Q1 2023 Vitru Limited Earnings Call
Speaker 1: Order 2023, Burning Call, First Call.
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Speaker 1: We emphasize that the information contained in this presentation and any statements that may be made during the calls regarding business prospects, projections, and operational financial goals constitute the beliefs and assumptions of the company's management, as well as information currently available. Forward considerations are not performance guarantees. They involve risks, uncertainties, and assumptions, and they are not performance guarantees.
Speaker 1: in such forward-looking statements.
Speaker 1: Today, we have the presence of the company's executives, Pedro Garza, William Matos, Beatriz Co. Co., Carlos Freitas, Beatriz CFO and IRO, and Maria Carollini, investor relations. We will give the floor to Mr. Carlos Freitas. The floor may begin.
Speaker 2: Thank you, Pierre. And good evening, everyone. Thanks for joining us again. It's a real pleasure to be here with you all again for the release of our first quarter 2022 numbers.
Speaker 2: Here with me I have Pedro Garaza and William Matos, our two co-seos. Maria Carina González, the head of our IR department.
Speaker 2: from our IR department.
Speaker 2: His light presentation will be part of today's webcast.
Speaker 2: which is also available in our website at investors.vistro.com.br
Speaker 2: Before we begin, as usual, I'd like to highlight and make note that I have detailed on slide two of the presentation. Safe harbor is ineffective for this call.
Speaker 2: So now I invite you all to go to page 4, which is here on the screen.
Speaker 2: So, here we have some important highlights for this last month, including some news regarding our leadership.
Speaker 2: The first one is that we are launching the transition period for our co-CEO structure.
Speaker 2: in which Pedro Graza in up to six months from now will leave his position as CEO or co-CEO of Vittru and will take a seat at the board of directors and at that time with Amatos who will take over
Speaker 2: the socio-position of the company. As you remember, in August of 2021, when we announced the agreement for the business combination with Unceadomar, we mentioned at that time that Vitru would have these two CEO structures, once we closed the transaction, which took place in May of last year. At that moment, the company started to be led not only by Pedro, but also by William. Pedro was the CEO of Uniceleve, had been since 2016, the CEO of Uniceleve and Vitru, and William was the CEO of Uniceleve.
Speaker 2: at the time the head of the digital education business of Unterdämär, which was created by him and his team back there in 2006. So this co-CEO structure accelerated this integration process which has advanced quite well as you know.
Speaker 2: and already produced some nice numbers, nice synergies and margin gains as you all saw when we announced the results of last year, March of this year.
Speaker 2: With that in mind, we are confident to take one step further and move to the next phase. So we are now starting this position, this traditional position that I just announced.
Speaker 2: we are confident to take one step further and move to the next phase. So we are now starting this position, this transition position that I just announced.
Speaker 2: in a way to ensure continuity, a very smooth transition period, and to maintain the core values and the competitive advantages of both brands. At the end I will ask Pedro and Willem to have some words here with you. Here on a different note, the board approved today a share buyback program for up to 500,000 buyers to be potentially acquired over a period of up to 12 months.
Speaker 2: in the business model of the company and the prospects of the company. It is important to highlight that these 500,000 shares represent today around 6.4% of our folding and at the current share price and the current FX ratio the total amount of the program would amount to roughly 37 million REI's which is around 18% only of the adjusted net income of last year. On the right part of the slide another important highlight we reached 886,000 students as of March of this year an increase of 128% versus what we had one year before.
Speaker 2: and nearly 97% of them in digital education, mostly the digital education undergraduate business, which is our core business, which had as of March 800,000 students.
Speaker 2: which makes us the largest player in Brazil.
Speaker 2: And finally, from a liability measurement perspective, we announced last week.
Speaker 2: separately, we are not going to show only now given that the integration is quite advanced and several areas are already working and serving both brands from a single unit, for example. So here the highlights in terms of net revenue in the digital education undergraduate business, 105% up the quarter, 160% the total revenue growth on a fully consolidated basis, especially because of the mid-teen business of philosophy.
Speaker 2: And the net income, adjusted net income, was up 206% this quarter, reaching 81 million REI in three months. So on page six, a quick reminder of what we promised that we were going to do and what we did. I won't spend much time on this slide, but here it's important just to quickly refresh everybody. We said that we were going to increase the penetration, the ramp up of hubs, the entrance into the southeast, the opening of several hubs.
