CEO of Linx discusses the performance of the company and the growth prospects

Alberto Menache, CEO of Linx, discusses the performance of the company and the growth prospects in an interview with Estado de Sao Paulo newspaper.

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Intricate tax system, complicated notary processes, complex laws. Everything that comprises the nightmare of any Brazilian company ends up as a sort of ally in times of crisis for Linx, the leading management software segment for retail.

As firms cannot ignore help to simplify these processes and the Brazilian specificities constitute a real entry barrier for new competitors, the company can face times of weaker economy with resilience. “We expect a 20% growth in revenues this year”, says Alberto Menache, CEO of the company. Listed on the New Market, the company recorded a turnover of more than R$ 400 million last year.

Linx’s performance goes on the contraflow of the crisis, why is it so? We have a model based on recurring revenues and loyal customers. At a retailer, our software controls, for example, outlets, promotions, pricing, integration with payment gateways, tax coupon, and sometimes manufacture as well. Due to the complexity of this business, there is an exchange hitch. No wonder that 80% of our revenue is recurrent, coming from customers who have been with us for years.

Are there are segments in which you are stronger? We started working in clothing retail, but today we operate in different areas, servicing much of gas stations networks, pharmacies, fast food, among others. And this is another aspect that helps our performance: in addition to being diversified in the segments of operation, we focus on serving large networks because they are companies with scale, even during a crisis they have capital.

Source: O Estado de S. Paulo, 12/28/2015