Latest news with #Vasta
Business Wire
6 days ago
- Business
- Business Wire
Vasta Platform Limited to Report Second Quarter 2025 Financial Results on August 06, 2025
SíO PAULO--(BUSINESS WIRE)--Vasta Platform Limited (NASDAQ: VSTA) today announces that it will report second quarter 2025 financial results for the period ended June 30, 2025, after the market closes on Wednesday, August 06, 2025. The Company will host a corresponding conference call and webcast on the same day, August 06, at 5:00 p.m. Eastern time. Investors may listen to the conference call (ID: 3871721) by dialing 1 (888) 660-6819 or 1 (929) 203-1989. Brazil dial-in options are also available by dialing 55 (11) 4210-6701 or 55 800 591-2026. A live and archived webcast of the call will be available on the Investor Relations section of the Company's website at About Vasta Vasta is a leading, high-growth education company in Brazil powered by technology, providing end-to-end educational and digital solutions that cater to all needs of private schools operating in the K-12 educational segment, ultimately benefiting all of Vasta's stakeholders, including students, parents, educators, administrators, and private school owners. Vasta's mission is to help private K-12 schools to be better and more profitable, supporting their digital transformation. Vasta believes it is uniquely positioned to help schools in Brazil undergo the process of digital transformation and bring their education skill-set to the 21st century. Vasta promotes the unified use of technology in K-12 education with enhanced data and actionable insight for educators, increased collaboration among support staff and improvements in production, efficiency and quality. For more information, please visit
The Citizen
25-06-2025
- Business
- The Citizen
Mystery debit orders leave bank client without answers
Woman later found she was linked to DebiCheck but insists she never received an authorisation request. A Moneyweb reader recently discovered that two debit orders – totalling nearly R500 a month – had been going off her FNB account since February. The charges were from companies she did not recognise – Legal Cover and Medic Now – deducting R260 and R225 respectively. FNB provided her with the references for the two debit orders — SS-Legcov and SS-Medic. The reader told Moneyweb that she had never had any business dealings with the two companies, nor had she authorised any debit orders linked to them. When she contacted FNB's fraud department, she was advised that the bank could not stop the debit orders and that she would need to cancel the transactions personally. She was also told that the bank could not block future deductions because the reference numbers changed every month, making them difficult to trace. ALSO READ: Reserve bank teaches customers about AC DebiCheck Medic Now and Legal Cover FNB supplied contact numbers for both Medic Now and Legal Cover, which Moneyweb then contacted. After several attempts, Moneyweb was able to reach Sameer Vasta, the legal compliance officer at Medic Now. Medic Now is a private emergency response and evacuation service that provides ambulance transport to the nearest medical facility, a medical advice helpline as well as support in high-risk situations such as fires. The service is marketed as an affordable alternative for individuals who do not have access to traditional medical aid, particularly those living in township areas where state ambulance services may be inadequate or unavailable. Legal Cover is, according to its website, a 'subscription-based protection plan' that provides legal services, including for divorces and traffic fines. ALSO READ: DebiCheck will protect you from unauthorised debit orders come 1 May 22-step verification protocol Vasta told Moneyweb that Medic Now does not conduct direct sales. Instead, the company relies on third-party marketing agencies that approach potential clients in busy public areas such as taxi ranks and shopping malls. These agents use secure devices equipped with DebiCheck functionality, which allows prospective clients to authorise debit orders on the spot. The process, according to Vasta, involves a 22-step verification protocol. He maintains that it is 'technically impossible' for a debit order to be processed unless this process is completed in full and approved by the customer. The Moneyweb reader maintains that she was never approached by any agents selling Medic Now or Legal Cover memberships. She has since discovered the debit orders are linked to DebiCheck, but denies having received any notification from FNB prompting her to personally authorise them. ALSO READ: Challenges and opportunities of becoming a cashless society What is DebiCheck? DebiCheck was introduced in 2017 to combat unauthorised debit orders. Unlike traditional EFT debit orders, DebiCheck requires customers to approve or reject debit order mandates before they are processed. It was rolled out in phases by the Payments Association of South Africa (Pasa), under the guidance of the South African Reserve Bank. Once approved, the mandate is stored and used for future deductions, ensuring the client has authorised the debit in advance. Although not all companies currently use DebiCheck, banks recommend that customers make use of it wherever possible. ALSO READ: FSCA finds banks do not handle consumer complaints properly 'Impulse purchases' In response to the reader's claims, Vasta said that while some clients later claim they did not consent to the deductions, such complaints are often linked to 'impulse purchases'. 'It sounds good and at the end of the month, they realise they can't afford it. They try to cancel it via the bank. And now they say they're not aware of this.' He emphasises that the references on the debit orders in question are indeed DebiCheck-authorised transactions – and that this is likely why clients find it difficult to cancel via their bank. Vasta notes that Medic Now has a zero-tolerance approach to fraud. If any marketing agent is found to have misrepresented the product or the authorisation process, they are dismissed immediately. Vasta adds that while the debit order is initiated by Medic Now, it is only processed once the client has completed the necessary authorisation steps. 