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spk04: Good morning, ladies and gentlemen, and welcome to AFIA's third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this call will be recorded. I would now like to introduce your host for today's conference, Renata Cotto, AFIA's head of IR. You may begin.
spk02: Good morning, everyone. Thank you for joining us for ASEAN's third quarter 2020 conference call. With me on the call today is APE's CEO, Virgilio de Bon and Luiz André Blanco, our CFO. During today's presentation, our executives will make forward-looking statements. Forward-looking statements generally relate to future events or future financial or operating performance and involve known and unknown risk, uncertainties, and other factors that may cause or actual result to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this presentation include but are not limited to statements related to our business and financial performance, expectations and guidance for future periods, or expectations regarding our strategic product initiatives, and the related benefits and our expectations regarding the market as well as the potential impacts from COVID-19. These risks include those more fully described in our filings with securities and exchange commissions. The forward-looking statements in this presentation are based on the information available to us as of today's show. You should not rely on them as predictions of future events and we disclaim any obligation to update any forward-looking statements except as required by law. In addition, management may reference non-IFRS financial measures on this call. The non-IFRS financial measures are not intended to be considered in the isolation or as a substitute for results prepared in accordance with IFRS. We have provided a reconciliation of these no IFRS financial measures to the most directly comparable IFRS financial measures in this presentation. Let me now turn the call over to Vigilio Chabon as the CEO and starting with slide four.
spk07: Thank you, Hanata, and thanks, everyone, for joining us today. I hope that you and your families are all doing well. Since our last earnings fall, the overall business environment did not material change. Our key priority remains the health and safety of our students, faculty, and employees. Although there has been some disruption from COVID-19, our teams devoted to leverage our online and virtual technology capabilities and adjust often for our students that allow us to generate some results this quarter. We once again saw organic revenue growth, contributions from acquisitions, underlying margin expansion, and cash flow generation. Before we start with our financial and operational highlights, I'm proud to share with you that we have just refreshed our brand. We are the only complete math education platform serving every stage of the doctor's career, providing solutions and methodology for personalized experience. And when company awareness grows, its brand also does. So this is our new logo that reflects our DNA and will support gradually every service and local brand. Please take a few minutes to watch our brand manifesto. Moving to page five, we'll discuss our main highlights. Starting with our top line, third quarter adjustment rate increased 52% year over year. mostly due to maturation of our medical school seats and consolidation of acquired confidence. It's also important to highlight that the discounts granted by the state decree and legal proceedings due to COVID-19 on-site classes restrictions did not impact us materially and represent around 1% of our net revenue in this third quarter. In 2020, profitability continues to run ahead of last year, as we not only grow the business, but we are capturing seniors from acquisitions to leverage that growth. Adjusted BIDA margin increased 340 basis points year over year, and the income was up 47% to 101 million reais. At the end of the quarter, We had approximately $1.1 billion in cash and cash equivalents on our balance sheet, and the cash conversion for nine months 2020 was 86%. Despite any short-term challenges posed by COVID-19, we remain confident in our strong cash flow and have balance sheets to manage through the current crisis and beyond. With respect to M&A, our team continues to successfully execute both on generating and closing new business, as well as capturing synergies. We are particularly pleased with our positions in the digital health service with MedMed, which we quickly followed up with iClinic and MedPhone. At the same time, we continue to grow our medical seats, acquiring two companies during the quarter and another one subsequent to quarter end. With these acquisitions, we are now at 85% of our IPO three-year target of adding 1,000 medical seats. On a separate topic, I'm very pleased to share that we were the winners in the education sector in the EPCA Negotiations 360 Survey. This award, which has been held annually for seven years, is one of the most significant in the communications industry and recognizes companies that are market leaders across six different categories, including financials, corporate governance, and sustainability, vision, and human resources. Besides that, we also have won the Golden Tombstone in the Equity category. This award is evaluated by IBES Sao Paulo and recognizes equity operations in aspects such as complexity of the transactions, innovation, price, and others. And that award was due to our successful IPO in 2019. Moving next to a discussion of our recent vision acquisitions on page number six. Even during these challenging times, we remain committed to delivering innovation to our students, faculty, and other healthcare professionals. COVID did not slow