Speaker 2: and all of that is being delivered according to the plan that we disclosed back there in the IPO. Which includes on page 7 the ramp-up of our hubs. So basically, as you know, we have most of our hubs still ramping up. The old hubs, the bay hubs as you call them, are more or less stable, but all the other...
Speaker 2: Hubs and all the other groups of hubs are advancing quite well, from the 17 cohorts up to the recent cohorts.
Speaker 2: And this is an important growth driver with quite lower risk of education.
Speaker 2: So this translates into page 8.
Speaker 2: in a very strong presence throughout Brazil. So when we compare our overall student base as of March of last year compared to March of this year, we increased, as you can see here, around 100% on average in all areas of Brazil, but in the Southeast, we increased by 340%. This is coming from only ASELEV, only to the MAR. This is clearly our new curriculum history course in the will of a NAIR student. There's a lot of work to be done with this student that goes into a lot ofpaper that specifically becomes effective and helpful for people that are interested in art orFE has a laugh at and experience and is part of a multi compassion community for this student. And then as those that are interested in the yeah,
Speaker 2: growth frontier, our growth avenue, is assaultist. So we have today the second largest region for our single-base perspective is the assaultist. It is the region in which we have most of the biggest chunk of our hubs.
Speaker 2: And why is this important here a quick snapshot on the Southeast of page 9? As you know, 53% of the percentage GDP, 46% of the total enrollment in the market, 42% of the population. So this is where we are growing the most. We grew 210% number of hubs between December 21 and March 23. And 420% in terms of student rates. So an understanding growth in a region in which we were not as present.
Speaker 2: in the recent years as we are throughout Brazil.
Speaker 2: On page 10, theiano Win Win Win Win Win Win Win Win Win
Speaker 2: complementarity of our hubs footprint throughout the country. For UNIA Selvi, for example, as you know, as you probably remember, in the last year, in the third and fourth quarters of last year, we had around 25% of the hubs of UNIA Selvi in the Southeast. Now it's already 30% and around 40% in the case of UNCZMR. So that's why we are growing the most there. And still with a lot of potential to expand.
Speaker 2: a second brand in a lot of cities in which we have only one of our both brands because just as a reminder we
Speaker 2: We have two different profiles of clients of students because we do deliver two types of products.
Speaker 2: It is not the same distance learning product. UNIAsilv has a fully hybrid and only hybrid model with a local tutor, while UNIAsilv has a fully online model, hub-based, but fully online model with the highest standards of quality.
Speaker 2: And finally, before we jump into the financial numbers.
Speaker 2: Another important slide on page 11, the rates that we have, they are still the best in the industry, in similar with 4.8 just as a confirmation as a...
Speaker 2: regarding the quality and technology that we dedicate to our product.
Speaker 2: So now, as I said, on page 12
Speaker 2: We have some important indicators regarding student base for our core business, especially 800,000 students, as I said.
Speaker 2: 9,7% of a total student-based aim, digital education, growing a lot throughout the last years, especially now with the transaction with Siddharth.
Speaker 2: And now in this slide, this is a new slide that we produced just to have a deeper discussion about intake and average tickets.
Speaker 2: This is a news that we produce just to have a deeper discussion about intake and average tickets for each of the brands.
Speaker 2: in the digital location on the wedge segment. So this is the exception to the room that I mentioned before.
Speaker 2: We are still informing the average ticket, the intake, student base, of only ourselves and onto the more in a separate way.
Speaker 2: because of the different dynamics of these two brands.
Speaker 2: So in the case of intake, as we said already in March when we disclosed the numbers of last year, we grew around 18% in total the intake in the first quarter of this year, being around 21%, only a 7%, around 14%,
Speaker 2: the crisis and the fact that this is really the first
Speaker 2: year after the pandemic, I mean, in 2023, 2022, sorry, we still had Omigron. So it's no surprise that the digital education sector increased a lot in 2020, 2021, 2022. And in our case, we grew even further down the market.
