Good afternoon, ladies and gentlemen. Welcome to Locaweb's quarter 2 2022 earnings conference call. Today, we have here with us Mr. Fernando Cirne, CEO, Mr. Rafael Chamas, CFO and Investor Relations Director, Higor Franco , Beyond & SaaS Director, Willian Marques
Before proceeding, let me mention that any forward-looking statements made during this conference call are relative to the company's business prospects, projections, and operating and financial targets are based on beliefs and assumptions of the company's management, as well as information currently available to the company. These forward-looking statements are no guarantee of performance. They involve risks, uncertainties, and assumptions, and they refer to future events, and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operating factors can affect the future performance of Locaweb, and may lead to results that differ materially from those expressed in said forward-looking statements. For the Q&A session, we kindly ask that you send your questions using the Q&A icon on the bottom of your screen. Your names will be announced to ask your questions live.
At this point, you will be prompted to unmute your microphone. Now, I would like to turn the conference over to Mr. Fernando Cirne to start his presentation. Mr. Cirne, you may proceed.
Hello, everyone. Welcome to Locaweb's quarter two 2022 earnings conference call. Before I start, I'd like to thank our employees, our shareholders, and the analysts who contributed for our quarter two results. On slide number three, I will start by saying that we continue to be very strongly aligned with the company's budget plan. This is very strong in the company's culture to really comply with the plans that we established in the end of last year. We have been successful doing this. Our recurring e-commerce customer base, which includes Tray, Bagy, Dooca, and Bling, continued to show consistent growth in quarter two, reaching 143.4 thousand subscriptions.
When I say consistent growth, it's continuous growth with no setbacks. This is very important considering the strong reopening of the economy, and this is also a result of the constant addition of new customers, which continued for the fourth consecutive quarter. Our net revenue was up 53.3% year-over-year, and 13.6% quarter-over-quarter. This is an important increase quarter-over-quarter. The commerce segment already accounts for 61% of the group's net revenue, and this is actually accelerating. In quarter two, when compared with quarter two, 2022, we had a 45% increase in our net revenue. When we compare quarter one year-over-year, the increase was 44%, and quarter four, 42% year-over-year.
Now, as for our margin, which is something that we're constantly seeking to improve, our organic margins are stable. Our EBITDA margins are stable for four consecutive quarters now. The EBITDA margin of the acquired companies also have been evolving when we compare quarter four last year with quarter one, 2022. Our ecosystem generated BRL 12 billion in GMV. On slide number 4, you see that we do have constant growth of our e-commerce subscribers. We have the chart here from quarter 1, 2020. When we had our IPO, we had nearly 50,000 subscribers, and we have been linearly increasing this number, reaching nearly 145,000 subscribers, and this is due to what we see on slide number five.
This is due to the consistent addition of new subscribers. We had lower addition, the base 100 from quarter 1 2020, then we grew during the pandemic. We were able to digitalize a large number of companies during the COVID pandemic, and our purpose was not to decrease this rhythm. We wanted to avoid any slowdown. Actually, it was the opposite. We saw an acceleration. Now with all our investments in R&D and onboarding, we have been able to maintain our levels of new additions. This is actually a great achievement, considering that we're being able to add new customers at very strong levels and also have margin increases since then. This is an important achievement for the company. On slide number six, here we have our rule of 40.
This is a way to show the performance of high-growth company because it shows our capacity to be profitable. It is the sum of the percentage net revenue year-over-year and the company's EBITDA margin. Here we have the rule of forty for the consolidated Locaweb operation, which is BeOnline and commerce. We had an increase of 33%, reaching 49%, which is a very good indicator. Now, moving on to slide number seven. Here we have the rule of forty for commerce only. The growth of our net revenue was 45%, and our adjusted EBITDA margin was up 36%, so we reach a rule of forty or of 81%. This shows the strong capacity that Locaweb has to grow and deliver good margins. This is very interesting.
On the next slide, we have the GMV of our operation. Our GMV year over year for the commerce platforms, as you can see on the left, was up 10%. When we stratify this with our own stores, our own stores grew 15.3% year over year. Why do our own stores grow more than the general stores? First, because we have been buying companies that provide services for lead generation to our customers. For example, Squid, Social Miner, All iN, and so on. Second, we have a new learning operation that empowers our store owners to use marketing in their favor. Finally, because we have been offering integrations that will help our customers sell more. For example, TikTok, Instagram, Facebook, and others. This all is proof that we are empowering our merchants to take control of their business.
This difference from 15 to 10 is proof of that. On the right, we have the total ecosystem GMV, which is the sum of the GMV of our own platforms added to our ERP GMV and also our marketplace integrators. It increased by 32%, and this is another interesting indicator because when we consider that the market has been growing at much more modest rates. It's interesting to see that BRL 12.1 billion was the GMV for this quarter. This is a strong indicator. If we multiply it four very simple calculation, we will get to BRL 48.5 billion, nearly BRL 50 billion throughout the year. This means that Locaweb has a very important share in the Brazilian e-commerce GMV. Now on slide number nine, we have information, more information about our GMV.
