Attovia Therapeutics, Inc.

Atento did not disclose full company revenue or EPS in the prepared remarks, but management said constant-currency revenue increased 1.1% sequentially in Q3 and was down 0.4% year over year. EBITDA margin was 11.1% in Q3, up 3.3 percentage points sequentially from 7.8% in Q2, and down 2.3 percentage points year over year; Brazil EBITDA margin was 10.8%. Operating cash flow was positive $8 million, cash EBITDA/U.S. GAAP EBITDA was $25 million after leases, working capital was a negative $5 million, finance expense was $46 million, and cash ended at $66 million versus $103 million at Q2. Management guided to Q4 EBITDA margin of 14% to 15% and full-year EBITDA margin of 10.5% to 11%; they also said Q4 free cash flow should be around $40 million and cash should finish the year in the $90 million to $100 million range.

Carlos López-Abadía framed 2022 as more difficult than expected but said the first-half actions are starting to show results. He emphasized five priorities: expanding sales, accelerating operational efficiencies, improving cost structure, managing inflation pass-through, and strengthening security, and said these are helping the company exit 2022 on a stronger footing. His tone was constructive and pragmatic: he acknowledged weak demand in some customers, especially in Brazil, but repeatedly argued that the changes are structural rather than just cost cuts and should support a stronger 2023.

Sergio Passos focused on the sequential improvement in KPIs and the cash bridge. He highlighted the move in EBITDA margin from 7.8% to 11.1%, the positive 1.1% sequential revenue change, the $25 million cash EBITDA/U.S. GAAP EBITDA after leases, and the $8 million operating cash flow, while explaining that Q3 free cash flow was hit by the timing of $46 million in finance expense, including bond and hedge payments. He said cash was $66 million at quarter-end, expected to recover to $90 million to $100 million in Q4, and noted net leverage of 6.1x EBITDA, with all facilities renewed and the $43 million IDB super-senior facility remaining available under covenant compliance.

Analysts focused on the lower guidance, asking whether visibility was good enough to support the revised full-year outlook and what Q4 margin implied. Management said they are roughly halfway through Q4, have good visibility, and expect Q4 EBITDA margin to be in the 14% to 15% range, which should support the full-year target and a Q4 cash rebound. Another area of focus was liability management and liquidity; management said it is reviewing proposals from existing investors and international banks, including receivables-backed options, and that 2023 should be the last year of abnormally high financial expenses. Questions also covered the Philippines expansion, where management said the launch is self-funding, based on committed customer demand, and strategically useful for U.S. nearshore/offshore coverage.