Speaker 2: So gained market share in this growing segment So and this intake growth was particularly strong last year Just as a reminder the total intake of only a several last year was 26% compared to 21 and in the case of only Siddhu Mar
Speaker 2: The total intake of last year was 54% higher than the intake of 2021. So even in this very, very high comparable basis, we are still growing a lot, the intake of 18%. And with rising tickets.
Speaker 2: which here on the bottom part of the slide. So in the ketone ourselves, every ticket growing more or less in line with inflation, as we have been doing in the last years.
Speaker 2: So this is mostly due to our price discipline or marketing approach and the tools and procedures that we have here for pricing that we have been applying for now for some years and discussing with you and showing to you since the IPO in 2020.
Speaker 2: In the case of Unicezumar, ticket was up 2.4%, so we are seeing here in this first quarter the first signs of the new pricing approach that started to be implemented in the current cycle. As you remember,
Speaker 2: the average tickets of the digital education undergraduate business.
Speaker 2: of the digital education undergraduate business of Saint-Domingue, decreased.
Speaker 2: throughout last year and the most important reason for that was this higher weight of new students, of freshmen in the overall student days. Add to lower peak
Speaker 2: which contributed to the increase of intake of 54% last year. It was a very, very strong growth but at lower tickets.
Speaker 2: So this is a clear example of the signatures that we prompted to you from a commercial perspective arising from this exchange
Speaker 2: of best practice between the two components.
Speaker 2: between the two components. In the case of the mark going forward.
Speaker 2: further going forward for two reasons. First.
Speaker 2: because
Speaker 2: because the average intake tickets
Speaker 2: of the tomorrow is growing slightly in line with inflation as well or even similar Dr. multi-programme one today probably the same but also a short
Speaker 2: of what the state of last year. And because today we have not important facts, which is the caring facts of this huge amount of new students that started with us last year at Lower Tickets. And now they are carried, 2023, at Lower Tickets.
Speaker 2: So this is also an important effect. So going forward as this effect is diluted and as we have as well time passing by we shall have over time a more similar pattern of tickles between the two brands.
Speaker 2: On page 14, the main financial numbers, net revenue again 150%, gross profit also increasing a lot and especially a BDA with 255% growth as I said before.
Speaker 2: So, deep dive about net revenue. We have
Speaker 2: composition of net revenue here on the left part of the slide with the most important impact.
Speaker 2: being the digital education undergraduate segment.
Speaker 2: but also as I said the on campus business of Céline Maître, special medicine. And here on the right we can see clearly in the breakdown, especially on the right part of the slide, the right pizza.
Speaker 2: that we have 7% of our business coming from digital education segments being undergraduate or continuing education which is basically our graduate business, a digital graduate business which will present in total 77% of revenues.
Speaker 2: plus 13% of medical education.
Speaker 2: plus 13% of medical education.
Speaker 2: I'd say most segments with the best prospects in Brazil....chanelly, digital location and night scene.
Speaker 2: So today we have 90% of our revenues in these two segments. Sorry. So now on page 17
Speaker 2: Just as a refresh.
Speaker 2: We have the medical business of UNICEF D'Omar as the fifth best medical school in Brazil, very high quality institution, but with high scale, the Maringa campus being the largest medical campus in the south of Brazil, which brings higher margins, so net revenue of our medical business.
Speaker 2: reached 67 million reais this quarter.
Speaker 2: Ticks today are at around 11,000 REIs per month.
Speaker 2: increasing above inflation.
Speaker 2: and the seats are still maturing. So we expect promising results from our medical business this year.
Speaker 2: On page 18, the on-campus Business X Medical.
Speaker 2: a very important growth here basically coming from the contribution of UN to the mark to our consolidated numbers.
Speaker 2: given the resilience and the high quality of the health-related on-campus courses of the summer.
Speaker 2: By the way, just as a reminder, the health-related courses which are more resilient than the others, the health course of CEDAMAR, other than medicine, represents today more than half, around 60% of the on-campus revenues of CEDAMAR.
Speaker 2: And by the way, on that front, I'd like to highlight as well that in the current intake cycle...
Speaker 2: We are seeing an increase in intake of slightly more than 20% in the on-campus business of CitiMoto.
Speaker 2: with higher tickets. On the right part of the slide, the continued location segment, here is a very important segment from a complementary offering perspective.
