Cogna Educacao S A S/Adr

Good morning, everyone, and thank you for waiting. Welcome to the teleconference for the 4023 of Cogna. I emphasize that if you want simultaneous translation, we have this tool available in the platform. To access it, just click the interpretation button in the globe icon in the bottom part of your screen and choose your language of preference, English or Portuguese. For those hearing the conference in English, there is the option of muting your original audio. Just click and mute original audio. We are telling you, informing you that this conference will be recorded and made available in the website of the company, www.ri.cogna.com.br, where the complete material of our results are also available. During the presentation of the company, all participants will have their mic enabled. Then we'll start the Q&A session. To ask a question, just click in the Q&A icon in the bottom part of your screen to be in the waiting line. When you are invited, there will be a request for you to open your mic, and you open your mic to ask the question. We suggest that the questions are all made at the same time. Before going on, we would like to tell you that the event observations during this conference regarding the business perspective that Cogna projects as operational and financial targets are the premises of the company, as well as the current information available for Cogna. Future considerations are not a guarantee of performance. They involve risks, uncertainties, and premises as they refer to future events. Therefore, they depend on circumstances that may or not happen. Investors and analysts must understand the general conditions, the sector conditions, and operational factors as things to affect the future results of Cognon and may lead to to results differing materially to those expressed in the future considerations. Now I'd like to pass on the floor to Mr. Roberto Valerio, CEO of Cogna, to start his presentation. Please, Mr. Roberto, the floor is yours. Thank you. Good morning, everyone. Thank you for participating in the teleconference to discuss Cogna's results in the fourth year of 23 and the complete year of 23. We have in this call Frederico Vila, our financial vice president, Guilherme Meleger, director-president of Asta, and Rosaki, our director of investors and corporate finances. As we always do, we'll have about an hour for this call. We'll explain the situation for about 40 minutes and then 20 minutes for the Q&A. So I'd like to start the presentation by saying that we are quite pleased with the result of the year. This is the third following year that in a consistent way and in a growing way, we can deliver more revenue, EBITDA, March EBITDA, GCO. In 2023, we already delivered almost 900 billion reais in GCO post-KPEC. In 2020, we had a guidance that we would deliver 1 billion reais in post-capture in 2024. So in 2023, we got quite close to this goal that is appointed out to the end of the year. So I would reinforce that the results came in a very positive way, both in the fourth quarter and during the year in the three business units All of them grew in revenue, webbed out the margin and generated more cash flow during the year, which showed the consistency in the execution. Obviously, it's one of the BU competing different business and market different markets and they all could have better performance, better results, improve the services and the satisfaction of the client. We emphasize that in the message of the administration. All the products had the a better experience for the clients in B2B, B2C, and B2B, with increasing NPS and processes, which made us believe that what is ahead of us is also positive because the improvements are very consistent across the board. To summarize each one of the verticals, Croton in 2020 reached more than $3 billion in revenue, with a growth of almost 9% of revenue regarding 2022. I know one of the points that we have questions has to do with the growth of the revenue in Croton in the fourth quarter. I will talk more about it later, but I'll tell you that we had 2% in the fourth quarter influenced by the anticipations of dependencies of the students due to the improvement of the re-enrollment process and the allocation of dependencies. So they chose earlier in the semester. Therefore, this revenue was almost saturated in the third quarter, which means that the 2% of revenue in the 4-3 is not a point of concern because the average in the second semester was 4% for Croton. We see a perspective in... capture and re-enrollment very positive for 24. So I'll talk more about it later. But this is only a circumstance. This is not a point of concern. We'll keep the pace of growth of Crotone 24. Now talking about the EBITDA, the recurrent one reached 1.1 billion. It's almost 30%. Compared to 2022, we suppose that we are gaining in the tuitions with the growth of revenue. In the fourth quarter, the student base grew 6.4%. In the pace that we have with the capture and re-enrollment, we understand that the base will keep the same or even increase, so we have a positive perspective ahead of us. We also saw the growth of the average ticket in the presidential when we compared the second semester of 23 and 22. So this is the result of a strategy that we've been discussing for more than three years that is focusing on the presidential students and focus on the courses with the greatest lifetime value, like law course or the biology course, just to give some examples. So we keep working and having everything properly. And then the cross-med that along with the students and a great part of the curricular matrix being digital. So cross-med is another thesis of growth in cross-med that keeps growing strongly. It grew more than 26% in the quarter, more than 25% in the year, with a growing EBITDA of 68% of EBITDA. in the