VSTA - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is Novi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vasta Platform Third Quarter 2024 Financial Results Conference 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.

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

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

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

The this in to as of the are on us based forward-looking statements today. information available presentation

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

In considered addition, measures to with prepared measures accordance intended on are as not may non-IFRS be financial call. in The this isolation substitute for financial or IFRS. a results reference in management non-IFRS

to now turn over would Silva, call CFO. like I Cesar to the

Cesar Silva

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

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

Guilherme Melega

cycle. #X our would for call. with like Slide participating cover Thank in you, sales our I all of Cesar. some XXXX highlights release Thank to you earnings

the cycle, in to cycle, sales BRL cycle X.XXX over current end X% pleased are with sales XXXX revenue last revenue. a revenue to subscription a billion. growth of we the net reaching of ACV report the conversion cycle, into concluded mostly the Vasta XXXX XX.X%, due achieved has As the net sales of we our approach growth that

a continue in last rate cycle Complementary to the with compared XX% expansion highest BXB segment period solutions growth the same present to year. among our the

adjusted an This Moving In X%, increasing and improvement margin to the experienced adjusted to cycle, while reaching in profitability. benefit a was gains of EBITDA in XXX efficiency BRL mainly million, driven savings. operating from XX.X%. EBITDA XXXX products growth margin increase gross premium cost by expansion, company's our

achieved In have million, BRL cycle seen XXXX, we totaled related cash QX, for stability be flow free increase sales QX. and Finally, some a have our cycle. XXX in we above-average to paper million. reduced flow BRL cash XXX which XXXX, which payments slight the from In will printing, to

represented BRL #X. amount annual during sales the bookings sales to XX.X% cycle. to cycle for billion, and This The of a on cycle into our expected of sales conversion X.XXX slightly Moving sales based previous value, disclosure. XXXX XXXX higher Slide than ACV contract comparing achieved contracts growth the was revenue

our mentioning resilience for a be Our for double premium X cycles showing to the in of XX.X% our growing years. and continued was complementary last that higher and worth to products. It's top performance CAGR growth, several our capacity keep brands digit

I the the back about of quarter. now talk to results to will financial turn Cesar

Cesar Silva

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

with in of sales million, XX% of BRL the compared in which of now this million. for total of a year. Non-subscription, represents only in revenue lowest third third million. in the year dropped And always is the the -- X% Remembering BRL achieved net the and decreased BRL year the third On volume the in during the XX total by to Vasta third of segment revenue revenue we XXX did the subscription expectation the line quarter in year. the the as it XX.X%, third XXXX, this for side, can reaching XX year-on-year [current] in which the you left can observe second to quarter revenue. XXXX, X% quarter increase not million last you quarter, represented the the growth cycle. And BRL organic XXX in generate slide, the quarter, new see quarter in

However, in in decrease to means considering revenue of cycle, the of quarter the the XXXX. performed XX% the million revenues, achieved BRL which comparing net year, we sales a first XX of

to continues our of Non-subscription of the XXX achieved contributor the XX% share. revenue an cycle. Moving of factors sales to And our dropped in the the cycle, revenue the and net were: revenue revenue, subscription achieved expected, to performance has to amounting X% revenue slide, we growth this this cycle. sales represents as total the XXXX right revenue, side billion net the X.XXX X% increased [indiscernible] the revenue BXG organic The X.XXX BRL analyze exceptional the sales of for revenue first, BRL main major of net total overall to BRL reaching BRL billion. We XX.X%, XX to be representing million in million.

Moving to due XX from EBITDA of BRL of million XXXX, lower revenue related to this in adjusted to quarter, Slide our the to a the XX segment. in BRL In decrease XX% the mainly BXG million, this #X. quarter quarter amounted third

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

Let's of on to slide and the breakdown next the adjusted now margin. move the EBITDA explain

we has in observed there Slide XXXX in margin XXXX. cycle, of EBITDA points sales the #X, X.X achieved and that XX.X% an XX.X% increase percentage from been in So the

a sales stable from expansion, year for X.X increased having despite cycle. credit landscape Our efficiency in doubtful and was Provision initiatives. product difficult between gross premium accounts this better margin the benefiting gains synergy cost has points, percentage

budgetary by optimization, discipline to workforce by business percentage G&A As driven X.X a revenue, And percentage of of commercial XXXX. related driven points, commercial measures. adjusted expense expenses to improved increased mainly net our higher expense expansion the X.X cycle points, by by percentage

XXXX. quarter XX million, net BRL to totaled the quarter we a Moving #X, the third compared decrease XXXX, of BRL XX% losses in the show adjusted net of adjusted Slide in to of million same profit XX that

