VSTA - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello. Thank you for standing by. At this time, I would like to welcome you to the Vasta Platform Second Quarter 2024 Financial Results Call. [Operator Instructions] Before we begin, I would like to read a forward-looking statement.

During today's presentation, our executives will make forward-looking statements.

actual to known future and these and that cause relate performance or other forward-looking generally materially may both differ in unknown our statements. statements future contemplated financial events, operating factors from Forward-looking those to by results risks, uncertainties,

expectations related for product Forward-looking in our future benefits, expectations our strategic statements periods, and include business their and and not limited but our the statements our are financial initiatives related presentation to, this market. to regarding performance, expectations regarding

statements The fully are in our set today presentation the those that on risks our this based and release filings on management's information issuing as those assumptions are based Forward-looking more well management. on beliefs information as to today. described forth include statements to of forward-looking us the press as are and in in the currently Exchange our available Commission. available with we Securities and These

You any of should as law. not rely and statements, to required any obligation we except by predictions forward-looking events, future update on them as disclaim

accordance substitute on results turn may be now the in measures are Cesar Vasta's a non-IFRS to or financial Silva, not The to IFRS. with considered CFO. being call. that said, addition, management I as financial In intended non-IFRS in reference to prepared With like this isolation measures for would conference over

Cesar Silva

be Vasta you Platform's and joining will the call. everyone, and I'm thank Melega, of have joining Vasta's to CFO; for of Second Silva, the on Quarter CEO, presence us conference XXXX discuss we evening, today, Good Vasta's this me Cesar in call who Guilherme results.

his to statements. to Let Guilherme me floor over now Melega, opening our CEO, hand make the

Guilherme Melega

you, Thank Cesar.

on Let's #X. Slide start

of the revenue net end Vasta cycle, to in BRL achieved date XX% pleased billion. of revenue reach X.XXX with XX% the in sales quarter over has the increase into mostly the report disclosed conversion to a net this a period to concluded date, ACV to due previously we cycle, to product achieved Vasta of approach due cycle same the less of that are XXXX business. our deferred of of XXX second growth deliveries, to in BXG to of growth performance current which XXXX, million, the subscription we XX% BRL compared to As XXXX shift quarter. subscription the quarter second cycle revenue to revenue were and the XXXX the

date a of figure result for compared a subscription As X.XXX the the has XX% cycle billion, net which same Complementary increase of reached to billion, Solutions in represents compared contract growth the to among cycle present our XX% XX% X.XXX an the annual value BXG number, accumulated expansion XX% BRL This a XXXX. second-quarter period BRL significant growth in commercial estimated revenue cycle. sales the the to last year. highest previous revenue rate to to XXXX with continue organic segment the represents compared

increase was operating from efficiencies. margin, our reaching This cost, by the to in products, a increasing EBITDA Company's mainly to cycle XX%, a experienced XXXX better driven million, growth product of an profitability. the margin to gross adjusted while adjusted date, margin BRL reduction benefiting Moving EBITDA in and XXX In XX.X%. improvement

cycle to Finally, In million. we totaled our see flow. cash to in continue cash flow XX improvement XXXX, free BRL date,

to in the efficiency XXXX now of the I numbers. Vasta's million growth improved XX cash will rate conversion who flow and adjusted of months, last free financial see, cash back flow can results Cesar and implementation to increased XX% date. turn X% talk to XX in the XXXX. about of you Silva, cycle will result free In by XX% As from BRL from a the as EBITDA quarter

Cesar Silva

Vasta's net this you, In of slide, present we Thank the composition Melega. revenue.