fourth quarter so this is a business unit that is quite healthy with high rates of growth in nebida and gain in profitability which is also very important we understand this vertical will keep being a growth driver to us in the next years we will talk about it more later Regarding Vasta, Melly will then get into details, but this was also a very beginning in 24 with the growth of 16%. We reached more than 35% of the total cycle for 24. The revenue for complementary solutions is still growing. We know with that on purpose that we are enriching our portfolio and more and more They are taking this product to offer in the regular curriculum and so on. So we keep growing with very high rate, more than 40% in the fourth quarter. The net revenue reached more than 500 million reais with a growth of almost 10% in the quarter that is the first quarter of the commercial cycle. because the fourth of the year is the first of the commercial cycle of VASTA. In the fourth quarter, we had 18% more than the fourth quarter, and the recurrent EBITDA in the year reached more than R$416 million. We are quite satisfied with the VASTA growth. We'll talk more about it later, but also with good perspectives, not only in the migration of pools to... premium teaching system, but also with complementary solutions with the new growth as C2G and that has a lot of contract signs with a very positive perspective to 20,000. Now, to finish with us, the fourth quarter had the recurrence of 42%, three points percent of before the previous year. So it was very positive. And despite, if you don't remember, that in 2023, we suffered a lot of pressure, especially with the increased costs of paper and stationery that pressured our courses. Now, talking about Cognizant specifically, I emphasize that I think the main highlight of the year, the quarter, is the GCO post-CAPEX growing 65%. I reinforce 900 million reais. Remember, we started this journey in 2020 with 240 million reais, and now we are reaching 900 million. So our CAGR in this period from 21 to 23, in averaging GCO, was more than 50%, showing that, well, we can... be confident that what comes in the future is quite positive and our guidance is quite possible for 2014. I think the other good news is that the post-CAPEX GCO and post-DAB service reached 148 million in the quarter and 200 million in the year. So we can not only do everything we want to do and invest everything we want to invest. After all, we have more than 400 million in CAPEX and pay the DAB on the 200 million reais in cash. So it shows how strong we are. SLE is decreasing and we are leveraging the total, so it will become better and better. Regarding the EBITDA results, I would like to reinforce that this is the tenth consecutive quarter of strong growth, and I reinforce consecutive because it shows consistency. we have one quarter that goes very well and the others as well. So we can have that for 10 times consecutively growing 12% in the fourth quarter, almost 16% in the year, the three units pushing this revenue and also helping in the EBITDA growth in 17% in the quarter and almost 19% in the year. So I think the reflection on that is the reduction on the leverage that we reached at less than 1.5%. 88 that we had in the third quarter. So we are now in 83 with a very good perspective to keep reducing the leverage with a strategy that we have here that is good in liability management based on the cash generation of the appointment. Now I'll invite you to keep talking about cotton. So in page five, the first information that we bring is dropout. We have a slight increase, two points percentage in a low percentage and almost 7% in high percentage. So we obviously have a growing basis with better participation of new students. They have a greater dropout rate. So dropout is not a point of concern. We see the re-enrollment in a very well-developed manner. we can gain and improve our re-enrollment year after year and in this semester from 23 to 24 it's not different so i would say this is basically stability nothing to call our attention the student base is growing a lot 6.4 percent and remember that during the year we've had a quarter that we reach at nine percent and i reinforce the point that we have good perspectives for the turning for the first quarter of 24. And we know that the student base will keep growing. Now going to slide six, we have the net revenue of the quarter that grew 1.7. This is the sixth consecutive quarter of growing the revenue. We showed how this growth curve would be, and I know that at first the numbers showed that the revenue is decreasing in speed, but it's not. It was an anticipation in the selection of the dependencies of students that anticipated to the third quarter. So I reinforce what I mentioned in the beginning, the revenue growth would be 4% if we normalize the third and fourth quarters, both in the tickets and the student base that are good in this cycle of renovation and capture. So we believe that the revenue, the net revenue of Croton for 24 will keep growing in single digits, but about as it was in 22 and 23. We are reinforcing this trend in the revenue from 22 to 23, as we have in the graph, almost 90%, but I would like to go to the next slide, slide seven. The first chart shows to repeat the strategy that it's based in growth, growing cost of revenue, and we see that this growth is due to the cost that is basically fixed, especially if we operate in the 100% online courses or hybrid courses just like us. The variable course is less relevant for growing the revenue, grows profitability. And now talking about one of the segments, the presential one in high presentiality, we have two products in the presential courses and the one that we call PAD premium, like nursing, engineering, there are courses in the distance modality, but with almost 