'It's authorised by the client – not authorised by us. We cannot do debit orders without the necessary authorisation.' A call to Legal Cover's number (provided by FNB) went unanswered during office hours. When Moneyweb called the same number after hours, the recorded message listed business hours and directed clients to Vasta for urgent legal assistance. Moneyweb later asked Vasta whether Medic Now is affiliated with Legal Cover – the second company deducting funds from the reader's account. He said there was no connection between the companies but confirmed that he is the legal compliance officer for both Medic Now and Legal Cover. Vasta offered to personally assist in cancelling the reader's debit orders. ALSO READ: More to be done to curb rip-offs by banks and insurance companies What banks say Each of South Africa's major banks offers advice and mechanisms to deal with questionable debit orders. FNB FNB notes that there are two types of debit order streams available to service providers: An EFT debit order and a DebiCheck debit order. The service provider chooses which stream to use. Clients can dispute and reverse debit orders via online banking, the FNB app, or cellphone banking. Once reversed, a stop payment can be placed to block further deductions – although this is not always effective. 'Some service providers change the reference to circumvent the stop payment placed by the banks, allowing the debit order to be processed,' says Ravi Shunmugam, CEO of EFT at FNB. He adds that this practice contravenes debit order rules. In cases of alleged fraud, FNB cannot report the fraud directly to the service provider on behalf of the client. The customer must submit the report themselves, including an affidavit, a copy of their ID, and a bank statement. FNB may escalate complaints to the service provider's sponsoring bank if needed. Customers are notified via SMS whenever a new debit order is raised on their account for the first time. If they believe the debit order is unauthorised, they can dispute and reverse it by replying to the SMS or using FNB's digital platforms. FNB also offers functionality through its app, online banking, and cellphone banking that allows clients to view existing debit orders and dispute or stop those under R200. Debit orders exceeding R200 must be disputed via a branch or the call centre. ALSO READ: Gauteng man takes Absa to court over alleged unlawful car repossession Absa Absa uses DebiCheck to ensure clients approve debit orders before they are processed. 'It is key to note that debit orders are agreements between customers and their service providers,' a spokesperson says. Clients can dispute debit orders through the Absa app, in a branch, or via the contact centre. If necessary, the bank's fraud team will assist with reporting the matter to the relevant authorities. ALSO READ: Capitec hit by R56m Sarb financial penalty Capitec Capitec clients can view debit orders via the app or at a branch. According to Asha Patel, head of brand and communications, disputes can be logged digitally or through Capitec's client care centre. If fraud is suspected, an internal investigation is launched, and Capitec may contact the debit originator directly. Patel says the payments industry is transitioning toward a mandate-driven model such as DebiCheck. 'However, some debit order streams rely on legacy processes where banks can request proof of the mandate from the initiating company. Although this introduces complexity, Capitec actively works within industry structures to reduce abuse and enhance client protection.' If a particular company appears in multiple complaints, Capitec escalates the matter through formal industry channels, which may lead to the company's suspension. ALSO READ: Class action suit shows banks sell repossessed houses for cents in the rand Nedbank Nedbank customers can dispute debit orders via the Nedbank Money app or online banking. If fraud is suspected, the matter is escalated to the bank's fraud division for further investigation. Although unauthorised debit orders remain a persistent concern, Nedbank says DebiCheck mandates have helped reduce the number of such cases. The bank monitors transaction trends and flags suspicious originators, reporting them to Pasa and the Financial Sector Conduct Authority. Where abuse is confirmed, action may include suspension from the payment system. ALSO READ: Standard Bank glitch: Clients shocked by empty account balances Standard Bank Standard Bank offers three debit order types: traditional EFT debits, DebiCheck, and registered mandates. DebiCheck and registered mandates require customers to confirm mandates digitally before debits are processed, providing greater control. For EFT debits that are deemed suspicious or unauthorised, Standard Bank recommends clients act quickly. The bank can suspend debit orders and reverse previous deductions, provided they fall within a 365-day period. 'In rare cases of fraud, particularly where a client has been the victim of social engineering or their device such as a mobile phone has been compromised, it could result in what would on the face of it look like the actual customer having approved the debit instruction,' the lender notes. Follow Moneyweb's in-depth finance and business news on WhatsApp here.
Business Wire
08-05-2025
- Business
- Business Wire
Vasta Announces First Quarter 2025 Results
SíO PAULO--(BUSINESS WIRE)-- Vasta Platform Limited (NASDAQ: VSTA) – 'Vasta' or the 'Company' announces today its financial and operating results for the first quarter of 2025 (1Q25) ended March 31, 2025. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS). HIGHLIGHTS In the 2025 sales cycle to date (which commenced 4Q24 through 1Q25), net revenue increased 11% to R$1,129 million compared to the same period of the 2024 sales cycle, mostly due to the conversion of Annual Contract Value ('ACV') bookings into revenue in the period. In 1Q25, net revenue totaled R$430 million, a 7% decrease compared to the same period in the previous year. Vasta's accumulated subscription revenue in the 2025 sales cycle to date year totaled R$1,019 million, a 17% increase compared to the previous year's sales cycle. Complementary solutions net revenue in the 2025 sales cycle increased 24%, to R$223 million, compared to the 2024 sales cycle. The business unit of Brazilian public-school sector (B2G) continues to generate new contracts and new revenues for Vasta. In this growth avenue, we achieved R$ 5.0 million in revenue in 1Q25 with revenues coming from new contracts, compared to R$69 million in 1Q2024, when the totality of Pará contract (1 st and 2 nd Semester) was booked all at once. In 2025 cycle, 1 st Semester of Pará contract was booked in 4Q2024 and 2 nd Semester is expected to be performed throughout the year. In the 2025 sales cycle to date, Adjusted EBITDA grew by 5% to R$420 million, from R$402 million in the same period of the 2024 sales cycle, and Adjusted EBITDA Margin decreased by 2.4 p.p., from 39.6% to 37.2%. In 1Q25, Adjusted EBITDA totaled R$121 million, a decrease compared to