Speaker 2: So this is probably our next wave of M&A and further growth going forward. It's no surprise that we intend to grow with other complementary products such as technical courses, courses in preparation for the first job etc.
Speaker 2: and of course more in the graduate segment. So this is a segment that has a lot of potential going forward in this lifelong journey approach.
Speaker 2: On page 19, the composition of BDA, you're going to go through this next slide. For page 20.
Speaker 2: The cost of service.
Speaker 2: service.
Speaker 3: going down.
Speaker 2: which is a confirmation of our lean structure approach and the advancements in the integration. So the G&A in the first quarter of this year was only 6.6% of our net revenue.
Speaker 2: Following slide, page 21, 10 expenses, an important decrease of 9.7 points,
Speaker 2: Point slide, page 21, 10 expenses, an important decrease of 9.7 points year-on-year.
Speaker 2: for two reasons.
Speaker 2: First one was of course this lower intake increase because most of the selling expenses
Speaker 2: is aimed at attracting new students, but also, and even more importantly, the contribution of CEDAMAR. CEDAMAR approach to intake is much more lean, much more supported by the hub partners.
Speaker 2: than in the case of only a selfie. So the whole partners they have a slightly higher share in the tuition.
Speaker 2: So the revenue share with them is slightly higher than the kid on your selfie and as a consequence they are in charge of a higher stake in the cost and expenses to attract new students.
Speaker 2: An important reduction here in expenses going forward. And for PDA on the right part, also an important reduction going down from 14.5% to around 10.7%.
Speaker 2: lower than what we had in the fourth quarter of last year, more or less in line with what we had in the third quarter of last year, already with Tumor, which...
Speaker 2: I think it's quite an important achievement as well, this quarter. And of course, the most important contribution here was to the market, not only because of the intrinsic low-rpd levels, for example, with medicine, but also because of superior retention and onboarding practice.
Speaker 2: at CEDEMOR that are now starting to be implemented at UNIASCEL and that will be an important source of synergies in the medium term. To finish on page 22, a just net income and cash flow from operations.
Speaker 2: 80% cash conversion and also this important highlight that this cash flow from operations is before CapEx. Our CapEx is also going down. Our CapEx in this quarter amounted to only 4.5% of net revenue.
Speaker 2: down from 5.7 in the first quarter of last year.
Speaker 2: That was it for now, so now I'd like to open for questions.
Speaker 1: begin the Q&A session. Remember that to ask questions, you must click on the Q&A icon at the bottom of the screen to join the queue. If you prefer to write your question, please follow the same steps and you will be joining the queue as well.
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Speaker 1: Let's now go to the first question.
Speaker 1: First question today comes from Luca Marchesini, a sales side analyst.
Speaker 1: I-B-B-A.
Speaker 1: We will open your audio so you can ask your question. Please proceed.
Speaker 4: Good evening everyone and thank you for taking our question. So this was the first time that we saw an increase in the average ticket for Unisys amount after a few quarters of a decrease as the company has mentioned that you were implementing a new strategy of price in the company.
Speaker 4: So, now that we've seen an increase in the number, does this mean that the implementation is over or should we continue to see initiatives to improve one of Cesar Mál's tickets? Thank you.
Speaker 2: cycles that we are implementing this new approach, this new pricing procedures for UNSIDAMAR, which means a more granular approach, which means a discussion about which...
Speaker 2: correct price in each correct CD for example.
Speaker 2: Starting, we are seeing here the first numbers, going forward, we have some more ideas to be implemented that do take more time. But here I think the importance of that we can already see the first signals, the first signs of change. We always said that...
Speaker 2: we would try to take the best of each company, preserving what must be separated and using the best practice of what could be...
Speaker 2: use as cross information, cross knowledge, and etc.
Speaker 2: So this is already Having some
Speaker 2: some effect now in our every tickets. I'm very happy to see this taking place. And especially knowing, as I said, that a lot of new students were enrolled last year at lower tickets. So, and they carry the effect to the first quarter of this year. If it were not for that.
Speaker 2: the tickets of Saitama would be increasing, probably roughly in line with the one of Unistelgia.
Speaker 4: That's very clear Carlos. Thank you very much. Thank you.
Speaker 1: The next question comes from Mirela Olivares, Healthside Analyst, Bank of America. We will open your audio so that you can ask your question. So please proceed. Hi, Carlos. Good evening, everyone. Thank you for the opportunity to ask questions. There will be two of my speakers.
