Vasta Platform Limited (NASDAQ:VSTA) Q2 2023 Earnings Call Transcript

Page 2 of 2

This is the new running rate that we have for the company. We have more cost pressure on the cog side. And prices for next cycle we expect to recover those points above inflation because we definitely face it will be a cost-based price adjustment due to the cost that you can see that we had on our P&L.

Operator: [Operator Instructions] Your next question comes from the line of Marcelo Santos from JP Morgan. Please go ahead. Your line is open.

Marcelo Santos: Hi. Thanks for the follow-up. I have two extra questions. The first, given that you’re following all these public tenders that are going on, could you give us an idea like of — like for all the tenders that are open now, what is the total value that is on the table. I believe this should be public information, but we don’t have this information. So it would be very interesting if you could give us some number on how much is being offered to the market right now on all the tenders that you could participate or any information in that regard? And the second question is, you had some large nonrecurring M&A effects on your P&L this quarter. Could you give some color on those?

Guilherme Melega: Sure, Marcelo. Let me try to provide. And this will help us to expand a little bit our approach to the B2G sector. There are no public tenders open right now, at least that we are aware of. What we do is pretty much identify the opportunity to the channels that we have with the State and by tailoring the solutions, we generate the demand and then the public offer occurs. So it’s a tailored solution, it’s a different approach from selling standard products to the public sector. So we generate the demand, identify and tailor the demand using our current portfolio. So it’s a low CapEx solution because we leverage on what we have and we identify the specific need of a State or a large municipality. So I have no figure to share with you because we are generating the demand.

And once the demand is generated, it will become a public offering, and we will participate, okay? The second one is regarding M&A. Yes, we have the recognition of an earn-out. It’s a onetime event regarding complementary solutions that we acquired in the past that went really well. And we recognize the last payment this quarter is a one-off payment. There is nothing else expected in the future.

Lucas Nagano: Perfect. It’s very clear. And thanks for the explanation on you go to market approach. Very interesting.

Operator: And we have no further questions in the queue at this time. Marcelo, I will turn the call back over to you.

Marcelo Werneck: Thank you all for participating on Vasta’s Q2 earnings call. We believe our cycle-to-date results demonstrate the consistency of our strategy, combining growth and capital expenditure discipline. We are also very positive about 2024 ACV campaign and about the good start of the B2G business. Looking forward to seeing you on the next call. Have a great quarter. Thank you.

Operator: And this concludes today’s conference, and you may now disconnect.

Follow Vasta Platform Ltd (NASDAQ:VSTA)

Page 2 of 2