The following is a summary of the Vitru Limited (VTRU) Q1 2024 Earnings Call Transcript:
Financial Performance:
Vitru Limited reported a 13.5% increase in Q1 2024 consolidated net revenue, primarily driven by significant expansion in the continuing education and medicine sectors.
The earnings for their long-distance graduation saw a 10% increase, and the average ticket for distance learning graduation increased by 3.4% compared to Q1 2023.
Despite reporting a modest growth of 1% in adjusted EBITDA, the margin saw a decrease to 33.9% for this quarter. The expected EBITDA margin for 2024, however, will be slightly higher than the previous year.
The company had strong cash flow growth this quarter, with cash conversion reaching 104.6%, compared to the same period in the previous year.
Impacted by an update in cost expectations, net profit saw a rise in financial expenses by approximately 25 million.
Business Progress:
The company showed a 6% growth in its student base from Q1 2023 and reported a record 940,000 overall total students.
Vitru advanced significantly with the NASDAQ to B3 de-listing process, with this move being approved in a general shareholder meeting.
The company was recognized as one of the top five EdTechs globally by two major U.S. outlets, and ranked fifth on Time Magazine's ranking of top edtech companies in the world.
Increased efforts in standardizing student activation criteria were emphasized, leading to better representation of engaged students.
The company expanded to over 700 cities with its two brands, with both the medicine and continuing education sectors reporting revenue increases of 30% and 46% respectively.
The company performed strongly in terms of enrolment in 2023, which is projected to impact English ADA for Q1 2024. But a downward trend is anticipated throughout 2024 and 2025 due to a harmonization in student activation criteria.
More details: Vitru IR
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