R$162 million in 1Q24, and Adjusted EBITDA Margin achieved 28.2%, 7 p.p. lower than 1Q2024, because of different seasonality in 2025 B2G revenues , as explained above, and higher marketing expenses. Vasta recorded an Adjusted Net Profit of R$140 million in the 2025 sales cycle to date, a 4% decrease compared to R$146 million in the 2024 sales cycle. In 1Q25, Adjusted Net Profit totaled R$26 million, a 49% decrease compared to R$50 million in 1Q24. Free cash flow (FCF) totaled R$144 million in the 2025 sales cycle to date, a R$92 million increase from R$52 million in the 2024 sales cycle. In 1Q25 FCF totaled R$74 million, a 42% increase from R$52 million in 1Q24. The last twelve-months (LTM) FCF/Adjusted EBITDA conversion rate improved from 42.5% to 50.8%, as a result of Vasta's growth and implementation of sustained efficiency measures. Additionally, First semester of 2025 will benefit from early collections regarding 2025 sales cycle, which will be normalized throughout the year. Mr. Mario Ghio, former Vasta´s CEO, resigned from his board member position to pursue personal projects. Mr. Guilherme Melega was appointed by the Board to replace him as board member. MESSAGE FROM MANAGEMENT The 1Q25 results represent the halfway through of the 2025 sales cycle, where we continue to deliver relevant financial results. In the 2025 sales cycle to date, net revenue increased 11% to R$1,129 million, compared to the same period of the 2024 sales cycle, mostly due to the conversion of ACV into revenue. Vasta's accumulated subscription revenue in the 2025 sales cycle to date totaled R$1,019 million, a 17% increase compared to the previous sales cycle. Our complementary solutions have seen important growth of 24% in the 2025 sales cycle when compared to the same period of 2024, with an accelerated increase in both student base and market penetration. The partners-school base that uses our complementary solutions increased to an aggregate of 2,149 schools. Start-Anglo bilingual school operations, which have already achieved R$4,3 million of the subscription revenue in the 2025 sales cycle, started showing results and despite the small net revenue in relation to total company, these numbers reinforce the importance of Start Anglo in our future business and demonstrate an important source of revenue for the coming years. In a short time, it has evolved from concept to reality, with 7 operating units in 2025. We have already signed more than 40 contracts, and we expect these units will be operational in the coming years and we have been working to convert in contract our strong pipeline, with more than 300 prospects. Our technology platform, Plurall, has achieved a new stage of development and service delivery. In the last year, we delivered new features to teachers, schools, and students, using artificial intelligence powered by AWS (Amazon Web Services). In 2025, it was already created more than 1.4 million objects (questions, slides, pictures, tests) using our AI features, and our intelligent assistant "Plu" has been supporting students to have a personalized learning experience by responding to questions about specific subjects and assisting them in their daily study time. For teachers, Plu will be a personalized partner and will streamline activities such as creating presentations, slides, videos, questions, lesson plans, and teaching materials. We have been working on improving our platform focused on creating an Individualized Educational Plan (IEP), and Plurall is expected to be able to generate personalized pedagogical recommendations (to be implemented in 2026) and assist teachers and schools in inclusive practices, providing an innovative solution to help educators transform challenges into opportunities for growth. Focused on the concepts of inclusion, diversity, and equity in continuous education, Plurall AI advances towards creating a welcoming educational environment for all students. In the B2G segment, this quarter we achieved R$ 5 million in net revenue, coming from 5 new contracts. In 1Q24, we achieved R$ 69 million, when the totality of Pará contract (1st and 2nd Semester) was booked all at once. In 2025 cycle, 1st Semester of Pará contract was booked in 4Q24 and 2nd Semester is expected to be performed throughout the year. We remain confident in our strategy to have a positive impact on public education, serving this segment and its students with our extensive portfolio of core content solutions, digital platform, and additional offerings, along with the custom learning solutions developed over decades in the private sector. The continued growth of the company's profitability was another highlight of the 2025 sales cycle to date as the Adjusted EBITDA grew by 5% to R$420 million compared to R$402 million in the previous year, and Adjusted EBITDA Margin decreased from 39.6% in the same period of the 2024 sales cycle to 37.2% in the 2025 sales cycle to date. In proportion to net revenue, gross margin decreased 3.2 p.p. in the sales cycle to date, mainly due to a different seasonality in 2025 B2G revenues, as explained above, and higher marketing expenses related to business expansion. The company's cash flow generation was one of the main highlights of the 2025 sales cycle to date. Free cashflow (FCF) totaled R$144 million, a R$92 million increase from R$52 million at the same point of the 2024 sales cycle. The last twelve-month (LTM) FCF/Adjusted EBITDA conversion rate improved from 42.5% to 50.8% as a result of Vasta's growth and implementation of sustained efficiency measures. Additionally, first semester of 2025 will benefit from early collections regarding 2025 sales cycle, which will be normalized throughout the year. It is worth saying that these measures include certain improvements in our collection processes, including process automation, reminders and past-due notifications, customer segmentation, and faster renegotiation of delayed receivables. On the payments side, we implemented several initiatives to achieve better discipline in payments, such as rigorous financial planning, centralization of payments on single monthly dates, and negotiating longer payment terms with suppliers. Moreover, we continue to make progress on deleveraging the company. The net debt/LTM adjusted EBITDA of 2.06x as of the end of 1Q25 shows a downward trend being 0.16x less than as of 1Q24. Student base – subscription models As we conclude the period of return of collections, we update the number of partner schools and enrolled students for the 2025 sales cycle. In this sales cycle, Vasta provides approximately 1.5 million students with core content solutions and more than 560,000 students with