Vasta Platform Limited

Thank you for standing by. My name is Novi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vesta Platform Third Quarter 2024 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. Before we begin, I would like to read a forward-looking statement. 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, 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 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 would now like to turn the call over to Cesar Silva, CFO.

Good evening, everyone, and thank you for joining us in this conference call to discuss Vasta Platform's third quarter of 2024 results. I'm Cesar Silva, Vasta's CFO, and today we have the presence of Guilherme Melega, Vasta's CEO, who will be joining me on the call. Let me now hand over the floor to Guilherme Melega, our CEO, to make his opening statements.

Thank you, Cesar. Thank you all for participating in our earnings release call. I would like to cover slide number three with some highlights of our 2024 sales cycle. As we approach the end of the current cycle, we are pleased to report that in 2024 sales cycle, our subscription net revenue has achieved a growth of 12.5%, reaching billion, 358 million reais. Vasta concluded the 2024 sales cycle with a 6% net revenue growth over the last sales cycle, mostly due to the conversion of ACV into revenue. Complementary solutions continue to present the highest growth rate among our B2B segment, with a 21% expansion in the cycle compared to the same period last year. Moving to the company's profitability, in 2024 cycle, our adjusted EBITDA experienced a growth of 9%, reaching R$449 million, while increasing an adjusted EBITDA margin to 29.4%. This increase was mainly driven by improvement gross margin benefit from premium products expansion, gains in operating efficiency and cost savings. Finally, we have seen some instability in our cash flow for this sales cycle. In 2024, cycle free cash flow totaled 146 million reais, a slight increase from 2023, which achieved 145 million reais. In Q3, we have above average payments related to paper and printing, which will be reduced to Q4. Moving to slide number four, The annual contract value ACV bookings for 2024 sales cycle achieved 1,358,000,000, a growth of 12.5% comparing to 2023 sales cycle. This amount represented the conversion of our expected sales based on contracts into revenue during the sales cycle and was slightly higher than previous disclosure. Our top performance continued to be premium brands and our complementary products. It's worth mentioning that our CAGR for the last five cycles was 18.5% of growth, showing our resilience and capacity to keep growing in a higher double digit for several years. I will now turn back to Cesar to talk about the financial results of the quarter.