Q1 2025 Vasta Platform Ltd Earnings Call
Yeah.
Speaker Change: Ladies and gentlemen, this is the operator today's conference is scheduled to begin momentarily until that time your lines will remain on music hold thank you for your patience.
Operator: Ladies and gentlemen, this is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines will remain on music hold. Thank you for your patience. Thank you for standing by.
Speaker Change: [music].
Kathleen: My name is Kathleen and I will be your conference operator today.
Kathleen: Thank you for standing by. My name is Kathleen and I will be your conference operator today.
Kathleen: At this time, I would like to welcome everyone to the Vasta Platform first quarter 2025 financial results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. And if you would like to withdraw your question, press the star 1 again.
Kathleen: At this time, I would like to welcome everyone to the Vasta Platform, first quarter to the 2025 financial results.
Kathleen: All lines have been placed on mute to prevent any background noise.
Kathleen: After the speakers' remarks, there will be a question and answer session.
Kathleen: If you would like to ask a question during this time, simply press Star Followed by the number one on your telephone keypad, and if you would like to enjoy a question, press the Star
Kathleen: Before we begin, I would like to read a forward-looking statement. During today's presentation, our executives will make forward-looking statements. Forward-looking statements generally relate to future events or future financial or operating performance and involve known and unknown risks. uncertainties, and other factors that may cause our actual results to differ materially from those contemplated by this forward-looking statement. Forward-looking statements in this presentation include, but are not limited to, statements related to our business and financial performance. Expectations for Future Periods Our expectations regarding our strategic product initiatives and their related benefits, and our expectations regarding the market. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management.
During today's presentation, our executives will make forward-looking statements.
Kathleen: uncertainties and other factors that may cause our actual results to differ materially from those contemplated by these forward-looking statements.
Kathleen: Forward-looking statements in this presentation include, but are not limited to statements related to our business and financial performance.
Kathleen: Forward-looking statements are based on our management beliefs and assumptions and on information currently available to our management.
Kathleen: These risks include those set forth in the press release and we are issuing today, as well as those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as of today. You should not rely on them. as predictions of the future events. and we disclaim any obligation to update any forward-looking statements except as required by law.
Kathleen: These risks include those set forth in the press release and we are issuing today as well as those more fully described in our filings with the Securities and Exchange Commission.
Kathleen: The forward-looking statements and this presentation are based on the information available to us as of today.
You should not rely on them.
Kathleen: In addition, management may reference a non-recurring non-IFRS financial measures on this call. The non-IFRS financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with IFRS.
In addition, management may reference a non-recogniz- [inaudible]
Kathleen: The non-IFRS financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with IFRS.
Kathleen: Thank you.
Kathleen: And now I would like to turn the call over to Cesar Silva, CFO. Please go ahead.
Speaker Change: Thank you. And now I would like to turn the call over to Sever Silva, CFO . Please go ahead.
César Silva: Good evening everyone and thank you for joining us in this conference call to discuss Vasta Platform's first quarter of 2025 results. I'm Cesar Silva, Vasta CFO, and today we have the presence of Guilherme Melega, Vasta CEO, who will be joining me on the call.
César Silva: Good evening everyone and thank you for joining us in this conference call to discuss Vasta Platform's first quarter of 2022 and five results.
Speaker Change: and Cesar Silva, Vasta CFO , and today we have the presence of Guilherme Melega, Vasta C.U., who will be joining me on the call. Let me now hand over the floor to Guilherme Melega, I will seal to making his opening statements.
Guilherme Melega: Let me now hand over the floor to Guilherme Melega, our CEO, to make his opening statement. Thank you, Cesar. Thank you all for participating in our earnings release call.
Speaker Change: Thank you, Sarah. Thank you all for participating in our earnings release call. I'd like to cover this slide number three with some highlights of our 2025 sales cycle.
Guilherme Melega: I'd like to cover slide number three with some highlights of our 2025 sales. I'm pleased to share our progress and achievements made so far. This first quarter also represents halfway through the 2025 commercial cycle. which runs from October 2024 to September 2025. In this quarter, we have continued delivering strong economic and financial results, with a particular highlight in our free cash. In the 2035 cycle today, our net revenue increased by 11%. to reach 1,129,000,000. This growth was primarily driven by the successful conversion of our annual contract value, ACV. into revenue and achieved $1,019,000,000, a 17% increase compared to 2024 cycle to date.
Speaker Change: In the 2005 cycle today, our net revenue increased by 11%.
to reach 1,129,000,000.