down implementation of our strategic initiatives. In fact, we have accelerated our digital investment. We are expanding our digital office and have begun this digital journey with the acquisition of PadMap. which we discussed on the last quarter call. As a reminder, PetMed provides tools and content for healthcare professionals through the White Book and Nurse Book apps and through the PetMed new portal. It's also the market-leagued and clinical decision software and has an extremely popular app ranking the top 10 Brazilian apps by consumer spend and the NPS of 85. The business model consists of both paid subscription and free content, providing an additional source of revenue for us. We followed this with the acquisition of iClinic, a leading practice management software for physicians in Brazil, which includes electronic medical records, clinical management systems, telemedicine, and a complete marketplace that connects doctors and patients to scheduled consultations. We currently have close to 12,000 monthly subscribers with monthly average per user of 107 hands. With this acquisition, we have strengthened our position into the digital health service segment, complementing our end-to-end offering to the healthcare professions and providing another revenue source. In subsequent to 4N, we announced the acquisition of Medphone, the number two medical app in Brazil behind Whitebook. MedFone has 175,000 registered users and close to 60,000 monthly active users, a 4.9 score in App Store with more than 9.1 thousand reviews. The integration of MedFone's clinical decision software will generate synergies and allow us to offer both products through the same platform. Importantly, the founders of these acquired companies will join ASEAN and will be an integral part of the digital team driving our growth in the health tech services. This has been key acquisition for us as they accelerate our digital health efforts to improve the user experience and efficiency of both healthcare students and other healthcare professionals. There are approximately 500,000 doctors in Brazil, and close to half of them are currently using our digital products and services. Our goal is to improve even more our penetration to support the largest majority of physicians in Brazil with our digital health service platform. Now on page number seven, we'll discuss our overall strategic positioning. As we look to the future, we see the opportunity to maintain a long-term relationship with physicians from the time they enter into our school as undergraduates, to the residence prep, the sanitation studies, and then to their entire careers. We believe in investments in our medical programs and new digital health products. We'll provide growth and revenue for many years, as well as strengthen our relationships with medical students and other healthcare professions. Importantly, our additional investments are already paying off by opening new business revenue opportunities for us. We will also continue to consider acquisition targets. And, as shown on the bar chart on the right, we have been adding medical seats. 851 seats in just 15 months, while also increasing our geographic footprint. This increase in medical fees drives a predictable revenue stream and maximizes cash flow predictability as well. We are also looking to further grow our digital assets through disciplined acquisition of business complementary tools, as well as further growing this business. Importantly, our balance sheet remains healthy with positive cash flow generation that provides us with the resource to continue to grow the business both organically and through energy. Before turning the call over to Luis, our accomplishments through 2020, as we continue to navigate to an unprecedented environment, are proof of the strength and resilience of our business model and exceptional work of our passionate team. We are focused on creating shareholder value by delivering our financial targets investing in growth, driving top-line momentum, and implementing our strategic priorities. I will now turn the call over to Luis for a further discussion of our financial results and second half 2020 guidance. Thank you. Thank you, Virgilio, and good morning, everyone. Moving to page 9. Similar to past calls, my discussion this morning will focus on the main and most significant P&L items. There is additional info in the earnings press release that you can refer to further more information. I'm pleased that we delivered another good quarter across all key metrics. Let me highlight a few. Both medical seats and students saw significant increase during the quarter. With respect to the number of medical seats, we added 294 seats year over year for a total of 1,560 seats. Reflecting the state operation process and the conditions, the total number of students in the third quarter 2020 was 9,567 students, an increase of 50% over the same period of the prior year. Adjusted net revenue for the quarter, which includes the impact of the state decrees and individual and collective legal proceedings related to discounted credit to the COVID-19, off-site practice restrictions. What's up? on the year to 313 million reais, partially benefiting from the recognition of revenue that had been deferred earlier on the year when press conferences were unable to take place. This deferred revenue amounted to 14.4 million in the quarter. Excluding the acquisition of Unitec and Pool, by 16% year-over-year, reaching 239 million reais. The increase was primarily driven by organic revenue growth, mainly due to the maturation of medical school seats and increase in the average ticket. The strong top-line growth, combined with cost-efficiency and synergies from acquisitions, was reflected