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spk00: Good evening, ladies and gentlemen, and welcome to Vitru's third quarter 2022 earnings conference call. All participants are in a listen-only mode now. Later on, we will conduct the question and answer session and instructions will follow at that time. As a reminder, this call is being recorded and will be available on Vitru's IR website. Now, I would like to introduce the host for today's conference call, Mr. Carlos Fritas, Vitru's CFO. You may begin.
spk03: Thank you, Pereira. Good evening, everyone, and thanks for joining us again. It's a real pleasure to be here with you all for the release of our third quarter of 2022 numbers. Here with me I have Pedro Graça and William Atos, our two co-CEOs, Maria Carolina Gonçalves, the head of Investor Relations, and Raquel Suzaki and Helio Crespo Jr. from our Investor Relations team. A slide presentation, as you know, will be part of today's webcast, which is also available in our IR website at investors.vitru.com.br. So I trust you all have this presentation in front of you. And before I begin, I'd like to make note that as detailed in page 2 of the presentation, Safe Harbor is in effect for default. So now I'd like to invite you all to go to page 4 of this presentation. Here we show some important highlights of the last month. The first one is, as you remember, we announced an investment agreement with Crescera Capital for an amount of R$300 billion, fully primary capital increase, which, by the way, was closed today. Today was the closing of the primary capital increase of Crescera into vitro. for a total consideration of roughly $58 million, so around R$300 million, which was closed today. So as of today, Crescera is already a shareholder of Vitrum, so another reference shareholder in our capital table. We also announced a few weeks ago that we were going to launch a rights offering that we indeed launched a few weeks ago in October 24, allowing our current shareholders to subscribe for new virtual common shares at the same price, at the same USD price paid by Crescera, so $16.02. So this process is still ongoing. The deadline for shareholders to accept this and subscribe for the new shares is next week, 17th. And closing of the transaction will be in the following week on the 23rd. And I do expect an additional capital increase between 100 and 150 million reais. So now, in November, we're going to receive around 400, 450 million reais of new capital that is going to be used fully or basically fully for the repayment of debt aligned to our plan when we finance the business combination with UNICEF. On the right part of the slide, we also had another very solid intake cycle for 2022.2, the second semester of this year. We grew around 30.8, 31% combined between UNICEF and UNICEF. It was around 23% for UNICEF and around 50% for and I'm going to give you more details on that a bit later. And also, we had this quarter, in September, the acquisition of ReadyNN, which is a leading educational platform focused on secondary education students, so our niche clients, especially those who want to prepare for the NN exam. So it's a nice distribution channel for us as well to generate leads and to be closer to our future clients. On page 5, I have here the main financial indicators for this quarter. Both the organic numbers, I mean, without the consolidation of UNICEF-DMAR, to facilitate your comparisons, and also on a consolidated basis, meaning with the contribution of the UNICEF-DMAR results since the closing of the business combination on May 20th. I mean, with four months and a half of . So throughout this presentation and in the release material as a whole, we are going to provide information on an organic basis and on a consolidated basis to be as transparent as possible so that you can make your appropriate analysis. So here on page five, we highlighted the increase first in net revenue in our core business, which is digital education undergraduate segment. which was up 124% this quarter compared to the third quarter of last year, while the consolidated net revenue was up 170%. It's even higher than the net revenue growth in digital education undergrads segment because of, as you know, the strong business specialty of medicine within UNICEF-Domar. We also grew our adjusted EBITDA by 271% this quarter. So we reached a very strong growth, not only on organic basis, in which we grew by 28%, but we grew 207% and our adjusted EBITDA margin is now at 35.8% in the third quarter of this year. Just as a reminder, on a pro forma basis, when you look at last year numbers, we had around 34.5% of ABD margin. It was around 29% for Vitro X unit of the month and 39% for unit of the month. So the pro forma average was 34.5 for a full year of last year. Now, this quarter, we had 35.8. So we are already seeing the first effect of our synergies in function of our integration. As we announced a few months ago, we have some levers for synergies arising from integration. The first one, the most important one, is personal cost. And part of our increase in margins now, part of it is already coming from these synergies. Adjust cash flow for operations. increased even more, 290% in this third quarter, with a cash flow conversion of 110%. And the adjusted net income was up 386% this quarter. So it is a clear, I would say, already accretive transaction, the basic combination with Unicef's model. On page six, I'm going to go quite quickly here on the slide, but I always like to highlight what we are delivering and what we had before the IPO. So as you know, we had four growth avenues, four teams for growth. The ramp up of kernel hubs, the opening of new hubs, the increase in cost offering, and inorganic growth. And we are delivering the four growth avenues. So now we have around 745,000 students, including the ones from Unicef do Mar. On an organic basis, we grew by around 100,000 students between the second quarter of 2020 and the third quarter of 2022 within Unicef do Mar. We went from 600 hubs to now