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Vasta Platform (VSTA)
NASDAQ:VSTA
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Vasta Platform
(NASDAQ:VSTA)
62Neutral
Vasta Platform (VSTA) vs. S&P 500 (SPY)
Market Cap
$265.37M
Dividend YieldN/A
Average Volume (3M)15.64K
Price to Earnings (P/E)―
Beta (1Y)-0.77
Revenue Growth7.00%
EPS Growth26.40%
CountryUS
Employees2,012
SectorTechnology
Sector Strength45
IndustryEducation
Share Statistics
EPS (TTM)-0.13
Shares Outstanding15,735,635
10 Day Avg. Volume10,240
30 Day Avg. Volume15,637
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.02
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.80Price Target Upside-13.31% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering0
Vasta Platform Business Overview & Revenue Model
Company DescriptionVasta Platform (VSTA) is an educational company operating in the Brazilian market, primarily focusing on providing educational content and technology solutions to private schools. It offers a comprehensive platform that integrates content, digital solutions, and services designed to enhance the learning experience and improve the operational efficiency of educational institutions.
How the Company Makes MoneyVasta Platform generates revenue through a subscription-based model where private schools pay for access to its educational content and technology solutions. The company's key revenue streams include licensing fees for its digital content and educational materials, as well as fees for its technology services that help schools manage their operations more efficiently. Significant partnerships with educational institutions and a broad network of private schools contribute to its earnings by providing a consistent and scalable customer base.
Vasta Platform Financial Statement Overview
Summary
Vasta Platform demonstrates solid revenue growth and a stable balance sheet. However, persistent net income losses and cash flow volatility highlight areas needing attention. The company shows potential for improvement, particularly in achieving profitability and stabilizing cash flows.Income Statement
Vasta Platform's revenue shows a solid growth trajectory, with a notable increase from previous years, highlighted by a recent uptick in TTM (Trailing-Twelve-Months) revenue. The gross profit margin has improved, indicating effective cost management. However, the net profit margin remains negative, highlighting ongoing profitability challenges. While EBIT and EBITDA margins show a stable performance, the company needs to focus on achieving positive net income.65
Positive
Balance Sheet
The balance sheet reveals a healthy equity position with a strong equity ratio, suggesting financial stability. The debt-to-equity ratio is manageable, indicating controlled leverage. However, stockholders' equity has slightly declined, which could be a concern if the trend continues. The company maintains a substantial asset base, supporting its operations effectively.70
Positive
Cash Flow
Operating cash flow remains positive, indicating good operational efficiency. However, free cash flow growth has been volatile, which could impact future investments and financial flexibility. The cash flow ratios suggest a need for better alignment between cash flow generation and net income. Overall, the cash flow statement reflects a mixed performance with areas for improvement.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.53B | 1.49B | 1.26B | 947.42M | 997.60M | 989.68M | Gross Profit |
| 981.89M | 915.37M | 791.14M | 550.59M | 619.60M | 542.63M | EBIT |
| 230.93M | 189.36M | 210.54M | -2.93M | 48.40M | 82.45M | EBITDA |
| 494.33M | 459.99M | 423.49M | 163.07M | 201.54M | 249.55M | Net Income Common Stockholders |
| -60.87M | -83.77M | -54.57M | -118.75M | -45.60M | -60.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 102.23M | 341.81M | 426.28M | 476.24M | 802.30M | 43.29M | Total Assets |
| 0.00 | 7.40B | 7.52B | 7.33B | 6.98B | 6.17B | Total Debt |
| 0.00 | 1.15B | 1.14B | 991.77M | 987.50M | 1.82B | Net Debt |
| 102.23M | 1.06B | 1.09B | 681.88M | 676.30M | 1.78B | Total Liabilities |
| 0.00 | 2.88B | 2.89B | 2.67B | 2.19B | 3.07B | Stockholders Equity |
| 3.27B | 4.52B | 4.63B | 4.67B | 4.79B | 3.10B |
| Cash Flow | Free Cash Flow | ||||
| 69.32M | 92.02M | 26.47M | -96.83M | 156.66M | -43.04M | Operating Cash Flow |
| 205.86M | 218.85M | 174.97M | -20.04M | 201.10M | 7.23M | Investing Cash Flow |
| -105.21M | 44.69M | -396.09M | 88.47M | -541.78M | -50.27M | Financing Cash Flow |
| -111.25M | -213.44M | -43.01M | -69.69M | 608.55M | -15.91M |
Vasta Platform Technical Analysis
Positive
3.23
Price Trends
2.69
Positive
2.56
Positive
2.73
Positive
Market Momentum
0.16
Negative
76.06
Negative
88.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTA, the sentiment is Positive. The current price of 3.23 is above the 20-day moving average (MA) of 2.96, above the 50-day MA of 2.69, and above the 200-day MA of 2.73, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 76.06 is Negative, neither overbought nor oversold. The STOCH value of 88.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSTA.