in adjusted EBITDA, decreasing 63% to R$149 million and margin expanding 340 base points. Adjusted EBITDA also benefits from the inclusion of the deferred revenue I just mentioned. Excluding the consolidation of UNHCR, San Lucas, and FedNet, adjusted EBITDA increased 32% year-over-year to 121 million reais, a margin increase of 626 points to 50.4%. Adjusted net income increased 47% from the third quarter of 2019, reflecting the revenue contribution Earnings per share increased 48% from 54 cents in the third quarter 2019 to 80 cents in the third quarter 2020. Moving on to page 10 for our discussion of key operating metrics by business unit. We delivered solid growth across both business units. In key operating metrics, as shown on this slide, it's been driven by a combination of organic growth and acquisitions. Starting with P1, our average monthly medical tuition is, as the nine months were, 8,053 reais. which was 70% above the same period in 2019. This reflects a combination of new students enrolling with a higher tuition rate, combined with students graduating with a lower tuition. As a reminder, this does not include . As shown in the middle chart, 78% of our combined tuition fees are derived from medical schools, but from 69% in the same period of the prior year. The combination of the 50% increase in the number of students and a 70% increase in the average ticket resulted in medical tuition fees of 41% when compared with the same period of the prior year. With respect to BU2, we have 130,000 active paying users at the quarter end, which included 95,000 from PatNet. Excluding PatNet for Now, turning to page 11 for discussions about the different attractions we are gaining for our digital assets. OPs recently acquired pieces. to elevate our brand as well as deepening our connections with students and physicians. We have focused our efforts over the last year on continuing to enhance the student experience. We're globally monitoring their behavior and targets, personalized approach to keep them engaged. The digital investments that we have made enable us our students as well as the broader healthcare industry with what is so important to them, quickly and timely access to important medical information. This is more critical now than ever and is also a key leverage for both member acquisition and retention. As shown on the charts on this page, we are digital engagement. In the third quarter, combining mostly active users across our MedCell and PetMed platform, we are close to 180,000 users. On the chart on the right, you can see the trend in the current consumption. Content that users are consuming included podcasts, learning assessment skills, as well as structured medical webinars. We are also seeing a positive traction here with a 90% increase when compared to the first quarter of 2020 when we began our push into digital assets. The higher performance in the second quarter is partially reflected of our opening up of our digital assets for free at the start of the pandemic to our students and healthcare professionals, temporarily inflating the numbers of users. In sum, we keep looking for ways to modify and enhance have strong foundations of products offering to support our long-term growth objectives to empower the position. Moving on to a deeper analysis of revenue and levita on slide 12. As shown on this page, we have provided the net revenue and adjusted EBITDA regions from our historical third quarter 2019 revenues to the reported third quarter 2020. For the nine-month period, the adjusted net revenue increased 62.3% to 860 million reais. Excluding Uniden and Toro. from September through 750 million reais, with a contribution of 93 million from acquisitions and 90 million reais from organic growth, which is comprised of the maturation of medical school seats and increase in the average ticket. Yuri Kadyatov contributed revenue of 64 million reais in the nine-month period while Sao Lucas' contribution was 73 million reais, and that net was close to 7 million reais. Lastly, there was also a 4 million benefit from the non-recurrence discount granted to COVID-19. On the right side of the page, we show nine months 2020 adjusted EBITDA. During the period, adjusted EBITDA increased 77% year-over-year to 480 million reais, with 396 due in part to a R$50 million contribution for Univeridad de San Lucas and Petrimed, and R$4 million contribution of non-recurrent discounts granted to COVID-19. Excluding the contribution of these acquisitions, I just added that advanced from 54% to another R$56 million, with R$48 million contributed from acquisitions and R$75 million excluding these three companies, expanded 1,028 points. Moving next to a discussion of cash flows on slide 13. Cash and cash equivalents of 1.1 billion reais at the quarter end were 3% higher than the period end in the second quarter, reflecting the strong cash generation that we had in the quarter. The majority of this funding is invested in low-risk Brazilian reais denominated Israelites. Total debt was 599 liter reais at the quarter end 2020, up from 535 liter reais at the end of second quarter 2020, and 361 liter reais at year end 2019. Cash generation remained strong in the nine-month period, increasing 39% to R$325 million, which resulted in a cash conversion of 86%, compared to the 109% in the same period of 2019. The decrease in the cash conversion rate year over year is mainly due to the consolidation of master business, Our students were in negotiations of overdue monthly installments due to COVID-19, and we saw a decrease in advances from our students. During next two discussions about Performa Cash and Debt on slide 14. On this slide, we have agreed our cash positions at the end of the