50% of presidential classes. And in the presidential, the average ticket grew 3%. which reinforces our ability to repass the prices, especially in the high-presential courses. So you see a drop in the average ticket in the high-presentiality, but between products, there is no drop of tickets. It's because we have more mix. We have more 80 premium students. But in the segment, the volume will grow 7.3% and the revenue 1.3, the high-presentiality. In low-presentiality, we grow the ticket in the semi or the 100% online, remembering that these are the courses with no labs, but with presidential classes at least once a week. So here we are growing the ticket both in the semi and in the 100% online with the volume growing 5%. This segment grew 7% in the quarter, okay? Now going to page 8. I'd like to talk a little bit about the cost lines and I think the highlights here are that we keep investing in marketing due to some reasons. So here's The capital cycle, the first one in the year is quite important. It is the one bringing the highest amount of students. So we invested more in the fourth quarter in marketing and we will invest more in the first quarter as well to try to speed up the enrollment because it is very important and it brings a lot of revenue to the whole year. It creates a relevant base. Also, the second point we are discussing for many quarters is that the consolidation progress of the national grant is a long-term project. It's not for one or two quarters, at least two years. So we are increasing the market expenses, but they are not constant. They are not forever, but for a period of 24 or maybe 20, even the first quarter of 25, and we'll bring elements to you that are potentially here in the first quarter, showing how much we are gaining in awareness and how we are progressing the strength of the brand nationally. So it is an investment that makes a lot of sense, and we'll put the growth of Kraken and the second items collecting both items, corporate and operational expenses, if we account for the two points, we gain 2.6% in margins, which shows efficiency, gain in scale. We can be quite efficient in these two lines, in profitability. And the PCLD as well, that for three years, we are reducing the percentage of the net of And in the fourth quarter, we could reduce to 2%. So I think these lines accept our marketing because we have a strategy of growth and consolidating the brand. But aside from that, all the other lines are generating efficiency. In slide nine, we have a little bit more of what we have to receive. PCLD, as I said, is improving continuously. Here's using the average indicator for receivables. We are reducing the average receivables in the fourth quarter. It was 54 and now again 44. So it's quite healthy and the receivables are reflective of all the effort we are carrying out in the quality of capturing the students, the new students. And all the methodology with a lot of criteria, renegotiating the enrollment, generating a lot in PCLD, but above all, in the cash flow, it is within the 900 million reais of capital. And the last line graph, we see that the PCLD overall is stable in 9.5, 9.6%. Slide 10 now. The recurrent EBITDA, we have in the fourth quarter, our EBITDA growing 1.1%. Obviously, the revenue grew a little less, which reflects in the EBITDA as well. But I think it is important to emphasize the year because in fact, what reflects the stability over the quarters is that and what the operation is giving is the EBITDA growing almost 13%, 12.7%. even with a gain in margin of 1.1% in margin gain, with consistent results that we are quite confident that this performance of 424 will keep being positive because we have many lines and we see it better in the gross margin and TCLT and reduction of operational and corporate expenses, except for the marketing, as I mentioned, but we have a lot of efficiency ahead of us. Slide 11 now brings in a little bit more of productivity cost in the campus. We keep increasing the average students per campus. So we started our restructuring the fourth quarter of 2020. We had less than 1,500 students per campus. Now we are having almost 2,100 students per campus, which helps us reduce the cost as we can see the operational costs that I mentioned before. I think the highlight here is that we keep having the same amount of company, 112. We didn't reduce anyone in the last quarter. But looking ahead, especially the next two or three years, we have many rental contracts that are long-term contracts that are being finished and we don't have definitions, but we are checking and analyzing many potential projects to have some changes, whether in... or changing the address that can bring some economy to us. Now in slide 12, we're talking about Procomed. We are quite satisfied with the results of Procomed. It's a business unit that is bringing very positive results with revenue and EBITDA and margin growth. So you see that in the quarter or in the accumulated of the year, we grow more than 5% of the revenue in EBITDA with also expressive growth, 69% in the quarter, 42% in the year. So the emphasize here, the highlight is that we have Ponta Porta College that is in process of authorization and has went through the whole process. We are now waiting just for the disclosure in the official newspaper so that we can start capturing students in the second semester. So we will have some extra guests to go. And obviously we'll participating in the call for BID. We believe we can be quite competitive in this call and reinforce what we mentioned in other calls that we have four requests of medicine colleges that are under analysis and the four medical schools have been visited and we had score fight in the visit. Therefore, they are prepared to operate. Obviously, there is the context of the votes in the Supreme Court and so on. And