Speaker Change: This growth was primarily driven by the successful conversion of our annual contract that PCV.
Speaker Change: into revenue and achieved 1 billion and 19 million, a 17% increase compared to 2024 cycle
Guilherme Melega: Complementary solutions continue to present the highest growth rate among our business segments, with a 24% expansion in the cycle to date compared to the same period last year.
Speaker Change: Complimentary solutions continue to present the highest growth rate among our business segments, with a 24% expansion in the cycle to date compared to the same period last year.
Guilherme Melega: Moving to the company's profitability, our focus on operational efficiency and cost-saving continued to bring results. Adjusted EBTDA for the 2025 cycle to date was R$420 million, with a margin of 37.2%. has been an increase of 5% from R$402 million performed in the last year. These gains were driven by a favorable sales mix benefiting from the growth of our subscription product. Finally, our cash flow generation was the main highlight of the quarter, totaling R$144 million in the 2025 sales cycle, which represents 176% higher than the same period in 2020. The last 12 months free cash flow to adjusted EBITDA conversion rate improved from 42.5% to 50.8%.
Speaker Change: Moving to the company's profitability, our focus on operational efficiency and cost saving continued to bring results, adjusted EBTDA for the 2025 cycle today was 420 million with a margin of 37.2%
Speaker Change: It has been an increase of 5% from 402 million pre-eyes performing in the last cycle.
Speaker Change: These gains were driven by a favorable saiyus mix benefitting from the growth of our sub-escription
Speaker Change: Finally, our cash flow generation was the main highlight of the quarter.
Speaker Change: Totally 144 million reais in the 2025 sales cycle, which represents 176% higher than the same period in 2024.
Speaker Change: The last 12 months free cash flow to adjusted ABTDA conversion rate, it proved from 42.5% to 50.8%.
Guilherme Melega: reflecting our sustained efficiency measures.
Guilherme Melega: These measures include improvements in the collection process, such as process automation, reminders and past due notifications, customer segmentation, and faster renegotiation of delayed receivables. Additionally, we implemented several initiatives to achieve better discipline on the payment side, including vigorous financial planning, centralization of payments on a single monthly date, and negotiating longer payment terms with suppliers.
Reflecting our sustainable efficiency measures.
Speaker Change: These measures include improvements in the collection process, such as process automation.
Speaker Change: Reminders and pass-dunotifications, customer segmentation, and faster renegotiation in the land of the land receivables.
Speaker Change: Additionally, we implemented several initiatives to achieve better discipline on the payment side, including vigorous financial planning, centralization of payments on a single monthly day, and negotiating longer payment terms with suppliers.
Guilherme Melega: In addition to the financial highlights, I would like to emphasize our continuous development of our technological platform, Rural, which enables us to provide better service to our customers. Starting in 2026, our schools will use Plural.AI with many new tools, focusing on the concepts of inclusion, diversity, and equity in continuous education. Plural.AI advances towards creating a welcoming educational environment for our students with the creation of an individualized education plan. The AI generates personalized pedagogical recommendations and assists teachers and schools in inclusive practice. providing an innovative solution to help educators transform challenges into opportunities for the world.
Speaker Change: In addition to the financial highlights, I would like to emphasize our continuous development of our technological platform, Rurao, which enables us to provide better service to our customers.
Speaker Change: Starting in 2026, our schools will use Purao AI with many new tools.
Speaker Change: Focusing on the concepts of inclusion, diversity and equity in continuous education, rural AI advances towards creating a welcoming, educational environment for our students with the creation of an individualized education plan.
Speaker Change: Providing an innovative solution to help educators transform challenges into opportunities for
César Silva: I will now turn back to Cesar Silva to talk about the financial results of the quarter and the sales cycle today. Thank you, Melega.
Speaker Change: So now, turn back to Cesar Silva to talk about the financial results of the quarter and the sales cycle to date.
César Silva: In this slide, number four, we present the composition of Vastra Naturae. On the left side, you can observe the organic year-to-year growth in the total net arrival for the first quarter, which decreased by 6.6%, which... 430 million reais. Vasta Subscription Revenue achieved in the first quarter of 2025 $400 million, a 12% increase compared to the same quarter of 2024. non-subscription decreased by 27% to 25 million as expected. And in the government segment, in this quarter, we generated 5 million revenues, coming from 5 new companies. compared to $69 million in the first quarter of 2034, when the totality of PARA contracts, first and second semester, was booked all at once.
