Valuation Update With 7 Day Price Move • 22h
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to R$3.90, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 20x in the Interactive Media and Services industry globally. Total loss to shareholders of 55% over the past three years. Reported Earnings • May 20
First quarter 2026 earnings released: EPS: R$0.52 (vs R$0.071 loss in 1Q 2025) First quarter 2026 results: EPS: R$0.52 (up from R$0.071 loss in 1Q 2025). Revenue: R$90.2m (up 103% from 1Q 2025). Net income: R$6.87m (up R$7.81m from 1Q 2025). Profit margin: 7.6% (up from net loss in 1Q 2025). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Announcement • Mar 31
Dotz S.A., Annual General Meeting, Apr 30, 2026 Dotz S.A., Annual General Meeting, Apr 30, 2026. Reported Earnings • Mar 30
Full year 2025 earnings released: EPS: R$0.04 (vs R$1.25 loss in FY 2024) Full year 2025 results: EPS: R$0.04 (up from R$1.25 loss in FY 2024). Revenue: R$230.8m (up 50% from FY 2024). Net loss: R$469.0k (loss narrowed 97% from FY 2024). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. New Risk • Dec 31
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Brazilian stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Negative equity (-R$249m). Market cap is less than US$10m (R$45.7m market cap, or US$8.34m). Reported Earnings • Nov 17
Third quarter 2025 earnings released: R$0.26 loss per share (vs R$0.02 profit in 3Q 2024) Third quarter 2025 results: R$0.26 loss per share (down from R$0.02 profit in 3Q 2024). Revenue: R$51.7m (up 30% from 3Q 2024). Net loss: R$3.35m (down R$3.60m from profit in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 14
Second quarter 2025 earnings released: EPS: R$0.16 (vs R$0.46 loss in 2Q 2024) Second quarter 2025 results: EPS: R$0.16 (up from R$0.46 loss in 2Q 2024). Revenue: R$53.7m (up 38% from 2Q 2024). Net income: R$1.96m (up R$8.05m from 2Q 2024). Profit margin: 3.7% (up from net loss in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 35% per year, which means it is significantly lagging earnings. Reported Earnings • May 16
First quarter 2025 earnings released: R$0.07 loss per share (vs R$0.77 loss in 1Q 2024) First quarter 2025 results: R$0.07 loss per share (improved from R$0.77 loss in 1Q 2024). Revenue: R$44.4m (up 23% from 1Q 2024). Net loss: R$945.0k (loss narrowed 91% from 1Q 2024). Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 9.8% growth forecast for the Global Interactive Media and Services industry. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 47% per year, which means it is significantly lagging earnings. New Risk • May 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 7.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-R$35m free cash flow). Negative equity (-R$246m). Minor Risks Share price has been volatile over the past 3 months (7.9% average weekly change). Market cap is less than US$100m (R$63.2m market cap, or US$11.1m). Announcement • Apr 02
Dotz S.A., Annual General Meeting, Apr 30, 2025 Dotz S.A., Annual General Meeting, Apr 30, 2025. Reported Earnings • Mar 28
Full year 2024 earnings released Full year 2024 results: Revenue: R$154.0m (up 11% from FY 2023). Net loss: R$16.5m (loss narrowed 73% from FY 2023). Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 10.0% growth forecast for the Global Interactive Media and Services industry. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 50% per year, which means it is significantly lagging earnings. New Risk • Nov 27
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: R$57.7m (US$9.82m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-R$49m free cash flow). Share price has been highly volatile over the past 3 months (9.7% average weekly change). Negative equity (-R$246m). Earnings have declined by 2.4% per year over the past 5 years. Market cap is less than US$10m (R$57.7m market cap, or US$9.82m). Reported Earnings • Nov 16
Third quarter 2024 earnings released: EPS: R$0.019 (vs R$1.40 loss in 3Q 2023) Third quarter 2024 results: EPS: R$0.019 (up from R$1.40 loss in 3Q 2023). Revenue: R$39.8m (up 10% from 3Q 2023). Net income: R$249.0k (up R$18.9m from 3Q 2023). Profit margin: 0.6% (up from net loss in 3Q 2023). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Global Interactive Media and Services industry. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 51% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 16
Second quarter 2024 earnings released: R$0.46 loss per share (vs R$1.40 loss in 2Q 2023) Second quarter 2024 results: R$0.46 loss per share (improved from R$1.40 loss in 2Q 2023). Revenue: R$39.0m (up 13% from 2Q 2023). Net loss: R$6.09m (loss narrowed 67% from 2Q 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Global Interactive Media and Services industry. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 57% per year, which means it is significantly lagging earnings. New Risk • May 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-R$76m free cash flow). Share price has been highly volatile over the past 3 months (11% average weekly change). Negative equity (-R$240m). Earnings have declined by 13% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Market cap is less than US$100m (R$111.2m market cap, or US$21.5m). Reported Earnings • May 18
