Vitru Brasil Empreendimentos Participações e Comércio (VTRU3) Q4 2024 earnings summary

Executive summary

• EAD undergraduate intake grew 13.3% vs. 2H23, with a 10.6% increase in engaged students and a 3.5% YoY rise in the student base.

• Adjusted EBITDA grew 9.8% to R$793.9 million, margin reached 37.1%, and adjusted net income rose 15.1% to R$300.0 million.

• Net revenue increased 9.1% YoY to R$2.14 billion; EAD undergraduate revenue up 7.5%.

• Recurring final cash generation reached R$157.5 million, up 25.7% YoY.

• Migration to B3 Novo Mercado in June 2024 enhanced governance and capital market access.

Financial highlights

• Adjusted gross profit grew 7.1% to R$1.48 billion; gross margin at 69.0% (down 1.3 p.p. YoY).

• SG&A and marketing expenses stable as a percentage of net revenue; PCLD improved by 2.6 p.p. YoY.

• Operating cash flow for 2024 was R$601.4 million, up 22.5% YoY.

• 99.4% of gross debt is long-term; recurring cash conversion improved to 62.3%.

• Adjusted EBITDA margin improved to 37.1% in 2024 from 36.8% in 2023.

Outlook and guidance

• 2024 net revenue guidance: R$2.15–2.25 billion, growth of 10–15% vs. 2023.

• Adjusted EBITDA margin guidance: 36.5–37.5%, compared to 36.6% in 2023.

• Management expects sustainable growth and profitability in 2025, focusing on innovation and operational efficiency.

• Continued investment in hybrid health courses, educational technology, and student base expansion.