Locaweb discloses its GMV and monitors its GMV. It is an important indicator for us. It is true that our net revenue has been growing in much higher rates than the market GMV and our own GMV. Why? First, because we have a strong concentration of recurring revenue. Our recurring customer base has been growing very strongly, as you could see in the previous slides. Second, our revenue model does not depend exclusively on the GMV. Just to give you an example, we have the Tray and Bling platforms, where customers pay a fixed monthly fee according to the volume of resources they have access to, and this volume of resources can increase and scale up, and the value will increase according to the utilization. Also, our platforms grow faster than those of the competition.
The fourth point here is that in businesses that have their monetization linked directly to the GMV, for example, Vindi or payments, we are outgrowing the market, and we are adding value through internal synergies. Finally, we have been making some very good acquisitions that are delivering high growth, which is the case of Melhor Envio. The combination of all these factors is what causes the growth of our net revenue to detach from the growth of our GMV and that of the market. On slide number 10. Now, as for our acquired companies, we always share with you the performance of the three largest acquired companies. But overall, all the companies we bought have been delivering good results and results according to the business plan. Growth, acceleration, and achieving profitability within 2- 4 years.
This is the business plan that we established for all the companies we acquired. It's a detailed business plan with the revenue line, customer acquisition, churn, and synergies, and they are meeting their plans. The three major acquisitions, Bling, Melhor Envio, and Squid. Bling and Melhor Envio together account for 50% of our revenue, and they had a combined growth of 73% year-over-year. Squid also underwent a huge acceleration in quarter two 2022 compared with quarter two 2021, an increase of 59%. Some indicators for these operations on slide number 11, we see that the GMV of Bling invoices on and offline grew by 51%, reaching BRL 25 billion in quarter two this year. The number of tax generated in Melhor Envio reached BRL 5.1 billion in quarter two.
Melhor Envio net revenue was also boosted by a commercial adjustment that we made, which was very successful and caused the net revenue to grow more than 70% quarter-over-quarter. Now a little bit about Vindi. Our TPV increased by 60.8% quarter-over-quarter, reaching BRL 1.15 billion. Of course, this is somehow attached to the GMV, but it contributes to our results which are much above the GMV. 60% growth is very expressive. Another important point about the TPV is the contribution of Locaweb's internal businesses. The share of the TPV that's been generated by our own synergies. In this quarter, this reached 28%. It's important to see how this is growing.
In the previous quarter, it was 23.9%, and in the quarter four last year, 18.8%. Our synergies are constantly growing. We are going to talk more about synergies, but we have different ways to talk about our synergies, and this is one of the ways. You're going to hear from our product team, our directors, our business directors, and you're going to hear the practical aspects of these synergies. This is a numerical way to verify how synergies are being captured in the group. Now I turn the conference over to our CFO, and he's going to go into more details about our financial results of the quarter. Thank you very much, and I'll be back before the end for my closing remarks. Thank you, Fernando.
It's a pleasure to be here again, presenting the results and the highlights for quarter two. Just recapping some of the things Fernando already said. We had very interesting growth, 53% in the quarter for the consolidated net revenue of the company. We closed the period at BRL 282.5 million. The e-commerce revenue grew 105% year-over-year. But when we look at organic growth only, it grew by 55%. Our platform subscriber base reached 143.4 thousand subscribers, increasing by 39%. Our monetization model, as we heard from Fernando, is not GMV dependent. So this is a great indicator for us. Our transactional indicators also went really well.
61% increase in our TPV, reaching BRL 1.1 billion, which is a very important monetization factor of the company. The GMV of our ecosystem reached BRL 12 billion, which is very significant in the commerce environment in Brazil. Our adjusted net income was BRL 39 million. We are progressing quarter-over-quarter in our ability to generate profit, and we closed quarter two with BRL 1.4 billion in cash. On slide number 15, here we have our net revenue. As I said, we had a 53.3% increase, reaching BRL 282.5 million. The two operations with more than BRL 100 million in revenue. In the quarter for commerce, it was BRL 173.6 million, so 104% increase.
BeOnline with more than 100 million, 108.9, a 9.5% increase year-over-year. Here we highlight how we monetize the commerce net revenue. We have two main ways to monetize this business. First, the recurring revenue, which is our platform subscription revenue. It was 103% increase for our subscription revenue and also our capacity to extract value from our GMV, from our ecosystem, which increased by 106%, reaching BRL 101.3 million. Our two monetization methods show important growth this quarter. On the next slide, we show the company's capacity to recover its EBITDA margin. That chart that we show every quarter, here we break down the way we monetize the business in three main lines.
In blue, we have organic commerce. In red, we have organic BeOnline and SaaS, and in yellow, we have our acquired companies. We have yet another quarter with very consistent margins, which has been happening since 2021, and that's what we told the market that this would be our purpose. We closed with 36.1. We closed the quarter with 36.1%. The same stability can be seen in BeOnline and SaaS at 17.4%. In our acquisitions, which we always say, for example, in our business plans, we always say that quarter after quarter, we want better monetization of the businesses without losing growth, but gaining operational scale and bringing better and better profitability so that we can reach a maturity level within three years after the acquisition.