Speaker 5: date on the hubs expansion. Have you seen any change on the profile of the students on these new hubs and how is it going? Thank you.
Speaker 5: Have you seen any change on the profile of the students on these news hubs and how is it going? Thank you. Thank you, Briella.
Regarding PDA, PDA for this year
as we said in March, what we expect is that PDA for the year shall more or less have the same effect.
number of what we had last year. So which was around 13-14% of net revenue. So 10.7% is lower than 10.7% of net revenue.
than what we expect for the full year. I will not assume 10.7% for the full year. I think it's too ambitious. But it can be. It can be depending on the evolution of macro. But seeing what we see today with the current macro environment.
I don't think so. So we stick to what we said in March that the PDA of this year shall be similar, maybe slightly better, but more or less similar to what we had last year at the HOPE. So around 13-14% of net revenue. For the HOPE expansion and the profile of students.
I mean, there's no...
single answer to that because it's very diverse.
We have, for example, regions or cities in which we were not present and which are smaller cities with
let it scale for example but also we have in the in some power for them a lot of new hubs
that we are opening, mostly with the brand of UNYASEL in this case, which are quite large cities with quite an important scale and when you see the profile of students, it's also...
in some areas would have to be more aggressive, because that's the local reality. In some areas we can be less aggressive in price. So.
There is no real change in function of the expansion. There are some changes as a whole, some trends as a whole in the sector. For example, we see a slightly but continuous decrease in the average age of our students.
In the past, distance learning was for people with more than 30 years, 35, 40 years. Now we have a lot of people coming from 25 years or less. Today, in fact, in oxygen base, we have around 40% already.
people with 25 years or less which is remarkable because that was not the reality of distance learning five years ago. Another important trend throughout the country and throughout the hubs the increase in health related courses. Those are courses that are newer.
not only from us but from the market. And all these courses are hybrid with one, in some cases two, meetings per week. And they are newer, so this is also an important support going forward for every ticket. And increases the market to be addressed.
But quite frankly, when you see the profile of the new hubs or special hubs versus the old ones, there's not a big change.
Perfect. Thank you, Carlos. Thank you, Mirela. The next question now comes from Pedro Caravina, Sales Site Analyst, Credit Suisse. We will open your audio so that you can ask your question. Please proceed.
suggesting nominally in line or is likely below inflation. Can you clarify to us please where this growth is coming from? Is it the market share gain? Is it the market is expanding? The reason I'm asking is because macroeconomics does not seem to be well in other sectors. So what helps to explain the higher intake levels?
this question. So, firstly regarding the market and intake and ticket prices.
the market and intake and ticket prices.
There are a number of things to comment here. First, is that not only now but starting...
mid of last year, more or less, what we saw and we are seeing now is a more rational market with a more normal competition level, which is good for everybody. So, they did this not only now but starting in the last.
in second semester of last year. The market is increasing because the new students, the ones that are now deciding which course to take, they are preferring to take a digital education course.
That's the beauty of V2, that we are focused on the...
segment that is growing, which is digital education. And digital education was growing in the past, grew a lot, a lot during the pandemic. Now it is still growing, less than any pandemic, but it's still growing and will keep growing for a lot of years because that's the trend. More and more people are taking as.
BaysCade as their first choice, a digital education course. Today, as you saw, as you know, sorry, around two-thirds of the newcomers in the last census, two-thirds of people enrolling in new courses chose digital education courses. And this is with all the student-based potential.
If we take out the courses that are not allowed in these education such as law, for example, such as medicine, around 80% of the new students chose the different learning in the sense of 2021.
So this is a business that is growing because there's a lot of interest. It also increased penetration throughout the country. So more and more people choose distant learning. We increase the market to be tapped, the addressable market.
a business that is growing because there's a lot of interest. It also increased penetration throughout the country. So more and more people choose distant learning. We increase the market to be tapped, the addressable market. So. It can't be low.
It is true that we are in a scenario with a tough macroeconomic environment, that's true, but it seems that in the case of education,
we are, I guess, already slightly ahead of the curve versus other sectors of the economy.