more than 2,100 hubs, being more or less 1,000 in Unicef do Mar and 1,100 in Unicef do Mar. And we have now a strong presence in the Southeast with more than 700 hubs in the Southeast. We started to offer nursing last year, as you know. We are going to start offering psychology in the short term once it is finally approved. And with Untenomad, we are now the number one player in digital education in Brazil. with the two brands, Unicell and Unistomar. On page 7, just to give you some more details about some of these growth avenues, here we show the growth and the maturation curve of our hubs. This is, in itself, the most important driver for growth in revenues. It is the maturation of the hub we have already in place. So here we showed the same old curve and comparison within each brand with differentiation from one year to the other in each of the years for hubs that we have. So here we have a 41% maturation index, meaning that we could grow our student base in 1.5 times to reach 100%. with the same help we have today. So it is important growth with limited education risk. On page eight, the breakdown, the distribution of our digital education undergraduate students throughout the country. So important growth in all regions, especially, as I said, in the Southeast. The Southeast now has 182,000 students. That is already the second most important region in the country with a 340% growth year-on-year. And on the right part of the slide, the breakdown of the geographic presence of hubs with, again, the southeast now being the most important one with 700 hubs, meaning 200% increase from what we had within one year ago. On page nine, the growth in the cost-to-cost offering It's also important to show here that recently we increased the number of allowed seats in nursing. So this is what, here on the slide, we show that now within Universidade do Mar, and in Acelvia, we are able to offer even more seats and increased intake than what we had as a possibility in the past. This is an important growth avenue for us. And in the future, hopefully soon, we'll be able to offer law, psychology, and in the short term, even dental care. On page 10, this is a number of indicators and KPIs that we monitor as a way to show and to measure the satisfaction of our clients. in terms of technology focus, in terms of satisfaction with our support for them. So we, within Unicef do Mar and Unicef Selvi, we have the two top brands for digital education in Brazil. When you see, for example, the grades for our app on the left part of the slide, or the Reclame Aqui grades, on the right part of the lives. So this is to show the why, why we are growing faster than competition, why we are having a better performance. The underlying reasons for that is our focus on our clients, our focus on technology, our attention to details within the operations of V2 as a whole. And on page 11, just to finish this part. Again, the huge geographic complementarity of our hubs throughout Brazil. As you know, there's a nice fit between Nestaven and Sedomar. And we have today an important synergy lever, which is the penetration, the faster penetration of hubs in cities in which only one brand is present. So in these cities, we have already a partner that knows the local reality, that understands the local market. So we have today around 750 small and medium cities, which has only one of our two brands. So the financials on face wealth. Here we show that we have reached an increase of 130%. in our student base in digital education undergrad students year on year. Organically, it was around 20% within UniaSELVI. So now we have 672,000 students in digital education undergrad segments. And as I said, a strong growth in intake this year, 23% for UniaSELVI, 51% for Unicef-Dumas. As a reminder, UNICEF-AMAR grew 55% in the first half of this year. Why was that? For a number of reasons. One of that is that UNICEF-AMAR used to grow in steps, in installments, in expansion of hubs. Differently from UNIASELVI, which usually has been opening a number of hubs, given a number of hubs, 150 more or less on average per year. UNICEF opened a lot of hubs in 2018 and now again in 2021, beginning of 2022, opened again another huge round of new hubs. So they had a huge increase in intake in the first half of this year and now we have again this performance with 50% increase in intake this year. On the right part, bottom right of the slide, we have the average ticket for this segment, for our core business, which is digital education and the graduation. For Unia Selvi, we are increasing by 7%, so the same trend that we have seen in the last year, in the last semester. We have a unique hybrid model. Here, the The differentiation aspect is the academic model. So we have been able to more or less increase tickets aligned to inflation, sometimes slightly higher, sometimes slightly lower, but more or less over time in line with inflation. For Uni Sedomar, there was a decrease of 7% year on year, and that was basically because of the huge intake this year. As you remember, in the first Half of this year, the decrease for only 7% was 2%. Now it is 7% because of this second semester of a huge increase, the first and now the second semester of this year. So this is basically a matter of mix. As you know, the average ticket of a new student is lower than the average ticket of a senior. So a person in the fourth year of graduation, for example, has a higher ticket than the one that has just joined the company. And why is that? Because we, through all the course, we increase tickets above inflation. So now, as of now, a person in the eighth semester of , has a higher ticket than the one who has just joined our courses. So this is a matter of mix, and going forward, We have a number of best practices that we are already starting to implement in both brands. For Unia Selvi, it is the pricing management as a whole, which is going to be important for Unicef-Domar going forward. So over the medium term, we expect to have a nice performance here as well in Unicef-Domar.