In Q4 2021, we have our latest acquisition until Q2 this year. Minus 12% was -9% in Q1, and now we close at -6%. Here we have our adjusted EBITDA. We closed the quarter with some stability compared to last year, 41.3% to 40.4%. A little less coming from commerce, 22.6%, and BeOnline SaaS with a 17.8% share with a slight drop due to our acquisitions. On slide 19, here we see the adjusted net income. Our adjusted net income reached BRL 38.7 million, 63% increase year-over-year. When we look at our net income, we go from BRL 3.6 million in Q4 last year to BRL 13.3 million, 270% increase.
Talking about the nature of these adjustments, they're the adjustments that we always have to consider. They are non-cash adjustments, such as the recognition of expenses from derivatives in our buy option plan or other expenses that are attached to the company's M&A plan. Also, CPA, BRL 9 million, and the adjustment to present value of acquisition earnout of 18.2. In quarter two, we also paid some earnouts and of course these payments, we're provisioned for them, but we will never have a provision that is exactly that equals the earnout value exactly. That's why we make these adjustments in our net income so that we can understand what's happening with the business without these oscillations. We have here a BRL -2 million for earnouts adjustment.
This means that we had a positive impact on our net income when compared to our provisions. With the same dynamics, I can remove this from my adjusted net income. Now looking at the company's cash flow. In quarter two, we had an operational cash generation of BRL 58.7 million. We have BRL 25 million in CapEx for the period, so the post-CapEx cash generation is BRL 33.7 million. Here we also have a payment of BRL 139.2 million that we had due to the payment of earnouts, or in the case of KingHost, we had the definitive payment, and you have the details on the right. Today, the provision balance in quarter two for future earnouts is BRL 811.8 million.
Due to these payments, we had a reduction in the net cash position of the company of BRL 106.5 million in the period. Now, looking into more details on slide 21, we closed quarter two at BRL 1.4 billion in cash. The company practically no longer has debt, so it's the same net cash after loans. On the IFRS and with all the discounts, we have BRL 1.347 billion in cash. Considering our earnout commitment, we have BRL 811 million, so our net cash is BRL 536 million in the period.
Now we're going to hear from our other directors, Willian, Higor, and Alessandro, talking about the highlights relative to the integration of our acquired companies and how our M&As are leveraging our offer to the market. Thank you, Rafa. I'd like to thank our investors and clients and all the employees who have been helping us show these very good results. On slide 24, here we have our commerce ecosystem. Here we have the three dimensions that will support the small stores be successful online. Starting with our unified solution on the left. As you heard in previous meetings, we always have novelties, and we are strengthening more and more our ecosystem through the solutions that we incorporated after our M&A.
here we have several integrations with other companies in the group, always focusing on providing our clients in a unified and integrated way, all the tools they need to sell online, from logistics with Melhor Envio, to marketing and sales, which is one of the greatest highlights here, and I'm going to show you more about what we are doing to help our clients sell more. Omnichannel integration, Octadesk, Vindi payments, financial services with Creditas and ERP management with Bling. This all brings our SMB customers an integrated tool, very powerful to help them manage their business. On the right, it's very important too to stress that although Tray delivers solutions to the group, it also has the elasticity to allow other companies in the Brazilian ecosystem to connect with our merchants. That's why we are reinforcing this layer of partnerships in our ecosystem.
We recently launched an application store. We have our open APIs. We launched our services store, allowing agencies to offer creative services and marketing online and online marketing and media services to our clients. Our third dimension in order to support this unified solution is education. Education is a pillar that has always been one of our top focuses. We have always invested in online events and now we're going back to in-person events. We have the E-commerce School, which is our free of cost online portal, with millions of accesses from our customers and also non-customers. We use WhatsApp, Facebook and other portals to strengthen our education initiatives. We have our customer success team that helps customers understand how to better optimize and grow their business. We have the onboarding area, which received a lot of technology investments and is now another differentiator of our platform.
Focusing on marketing and sales. Well, within our platform, marketing and sales is the area that we have been investing the most in the past quarters to help our customers sell more. Both in terms of technology investments and also content in our education portals. Also the integration with marketplaces. Tray is the only platform that has more than 30 marketplaces natively integrated in its dashboard. We are also investing in integration. We had the first integration in Latin America with the new Facebook APIs, also WhatsApp integration. We were also the first in Latin America with the official API. The first commerce platform that has integration with their official API. Instagram, TikTok, dropshipping, which is a very important functionality for our customers to sell with no stock. Conversational commerce to help our customers convert sales within messaging platforms.
We help our customers find the right digital influencers through Squid. We are very happy to bring this as an integration that can really change the lives of our SMB customers. I'm going to show you in my next slide the incredible results that we have with the integration of Google PMax. We are also advancing in adding artificial intelligence and customization to our SMB customers through the products that we are developing with All iN. On slide 23, we have the highlights in onboarding. Here you can see. Well, I know it's too small, but here you see the onboarding journey of our customers when they first join a platform. In the past quarters, we made a lot of innovations in this journey. Today we have personalized onboardings for each customer.