Regarding the dropout rates that you mentioned,
As we saw already in the third quarter of last year, the drop-up rates of the mark were slightly higher than what they were one year before because of, as you said correctly, the huge increase of intake.
So it is always at the case when you grow a lot they intake Usually there is a Declined in intake it usually there is a increase in PDA and usually in the following semester you have an increase in dropout because most of the dropout
is concentrated around newcomers from the first or second semester. So the retention rates of only a cell view are more or less the same, slightly lower this year because of the macro scenario. The retention rates are lower in the case of CEDAMAR.
because of this huge, huge increase of 54% in intake last year compared to 2021. But this is part of the game, that's part of the package. What's important is that we have a growing and resilient student base over time.
and a residence and health tickets. It thinks Carlos is very clear. Just to follow up, so when you look at the normalized rate, like the percentage of students that are evading compared to what.
or the intake levels, should we expect a worsening this number or is it in line with historical figures?
I guess that what we have today in the fourth quarter...
I guess that what we have today in the fourth quarter was affected.
improvements in the retention rates, especially with the best practice between UNEA Sales and CEDAMOR, this onboarding practice that I mentioned that we started now to be implemented in UNEA Sales. Okay, very clear. Thank you. Thank you. The next question is from Lucas Nagano, Southside Analyst for Morgan Stanley . We will open your auto so that you can ask your question. Please proceed. Hey, good evening. Thanks for taking our questions. We have two questions. The first one is on the DAT issues.
average maturity of our debt.
So we have the fourth adventure that we issued last year.
So basically the venture is to extend the maturity of that. We have not yet decided whether to prepare or not before the ventures. We may prepare, this will not yet be done. So we will take a decision in the next month. But anyway, the use of proceeds from the second venture is indeed to
to pay and to extend the material, so it's a liability management transaction to exchange a one-year debt to a five-year debt.
At a lower cost, by the way. Sorry, the second question about the commercial synergies. We have... there are three pillars.
we have already some numbers to show. Second
is the increase in the portfolio of courses of both brands. We launched already last year some new courses at UNI-Acelvia or at UNI-Cedomarc, taking profit of the material that we had and that had to be adept. It was much faster to launch this type of courses.
pillar is also quite implemented. There are of course
some more quarter that will be launched but this is also advancing well. The third pillar is
I'm gonna put here on the screen the third pillar is the Sector expansion throughout Brazil
with a partner of the other brand etc. We won't see this year many numbers about it basically because the net revenue of a hub that was just open is small. So in the first year we have a lower or limited number of students.
We have only freshmen with lower tickets. We have a high capacity, high rebate, high share of revenue in the case of near-service higher in the four years. So these all contributes to quite low net revenue once you open your hub. So this
Synergy pillar is more for the medium and long term. This year what we will see for commercial synergies is the first two pillars. The new commercial approach of UNS-S-1 and the larger portfolio of quarters in the two brands.
That's very, very helpful Carlos, thanks. Thank you, Lucas.
Move on to the next question. We'll come from Mashozaka, to Mashozaka, to the next question.
We will open your audio so that you can ask your question. Please proceed. Hi, good morning. I have three quick questions. The first one, what was the price increase for new students only at Onices Omar and Unicef Selvi?
So only for freshmen. The second question is why the dropout rates at UNICEF Zummar increased more than at UNICEF Selvi. And it wasn't very clear because the intake growth at Zummar was over.
So the share of new students at the CZU was lower than at UNICEF and still dropout increase was higher than UNICEF.
And the last question related to drop out, how do you see the return of these students that left? Do these students return in the future? Do you know how much of them they returned? I don't know, in one or two years, I don't know. Any comment on this, please.
increasing
more or less in line with inflation, even more, slightly more than that. What we're seeing is an increase, a real increase in real terms of the average intake ticket for UNCIFOMOR, which is a very positive signal, as I said before, of the trend for the future.
So the overall ticket was, let me put here on the screen, 2.4% increase.
That's the average ticket for all the student base. The average ticket for the new students is more than that. It's more or less in line with inflation, such more inflation this year. Indicator of unia selvi is slightly lower because of the higher comparison basis.
but it's more or less similar to the one of UNI Sezoumar, slightly lower. So going forward, that's why I said that we have very important prospects for the tickets of UNI Sezoumar as we dilute the defects of the students of last year.
