't know if you would like to add something?

[Interpreted] Yes, I can remark on the efforts for operational efficiency. Since last year, and more intensely since the second half of the year, we created an efficiency committee. We have looked at all of the cost line items of Méliuz. I'm sure you saw this in the balance, in the cashback line item. We have carried out several exercises with third-party services, suppliers. And at the beginning of this year, we restructured our team, our personnel structure that is still not reflected in the figures for the fourth quarter '22. These are the main cost lines that we're working on in terms of efficiency. What has become visible is the optimization of cashback expenses. I'm going to give the floor to Andre to speak a bit more about BV. In terms of our asset-light model where we have all of the costs inherent to creating an accounts, sending a card. We're only going to work with the activation of cards, anticipating revenues that we would have throughout the years with these users. We have been working on this model arduously, and we want to ensure financial stability for both parties because of this effect.

[Interpreted] Well, I would like to mention some items to make them more helpable, more tangible. We will give you more details on Méliuz Day. In terms of costs, we're evolving to a model similar to what we had with co-branded cards, but with an improvement in experience. We are going to still incur upon the service costs, CapEx, of course, to have the card, the plastic, the issuance, the funding cost, of course. We're not going to be granting credit. We're not going to incur on the funding cost and the credit risk. And as mentioned by Gabriel, we're opting for the asset-light model, originating accounts, deposits for BV, originating healthy credit portfolios for BV, and they will harvest the results because of this user base that we're going to build jointly in the coming years.

[Interpreted] The next question is from Fred from Bank of America.

[Interpreted] I have 2 questions. First, the issue of cost, the call center that will no longer be yours, the relevancy of this. We want to understand the capacity of margins for Méliuz stand-alone in the long term. Secondly, the issue of financial products. This has already been mentioned. I would like to know if the partnership with BV -- well, it does have the asset-light model but does it have significant changes vis-a-vis the Pan Bank? If it will represent higher or lower cost at Méliuz stand-alone shopping. These are my first 2 questions.

[Interpreted] Well, I can begin answering. Thank you for the questions, Fred. I know you're very anxious to know the percentage of costs that we're going to eliminate from Méliuz and harness from Méliuz. Please be patient and wait for Méliuz Day. I am going to mention 1 cost, which is very clear, the cost of service. Our cost of service last year represented BRL 12 million to BRL 14 million. And this is leaving the Méliuz umbrella going under the BV umbrella. We will still be training people in terms of user experience. We are simply offering you an example of line items, of expenses that are beginning to be displaced to BV's umbrella. Now to answer your second question, Fred -- and what changes in terms of our previous partnership with Pan Bank? Yes, we do have some changes the co-branding partnership was carried out in 2018. We don't disclose values, but we do have a change in values. Perhaps the main positive effect is that we will generate much more value, not only for Méliuz but for our partner, BV, with each focusing on what they do better.

Now this is the crux of our relationship of this new regulation that we have created Méliuz and BV Bank to have better profitability from the users with financial services. We're beginning with the card, but of course, there are other products that are being developed and others that will be developed through time, joint products with BV. Now Méliuz will focus on what it does best, which is the user experience. What we have in the app, which is a unique app thinking of B2C, thinking of the user. And this will be transformational because the user will enter our ecosystem. It can come in through several accounts through their shopping. In the previous experience, the user experience was somewhat fragmented, and we did not hold the reigns of the financial product. Now we do have the reigns. Now as we add more accessible products for the user within the same ecosystem, and we have a good control of the reigns. We can increase value, increase the LTV of the users. What is more important, therefore, is that we go back to being asset-light. And we're adding a factor that perhaps is one of the most important, controlling the user experience, which is something we know how to do very well. We have shown you in the shopping and in the user cohorts. And we will show you our expertise in the evolution of products within the B2C scope of Méliuz. We will add more LTV and capture more effects throughout the year -- the years.

[Interpreted] Andre, Marcio, that was very clear. If you allow me one more question, go back to the issue of the offer. Is there a scenario where eventually the controller will not accept the offer of 50 during that term of 6 months or 2 years. We have a peak in interest rates. Is there a scenario where the controlling company could turn down the offer made by BV?

[Interpreted] No, well, the BV at present has that option. It is a right but not an obligation. And we are under the obligation that in case of exercising the cash option, we have to continue on with it.

[Interpreted] The next question is from Andrew Ruben from Morgan Stanley.

Interested about GMV in Brazil, what are your expectations for industry growth in 2023? And how do you see the changes in the competitive environment impacting the types of discussions and negotiations that you're having with the e-commerce platform partners?