If the customer is setting up their first online store, our onboarding system will bring specific activities to the customer that will help them open their first store. If the customer already has an online store and is migrating to Tray, we have activities on the onboarding dashboard that will help the customer migrate. We have activities focusing on product migration, account transfer, marketplace. The onboarding system adapts to the moment the customer is going through. We also recently launched the Turbo button, a very innovative capability that combines everything that Tray has from integration with marketplaces, integration with Big Techs, and also content tools that will help our customers sell more through a button that will help customers boost their store. Recently, we also launched the Mini Player, which is a contextualized help.
On the page the customer is visiting, they have access to materials and online content to be able to make the most out of this platform. If they're, for example, registering products and they have questions about how to register products, they can access a short video to better understand how they can do this in the best way possible. They're learning as they use the platform. On the next slide 25. Here we have all the tools with which we already have integration. The focus here is to show you that this is already operating within our customer dashboard, all integrated with the same login. They don't have to change the screens, they don't have to use another username and password. We have the Samurai dropshipping. We have a credit solution with PagSeguro operating for all customers.
With Vindi, we have an innovation in our payment area, a plugin that allows customers, In addition to operating all their payments, they can also use features that they actually had to visit Vindi's website to use. So document verification or withdrawals. Today, all the payment functions are also integrated into our single dashboard. We also have integration with Allin. Which involves a lot of artificial intelligence and personalization. We have two new integrations with the BeOnline area, the Octadesk chat and the Connectplug invoice issuer. You're going to hear more about them from Higor . Now, on the next slide, here we have these new integrations with the Big Techs for traffic generation. To generate demand for our customers. Although today we have the best integrations with marketplaces.
As I mentioned, Tray is the only platform with more than 30 native integrations. We are also investing greatly in the past few quarters in creating the best integrations with the big techs, with the companies that today concentrate most of the public who shop online. Facebook, TikTok, Instagram and Google. Facebook and TikTok are integrations that allow our customers to display their products and to run campaigns for social media customers. Google PMax is a new Google technology, very innovative, and I'm going to give you more information about it, because I think that here with Google PMax, we found a way to further accelerate the businesses of our SMB retail customers who had a lot of difficulties running smart campaigns, and now it's much easier for them. On the next slide, I show the integration between Tray and Google PMax.
Google PMax is a new Google technology that concentrates all the campaigns that can be ran in Google, either search campaigns or display campaigns, which is advertising in content websites or Google Shopping campaigns, which is when customers are searching for products, and also the more segmented campaigns that Google offers. Google created an artificial intelligence engine to help SMB customers not have to worry about which campaign will bring them the highest return. The PMax technology, with the integration with Tray, allows customers to make all their products available, and Google will use its intelligence to reach the highest conversion rate possible, the highest return possible. The great highlight here is that the integration between Tray and Google was the first one with the PMax technology. This is already a case in Google.
We're very happy with the results that we are seeing and with this innovation that we're bringing to our SMB customers who until now didn't really have the means to pay for an agency or have someone focusing on running the best campaigns. On the next slide, I'm very happy to share with you the first numbers of the PMax integration. We have more than 9,500 merchant accounts using the integrated Google account through the Tray integration. Among these 9,500, 6,000 of these accounts were created specifically through the Tray dashboard. These customers had never run ads in Google, and they created their first Google Ads account through the Tray dashboard and through this integration.
These campaigns that our customers today can run from the Tray dashboard have generated BRL 115 million in GMV generated by Google Ads campaigns at Tray. This is specific of these campaigns. The most striking data here is that the PMax campaigns that use the Tray Google integration are performing 40% over conventional campaigns. The ROAS has reached up to 4.3%, whereas conventional campaigns reach close to 3%. This means that we are delivering to our SMB customers a very strategic tool. 36% of the accounts had their first Google Shopping campaign by means of this integration with Tray. This number is very relevant because these were clients that didn't use to use Google for their media campaigns before the change in integration.
Now, I'm going to hand it over to Higor Franco, and he's going to talk about the sales solutions, which are also adding a lot to our commerce ecosystem. Thank you, Willian. Good afternoon, everyone. Here, I'll share with you some more details about the integrations that Willian already announced during his part of the presentation. The SaaS integrations that take place within the commerce customer journey. On slide number 30, on the left of this slide, we see the integration between Tray and Octadesk, which contemplates everything related with conversational commerce and all the channel management and interaction with customers, all available now within the Tray dashboard, transparently through what we call the Tray chat. The Tray customer now can use different solutions in the market for customer service, but natively within the Tray panel.
Through Octadesk, we created the Tray chat function, so with a few clicks, the customer can interact with their customers on Instagram, Facebook Messenger, WhatsApp, or using the chatbot on their e-commerce page within Tray. Via Octadesk, in a fully white label process, the Tray customer now has access or has the conditions to connect their entire product catalog from their e-commerce platform to the interactions with their end customers. The e-commerce customer service operator or consultant can interact with the end customer using the products registered within Tray. This is what the market today is calling, and actually, through this feature, we are offering this to all Tray customers. This is what we call conversational commerce. We are consolidating a very important offer to create customers via Octadesk, and this is already operating and available.