Speaker Change: Thank you, Melega. In this slide, number four, we present the composition of Vasta's
Speaker Change: Vasta sub-scription or wherever you'll achieve it in the first quarter of 2025, 400 million, at 12% inquiries compared to the same quarter of 2024.
Speaker Change: and in the Guilherme segments in this quarter we generated 5 million revenues coming from 5 million contracts.
Speaker Change: Compared to 69 million in first quarter of 2004, when the total reach of para contract first and second semester was booked all at once.
César Silva: In the 2025 cycle, the first semester of Paracontract was booked in the fourth quarter of 2024, and the second semester is expected to be performed throughout the year. Moving to the right side, we analyze the net revenue for the 2025 sales site to the left. We achieved an organic net revenue growth of 11.3% in the 2025 sales cycle date, amounting to R$1,129,000,000. The main factors for this performance were firstly, the subscription revenue has increased at 17%. reaching $1,019,000,000 and continues to be the major contributor to our total revenue, representing 90% of the revenue share. Non-subscription revenue dropped 6% to R$69 million.
Speaker Change: In 2025 cycle, the first semester of product contracts was booked in the fourth quarter of 2024 and second semester is expected to be performed throughout the year.
Speaker Change: Moving to the right side, we analyzed the natural area for the 2025 CEO site today.
César Silva: and the net revenue of B2G, which is $41 million, a decrease of 40% comparing to the 2024 sales cycle.
Speaker Change: and the natural revenue of B2G reaches 41,000,000, a decrease of 40% comparing to 2024 sales cycle.
César Silva: Moving to slide number five. In this quarter, our adjusted bid amounted to R$121 million, with a margin of 28.2%, a decrease of 25% from R$162 million in the first quarter of 2024, mainly due to a lower revenue volume in this quarter and a different product. On the right side, we see that adjusted BTA in the 2025 sales cycle increased by 5%, to reach $420 million, with a margin of 37.2%.
In this quarter, our adjusted bidet amounted to 121 million.
Speaker Change: with a margin of 28.2%. A decrease of 25% from 162 million in the first quarter of 2024. Mainly due to a lower revenue volume in this quarter and a different product mix.
Speaker Change: On the right side, we see that adjusted BTA in 2025 sales cycle included by 5% to reach 420 million, with a margin of 37.2%.
César Silva: Let's now move on to the next slide and explain the breakdown of the adjusted VTA margin. In this slide, in number 6, we can observe that the adjusted EBITDA margin achieved 37.2% in the 2025 sales size. three points to percentage points lower than the same period of 2024. Firstly, our gross margin achieved 63.7 percent, a decrease of 3.2 percentage points. 66.9% in 2024 sales cycle due to a low arrival in the sales cycle and a different product mix. Provisions for Accounts PDA achieved 3% in relation to the net revenue and have an improvement of 1.2 percentage points when compared to 2024.
Speaker Change: Let's now move on to the next slide and explain the breakdown of the adjusted VTA margins.
Speaker Change: In this widening number 6, we can observe that the adjusted at the margin achieved 30.3, 35.2% in the 2025 sales cycle.
Speaker Change: from 66.9% in 2024 sales cycle, due to a lower revenue in the sales cycle and a different
César Silva: Despite showing improvement in this indicator, the year has been performing a very challenging and restrictive credit landscape for non-preliminary business, and we still foresee some challenges in the credit scenario for the next year. As a percentage of net revenue, our commercial expenses increased by 1.2 percentage points, driven by higher expenses related to business expansion of the commercial cycle of 2025. And finally, adjusted G&A expenses improved by 0.8 percentage points, mainly driven by workforce optimization and budgetary discipline measures.
Speaker Change: Quite showing improvements in this indicator, Seir has been performing a very challenging and extra creative credit to landscape for non-programme-brands business. And we still are seeing some challenges in the question now for the next month.
Speaker Change: And finally, adjusted DNA expenses improved by 0.8% of points, mainly driven by workforce optimization, budgetized, disciplined measures.
César Silva: Moving to slide number 7, which shows the Adjusted Net Cost. In this first quarter of 2025, adjusted net profit total $26 million, a 49% increase compared to adjusted net profit of $50 million in the same quarter of 2025. On the right side of the slide, in 2025 sales cycle, adjusted net profit reached $140 million. That has been a decrease of 4.4% from adjusted net profit of R$146 million in 2024, as a result of the topics commented before.
Speaker Change: Moving to the right number serving, we showed the adjacent networks.