Vasta Platform Risk Analysis
Vasta Platform disclosed 91 risk factors in its most recent earnings report. Vasta Platform reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vasta Platform Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.26B | 20.19 | 22.95% | ― | 13.13% | 56.75% | |
75 Outperform | $1.39B | 26.30 | 21.41% | ― | 14.70% | 275.89% | |
71 Outperform | $10.87B | 20.41 | 10.97% | 1.77% | -5.51% | 27.79% | |
68 Neutral | $1.12B | ― | -13.11% | ― | 9.27% | 34.66% | |
62 Neutral | $265.37M | ― | -1.17% | ― | 7.00% | 26.40% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
47 Neutral | $84.09M | ― | -147.16% | ― | -13.78% | -5297.96% |
* Technology Sector Average
Performance Comparison
VSTA
Vasta Platform
3.31
-0.59
-15.13%
LRN
Stride
119.54
57.72
93.37%
PSO
Pearson
16.45
3.69
28.92%
UTI
Universal Technical Institute
26.77
11.60
76.47%
CHGG
Chegg
0.77
-7.25
-90.40%
COUR
Coursera
7.03
-7.59
-51.92%
Vasta Platform Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: 19.63% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including strong subscription revenue growth, improved profitability, and successful strategic initiatives such as Start Anglo and AI integration. However, challenges were noted in the B2G segment with no revenue generation, as well as declines in quarterly net revenue and EBITDA. Despite these issues, the overall momentum and strategic growth avenues suggest a positive outlook.Highlights
Strong Sales Cycle Performance
The 2024 sales cycle saw subscription net revenue growth of 12.5%, reaching BRL 1.358 billion, with a 6% net revenue growth over the last cycle. Complementary solutions grew by 21%.
Profitability and Efficiency Gains
Adjusted EBITDA increased by 9% to BRL 449 million, with an adjusted EBITDA margin of 29.4%, up from the previous year due to premium product expansion and cost savings.
Successful Launch of New Growth Avenues
The Start Anglo initiative gained traction with 34 signed contracts and over 200 prospects. Additionally, the Liceu Complex revitalization project is underway, with plans for 5 new units in 2025.
Exceptional SAEB Results in Pará
Vasta's solutions contributed to a significant improvement in the state of Pará's national ranking, moving from 26th to 6th place, with high school student scores increasing by 43%.
AI Integration in Educational Platform
Plurall AI integration is set to be available in all schools by 2025, enhancing educational processes with generative AI capabilities.
Lowlights
Revenue Decline in B2G Segment
No revenue was generated from the B2G segment in the third quarter due to postponed contracts, impacting overall revenue figures.
Decrease in Quarterly Net Revenue
Third quarter net revenue decreased by 14.6% year-over-year, reaching BRL 220 million, with non-subscription revenue dropping 36%.
Decrease in Adjusted EBITDA for Q3
Adjusted EBITDA for the third quarter decreased by 45% to BRL 21 million, primarily due to lower revenue from the B2G segment.
Slight Increase in Net Debt
Vasta's net debt position increased by BRL 42 million year-over-year, mainly due to financial interest costs and a repurchase program.
Company Guidance
In the third quarter of 2024, Vasta Platform reported a subscription net revenue growth of 12.5%, reaching BRL 1.358 billion, and a 6% increase in net revenue compared to the previous sales cycle. The company's adjusted EBITDA rose by 9% to BRL 449 million, with an improved margin of 29.4%. Free cash flow for the 2024 sales cycle was stable at BRL 146 million, slightly up from BRL 145 million in 2023. Despite a 14.6% year-on-year decrease in total net revenue for the quarter, primarily due to a drop in non-subscription revenue by 36%, the annual contract value for the sales cycle matched the subscription net revenue growth of 12.5%. The company's strategic focus on premium products and operating efficiency contributed to these results, while ongoing initiatives, such as the Plurall platform and Start Anglo franchise expansion, are expected to bolster future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.