[Interpreted] I'm going to answer in Portuguese, Andrew. We do have simultaneous translation. Thank you for the question. Well, the first scenario for GMV in Brazil is that it's, of course, impacted by the e-commerce scenario in Brazil. Last year, the Brazilian e-commerce had a drop of 4%. And in the fourth quarter, this drop was relevant as well vis-a-vis the fourth quarter '21. If we look at Méliuz specifically, we have positive expectations, a change in the profile of stores, our main partners. Obviously, Americanas is on the downturn, but we have seen a change of these users going to other players. We have been able to fulfill our proposal, which is to take the users to the best purchase options with the best cashback possible. And this is a scenario thinking as Méliuz in the year 2023. We have several proposals for e-commerce less ads, for example, generating additional value with exposure among our partners and increasing our share in some categories. Andre spoke about our 3% penetration in some categories, and we can penetrate some categories where we are not very relevant at present. This summarizes our vision. Of course, we have been impacted by the market as a whole and the behavior of e-commerce, but we're quite enthusiastic with the new possibilities and the retention of our cohorts that continue to buy year-after-year.

[Interpreted] The next question is from Mr. Matheus Guimarães from XP.

[Interpreted] If you allow me a question regarding the GMV of Brazil? There is a missed match between GMV and the revenue recognition. When we look at it in the fourth quarter, there is a slowdown of revenue in Brazil, somewhat greater than the drop in the GMV. If you could give us more color in terms of this. The second question, looking forward, you have already acknowledged your provisions coming from Americanas. If you continue to sell through Americanas, which is a scenario in 2023?

[Interpreted] Well, let's begin with the second part of your question. The rest will complement this. Regarding the Americanas, we had already realized this recognition disappeared in their creditor report. And when the entire problem arose, we took a pause in the cashback and suspended the partnership as we had no visibility in terms of how we could continue to receive from them, the teams continue to converse to eventually make it feasible to work as partners perhaps. This is a company that has had a historical partnership with us. Gabriel, if you would like to refer to the second part of the question?

[Interpreted] Yes. My understanding of the question refers to differences in revenue and the behavior of revenues. There is a mismatch between GMV of BV with the accounting revenues that are invoiced. Traditionally, we have a concentration of revenues that comes from the fourth quarter, and that is recognized in the first quarter when it is finally invoiced. This is what we do every year at Méliuz. And GMV, as Andre mentioned, comes as part of the revenue from Méliuz ads based on the absolute number of sales, and this impacts the differences between these 2 figures which are not proportional, but yes, they are related. Matheus, I would also like to add when we speak about provisions for the Americanas. Financially, we have accounted for everything that relates to the past. The fourth quarter and what we had that was still pending with them BRL 4.7 million, I believe that is posted in the release, does not contemplate everything, but accounts for 90% of the BRL 6 million or BRL 7 million that would be the total figure.

[Interpreted] And if you allow me another question, referring to Méliuz ads? The growth of that revenue will appear in the Brazil shopping line item where we should see a growth. Is that true?

[Interpreted] Yes, it will appear as a revenue for Brazil shopping, but it is not GMV. It will not appear as GMV.

[Interpreted] Wonderful. And regarding Americanas, do you already perceive and I know we're speaking about the fourth quarter, but we're very close to the end of the first quarter '23. Have you perceived a relevant difference of GMV because of that interruption of your partnership with Americanas?

[Interpreted] Well, we have 2 main points here, one that I have already remarked on the relevance of the Americanas in our business has been reduced throughout 2022, following a natural trend in the market, and was reflected in the results of Americanas before what happened, and their ability to hold special promotion campaigns to leverage their sales. Now this share of Americanas dropped considerably throughout 2022. And when we reduce the campaigns, we saw the migration of those sales to other players, department stores and other categories that also sell products that are sold through the marketplace and other members. We have observed this clearly during this situation and since the end of our partnership. This will be made clear in the results of the first quarter 2023.

[Interpreted] Simply to underscore something Gabriel spoke about most of the migration of the sales of Americanas to other partners. When we look at our GMV level that we generate every day, every week. And when we look at this, when we were still working with Americanas in the last few months, we're at the same level. This shows that, in fact, there hasn't been an impact from the loss of these partners that was very important in the past. We're quite saddened with what has happened. We had a partnership since 2011, and we're rooting for their recovery, of course.

[Interpreted] Thank you, everybody. At this point, we would like to end the question-and-answer session. I will give the floor to Israel for his closing remarks.

[Interpreted] Well, thank you, Jojo. Thank you, everybody. I think that Méliuz this year has entered the year more focused on few and better projects. And this ends up explaining why we have such high productivity even with a lower head count of 100 people less. We have prioritized better. We're focusing on projects that will add value to users and shareholders, enhancing our engagement with users. This has been the different mindset that we have, a great deal of efficiency, controls of all of the KPIs that are of interest to the company. And my feeling at present is very positive. We are in full control. We have the reigns in our hands, and we will be able to fulfill our plan. Our team is very enthusiastic with this. I'm very anxious for Méliuz Day. We will be able to convey more in terms of cost and speak about our orientation in terms of revenues. This is an event we will hold for the first time, but will be very important for the company. Thank you all very much. Have a good day.

[Interpreted] With this, we end the webinar for results for the fourth quarter 2022. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]