Vasta Platform Limited

Gentlemen, thank you for standing by and welcome to the VASTA platform 1Q21 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this time, you will need to press star and the number 1 on your telephone keypad. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Bruno Giardino. Please go ahead, sir.

Thank you. Good morning, everyone, and thank you for joining me in this conference call to discuss VASTA Platform's first quarter 2021 results. With me on the call today, we have Mario Guil, VASTA CEO, and Guilherme Medega, VASTA CEO. 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 or 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, expectations for future periods, our expectations regarding our strategic product initiatives and their related benefits, and our expectations regarding the market. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. These risks include those set forth in the press release that we issued yesterday, as well as those more fully described in our feelings with the Securities and Exchange Commission. Those forward-looking statements in this presentation are based on information available to us as the date hereof. You should not rely on them as predictions of the future events and we disclaim any obligation to update any forward-looking statements except as required by law. In addition, management made reference to 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 the IFRS. Let me give the call over to Mario Gil to give his opening statement.

Thank you, Bruno. Thank you all for participating in our earnings release. uh i wanna first i wanna i want to welcome bruno jardino in his first call as our new cfo and wish him the best with us in vasta now let's cover the slide number four with some highlights of the quarter starting with the annual contract value the acv for 2021 commercial year that total 853 million reais, which is 23% higher than the amount of subscription revenues recognized in 2020 commercial cycle and was obtained exclusively by organic means. But also let's remember that the ACV is not a guidance of revenues, but shows the total amount of contracts and the duration of the contract signed for the next commercial cycle. As you know, the second wave of COVID in Brazil is harder than the first wave in 2020. This second wave happened exactly in the peak of enrollments to the 2021 school year, adding to an already fragile macroeconomic outlook. This combination has affected our business lines in different manners. Subscription revenues have proven more defensive than the revenues associated with the sales of textbooks, like Power Learning System and the non-subscription revenues. However, in the 2021 commercial year, we added 456 new schools to our client base with an average contract duration of more than 3.5 years. Thus, While we may not be able to fully recognize the revenue implied by the ACV in 2021 commercial year, we are very well positioned to capture incremental revenue once the pandemic effect dissipates. It is also noteworthy that our students had outstanding results in the most competitive universities admission test as well as in the national high school exam as we will detail later in the presentation. And finally, Plural remains as the absolute leader in terms of web traffic and we continue to expand the offer of new features such as Plural Store, Plural My Teacher and digital services which enhances our long-term growth potential. Now I'll pass the floor back to Bruno Jardino, who will comment on the financial highlights of the quarter.