<\/p>\n
\nVasta Platform First Quarter 2023 Financial Results<\/p>\n
S\u00c3O PAULO–(BUSINESS WIRE<\/a>)–Vasta Platform Limited (NASDAQ: VSTA)<\/b> \u2013 \u201cVasta\u201d or the \u201cCompany\u201d announces today its financial and operating results for the first quarter of 2023 (1Q23) ended March 31, 2023. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).<\/p>\n HIGHLIGHTS<\/b><\/p>\n MESSAGE FROM MANAGEMENT<\/b><\/p>\n \nWith the 1Q23 results reached halfway through the 2023 cycle, we have delivered on our guidance for economic and financial results as anticipated in the previous quarter. In the 2023 cycle to date (4Q22 and 1Q23), net revenue increased 17% to R$908 million, and subscription revenue grew 18% (or 22%, excluding PAR). Complementary solutions continues to present the highest growth rate among our business segments with a 44% growth in the cycle to date compared to the same period of the previous year. The 2023 ACV was slightly less concentrated in the first two quarters (65.1%) than in the previous year (66.5%), due to the different seasonality and product mix.<\/p>\n \nMoreover, we continue to see the normalization of the company\u2019s profitability and cash flow generation. In 1Q23, Adjusted EBITDA grew 10% to R$332 million, with a margin of 36.5%, a decrease of 220 bps compared to the same period in the previous year, as cycle margin was negatively impacted by 170bps due to provision for doubtful accounts (PDA) made in connection with a large retailer that entered bankruptcy proceeding in Brazil. Moreover, higher inventory cost caused by rising inflation on paper and production costs were partially offset by operating efficiency gains, cost savings and better mix due to subscription products growth. Free cash flow (FCF) totaled R$36 million in 1Q23, a 188% increase from R$13 million in 1Q22. In the 2023 cycle to date, FCF totaled negative R$7 million an 89% increase from negative R$65 million in 2022. The last twelve-month (LTM) FCF\/Adjusted EBITDA conversion rate increased from negative 52% (2Q21-1Q22) to 31% (2Q22-1Q23).<\/p>\n \nAnother highlight of 2023 is that starting in the first semester, we plan to begin offering our products and services to clients in the public sector (B2G), in addition to our existing private school client base. Our broad portfolio of core content solutions, digital platform and complementary services will allow us to access a public-school market in need of the solutions we have developed over decades for private sector. Accordingly, we have taken certain steps to (i) create what we believe to be an attractive portfolio of products and services, focused on state secretariats for education; (ii) allocate managerial and financial resources for this new business initiative; (iii) implement certain business-generating and marketing strategies for the public sector and (iv) establish a robust governance process to guarantee the highest compliance standard. The K-12 Public sector in Brazil comprises more than 32 million students, 5X the Brazilian K-12 Private students.<\/p>\n \nStart-Anglo, a key pillar of our growth agenda, Start-Anglo continues to grow. In the first quarter of 2023 we acquired a 51% stake of Escola Start Ltda. (\u201cStart-Anglo\u201d), a flagship school focused on promoting bilingual education with high performance in order to respond to an increasingly strong demand from families and students for academic excellence, bilingual education, and innovation. This will be a model-institution for the franchise project that we are launching this year at Bett Brasil, the biggest education event in Latin America that reaches its 28th edition in 2023.<\/p>\n \nBut more important than the improvement in our operating results is the success of our students. According to the results released in early 2023, Vasta\u2019s brands maintained the leadership in the number of approvals in the admission tests of Brazil\u2019s best universities (according to SISU). The performance of our premium brands was particularly highlighted in Medicine, the most competitive career in the country. Our top-of-mind brand Anglo expanded its leadership in admissions for Medicine at the University of S\u00e3o Paulo (USP), with an increase of 13% in admitted students compared to 2022. The top performance at Brazil\u2019s best universities is among the key attributes considered by K-12 schools when choosing a content partner.<\/p>\n OPERATING PERFORMANCE<\/b><\/p>\n Student base \u2013 subscription models<\/span><\/b><\/p>\n \n2023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2021<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n<\/tr>\n \nPartner schools – Core content<\/p>\n<\/td>\n \n5,032<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,274<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4,508<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17.0%<\/p>\n<\/td>\n<\/tr>\n \nPartner schools \u2013 Complementary solutions<\/p>\n<\/td>\n \n1,383<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,304<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,114<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17.1%<\/p>\n<\/td>\n<\/tr>\n \nStudents – Core content<\/p>\n<\/td>\n \n1,539,024<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,589,224<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(3.2%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,335,152<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n19.0%<\/p>\n<\/td>\n<\/tr>\n \nStudents – Complementary content<\/p>\n<\/td>\n \n453,552<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n372,559<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n307,941<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.0%<\/p>\n<\/td>\n<\/tr>\n \nNote: Students enrolled in partner schools<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nAs we conclude the period of return of collections, we update the number of partner schools and enrolled students for the 2023 cycle. The company serves nearly 1.5 million students with core content solutions. Our partners school base that use our complementary solutions increased by 79 new schools, growing 6% in the number of students served compared to the previous cycle. Aligned with the company\u00b4s strategy to focus on improving our client base in 2023 through a more diversified mix of schools and growth in premium education systems (Anglo, PH and Fibonacci), brands with a higher average ticket, lower defaults, greater adoption of complementary solutions and longer-term relationships. On the other hand, the reduction of our client base was concentrated on the low-end segment and PAR (paper-based), which have higher number of students on average, and a lower margin. Average ticket price of schools that remain in our client base in 2023 is 11% higher than that of schools that are no longer our clients.