Press Release

TOTVS surpasses R$1 billion mark in net revenue in the Q3, with growth of 26% compared to the same period last year

Bnamericas Published: Tuesday, November 08, 2022

This is a machine translation of Totvs' press release

São Paulo, November 2022 - TOTVS (TOTS3), the largest technology company in Brazil, announces its financial and operating results for the third quarter of 2022 with Net Revenue exceeding R$1 billion, a milestone in the company's history. The value of R$1,047bn represents a growth of 26% compared to the same period last year. Adjusted EBITDA maintained the advance of previous quarters, recording R$258.4 million, an increase of 33% year on year, on the same basis of comparison. Another highlight of 3Q22 was Cash Profit of R$169.1 million, with a strong increase of 52% year-on-year and 40% compared to the previous quarter.

“The results reflect, once again, the good performance of the three dimensions of the company's business, all with significant advances in relation to the same period last year. We reached for the first time more than one billion reais in Net Revenue in a single quarter and almost one billion reais of Consolidated EBITDA in the last 12 months. These are milestones that show, once again, the balance of our operational and financial model and a rare combination of growth with profitability”, says Dennis Herszkowicz, CEO of TOTVS.

In the Management dimension, Net Revenue reached R$891.5 million, an increase of 24% compared to the third quarter of 2021. Recurring Revenue reached R$756.6 million, an increase of 28% when compared to the same period the previous year, mainly driven by the increases in SaaS (38%) and Cloud (47%), maintaining the level of progress of 2Q22. The recurring model was responsible for 85% of the Net Revenue of this dimension, with the net addition of Consolidated ARR (Annualized Recurring Revenue) totaling R$191 million in the quarter.

In Business Performance , Net Revenue increased by 33% compared to the same period last year, recording R$83.3 million. This result was leveraged by the 34% growth in Recurring Revenue, mainly due to advances in RD Station's sales volume. This performance reinforces that, even in a new business dimension, the relationship between growth and profitability does not represent a dilemma for TOTVS.

The Techfin dimension also recorded great numbers on virtually all fronts. The highlight is the 61% growth in Revenue compared to the same quarter of 2021, with an increase in credit production by 9.1%. Net Funding Revenue also increased by 51% year-on-year and 40% quarter-on-quarter. The Contribution Margin ended the quarter at 67%, an increase of 390 basis points over 2Q22, mainly explained by the quarterly increase in Net Funding Revenue and the reduction in the Provision for Expected Loss.

“TOTVS is a differentiated company, with a robust balance sheet, cash generation, market leadership and a DNA of innovation and pioneering spirit. We remain optimistic and confident in the country and in Brazilians. That's why, more than ever, TOTVS believes in the Brazil that makes it”, concludes the CEO of TOTVS.

Joint Venture TOTVS Techfin and Itaú

On October 14th, the General Superintendence of CADE (Administrative Council for Economic Defense) approved, without restrictions, the Joint Venture between TOTVS Techfin and Itaú Unibanco, whose main objective is to expand and simplify access to personalized financial services and fully integrated into management systems (ERP). It is worth noting that the completion of the Transaction is subject to approval by the Central Bank and the fulfillment of other conditions precedent.


TOTVS' ESG initiatives resulted in two important recognitions this quarter. The Social Opportunity Institute (IOS), a non-profit institution founded by TOTVS and supported by the private sector that offers training in technology to socially vulnerable young people and people with disabilities, was recognized among the best NGOs in the world. The “World 200 Top SGOs” ranking, prepared by the Swiss media organization thedotgood, placed IOS among the 200 best social organizations in the world and 14th in Brazil in terms of innovation, social impact and governance practices.

Finally, TOTVS won, for the second consecutive year, the Transparency Trophy, an award from ANEFAC (National Association of Executives) that recognizes Brazilian companies with the most transparent financial statements. TOTVS was awarded among the companies with annual net revenue of up to R$5 billion. “This recognition makes tangible the governance excellence that TOTVS practices in its way of doing business. Since its foundation, the company has believed that transparency in relation to information is not only fundamental for compliance and best corporate practices, but also a true commitment to society”, adds Gilsomar Maia, CFO of TOTVS.


Absolute leader in systems and platforms for business management, TOTVS delivers productivity to 70,000 customers through business digitalization. Going far beyond ERP, it offers financial services and business performance solutions, investing R$2 billion in research and development over the past five years to meet the demands of 12 sectors of the economy. As an originally Brazilian company, TOTVS believes in “Brazil that Makes” and supports the growth and sustainability of thousands of businesses and entrepreneurs, from north to south of the country, through its technology.

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