Brazilian software firm TOTVS posted net revenue of US$189 million for the second quarter of 2022 –a nearly 30% increase compared to the same quarter last year– as the company’s software-as-a-service (Saas) portfolio continued to yield high dividends.
SaaS revenue jumped 37% and cloud computing 48% during the three months period, according to the companys financial statement.
“We ended this second quarter with significant advances in the operation, even in a very challenging scenario,” stated Dennis Herszkowicz, CEO of TOTVS.
The Brazilian IT consultant tweaked its business strategy in late 2018 when it began renting out software, ERPs in particular, for small fees. The strategy paid off handsomely, leading the company to report a staggering 84.4% jump in net profit in 2019.
TOTVS has been posting higher revenue numbers since. In March 2021, it bolstered the software services division further by acquiring local SaaS vendor RD Station for US$ 32.5 million.
RD Station came with more than 20,000 small and medium-sized enterprise customers not only in Brazil, but also in Mexico and Colombia. Today, SaaS accounts for more than 60% of the TOTVS revenue.
When it first started offering SaaS in 2016, the firm’s goal was to generate what it calls “recurring revenue”. In the second quarter of 2022, this recurring revenue increased by 31%.
The Brazilian IT consultant has delivery centers in most Latin American countries, including Argentina, Bolivia, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Paraguay, Peru and Uruguay.