complementary solutions. This is aligned with the company's strategy to focus on improving its client base in 2025 through a better mix of schools and growth in premium education systems (Anglo, PH, Amplia and Fibonacci), brands with higher average ticket, lower defaults, greater adoption of complementary solutions and longer-term relationships. FINANCIAL PERFORMANCE Net revenue Values in R$ '000 1Q25 1Q24 % Y/Y 2025 cycle 2024 cycle % Y/Y Subscription 400,132 357,387 12.0% 1,019,444 872,247 16.9% Core content 352,613 308,292 14.4% 795,552 692,004 15.0% Complementary solutions 47,519 49,095 (3.2%) 223,892 180,243 24.2% B2G 25,045 34,298 (27.0%) 68,827 73,546 (6.4%) Non-subscription 5,215 69,031 (92.4%) 41,050 69,031 (40.5%) Total net revenue 430,392 460,716 (6.6%) 1,129,321 1,014,824 11.3% % Subscription 93.0% 77.6% 15.4p.p. 90.3% 86.0% 4.3p.p. Note: n.m.: not meaningful Expand In 1Q25, Vasta's net revenue totaled R$430 million, a 6.6% decrease compared to 1Q24, mainly due to lower revenue from B2G. In the 2025 sales cycle to date (4Q24 and 1Q25), Vasta's net revenue totaled R$1,129 million, an 11.3% increase compared to the same period of the 2024 sales cycle. Subscription revenue grew 16.9% in the 2025 sales cycle to date, mostly due to the conversion of ACV into revenue. EBITDA In the 2025 sales cycle to date, Adjusted EBITDA reached R$420 million, representing an increase of 4.6% in comparison to the same period of the 2024 sales cycle, with a margin of 37.2%, compared to 39.6% in the same period of the 2024 sales cycle. This increase in Adjusted EBITDA was mainly driven by gains in operating efficiency and a sales mix that benefited from the growth of subscription products, compensating for lower net revenue in the B2G segment. In 1Q25, Adjusted EBITDA totaled R$121 million, a 25.2% decrease compared to R$162 million in 1Q24, mainly impacted by lower net revenue in the B2G segment and higher marketing expenses, substantially linked to the seasonal effect of commissions to be paid on e-commerce net revenue. In the 2025 cycle to date, the Company proceeded with the partial reversal of the tax contingencies, based on the opinion of its legal advisors, related to the discussions of goodwill and other subjects derived from the acquisition of the Anglo Group in 2010 and subsequent restructuring. Company decided to partially reverse certain provisions in the total amount of R$ 532,717, comprising (i) R$ 92,558 reversals of the principal portion, which impacted positively our general and administrative expenses (ii) R$ 233,198 reversals of the income tax and social contribution, (iii) R$ 206.961 reversal of interest and fines, in the Finance result. Gross margin decreased 3.2 p.p. in the sales cycle to date mainly due to lower net revenue in the period. Adjusted cash G&A expenses reduced by 0.9 p.p. driven by workforce optimization and budgetary discipline, while Commercial expenses increased by 1.2 p.p. driven by higher expenses related to business expansion and marketing investments. Impairment on trade receivable (PDA), which the Company booked in 4Q23 as additional provision for expected credit losses related to customers in mainstream brands, reduced by 1.1 p.p. Finance Results In the first quarter of 2025, finance income totaled R$12.6 million, a 6.7% decrease from R$13.5 million in 1Q24. In the 2025 sales cycle to date, finance income increased to R$233.6 million from R$30.2 million in the same period of the 2024 sales cycle. Finance income was positively impacted by a gain of R$207 million recorded in 4Q24, resulting from the reversal of interest on tax contingencies. Finance costs in 1Q25 decreased 16.4% to R$58.3 million, from R$69.8 million in 1Q24. In the 2025 sales cycle to date finance cost decreased 19.3% compared to the same period in the 2024 sales cycle driven by the reduction of the interest on provision for tax, civil and labor risks as a result of the reversal of tax contingencies recorded in 4Q24. Net profit (loss) In the first quarter of 2025, adjusted net profit totaled R$26 million, a 48.6% decrease compared to R$50 million in 1Q24. In the 2025 sales cycle to date, adjusted net profit reached R$140 million, a 4.4% decrease from an adjusted net profit of R$146 million in the same period of the 2024 sales cycle. Accounts receivable and PDA The average payment term of Vasta's accounts receivable portfolio was 188 days in 1Q25, which represents 8 days higher than the same quarter of the previous year but remaining stable comparing to 4Q24. Free cash flow Free cash flow (FCF) totaled R$74 million in 1Q25, a 42.3% increase from R$52 million in 1Q24. In the 2025 sales cycle to date, FCF totaled R$144 million, a R$92 million increase from R$52 million in the same period of the 2024 sales cycle. The last twelve-month (LTM) FCF/Adjusted EBITDA conversion rate improved from 42.5% to 50.8% as a result of Vasta's growth and implementation of sustained efficiency measures. These measures include certain improvements in our collection processes, including process automation, reminders and past-due notifications, customer segmentation, and faster renegotiation of delayed receivables . On the payments side, we implemented several initiatives to achieve better discipline in payments, such as rigorous financial planning, centralization of payments on single monthly dates, and negotiating longer payment terms with suppliers. Additionally, the first semester of 2025 will benefit from early collections regarding 2025 sales cycle, which will be normalized throughout the year. Financial leverage As of the end of 1Q25, Vasta had a net debt position of R$963 million, a R$40 million decrease compared to 4Q24, mainly due to positive FCF generation, compensated by financial interest costs. Compared to 1Q24, the net debt position decreased R$ 106 million. The net debt/LTM adjusted EBITDA as of 2.06x shows a downward trend being 0.16x less than as of 1Q24. ESG Sustainability Report In August 2024, we disclosed Vasta´s third sustainability report regarding the year of 2023 and it was prepared in accordance with international standards and the implementation of our corporate strategy, challenges, and achievements, while also reaffirming our commitment to transparency and sustainability. These include the publication of its second Greenhouse Gas Inventory, the company's adherence to the UN Global Compact, the dedication of 1,991 thousand hours to the Corporate Volunteer Program, the SOMOS Afro program, an affirmative internship program, and the fact that 29% of the seats on the Board of Directors are occupied by women. The report complies with the Global Reporting Initiative (GRI) 2021 version