Arco Platform Limited

Everyone, thank you for standing by and welcome to ARCO platform fourth quarter and fall year 2021 earnings call. This event is being 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 at https.com slash slash investor.arcoplatform.com slash, where the presentation is also available. Now, I'll turn the conference over to Karina Carreira, ARCO's IR Director. Karina, you may begin your presentation.

Thank you. I'm pleased to welcome you to Arco's fourth quarter and full year 2021 conference call. With me on the call today, we have Arco's CEO, Aridi Sakabokanci 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 defer materially from those contemplated by these forelooking statements. Forelooking 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 filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as of the day hereof. You should not rely on them as prediction 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 the 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, GMA, and cash flow from operations, all other financial measures we discuss 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, ARCO's CEO.

Thank you, Karina, and thanks everyone for joining today's conference call. We hope that you and your families are all healthy and safe. We would like to present three topics today. First, on the results, we had a very strong top-line growth in the fourth quarter of 55% year over year to R$ 460.8 million as a result of the extremely successful 2022 commercial cycle, leading to net revenues of R$ 1.2 billion in 2021. Adjusted EBITDA margin was 48.7% in the fourth quarter of 2021. Despite the challenges, 2021 margin excluding M&A concluded in 2021 was 36% for the year, within the guidance range of 35.5% and 37.5%. This is a very important achievement considering the impacts from the COVID-19 pandemic in our revenue recognition during the year. Second, we concluded the 2022 commercial cycle, and as schools return to in-person classes and restrictions related to the COVID-19 pandemic are gradually lifted, we are resuming our growth trajectory. 2022 ACV was 1.56 billion reais, representing a strong 46% growth year over year, and a 32% organic growth year over year. These numbers come above the guidance initially provided to the market back in November. This strong ACV is a combination of healthy retention rates and price increase added to a sound organic growth for both our core and supplemental solutions. powered by the successful cross-sell initiatives. We expect to continue to do so as our key differentiating factors gain further relevance, and we want to consolidate our leadership position and strengthen our value proposition. Finally, we conclude this presentation detailing our three priorities for 2022. strong growth, efficiency, and cash generation and ESG. I will now turn the call to Otero to discuss the results for the quarter. Otero, please go ahead.