spk04: On page 13, net revenue, gross profit, and just EBITDA.
spk03: So again, 170% increase in net revenue, 190% increase in gross profit, and 271% increase in just EBITDA. So our margin went from 26% last year to now 35.8%. On an organic basis, this went from 26% to 27%, so there was already an organic growth within only a selfie, as we had been saying in the past, through the maturation of herbs, through the gains of scale, etc. And now, with Unse de Mar, a huge jump in margin to 35.8 now.
spk04: So, on page 14 and 15, it has here the numbers, the contribution of each segment.
spk03: I'm not going to go through details in this light. I'm going to jump now to page 16. to show the breakdown and the contribution of Unicef-Domar. So here you can see that in this quarter, more than half of our net revenues is coming from Unicef-Domar. And within Unicef-Domar, you can see here the breakdown as well. So it's more or less 55 or 60% in digital location. being 57% digital education under graduation, and 3% continued education, mostly digital. So 16% digital and 40% on campus, being 25% medical and 15% on campus ex-medical. So those are the big numbers for the breakdown of the revenues of . On page 17, we have the breakdown or some more details about our core business. And here on the right, the breakdown of our current student base. So here it's important to highlight that already today we have more or less 25% of health courses within Unias Telvi, which is higher than what we have within Universidade do Mar. Only 21%. So there are some courses that are just now starting to be offered within Única do Mar in health. Going forward we expect as well the weight of premium courses which have a higher ticket to gain weight within the overall portfolio of Única do Mar and with that to sustain the average ticket. Page 18, medical business growing within 7 hours, reaching now 55 million reais in the third quarter, so around 15% of the overall net revenue of the company, with a premium course with every ticket of more than 10,000 reais per month, and still in maturation. There are some peaks. both in Maringá and in Corumbá that are still maturing. On page 19, the other two segments, on-campus ex-medical and continuing education. So on-campus ex-medical, a huge increase with the consolidation of Unicef do Mar. given the weight and the size of this business within Unicef Mark, but with a slight decline for Unia Selvi from 9.8 to 9.1. This is aligned to our vision that going forward, the market trend is the continuing increase in the relevancy of digital education in the country. You all have seen the latest census numbers that were released last week. that basically confirmed what we all knew, that the digital education was growing a lot last year. So it grew slightly more than 20% last year, already coming from a very high base, which was 2020, while the on-campus segment lost steam. So we do believe that going forward, this trend will continue. It is intrinsic. It is a secular trend of digitalization of the whole economy, and the digitalization of preferences of customers throughout Brazil. On the right part of the slide, continuing education. Our continuing education business in the last quarter has been negatively impacted by the reduction in the average duration of some courses. This is a market trend, as I explained in the past, which impacted us and all other players. But anyway, it's important to highlight that most of the shift is over, so when you see the organic numbers for UniaSelvi, net revenues this quarter are already higher than what we had in the third quarter of last year. On page 20, just to show here two numbers, as I said, the organic margin of Vitru went from 26% to 27.7% this quarter, and now 35.8 would go into the month. Regarding costs and expenses on page 22, cost of service on a quarter and 90-month basis There was a gain here as well in margin on an organic basis, clearly, given, as I said, the gains of scale of Unicef-Selvi. The quarter margin, growth margin, went down a little bit in the 90 months because of the weight of the on-campus business of Unicef-Selvi. Business more than compensated by the GNA and by reduction in PDA and sales and expenses. So GNA here on the right, you can see that we went down from 8.4% of net revenue to 5.7% in the quarter. And from 7.8 to 6.4 in the nine months of this year with four and a half months only of unit to the month. So this is to show that we have a quite lean structure this part of our DNA to maintain this agile structure and to have a very, let's say, lean mentality. On page 23, sun expenses, as I said, going down as well from 16.3 to 13.9 in the quarter with Unicef already. On organic basis, there are also a slightly lower CAC this year, down more or less 3% this year within UniaSELVI. So, this is also an important measure to support margins over time. It is the contribution of UNSEDOMAR to our selling expenses. The same is valid for PDA on the right. PDA, when you see the organic numbers of UniaSELVI It is slightly lower in the 90 months of this year, slightly higher in the third quarter of this year. But when we see Unicef do Mar contribution, this is down from 16% to 10.4% on a consolidated basis