and considers other standards recognized in Brazil and abroad, such as the Sustainability Accounting Standards Board (SASB) guidelines for the education sector, the guidelines of the IBC Stakeholder Capitalism Metrics from the World Economic Forum, and the principles of the International Integrated Reporting Council (IIRC). The document is available at: Information contained in, or accessible through, our website is not incorporated by reference in, and does not constitute a part of, this press release. In line with the topics identified in the materiality process, every quarter we present Vasta's most material indicators: Key Indicators ENVIRONMENT Water withdrawal 2 SDGs GRI Disclosure Unit 1Q2025 1Q2024 % Y/Y 4Q2024 % Q/Q 3, 11, 12 303-3 Total water withdrawal m³ 7,343 6,515 13% 7,154 2.6% Municipal water supply 1 % 100% 100% 0 p.p. 100% 0 p.p. Groundwater % 0% 0% 0 p.p. 0% 0 p.p. Energy consumption within the organization 2 SDGs GRI Disclosure Unit 1Q2025 1Q2024 % Y/Y 4Q2024 % Q/Q 12, 13 302-1 Total energy consumption GJ 3,384 3,339 1% 3,468 -2.4% Energy from renewable sources 2 % 66% 78% (12 p.p.) 74% (8 p.p.) Expand The 2024 data was adjusted as part of the annual reparameterization process, since some utility bills may not be available at the time of data closing. The increase in water consumption in the first quarter of 2025 is due to the integration of the new unit, Start Anglo Liceu, offset by the deactivate Anglo Tamandaré unit, which is no longer impacting the data. SOCIAL Diversity in workforce by employee category SDGs GRI Disclosure Unit 1Q2025 1Q2024 % HA 4Q2024 % HA 5 405-1 C-level – Women % 22% 29% (7 p.p.) 22% 0 p.p. C-level – Men % 78% 71% 7 p.p. 78% 0 p.p. C-level- total 4 no. 9 7 29% 9 0.0% Leadership (≥ managers) – Women % 44% 45% (1 p.p.) 45% (1 p.p.) Total - Leadership (≥ managers) – Men % 56% 55% 1 p.p. 55% 1 p.p. Leadership (≥ managers) 5 – total no. 124 144 -14% 117 6.0% Academic staff – Women % 28% 18% 10.0 p.p. 15% 13 p.p. Academic staff – Men % 72% 83% (11.0 p.p.) 85% (13 p.p.) Academic staff 6 - total no. 96 80 20% 73 31.5% Administrative/Operational – Women % 54% 56% (2 p.p.) 54% 0 p.p. Administrative/Operational – Male % 46% 44% 2 p.p. 46% 0 p.p. Administrative/Operational 7 - total no. 1,229 1,595 -23% 1,215 1.2% Employees – Women % 51% 54% (3 p.p.) 51% 0 p.p. Employees – Men % 49% 46% 3 p.p. 49% 0 p.p. Employees - total no. 1,458 1,831 (0 p.p.) 1,424 2.4% Expand Continuing our Diversity and Inclusion efforts, we are committed to promoting inclusion and recognizing the multiple identities that make up both our society and Cogna. On National Trans and Transvestite Visibility Day, we took the opportunity to reaffirm our commitment to the inclusion of the trans and transvestite community, combating discrimination and promoting equal rights. Throughout this week, we emphasized the importance of this date through posts on our internal social network, with the aim of inspiring and mobilizing everyone toward a fairer and more respectful environment. Additionally, in March 2025 we celebrated International Women's Day, a historic occasion that invites us to reflect on the importance of working not only for a diverse job market but for a plural and equitable society. During this period, we highlighted the #WomenWhoEmpower and recognized the talent, dedication, and achievements of our female colleagues, who are essential to the success and growth of Cogna. These actions are crucial in strengthening our commitment to a more inclusive and respectful workplace. We continue to maintain the Somos Futuro Program via Instituto SOMOS. The initiative enables public school students to attend high school at one of Vasta's partner schools. In this quarter, 229 young people were studying through the program, receiving didactic and paradidactic material, online school tutoring, mentoring, and access to the entire support network of the program, which includes psychological monitoring, in addition to the scholarship offered by the school. During the period, the main employee accidents involved cuts and punctures to fingers and hands, occurring in circulation areas. Inspections were conducted in the workplaces to identify risk situations and implement preventive plans. The decrease in the number of trained employees in the first quarter of 2025 is due to the fact that our training programs follow a two-year recycling cycle. In other words, many employees were already trained in previous periods, which naturally reduces the demand for new training sessions at this time. This approach is part of our strategy to keep the team continuously updated, while respecting the established frequency for each topic. GOVERNANCE Ethical conduct SDGs GRI Disclosure Unit 1Q2025 1Q2024 % HA 4Q2024 % HA 16 2-25 Cases recorded in our Confidential Ethics Hotline 13 no. 17 9 89% 32 -47% 10 406-1 Grievances regarding discrimination received through our Confidential Ethics Hotline 13 no. 1 - 0% - 0% Confirmed incidents of discrimination 13 no. - - 0.0 p.p. - 0% 5 405-1 Employees who have received training on anti-corruption policies and procedures % 100% 100% 0.0 p.p. 100% 0 p.p. Operations assessed for risks related to corruption % 100% 100% 0.0 p.p. 100% 0 p.p. Confirmed incidents of corruption no. - - 0% - 0% NA: Not available: quarterly disclosure began in the second quarter of 2023. It used to be reported annually in Sustainability Reports. Expand We expanded the disclosure of the confidential reporting channel with the goal of reaching a broader audience, including locations where this communication was previously unavailable. To achieve this, we installed signs with QR codes in corporate offices, distribution centers, and educational institutions, and also made the access link available directly on the student portal. This increased visibility and ease of access may have contributed to the rise in the number of cases reported this quarter, reflecting greater awareness and trust in using the channel. We did not record significant sanctions or fines related to economic and social issues, except for the normal course of business. The increase in the number of complaints in the first quarter of 2025 can be attributed to the student enrollment period, which led to a higher volume of requests and inquiries regarding the handling of personal data. We have added a sorting and reclassification feature allowing us, after analysis of the case, to reclassify requests based on whether they fact relate to rights of data subjects under the Brazilian data protection regulation FOOTNOTES: SDG Sustainable Development Goal. Indicates goal to which the actions monitored contribute. GRI Global Reporting Initiative. Lists the GRI standard indicators related to the data monitored. ND Indicator discontinued or not measured in the quarter. NM Not meaningful 1 Based on invoices from sanitation concessionaires. 