On the right of this slide, we have another important offer of our SaaS portfolio that is part of the Tray customer journey, which is our invoice issuer of Connectplug. The Connectplug invoice issuer, now integrated into the Tray customer journey or the Tray panel. Through this functionality, Tray customers will now be able to issue invoices using the invoice module of Connectplug within the Tray panel. This was an important gap because Tray customers had to integrate with external solutions, other ERPs or external solutions to be able to issue invoices within Tray. Now all Tray customers, with a few clicks and some very easy settings, very low touch, they can have the option to issue their invoices within the Tray platform. Thank you very much. I stop here, and now I hand it over to Alessandro Gil. Thank you, Higor.
I want to thank our investors and everyone attending this call. It is my first time in our earnings results call, and I would just like to note that we have a new area now, Commerce Enterprise, which includes companies that we already had in our portfolio, Tray Corp, Allin, Squid, Ideris, Samurai, and now Síntese, our latest acquisition that was announced last Friday. What we want here is to capture synergies and service some larger customers. The first topic here is very important for us. We created two new areas. One is partnerships and channels, which will take care of relationship management with our strategic partners and also the agencies that will implement our solutions. We brought an executive from the market, Adriana Mesquita.
She worked in Meta, and I'm sure she's going to do incredible work in Locaweb in partnerships and channels. Now to take charge of sales and relationship, we brought Roberto Medeiros. He has worked in IBM, Linx and Oracle. Roberto comes with the purpose of helping us look at customers with this one single view and tap all the synergies that we have between our products. Another very important point is the acquisition of Síntese that we announced last Friday. Síntese will join our ecosystem, and we're going to capture the most synergies. We can't really imagine a commerce solution detached from our brick-and-mortar stores operation, and this is their specialty, the specialty of Síntese Soluções, to give retail customers access to omni-channel solutions.
We are also working on consolidating all our enterprise brands. This process is underway, and in the coming quarters, we will perhaps be able to announce our new brand, which will encompass all the companies of the group and tell this new storytelling and this new position that we will announce to the market. Now, a little bit about the synergies, which are very important. The larger our customers, the more we can capture these synergies, and the more important they become. Ideris becomes now the official integration driver of marketplaces at Tray Corp. Ideris was an acquisition that we made a little over one year ago, and today is one of the main integrators in Mercado Livre. Tray Corp already had its marketplace integration module. We actually eliminated the duplication here, and we are now promoting Ideris as the official integration driver for marketplaces.
We are also boosting our efforts with two Samurai products. One is the Seller Center. Tray Corp already has a marketplace feature, and Samurai's Seller Center is very important to help us maximize our results. We're going to put a lot of energy in the developing and enhancing of the Seller Center. Also, Samurai already had an integration bus integrating Locaweb's products with other market platforms, other ERPs and other tools. We also believe that this is a very strategic product that we want to have in our portfolio. Samurai is putting increased energy into consolidating this product from now on. We are also consolidating all the engineering products of Ideris and Samurai in the TrayCorp team. This way, we'll be able to unify our product roadmaps and tap the most synergies between these three products.
Finally, Allin just launched a CDP or a customer data platform. We are changing our positioning dramatically. We are no longer an email marketing firing platform. We are now a platform that offers much more to our customers because we can have a unified and individualized view of each of them. Now I'd like to hand it back over to Fernando for his final remarks. I'd like to thank Alessandro Gil, Willian and Higor. As you could see, in one quarter, we had a lot of deliveries in terms of products, and also our integrations are advancing really fast. Just some final remarks on my side. On slide number 34, I think the most important takeaway from this presentation is that the company is very committed to its budget plan.
This is the culture of the company, Locaweb, and we will keep striving to deliver according to the plan by the end of the year. Our company is always generating growth, but our growth is always focused on profitability. Our acquisition plan was very assertive. We bought the right companies at the right time, and they are bringing a lot of contributions to the company's growth. We also have monetization that is not so GMV dependent. This means that we are delivering growth, we are monitoring the GMV, but we are able to deliver growth well beyond the GMV, both our own GMV and the market's GMV. Our ecosystem model has been really assertive. It brings us higher profitability, good retention of clients.
It helps us expand our addressable market, and it also adds new sales channels through the new companies. Finally, we have been showing high integration capacity, given that most of our acquisitions were completed less than 18 months ago. I stop here. I'd like to thank, once again, everyone that contributed to these very good results, and now we can open the floor for questions. To ask a question, please send your question using the Q&A icon. You can find the icon on the bottom of your screen. Your names will be announced, and you can ask your questions live. Our first question is from Bernardo Guttmann, sell-side analyst of XP. Bernardo, you can open your microphone now. Good afternoon. Can you hear me? Yes, we hear you. Thank you. Thank you for taking my question. Actually, I have two questions.
