Vasta Platform Limited

Thank you for standing by. My name is Kathleen and I will be your conference operator today. At this time, I would like to welcome everyone to the VASTA platform first quarter 2025 financial results. 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. And if you would like to withdraw your question, press the star one again. 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 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 and 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. Thank you. And now, I would like to turn the call over to Sever Silva, CFO. Please go ahead.

Good evening, everyone, and thank you for joining us in this conference call to discuss VASTA Platform's first quarter of 2025 results. I'm Cesar Silva, VASTA's CFO, and today we have the presence of Guilherme Meleger, VASTA's CEO, who will be joining me on the call. Let me now hand over the floor to Guilherme Meleger, our CEO, to make his opening statement.

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 2025 sales cycle. I'm pleased to share our progress and achievements made so far. This first quarter also represents halfway through the 2025 commercial cycle, which runs from October 2024 to September 2025. In this quarter, we have continued delivering strong economic and financial results. with a particularly highlight in our free cash flow. In the 2005 cycle to date, our net revenue increased by 11% to reach $1,129,000,000. This growth was primarily driven by the successful conversion of our annual contract value, ACV, into revenue and achieving $1,000,000,000 and 19 million, a 17% increase compared to 2024 cycle to date. Complementary solutions continue to present the highest growth rate among our business segments, with a 24% expansion in the cycle to date compared to the same period last year. Moving to the company's profitability, our focus on operational efficiency and cost saving continued to bring results. Adjusted ABTDA for the 2025 cycle to date was 420 million reais with a margin of 37.2%. It has been an increase of 5% from 402 million reais performed in the last cycle. These gains were driven by a favorable sales mix benefiting from the growth of our subscription products. Finally, Our cash flow generation was the main highlight of the quarter, totaling 144 million reais in the 2025 sales cycle, which represents 176% higher than the same period in 2024. The last 12 months' free cash flow to adjusted ABTDA conversion rate improved from 42.5% to 50.8%. reflecting our sustained efficiency measures. These measures include improvements in the collection process, such as process automation, reminders and past due notifications, customer segmentation, and faster renegotiation of delayed receivables. Additionally, we implemented several initiatives to achieve better discipline on the payment side, including vigorous financial planning centralization of payments on a single monthly date and negotiating longer payment terms with suppliers. In addition to the financial highlights, I would like to emphasize our continuous development of our technological platform, Plural, which enables us to provide better service to our customers. Starting in 2026, our schools will use Plural AI with many new tools focusing on the concepts of inclusion, diversity, and equity in continuous education. Rural AI advances towards creating a welcoming educational environment for all students with the creation of an individualized education plan. The AI generates personalized pedagogical recommendations and assist teachers and schools in inclusive practice. providing an innovative solution to help educators transform challenges into opportunities for growth. I'll now turn back to Cesar Silva to talk about the financial results of the quarter and the sales cycle to date.