2 Acquired from the free energy market. 3 n.a. 4 Takes into the account the positions of CEO, vice presidents and director reporting directly to the CEO 5 Management, senior management and leadership positions not reporting directly to the CEO 6 Course coordinators, teachers, and tutors. 7 Corporate coordination, specialists, adjuncts, assistants and analysts. 8 Indicators reported on semi-annual basis (2Q and 4Q). 9 Total hours of training/employees trained. 10 Total accidents (with and without leave)/ Total man/hours worked (MHW) x 1,000,000 11 Work-related injury (excluding fatalities) from which the worker cannot recover fully to pre-injury health status within 6 months. Formula: Number of injuries/MHW x 1.000.000. 12 Fatalities/ MHW x 1,000,000. 13 Indicators measured from the first quarter of 2023. It used to be reported annually in Sustainability Reports Expand CONFERENCE CALL INFORMATION Vasta will discuss its first quarter 2025 results on May 8, 2025, via a conference call at 5:00 p.m. Eastern Time. To access the call (ID: 3871721), please dial: +1 (888) 660-6819 or +1 (929) 203-1989. A live and archived webcast of the call will be available on the Investor Relations section of the Company's website at Information contained in, or accessible through, our website is not incorporated by reference in, and does not constitute a part of, this press release. ABOUT VASTA Vasta is a leading, high-growth education company in Brazil powered by technology, providing end-to-end educational and digital solutions that cater to all needs of private schools operating in the K-12 educational segment, ultimately benefiting all of Vasta's stakeholders, including students, parents, educators, administrators, and private school owners. Vasta's mission is to help private K-12 schools to be better and more profitable, supporting their digital transformation. Vasta believes it is uniquely positioned to help schools in Brazil undergo the process of digital transformation and bring their education skill set to the 21st century. Vasta promotes the unified use of technology in K-12 education with enhanced data and actionable insight for educators, increased collaboration among support staff and improvements in production, efficiency and quality. For more information, please visit Information contained in, or accessible through, our website is not incorporated by reference in, and does not constitute a part of, this press release. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements that can be identified by the use of forward-looking words such as 'anticipate,' 'believe,' 'could,' 'expect,' 'should,' 'plan,' 'intend,' 'estimate' and 'potential,' among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to of various factors, including (i) general economic, financial, political, demographic and business conditions in Brazil, as well as any other countries we may serve in the future and their impact on our business; (ii) fluctuations in interest, inflation and exchange rates in Brazil and any other countries we may serve in the future; (iii) our ability to implement our business strategy and expand our portfolio of products and services; (iv) our ability to adapt to technological changes in the educational sector; (v) the availability of government authorizations on terms and conditions and within periods acceptable to us; (vi) our ability to continue attracting and retaining new partner schools and students; (vii) our ability to maintain the academic quality of our programs; (viii) the availability of qualified personnel and the ability to retain such personnel; (ix) changes in the financial condition of the students enrolling in our programs in general and in the competitive conditions in the education industry; (x) our capitalization and level of indebtedness; (xi) the interests of our controlling shareholder; (xii) changes in government regulations applicable to the education industry in Brazil; (xiii) government interventions in education industry programs, that affect the economic or tax regime, the collection of tuition fees or the regulatory framework applicable to educational institutions; (xiv) cancellations of contracts within the solutions we characterize as subscription arrangements or limitations on our ability to increase the rates we charge for the services we characterize as subscription arrangements; (xv) our ability to compete and conduct our business in the future; (xvi) our ability to anticipate changes in the business, changes in regulation or the materialization of existing and potential new risks; (xvii) the success of operating initiatives, including advertising and promotional efforts and new product, service and concept development by us and our competitors; (xviii) changes in consumer demands and preferences and technological advances, and our ability to innovate to respond to such changes; (xix) changes in labor, distribution and other operating costs; our compliance with, and changes to, government laws, regulations and tax matters that currently apply to us; (xx) the effectiveness of our risk management policies and procedures, including our internal control over financial reporting; (xxi) health crises, including due to pandemics such as the COVID-19 pandemic and government measures taken in response thereto; (xxii) other factors that may affect our financial condition, liquidity and results of operations; and (xxiii) other risk factors discussed under 'Risk Factors'. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. NON-GAAP FINANCIAL MEASURES This press release presents our EBITDA, Adjusted EBITDA and Adjusted net (loss) profit and Free cash flow (FCF), which is information provided for the convenience of investors. EBITDA and Adjusted EBITDA are among the key performance indicators used by us to measure financial operating performance. Our management believes that these Non-GAAP financial measures provide useful information to investors and shareholders. We also use these measures internally to establish budgets and operational goals to manage and monitor our business, evaluate our underlying historical performance and business strategies and to report our results to the board of directors. We calculate EBITDA as net (loss) profit for the period/year plus income taxes and social contribution plus/minus net finance result plus depreciation and amortization. The EBITDA measure provides useful information to assess our operational performance. We calculate Adjusted EBITDA