Arco Platform Ltd. Stock Price, News & Analysis

Arco Platform Limited (Nasdaq: ARCE) will report its fourth quarter and fiscal year 2022 results after the market closes on March 30, 2023. The results will cover the period ending December 31, 2022. A related conference call is scheduled for 5 p.m. Eastern Time on the same day, where investors can join via phone or a webcast. An audio replay will be available until April 5, 2023. Arco uses a data-driven learning methodology to enhance students' educational experiences, supporting numerous learners throughout Brazil.

Arco Platform Limited (Nasdaq: ARCE) announced the formation of a special committee to evaluate a non-binding acquisition proposal from General Atlantic and Dragoneer Investment Group. This committee, consisting of four independent directors, will assess the offer for Class A common shares not held by the proposers or affiliates. Financial and legal advisors have been retained to assist in the evaluation. The board cautioned shareholders that no decisions have been made and that there are no guarantees of a definitive offer or agreement. The Company does not commit to future updates regarding this matter.

Arco Platform Limited (NASDAQ: ARCE) reported a strong financial performance for the third quarter of 2022, concluding the cycle with R$1,561 million in net revenue, a 34% organic growth compared to 2021. Key achievements include:

• Adjusted EBITDA of R$526 million, up 58.3% YoY.
• Cash gross margin increased to 80%.
• Free cash flow surged by 253.5% YoY to R$55.7 million.
• Projected 2023 ACV guidance of R$1,930 million, indicating a potential 24% organic growth.

Despite challenges like rising selling expenses and adjustments in administrative costs, the company showed significant operational efficiency improvements.

On November 30, 2022, Arco Platform Limited (Nasdaq: ARCE) received a preliminary non-binding acquisition proposal from General Atlantic L.P. and Dragoneer Investment Group, LLC. The offer is to buy outstanding Class A common shares at US$11.00 each, representing a 22% premium over the current price of US$9.04. The Founders support this transaction and intend to roll over their shares. However, the company cautions that no final decision has been made and there are no guarantees the deal will materialize.

Arco Platform Limited (NASDAQ: ARCE) has signed a Purchase Agreement to acquire 75.1% of INCO Limited (d/b/a isaac), enhancing its position in Brazil's education ecosystem. With this acquisition, Arco aims to become the world’s largest operating system for schools, expanding its product portfolio and increasing its market reach significantly. The deal, valued at 2.7x EV/ARR, will include 10.4 million shares of Arco, resulting in an approximate 14.2% dilution for current shareholders. The transaction is expected to close within the 2022 fiscal year.

Arco Platform Limited (Nasdaq: ARCE) reported a robust financial performance for Q2 2022, achieving R$412.1 million in net revenue, marking a significant 61% YoY increase. The growth was driven by the resumption of in-person classes and increased orders of ACV bookings, with 83.2% of the 2022 ACV already recognized. However, gross margin decreased to 67.7% from 73.4% YoY due to higher operational costs. Adjusted EBITDA increased to R$110.7 million, while adjusted net income was recorded as a loss of R$23.2 million. Arco’s cash position remains strong, with R$753.9 million in cash and equivalents as of June 30, 2022.

Arco Platform Limited (Nasdaq: ARCE) announced the issuance of 1,200,000 non-convertible debentures, amounting to R$1.2 billion (~US$230 million) for public distribution in Brazil. This move aims to strengthen the company's cash position and extend its debt maturity profile by using proceeds to prepay earlier issued debentures totaling R$1 billion. The new debentures mature on August 3, 2027, with interest rates pegged at 100% of the CDI plus 2.30% per annum, payable semi-annually. This is a strategic part of Arco’s balance sheet management.

Arco Platform Limited (Nasdaq: ARCE) will announce its second quarter 2022 financial results on August 18, 2022, after market closing. A conference call and webcast will follow at 5 p.m. Eastern Time. Investors can join the call by calling +1 (412) 717-9627, +1 (844) 204-8942, or +55 (11) 4090-1621. The call will also be available for replay until August 24, 2022, using access code 1608874#. Live and archived audio can be found on the Company’s Investor Relations website.

Arco Platform Limited (Nasdaq: ARCE) reported a robust first quarter of 2022, showcasing net revenues of R$430.0 million, a 30% increase year-over-year. Adjusted EBITDA reached R$146.7 million, with a margin of 34.1%. The company anticipates a total ACV of R$1,560 million for 2022 with adjusted EBITDA margins between 36.5% and 38.5%. Strong demand from Brazilian schools has driven additional bookings, contributing to a projected 65.8% ACV recognition rate. Operating profit remained healthy despite a slight drop in gross margin to 72.9% due to recent acquisitions.