The first one is about your consolidated margin. I think this was the main highlight of the quarter. You showed an important recovery. Can you give us more information about the second half? Will you continue to see a ramp-up of this synergy capture? And also, if your CAC is contributing to your margin recovery. The second question is about your BeO nline and SaaS performance. I want to understand your seasonality, particularly for your organic margin and the trends looking forward. Can you hear me? I'm sorry. We had a small technical glitch. Thank you, Bernardo, for your question. I'm going to answer, and then we're going to give you more details about BeO nline. It's always important to stress that our consolidated margin dynamics has three major vectors with different dynamics.
We have our organic margins from commerce and BeOnline SaaS, and we have the margin from our acquisitions. For a few quarters now we have seen good margin consistency both in commerce and also organic BeOnline and SaaS. When I say consistency, of course, there are some quarterly oscillations, but we have some clear trends. The recovery of our consolidated margin will be through two vectors, the commerce segment, which is growing more and the revenue numbers make it really clear. You have a mixed effect that is contributing. It will continue to contribute. It's a mathematical effect. We have a second relevant point, which is acquisitions that are gaining scale. We always make it really clear that our acquisition plans initially they require investments.
Of course, there's a logic because the margin will recover as the companies grow and gain scale. This is what you have been seeing in the past quarters and the business plans are being met. These are effects that will have a positive effect on the consolidated margins of the company. Your second point was about the CAC. I think we have a CAC dynamics that is similar to. Our additions continue at a very high speed. We have been bringing a consistent customer base, very similar numbers to what we had in the past few quarters. Also the organic, customer base growth and without having to increase the CAC. But we have a CAC dynamics that is similar to what we are seeing in the past quarters. Now Higor is going to talk about BeOnline.
Thank you for your question, Bernardo. We understand that the BeOnline margin will always gravitate at about 20%. The trend is that this margin will oscillate discreetly, but it will always be close to 20%. These oscillations quarter after quarter are totally natural due to the nature of the products. BeOnline depends much more on the IT infrastructure, third party software and cybersecurity than commerce. We have cloud computing products and technology services that are more dependent on this type of cost. Of course, these costs will oscillate due to seasonal aspects. We have contracts being renewed in that quarter or a negotiation cycle, which is a little more consolidated in the quarter, for example, with Microsoft and other large vendors. That's why we see more fluctuation in our margins.
Our expectation is to have these margins much closer to 20% looking forward. Okay, thank you. Very clear. Thank you, Bernardo. The next question is from Marcelo Santos, sell-side analyst of JPMorgan. Marcelo, your microphone is open now. Marcelo, you may proceed. Good afternoon, Fernando, Rafael, thank you for answering my question. About Squid. I want to know what is Squid's capacity to work with smaller customers, and can you please talk about the acceleration we saw in Squid this quarter? The second question is about Melhor Envio. Can you give more details about the change in the commercial model that you mentioned? Marcelo, I'm going to start answering, and then Willian will answer your second question about Melhor Envio. Hello, Marcelo. Good afternoon. Thank you for your question. In quarter two, we had an important resumption of larger advertisers.
We have an important strategic process here to consolidate the product so that it can also meet the needs of smaller customers. We have an initiative that we are expanding in the past 2 months to e-commerce platforms, focusing on performance and not just branding. We have high expectations for the growth of this market in the coming periods. Thank you for your question about Melhor Envio, Marcelo. Just to recap, the business model of Melhor Envio is to establish contracts with the carriers, wholesale contracts with the carriers, and then pass on to merchants a higher discount that they would have compared with the conventional fee. We have a spread that is kept by Melhor Envio. Melhor Envio's business is the spread between the cost of the carrier and what it passes on to the customer.
The change in the commercial model that we mentioned was that we created a new technology to be able to segment this pricing, because until then, the spread and the discount was the same regardless of the size of the customer. Now Melhor Envio can segment the customers, and smaller customers with a lower shipping volume will now have a higher price. The discount will be lower and the spread that Melhor Envio keeps and then the recognized revenue increases. On the other end, customers that didn't used to use Melhor Envio because the discount was not so good. Larger customers can have higher discounts, and although what we keep is less in these cases, we are seeing new customers starting to use Melhor Envio with a better discount.
Now we're working with clusters, and in some of these clusters had an increase in the margin that we recognize as revenue, which is the spread. Perfect. Thank you. Oh, just a follow-up question about Squid. What is the expected timeframe until you see a larger share of smaller customers considering your strategic initiatives? Hello, Marcelo Santos. Hi. Yes, right now we are precisely having the MVP of the product. Of course, we are making the adjustments because the markets are totally different, so we don't really have a specific timeframe that we can give you. But in our next earnings calls, we will be able to give you a better estimate of where we are heading. Thank you. Thank you, Marcelo Santos. The next question is from Fred Mendes, sell-side analyst at Bank of America. Fred, you can unmute your microphone now. Go ahead. Good afternoon, everyone.
Thank you for the call. I have two questions. The first question, I want to understand a little bit more the dynamics of Vindi. We saw the financial impact of BRL 11 million at the delta of BRL 7 million for, compared with quarter one. When I look at the Vindi revenue, it was BRL 9 billion with a delta of BRL 1 million only quarter-over-quarter. I want to understand what is the dynamics of the Vindi product and the accounting impact that you mentioned. The second question, actually, I want to test a hypothesis that has to do with Bernardo's first question. When you acquire a company, of course, after you buy a company, you make the investment, and after you finish paying the investment, the margin will be even sometimes even lower than before you bought it, because then you can scale up, right?
