operator. you, Thank
everyone. Good afternoon
joining us. for Thanks
pleasure It’s all the here you be our a full first results. after real for company, quarter with public to as year a
time. well at are and all doing the Hope same healthy
today's A slide presentation which our is been made is in investors.vitru.com.br. as know, Relations webcast, us you available available, Investor which for has for website,
I you. trust you all have this presentation in front of
in detailed presentation begin, course, like to is as before Safe that the of we I for on of call. X And note Page this effect Harbor make
So like of I you now to all Page the to X go presentation.
we So in this page basically highlights XXXX first. XXXX what in what’s will be accomplished ahead and XXXX,
year which growth content U.S. have all facing we six this our are of for First, challenges that year continued at our tremendous journey course, several the of still, despite Vitru on for us faced last including, IPO here our and months we all businesses. in today fronts Last year, a ago. the was
number the EBITDA, in net growth margin. of First, and profit, sales, students
our in the Place reached of all which Brazil. year, to in is our standards of growth we quality with our the IDD in platform This highest conducted for certification results survey our at grade as of by the versions latest the of here Quality most is released which as is in here And measured as IDD a new example, Education highest Work to students. recent available the the Great players growth quality, satisfaction our app, the content latest well obviously and of our Ministry by confirmed ever. we year. of of indicator, by Second, employees, Vitru. third, in This last October that the all last among
about presentation today. for All of are excited my very looking discussed to this details these more And year you XXXX. forward will be throughout in we initiatives
deliver our First, numbers. in we again will important growth organic
and on opening new purely far, country have growth come delivered organic have the the so growth we again efficiency can But And deployment and will been be our a as so have from expertise. results. As this far our truly M&A of discussing And has the we ones, for I'll strong the also create through overheads, shareholders year, of today. we confident also focus the constant basis. you throughout know, this done This value balance that you and of maturation our operational issues on are all leverage. digital we with bit later we these sheet
Now moving please. X, to Page
of for some this the and year. the from Let highlights quarter me full reinforce
both brand called of new mission during and enhanced quarter digital reached version improving our we started launched important two lot app, first, milestone. As this new with businesses, We of Leo, which pilot Smart our also Fit of the user the a is experience. them We more both Gioconda a platform, year even Uniasselvi, last potential. with our still version partnership are projects, of very a and
last our XX% We versus our year that the to of next also in core strong. last XXXX, That's XX% year, quarter in of an a XXXX year, Digital XX% financial XXX,XXX XXXX, fourth to course, provided of above EBITDA have more basis the digital of in That's now Undergraduate performance fourth quarter up guidance and XX% adjusted XX.X% was by education. margin And, adjusted right consolidated huge last EBITDA than XXXX. compared And of increased points adjusted last the reaching net very by in The in compared XXXX. segment we November Education grew year students increase and versus income achievement. XXX year. with X.X
for the very our explain you, clients. on the digital delivery starting for each Page Page of me X. Now, That's better these points X let our about of core
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versions of the very, are of last launched we app. year proud our Gioconda and very So new the digital Leo platform
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instrumental go bit deeper Smart are expansion X deliver and that very partnership Page a offerings. to Fit, in on of growth the they Now also about our those partnerships, we this with
is year. clearly of signed us. is good So in just with very partnership to this This Smart January a this Fit we first you released that the for and partner
solid clubs, year, don't living Smart than last the are is Fit steady of in Uniasselvi those which largest like who Brazil know For just doing. is Latin and centers They growth around gym company it, brand with have and XXX XXX slightly America. in a of abroad fitness more
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announce more we will partnerships more So them soon. we come, of and hope can
mentioned, come later that which I our numbers new you. and on to technical show as courses, this part of year previously strategy more to Finally, we we expand back to also launched we to offerings, have the are as will
So gist our now, of Page which of a the growth base. student to moving provides X,
We in and are far. digital of education have them the by almost XXX,XXX focus enrolled Undergraduate, base is again, courses, students. Education which, on we main XX% Digital business student in our
years, last of You we in this CAGR can XXXX, see and five maintained last XX% a that level year. growth of we have the have since
in confirm in last year. also year the our third the second period In semester of quarter our last As in was same last we of have year, disclosed higher than intake intake the of last release and the of effectiveness competitive XX% was of growth the growth as the side. a our year, well so first intake of advantages XX%, brand These the semester numbers substantial intake here model. and the improvement in
the a well. So trying been clear. do of to highlight, affect that's the since courses, product. as crisis economic On course, very the some IPO, have we current one of also the saying and market in our And year prospects to different our enroll was last hand, as did, dynamics have we different of willingness
and with this sense – our of we the compelling those hybrid they offer high-quality of do we courses support for and belonging, belonging the for and model, hand, this of but for sense going in need On the a offered all with handholding other those campus do tuition. people offer all in pay who our prospects and model, university. tutors to this can't And high hybrid experience alternative expenses
going home, pandemic five market from rate. this working studying home, the increase our That's is So by this has important this opinion, from the year, above we'll On expand home, forward. well lot years. course, And our we even brought fact, market in now in in been buying for the the we huge post-COVID Last expanding X, student the expanded base a scenario. to Brazil. together us with And growth country, four show about Digital the further substantially Education represents last Page a a customer in that in whole throughout opportunity highlight. changes of the market or
have faster been the growing and So within competition. than this markets, growing appealing we
Our but the years. And been expanding two it students. This – very of market, tutor-based last but we in in as the Southeast year, we historically had and of the hybrids been especially of competitive growth attract where last where I itself and our is lot a have where lot shy, country, say, best different was a importantly huge region academic proves learning course, a a the would model can option.