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

Moving XX to free show the decrease X% BRL we Slide free X, quarter in to that million cash representing comparing evolution flow third XXXX. the BRL XX flow of a XXXX, of the totaled in cash million,

by side to from seasonal impacted in of payments the the these printing in negatively sales of was The in previous performance the where X occur part XXX third flow volume and the flow that year. XXX right compared slide, and the the million BRL our of year. free related of paper stability showing the a quarters in BRL the last cycle, cash BRL of On an cycle, the XXXX, second million increase reached XXXX cash of million, higher payments of to quarter purchase the in

It's cash year. volume end of worth the year double-digit consequently, lower And achieve that payments flow quarters. to we mentioning of net a to we production-related foresee for growth last a expect comparing following -- free the XXXX the in in

million, the for to PDA in Total net Moving third XX million X revenue representing provision with to accounts. totaled X.X% slide, the BRL expense the doubtful we comparable quarter of of compared in quarter. an next of XXXX show BRL expense

built brands XX BRL was provision of showing was million XXXX. credit the doubtful the cycle, in PDA the the XX in -- BRL net very challenging, compared total the sales business. stability million amount XX the non-premium number accounts cycles. in X.X% for revenue despite for for For represents strategic both of to The PDA landscape a

Moving lower to we than in X with the quarter line that the seasonality in observe next portfolio of the XXXX, third which of our receivable XXX comparable days quarter days the model. of Vasta's average payment business slide, terms account is was and the

Moving to Slide #XX.

net look closer a the take on Let's movement. debt

XXXX, than and of quarter. X.XXX reduction quarter of higher from had was interest Vasta XX made the financial costs, a Free third quarter. total this the position possible billion, cash of the net BRL debt flow this debt decrease in in a net million BRL previous the As

the also quarter repurchase the net interest by offset of cash position the million. partially costs this free period. of which positive XXX the program, to second cycle, the of at In comparison BRL increased beginning flow by from third BRL were in financial This driven XXXX, was XX million BRL debt million the increase XXX

showing XXX of my in it part the BRL which which represented XXX last quarter. to a company the the X.XXx amount conclude quarter, XX, this our ratio from explain parent stability this from detail now to of business BRL slide, of quarter the million. of adjusted about XXXX, and for that X.XXx. at And XX presentation last lower This the EBITDA will with has X.XXx, quarter X.XXx. -- months of XXXX, more decrease some the amount is the totaled of BRL can to combinations, debt net account third the this issued XXX billion the the end indicator part debt third I just increased of represents quarter Slide of cash compared in availability, which BRL by million, stands payables and left composition, In improved at we million reduced debentures our see net by has X.XXX composed

said, to Guilherme Melega. With our word CEO, pass that being the I

Guilherme Melega

this our our with platform growth Start our Cesar. with I our updates to expansion you, launch and strategic franchise excellence a Thank Anglo, Starting up streams. new model to signifies ramp new of revenue some about continues initiative will bilingualism combining academic give avenues Plurall. in in

month, We robust contracts have as keep The and this for date, the XX pipeline penetration the new every over signing Start contracts we already of of strong pace further growth Anglo. market have prospects. XXX and underscores and of potential signed we

we revitalization capacity, the commence historical besides São operating architecture Complex. preserve quarter, in Last X,XXX unit Paulo flagship launched will in this the project to creating design, with expect student we of and operation XXXX. Liceu the our project And entire

Julieta; Rio Liceu and José we're X total São and new we Granja the going And achieve our Luis X Magalhães, provide Eduardo Paulo; units all do for with in and high-quality Alphaville, franchised of units units. XXXX, a to in service the operation, São Jardim students. Marajoara; Pasteur our have In running together complex, will Piracicaba; Preto flagship education

next growth see look can this XXXX, results important forwarding in launching we Vasta already of of expressive the avenue After to see years. and

result SAEB talk XX. in exceptional the Pará. to Moving I'll Slide about

SAEB. SAEB can education system Firstly, is national basic an the I exceptional explain last I in ranking. the what large-scale state a would say to And of Pará simple that Brazil. is the in showed that in Such a of it result like for assessment way, improvement

got the excellent for increased students these years And high last by in Moving XX% from in the XXXX the to XX the scores exam. results school to XXXX of students sixth comparing The exam the well. position exam as from place besides students. elementary

the use at the for highlighted used in remember, were implement our XXXX, To we and to Plurall technology was of impressive our We to and we state managed proposition. help tests as aiming customized achievement, the by of platform. this learn, most recomposition able And teaching the training, to core value to Pará a we contracted preparation achieve with beginning of the results. to solution significant throughout over And skills this XXX,XXX media. were performance validate students Pará's large-scale important SAEB.