When I look at Bling plus Melhor Envio accounting for 50% of the revenue of the acquired companies and growing at 20% quarter-over-quarter, this, it looks to me that you are in an escalation phase. You should see an acceleration in terms of improvement of your margin in the second half of the year, considering the basis points that you had in the first half versus the end of last year. I want to test and see if this hypothesis makes sense. Hi, Fred. This is Rafael. Your audio was breaking up a little bit, but I heard two questions, one about the product dynamics for Vindi and the second one about scale gain and acquisition. Let's start with Vindi. What is the dynamics of the Vindi operation?
In Vindi, we have had this operation for a long time now as EFA. It was always an operation that had reasonable stability. It had a take rate dynamics, working capital and acquiring cost. When we bought Vindi, one of the strategic factors in terms of synergy was to bring a lot of TPV to the group and be able to transact this TPV within our solutions. Always following a logic of offering technology solutions and leveraging the GMV that these technologies allow us to capture with our sub-acquisitions. We showed some charts that showed that more than one-fourth of the TPV already comes from the capture of synergies. Of course, these products have different dynamics when we compare purely with digital sub-acquisition. For example, for the foods and beverages market, we have a different dynamics.
The take rate follows a different logic, so you can have a lower acquisition cost, but you also have a lower take rate. In the end of the day, these are very synergic operations, very profitable, because in the end of the day, we don't have the acquisition cost. They are no longer just purely the capture of acquisition or sub-acquisition as a payment intermediator for the commerce platform, but a potentiation of the TPV throughout the entire ecosystem of the company. Your second question, you're right, growth will bring us scale. I don't want to go over the second half itself, but I go back to that concept. Our recoveries or margin accelerations in all our acquisitions, they are dependent on growth and scale gain as a consequence.
The cost basis for practically all our acquisitions, except for one or two businesses that have intermediation, is through the hiring of people. It's costs with personnel and technology, and this cost you end up diluting when you grow. What you can expect is that we will keep going for profitability and margin gains as we gain scale. Perfect, Rafael. Very clear. I have one follow-up question. When I look at the commerce margin, we saw some acceleration in your growth, an increase in your margin. I want to understand if that's more or less the current structural margin. Because when I look at the history, you've had numbers of nearly 40%, but this had a strong correlation with COVID, with the positive impact you had during the COVID pandemic.
When you had the numbers of over 40%, of course, your cost will be the same and the growth will help the margin. Did you have any effects of cost reduction during the COVID pandemic that helped you expand your margin? Hi, Fred, this is Fernando. During the COVID pandemic, what happened afterwards was that we wanted to maintain the addition of new stores, thus maintaining the consistent growth of our recurring subscription base for commerce. What we did was increase our investments in customer acquisition and new product development. In this call, you see that we spent a lot of time, both Higor and Willian spent a lot of time showing how much we're delivering in terms of products. This is already a consequence of these higher investments that we had starting in quarter three last year.
It's not that we cut costs during COVID. What we did was we increased the investment in products starting in quarter three last year. We increased our investments in marketing, which led to this decrease of 42%-35% in commerce. We are working now closer to 35%. Probably for next year, the end of next year or this month, we reach 36, and these are natural oscillations that we see, as you heard from Igor, natural oscillations that we have for BeOnline and SaaS, 34, 35, 36. The same thing for BeOnline and SaaS. We don't even say there was an increase when it goes from 35 to 36. We don't even highlight that increase. We're working with 35.
By the end of this year and the beginning of next year, with the operational leverage, we expect this to start showing some margin increase. It wasn't really a cost reduction during COVID, but actually it was the marketing investments and product investments that we made. This is actually a huge merit because with the reopening of the economy, we keep selling at the same levels we were selling during COVID. Even with the reopening of the economy, our commerce store base is growing linearly and strongly. This was actually. There was this. Our margin went from 42% to 35%, but we did this in exchange for constant growth. Thank you. Our next question is from Luma Matos Pires , sell-side analyst at UBS. Luma, you can unmute your microphone now. Good afternoon. This is Lucas Chaves from UBS.
Thank you for answering my question. My question is about the competitiveness of your commerce division in the second half of the year. Now that you're implementing new initiatives, are you expecting increased competitiveness due to that or increased competition due to that, and how are you positioning the company for that? Willian, can you answer that one? Yes. Thank you, Lucas, for your question. We have been making all these investments, particularly with integration, so that the Tray platform can more and more become the top offer in the market. I think that this is a target that we are achieving, maintaining the share of acquisition of new customers, maintaining the same CAC. We expect that in the second half, we will continue to see the same levels and then continue to grow in acquisitions.
