SÃO PAULO--(BUSINESS WIRE)--Linx, the leading retail technology specialist, closed the third quarter of 2019 with gross operating revenues of BRL 227 million. The indicator is the result of the combination of recurring and service revenues. In the third quarter of 2019, total recurring revenue reached BRL 191 million, 11.3% higher than the same period of 2018 and equivalent to 84% of total gross revenue.
Linx's net operating revenue was BRL 197 million, an increase of 13.0% when compared to the third quarter of 2018. Adjusted EBITDA reached BRL 47 million in the quarter, 13.1% higher than the adjusted 3Q18. Adjusted EBITDA margin in the period was 24.0%. As a result of purely accounting and non-recurring events recognized in this quarter, Linx reported an accounting loss in the period. That said, net income adjusted for these non-recurring events was BRL 20 million, up 38.5% over the same period last year.
“Cross selling of financial services (Linx Pay Hub) and Linx Digital, both natively integrated with our end-to-end platform, remains our main growth trend. We ended the quarter with 13 customers at different stages of OmniChannel platform deployment. Besides that, we increased our platform's differential by partnering with Delivery Center, which will allow the retailer to deliver the order within one hour. In addition, Linx Pay Hub offerings continue to grow, mainly supported by the adoption of TEF, the continuous increase of our portfolio of differentiated solutions and 100% integrated with other products offered by Linx, as well as strategic partnerships such as those signed with the Mercado Pago and AME this quarter to reinforce this strategy related to wallet integration (QR Linx),” explains Alberto Menache, Linx´s CEO.
In addition, IDC first released the study about Brazil´s e-commerce market. “According to the study, Linx reached 12.2% market share in 2018, +450 basis points compared to 2017, consolidating itself as the second largest player in the market. In the same year, Linx grew more than twice as much as the market leader, while other players dropped their share or remained virtually stable,” explains Jean Klaumann, Linx's COO.
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.