year-on-year revenue growth revenue organic BRL On second a observe the in XXX million achieved can Total which This net XXX BRL by this in year. left represents revenue see compared And now sector to million it XX mentioned only government in XXXX. before. as revenues, X% growth quarter reaching million. in represents for quarter, BRL XX% quarter, number the on which slide, and of subscription Nonsubscription to X.X%, second the total the due this seasonality it the to revenue [indiscernible] quarter, as increased XX% side, you mainly dropped the generate X not did this you we total the of in represented last BRL million. can new in

first this date, line the quarter considering performing of of the However, a revenue we to XX% in year, achieved business. sales the in already the cycle in growth

the to XXXX sales the billion. sales analyzed achieved cycle of organic for net cycle we date, XX% of the the side The net main We date. Moving revenue revenue right amounting in work. to growth the to exceptional should an X.XXX performance slide, this BRL to factors

increase revenue contributor last overall represents XX% of reaching major revenue BRL BRL compared the there our revenue, X.XXX of subscription continues this sales the and BXG of XX% year. and X% achieved No the XX%, expected, to as in our the BRL business, share. cycle In to Firstly, line net XX% of XX to and has been date. to million subscription dropped million an has representing the billion, increased to revenue of revenue, X total revenue be

of doubtful large to EBITDA. of commercial amounted reversion talk provision the nonrecurring and quarter customer. XXXX, BRL to retail second mainly in in Slide can for of effects this million a a XX second the a costs decrease about quarter higher a XXXX related the a due positive accounts adjusted to XX of BRL adjusted to In quarter, our XX% #X. We from million, EBITDA Moving of

EBITDA side, the in XXXX X.X to XX% XXX percentage of that points by margin sales XX.X% the adjusted reached right cycle a above we to increased with On million cycle date date. see XXXX BRL and or

sales Slide and there #X, EBITDA we Let's from points side XXXX. In percentage next XXXX and observed slide an margin. of now achieved margin move date, been on EBITDA to breakdown of the that X.X to the the in has the XX.X% in increase XX.X% explain adjusted

global better benefiting mix that impact XXXX industry increased from costs gross product percentage line our the year stable quarter reducing by X.X the paper inventory as on costs. product our XXXX. for revised Firstly, credit was of with fourth a faced costs was in higher and margin years production points, on between far and has accounts Provision inflation doubtful caused landscape of the

budgetary driven net commercial by As by adjusted and increased marketing measures. points, mainly revenue, a our percentage improved percentage expense and expenses X.X to and by higher business driven percentage by related workforce X.X of points, investments, pension expenses G&A discipline optimization

show of profit. XX this totaled In of million, quarter net XX XXXX, in XXXX. Slide to X, decrease adjusted net we the XX% second adjusted to losses million losses BRL a adjusted compared net Moving of BRL

of right has the XXX of increase been BRL the sales an net reached BRL million. to the from On XXXX profit in XXXX slide, cycle sales side profits in of XX There net adjusted to cycle adjusted XX% date. date, million

show Slide cash flow the to X, free Moving evolution. we

to You million of flow XX% that million, the XX% in quarter second XXXX. XX XXXX, can decrease cash see compared and of the a XX totaled BRL representing BRL in free

owing and in foresee the a we expenses production effects, production-related maintain consequently, impacted cash free year-end. of negatively and effect purchase. of volume quarters main payments to costs, printing paper expect This improving effects: flow payments lower of a marketing by we for quarter following increased to related seasonal X Considering the and anticipation the to were XXXX these the an

On our increase On an flow the important area right XX message of BRL key flow of side reached last generation million, improved from BRL our cycle XXXX million adjusted of conversion to in free from our sales BRL the EBITDA to cash X the XX be in continues to cash reinforcing the XXXX. business. slide, to the million date, focus XX% free another metric, rate cash months a XX% X that

accounts provision and of quarter we the X represented X, quarter. PDA BRL expenses X.X% expense in revenue XXXX, Slide an net total in the compared of million to the second to show million BRL with comparable Moving XX doubtful totaled of for

doubtful quarter at second a achieved a related and X.X% to provision had order for PDA X.X% of of we for And increase quarter, in reversion to this effect we impacted comparable The this was second of X of a an XXXX we a percentage of effect retail. compared normalize to nonrecurring by if points. positively quarter, larger accounts the a calculate X.X