third quarter to arrive at the Performa level. This bridge takes into account the cash outflows for the five announcement acquisitions since the second quarter end, coupled with an increase in the bank tax to support our growth initiatives. All of these auctions have resulted in a performer cash position of 656 billion reais, compared with 1.1 billion reais at the end of September. By contrast, our pro forma gross debt has increased to R$1.3 billion from R$599 million at the end of September. The increase reflected the increase of the bank debt that I just mentioned coupled with the debt we have summed up with the acquisition of Cintas Medicus. Turn next for discussions about guidance on slide 15. We are reaffirming our second half 2020 guidance based on the solid performance in the third quarter. Our guidance takes into account the successfully concluded medical student intake for the second half of 2021. As a reminder, The world is still in the middle of a pandemic. Economics are slowing opening up, and our guidance takes into account the best information available at this point of time. Two key metrics for the second half 2020 guidance are as follows. The second half met revenues between 600 and 640 million reais. Second half 2020 adjusted income margins ranged between 45.5% and 47%. Our guidance includes the impact of the adoption of IFRS 16 starting from February 2020, SABUCAS from May 2020, and PEDMAP from the later July, and exclude other acquisitions that may be concluded after the issuance of the guidance. Additionally, Included in the revenue outlook is the revenue recognition for some record classes that could not be held during the first half and were pushed out the second half of 2020 upon the reduction of classes. These amount to 14 million reais. Before opening the call to questions, let me finish by saying that we are pleased with our performance in the third quarter with the context of this challenging environment. I would like to thank you, every one of our employees and faculty, for their continued hard work and resilience during these unusual times. We remain confident that our strategic investments are establishing a solid foundation, creating further differentiations and positioning us from continued strong financial results that will drive long-term shareholder value creations. This ends our prepared remarks. We are now ready to take our questions. Operator, please open the lines for questions.
spk04: Thank you. As a reminder, to ask a question, you'll need to press star 1 on your telephone. To withdraw your question, press the pound key. Please stand by. We'll compile the Q&A roster. Our first question comes from Marcelo Santos with JP Morgan. You may proceed with your questions.
spk05: Hi, good morning. Thanks for taking my questions. I have two. The first is if you could provide some update on the intake for the medical unit in 2021, if we're being able to fill the seats and what kind of ticket outlook you could discuss. And the second is about PEPMED integration and cross-sell initiatives, if you could provide us an update on how this is going, and if you're already about to launch some initiatives that could perhaps put together a mid-sale courses, anything in that sense would be very helpful. Thank you.
spk07: Hi, Marcelo. Thank you for your question. I'll take the first question here, then Julio will help me with the second answer here. So the intake for our medical seats for 2021 is a very good trend. We are not expecting any kind of surprise and keeping the same trend to have 100% of occupants of all seats, including the maturation and the new institutions acquired in 2020. So there will be no surprise on the intake side and also renewal for the following semester. on PubMed integration and cross-selling opportunities. Julio?
spk06: Hey, Marcelo. Hello, everyone. Hope everyone is healthy and fine there. In regards to PubMed, we started not integrating the company yet, Marcelo, but we started with all the activities in terms of offering products to the different audiences. So MedCell has been promoting PubMed and the other way around as well. So we just finalized, especially now, the Black Friday period, which is important in terms of subscriptions for both business and enrollments. So we don't have it yet concluded, but we've been doing integrated activities, commercial activities at this point. So far, I mean, FedMed is now at a very, very different level. I mean, it's been growing. It's above 100,000 subscribers at this point. And MedCell has been doing quite well as well in the intake. where we started in September. So it's been growing above market levels as well. But so far, answering your questions, we're doing more of the commercial activities at this point. We have a couple of projects to be launched, especially with initiatives where we're going to add educational components to the offer. And we are about actually to launch a specific marketplace where students will be able to have bundle offers from different services, and this is yet to come.
spk05: Perfect. Thank you very much.
spk04: Thank you. Our next question comes from Susana Solaro with IEAU. You may proceed with your question.
spk03: Hi, guys. Good morning. Thank you for taking our question. We have two. First is related to the MedForn and the White Book. Are you guys going to maintain both brands, or do you plan to unify and have a new combined product? That would be our first question. And the second question is related to the MedCell student base, which didn't evolve comparing to the PISA Squire. What should we expect going forward? And if you are seeing a scenario that is different from what you had in your business plan for MedCell. That's it, guys. Thank you.
