Vasta announces 2022 ACV Bookings of R$ 1 billion, a 35% year over year growth
February 10 2022 - 5:43PM
Vasta Platform Limited, or Vasta (Nasdaq: VSTA) announces today
that it has concluded the 2022 commercial cycle with an Annual
Contract Value Bookings (the “ACV Bookings”) of R$1,000 million,
which represents a 35% increase in comparison to the subscription
revenue for the 2021 commercial cycle, calculated from October 2020
through September 2021 (the “2021 Subscription Revenue”). Excluding
Plataforma de Ensino Eleva, or “Eleva”), the 2022 ACV Bookings
represents a 22% increase in comparison to the 2021 Subscription
Revenue.
From 2019 to 2022, Vasta delivered a 20% average
growth in ACV Bookings, resulting from the combination of (i) the
maturity of the go-to-market process, (ii) the quality of the
components of Vasta’s multibrand portfolio and (iii) the strength
of the company’s digital platform, Plurall, which continued to be
the leader in terms of K-12 traffic in Brazil in supporting K-12
schools in the process of digital transformation and adaptation to
hybrid education. We believe that Vasta is well positioned to
resume its growth trajectory in consolidated revenue in the 2022
fiscal year.
ACV Bookings in complementary solutions again
exhibited the highest growth rate among Vasta’s business segments
with a 47% increase in comparison to the 2021 Subscription Revenue,
demonstrating the strong cross-selling potential offered by its
large core content client base. ACV Bookings in traditional
learning systems (including newly launched Textbook as a Service
platform, but excluding Eleva) grew 31% in comparison to the 2021
Subscription Revenue, driven by the intake of new clients, price
adjustments and our focus on converting former PAR learning system
clients to clients in the traditional learning system segment.
Consistent with this strategy, PAR paper-based ACV decreased 29% in
comparison to the 2021 Subscription Revenue. Finally, Eleva
delivered ACV of R$ 98 million, contributing 13 percentage points
to Vasta’s consolidated 2022 ACV growth.
Values in R$ Million |
|
2022 ACV |
|
2021 Subscription
Revenue(1) |
|
% Y/Y |
|
Traditional Learning Systems |
|
720 |
|
551 |
|
30.6% |
|
Complementary Solutions |
|
92 |
|
63 |
|
46.8% |
|
PAR
paper-based |
|
91 |
|
127 |
|
-28.7% |
|
Organic ACV |
|
902 |
|
741 |
|
21.8% |
|
Eleva |
|
98 |
|
- |
|
n.m. |
|
Total ACV |
|
1,000 |
|
741 |
|
35.0% |
|
n.m.: not meaningful. (1) Revenue from
subscription products collected from October 2020 to September
2021.
About Vasta (Nasdaq: VSTA)
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
ir.vastaplatform.com.
Investor Relations Contact
Investor Relationsri@somoseducacao.com.br
Forward-Looking Statements
This press release contains forward-looking
statements that can be identified by the use of forward-looking
words such as “believe,” “expect” and “should,” 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.
ACV Bookings
ACV Bookings 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
36-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 the period between October 2021 and
September 2022 may be different from the ACV Bookings for the 2022
sales cycle.
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