Dennis Herszkowicz, CEO of TOTVS (Leandro Fonseca/Exame)
Repórter
Publicado em 21 de outubro de 2025 às 16h39.
TOTVS has experienced accelerated growth in the last few years in a market that is already expanding faster than Brazil's economy.
“The software management market grows, in many moments, at rates of 1,5 to 2 times the nominal GDP”, affirms Dennis Herszkowicz, TOTVS’ CEO, during the podcast “De frente com o CEO”.
According to him, the combination of strategy and execution explains why the company keeps a rhythm “above the GDP”, with annual revenue surpassing R$ 6 billion, an EBITDA margin at around 25% (around R$ 1.5 billion) and a quarter of Brazilian GDP circling daily in its systems.
Founded in 1983, TOTVS is a 100% Brazilian company and leader in the development of entrepreneurial management systems (ERP), which is nothing more than a software that connects areas such as finance, accounting, fiscal, purchases, stock, logistics, production, sales, and human resources, making sure all of them work with the same information in real time. TOTVS also offers solutions in front-office, financial services, and data intelligence.
Present throughout the national territory, the company serves businesses of all sizes and sectors, employing around 13 thousand direct workers and maintaining an extensive network of franchises and partners that reinforce its local presence. With an estimated market value of R$25 billion, TOTVS appears among the 35 most valuable companies in the country and is considered one of the leading exponents of national technology.
The cogs of TOTVS’ billionaire growth is in product diversity, as well as in the channels through which it services its clients, which has also become a competitive advantage.
The company operates with its own teams and a network of exclusive franchises that covers the country, which, in practice, means physical presence in every city with over 200,000 inhabitants. Herszkowicz compares the model to McDonald’s quality pattern.
“The client doesn’t want to know whether the McDonald’s shop is the original or a franchise; they want the same experience, at the same speed and the same result, be it in Chuí or in São Paulo”, affirms the CEO.
This proximity accelerates projects and shortens implementation time – a leverage that TOTVS has systematically utilized.
“Implementations that used to take thousands of hours, today, mostly happen in a few hundred”, says the executive. “The effect is direct in total property cost and investment returns.”
The migration to SaaS and the cloud is another key element of this technology company's efficiency.
"It's not just a business change; it's engineering. To run well in the cloud, it's like 'slimming down the software,' refactoring code, optimizing resource consumption, and ensuring performance at an appropriate cost. It’s also the necessary step to organize data and enable the adoption of artificial intelligence in an economically productive way."