First quarter 2024 earnings released First quarter 2024 results: Revenue: R$36.1m (up 19% from 1Q 2023). Net loss: R$10.2m (loss narrowed 35% from 1Q 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Global Interactive Media and Services industry. New Risk • Apr 10
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -R$95m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-R$95m free cash flow). Negative equity (-R$230m). Earnings have declined by 20% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Market cap is less than US$100m (R$67.6m market cap, or US$13.3m). Reported Earnings • Mar 31
Full year 2023 earnings released: R$4.57 loss per share (vs R$7.19 loss in FY 2022) Full year 2023 results: R$4.57 loss per share (improved from R$7.19 loss in FY 2022). Revenue: R$138.7m (flat on FY 2022). Net loss: R$60.5m (loss narrowed 36% from FY 2022). Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 9.8% growth forecast for the Global Interactive Media and Services industry. New Risk • Mar 06
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Brazilian stocks, typically moving 8.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.0% average weekly change). Negative equity (-R$222m). Earnings have declined by 24% per year over the past 5 years. Minor Risk Market cap is less than US$100m (R$86.1m market cap, or US$17.4m). Major Estimate Revision • Jan 05
Consensus revenue estimates fall by 14% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from R$169.7m to R$145.6m. Forecast losses increased from -R$1.87 to -R$4.73 per share. Interactive Media and Services industry in Brazil expected to see average net income growth of 20% next year. Consensus price target down from R$21.25 to R$19.50. Share price rose 4.3% to R$8.24 over the past week. Major Estimate Revision • Dec 23
Consensus EPS estimates fall by 900% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -R$0.187 to -R$1.87 per share. Revenue forecast of R$169.7m unchanged since last update. Interactive Media and Services industry in Brazil expected to see average net income growth of 21% next year. Consensus price target of R$3.00 unchanged from last update. Share price rose 760% to R$8.60 over the past week. Reported Earnings • Nov 17
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: R$0.14 loss per share (improved from R$0.15 loss in 3Q 2022). Revenue: R$36.1m (down 8.1% from 3Q 2022). Net loss: R$18.7m (loss narrowed 5.8% from 3Q 2022). Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 129%. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Global Interactive Media and Services industry. New Risk • Sep 19
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -R$128m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-R$128m free cash flow). Share price has been highly volatile over the past 3 months (12% average weekly change). Negative equity (-R$204m). Minor Risk Market cap is less than US$100m (R$126.2m market cap, or US$25.9m). Breakeven Date Change • Sep 19
Forecast to breakeven in 2024 The 2 analysts covering Dotz expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 75% to 2023. The company is expected to make a profit of R$6.16m in 2024. Average annual earnings growth of 109% is required to achieve expected profit on schedule. New Risk • Aug 13
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -R$128m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Negative equity (-R$204m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-R$128m). Currently unprofitable and not forecast to become profitable over next 2 years (R$16m net loss in 2 years). Market cap is less than US$100m (R$182.1m market cap, or US$37.1m). Reported Earnings • Aug 12
Second quarter 2023 earnings released: R$0.14 loss per share (vs R$0.21 loss in 2Q 2022) Second quarter 2023 results: R$0.14 loss per share (improved from R$0.21 loss in 2Q 2022). Revenue: R$34.6m (up 23% from 2Q 2022). Net loss: R$18.6m (loss narrowed 34% from 2Q 2022). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Global Interactive Media and Services industry. New Risk • Jun 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Negative equity (-R$185m). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (R$42m net loss in 2 years). Share price has been volatile over the past 3 months (8.3% average weekly change). Market cap is less than US$100m (R$169.4m market cap, or US$35.1m). Major Estimate Revision • Jun 14
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from R$180.8m to R$160.6m. Forecast losses increased from -R$0.256 to -R$0.44 per share. Interactive Media and Services industry in Brazil expected to see average net income growth of 19% next year. Consensus price target down from R$2.33 to R$1.88. Share price rose 9.3% to R$1.06 over the past week. Reported Earnings • May 20
