Vitru Brasil Empreendimentos Participações e Comércio (VTRU3) Q2 2024 earnings summary

Executive summary

• Surpassed 940,000 students, with 90.6%–97.6% in digital/undergraduate distance learning, confirming brand strength and innovation, and received MIT Technology Review and MetaRed TIC 2024 awards.

• Completed migration from Nasdaq to B3's Novo Mercado, reflecting high corporate governance standards and transparency.

• Continued expansion of hubs, especially in the Southeast, supporting growth strategy and national presence.

Financial highlights

• Consolidated net revenue increased by 10.6% year-over-year in Q2 2024, reaching R$576.7M; 1H24 net revenue was R$1.08B, up 11.9%.

• Adjusted EBITDA grew 22.1%–22.2% year-over-year, with margin improving to 43.9%.

• Adjusted net income for Q2 2024 was R$104.3M–R$104.4M, down year-over-year due to higher financial expenses and deferred tax impacts.

• Provision for doubtful accounts decreased by 27% in Q2, now at 10% of net revenue.

• Adjusted operating cash flow for 1H24 was R$322.8M, with 83.8% conversion.

Outlook and guidance

• 2024 net revenue guidance: R$2.15–2.25B, a decrease of 10–15% vs. 2023 due to harmonization of student activation criteria.

• Adjusted EBITDA margin expected between 36.5% and 37.5%, similar to 2023.

• Targeting the opening of 100–150 new hubs in 2024, with double-digit intake growth expected, though slightly lower than 2023.