The second question about the dropout effect of Oni Sadomara. The dropout effect...
is felt after you have to renew the enrollment.
So that's why the fact that last year, 2022, Unsizumma grew a lot the intake. So it was a growth of 54% increase throughout last year compared to the intake of 2021.
So, and the fact that we see is now once they renew their enrollment in the beginning of the year, there is a higher dropout rate of UNCTAD because of that. As of December of last year, we had a higher weight of UNCTAD.
of freshmen in our student base. So it's not because of the intake of this current cycle, 2023, it's because of the higher growth of the intake cycle last year. That's why, and it was, by the way, it was already the case in the third quarter of last year. If you see our support in spreadsheets.
you can see that there was an increase in the dropout of CEDOMAR in the third quarter of last year compared to the third quarter of 2021 because again of the very high intake in the first semester of last year. That's normal, that's part of the business. What's more important is that we are growing a lot net revenue tickets and student base.
back the students in which
We have special prices, special conditions, and when they decide to come back, it is not a very sizable percentage of our overall student base, but it represents an important contribution when you see the dropout rate.
We do not account these win-back students as intake. They are counted as a reduction in the dropout because they dropped out, now they return.
So, but it depends from time to time. Today it can give you a number, it shall be around 8 to 10% of our intake would be in back. They are not accounted as intake.
They are contested as a reduction in Dropot. Thank you Carlos. Thank you Martin.
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That.
and Willem is here to speak. Willem is the CEO of Unicef, and he is the CEO of Vutr. In 2016, he was the CEO of Willem. Now, he is the CEO of Willem. Thank you, Pedro and Willem.
Thank you, Carlos. It has been a great event, a special moment and it has been very supportive of me.
I will start here and thank you all for participating, and for participating in this construction and the evolution of the city. This is the last time, I thank you very much.
have been a privilege to participate in the construction of the institution along with the seventh year, how many conquests, how many brands, how many members, how many commemorations. We had a really spectacular evolution along with the decision, José Carlos. It was a success.
very proud, very proud of our proposal, as a dedication and a different training, as a team that I have a huge pride to do, and I can only thank you.
of their perceptions, experiences and hazyosed opinions.
and to have experience of these two institutions that are pioneers, not just in the digital world, but with the quality of the differences and the integration of these two markets, not just in a formal way, not just in culture, but in the field of society and really the world.
and this year we are working from the top to create this integration, to create this science.
Now, we're entering a new stage. We start the transition process, which will take about six months and then I'll do part of the conselho and of course continue. Now, in a different format, supporting and accompanying the life. So, I can only do all the success to him.
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and that today, more than a colleague, a friend to life. Pedro, Carlos and all of you who are participating today in this call, are very...
We are also planning for the local streets of Pébro, and we are today to present a report on the transition of cars from Pébro to Pébro to Pébro to Pébro.
within our company. Transition is that it is supported by our business combination.
and if doesn't include a bus THIS SINelt, as in the terms of our energy and performance and we would love to l s t h i t c t r e a n d w z h a u n 1
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but it is a movement that will be used by the council, where the council will have a fundamental purpose to build our story.
The transition between reality in this way and the number of organizations, is correct as found in education. It is a difference in itself. Yaqui oqueru.
Let it be clear, the promise during transition and the support of the continuity we will continue with our company. Always very attentive and concerned with all our take-roads involved, our investors, our specialists, our students.
our partners and our collaborators. We will now begin the proposal that we have here. I would like to present to you the necessary steps with a consistent and responsible trade to ensure that we have the right trade as a whole.
?uriousness is a Garrett's ascent to gentility, decrescibility and frankly sustainability. So, until America Reoses her control and the slated For the rest of the fiscal year, we have it in progress. Once again, we want to continue our Geoff Coats. Let's continue our row, the nine semesters, be a little harder because of that.
the segment of the digital case. I want to thank the entire series that was constructed by a great friend and friend, Pedro Gras. Thank you, but in different positions, the final of the transition.
to help us build a better future for our students and Brazilians. Vito, brigado.
Well, just to come back to English, with that we close our presentation. Thank you all for your trust, thank you all for the questions and in case of any further doubt, we are available here as virtual. Thank you and good night.
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