we once enter hybrid enter we region city, attract new quickly grow center a to So our new once and quickly model. students and we – total a we new
our last in hubs we Here on can see five as years. right number the of well the slide, the in of part the evolution the
are maintain base XX% the hubs mature our our regulations took after Page than XX shall more expansion on education undergraduate better partners, opening, digital have more were And per these of we on mostly opened are we hubs growth than is student and mature. that the and call segment Those in in XXX a We over XXX illustrated XX. slightly substantial they in model. with in change which year, expansion hub. average, so is still been what not – they XXXX, hubs time, our business which place the
the far growth for of pattern here, hubs, or like of say, show is because competitive the cohorts. over driver important it years cohort and of our maturation time. shows, the a They expansion They is, maturing chart our the are a on growth, over This our time. way, most are by obviously, operations. they maturity very, I hubs. lot by is up. – of seven These organic by this we after this far the strength reaching by ramping is chart here still that consistent the split This I'd growth our So which eight model consistent expansion in right, the
created students reach number these mature, extension are which number once of of those students them they And effect this none of currently maturity. mature. in they future to none growth enrolled same this them the we divided the hubs none maturation index, So hubs – in is are are of by of potential, basically theoretical hubs, the
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The business already the We and tutors. already contracted in and have working partners partner, the Uniasselvi our favor. there, is brand found hired the
So already in virtuous there is working our favor there. a cycle
is So growth execution this risk. with limited
revenues This in Now see XX. last combination net you was we page, slight segment. Education next average details in on and on XX, substantial the first, for more figures the as can can and increase was of, the I to hubs, mentioned new with the strong and especially on our of the of a quarterly as Page growth controlled maturation a face, dropout already, Digital Page the ticket, both now quarter due annual year. tuition see a There for and fourth Undergraduate
on Here expense of did XX, our left intake the student increase come we expansion in average not and highlight base the the of part, ticket. at that on Page
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to them quarter-on-quarter or different of It dynamics semester have it here the so compare provide numbers. half full the year the in year, the of second positioning, we please, as you, of a of substantial that we the offer the year-on-year is the everything year. what important highlight half well compare first of seasonality The with year only market most dynamics throughout is different. So to our Never so brand and saying not a different confirms throughout that strength the did the of product. a been and we revenues, have
increasing. the Now health see of and the care engineering on of the contribution part center you can slide, here
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now slightly such and well. and higher growing So example, pharmacy of participation for but nutrition – a courses, biomedicine, we as steadily and health care as have and engineering,
So prospect nice size this provides ticket well. for as a our
that fact, you the which better in Finally, COVID, the retention see the despite of the part rate year saw year. than – what our can we rate slightly on retention XXXX, of in slide was affected the or in even last of effects first last half right
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the lot student base a includes the but tickets. retention slight, also new grew and only not we So
for November, provided full – was release the because exceptional we remember, after guidance you you were of This year as – year. in last XX, we first our Page to we the the IPO. on in with Moving we had
provided So and the full adjusted revenue EBITDA for we net guidance on the year. margin
can net the you R$XXX range, final As reaching end million. was revenue high our the at of very see, XXXX for
adjusted by basis before, and mentioned XXX the EBITDA year. as reached we range, last the XX.X% I Regarding exceeded, margin, points
and you are in keep delivering, expansion the expect us. revenues that margins from So delivering we'll we and all
Page in financial every growth you on our in XX, see business perspective. the Now can
net Digital revenue, in in just growth again First, have as by Education we led expansion Undergraduate, discussed.
third, on in in increase our finance. by explained cost increased gains scale and And EBITDA expansion and important in by constant this a digitalization. an efficiencies And margin, is margin focus Second, adjusted which of led profits. gross better gross personnel
fourth talk let's between quarter and about with of revenue bridge revenues XX. quarter provide fourth on this First, Page and XXXX in XXXX. of variation and main We net the XXXX XXXX
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focus courses the revenue in if in Page a revenue, you of growth Continuing XX% the last on first XX, we year. gross So on had Education, the graduate
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a we level in on was XXXX. that deliver now, in base to more XXXX, that and of numbers expect comparison So high
been has declining it segment, on-campus legacy our Regarding over time.
