1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
CINT
Event Date
2021-11-10
Sector
Information Technology
Subsector
IT Services
Offer Range
$15.00-$15.00
Shares Offered
13.04M
$48.5B
Implied Upside vs Midpoint
Description
Our purpose is to unlock the potential in businesses, people and technology to improve their tomorrow. Our vision is to be the most trusted digital partner for the world’s most renowned brands while inspiring healthier, more sustainable and inclusive ways of working together and creating value. CI&T is a provider of strategy, design and software engineering services to enable digital transformation for the world’s largest enterprises and fast growing companies. As companies race to provide their end-customers with a digital-first experience, our highly talented multidisciplinary teams of strategists, designers and engineers bring a 26-year track record of accelerating business innovations through our end-to-end scalable digital solutions. Through our collaborative approach, we are deeply embedded within our clients’ organizations helping drive digital transformation in their day-to-day business operations and strategic thinking. We do this at scale with a global presence of over 5,000 professionals spread across eight countries. As a result, many blue-chip companies and fast-growing companies across geographies and industry verticals trust CI&T as their partner for digital transformation. In recent years, many new emerging technologies and market trends, such as mobility, cloud computing, artificial intelligence and hyper-connectivity, have revolutionized and continue to alter how end-users interact with their brands, forcing businesses to redefine engagement models and customer experiences. As companies across industries seek to transform their businesses, they require specialized engineering and creative talent to rapidly design customized, innovative solutions. Many companies and traditional IT outsourcing vendors today often lack the know-how and talent to implement these transformational changes at speed and scale. We believe this dynamic creates an attractive opportunity for a digital native company like ours to help companies rapidly adapt while meeting the demands of their end-customers. According to the International Data Corporation (“IDC”), the digital transformation services market is massive. While this market encompasses a number of distinct technology solutions, we focus on application development and deployment, consulting, technology outsourcing, and support of IT systems to enable enterprise-wide digital change. IDC forecasts that the total global digital transformation services market is expected to reach an aggregate of US$958 billion in annual spending by 2024, a substantial portion of which directly relates to the services that we offer(1). Born in the digital space, CI&T has been at the forefront of innovation delivering business impact by transforming ideas into reality. Our end-to-end offering starts by addressing our clients’ challenges and identifying opportunities where digital technologies can create value (Strategy), then iterating with multidisciplinary teams to create viable solutions (Design) and finally, implementing these digital products and platforms at speed and scale (Engineering). We believe this approach uniquely positions us to capitalize on the massive scale and continuous growth within the digital transformation services market. We serve our clients by organizing our delivery operations into autonomous units called Growth Units. Our Growth Units are industry agnostic and multidisciplinary, incorporating talent from across the organization to provide clients with holistic solutions. Growth Units are empowered to focus on the needs of clients and leverage CI&T’s centralized shared services platform for branding, human capital strategy and corporate learning support. Four to eight multidisciplinary senior leaders comprise an executive leadership team and work together to lead each Growth Unit. This structure enables our executives to actively manage their teams while staying very close to our clients. Within each Growth Unit, there are multiple teams of approximately 10 people dedicated to a specific client or project which typically include a project manager, designers, architects, data scientists, and developers among others (the “Squads”). Using Dunbar’s number as a guide, when a Growth Unit reaches a size of approximately 400 people, we split it into smaller units to ensure our organization stays flat, agile and collaborative. Our Growth Units are further supported by our PowerHouses, specialized teams with very deep digital competencies that help our clients remain up to date with the latest emerging trends and technologies regardless of their sector. By empowering smaller teams, we have found that our employees remain more engaged and entrepreneurial while we continue to expand our global reach and scale. Our approach has enabled us to attract numerous blue-chip companies, such as Johnson & Johnson, AB InBev, Nestlé, Google, Itaú Unibanco, Coca-Cola, LifeScan and Telefônica among many others. While focused on expanding our business in North America and Europe, we believe our deep roots in Latin America, especially in Brazil, benefit our growth strategy given the region’s massive size and heightened demand for digital transformation services. Our end-to-end solutions and collaborative approach allow us to establish deeply embedded, long-term relationships with our clients that in some instances date back over 14 years. We actively help our clients innovate through these trusted relationships while increasing our share of revenues, as demonstrated by our Net Revenue Retention Rate, which is calculated by dividing Net revenue, less Net revenue generated from new clients in a given year, over Net revenue from the previous year. Over the last four full years, our average Net Revenue Retention Rate was 118%. We attribute a great part of our success to our proprietary methodology based on three main pillars, all of which have environmental, social and governance (“ESG”) principles as a foundation: • Impact. Combines a results-focused strategy with client-centric design and technical mastery to deliver end-to-end solutions in short 90-day cycles aimed at improving operating and financial results. • People. We unlock our team’s potential by promoting from within and investing in individualized development plans for each one of our employees while creating an environment of diversity and trust. We have built a lean operation that helps us attract, keep, engage, and motivate talent. We believe this makes us an attractive company for employees and creates an environment that fosters long and rewarding careers, as evidenced by our strong levels of employee engagement and retention. We are currently recognized as one of the top employers in our sector by the Glassdoor “Overall rating” and “Recommend to a Friend” indicators, and over the last 14 consecutive years we have been certified as a “Great Place to Work” in Brazil by the GPTW Institute. From July 2020 to June 2021, our employee attrition rate based on voluntary employee departures was 12% (excluding employee departures with less than a six month tenure). • Learning. We manage the business and our people through an Adhocracy model, a decentralized decision-making process that promotes entrepreneurship and autonomy, enabling us to adapt and learn very quickly. We believe that the combination of Adhocracy and an attitude of being an “always learning” organization makes us unique. Our growth and delivery model is focused on bringing together multidisciplinary teams that gain a comprehensive view of the client’s challenges and strategic objectives. By leveraging our PowerHouses’ deep domain capabilities and vertical expertise, we support our clients through a multi-year digital transformation journey. As a form of recognition, our Adhocracy managerial approach was featured in a case study at the London Business School in 2020. We were founded 26 years ago in Campinas, Brazil, by Cesar Nivaldo Gon, Bruno Guiçardi Neto, and Fernando Matt Borges Martins. Today, Cesar serves as our CEO, Bruno as our North American President and Fernando as a board member, maintaining the same entrepreneurial spirit, culture, and energy that has characterized us since our inception. We believe that true innovation comes from a strong culture that is founder-led, diverse, inclusive, and promotes a safe working environment. We believe that this culture enables people from different backgrounds and experiences to share ideas, create solutions, and flourish in the workplace. (1) IDC, Worldwide Digital Transformation Spending Guide, V1 2021. --- Our principal executive office is located at R. Dr. Ricardo Benetton Martins, 1.000, Pólis de Tecnologia — Prédio 23B, Zip Code 13086-902, Campinas — São Paulo State — Brazil. Our telephone number at this address is +55 19 21024500. Our principal website is ciandt.com/us/en-us.
CI&T Inc annual income statement and balance sheet, FY 2022 to FY 2025, as reported in SEC filings (BRL).
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | BRL 2.2B | $447M | $439M | $490M |
| Gross profit | BRL 762M | $149M | $150M | $157M |
| Operating income | BRL 274M | $57.0M | $55.6M | $65.6M |
| Net income | BRL 126M | $26.4M | $29.5M | $40.6M |
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | BRL 3.0B | — | $526M | $550M |
| Total equity | BRL 1.3B | $292M | $280M | $309M |
| Cash & equivalents | BRL 186M | $43.7M | $56.6M | $47.9M |