we understand that if, in fact, the final decision of the Supreme Court follows the vote of the reporter, we will have at least four morphologists to operate. We have six today. With Ponta Porã, we would be with seven. And with the four extra, we would be with 11, with good perspective of growth. despite the maturation of the units that we have today. So, platform match has very positive perspectives with what's coming ahead. Now, I would pass on the floor to Guilherme Meleger to talk about the results of ASTO. Thank you, Roberto. Starting with cloud 14 in the net revenue, we finished the fourth quarter with 554,000 net revenue of about 10% of growth, a positive highlight in the acknowledgement of 16% of the 24. The year revenue was 1,486,000,000, that is 18% growth compared to 22. In here, not only with the performance of growing SUV, but also with the contribution of B2G, with $81 million acknowledged in 2023. Now, going to the details of the revenue, I will focus on the quarter that is the opening of the commercial cycle of 2024. So, we acknowledge 16% growth in enrollment, reaching 516%. And the emphasis here is 42% in complementary solutions. The demand of social, emotional, bilingualism, of computing thought are quite strong. The scenario is quite promising. And we still have a penetration basis in the schools with this system in a very good way of about 10% of our schools adopt complementary solutions. So this is a growth pathway that is quite significant for us. Now going to page 16, talking a little about costs and expenses. Here, focusing on the quarter, the fourth quarter, our total cost of CMD had a gain in productivity of 2.2 percentage, which shows to us that the pressure of paper and drinking houses is behind. So we have a fourth quarter with top level lower of this input. Another highlight is on the operational expenses and the administrative expenses that we have. We have 3.2 points of productivity. And here it was a huge effort to unify the process to deal with automation improvement of processes, thinking about our clients, And the benefits are here in the fourth quarter with this improvement of operational expenses. This new improvement finds a great investment in marketing expenses and sales, which is also expected for 24 as well. We will progress on that with investments to our growth, despite having two new businesses that we are also investing in marketing that is our business of franchising chart and B2B. So with that, we finished the total cost and expenses in the quarter with a 2.6 point percent. So our revenue in the fourth quarter increased 10% and the cost 5.2%. The result of that is in slide 17, our EBITDA. with revenue growing and costs not at the same speed. Our EBITDA margin in the fourth quarter went from 39.3 to 42.3%. So 3.0% of improvement in margin, as Roberto mentioned in the beginning, which made our year margin in EBITDA was also better than 22%. Overcoming our initial expectations, we finished with a margin growth of 27.3, going to 28%. Another positive highlight was the EBITDA that we are delivering, the required one, reaching 417 million with a growth of 20.8% result of the revenue and the new businesses and the control and the cost efficiency in a very significant way. Now I'd like to talk about the academic results on page 18. So our B2B is focused on the premium skill and what makes it being premium is the academic results of the students. So here we selected Unglu, that is our main brand and 50 systems of the country. So the results also go through other brands that we have. But I'll focus on Unglu. On the left, we have the approvals, and we do with more than 6,000 national approvals. And despite the rank of the first, second, and third, that is quite eloquent in communication, although of the first one, I would like to emphasize the amount of students, hundreds of students that we have in the main courses of engineering, medicine, and law. So all groups. The student has access not only to the best universities, but to the career they chose. In USP and UNICAMP, that is the core of our results. I will emphasize that USP and UNICAMP are the two main universities in Latin America in the main rankings. And UNGLU is an absolute leader in these two universities since 1976, when FUVEST was created. And in 1918, when the UNICAMP SATs was created. To take the best course here, I would just mention that UNGLU had more than one third of the spots in UNICAMP and 45% in USP. So the academic result is wonderful. in the most demanded courses of the country. And now the medicine courses like Provesti and Paulista and Onesti, they are still growing in results with 74 students at Paulista University and 61 students at Onesti. We emphasize that because this is the core of our business. Reputation is really important in our business, which makes the partnership with our school thing better and better, so we deliver a good result to students, a good business to the school, and the result of that is a good result to our shareholders. Now, going to one blue start on page 19, I'd like to emphasize that we launched our network of bilingual franchise focusing high performance based on Anglo brand, and we have three units in operation. when with more than 300 students that is our initial flagship the second franchise unit the second unit first franchise is in Alphaville overcoming our expectations we expected 120 students we have more than 173 in Alphaville And as we communicated, Liceu Pasteur, that is quite a traditional institution that is more than 100 years old in São Paulo, that will launch the Start to Own Glucose next year. And this school has the potential of having more than 1,000 students. I also emphasize the prospect of franchisees of Start to Own Glucose. that we have 15 contract times, 64 under negotiation. And we are quite happy