we And its as which and our to know, believe that have highlights. tends have view less tends the relevance I education the – growth, in we do believe the going in reduce the and here, with business for psychology, on to not this provide growth sector. XX, weighted saying, increase It's now with digital and over means time, the Page forward to the concentrated be been will for courses more as for law, main less we that both numbers. EBITDA that's consolidated us you year for we whole full the On As education and nursing the main quarter three average relevant bridge over much such example. both line offered variations time. the
of our operational increase the and margins. leverage and in gross First, margin continuous net expansion our
plus cost XXXX, revenues XX% meaning for well It services and As virtually were of G&A. as on they roughly increased the at reduced of courses you of the basis, – revenue. year net in XX.X% X.X% of as flat and net an see, G&A over the can slightly XX% cost Selling for to both to expense well annual another flat, highlight. as of
reminder, expenses basically the a new education to to attract of especially segment, undergraduate which means process, are are for As students. the they related most that encouraged digital dating and
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of Finally, PDA, revenues. bit increased it little to XX.X% a in XXXX also net
the combination on light we mix slide. the in students of and Here, have next a of more these country. of shed the all situation issues of We'll
XX, Page reported back operational R$XXX.X, segment. calculation, from service slightly gains as to digitalization of basis adjusted in cost optimization the personnel leverage yearly of reduced throughout we costs, increased the gains So our and a reflecting by for scale, brought to come the R$XXX EBITDA and on
focus adjusted and constant mind. in there agile, expense a of these scale as slightly for revenues, illustrates report This was net administrator As gain than reducing G&A support of shall – costs. G&A next they lean from in percentage revenue percentage performance maintaining expenses, by say, keep net It as strategic see were a with and year. only our and a to of means this on digital with XX% of orientation that of our XX.X% over to a percentage revenue year. fixed net an important EBITDA dilution can a you last time XXXX, XX.X% calculation, reported here, efficiency and reduction in in as of increased smaller our again, our revenue, net
seniors' Page expense Now going XX. the to selling, on
part the revenue on in chart. selling expenses XX.X% Two selling year, roughly X% that. of reasons left XX%. to For of the Last from net expense of was increase there for
were are First, still of the intake last and we we seniors. year, and today at between peak ratio this
Second, the role play process. in important the an selling hubs
more had last bit as digital year. closed, will more This were be case the year. we – well this rely they to media on so So a
in increase was However, mentioned if we cash, before, at the I as look an efficiency. there
selling this segment, yearly So when that's slightly in see, our annual ratio by previous you take the Education was of can that smaller and you and in the Digital Undergraduate them intake expenses year. in divide XXXX release, than the
here, Regarding little the modest a the the three a is column why there's and at profile. yearly we this. right, PDA XXXX percentage a reasons PDA our – quarter for XXXX, in in in had XX.X% on year. as were to this as PDA call, last bit fourth appropriate the before And the that's the in IPO. revenue, more policy. of XXXX which adopted went explained you in from PDA to We the policy certain changed had net But XX.X% end, we There last as XXXX of PDA
The which expenses. first in some as of one, [indiscernible] well, base, increase higher expanded the newcomers percentage our in
this which of done that this are P&L XXXX. receivables recognized was that bit indeed, in December was which in, of means the expected already a bit our third, accounting affected of older we the year the average XXXX, mid and course, technical. previous year, is in – recognition more in than also in this – PDA aging XXXX, payment crisis in we we slightly our lower of accounts have capacity than Second, our last a losses The of is economic the and what in And clients. in our now in
context, PDA believe slightly So I in the that was this increased do justifiable.
year. see in XX, whole income last in as to you substantial it business our increased XX%. of the there expansion XXXX, adjusted of for number which expansion XX% and the moving Page a by that main EBITDA the was expansion of driver Now a can the was net The
the flow had IPO. the before a have had some effects tax year year recognition year. of And we of We also positive we in next higher cash XXXX last impact also, a assessments which and just this in positive the after assets,
but the On increasing last the improved year right, we have last flow management. from driven outstanding from in business, receivables year. increase Undergraduate to year, With the in million adjusted XX% Education coming our XX% which course, substantially cash by was this Once again, cash that, performance discipline Digital of last operations by our reached our backed R$XXX operations, of XXXX. conversion flow from continued XX%
So growth support this us next slides. are the our in two enables financial plans, position to which
XX, organic. current through purely and far, so accomplished our and up in growth be has Page So again, has This year ramp of growth, next organic been the the accomplished been will hubs.
mentioned year. capacity As a the – adding as by XXX to capacity I the regulatory we per already, hubs open hubs, new reminder, have
one We and before, digital the also lifetime constrained. courses marginal a growing are by finally, and of allowed they providing the as digitally which education courses. courses, further psychology also, by Continuing I increases students expensed by Education adding at in but day, law, second And new our as graduate cost. especially and value mentioned nursing, And
Finally, to on Page close XX.
Let's talk means little opportunities, inorganic growth bit M&A. about a which
the used M&A. net less proceeds million, As $XXX will remember, be basically our IPO, than for for slightly you
hope to it new will for active with IPO: investment and and our have of discussions when two – enhance soon sense and, several in our bring value, products our services; can we that So first several make pillars these do And potential course, EdTech portfolio; before in we complementary M&A. targets should you announce consolidation. when we create today discussions the to we we defined features
first So ends this take and the with questions. to ready of now part your this we that, meeting, are
questions. for lines So please operator, the open