this quarter. So going down a lot because of the way that Unicef do Mar manages collection over time and bad debt. As I said, for Unia Selvi and Unicezumar, there are some best practices to be exchanged. Unicezumar is going to benefit from the pricing management expertise of Unia Selvi and Unia Selvi is going to benefit from the bad debt and dropout management of Unicezumar. Finally, on page 24, net income and cash flow from operations. So an important growth in adjusted net income. So the adjusted net margin going up in the quarter from 9% to 16%. And so this is just to show that even with the debt that we raised for the business combination, overall it is a very accurate a transaction. You can see these numbers in the quarter. Going forward, we expect in the following quarter, an important growth in the net earnings of Vitro as a whole. Finally, on the right part of the slide, adjusted cash flow from operations, also with a huge, huge increase in the quarter of 290%, R$ 147 million in one quarter of cash flow from operations. It is important to highlight that this is cash flow from operations, which is before CAPEX, of course. But when looking for CAPEX, our CAPEX this quarter amounted to only 6.5% of net revenue, down from 11.6% in the third quarter of last year. So even when we take CAPEX into account in the cash flow, there is an important gain of scale here with 1 to the 1. So that was it from my side. Now let's open for questions.
spk00: Thank you. The floor is now open for questions. If you have a question, please press star 1 on your touch-tone phone at this or any time. If at any point your question is answered, you may remove yourself from the queue by pressing the star key. Questions will be taken in the order they are received. We do ask that when you pose your question that you pick up your handset to provide optimum sound quality. Please hold while we poll for questions. Our first question comes from Luca Marchesini with Itaú VBA. Please go ahead.
spk05: Hey, good evening, everyone, and thank you for taking our question. We got a couple of questions regarding average ticket. So first, average ticket increased 7% on the digital education and graduate segment. So can you please comment on the competitive landscape and what we should expect in terms of ticket dynamics going forward, especially considering the deterioration in the economic scenario? And then secondly, we observed a decline in average ticket in the quarter. Can you please provide more detail on the strategies that the company will implement in order to increase this ticket going forward? Thank you.
spk04: Lucas, thanks for your questions.
spk03: So, the dynamics of the market and then what we're going to do about it. Basically, the market is competitive, as we all know. It was competitive and is still competitive today. Today, more competitive than what it was in the past. It is a very competitive market. There are some players more aggressive than others, but it is a market that is consolidating within fewer names, fewer and stronger names. So the trend is that smaller players are being wiped out while the growth is being concentrated within five or six minutes. So this is the trend that we had today, we had last year, and I expect as well to have next year. So when you look for the ticket dynamics of Unia Selvi, the big reason for our differentiation in ticket is that we have a very granular approach to tickets. We have a lot of inputs from our local partners and we have systems here in the house and incentives as well to manage tickets appropriately. So this is something we have been doing for a few years in Unia Selvi and with that we have been able to increase tickets over time. So the first reaction is because of our model, which is also true, but our model was already differentiated in the past as it is today. The reason why we have been able over time as well to improve tickets is that we have methods and skills and knowledge in-house for that, which we are going to apply for only 7 months. And so we have already started to change now for the current intake cycle that just started now in November. We are making a few changes in the pricing methodology and the pricing incentives and the granularity of prices for Unicef do Mar as a whole that we expect to have a positive outcome next year for Unicef do Mar.
spk05: That's very clear, Carlos. Thank you. Take a look at it.
spk00: Our next question comes from Mirela Oliveira with Bank of America. Please go ahead.
spk01: Hi, Carlos. Thank you for taking my question. So, there are two questions here from my side. So, this quarter, we saw an increase in dropout ratio for both Unisys money and UniaSelvia. I'm just trying to understand here If this is an effect of the new regions you guys are entering or it is a new trend we should start seeing from now on. And the second one, if you guys could comment a little bit on the performance of these new regions you guys are entering. This has been a different price strategy. We should expect an impact from that on tickets going forward.
spk04: Can you please repeat your first question, Mirela? I could hardly hear you in the first question.
spk01: Yeah, sure. Can you hear me better now?
