Arco Platform Limited

Good evening, everyone. Thank you for standing by and welcome to ARCO Platform first quarter of 2021 earnings call. This event has been recorded and all participants will be in a listen-only mode during the company's presentation. After ARCO remarks, there will be a question and answer session. At that time, further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. This event is also being broadcast live via webcast and may be accessed through ARCO's website, investors.arcoplatform.com, where the presentation is also available. Now, I turn the conference over to Karina Carreira, ARCO's IR Director. Please, Karina, you may begin your presentation.

Thank you. I'm pleased to welcome you to Arco's first quarter 2021 conference call. With me on the call today, we have Arco's CEO, Ari de Sá Cavalcanti Neto, and Arco's CFO, Roberto Otero. 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 risks, uncertainties, and other factors that may cause our actual results to differ materially from those contemplated by these forward-looking statements. Forward-looking statements in this presentation include but are not limited to statements related to our business and financial performance, our expectations and guidance for future periods, our expectations regarding strategic product initiatives and their related benefits, and our expectations regarding the market. These risks include those set forth in the documents that we issued earlier today, as well as those more fully described in our findings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based in the information available to us as of the day hereof. 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 isolation or as a substitute for results prepared in accordance with IFRS. We have provided a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measure in our press release. Please note that except from revenue, gross margin, selling expense, G&A, and cash flow from operations, all other financial measures we disclose here are non-IFRS, and growth rates are compared to the prior year comparable period unless otherwise stated. We also note that year-over-year comparisons are affected by acquisitions that were not included in our 2020 financials. Let me now turn the call over to Ari Arcos, CEO.

Thank you, Karina, and thanks everyone for joining today's conference call. We hope that you and your family are all healthy and safe. We would like to present three topics today as shown in slide three. First, our healthy operating results for the quarter despite the challenging scenario. with a strong 28.5% revenue recognition and an adjusted EBITDA margin of 35.7%. We are maintaining our margin guidance of 35.5% to 37.5% and expect our free cash flow to improve along the year as we collect the receivables, reduce capex, and benefit from a lower effective tax rate. As we now have better visibility on the actual numbers of students enrolled, revenue recognition for 2021 is leading to slightly lower versus ACV impact by the second wave of COVID-19 in Brazil. Second, the commercial cycle for 2022 school year continues to show encouraging results, and we are excited about our recent movements for growth in the years to come. We have strengthened our core segment with the acquisition of COC and Don Bosco. We are achieving great results from our cross-sell initiatives and continue to leverage on our superior value proposition and consistent improvement in our offering. And the entries in B2C will allow us to explore this huge and promising market. And finally, we will present an update on our ESG agenda and we conclude our materially assessment. I will now turn the call to Otero to discuss the results for the quarter. Otero, please go ahead.