Ser Educacional (SEER3) Q4 2024 earnings summary

Executive summary

• Achieved strong double-digit growth in adjusted EBITDA and net operating cash generation, with adjusted EBITDA up 18.3% to R$122.5 million and net operating cash up 206.4% year-over-year, enabling a 9.3% reduction in net debt and resumption of dividend payments after three years.

• Adjusted net income surged 101.3% to R$36.3 million in 4Q24, with margin expansion and improved leverage.

• Operational optimization since 2022 has driven sustainable results, including margin expansion, improved cash flow, and reduced financial leverage for the eighth consecutive quarter.

• Significant expansion in student base, especially in hybrid and health-related courses, with hybrid undergraduate intake up 16.7% and digital undergraduate intake up 9.2% year-over-year.

• Dividend of R$19.6 million (R$0.15 per share) approved for May 2025, pending shareholder approval.

Financial highlights

• Net revenue rose 8.7% year-over-year to R$523.8 million in 4Q24; full-year revenue up 8.2%.

• Adjusted EBITDA increased 18.3% to R$122.5 million in 4Q24; margin expanded 1.9 p.p. to 23.4%.

• Adjusted net income surged 101.3% to R$36.3 million in 4Q24; adjusted net margin up to 6.9%.

• Net operating cash generation jumped 206.4% to R$50.1 million in 4Q24.

• Net debt reduced by 9.3% to R$718.5 million; net debt/adjusted EBITDA improved from 2.17x to 1.64x.

Outlook and guidance

• Entering 2025 with a larger number of medical student places, expected to be a key driver of future results.

• Strategic focus on expanding medical schools and health-related courses, with disciplined expansion in high-demand areas and participation in Mais Médicos.

• Continued focus on operational efficiency, cash generation, and further debt reduction, with plans for greater dividend distribution from 2026.

• Ongoing operational optimization and portfolio reshaping to drive future growth and margin expansion.

• New cycle of growth anticipated, supported by increased medical seats and new unit openings.