Linx S.A., a leading retail technology specialist, closed the second quarter of 2019 with gross operating revenues of BRL 219 million. Gross operating revenues consists of the combination of subscription and consulting service revenues. In the second quarter of 2019, subscription revenue reached BRL 188 million, 14.4% higher than the same period of 2018 and equivalent to 86% of total gross operating revenue.
Linx’s net operating revenues were BRL 193 million, an increase of 12.8% when compared to the second quarter of 2018. Adjusted EBITDA reached BRL 48 million in the quarter, 19.3% higher than in the second quarter of 2018. Adjusted EBITDA margin in the period was 24.9%, while net income was BRL 12 million.
“Linx’s growth continued to be focused on increasing share of wallet across different profiles within our customer base, which continues to hire new services natively integrated with our end-to-end platform. The main trend observed this quarter is the increased propensity of retailers to become OmniChannel, which we serve through Linx Digital’s offerings through an integration of online and offline channels. In this quarter, OMS now has 11 clients at different stages of implementation following the signing of new contracts over the period. In this same context, the e-commerce platform reached around 1,000 active websites, with one of its main differentials being the offers of Linx Impulse. In addition, financial services offerings continue to grow, mainly supported by the strong adoption of EFT, besides the continuous increase of our portfolio of differentiated solutions and 100% integrated with other products we offer. In 2Q19, Linx Digital and financial services accounted for about 14% of recurring revenue each,” explains Alberto Menache, CEO of Linx.
Linx is a Brazilian company specialized in retail technology. Leader in the management software market, with 42.2% of retail market share, as IDC attests. All of Linx’s shopping journey expertise is transformed into key insights to achieve what retailers expect most: build customer loyalty and achieve tangible, relevant results. Publicly traded in Brazil since 2013 and in the US since June 2019, Linx has more than 3,000 employees distributed among its headquarters in São Paulo, 13 branches throughout Brazil and 7 countries in Latin America. To learn more, visit www.linx.com.br/imprensa.