with the launch of this growth that is quite close to our core business. So we believe that we'll have a low risk in execution with high value to be created. Lastly, I emphasize our satisfaction with the results in 2023. with the revenue growing 80%, EBITDA 20%, cash flow 112%, the margin above 30%, and two important growths that are a reality, that is, Angus Startup and B2G. With that, I'll pass on the floor to Fred to talk about Saber. Thank you, Madigan. Good morning, everyone. I'll start my presentation on Sabe. Reminding you that Sabe comprises our business of the national dietic book, Red Balloon, and other business. I'll start in slide 21, talking about the financial highlights, the financial indicators of net revenue and EBITDA. The net revenue of Sabe reached R$890 million in the years 58%. And in the third quarter, a growth of 59.4%. And what were the main indicators of growth? We grew in the national program of didactic books 62% in other services. That is telling our program, Asserta Brasil, that we provide didactic materials to the cities and we grew 102%. Now, considering EBITDA, our recurrent EBITDA grew in the quarter 65%, and in the year, we grew 75%, reaching an EBITDA of R$175.2 million. I emphasize that we disclosed in our financial relations and the release details of the business a printed book, and these sales as a result of a reversal in the non-recurrent value of the company, which is positive. Now, talking about Cogna, and Roberto mentioned, and now just an overview of Cogna with the financial indicators for the net revenue and recurrent EBITDA. In the first graph, we have the quarter and accumulated with a growth in net revenue in the fourth quarter of 12.6%. And in the year, a growth that reached almost 16%. We reached the net revenue of 5.9 billion reais. That was motivated by the growth in revenue in all our business units. whether cotton, Vasta, or Sabir, as I mentioned before. In the recurrent EBITDA and margin EBITDA, we had a growth of 17.1% in recurrent EBITDA in the fourth quarter, as Alberto mentioned before. It's the 10th, 11th consecutive quarter of growth, and in the accumulated, we reached 1,736,000 with a growth of almost 19% with a margin expansion of 0.7%. Now, going to slide 24, I'm talking about the operational cash generation of the company. Remember that last year, we concluded the generation of operational cash with 540 million reais. We had the growth in the year of 65.4%, reaching a generation of 894 million reais. In the quarter, we had a cash generation of 241 million reais with a growth of 282%. And now remember that our operational cash generation after CAPEX and after debt services in the fourth quarter was 148 million reais. And in the year we reached the cap, cash flow of R$ 200 million. Now, going to slide 25, talking about the net profit, which was damaged here, analyzing the fourth quarter and the year, we have a loss in the quarter of net loss adjusted of R$ 289 million and the net profit of R$ 400 million 83 million reais just to remember that in the fourth quarter we had uh the laws on the fiscal factors of the previous years and the company adjusted that due to social organization social organization because we are now participating in my magic and participating in this program we won't incorporate it temporarily. So that's why we have the statement of income tax that doesn't have effect in the cap of the company. Now going to the leverage and that, the main messages of the company is nothing different from what's happening in the other quarters. So in the graph of the presentation, I saw the fourth quarter of 2022 with a leverage of Now we reduced it and reached 1.83 times, nothing different from the recurrence of the cost generation of the company plus the growth of revenue and the growth of EBITDA, generating a leverage that we can reach. And it's important to mention to you that we reduced in the next decade in about 30 million reais in the fourth quarter compared to the third quarter. And the company has enough cash flow and cash generation, so we don't need to have new capitals in the 24th, which doesn't mean that we can have new captures, but aiming at liability management. We understand that our schedule today is cheaper, and during the year of 24, we may have new captures, but to prepay some more expensive debt, so we would have cheaper debt to take longer on that. Now, considering slide 27, The company has a cash position in December 31st, 2023, of 1,794 million reais, a gross debt of 5.072 million reais, and a net debt of 3.278 million reais. Showing here in the other graph, our amortization schedule. But as I mentioned before, we have an availability in the cash and cash equivalent of 1.794 billion. In 24, we have amortization of 1.475 amortization. So our cash generation in 24 is more than enough for us to pay our debt with no new capitals. In 23, The company concluded many captures, and as I mentioned before, they always aim to reduce the debt cost and at the same time enlarge the period. With that, I finish the presentation of Cogna by showing a strong generation and strong growth of revenue, strong growth of EBITDA, and I finish here with the growth of and operational cash generation reaching 894 million reais, reducing the net debt. And in the future, we believe that with our improvement of our credit, we can have some capital to reduce even more our debt costs and have a greater period for that. With that, I thank you for the presentation and pass on the floor to Roberto. Thank you, Fred. Now going to slide 28, we're talking about ESG. We are quite happy with the accomplishments of 23 and more than talking about yet, and there are many related to ESG. I would like to emphasize the three main formations here. The first one is the acknowledgement that's better than saying what we do is