Arco Platform Ltd (NASDAQ:ARCE) Q2 2023 Earnings Conference Call August 31, 2023 5:00 PM ET Company Participants Roberto Otero - CFO Ari de Sá Cavalcante Neto - Founder, CEO & Director Conference Call Participants Mauricio Cepeda - Credit Suisse Operator Good afternoon, everyone. Thank you for standing by, and welcome to Arco Platform Second Quarter 2023 Earnings Call. This event is being recorded and all participants will be in a listen-only mode during the company's presentation. [Operator Instructions] T ...

Arco Platform Ltd (NASDAQ:ARCE) Q1 2023 Earnings Conference Call May 25, 2023 5:00 PM ET Company Participants Robert Otero - CFO Ari de Sa Cavalcante Neto - Founder, CEO & Director Conference Call Participants Lucca Marquezini - Itaú BBA Lucas Nagano - Morgan Stanley Pedro Caravina - Crédit Suisse Operator Good afternoon, everyone. Thank you for standing by, and welcome to Arco Platform First Quarter 2023 Earnings Call. This event is being recorded. [Operator Instructions]. This event is also being broadcas ...

Arco Platform Limited (NASDAQ:ARCE) Q4 2022 Earnings Conference Call March 30, 2023 5:00 PM ET Company Participants Carina Carreira – Investor Relations Director Ari de Sa Cavalcante Neto – Chief Executive Officer Roberto Otero – Chief Financial Officer Conference Call Participants Lucca Marquezini – Itau BBA Marcelo Santos – JP Morgan Javier Martinez – Morgan Stanley Mauricio Cepeda – Credit Suisse Yan Cesquim – BTG Pactual Operator Good afternoon, everyone, and thank you for standing by, and welcome to Ar ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . OR ☐ SHELL COMPANY REPORT PURSUANT TO SE ...

Revenue Growth - Arco reported a 44% increase in revenues for 2022, totaling R$1,775 million, and a 50% increase in adjusted EBITDA to R$648 million[1][2] - For Q4 2022, net revenue was R$679.3 million, a 47.4% YoY increase, with Core solutions at R$447.0 million (+39.1% YoY) and Supplemental solutions at R$232.3 million (+66.4% YoY)[3][5] - Revenue for the twelve months ended December 2022 was R$1,775,427 thousand, up from R$1,232,074 thousand in the previous year, marking an increase of approximately 44.2%[38] - Net revenue for the three-month period ended December 2022 was R$679,331 thousand, a 47.4% increase from R$460,834 thousand in the same period of 2021[43] EBITDA and Profitability - Adjusted EBITDA for Q4 2022 was R$353.2 million, reflecting a 57.4% YoY growth, with an adjusted EBITDA margin of 52.0%[11] - Adjusted EBITDA for the three-month period ended December 2022 was R$353,190 thousand, representing a margin of 47.1%, compared to R$224,403 thousand and a margin of 46.3% in the same period of 2021[42] - Total revenue for the twelve months ended December 2022 was R$1,775,427 thousand, with an adjusted EBITDA margin of 32.3%, up from 26.3% in the previous year[42] - Free cash flow for the three-month period ended December 2022 was (R$142,140) thousand, an improvement from (R$256,950) thousand in the same period of 2021[47] Expenses and Costs - General and administrative expenses decreased to R$68.5 million in Q4 2022, representing 10.1% of net revenue, down from 15.2% in Q4 2021[9] - Selling expenses in Q4 2022 totaled R$148.5 million, a 27.4% YoY increase, driven by higher investments in commercial activities[8] - Cash gross margin for Q4 2022 was 78.1%, down from 83.8% in Q4 2021, impacted by increased costs in the supply chain[7] - The total depreciation and amortization for the twelve months ended December 2022 was R$277,458 thousand, compared to R$194,885 thousand in the previous year[40] Assets and Liabilities - Total intangible assets decreased by 0.6% to R$3,184.0 million compared to R$3,257.4 million in the previous year[13] - Total current liabilities increased from R$1,393,211 thousand in December 2021 to R$1,533,589 thousand in December 2022, an increase of approximately 10.1%[37] - Non-current liabilities decreased from R$2,721,674 thousand in December 2021 to R$2,322,389 thousand in December 2022, a reduction of about 14.7%[37] - Cash and cash equivalents increased slightly from R$211,143 thousand in December 2021 to R$216,360 thousand in December 2022, an increase of about 2%[36] Cash Flow - Cash from operations for 4Q22 was -R$42.8 million, an improvement from -R$138.4 million in 4Q21, while for the full year 2022, it was R$341.3 million compared to R$138.2 million in 2021[16] - Cash from operations for the twelve months ended December 2022 was R$341,269 thousand, a significant increase from R$138,166 thousand in the previous year[40] - The company reported a cash from operations of R$341,378 thousand for the three-month period ended December 2022, compared to R$206,290 thousand in the same period of 2021[45] Student Metrics and Market Position - The annual ACV for 2023 is confirmed at R$1,930 million, representing a 24% YoY growth, serving 8,000 schools and over 2.6 million students[2][11] - The number of students served increased by 15% to 2.6 million for the 2023 school year, with a 33% increase in students approved for universities through SISU[21] - Retention rates remained consistent, with a 3 percentage point increase in the number of Core students using at least one Supplemental content solution, rising to 18% from approximately 15% in the previous year[19] Tax and Corporate Structure - The effective tax rate for 2022 was 13.1%, down from 17.8% in 2021, with ongoing corporate restructuring expected to capture additional tax benefits[12] - The effective current income tax rate for the twelve-month period ended December 2022 was 34.0%[49] Intangible Assets and Goodwill - The amortization of intangible assets in Q4 2022 was R$97.6 million, reflecting a 35.6% increase year-over-year[14] - Goodwill remained stable at R$1,950.9 million, unchanged from the previous quarter[13] - Customer relationships intangible assets decreased by 3.8% to R$237.0 million compared to R$274.7 million in the previous year[13] - The amortization of goodwill increased by 76.7% to R$56.4 million in Q4 2022 compared to R$32.0 million in Q4 2021[14] ESG and Social Impact - Arco's 2022 ESG report highlighted a 423% increase in the number of students impacted by the Arco Institute[21]

Arco Platform Limited (NASDAQ:ARCE) Q3 2022 Earnings Conference Call December 1, 2022 5:00 PM ET Company Participants Carina Carreira - Director, IR Ari de Sa Cavalcante Neto - CEO Roberto Otero - CFO Conference Call Participants Vitor Tomita - Goldman Sachs Lucca Marquezini - Itau BBA Fred Mendes - Bank of America Javier Martinez - Morgan Stanley Operator Good afternoon, everyone. Thank you for standing by, and welcome to Arco Platform’s Third Quarter 2022 Earnings Call. This event is being recorded and al ...