Vitru Limited
Q1 2021 Earnings Call Transcript

Published:

  • Operator:
    Good evening, ladies and gentlemen. And welcome to Vitru's First Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct the question-and-answer session and instructions will follow at that time. As a reminder, this call will be recorded. I would now like to introduce your host for today's conference call, Carlos Freitas, Vitru's CFO. You may begin.
  • Carlos Freitas:
    Thank you, operator. And good afternoon, everyone. Thanks for joining us. It's a real pleasure to be here with you all for the release of our results for the first quarter of the year. Hope all of you are doing well and healthy. Here with me is Maria Carolina Gonçalves, the Head of our Investor Relations Department. And a slide presentation will be part of today's webcast, which is also available in our Investor Relations website at investors.vitru.com.pr. So, I hope you all have this presentation in front of you. And, of course, before we begin, I like just to make note that everything in the second slide of this presentation, Safe Harbor is in effect for this call.
  • Operator:
    Thank you. And our first question comes from Vitor Tomita with Goldman Sachs. Your line is open.
  • Vitor Tomita:
    Hello, good afternoon, and thanks for taking our questions. So we have two questions on our side; and the first one is, if you could elaborate a bit more on competition dynamic during this kind of thrash of intake process? And our second question is, if you do you believe Flex Course will be in the long-term, say, five years from now, as a percentage of your revenue or student base? Thank you.
  • Carlos Freitas:
    Starting with the first question; the competition dynamics in the first quarter. I guess that with the delay in the ENEM, everybody had to complete a bit stronger this quarter than in a normal quarter, I would say. And then, I think it's very important piece in the overall enrollment calendar. So this quarter, there was in the -- in the first half of the intaking cycle I'd say, the expected environment, especially in January and February, then -- and March, April and May, I'd say it was more normal. So with that, we had a very competitive scenario and we were able to deliver a nice growth. But I guess it was slightly stronger in the first most of this intaking cycle because of the delay of the overhead to -- say to fight bit stronger . And for the second question, the Flex Course potential, I mean, we -- I think I heard you that the potential we can have in Flex Courses in the future. We have in Brazil around 800 cities, for example, that are between 20,000 and 40,000 people that we could enter with our Flex Course, for example. So they would typically focus on cities that are bigger than 40,000 people in total population. So, the Flex Course has a important potential to expand with this growth and deferred growth . I don't have here a number to say what would be the target for Flex Courses but this is clearly an important driver, as well, just for our growth potential going forward. And with that we can now consider -- we can reach every corner of Brazil.
  • Vitor Tomita:
    Perfect Thank you very much.
  • Operator:
    Thank you. I would now like to turn the call back over to Carlos Freitas.
  • Carlos Freitas:
    Well, we have here a question from Pedro from BTG. He was here -- he is making two questions. First one, what is the ideal level of PDA looking forward? The PDA is, as I said, it's very higher around -- within the newcomers intake, and much lower with seniors. So, that ideal level of PDA is something very tricky, very, very dangerous. I mean, if we stopped growing next quarter, for example, if we don't have any intake, our PDA would be very smaller in the second half of this year. So, it would depend on the growth that we have. What we expect to see is that given the nature of our growth and this number here we had at 16%, at last year it was around 14%; so it slowly declined overtime as we have more seniors in our student base compared to new commerce. So, this will -- that as an overall intake in the middle term, we shall have a PDA level of around I'd say, 9% to 10% within the three, four, five years because we are going to keep growing a lot our student base. If we stopped growing, PDA would have been smaller than that. The second one; the second question of Pedro is, what is our expectations for the next intake cycle? It is I'd say very strong, we have been already preparing ourselves for the next intaking cycle. It will, of course, depend on how the pandemic evolves in Brazil because we -- it is a fact that the hubs closed affect our intake cycle. But even with that we had 32% growth this quarter -- this semester, and 40% growth in the second semester of last year, which was within the middle of the pandemic; so we have a very strong prospect for the second half of this year as well.
  • Operator:
    I'm not showing any questions at this time. I would now like to turn the call back over to Carlos Freitas for closing remarks.
  • Carlos Freitas:
    Thank you. So, I guess we were able, again, to deliver nice numbers. And myself, Carol and whole IR Team, we are at your disposal to solve any other questions. Thank you very much.
  • Operator:
    This concludes today's conference call. Thank you for participating. You may now disconnect.

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