showing the acknowledgement that we have from many entities that are assessed and that many And that graded us very well. So I would like to emphasize ISPB3. And we are the only educational companies being in this index. And we participate in this index. And we improved our production with many progressions of many indicators of the company. And we are also leaders in four ESG rankings. And it's the second following years that we are part of the sustainability year on ESB, the only company in Latin America to be part of the yearbook. And we are in the second global position in the sector. And one important point is that besides that, the CDB will have two positions. And we are now B, graded B, the CDB that goes from B minus to A. So we are progressing in an important way here. And we are very proud of of having the pro-ethica seal of TGU that shows the quality of our work, especially taking into account that we have many products that are sold to government and they are the B2B channel. So having the seal of the union control ship with this acknowledgement is something that pleases us a lot. And then I would like to emphasize in 2021 that we launched the 14th Cognitive commitment for a better world with a series of initiatives that we have goals every year. I would like to emphasize that we reached 131% of the target for 2023. We didn't get to the end. But we had 43% of the targets before the deadline that is 25. And we included one new target that is to reduce in 50% the total emissions of the greenhouse gas until 2034, according to Scopes 1, 2, and 3. And the third point I would like to emphasize is that we are quite proud to be the company with the Somos Institute to be the company to manage and keep working on the premium that is known as the best award of the basic education in Brazil, that is Educador Nota 10, an award coming from Vitor Tivita Foundation. That is now our responsibility with the Somos Institute to keep this legacy and this important story to the Brazilian education. Now in my final words, I think we have a lot of polypoints here. We have six strategic pillars here. The growth, we understand that we are quite well positioned regarding the business unit, and we operate with what we call the lifelong learning. We have products from 200 years, we have our own products, and more and more we have products products that are developed in partnership with other organizations and that we can offer. So we now have the opportunity to explore this during the year. And in terms of experience, we have the client experience and the B2C, B2P, and B2G. We have improvements in the UX of everything and we can see better both in the graduation courses and also especially an important progression in everything that is problems and everything that pasta is doing with the school. So we have the best return to school in basic education with NPSs and better grades and earning a lot of awards with experiences of entities assessing the client experience. in isolated ways, so it's not only numbers of the company, so we have the numbers of external agents that are also very positive. From the point of view of institutions, we are creating processes, evolving with the systems, investing in digitalization. I mentioned here that AI is a priority for us. We are applying AI not only in the core, in the product, but in all processes and in the administration. We understand it will give bringing efficiency to us from the point of view of people and culture we have three important pillars here to everyone that is the mood the feeling of being the owner and the team and the customer centricity of focusing on the student or the client which is very important to us we have a solid group of the 70 partners that are executives with the shares of the company And we were awarded many times during the year. We evolved in the Glassdoor scores and engagement of collaborators. We have grown in assessment. So the culture pillar is quite important. And innovation, we have a growth mindset that we repeat every day in the organization that is according to the way we express for employees, but is in a concrete way focused on open innovation in contact with the startups and the innovation ecosystem besides the corporate building initiative that will deal with a good potential for growth just like the case of Gompi, our platform for producers that is still a collaboration but is growing and we believe will bring a lot of results in the future. And in ESG, I mentioned a little, we fulfilled a commitment to all of us. Having said that, I finished the initial presentation of Coluna and I reinforced that we are quite happy with doing so, especially with the growth of cash generation for 24. We are quite close to the target and 24 could be a very good year. So now we are open for questions and thank you. Now let's start the Q&A session. Please remember that to ask a question, you must click the Q&A button in the bottom part of the screen and write the question to be answered. When you are invited, you have a request to open your mic and then you open your mic to ask the questions. We ask you please to make all the questions at once. Now let's go to the first question from Vinicius Figueiredo from Itaú PDA. Vinicius, let's open your audio for you to ask your question. Please go on. Good morning, everyone. Thank you for giving me the time to ask the question. I would like to talk a little about the perspective of 24, because Roberto mentioned about the expectations of crowdfunding revenue growing in five digits in 24, but Then they failed. And to us, we had a problem on the internet, so we didn't understand what he mentioned. So if we can only clear this point, that would be the justification for this five digits and making use of this point. If you can talk a little bit about what you saw. in this capture cycle, and