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: R$0.12 loss per share (improved from R$0.13 loss in 1Q 2022). Revenue: R$30.3m (down 10% from 1Q 2022). Net loss: R$15.5m (loss narrowed 7.0% from 1Q 2022). Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 6.8%. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Global Interactive Media and Services industry. Price Target Changed • May 17
Price target decreased by 11% to R$2.33 Down from R$2.61, the current price target is an average from 4 analysts. New target price is 184% above last closing price of R$0.82. Stock is down 76% over the past year. The company is forecast to post a net loss per share of R$0.33 next year compared to a net loss per share of R$0.72 last year. Reported Earnings • Mar 29
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: R$0.70. Revenue: R$139.1m (up 13% from FY 2021). Net loss: R$95.2m (loss widened 16% from FY 2021). Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 27% p.a. on average during the next 2 years, compared to a 9.2% growth forecast for the Global Interactive Media and Services industry. Major Estimate Revision • Feb 05
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2022 has been updated. 2022 expected loss increased from -R$0.536 to -R$0.651 per share. Revenue forecast unchanged at R$135.8m. Interactive Media and Services industry in Brazil expected to see average net income growth of 19% next year. Consensus price target down from R$3.80 to R$2.61. Share price fell 2.0% to R$0.97 over the past week. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. No independent directors (5 non-independent directors). Co-Founder, CEO & Director Roberto Chade was the last director to join the board, commencing their role in 2000. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Major Estimate Revision • Sep 10
Consensus EPS estimates fall by 76% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from R$146.0m to R$132.3m. Losses expected to increase from R$0.38 per share to R$0.66. Interactive Media and Services industry in Brazil expected to see average net income growth of 19% next year. Consensus price target down from R$10.13 to R$8.78. Share price fell 5.9% to R$2.53 over the past week. Major Estimate Revision • Aug 24
Consensus revenue estimates fall by 25% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from R$195.5m to R$146.0m. Forecast losses increased from -R$0.17 to -R$0.45 per share. Interactive Media and Services industry in Brazil expected to see average net income growth of 18% next year. Consensus price target down from R$15.00 to R$10.13. Share price fell 3.7% to R$2.60 over the past week. Major Estimate Revision • Aug 23
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from R$195.5m to R$146.0m. EPS estimate unchanged from -R$0.45 per share at last update. Interactive Media and Services industry in Brazil expected to see average net income growth of 17% next year. Consensus price target down from R$22.04 to R$14.88. Share price was steady at R$2.69 over the past week. Price Target Changed • Aug 23
Price target decreased to R$10.13 Down from R$15.00, the current price target is an average from 3 analysts. New target price is 276% above last closing price of R$2.69. Stock is down 71% over the past year. The company is forecast to post a net loss per share of R$0.17 next year compared to a net loss per share of R$0.62 last year. Price Target Changed • Aug 04
Price target decreased to R$15.00 Down from R$16.25, the current price target is an average from 3 analysts. New target price is 337% above last closing price of R$3.43. Stock is down 72% over the past year. The company is forecast to post a net loss per share of R$0.05 next year compared to a net loss per share of R$0.62 last year. Major Estimate Revision • May 14
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from R$224.1m to R$183.2m. Expected to report profit of -R$0.02, versus loss of R$0.02 per share previously. Interactive Media and Services industry in Brazil expected to see average net income growth of 18% next year. Consensus price target of R$15.50 unchanged from last update. Share price rose 3.5% to R$2.98 over the past week. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. No independent directors (5 non-independent directors). Co-Founder, CEO & Director Roberto Chade was the last director to join the board, commencing their role in 2000. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Major Estimate Revision • Jan 29
Consensus EPS estimates fall by 28% The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from R$143.1m to R$136.3m. Losses expected to increase from R$0.34 per share to R$0.43. Interactive Media and Services industry in Brazil expected to see average net income growth of 23% next year. Consensus price target down from R$20.00 to R$16.75. Share price fell 6.7% to R$2.80 over the past week. Reported Earnings • Nov 15
Third quarter 2021 earnings released: R$0.18 loss per share The company reported a soft third quarter result with weaker control over costs, although losses were stable and revenues were flat. Third quarter 2021 results: Revenue: R$28.7m (flat on 3Q 2020). Net loss: R$24.1m (flat on 3Q 2020).