Moving to XX. on Slide

school in Intelligent like We I intelligence innovation our all months, disposal of implemented great [indiscernible] this launched we the have the year several integrated recent artificial platform. starting tools. and would the beginning through teachers and managers high success to and XXXX, our presenting Assistant at validating schools remember receptivity. employees, Finally, the that with the at at have their will conducted our trained and demonstrations In

scripts related decides Plurall all material. AI from excellent classifies preparation, Plurall interaction gathered each content your Building creating its response. knowledge we best systems tool on a and guides. dynamic separate content, create itself our AI students' several and teacher generate offering lesson and AI searches our brand request, all basic This and summary, presentation, bases understands more innovation students educators learning. for student prepares enables empower teachers and In aims groundbreaking divides, by process the is the efficient this to to With education learners engage, Generative knowledge help reshaping enhance teaching experience. question and how plans, develop supplementary images, and in education and This lists

our said you session. I Q&A that, invite Having finish and the to all presentation

Operator

the Lucca first question comes Marquezini Itaú. line [Operator from with of Instructions] Your

Lucca Marquezini

We X side. have from our questions actually

regarding be would BXG one unit. First the

another unit. saw we from revenue this coming of business quarter So no

on this color help So quarters if the you to for us could more provide upcoming try just project the will very line this helpful. going schedule be to forward,

in increase saw And commercial expenses also cash regarding the an and the expenses, for quarter. we

reasons the very normalized help will if be forward? helpful. this could would us going understand So what the you behind be increase better This and also level

Guilherme Melega

Lucca. very Thank you much,

yet. did secure with start new Yes, me the Let BXG, contracts not BXG. we

municipal revenues we pipeline, for October, but in on XXXX. expect heated Given we was in a postponed, elections the and QX BXG very Brazil in have contract classroom to recognize

is As important guarantee since on But we anyone sized. revenue very very any a very can heated postpone not now, mentioned we earlier, growth. sign are pipeline yet, by I a BXG have will that. I we contracts The to but did guidance

commercial Regarding your second commercial are expenses we expenses, question increasing increased growth. about we because the

growth We sound complementary good next have more are also very we to the products. But we XXXX boosted on growing are since learning commercial a level years. a we expenses. reaching and fastly, commercial of secure by coming are double-digit believe very cycle, sales expenses for And systems premium investing we

XX% this revenues -- our going be our XX% will level around of expenses, expanding been probably commercial have and on forward. We

Operator

question the next Santos Marcelo comes of line JPMorgan. from with Your

Marcelo Santos

I question in Or first the would one your to about worth competitive any was that other wanted main did change Did significant environment. be is of environment thing private. the any highlighting? The there since ask that change? you competitors Like went change

cycle. color And indicator. to the sorry, the next that us some -- of GMV directional I give but ACV is now, for up going could if maybe you not shaping report know a you're how the

Guilherme Melega

the on as thanks didn't competitive will ACV. are question We for X Marcelo, any environment. But well second -- competitive definitely having very It's a your industry. on much change see the and comment we I in our questions.

since we a portfolio strong We and are for brands. we are with launched our premium Plurall year, and AI, all And brands, pricing entire the it next technology we the leveraging this ACV. on launching it we very the have are the for platform,

for the -- system plus So premium keep robust a high the we very double-digit complementary growth. learning that XXXX, very cycle, good have together with a pricing products commercial learning

XX.X% So last putting cycle. previous We all together, our recorded definitely from the a just cycle. expect we higher growth from growth

We forecasting double are for digit higher definitely next the cycle.

you. best think for can the that's now, give I color I

Marcelo Santos

double digit. Higher Okay.

Operator

now Instructions] [Operator remarks. to CEO, I Guilherme back turn will Melega, for over closing the call

Guilherme Melega

all call. much on you QX very participating for Vasta earnings Thank

We pleased we to share company. good are in with that momentum the very you leaving are the

side QX. and prospects. lot a strong. we performing heated helping for about the from delivered units definitely have the Pará is pipeline, are to and is close new growth expect business very we Our BXB we great also very do And deliver contract, XXXX. BXG significant results that on revenues our to And us a for secure academic and on contracts,

operating in Start Anglo XXXX. contracts, X X reaching XX signed XXXX, to in units moving units operating

are for robust we creating good momentum a and very a up platform to XXXX. very So

much on very earnings our to forward you talk in next Thank participating. Looking to you call.

Operator

for Ladies call. that all joining. and gentlemen, today's Thank concludes you

You may now disconnect.

Vasta Platform Limited (VSTA) 7 Nov 242024 Q3 Earnings call transcript