<\/p>\n FINANCIAL PERFORMANCE<\/b><\/p>\n Net revenue<\/span><\/b><\/p>\n Values in R$ \u2018000<\/i><\/p>\n<\/td>\n \n1Q23<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1Q22<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2023 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n<\/tr>\n \nSubscription<\/p>\n<\/td>\n \n357,211<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n333,781<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n801,161<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n680,624<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17.7%<\/p>\n<\/td>\n<\/tr>\n \nSubscription ex-PAR<\/p>\n<\/td>\n \n325,851<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n296,713<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n703,227<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n577,597<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.8%<\/p>\n<\/td>\n<\/tr>\n \nTraditional learning systems<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n269,678<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n251,148<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n554,143<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n474,299<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16.8%<\/p>\n<\/td>\n<\/tr>\n \nComplementary solutions<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n56,173<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n45,565<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n23.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n149,084<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n103,298<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n44.3%<\/p>\n<\/td>\n<\/tr>\n \nPAR<\/p>\n<\/td>\n \n31,360<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37,067<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(15.4%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n97,934<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n103,027<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.9%)<\/p>\n<\/td>\n<\/tr>\n \nNon-subscription<\/p>\n<\/td>\n \n45,624<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n46,801<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.5%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n106,693<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n98,217<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8.6%<\/p>\n<\/td>\n<\/tr>\n \nTotal net revenue<\/p>\n<\/td>\n \n402,835<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n380,581<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n907,854<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n778,840<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16.6%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n% ACV<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n29.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n33.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.3 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n65.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n66.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1.3 p.p.)<\/p>\n<\/td>\n<\/tr>\n \n% Subscription<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n88.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n87.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.0 p.p.<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n88.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n87.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.9 p.p.<\/p>\n<\/td>\n<\/tr>\n \nNote: n.m.: not meaningful<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn 1Q23, net revenue increased 5.8% compared to the previous year, to R$403 million. In the 2023 cycle to date (4Q22 and 1Q23), net revenue increased 16.6% to R$908 million, in line with our guidance. Subscription revenue grew 18%, or 22%, excluding PAR, in the 2023 cycle to date. The ACV 2023 was slightly less concentrated in the first two quarters (65.1%) than in the previous year (66.5%), due to the different seasonality and mix of our products.<\/p>\n EBITDA<\/span><\/b><\/p>\n Values in R$ \u2018000<\/i><\/p>\n<\/td>\n \n1Q23<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1Q22<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2023 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n<\/tr>\n \nNet revenue<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n402,835<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n380,581<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n907,854<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n778,841<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16.6%<\/p>\n<\/td>\n<\/tr>\n \nCost of goods sold and services<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(155,126)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(129,237)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n20.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(327,203)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(265,156)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n23.4%<\/p>\n<\/td>\n<\/tr>\n \nGeneral and administrative expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(127,281)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(126,088)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(247,169)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(252,159)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.0%)<\/p>\n<\/td>\n<\/tr>\n \nCommercial expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(51,061)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(47,933)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(101,266)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(93,332)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8.5%<\/p>\n<\/td>\n<\/tr>\n \nOther operating income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n994<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n933<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(927)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4,286<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(121.6%)<\/p>\n<\/td>\n<\/tr>\n \nShare of loss equity-accounted investees<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(528)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2,890)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.0%<\/p>\n<\/td>\n<\/tr>\n \nImpairment losses on trade receivables<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(10,380)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(8,896)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(39,153)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(19,624)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n99.5%<\/p>\n<\/td>\n<\/tr>\n \nProfit before financial income and taxes<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n59,453<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n69,361<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(14.3%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n189,246<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n152,856<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n23.8%<\/p>\n<\/td>\n<\/tr>\n \n(+) Depreciation and amortization<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n68,804<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64,287<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n138,672<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n125,951<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.1%<\/p>\n<\/td>\n<\/tr>\n \nEBITDA<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n128,257<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n133,648<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.0%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n327,918<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n278,807<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17.6%<\/p>\n<\/td>\n<\/tr>\n \nEBITDA Margin<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n31.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n35.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(3.3 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n36.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n35.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.3 p.p.<\/p>\n<\/td>\n<\/tr>\n \n(+) Layoff related to internal restructuring<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n487<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,459<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(66.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,095<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10,871<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(89.9%)<\/p>\n<\/td>\n<\/tr>\n \n(+) Share-based compensation plan<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,666<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,904<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(54.8%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,773<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12,023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(76.9%)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA<\/p>\n<\/td>\n \n131,410<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n141,011<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(6.8%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n331,786<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n301,700<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.0%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA Margin<\/p>\n<\/td>\n \n32.6%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.4 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n36.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n38.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.2 p.p.)<\/p>\n<\/td>\n<\/tr>\n \nNote: n.m.: not meaningful<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn the 2023 commercial cycle to date, Adjusted EBITDA grew 10% to R$332 million with a margin of 36.5%, representing a decrease of 220 bps. Cycle margin was negatively impacted by 170 bps due to R$15 million provision for doubtful accounts (PDA) made in connection with a large retailer that entered into bankruptcy proceedings in Brazil.<\/p>\n \nIn 2022 we acquired a 45% minority stake in Educbank Gest\u00e3o de Pagamentos Educacionais S.A. (\u201cEducbank\u201d), which registered a loss in equity-accounted investees in the amount of R$2.8 million in the 2023 cycle to date, mainly due to the performance of our equity-accounted investee in its early stage of operation.<\/p>\n (%) Net Revenue<\/i><\/p>\n<\/td>\n \n1Q23<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1Q22<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nY\/Y (p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2023 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nY\/Y (p.p.)<\/p>\n<\/td>\n<\/tr>\n \nGross margin<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n61.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n66.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.6 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n66.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.0 p.p.)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted cash G&A expenses(1)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(13.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(14.1%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.4 p.p.<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(11.9%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(12.7%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.8 p.p.<\/p>\n<\/td>\n<\/tr>\n \nCommercial expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(12.7%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(12.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.1 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(11.2%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(12.0%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.8 p.p.<\/p>\n<\/td>\n<\/tr>\n \nImpairment on trade receivables<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.3%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.2 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.3%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.5%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1.8 p.p.)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA margin<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n32.6%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.4 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n36.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n38.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.2 p.p.)<\/p>\n<\/td>\n<\/tr>\n \n(1) Sum of general and administrative expenses, other operating income and profit (loss) of equity-accounted investees, less: depreciation and amortization, layoffs related to internal restructuring and share-based compensation plan.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn proportion to net revenue, gross margin dropped 200 bps in the cycle to date (from 66% to 64%) mainly due to higher inventory cost caused by rising inflation on paper and production costs while Adjusted cash G&A expenses and Commercial expenses each reduced by 80 bps due to gains in operating efficiency, workforce optimization, cost savings and a sales mix that benefited from the growth of subscription products.