Ânima (ANIM3) Q3 2024 earnings summary

Executive summary

• Transition to a new CEO and organizational structure was completed smoothly, emphasizing continuity, disciplined execution, and sustainable growth through the "Third Wave" strategy.

• Achieved solid financial results in 3Q24, with net revenue for 9M24 at R$2,906.0 million (+2.8% YoY) and 3Q24 stable at R$938.3 million.

• Adjusted EBITDA ex-IFRS16 grew 12.2% in 3Q24 and 19.1% in 9M24, with margin expansion for the 11th consecutive quarter.

• Adjusted net income reached R$49.0 million in 3Q24 and R$178.2 million in 9M24, the highest for the period.

• Strategic focus on revenue quality over student volume led to improved margins, lower delinquency, and reduced dropout rates.

Financial highlights

• Leverage reduced to 2.71x in 3Q24, down from 3.41x in 3Q23, with net debt reduced by R$361.4 million over the last three quarters.

• Adjusted EBITDA for 3Q24 was R$264.8 million, with margin reaching 28.2% (+3.1p.p. YoY).

• Cash generation in 3Q24 was R$328.5 million, with year-to-date cash generation at R$778 million.

• R$178 million in dividends paid in 3Q24; R$65 million paid to Inspirali minority shareholders.

• Net revenue in 3Q24 was R$938.3 million, nearly flat YoY.

Outlook and guidance

• Management expects continued margin expansion, profitability, and robust cash generation, focusing on sustainable growth and operational efficiency.

• Strategic priorities include strengthening academic education, expanding digital and continuing education, and unlocking new business opportunities.

• Prepared for seasonality in Q4, with an expected temporary increase in net debt due to holidays and 13th salary payments.