as EBITDA plus/minus: (a) income tax and social contribution; (b) net finance result; (c) depreciation and amortization; (d) share-based compensation expenses, mainly due to the grant of additional shares to Somos' employees in connection with the change of control of Somos to Cogna (for further information refer to note 23 to the audited consolidated financial statements); (e) provision for risks of tax, civil and labor losses regarding penalties, related to income tax positions taken by the Predecessor Somos – Anglo and Vasta in connection with a corporate reorganization carried out by the Predecessor Somos – Anglo; (f) Bonus IPO, which refers to bonus paid to certain executives and employees based on restricted share units; and (g) expenses with contractual termination of employees due to organizational restructuring. We understand that such adjustments are relevant and should be considered when calculating our Adjusted EBITDA, which is a practical measure to assess our operational performance that allows us to compare it with other companies that operates in the same segment. We calculate Adjusted net (loss) profit as the (loss) profit for the period/year as presented in Statement of Profit or Loss and Other Comprehensive Income adjusted by the same Adjusted EBITDA items, however, added by (a) Amortization of intangible assets from Business Combination and (b) Tax shield of 34% generated by the aforementioned adjustments. We calculate Free cash flow (FCF) as the cash from operating activities as presented in the Statement of Cash Flows less (a) income tax and social contribution paid; (b) tax, civil and labor proceedings paid; (c) interest lease liabilities paid; (d) acquisition of property, plant and equipment; (e) additions to intangible assets; and (f) lease liabilities paid. We understand that, although Adjusted net (loss) profit, EBITDA, Adjusted EBITDA, and Free cash flow (FCF) are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS. Additionally, our calculations of Adjusted net (loss) profit, Adjusted EBITDA, and Free cash flow (FCF) may be different from the calculation used by other companies, including our competitors in the education services industry, and therefore, our measures may not be comparable to those of other companies. REVENUE RECOGNITION AND SEASONALITY Our main deliveries of printed and digital materials to our customers occur in the last quarter of each year (typically in November and December), and in the first quarter of each subsequent year (typically in February and March), and revenue is recognized when the customers obtain control over the materials. In addition, the printed and digital materials we provide in the fourth quarter are used by our customers in the following school year and, therefore, our fourth quarter results reflect the growth in the number of our students from one school year to the next, leading to higher revenue in general in our fourth quarter compared with the preceding quarters in each year. Consequently, in aggregate, the seasonality of our revenues generally produces higher revenues in the first and fourth quarters of our fiscal year. Thus, the numbers for the second quarter and third quarter are usually less relevant. In addition, we generally bill our customers during the first half of each school year (which starts in January), which generally results in a higher cash position in the first half of each year compared to the second half. A significant part of our expenses is also seasonal. Due to the nature of our business cycle, we need significant working capital, typically in September or October of each year, to cover costs related to production and inventory accumulation, selling and marketing expenses, and delivery of our teaching materials at the end of each year in preparation for the beginning of each school year. As a result, these operating expenses are generally incurred between September and December of each year. Purchases through our Livro Fácil e-commerce platform are also very intense during the back-to-school period, between November, when school enrollment takes place and families plan to anticipate the purchase of products and services, and February of the following year, when classes are about to start. Thus, e-commerce revenue is mainly concentrated in the first and fourth quarters of the year. KEY BUSINESS METRICS Annual Contract Value, or ACV, is a non-accounting managerial metric and represents our partner schools' commitment to pay for our solutions offerings. We believe it is a meaningful indicator of demand for our solutions. We consider ACV is a helpful metric because it is designed to show amounts that we expect to be recognized as revenue from subscription services for the 12-month period between October 1 of one fiscal year through September 30 of the following fiscal year. We define ACV as the revenue we would expect to recognize from a partner school in each school year, based on the number of students who have contracted our services, or 'enrolled students,' that will access our content at such partner school in such school year. We calculate ACV by multiplying the number of enrolled students at each school with the average ticket per student per year; the related number of enrolled students and average ticket per student per year are each calculated in accordance with the terms of each contract with the related school. Although our contracts with our schools are typically for 4-year terms, we record one year of revenue under such contracts as ACV. ACV is calculated based on the sum of actual contracts signed during the sales period and assumes the historical rates of returned goods from customers for the preceding 24-month period. Since the actual rates of returned goods from sales during the period may be different from the historical average rates and the actual volume of merchandise ordered by our customers may be different from the contracted amount, the actual revenue recognized during each period of a sales cycle may be different from the ACV for the respective sales cycle. Our reported ACV is subject to risks associated with, among other things, economic conditions and the markets in which we operate, including risks that our contracts may be canceled or adjusted (including as a result of the COVID-19 pandemic). Consolidated Statements of Financial Position (continued) Liabilities March 31, 2025 December 31, 2024 Current liabilities Bonds 273,907 264,484 Suppliers 204,703 240,192 Reverse factoring 307,618 302,608 Lease liabilities 23,253 22,133 Income tax and social contribution payable 2,670 2,146 Taxes payable 6,707 4,583 Salaries and social contributions 121,401 101,958 