Vasta Platform Limited Q3 FY2024 earnings call

• 2024 sales cycle: Subscription net revenue grew 12.5% to R$1,358 million. Adjusted EBITDA grew 9% to R$449 million with a margin of 29.4%. Free cash flow in the sales cycle was R$146 million, slightly up from 2023. • ACV bookings for 2024 sales cycle were R$1,358 million, a 12.5% growth from 2023, with top performance from premium brands and complementary products. • B2B complementary solutions had a 21% expansion in the 2024 sales cycle compared to the same period last year. • Plurall's Start Anglo initiative: 34 contracts signed as of now, with over 200 prospects, and 5 new units expected to be in operation in 2025. • Pará state SAEB result: Used Vasta's Plurall technology to help over 340,000 students, with Pará moving from 26th to 6th place in the national ranking in high school SAEB. • 2025 innovation: All schools will have the Intelligent Assistant using artificial intelligence integrated in the platform, enabling teachers to create supplementary lesson plans, generate images, etc.

In the third quarter of 2024, Vasta's subscription revenue was R$260 million, a 6% increase compared to the third quarter of 2023. Non-subscription revenue, representing only 6% of total revenue, dropped 36% to R$14 million. For the 2024 sales cycle, subscription revenue grew 12.5% to R$1,358 million, accounting for 89% of total revenue. Non-subscription revenue in the sales cycle dropped 31% to R$102 million, and B2G revenue was R$69 million, representing 5% of overall revenue. Adjusted EBITDA in the third quarter was R$21 million, a 45% decrease from the third quarter of 2023. In the 2024 sales cycle, adjusted EBITDA grew 9% to R$449 million with a margin of 29.4%. Free cash flow in the 2024 sales cycle totaled R$146 million, a slight increase from 2023's R$145 million.

• 2024 sales cycle subscription revenue achieved a 12.5% growth. • Adjusted EBITDA in the 2024 sales cycle grew 9%. • Anticipates double-digit growth in free cash flow for the year end of 2024 compared to last year. • B2G expects to recognize revenues in Q4 for classroom 2025. • 2025 ACV is forecasted to have a high double-digit growth. • Plurall's Start Anglo and 5 new operating units in 2025 are expected to drive growth.

• Non-IFRS financial measures are mentioned, and there are risks related to market conditions, competition, and potential delays in contracts, such as the B2G contract being postponed due to municipal elections in Brazil.

Q: Regarding the B2G unit, which had no revenue in the quarter, and commercial expenses increase.

A: B2G contract was postponed due to elections but has a heated pipeline, expecting revenue in Q4 2025 for classroom 2025. Commercial expenses increased as part of growth investment for 2025 sales cycle, with expected normalized level around 12%-18% of revenues.

Q: About the competitive environment and ACV direction.

A: No significant change in competitive environment. Have a strong portfolio with premium brands and Plurall AI, expecting high double-digit growth for 2025 ACV compared to previous cycle.