Speaker Change: In this first quarter of 2025, I just had a net profit total of 26 million. A 49% increase, compared to a just net profit of 50 million in the same quarter of 2024.
Speaker Change: Yes, that has been a decrease of 4.4% from yesterday's net profit of 146 million in 2024, as a result of the topics commented before.
César Silva: Moving to slide number 8, we show the free cash flow evolution. We continue to observe the growth of the company's cash flow generation. In the first quarter of 2025, the free cash flow totaled $74 million, representing a relevant increase comparing to $52 million in the same period of 2024. on the right side of this slide, in the toilet. to a 2025 sales cycle, our free cash flow reached $144 million, an increase of 176% from 2004. This quarter and the first semester of 2025 will benefit from early collections regarding the 2025 sales cycle, which will be normalized throughout the year, together with consistent efficient measures implemented in the collection process and the payment balance, outlined by Guilherme Melega, Lucca Marquezini, Lucas Nagano, Marcelo Santos, Mirela Oliveira, Cesar On another metric, our last 12-month free cash flow to adjusted BTA conversion rate increased from 42.5% in 2024 sales cycle to 50.8% in 2025.
Speaker Change: Moving to slide number 8, we show the free cash flow evolution.
Speaker Change: We continue to observe the growth of the company's cash flow generation. In the first quarter of 2025, the free cash flow totalled 74 million, represented a relevant increase comparing to 52 million in the same period of 2024.
Speaker Change: The 2025 sales cycle, our free cash flow reached $144 million, an increase of $176% from $24.
Speaker Change: This quarter and the first semester of 2025 will benefit from early collections regarding 2025 sales cycle, which will be normalised throughout the year together with consistent efficient measures in plummeting the collection process in the payments balance.
Outwe're at the stage by Guilherme, he's in the show hallmark
Speaker Change: On another metric, our last 12 months free cash flow to adjusted VTA conversion rate.
increases it from 42.5%
Speaker Change: in 2024, CEO Cycle, to 50.8% in 2025. Despite having an expressive results in the success of today, we expect to keep this commercial rating the following quarters.
César Silva: Despite having inexpressive results in this sales cycle to date, we expect to keep this conversion rate in the following quarter.
César Silva: Moving to slide number 9, we show the provision for doubtful accounts. Total expense with PGA in the first quarter of 2025, total $12 million, represented 2.9% of net revenue, the same level as comparable quarter. Moving to the right side of the slide, the PDA for 2025 sales cycle amounted to R$34 million compared to the R$42 million in 2024. Provision for adult accounts represent 3% of net revenue in 2025 sales cycle, an improvement of 1.3 percentage points in comparison to As explained before, we still foresee some difficulties in the current scenario, mainly for the school related to mainstream brands.
Speaker Change: Moving to slide in our room, nine, we show the provision for doubt for accounts.
Speaker Change: Total expense with PGA in the first quarter of 2025, total 12 million for representing 2.9% of natural revenue, the same level as comparable quarters.
Speaker Change: Moving to the right side of the slide, the PGA for 2025 sales cycle amounted to 34 million, compared to the 42 million reais in 2024.
Speaker Change: 2024, as the claims before, which you foresee some difficulties in the courts and how many for the school related to mainstream claims.
César Silva: Moving to the next slide, we observe that the average payment terms of Vasta's account receivables portfolio was 188 days in the first quarter of 2025, which is eight days higher than the comparable quarter and in line with the business model seasonality.
César Silva: Moving to slide number 11, let's take a closer look at the Net Debt Movement. In the first quarter of 2025, Vasta had a net debt position of $963 million. 40 million decrease from the previous quarter. These achievements due to the positive cash flow generated during the period in the amount of 74 million, which surpassed the impact of interest accrual of 34 million. Moving to the right side of the slide, the net debt position decreased by $7.7 million since last year. This decrease was driven also by the free cash flow generated in the 2025 sales cycle, which was partially offset by financial interest costs.
Speaker Change: 40 million de cuis from the previous quarter. Disattievous minutes due to the positive cash flow generates to do it during the period in the amount of 74 million, which surpasses the impacts of interest to a cruel of 34 million.
Speaker Change: Moving to the right side of the light, the net depth position decreased by 77 million since last year. This decrease was living also by the free cash flow generated in 2025 sales cycle, which was partially offset by financial interest costs.