Contractual obligations and deferred income 43,164 40,565 Accounts payable for business combination 224,643 215,237 Other liabilities 30,268 19,944 Other liabilities - related parties 13,712 30,322 Total current liabilities 1,252,046 1,244,172 Non-current liabilities Bonds 497,820 497,521 Lease liabilities 87,127 89,240 Accounts payable for business combination 224,824 221,363 Provision for tax, civil and labor losses 158,089 157,123 Other liabilities 2,540 2,425 Total non-current liabilities 970,400 967,672 Total current and non-current liabilities 2,222,446 2,211,844 Shareholder's Equity Share capital 4,820,815 4,820,815 Capital reserve 92,505 90,909 Treasury shares (74,462) (74,641) Accumulated losses 151,661 154,928 Total Shareholder's Equity 4,990,519 4,992,011 Interest of non-controlling shareholders 1,191 1,300 Total Liabilities and Shareholder's Equity 7,214,156 7,205,155 Expand Consolidated Income Statement March 31, 2025 March 31, 2024 Net revenue from sales and services 430,392 460,716 Sales 404,602 442,545 Services 25,790 18,171 Cost of goods sold and services (141,213) (140,083) Gross profit 289,179 320,633 Operating income (expenses) (242,871) (224,582) General and administrative expenses (132,690) (139,902) Commercial expenses (97,699) (73,260) Impairment losses on trade receivables (12,546) (13,205) Other operating income 64 1,980 Other operating expenses - (195) Share of loss equity-accounted investees (1,922) (3,060) Profit before finance result and taxes 44,386 92,991 Finance result (45,713) (56,267) Finance income 12,631 13,543 Finance costs (58,344) (69,810) (Loss) profit before income tax and social contribution (1,327) 36,724 Income tax and social contribution Current (713) (6,973) Deferred (1,336) (7,809) (2,049) (14,782) (Loss) profit for the period (3,376) 21,942 Allocated to: Controlling shareholders (3,267) 22,172 Non-controlling shareholders (109) (230) Expand Consolidated Statement of Cash Flows 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES (Loss) profit before income tax and social contribution (1,327) 36,724 Adjustments for: Depreciation and amortization 76,424 69,534 Share of loss profit of equity-accounted investees 1,922 3,060 Impairment losses on trade receivables 12,546 13,205 (Reversal) provision for tax, civil and labor losses net (599) 289 Interest on provision for tax, civil and labor losses 2,251 12,273 Interest and transaction costs on bonds 26,253 24,366 Contractual obligations and right to returned goods (129) 9,293 Interest on accounts payable for business combination 12,867 15,664 Interest on suppliers 10,109 12,500 Share-based payment expense 1,775 2,939 Interest on lease liabilities 2,998 2,113 Interest on marketable securities (4,797) (5,786) Cancellations of right-of-use contracts (8) (1,951) 140,287 195,166 Changes in Trade receivables (8,381) (86,715) Inventories 13,921 7,201 Prepayments (6,137) (4,469) Taxes recoverable (5,230) (11,194) Judicial deposits (4,439) (5,379) Other receivables (37) (675) Related parties – other receivables 5,758 (4,980) Suppliers (40,588) (21,320) Salaries and social charges 19,443 16,540 Tax payable 2,648 11,751 Contractual obligations and deferred income (1,284) 4,199 Other liabilities 10,438 (4,191) Other liabilities - related parties (16,609) 6,412 Cash generated from operating activities 109,788 102,346 Payment of interest on leases (2,938) (2,029) Payment of interest on bonds (16,531) (53,423) Payment of interest on business combinations - (2,590) Payment of provision for tax, civil and labor losses (722) (134) Net cash from operating activities 89,597 44,170 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment (1,462) (8,982) Additions of intangible assets (24,956) (34,776) Proceeds from investment in marketable securities 189,206 275,143 Purchase of investment in marketable securities (319,037) (266,215) Net cash used in investing activities (156,249) (34,830) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of treasury shares - (22,531) Lease liabilities paid (5,535) (4,300) Payments of accounts payable for business combination - (11,159) Net cash used in financing activities (5,535) (37,990) (72,187) (28,650) Cash and cash equivalents at end of period 12,345 67,214 Expand
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30-04-2025
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Why Vasta Platform Limited (VSTA) is Surging in 2025
We recently published a list of . In this article, we are going to take a look at where Vasta Platform Limited (NASDAQ:VSTA) stands against other consumer defensive stocks that are surging in 2025. The stock market has taken a sharp turn after two years of blockbuster gains, and many investors have felt uneasy. These investors are now turning to consumer defensive stocks due to growth stocks sputtering amid a new wave of tariffs rattling global trade. Consumer defensive stocks provide essential goods and services that people rely on regardless of economic conditions and are more insulated during market downturns. Investors have piled into consumer defensive stocks for that reason, and it's a good idea to look into the biggest winners in this sector. Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified Why These 15 Healthcare Stocks Are Surging in 2025 in another article. For this article, I screened the best-performing consumer defensive stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a student working on their laptop in a modern education classroom. Number of Hedge Fund Holders In Q4 2024: 2 Vasta Platform Limited (NASDAQ:VSTA) is a Brazil-based educational technology company that provides digital and end-to-end educational solutions for private K-12 schools. The stock is up significantly so far in 2025, with the main catalyst being growing expectations that the company will achieve profitability this year. Analysts forecast a profit of 59 million Brazilian reals for the year, and the company has narrowed its trailing twelve-month losses to 61 million reals from 84 million reals in the prior fiscal year. A key event was the anticipation and subsequent release of fourth-quarter and full-year 2024 results on March 12, 2025. Vasta is on the verge of turning profitable, and investors are betting on a turnaround despite revenue growth trailing the broader industry. The consensus price target of $3 implies 37.2% downside. Vasta Platform Limited (NASDAQ:VSTA) stock is up 140.50% year-to-date. Overall, VSTA ranks 2nd on our list of consumer defensive stocks that are surging in 2025. While we acknowledge the potential of VSTA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VSTA but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