the this side for BRL X the slide, of premium brands. to XXXX we net points. strategy to and BRL represents cycle, The more increase doubtful X% restrictive to an revenue to as PDA to accounts there we focusing of before, compared doubtful of amounted right This is compared credit explained And landscape. increase the million has the sales cycle our provision X.X XXXX. for date in million a related Moving for a to XXXX contracts been on XX keep provision in accounts percentage in

payment the X higher to Moving accounts with the of which the of the average XXXX, than receivable portfolio is terms business quarter seasonability in our that was compared XXX model. line. the second days in days line of next We quarter observed doubtful

let's take to look closer on moving net movement. debt a So Slide XX, the

XXXX, debentures the quarter, stands decrease second payable financial debt BRL we free beginning the cash in free part interest in And left X million, decrease detail And of part for the presentation [ lower EBITDA sales conclude of billion the purposive Second X.XXx, net the Program, billion, indicator by of broad BRL amount of is consecutive X included last As debt total million cash net quarters having stability of it quarter and third this with BRL XX quarter, the the net the by quarter BRL a of by explaining previous In will The position XX after for almost of last to slide, net months at combinations, reduced my increased XXX month the the the XX the the in million million X.XXX which XXXX, adjusted a costs the offset flow BRL business the I represents to of compared second quarter. In some this partially from stability availability, among more RMB were X.XX XX driven totaled costs about of quarter BRL a from from our has to the of period. of decrease composed flow showing quarter. X.XXx. represented improved XX, now flow issue the end in accounts debt has XXX XXX X.XXx. at our cycle, comparison of X.XXx had of which debt Vasta BRL position Slide and this just from million. net XXXX, in interest which ratio the cash this BRL debt composition, XXXX in ] quarter, same by also and million increased a financial Repurchase the million,

Moving over XX the for 'XX related be 'XX right our of we to payables will the slide, side in related debt acquisition net present to to the and place years, with carried the of out the substantially the which take coming in maturity X debentures XXXX, parties, on. next years and the accounts

on It's strengthen the to at XXX% a of that debt action, of each mentioned not the Additionally, that XX our million. total existing our The series final a debenture interest set debts can debentures. word capital per the for With company's the BRL of with to to [indiscernible] X.XX% maturity CEO, debentures these to XX amount highlight net XXX structure debentures new worth The and CDI basis June, profile. that shares prepayment June. of this certain plus manage we to issued of currently we debt equal reduce said, average by being the According we to spread of an to pass of annum points. Melega. date rate payment convertible Guilherme company's months average I X from have the expansion is rate

Guilherme Melega

Cesar. you, Thank

Let's Slide the XX. slide, final move to

Let of an avenue exciting provide with growth me on you of our significant Vasta. update

annual Revitalization creating growth strong negotiation. sites geographic In over Start earnings presence the now flagship XX release, continues This Liceu the new ramp quarter, the we Since penetration in we future robust quarter, have last combining an Paulo. XX will capacity, underscore of the strategic streams. Start be of distributed our market broad launched contracts Anglo. preserved. and Complex, in Sao date. up historical operating for start potential and the which in entire with architecture states will excellence academic of Securely as and we with contracts, and signify across have this and project the mentioned in this to new design signed students X,XXX prospects XX unit our be launch revenue the pipeline expansion bilingual Brazil As XXX of last Anglo The franchise,

on on XX. the presentation the I we'll inform said to And Having pleased all will our event Q&A be finish for We enrollment are that, date, invite to also launching XXXX. August take campaign inauguration place our you and session. this

Operator

Our first question comes Instructions] ItaÃº. from Lucca [Operator Marquezini from

Lucca Marquezini

did that unit noticed in the revenue the business not contribute the BXG We quarter. to consolidated

So for for can more the the this segment provide expect this and vertical? of color should you of seasonality we year what please on second semester the

Guilherme Melega

question. Thank Lucca. you, record Yes, BXG. contracts any for Thanks did of your we new not

we only As mentioned large we network. before, prospect schools public

are QX like new for we recorded So for have million for maintain in contracts a in for BXG. reinforce do We to and a those revenue year, we very update business. would the come heated positive BXG and view XX QX. time. and takes expect BRL for year, to And that I contracts up Last growth That's we this BXG. expecting pipeline we this

