Arco Platform Ltd. (ARCE) Reports Q1 EPS of R$0.20 on Revenues of R$331.7M

Arco Platform Ltd. (NASDAQ: ARCE) reported Q1 EPS of R$0.20, versus R$0.07 reported last year. Revenue for the quarter came in at R$331.7 million, versus R$261.58 million reported last year.

First Quarter 2021 Results

• Net revenue of R$331.7 million;
• Gross profit of R$244.5 million;
• Adjusted EBITDA of R$118.4 million;
• Adjusted net income of R$61.1 million;

“We delivered solid operating results in the first quarter of 2021 and we are encouraged by the early results from our sales cycle for the 2022 school year, as we once again benefit from industry-leading results from our partner schools at the national exam (ENEM) and continue to improve our platform and innovate. We are also excited with the initial results from our redesigned cross-sell initiative, which will help further accelerate the sale of supplemental products and leverage the scale of our Core segment. We note, however, that the COVID-19 pandemic is not yet fully behind us. We see risk of revenue recognition in 2021 to be slightly below the initially contracted values, as schools faced lower-than-expected enrollments, mostly concentrated in pre-K and kindergarten. We are hopeful that the environment for the education sector will improve, mostly from 2H21 onwards, as vaccination progresses in the country. As we look ahead, we are more than ever focused and excited with the outlook for our business and the value we can generate to our clients through our solutions. We are accelerating our product development pipeline, which may soon expand our revenue capture possibilities, particularly with our recent entry into the B2C segment in Brazil, which is an important step in that direction,” said Ari de Sá Neto, CEO and founder of Arco.

For earnings history and earnings-related data on Arco Platform Ltd. (ARCE) click here.

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