Vasta Platform Limited

Good day, ladies and gentlemen, and welcome to the VASTA Platform Second Quarter 2021 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. If anyone should require assistance during the conference, please press star then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Bruno Giardino, CFO.

Good morning, everyone, and thank you for joining me in this conference call to discuss Vasta Platform's second quarter 2021 results. With me on the call today, we have Mario Guio, Vasta CEO, and Guilherme Melega, Vasta COO. 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, expectations for future periods, or expectations regarding our strategic product initiatives and their related benefit, 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 issued yesterday, as well as those more few 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 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 may reference known IFRS financial measures on this call. The known 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 now give the call over to Gil to make his opening statements.

Thank you, Bruno. Thank you all for participating in our earnest release. I would like to start on slide number three with some highlights of the quarter. Net revenue expanded 17% in the second quarter, backed by the growth in the ACV and also in the non-subscription In the 2021 commercial year to date, subscription revenue X-PAR increased by 18%, while PAR, our hybrid subscription product, was down 15%. As we previously commented, the textbook chain was heated due to the higher reuse of textbooks affecting both PAR and our non-subscription businesses. Even with all the challenges that the second wave of the COVID caused to the business, we expected to record a high single-digit organic growth in the subscription revenue this year and a double-digit organic growth excluding PAR. Complementary solutions have been the highlight of the cycle with 51% growth to date, which evidences the high potential of this segment offers. Adjusted FVA was negative in 17 million reais in the second quarter due to the unfavorable revenue seasonality of the second quarter, also hit by the higher provision for doubtful accounts and by the enhancement in our corporate structure following the IPO. We note that the second quarter is typically a not representative one in the composition of our operating results. Finally, we posted a net loss of 24 million reais in the quarter, but an adjusted net profit of 125 million reais in the cycle, 31% up. That said, I pass the floor to our CFO, Bruno Jardino, who will detail our financial results.