SÃO PAULO--(BUSINESS WIRE)--Linx, leader and specialist in technologies for retail, closed the fourth quarter of 2019 with gross operating revenues of BRL 256 million. The indicator is the result of the combination of subscription revenues and consulting service revenues. In the fourth quarter of 2019, total recurring revenue reached BRL 203 million, 11.3% higher than the same period in 2018 and equivalent to 79% of total gross revenues. The Company's net cash in 4Q19 was BRL 560.9 million. Excluding the amount linked to leasing from gross debt, resulting from IFRS16, and the net earn-out of accounts payable for acquisitions, Linx's adjusted net cash is BRL 735.1 million.
Linx's net operating revenues was BRL 222 million, which represented an increase of 21.8% compared to the fourth quarter of 2018. Adjusted EBITDA reached BRL 53 million in the quarter, 16.5% higher compared to 4Q18 adjusted. The adjusted EBITDA margin in the period was 24.0%. Full year net income was BRL 39 million.
“The cross selling of financial services (Linx Pay Hub) and Linx Digital, both natively integrated into our end-to-end platform, remains our main growth trend. In 4Q19, we signed new projects to integrate retailers' online and offline channels through OMS, totaling around 16 customers at different stages of implementation. In addition, the Linx Pay Hub offerings continue to grow, supported mainly by the adoption of TEF and the continuous expansion of our portfolio of differentiated solutions and natively integrated into the Linx platform. With a constant focus on business profitability, we also entered into strategic partnerships to integrate the wallets and further strengthen the QR Linx and the Digital Account,” explains Alberto Menache, Linx CEO.
In 2020, the scenario tends to be more challenging. Due to the spread of the new Coronavirus (COVID-19) in Brazil and Latin America, we have put in place a plan covering several preventive measures necessary to minimize the effects of the pandemic, such as: creation of a Crisis Committee, implementation of home office for all Employees from March 16 and suspension or postponement of national and international business trips. In addition to looking at our internal public, we have also intensified initiatives and offers related to the digital transformation of retail, such as customized e-commerce solutions and delivery to restaurants (Delivery App), further supporting Brazilian retail at this time.
Linx continues to operate normally and reaffirms its commitment to the safety of its Employees, ensuring service to Customers and Suppliers, and consequently, to the business. We will continue to invest in innovation and in valuing our team to bring people and technology even closer together through passionate shopping experiences around the world.
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 at B3 since 2013, Linx also became the first Brazilian publicly traded software company at NYSE in 2019. The company has more than 3,500 employees distributed among its headquarters in São Paulo, 15 branches throughout Brazil. and 5 countries in America. To learn more, visit www.linx.com.br/imprensa.