if you can mention a little about the expectations of growth in volumes and tickets, whether in high or low provincial, it would be wonderful. Thank you. Okay, perfect. Thank you, Vinicius, for a question regarding the revenue growth. There are some aspects to bring a lot of confidence to us regarding the first quarter and obviously the whole year of 24. We have a chapter cycle that is quite positive. We are growing with a higher rate than what we do in chapter both in the middle of the year and in the second semester of 23. And regarding the first semester of 23, Obviously, I can't give the specific numbers, but the capture is growing, so it's growing above what we grew last year. And it grows in high physicality and in row one. We see the presence of growing a little more. I think we have a series of factors related to that. I would say that maybe health is actions that we are taking at home. But I also see a better trend of the students to spend more money and you follow other sectors. And we see, for example, in retail, it's quite fast in January, February and March. People with more income buying more. And I think it is also reflecting in the capital to us, especially in the high potential courses that are courses with a higher average ticket rate. So this is the first point to make a statement that the revenue will grow by high digits. This is what I wanted to say because the capture is growing. And as I said, we have a better NPS level than the quality of the previous periods and new students that are better in terms of processes. we see better re-enrollment rates that are not only better, but more advanced compared to the previous years. So how do we measure that? We check both students and their re-enrollment. We follow the curve to see if the basis is re-enrolling more or faster. And in our case, they are enrolling more and faster, which brings safety to us in the capture and in the re-enrollment. And the third effect that has nothing to do with the revenue, but as we see that United Plans is quite controlling the PPP numbers, United Plans is the beginning of the loss of students and the greater turn, and we see that it's quite positive. Everything is controlled. So I don't see perspectives for our revenue not to grow in the first quarter during the year. So we are confident of that. And our second question about the capture, I answered, we are growing the high and the low ones. Thank you, Roberto. I'm sorry, Vinicius, I just forgot to mention that we didn't finish this chapter cycle. Obviously, we are in the end with 30 days, but just a disclaimer that this cycle is not over yet, and we'll show that in the first quarter report. Okay, perfect. Thank you very much. Thank you, Vinicius. The next question comes from Marcelo Santos from JP Morgan. Paulo will open the audio so that you ask a question. Please, you may go on. Thank you. Good morning, Roberto, Valério, Fred, Melegan. Thank you for the opportunity. I have two questions. The first question is if you can comment a little on how you see the competition environment. I mean, you mentioned that the capture. You talk a lot about capture, but if you can talk about the ticket And the second question is, I don't know if you can share, but according to your legal advisors, what is the greatest probability of a vote in agency 31 in the Supreme Court? I know this is something that nobody knows, but what is your best understanding on that, if you can share? Marcelo, thank you for your question. Well, the first about the competition environment, I think that we've been talking about it, and as far as I can understand, the competitors, the peers, they are also talking about it, and I see a competition environment from the point of view of price in a very stable way, as it was in the previous cycles. I think that the competition for price and a sale something that was more aggressive in the two or three previous cycles is not the same i think it's still the same so i don't see prices dropping aggressively obviously all of us in the segment we can deal with inflation especially to the veterans base but If your question is if there is a concern regarding competitive prices to drive the prices below, we don't see that. And the second question about medicine and the discussion in the Supreme, well, it's a side. We have 11 votes, but what we hear from our advisors is that in general, when we analyze the history, most of the decisions follow the first vote of the uh folks post and so obviously there are other elements nobody knows exactly that but we understand that this vote that is the one to have our four colleges operating that would allow us to go on with that is the vote that we believe but based on that on what i said due to the history of decisions okay perfect quite clear thank you very much Thank you, Marcelo, for your question. Our next question comes from Lucas Nagano from Morgan Stepp. Lucas will open your audio so that you can ask your question. Please, you may proceed. Good morning, everyone. Thank you for this space. I have two questions. The first one is regarding the total margin for 24. As you mentioned, the revenue, we would like to understand what are the levels there. for the margin. I mean, the growth margin, they progressed a lot, but now they are stable. So we would like to know if there is a space for leverage and investment in marketing. I think you mentioned something that will keep it at a high level of 24, but will it expand or keep stable? And the second question is regarding the tax impact in the fourth quarter. because that I could understand, it's a reversible effect test. You can retake the incorporation process, but it may generate some tax inefficiency. So did you quantify this value? Can you talk a little bit more about it? Thank you. Lucas, hello. Thank you for your question