spk06: Hey, Susana. Julio here. So in regards to the first question, so far with MedCell, I mean, we still want to keep the application work and running. And at this point, we are trying actually to convert the users from that phone to Whitebook subscribers. So that's what we are doing now. In terms of the future, the plan is actually still to keep both applications up and running, but the focus is to grow Whitebook's user base. The other one about MedCell, again, answering your question, the student base actually declined a bit, but it's mostly because of the courses that we offer during the pandemic. But the intake, as I mentioned in the previous answer to Marcelo, the intake, which is the most important for Q4 and for next year, is doing well, again, above the market growth level.
spk03: Thank you, Julio. Just a follow-up on the MedCell student base. The cross-selling for the students, the last-year students and the students that are before the last-year students, is this happening, or the majority of the sales are happening just for the students that are graduating?
spk06: Yeah, well, the majority of the students, they are actually, let me explain how it works. So the intake actually during this period of the year, September to December, most of them, the majority of them are still in the school. So they're still graduating. So they're finishing school. fifth year or the sixth year. And the intake with new doctors, actually, that are already physicians, that are already graduated, is higher after January. So January to March, April. So, so far now, it's more of students that are, and this hasn't changed a lot. But what we see is that, you know, the market is growing and we're growing people. in the same page. But more at this moment of intake, it's more of the students that are still not graduated, and it's just following the same patterns as other youths.
spk03: Perfect. Thank you, Julio. Very clear.
spk04: Thank you. Our next question comes from Fred Mendez with Bradesco. You may proceed with your question.
spk07: Hello, good morning, everyone, and thanks for the call. I have two questions as well. The first one, regarding the discounts that you recognize in this quarter, just wondering if it's something that you already recognize, the military discounts, right, that's something that you already recognize everything, or we should expect to see more of these discounts as we move forward. This would be my first question. And then on the second question, I know the stake of the total revenue is not as much, but we saw a significant decrease and the number of students not related to healthcare course. So just wondering what can you expect from this business as we move forward? Thank you. Hi, Fred. It's Luis speaking. Regarding the mandatory discounts that we had on the third quarter, it's all that we got on the third quarter, okay? It's related to... state decrees that requires us to give the discounts at this period and reflects the discount that the first instance judge has ruled us to give this discount. So we have this 3.9 million reais of discounts on the third quarter. Moving forward, we have some state laws that are still in place. So we will see at the fourth quarter some discounts. I think this number should be around 1% to 2% of our net revenues, this amount. Hi, Fred. Just to add a point here, it's Virgilio. So that will not put in risk the guidance. We are very comfort to reach the guidance for the second semester. On your second question about the non-medical program, we are closing many of them. That's one of the main reasons of the leverage operation. Many of the programs from the institution acquired, they came with... low margins of negative operational results. So we are closing this progress and also we are seeing the impact on COVID for the traditional on-campus undergrad program. So that's a combination of the two. We are closing. We are very disciplined in closing programs that is not sustained in the long term. We are not going to challenge the competition or if there's distance learning and lowering our price. So we are just keeping on track the programs that is sustainable and make the difference on the region that we have the operation. So we're expecting to dilute no medical programs on our penetration. Last year, if I'm not wrong, it's around 18%, and this year it's around 14%. So, also, this is considering on our expectation for the entire year.
spk04: First, it's very clear. Thank you, Brigido. Thank you, Luis. Thank you. Our next question comes from Mauricio Zepeda with Credit Suisse. You may proceed with your question.
spk08: Hello, guys. Thank you for the time, for the questions. I have two questions that are kind of specific. We noticed that the receivables for the quarter are still up versus last year. We'd like to know if this is a new level or if it's something that is contingent to COVID only. And also, we saw that the cash flow this quarter specifically was a little bit lower than last year's. So if you could give a little bit of a more qualitative insight on these. We saw that it was something related to tax payables and advances from customers. But if you could give some more, let's say, rationale for what is happening. Thank you.
spk07: Hi, Maurizio. It's Luis speaking. About the receivable base that we got on the third quarter, Yes, it was a little bit higher than the days that we had on the third quarter last year, but it's lower than the one that we have presented on the second quarter. What's the difference between the years of it? What we got, there are three main reasons. The first one is that the advance that we got from our students, if we compare these years with the 2019, the number of advance that we got from the students were lower, okay? So it's common that the students anticipate the payment of the semester to get a little bit of a financial discount on that. The second one is the financial support that we provided to our students during this pandemic. We have established this support through the installments to them instead of giving them discounts. So we were expecting a little bit of increase of our receivable days. and that's a core, but it's already moving down as we reduce our receivable days from the third quarter, if you compare that to the second quarter 2020. And the third reasons, if you compare with the 2019, it was MedCell. MedCell was incorporated with AFIA during the second quarter last year, And the MedCell business is the one that you recognize the revenue first, and then you got the receivables. So last year, we had recognized the revenue before MedCell was incorporated into AFIA, and we continue to get this cash on the second quarter, the third quarter last year. So these are the the three major factors giving more colors about this change on the receivables, okay?