César Silva: I will conclude my part of this presentation with slide 12, explaining some more detail about our not-debt composition, which represents R$9.63 million at the end of the quarter. This amount is composed of R$7.3 billion. one million reais on the ventures issued to the parent company, in addition to 149 million reais on account pay for business combination. offset by $257 million in cash and cash equivalents that the company owns. In the lower left of this slide, we can see that in the first quarter of 2025, the net debt to last 12 months, such as the BTI ratio, has increased 0.09 times from the last quarter.
Speaker Change: 1771 million reais on the Ventures T-Shirt to the Department of Company in addition to 409 million reais on a grant per for business combinations.
mainly related to afterlife acquisition.
Speaker Change: In the lower left of the slide, we can see that in the first quarter of 2025, the net debt to last 12 months, such as the BT ratio, has increased 0.09 times.
César Silva: This slight increase was expected, and when compared to the fourth quarter of 2022 or the first quarter of 2024, the indicator shows a relevant downwards and now it stands at 2.06 times.
Speaker Change: from the last quarter. This is light and quiz was expected, and when compared to the fourth quarter of 2022 or the first quarter of 2020, the first shows are relevant, then works, and now it stands at 2.06 times.
César Silva: We would like to reinforce our commitment to continuing to generate free cash flow and deliver it to the company.
Speaker Change: We would like to reinforce our commitment to continuing to generate free cash flow and and deliver each of the companies.
César Silva: Having said that, I finish our presentation and invite you all to the Q&A session. Thank you.
Speaker Change: Having said that, I finished our presentation and invited you all to the Q&A session.
Kathleen: We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. And if you would like to withdraw your question, simply press the star 1 again.
Speaker Change: Thank you. We will now begin the question and answer session.
Speaker Change: If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue.
Speaker Change: And if you would like to withdraw your question, simply press the star one again.
Kathleen: If you are called upon to ask your question and listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, please press star 1 to join the queue.
Speaker Change: If you are called upon to ask your question and listening while out speaker on your device please speak up your handset and ensure that your phone is not amused when asking your question.
Jéssica Meller: And your first question comes from the line of Jessica Meller of J.P. Morgan. Please go ahead.
Again, please press star one to join the kids.
Speaker Change: And your first question comes from the line of Chesica Mallor of JP Morgan. Please go ahead.
Jéssica Meller: Hello, good evening, everyone. Thank you for taking my question. Actually, I have two.
Jéssica Meller: Hello, good evening everyone. Thank you for taking my question. Actually I have to so first.
César Silva: So first, how do you see margins for 2025 comparing to 2024? This is my first question. And second, what is the strategy in terms of mix? What is the expectations for the B2G business? How much this business can expand going forward? Thank you. Thank you, Jessica. I will take your questions. I will start with the margins. We expect stable margins for 2025, so when we end in 2024, slightly above 30%. We forecast similar margins, although Q1 and Q2 will have... lower margin due to some concentration in marketing spending and make...
Speaker Change: How do you see margins for 2025 compared to 2024? This is my first question. And second, what is the strategy in terms of mix?
Speaker Change: What are the expectations for the B2G business? How much this business can expand going forward? Thank you.
Thank you, Jessica. I will take your questions.
Speaker Change: I will start with the margins. We expect stable margins for 2025, so we ended 2024. It's likely above 30%, we forecast similar margins, although Q1 and Q2 will have...
Speaker Change: Lord Margin, due to some concentration in marketing spendings can be mixed.
César Silva: We expect MIX to catch up in Q2 and now I will jump to the second question about strategy and MIX and B2G because it also compounds with the margins. So we have last year in 2024 we had a concentration in B2G because the Pará contract was entirely recognized in Q1. This contract this year on the sales cycle of 2025 was partially recognized in Q4 2024 and we expect to perform the remaining of the contract in Q2 and Q3. Additionally, we already noticed new contracts in B2G where we have five new contracts in Q1 and we have definitely more contracts to pile up in Q2.
Speaker Change: We expect mix to catch up in Q2 and now I will jump to the second question about strategy mix and B2G because it also compounds with the margins.
Speaker Change: So we have left here in 2024, we had a concentration in B2G because the Para contract was entirely recognized in Q1. This contract is here on the sales side for 2025.
Speaker Change: was partially recognized in Q4 2024 and we expect to perform the remaining of the contract in Q2 and Q3.
Speaker Change: Additionally, we already noticed new concerts in B2G, which are 5 of the concerts in B2G1. And you have definitely more concerts, so you'll pile up in the future.
