In This Article:
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Net Revenue: BRL841 million for Q3 2024, a 16% increase year over year.
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Adjusted EBITDA: BRL348 million for Q3 2024, a 25% increase year over year, with a margin of 41.4%.
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Adjusted Net Income: BRL165 million for Q3 2024, a 29% increase year over year.
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Adjusted EPS: BRL1.79 for Q3 2024, a 30% increase year over year.
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Cash Flow from Operating Activities: BRL1.168 billion for the nine-month period, a 25% increase year over year.
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Medical Students: Over 24,000, a 12% increase year over year.
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Medical Practice Solutions Revenue: BRL117 million for the nine-month period, a 15% increase year over year.
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Continuing Education Revenue: BRL188 million for the nine-month period, a 10.4% increase year over year.
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Net Debt: BRL1,894 million as of Q3 2024, stable compared to the end of 2023.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Afya Ltd (NASDAQ:AFYA) reported a net revenue growth of over 16% year over year, reaching BRL841 million.
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Adjusted EBITDA grew by 25% year over year, with a margin of 41.4%.
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The company achieved a record cash flow from operating activities, ending the nine-month period with BRL1.168 billion, a 25% increase from the previous year.
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Afya Ltd (NASDAQ:AFYA) successfully completed the acquisition of Unidom, adding 300 medical seats and strengthening its presence in Salvador.
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The medical practice solutions segment saw a 15% increase in net revenue year over year, driven by strong B2B and B2P engagements.
Negative Points
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The number of monthly active users in the digital services segment declined by 4% this quarter.
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There was a deceleration in net revenue growth for the continuing education segment this quarter.
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The competitive environment remains challenging, with increased competition potentially impacting future tuition increases.
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The transition from the PEBMED Portal to the Afya portal led to a decrease in monthly active users.
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Financial leverage remains a concern, although it has decreased, the company continues to focus on managing its debt levels.
Q & A Highlights
Q: Can you comment on the M&A environment and how you see it unfolding, especially with the increase in approved medical seats? A: Luis Andre Blanco, CFO: The increase in approved medical seats has expanded our pipeline of potential targets. This creates a more favorable market for us, potentially leading to lower multiples in future deals compared to our recent acquisition of Unidom. We focus on institutions highly concentrated in medicine.