spk04: Yes.
spk01: Okay, so the first question is about the dropout ratio. We saw that both for Unisismar and Uniselvi, dropout ratio had an increase. So I'm just trying to understand here if this is an effect of the new regions or if this is a new trend we should start seeing from now on.
spk03: Okay, so starting with your first question. Indeed, the dropout increased in both brands, but for different reasons. The first, for Unicef do Mar, it is clearly a matter of mix. So, as you know, most of the dropout is concentrated within newcomers. So, we had a 55% increase in intake for Unicef do Mar in the first half of the year. So, because most of the dropout is with newcomers, this is translated in an overall higher average dropout ratio for ONI SEDOMAR, now in the third quarter, when they have to renew their enrollment now in the middle of the year. So, this is for ONI SEDOMAR. For Uniaselvo, there is a slight increase in dropouts. Not a big number, but just a very slight increase in dropouts, which is basically due to the macroeconomic environment. That's why now in the third quarter of this year, our PDA number for Uniaselvo is slightly higher than what we had in the third quarter of last year. But for the full year, it is slightly better. But it is true that for... what we saw is a slight increase in the dropout ratio of UNICEF. And the price dynamics for the new regions, as we expand, we don't have an overall trend here, because there are different expansions in different regions, so for UNICEF-Domar, It is increasing a lot outside of South East, while Unia itself is increasing a lot in the South East. We always have a more aggressive pricing when we enter a new region, especially, not even a city, but a new region. And then once we... This is the penalty to pay, the price to pay, to have your first step into a new region. And so after two or three semesters, when we are already more known in the region, once we have our recommendations working in our favor and word of mouth working in our favor, and then we start to slightly increase price over time. We have done this in a lot of regions. We have done this, for example, in Minas Gerais in the past when we entered there in 2018. So now it's normal price for Minas Gerais. So the new regions that we are entering, we were slightly more aggressive than the average prices that we have because it is the price to pay to enter a new region. It is part of the game. It's also part of the game that we, over time, In this region, once we have more mass, more CPU, and more brain recognition in this region, we price normally.
spk02: Okay, perfect. Thank you, Carlos.
spk04: Thank you, Mirela.
spk00: Our next question comes from Vitor Tomita with Goldman Sachs. Please go ahead.
spk06: Good evening, all, and thanks for taking our questions. Two questions from our side. The first one is related to a bit of a follow-up on some of the previous questions, which is just how much of a funny fact has the current macroeconomic scenario or any macroeconomic pressures actually been happening on pricing, dropout rates, and other metrics? Are you seeing these macroeconomic trends any macroeconomic pressure become relevant at all? And are you seeing any different trends for students so far in the fourth quarter? Or is macro more of a bit of an issue, but not a main driver for anything that you are seeing? And the second question would be a bit of a longer term one. Assuming that there is any announcement of an expansion in FIAS or any new government programs targeting specifically on-campus education? How could that change or affect your strategy for the on-campus segment, if it affects it at all? Thank you.
spk04: Hi, Victor. Thanks for your questions.
spk03: I mean, the macro, coming back to the question of Mirela about drop-off ratios. When you saw the dropout ratio of UniaSELVI, for example, and here we have this information we have in our spreadsheet that we have included in our website a couple of hours ago. We have our retention rate of UniaSELVI, which is always much higher in the second and in the fourth quarter, and lower in the fourth and in the third quarter because of the renewal of the enrollment. So in the third quarter of 2022, our retention rate is down 0.3%. So 0.2% comparing the third quarter of 2021 to the third quarter of 2022. And I think that we all agree that currently the situation, the market situation with high interest rates, high inflation, etc. It's not an easy one. And even in this scenario, the retention rate of Unia Selvi, just to compare apples to apples, because the one of Unia Selvi is not comparable, because it has a much, much higher weight of newcomers. But when we look for Unia Selvi, which had more or less the same performance as what it had last year, it went down 0.3 points. So, macro, of course, it is important, but we have been able to serve these ways and to perform nicely. Of course, if the macro conditions improve, it can be good for the whole sector, for the whole economy and, of course, for GitHub. Which brings me to the second question about CF. I mean, we have no clue about whether there will be a new version of CIS, if it's going to be for digital education students or only for on campus, etc. What we do believe is that now digital education is much more, I'd say, present and much more base case solutions than it was in the past when CIS was created. So if there is a new sort of public financing for education, we do believe here in the company that it will be for the whole sector as a whole because it is now most of the students, they are enrolled in this education process. So this location is the way, the tool to maximize penetration of higher education in Brazil going forward. So if the government wants to foster this penetration with CS, for example, in our vision it makes sense to include the whole sector, on campus and digital. And the consequences of CS for us, we see this as positive because Because what we saw when FIES was changed in the last years, we saw an increase in private financing, we saw a reduction in prices as a whole. So if there is a new version of FIES for the whole sector, there will be, in my vision, more sustainability for prices as a whole in the sector. for prices for the on-campus and for digital, as a consequence. Because today, as you know, there are overall price pressures for the whole sector as a whole. That is different in our case, but for the sector as a whole, there is a price pressure that with CS could, I would say, be lighter than without CS.
