Itaú BBA analysts met with Locaweb’s CEO and CFO — and apparently, the conversation flowed.
“It was just an hour of conversation, but it was worth a month,” wrote analysts Tiago Kapolskis and Christian Faria. “We could have saved the surprise for the coverage reboot report, but the conversation was so much fun that we couldn’t wait and decided to post a note now.”
Analysts note that after a series of mergers and acquisitions, Locaweb has built an end-to-end solution that touches the entire customer workflow. – from generation Lead (top of the funnel) for payment and delivery.
This full view of solutions allowed Locaweb to leave a file life value/CAC from 4x in 2012 (when it only had the e-commerce platform Tray) to over 12x today.
(This metric measures how much revenue a customer drops over the course of his or her relationship with the business compared to the cost the business incurred to acquire the customer.)
“Locaweb’s multiple solutions are also increasing its controllable market, giving the company room for robust growth,” the analysts say. “This strategy also led to shake Too low, which is a key profitability metric for any software company. “
To give you an idea: 95% of Locaweb cancellations are due to corporate bankruptcy.
Itau also praised the Locaweb sales model, which they compared to the PagSeguro model.
“Software companies selling to small and medium-sized businesses need to control costs more closely, or else their profitability is jeopardized,” the analysts wrote. “In the case of Locaweb, 95% of sales are closed via digital channels, and extremely important low touch. The product is of high standards, which means that customers deploy the platform very quickly and on their own.”
Itaú also notes that despite having a complete solution, Locaweb is very open to third parties, integrating with more than 700 APIs.
‘Which – which Mentality It allows it to do something very similar to what Satya Nadella has been doing at Microsoft since 2014, and that was a major turning point behind the company’s success. big technology. “
The bank plans to resume coverage of the newspaper soon.
The stock closed up 1.4% at R$10.88, with a value of R$6.4 billion on B3.
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