spk08: Very clear. Thank you.
spk04: Thank you. And as a reminder, to ask a question, you'll need to press star 1 on your telephone. Our next question comes from Irma Skars with Goldman Sachs. You may proceed with your question.
spk01: Yes, hi. Thank you for taking my question. One more technical follow-up question. Your earlier remarks were very helpful, and from what I understand from all the answers, you're quite sort of comfortable, if I may say so, in terms of how underlying dynamics are shaking out, all things considered. In terms of dropouts, anything that you feel sort of additional that one is worth mentioning here, how you expect it to evolve from here and the ability for early dropouts to reposition. You're speaking to 100% occupancy, so I assume that's sort of baked into there, but anything additional that you feel worth mentioning would be helpful. And then just as you look sort of beyond... beyond the near term and into the medium term, just sort of from an M&A perspective to the extent that you can speak to it, sort of what incremental are you looking for, incremental new characteristics from a regional perspective or from a quality perspective or any other aspects or variables that you're taking into consideration as you look sort of at the incremental sort of last bit of M&A targets. The question is just a quick update on the approval process for the remaining MICE medicals to campuses. Any update that you can provide? Thank you.
spk07: Hi, Irma. This is Virgilio. I've got the first and the third question about MICE medicals. About the dropout, before renewing all students for the second semester, we are expecting to see a higher dropout. But when we finished the re-enrollment, we didn't see that. The renewal rates were the same pattern that we had previous year. and we will start renew on January because you'll have a very long second semester because of the COVID and we are not expecting as we any problem renew and keeping the the 100 percent of occupants of this student. It's worth to mention that demand is keeping a very high level so the candidates per seat is very healthy and we are students at the beginning of the process, but I think we will be no surprise in terms of student pay for medical students in the first half of 2021. On other programs, medicine will be tough. We are seeing dropouts, lower intakes. The competition of business learning doesn't make any sense for us, so we will keep very disciplined closing programs that doesn't make sense in terms of sustainability for operation and improving our penetration, getting close to 90% of our B1 revenues coming from medical programs. On the MICE medical side, we already had the first intake for Suntinase. That was our first license authorization. And we expect in a very short term, maybe in weeks, to have the second approval from another institution on our region. For the others, we still have five to get the final authorization and expect to be two by the end of first 2021 and the other three by the end of next year. Hi, Irma. It's Luis. I'm going to take the questions regarding M&A. Talking about the M&A opportunities that we have on the BE-1 first, we are very close to reach the 1,000-seat goals that we have established on the IPO We have a very fertile pipeline. We have some deals that are in our hot pipeline, so we can reach these 1,000-seat goals in the short term. Moving forward on D1, I think we're going to be more strategic on our movements. We are keeping our disciplines on just focus the units that has more than 6% of their revenues on the maturation that comes in from the medicine business, from the medicine part of the business. And we establish our minimal revenue. IRR in those acquisitions. So we continue to see opportunities and we're going to keep our disciplines on that. Regarding BU2, first of all, it's important to remember that we are, between signing and closing of iClinic, we're supposed to get the the iClinic closing in the very, very beginning of January. And we are discussing with Bruno of PEDNET and with Julio the opportunities that we have to keep going on the health tech business. We have this view that we have to empower the physicians. We want that the physicians have the access to the best tools for them to get the best outcome, to give them the best efficiency to increase their productivity, and we want them to provide the tools that give them flexibility, mobility on their day-by-day business so they can focus on patients. We have mapped the market on these health techs, on these functionalities, and we are working together to see the next movements to plug them in this future environment that we are building to provide this in power of the physicians. So we are very excited for the opportunities that we have in the M&A in both business units.
spk01: Very helpful. Thank you.
spk04: Thank you. I'm not showing any further questions at this time. I would now like to turn the call back over to Virgilio for any closing remarks.
spk07: Thank you all for joining us today. We remain very confident that our strategic investment has established a solid foundation in our company. We have a very good trend to end 2020 as expected in our guidance release. So I hope to see you all on our next quarter earnings call, safe and sound. So have a nice day for everyone. Bye-bye.
spk04: Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.
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