spk06: Very clear. Thank you very much.
spk04: Thank you, Peter.
spk00: Our next question comes from Lucas Nagano with Morgan Stanley. Please go ahead.
spk07: Hi. Good evening. I have two questions on our side. The first one is related to slide 11. You showed the number of cities with only one or two brands. And my question is if you were able to start opening hubs in cities with only one brand? And how was the reception from the current partners? The second question is related to Unisys Amade intake. There was a deceleration this quarter to numbers a little bit behind the industry levels. And could you comment? And from what I understand, you haven't changed the pricing strategy as of the third quarter yet. So could you comment on what could have impacted this metric.
spk03: Thank you, Lucas. On page 11, we showed the number of cities with only one brand. And we are already opening hubs in cities that have a partner, for example, that is now opening or preparing the opening of hubs of UniaSelvia. It is already occurring. So part of our synergies is the faster acceleration, the faster opening, sorry, of new hubs opening, especially in this type of city. So this is already happening. So we are opening hubs in the cities, but we are also opening hubs in smaller cities in which none of the brands are present. But you're right, it is now one of the most important levers that we have for expansion is to have the same partner which they offer only one brand to now offer the second brand in a different location, in a different store, if I may call the hub a store, but already knowing the local market and understanding the dynamics of the local community. For the intake of UNISOMAR, you're right, the changes in the pricing, this is starting now in November, so the pricing that was followed for the second semester of UNISOMAR was the same one that was already starting when we closed the view. So in May, when we closed the discrimination, the second intake cycle was already starting at UNISOMAR. And because of anti-gun-jumping provisions, we were not discussing, let's say, commercial issues between UNICEF and SEDOMAR before the closing of the deal. So going forward, there will be some changes in pricing, but not what we see now in the second semester of this year. So the performance of the intake of UNICEF and SEDOMAR The most important driver was, as I said, the huge increase in the number of hubs that we had in Sedanar now compared to what we had one year ago.
spk02: Perfect. Thank you. Thank you, Lucas.
spk00: Once again, if you wish to ask a question, please press star 1. Our next question comes from Mauricio Cepeda, Credit Suisse, via webcast. Thank you for disclosing Unicezumar data standalone. What were the main reasons for the decline in tickets and retention rates year over year in DE undergrad there?
spk04: Hi, Maurício.
spk03: Those questions were the ones that I just answered. The reason for declining tickets and retention rates, it is basically the huge intake. So, every ticket is a matter of the weight of newcomers and seniors. So, now we have a huge increase in the weight of newcomers, new students, within the whole student base of ONU Sedomar. which newcomers have lower tickets than seniors, and most of the dropout is concentrated within new students. So, that's the main reason for the reduction in prices and in the retention rate. So, going forward for prices, as I said, we are starting to work on this repricing using the methodology and the skills of Lunga Selvin, and for For retention, the retention itself of only a month is better than the retention itself of only a selfie. So when you look for the previous year's numbers, you can see that. So going forward, the mix of students will be also important driver for this overall weighted average calculation.
spk02: Thank you.
spk00: Once again, if you wish to ask a question, please press star 1.
spk02: Please hold. If you wish to ask a question, please press star 1.
spk00: Once again, to ask a question, please press star 1. This concludes today's question and answer session. I would like to invite Mr. Carlos Freitas to proceed with his closing remarks. Please go ahead, sir.
spk03: So, once again, thank you all for your interest in Vitro. And now I'd like to invite you all for our first Vitro Day. We are organizing our first Vitro Day. It will take place in Maringá, Next year, in January, it will be on the 19th of January in Maringá. So, more details to come. So far, save the date for our first VITRA Day. Thank you a lot, and good evening.
spk00: That does conclude VITRA's conference call. Thank you very much for your participation, and have a great evening.
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