Operator

Our next of Oliveira comes Mirela from America. question Bank from

Mirela Rodrigues de Oliveira

quick my a increasing? give A cycle, I still on ACV be have that. you know And to if there around is commercial us also the feeling comment could on the But would expenses. anything the on question Could clue side great. it's on next has this that year, commercial been on guys why you for soon here some

Guilherme Melega

questions. much, very for Mirela, your you Thank

Let give cycle. color sales me some about our you

We excited are semester. our very with first

definitely represents total last as same and all significantly But cycle. growing of know, year. We XX% the are from the first season semester sales XX% the normally between you

excited. really are we far, so So,

we'll are but guidance growing give rapidly, year-end. for cycle this at the XXXX sales We

your So good. far, more investing going commercial to definitely And are season. this about expenses, question so we on

have for We a XXXX. GTM new

are complementary and grow We accounts investing in learning fast to systems expenses products. key regional in

So good investing and the momentum are products. we and of market gaining systems the in complementary keep share learning

investing cycle, higher do XXXX. expect we a commercial XXXX. expect harvesting we growth and are the in can are sales for you XXXX, for significant So Since expenses XXXX we

Operator

Nagano Lucas Our next comes question Stanley. from from Morgan

Lucas Nagano

X questions. have I

The a first for the year. follow-up the on ACV is next

growth, to we If what behaving if And better how same competition break -- -- penetration we growth that increasing. And -- seeing on it's now more Start down you it behaved are Anglo. like we're this the second could this last driving related we know reaching year's? this is like it's the Or are is for faster is of if because that is year? what what's the is question

Your main some investment. a plan? perspective we similar competitive get And on your advantages. competitor wanted see in this to interferes And how announced business your where do you

Guilherme Melega

Thank you very much.

bit growth. more give me little ACV Let a color about you the

based Our growth is regional focus. on

on We share market have are focusing Vasta. -- share regions very we average the do market not that heavily of the owned

give has can enhance very been good on their share, about way to on where reasons, and are to strategy opportunities, a complementary investing the regionals, to that. momentum. we focus So we about grow do very having their thinking as and have for shown cannot color we community. schools I offer need market and that, complementary for grow competitive keep And more do but you themselves to Schools good products differentiate a a we

the that products to say would to a But own does has used new that I market. our complementary be We it in cross-sale base. belong sell not on base. schools to So our its now past,

ACV. from comes growth and the market from products share on complementary So regaining

about been last confident launched X investing our very business it Regarding are And for Start, years. we year. have we We it model. on

we growing. So strong to we that have very believe do base a keep

partner We've strong billing results competitive McMillan the developed the that comes schools. our based on results academic had our definitely has with Anglo advantage on very we shown with It's a exceptional that from brand. Our brands. and

Start, are this have be we that on to than -- old strongly we Liceu, do Paulo, August. and all a way -- are we And Start. are in of the that very flagship additionally, we we which it here school, traditional switching more sound very we'll grow very believe XXX investing launching is to a SÃ£o So month on years

believe -- a a our -- avenue is a are has growth do Vasta. Start future we and we that in very for So great business

Operator

this time. further at no are questions There

the over Guilherme So turn CEO. back I'll Melega, Vasta's call to

Guilherme Melega

Thank to participate QX you Conference Vasta Call. on all

sales business, very reemphasize are XXXX. that pleased for in our campaign Let me the BXB we with

have strategy a our results. And our also expectations expected about that. we the that. And year-end GTM have both new our contracts showing do BXG, we great ahead heated give is expect Start, pipeline, Our at We'll -- have And on on growing growth color we more soon. very great opportunities, and curve. keeps on to

avenues curves. our So is and of our growth core performing also doing doing both business our strategy and growth good, ahead are

QX. for that's So

QX to Conference see all. in Thank forward you Call. all Looking you

Operator

is now The meeting concluded.

You may disconnect. now

Vasta Platform Limited (VSTA) 7 Aug 242024 Q2 Earnings call transcript