César Silva: So this will enhance MIX. in terms of segment mix. In terms of B2B product mix, we expect to be very similar to last year, with complementary products growing high double digits, actually above 20%, and core content in double digits. That's what we expected, and we expected to have similar margins in 2021.
Speaker Change: in terms of segment mix. In terms of grid-to-be product mix, we expect to be very similar to last year with complementary products growing in high double digits, actually above 20% and core content in double digits.
Kathleen: Very clear, thank you. Again, if you would like to ask a question, please press star 1 to join the queue. We'll pause for just a moment to compile the Q&A roster.
Speaker Change: Again, if you would like to ask a question, please press star one to join the queue. We'll pause for just a moment to compile the queue in a roster.
Lucas Nagano: And your next question comes from the line of Lucas Nagano of Morgan Stanley. Your line is now open.
Guilherme, Lucca Marquezini, Lucas Nagano
Speaker Change: And your next question comes from the line of Lucas Nagano of Morgan Stanley . Your line is now open.
Lucas Nagano: Hi, good evening, Melega, Cesar, thanks for taking our questions. I have just one and it's related to the B2G. You mentioned that part of the contract was booked last year. So do you expect a lower B2G revenue this year or should there be a seasonality? The seasonality of the contract should be kind of the same in which part of it is booked on the fourth quarter of the previous year. Just a question to assess the potential growth of B2G this year.
Speaker Change: So do you expect a lower E2G revenue this year or should there be a seasonality? This is an ality of the power contract to be kind of the same in which.
Speaker Change: Part of it is booked on the fourth quarter of the previous year. Just a question to assess the potential growth of BTG this year. Thank you.
César Silva: Thank you. Thank you very much, Lucas.
César Silva: I really would like to have more data to... to have a confident seasonality in terms of... But this year, I would say that, for instance, in Pará, we are having a more normal seasonality because first semester should be recognized in late Q4. So when we start classes in January and February, you already have the material. So it's quite similar to the B2B distribution process. So we expect to have the same distribution in 2025. So we do not expect any... any difference in terms of fiscal year on 2025. Additionally, we have a very heated life. We are prospecting several new contracts that will pile up in the contracts that we already signed.
Speaker Change: But this year, I would say that, for instance, in para, we are having a more normal
Speaker Change: First semester should be recognized in Lake Q4, so when we start classes in January and February , you already have the material. So it's quite similar to the B2B distribution process.
Speaker Change: So, we expect to have the same distribution in 2025. So, we do not expect any...
Has any difference in terms of fiscal year on 2025?
César Silva: So we expect growth in the B2G. We will not give guidance about that, but we are working to have a sound growth for 2020.
Speaker Change: We expect to grow in the B2G. We will not give a guidance about that, but we are working to have it a sound growth for 2025.
Lucas Nagano: Very clear, thank you.
Very clear. Thank you.
Kathleen: And there are no further questions at this time.
Guilherme Melega: I will now turn the conference back over to Mr. Guilherme Melega, our CEO, for closing remarks. Thank you all very much for participating in the Vasta Platform Q1 conference call. We are very happy with the beginning of the year, with the ACB recognition, with the start of sales campaign of ACB for 2026. We just finalized the batch of Lucca Fair last week that generated a significant pipeline for us in B2B and B2G. So both segments are... with Heated Pipeline. And additionally to that, we already see very positive signs in free cash flow that we will remain performed positively throughout the year.
Speaker Change: And there are no further questions at this time. I will not turn the conference back over to Mr. Guilherme Melega, our CEO for closing remarks.
Guilherme Melega: Thank you all very much for participating in the Vasta Platform Q1 conference call.
Guilherme Melega: Very happy with the beginning of the year, with ACV recognition, with the start of sales campaign of ACV for 2026.
Guilherme Melega: We just finalized the batch of the car fair last week that generated the significant pipeline for us in B2B and B2G. So both segments.
Guilherme Melega: with heated pipeline and additionally to that, we already see very positive signs in free cashflow that we will remain performed positively throughout the year.
Guilherme Melega: So thank you very much.
Guilherme Melega: Looking forward to see you on our Q2 earnings release call. Thank you.
Guilherme Melega: So, thank you very much looking forward to see you on our Q2 and this really is gone. Thank you.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining.
Operator: You may now disconnect.
Guilherme Melega: Ladies and gentlemen, that concludes today's call. Thank you all for joining, you may now disconnect.
Guilherme Melega: Marquezini, Lucas Nagano, Lucas Nagano
Guilherme Melega: [music].