VASTA PLATFORM LIMITED 4Q23 & FY23 Earnings Presentation
March 20, 2024
DISCLAIMER
This presentation contains forward-looking statements that can be identified using forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. Forward-looking statements appear in several places in this presentation and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them considering new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward- looking statements. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including in the section titled "Risk Factors" in our most recent Form F-1 and 424(b) prospectus. These documents are available on the SEC Filings section of the investor relations section of our website at: https://ir.vastaplatform.com.
We prepared this presentation solely for informational purposes. The information in this presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any of our securities or securities of our subsidiaries or affiliates, nor should it or any part of it form the basis of, or be relied on in connection with any contract to purchase or subscribe for any of our securities or any of our subsidiaries or affiliates nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.
We have included in this presentation our EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio, which are non-GAAP financial measures, together with their reconciliations, for the periods indicated. We understand that, although EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS. Additionally, our calculations of Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio may be different from the calculation used by other companies, including our competitors in the education services industry, and therefore, our measures may not be comparable to those of other companies.
2
Highlights FY 2023
+18%
Net revenue
+20%
Adjusted EBITDA
+R$100mn
Free Cash Flow
improvement
Subscription revenue +14% vs 2022;
Expansion of complementary solution: +34% vs 2022; B2G contributed to R$81mn in total Revenue
Adjusted EBITDA R$ 451 million (vs R$ 375 million in 2022); Adjusted EBITDA Margin increase to 30.3% (from 29.7% in 2022);
FCF totaled R$ 189 million (vs R$ 89 million in 2022);
FCF/Adjusted EBTIDA conversion improved to 42% (from 24% in 2022);
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Net Revenue | 4Q23
Values in R$ (million)
Total
554
505
of Net revenue
Subscription | ||
444 | +16% | 515 |
377 | +16% | 437 |
67 | +17% | 78 |
4Q22 | PAR Ex-PAR | 4Q23 |
B2G
Non-subscription
61
39
4Q224Q23
61
39
4Q22 | Non-subscription B2G | 4Q23 |
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Note: The Business is comprised of a single segment. We are presenting in this slide a supplemental information in terms of the sub-segments composing the reportable operating segment.
Net Revenue | FY 2023
of Net revenue
Values in R$ (million)
Total
1,486
1,264
20222023
Subscription
1,121 +14% 1,278
994 +16% 1,155
127 | -3% | 123 |
2022 | 2023 |
PAR Ex-PAR
B2G
Non-subscription
+45%
143 | 208 |
81 | |
143 -11%127
2022 | Non-subscription B2G | 2023 | 5 |
Note: The Business is comprised of a single segment. We are presenting in this slide a supplemental information in terms of the sub-segments composing the reportable operating segment.
Adjusted EBITDA and Adjusted EBITDA Margin
Values in R$ (million)
Quarter | Full Year |
39.7%43.2%
+20%
29.7%
30.3%
451
200
240
375
4Q22 | 4Q23 | 2022 | 2023 |
Adjusted by non-recurring expenses, expenses with share-based compensation plans and one-off M&A adjusted expenses. | 6 |
Adjusted EBITDA Margin
(%) Net Revenue | |||||
100% | 100% | ||||
Gross margin | |||||
62.6% | -1.0pp | 61.6% | |||
PDA | |||||
Commercial Expenses | 3.6% | -0.2pp | 3.8% | ||
Adjusted G&A | 15.3% | -1.2pp | 16.5% | ||
13.9% | +2.9pp | 11.0% | |||
29.7% | 30.3% | ||||
Adjusted EBITDA Margin | +0.6pp | ||||
2022 | 2023 |
Margin analysis as % of Net Revenue
Gross Margin
In 2023 it was impacted by rising global inflation on paper and production cost in our industry.
PDA
Increase in PDA due to a revised credit landscape and a prudent approach to risk management.
Commercial expenses
Higher expenses related to business expansion and marketing investments.
Adj G&A expenses
Reduction are driven by operational efficiencies and workforce optimization indicating greater cost- effectiveness.
Adjusted EBITDA Margin
In 2023 the EBITDA margin increased by 0.6 p.p. compared to 2022
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Adjusted Net Profit
Values in R$ (million)
Quarter
+32%
96
73
4Q224Q23
Full Year
+55%
60
39
20222023
Adjusted by non-recurring expenses, expenses with share-based compensation plans, amortization of intangible assets from business combination, one-off M&A adjusted expenses and one-off | 8 |
contingencies gain, net of the tax shield (34%) originated by these expenses. |
Free Cash Flow and FCF / Adj EBITDA conversion
Values in R$ (million)
Quarter | Full Year |
+111% |
(43)
41.8%
23.8%189
89
(0.1)
4Q22 | 4Q23 | 2022 | 2023 |
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1) Cash flow from operating activities less: income tax and social contribution paid; tax, civil and labor proceedings paid; interest lease liabilities paid; acquisition of property, plant and equipment; additions to intangible assets; and lease liabilities paid.
Provision for Doubtful Accounts (PDA)
Values in R$ (million)
Quarter | Full Year | ||
3.8% | |||
3.6% | 56 | ||
5.7% | 5.2% | 46 | |
29 | 29 |
4Q22 | 4Q23 | 2022 | 2023 |
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Disclaimer
Vasta Platform Ltd. published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 21:58:09 UTC.