regarding the cross on margins. I would say that the growth margin is aligned that we have improvement, especially with this effect that we always described here, that great part of the courses are fixed, the costs are fixed in the model of online costs and hybrid courses. So we understand that as the revenue grows with discussions that I have, that it will keep speeding up in the first and second quarters. It brings more revenue with a cost incremented that are very low, so we can gain on margin, and this is an effect that I see that will be long-lasting. I wouldn't say that it's forever, but long-lasting, because if we keep the revenue with this growth, we'll gain gross margin. This is the first point. The second point, I think we still have space for CBD, despite it being quite positive and 44 days for receivables is quite a healthy number, but we still have space and segments can be improved. As we are quite criterious in the capture and the enrollment, we improve little by little, but mainly in the corporate and operational expenses. As the revenue grows and we have other businesses contributing to the operational and corporate costs, we can dilute these costs. I would say that the only point of attention to pressure a little our margins can be more concentrated in one quarter than another, that are the marketing expenses that are concentrated in the fourth quarter of 23 and the first one of 24, that we want to speed up the capital and we want to go on in the consolidation of all high-end weather branding. So we need to remember that this is a business decision. We are investing more in marketing because we believe that we can have a long-term growth and we can strengthen our brand in the long term, bringing value that is different from having a cost That is a cost simply to operate. No, this is a cost to grow. So aside from this marketing course, we'll keep doing what we've been doing all the last three years, being consistent, gain on efficiency with AI applications and automation that we can have to gain on efficiency. So it's a little every day, a little forever, and we'll do that. And now it's on the floor to Fred for him to talk about the process tax part. Well, this is Fred here. Thank you for your question about the tax income tax. And we did this adjustment in the tax due to the fiscal losses of previous years because we would start compensating that with incorporations to be done in 2024 with the different corporate numbers incorporated that we could compensate the taxes with the with the profits that we've been saving the taxes for. So, in some of the corporate numbers, we participated with the program Mais Magicos, and as we are participating, we can't have this incorporation. In the future, how do I understand that? Well, in the future, after the participation in Mais Magicos, and we have some time effects according to the rules, but in the future, I could... recreate, recover this with the company in cooperation. So the response is positive, but not for 24. In 24, as we are participating in Mais Médicos, we can't do that. Okay, thank you, Fred and Valerio, for the answers. Thank you, Lucas, for your question. Our next question comes from Rafael Barros from . Rafael will open your order so that you ask your question. Please, you may proceed. Good morning, good afternoon, everyone. So I'd like to ask two brief questions here. The first one about Kratom. I'd like you to tell us, give us an idea about the capacity use Croton is running. So we would like to understand the level of vacancy that we have. And the second question that has to do with that is that you mentioned briefly about potential negotiations of rent and so on. And I'd like to understand how you think we should start seeing the effects of this negotiations and potential reductions in the payment of rentals and the numbers of the company if it is something that we will only see next year or maybe we can see something this year. So that's it. Thank you. I have a question here about the cost and capacity. Today we are analyzing vacancies so we are having about 40 to 50%. So we see here that we have some spaces, which makes us happy. That is the capture of high potentiality, as Robert mentioned, in this cycle that is positive. And if we repeat that in the next cycles, we will be able to gain some operational leverage in our business. The second question about rental is that it's an important topic to us because given this vacancy, as I mentioned before, we are in the process, in the continuous process of renegotiating our rent. And you naturally see in the next two years, in 2024 and 2025, the effect that will be lower, like... benefit of about the unit of million or one unit of tens of millions, but in 2016 benefits of tens of millions of reais with the renegotiation of the contract, which shows the effect for cash. because our cash net will be lower in 24 and 25, but we captured a little of this benefit in 23, but the strongest one will appear in 26. Okay, thank you. Thank you, Rafael, for your question. The next question comes from Nando Bastos from City. Nando will open your mic so that you can ask a question. Go on. Hello, everyone. Thank you. I have two questions as well. The first about the B2G of Aston. Because there was no contribution, you mentioned some initiatives and so on. And I would like to know your perspective for the year. And the second question is regarding the guidance and cash generation. that we discussed here. So 1B and taking this new opening of the cash generation after the service, if you can share a little about the liability management that you have in the company, how much this 1B should revert after this date of the year? Hello, Leandro. It's Guilherme here. I'll start talking about the B2G from Vasta. So the B2G in Vasta in the fourth quarter had no acknowledgement.