<\/p>\n \nReported provisions for doubtful accounts (PDA) grew 1.8 p.p. between the compared commercial cycles. This increase in PDA was due to the provisioning of 100% of accounts receivable from a large Brazilian retail company undergoing bankruptcy proceedings, in the amount of R$ 15.0 million and represents 1.70 p.p. of our growth in reported provisions for doubtful accounts in the 2023 commercial cycle to date. Excluding this factor, the participation of PDA in relation to Vasta’s Net Revenue remained stable (2.6% in the 2023 commercial cycle to date compared to 2.5% in 2022 commercial cycle to date).<\/p>\n Finance Results<\/span><\/b><\/p>\n Values in R$ \u2018000<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1Q23<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1Q22<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2023 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n<\/tr>\n \nFinance income<\/p>\n<\/td>\n \n16,631<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n15,269<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n48,850<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n29,116<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n67.8%<\/p>\n<\/td>\n<\/tr>\n \nFinance costs<\/p>\n<\/td>\n \n(75,816)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(57,963)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n30.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(149,849)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(108,972)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37.5%<\/p>\n<\/td>\n<\/tr>\n \nTotal<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(59,185)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(42,694)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n38.6%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(100,999)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(79,856)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26.5%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn the first quarter of 2023, finance income totaled R$16 million, from R$15 million in 1Q22, and in the 2023 cycle to date, finance income increased 67.8% to R$49 million mainly due to the impact of higher interest rates on financial investments and marketable securities. Finance income in the 2023 cycle to date also includes a R$ 10 million gain due to reversal of tax contingencies incurred in relation to the acquisition of Somos-Anglo. Finance costs in 1Q23 increased 30.8% (quarter-on-quarter), to R$76 million and in the 2023 cycle to date, finance costs increased 37% to R$150 million, driven by higher interest rates applicable to bonds and financings, accounts payable on business combination and provision for tax, civil and labor losses.<\/p>\n Net profit (loss)<\/span><\/b><\/p>\n Values in R$ \u2018000<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1Q23<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1Q22<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2023 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022 cycle<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n% Y\/Y<\/p>\n<\/td>\n<\/tr>\n \nNet profit (loss)<\/p>\n<\/td>\n \n(2,224)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n20,190<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(111.0%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n73,669<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n39,970<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n84.3%<\/p>\n<\/td>\n<\/tr>\n \n(+) Layoffs related to internal restructuring<\/p>\n<\/td>\n \n487<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,459<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(66.6%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,095<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10,871<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(89.9%)<\/p>\n<\/td>\n<\/tr>\n \n(+) Share-based compensation plan<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,666<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,904<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(54.8%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,773<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12,023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(76.9%)<\/p>\n<\/td>\n<\/tr>\n \n(+) Amortization of intangible assets(1)<\/sup><\/p>\n<\/td>\n \n39,069<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n38,693<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n78,301<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n74,649<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4.9%<\/p>\n<\/td>\n<\/tr>\n \n(-) Income tax contingencies reversal<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(29,715)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.0%<\/p>\n<\/td>\n<\/tr>\n \n(-) Tax shield(2)<\/sup><\/p>\n<\/td>\n \n(14,355)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(15,659)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(8.3%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(27,937)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(33,165)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(15.8%)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted net profit (loss)<\/p>\n<\/td>\n \n25,642<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n50,587<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(49.3%)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n98,185<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n104,349<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(5.9%)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted net margin<\/p>\n<\/td>\n \n6.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13.3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(6.9 p.p.)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.8%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2.6 p.p.)<\/p>\n<\/td>\n<\/tr>\n \nNote: n.m.: not meaningful; (1) From business combinations. (2) Tax shield (34%) generated by the expenses that are being deducted as net (loss) profit adjustments.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn the first quarter of 2023, adjusted net profit totaled R$26 million, a 49% decrease compared to R$51 million in 1Q22. In the 2023 cycle to date, adjusted net profit reached R$98 million, a 6% decrease from a profit of R$104 million in the 2022 cycle. The gain related to the reversal of tax contingencies incurred in relation to the acquisition of Somos-Anglo, impacting corporate tax and finance results, was adjusted as a one-off gain that benefited the 2023 cycle results.<\/p>\n Accounts receivable and PDA<\/span><\/b><\/p>\n\n
\n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n