1Q24 Earnings Presentation
May 8, 2024
DISCLAIMER
This presentation contains forward-looking statements that can be identified using forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. Forward-looking statements appear in several places in this presentation and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them considering new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward- looking statements. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including in the section titled "Risk Factors" in our most recent Form F-1 and 424(b) prospectus. These documents are available on the SEC Filings section of the investor relations section of our website at: https://ir.vastaplatform.com.
We prepared this presentation solely for informational purposes. The information in this presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any of our securities or securities of our subsidiaries or affiliates, nor should it or any part of it form the basis of, or be relied on in connection with any contract to purchase or subscribe for any of our securities or any of our subsidiaries or affiliates nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.
We have included in this presentation our EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio, which are non-GAAP financial measures, together with their reconciliations, for the periods indicated. We understand that, although EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS. Additionally, our calculations of Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio may be different from the calculation used by other companies, including our competitors in the education services industry, and therefore, our measures may not be comparable to those of other companies.
2
Highlights Cycle 2024
+12%
Net revenue
+21%
Adjusted EBITDA
+R$59mn
Free Cash Flow
improvement
Subscription revenue +9% vs 2023;
Expansion of complementary solution: +21% vs 2023; B2G contributed to R$69mn in total Revenue
Adjusted EBITDA R$ 402 million (vs R$ 332 million in 2023); Adjusted EBITDA Margin increase to 39.6% (from 36.5% in 2023);
FCF totaled R$ 52 million (vs negative R$ 7 million in 2023);
LTM FCF / LTM Adjusted EBTIDA conversion improved to 43% (from 31% in 2023);
3
ACV 2024 Bookings revised to +12% vs 2023
Annual Contract Value
(ACV, R$ millions)
1.350
CAGR
+18%1207
1,230
1.024
1,000
692 | 853 | 741 |
716
Cycle 2020 | Cycle 2021 | Cycle 2022 Cycle 2023 Cycle 2024 |
COVID | COVID | |
Effect | Effect | ACV Forecast |
-3% | -13% | ACV Achieved |
ACV Breakdown
(ACV, R$ millions)
+12%1,350
1,207 | 188 |
+30mn | |
158 |
1,162
1,049
2023 Subscription | 2024 ACV |
Core | Complementary |
Previous ACV Bookings of R$1.400 reduced by 3.5% due | Top performers: Premium brands, Complementary |
to effective number of students | solutions and Textbook as a Service Platform |
2024 ACV recognition
The ACV 2024 is less concentrated in the first two quarters (64.5%) than in previous year (66.4%), mainly due product deliveries migrated to third commercial quarter and different seasonality of new contracts.
66.4%64.5%
33.6%35.5%
Net Revenue In R$ (million)
Subscription (ACV)
Cycle to date | Cycle to date | |
2023 | 2024 | |
Cycle to Date 23 | Cycle to Date 24 | % |
4Q22 - 1Q23 | 4Q23 - 1Q24 | Y/Y |
801 | 872 | +9% |
Cycle to Go | Cycle to Go | |||
2023 | 2024 | |||
Cycle to Go 23 | Cycle to Go 241 | % | ||
2Q23 - 3Q23 | 4Q23 - 1Q24 | Y/Y | ||
406 | 478 | +18% | ||
Cycle 2023
1,207
Cycle 20241
1,350
%
Y/Y
+12%
5
(1) Management's guidance.
Net Revenue
Values in R$ (million)
Quarter
461
403 n.m69
46 | -24% | 35 |
0% | ||
357 | 357 |
1Q23 | 1Q24 | |
Subscription | Non subscription | B2G |
Cycle
1,015 | |
908 | 69 |
107 | 74 |
-31% |
+9% | 872 | |
801 | ||
2023 | 2024 | |
Subscription | Non subscription | B2G |
6
Note: The Business is comprised of a single segment. We are presenting in this slide a supplemental information in terms of the sub-segments composing the reportable operating segment.
Adjusted EBITDA and Adjusted EBITDA Margin
Values in R$ (million)
Quarter | Cycle | ||||
+21% | 39.6% | ||||
+2.6p.p | 36.5% | +3.1p.p | 402 | ||
32.6% | 35.2% | ||||
162 | 332 | ||||
131 | |||||
1Q23 | 1Q24 | 2023 | 2024 |
Adjusted by non-recurring expenses, expenses with share-based compensation plans and one-off M&A adjusted expenses. | 7 |
Adjusted EBITDA Margin
(%) Net Revenue
100% | 100% | |||
Gross margin | ||||
PDA | 64.0% | +3.0pp | 66.9% | |
Commercial Expenses | 4.3% | +0.1pp | 4.2% | |
13.8% | ||||
11.2% | -2.7pp | |||
Adjusted G&A | 11.9% | +2.6pp | 9.3% | |
Adjusted EBITDA Margin | 36.5% | +3.1pp | 39.6% | |
2023 | 2024 |
Margin analysis as % of Net Revenue
Gross Margin
Increased gross margin benefiting from better product mix and reduced impact of product cost
PDA
Slight improvement in PDA although still impacted by 4Q23 credit review.
Commercial expenses
Higher expenses related to business expansion and marketing investments.
Adj G&A expenses
Reduction are driven by operational efficiencies and workforce optimization indicating greater cost- effectiveness.
Adjusted EBITDA Margin
In 2024 cycle to date the EBITDA margin increased by 3.1 p.p. compared to 2023
8
Adjusted Net Profit
Values in R$ (million)
Quarter
+97%
50
26
1Q231Q24
Cycle
+49%
146
98
20232024
Adjusted by non-recurring expenses, expenses with share-based compensation plans, amortization of intangible assets from business combination, one-off M&A adjusted expenses and one-off | 9 |
contingencies gain, net of the tax shield (34%) originated by these expenses. |
Free Cash Flow and LTM FCF / LTM Adj EBITDA conversion
Values in R$ (million)
Quarter | Cycle | |
n.m | 43% | |
31% | ||
52 | 52 |
36
(7) | |||
1Q23 | 1Q24 | 2023 | 2024 |
10
1) Cash flow from operating activities less: income tax and social contribution paid; tax, civil and labor proceedings paid; interest lease liabilities paid; acquisition of property, plant and equipment; additions to intangible assets; and lease liabilities paid.
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Vasta Platform Ltd. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 17:03:04 UTC.