Vasta Platform Limited

and welcome to the VAST platform second quarter 2023 financial results. My name is Krista and I'll be the conference operator today. During today's presentation, our executives will make a forward-looking statement. 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 includes, 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 benefit, and our expectations regarding the market. Forward-looking statements are based on our management's belief and assumptions and on information currently available to our management. These risks include those set forth in the press release that we are issuing 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 today. 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 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. I will now turn the call over to Marcelo Wernick, Investor Relations. You may begin.

Good evening, everyone. Thank you for joining us in this conference call to discuss VASTA Platform's second quarter of 2023 results. I am Marcelo Wernick, VASTA's Investor Relations, and today with me We have the presence of Guilherme Melliga, VASTA's CEO, and Cesar Silva, VASTA's CFO, who will be joining me on the call. During this call, we'll cover key highlights, financial insights, and strategic developments that have shaped our performance in the 2023 cycle to date. We also have plenty of time for your questions at the end of this presentation. Let me now hand over the floor to Guilherme Melliga, our CEO, to make his opening statement.

Thank you, Marcelo. Thank you all for participating in our earnings release call. I'd like to cover slide number three with some highlights of the 2023 cycle today. As we approach the end of the current cycle, we are pleased to report that in 2023 cycle to date, our net revenue had a substantial growth of 22% and reached 1,179,000,000. Moreover, Our accumulated subscription revenue during the 2023 cycle to date has reached R$1.12 billion, representing an 18.5% increase compared to the previous year. This growth closely aligns with the 20% growth projected by our 2023 ACV, indicating that VASTA has truly evolved into a robust platform with consistent and recurring revenue. Notably, our complementary solution segment continues to stand out, showcasing the highest growth rate among our business segments, with a remarkable 45% increase in the current cycle compared to the previous cycle. In 2023, Vasta made a significant stride by expanding its product and services offering to the Brazilian public sector . During the second quarter of 2023, we generated R$4 million in revenue from the B2G sector. Moving to the company's profitability, in the 2023 cycle to date, our adjusted EBITDA experienced a growth of 19%, reaching R$372 million, while maintaining an adjusted EBITDA margin close to the 32%. Finally, we continue to see the normalization of our company's cash flow generation. In the 2023 cycle to date, our free cash flow reached 87 million, 131% increase from the 37 million recorded in 2022 cycle. It represents 50 million improvement in the free cash flow generation between the cycles. It's worth noting that our last 12 months free cash flow to adjusted EBITDA conversion rate was seeing significant improvement, rising from 11%, to 26%. This progress is a direct outcome of our company's growth and unwavering commitment to operational efficiency. I will now turn back to Marcelo, who will talk about the financial results in the 2023 cycle to date.