This doesn't really affect the customer acquisition because the platforms that compete with Tray didn't really undergo many changes. We see that our offer is becoming stronger and stronger. There's no other platform in the market that has free of cost integration with marketplaces. In Tray, we have all the M&A integrations that were already completed. This was very well consolidated and integrated into one single dashboard. I believe that we will continue to see this very good performance, and we don't really see an increased competition. We are actually distancing ourselves from our competitors because our product is a distinct product and has a lot of differentiators in the market. Thank you. I have one last question. In BeOnline and SaaS, you've defined your margins really well, but how do you see your customer base looking forward?
Do you see stability? This has to do with the first question. Do you see stability at about 398? Hi, this is Higor. We think that the BeOnline customer base in quarter two had an effect of updates because there was an exchange of paying customers for free of cost solutions. In BeOnline we only show a snapshot of the paying subscribers, right? That drop is due to that migration, which started in the beginning of the year and intensified now in quarter two. We understand that this movement, customers moving to free of cost solutions, is slowing down now. We already start to see slower speed in this migration compared with a few months ago. We expect to find a point of stability.
The SaaS products are growing at a very interesting pace, in line with that of the market. There should be an offset and then we should be some balancing of the customer base in the coming months. Thank you. The next question is from Thiago Kapulskis, sell-side analyst of Banco Itaú BBA. Thiago, you can unmute your microphone now. Hello, can you hear me? Hi, Thiago. We hear you. Great. Thank you. Thank you for the opportunity to ask a question. I have two questions. My first question is about Performance Max. I covered Google for a while, so I'm very aware of the product. The feedback that I got was that this product was very appealing for small and medium businesses, and was a good competitor for Meta.
I have two questions here: Do you think this product is truly competitive for this type of merchant? And do you think that this could be a relevant driver in the top of your funnel to bring new customers and new revenues? And also, do you have any partnerships with Meta in this sense, considering that the target is about the same? Hello, Thiago, this is Willian. Let me answer your first two questions. About PMax. Yes, we have been seeing very satisfactory results and receiving positive feedback from our customers who say they're very happy. This is mainly because our integration optimizes the investment, so their products leave their inventory with an integrated method in real time, and then it stops being published in the Google network. Also the development and innovation that Google is offering, prioritizing higher conversion advertisements.
In addition to the campaign aspect, there's also recognition of the results. For every sale, we'll let Google know that a product was sold, and Google will understand what is the best customer profile for that store and optimize campaigns. What can this bring in the long term? It is certainly a great differentiator for small merchants, because larger merchants can have an agency or a team to make these manual adjustments. When we talk about small merchants, they don't have the means to do this type of management, and many of them weren't even campaigning on Google. This is indeed a great differentiator. We don't have any revenue directly attached to the results of the campaign, and this has no cost for our customers. We have two growth drivers. First, increased acquisition.
The platform becomes more attractive because of the tools it offers, and we expect this can help us consolidate it as the main platform in the market. We already are the main one in GMV, so we want to become stronger and stronger. Also an improvement in the churn and maturity of our customers when they start to sell more. We have two indirect effects that can improve our revenues. About Meta, we do have a strong partnership with Meta in many of their products. For example, Facebook. We also have integration with the latest APIs, Facebook Ads, Facebook Shopping, and also Instagram. Recently we announced an integration with the official WhatsApp APIs, and this was a partnership with the Allin team. They developed this integration, and they brought to our SMB customers the integration with Allin that only our large customers had access previously.
We have this integration of intelligence and behavior, and I'm going to give you an example which is an idleness campaign. If the customer doesn't visit the store for 30 days, today we can activate this customer through WhatsApp. Also abandoned shopping cart campaigns. If the customer leaves products in their shopping carts, we can, in 30 minutes, talk to them on WhatsApp and invite them to buy, offer them a discount using templates that have been homologated by Meta. Today, we have a strong partnership with Meta, Google, and all the Big Techs, and this will further increase our sales in our own stores. Of course, this will lead to increased revenues, like I mentioned in the case of PMax. Very clear. Thank you. One last question, a very brief question about the CDPs.
I was in the U.S. earlier this year, and I saw a lot of companies trying to enter the CDP business. There were some problems with the cookies, but I want to just better understand the rationale. If the rationale is to have a solution so that a company can have their own data or maybe a data repository that will bring more synergistic gains between customers. If you have this larger data repository, if you can think of data analytics strategies in the future. Hello, Thiago, this is Alessandro. Thank you for your question. We are always. Well, the tool is already prepared to receive 3P data, but we are not ready to enable this type of integration because right now we're very focused on data from the retailers themselves. Not just online data, but also offline.
Today, CDP is already prepared to receive buying behavior or shopping behavior information for virtual commerce and also for brick-and-mortar stores. It will return you behavior analysis, customer behavior analysis based on that. In the future, we should advance with those features that you mentioned, analytics and also other types of data. All right. Thank you. Thank you, Thiago, for your question. With no further questions, this question and answer session is now closed. Now I hand the conference back over to Mr. Fernando Cirne for his final comments. I'd like to thank our shareholders, our employees, our customers, sell-side analysts, and everyone who helped us achieve these very expressive results in quarter two. I'll see you again in three months to announce the results of quarter three. Thank you. Have a great day.
Locaweb's quarter 2 2022 earnings conference call is now over. Thank you all for attending. Have a great day.