Yduqs Participações S.A. (YDUQ3) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to the third quarter call of YDUQS. The presentation will be done by our CEO, Eduardo Parente; and by the CFO, Eduardo Haiama, with the presentation of all the other members of the Board of Directors. We are transmitting this through the RI of the company website, www.yduqs.ri, and we are translating it simultaneously into English. [Operator Instructions] Now this might contain forward-looking statements that are subjected to risks and uncertainties that lead to such expectations to not materialize or substantially differ from expectations. These forecasts express the opinion only of the date they were made, and the company does not undertake to update them in the light of new information. Now the word is with Eduardo Parente, the CEO of YDUQS. Please, the floor is yours.

Thank you, Georgiana. Once again, I would like to thank you all for being here. And I would like to thank you for being here at our earnings call. And I would like to thank all of our employees that allow us to continue with our very, very strong year for results. I will start on Page 3 with our opening remarks, talking about the 4 main key issues here. The solid operations with robust performance in digital learning and medicine. We had levels of growth that we have come in a lot in the pre-pandemic period. The operation is obviously different. A great deal of the students are still in the remote learning -- in the digital learning. And we've had a lot of success there by using our digital content to bring digital content and the lead content to all of our students. Now on site, on-campus, we've seen very big stabilization signs. The ticket is asynchronous, and we are oscillating around what we think is the baseline. And it seems that it's reasonable. And it's still being implemented in the on-campus world. Well, in this quarter, we still had an impact in the revenue. This is very important. I'm talking about the relevant impact with invoices. It's BRL 79 million, the impact on revenue that determines that we lower the price. We talked about this in the last quarter. Even though we recognize that there is a possibility that we are going to try and find it up ahead, we think that the most transparent way that we can work with this is to not treat this as a litigious thing. So we are not accounting these future receivables, if that comes. Now fourth, we have a consistent collection and strong cash generation. We've had an update last night, and we are getting your feedback. This is very important for us. So we're looking at the cash generation and our receivables. Once again, we believe that at the end of the day, it's important for the health of our business, and things that are taking place, of course. And we have a communication room, and I thank you if in the end, we can't talk to all of you. It's a hard quarter, but it has good numbers, if we think about the very challenging environment. Let's go to Page 4. So let's talk about the intake. This is our [ reliability ] that were translated from the previous page to this page. So let's talk about the digital learning. We captured over 50% more students than last year. This is very consistent, and there is an impact in the digital learning. Well, the impact in -- on the campus is the first line that you can see in the table. We had worse numbers than last year, but we need to look at the year-on-year number. And it's very much like last year. It's a strong sign that the market has a trend towards stability. Once the pandemic allows us to go back to "normal" medicine, we grew, we can see here on the table, 21% in regards to year-on-year, and we had over 10% more students. Now let's go to Page 5. Page 5, on the left, we have the student base and the distance learning centers. It's important to see this growth that hasn't happened out of the blue right now. When we express and when we grow more than 30% since 2016, this growth -- this actually shows the consistency of what we do. Up until now, we have 2 things that are very important. The first thing, at the bottom on the left, we have an acceleration in the distance learning centers. And we can see the growth, 241 from third Q '18 to '19 and 636 from '19 to '20. It's a very simple model for the ticket, very easy to be replicated with a good profitability. And we've talked about the stability of last year, and we've invested in quality. We have teachers and professors that are very aligned with the new generation of students. They provide quality learning in the digital environment. And it's also teaching for the on-site. And on the digital learning, and we didn't projected any -- we didn't projected retention rate in any scenario. We've had several analysis showing that there is a boost that is very interesting when we see the quality of life and the quality of learning for the students. And there is an increase of 2 percentage points in this quarter in regards to the previous quarter. Here on the right, we can see the growth here in the CAGR from '16 to '20 of 38%. We have a growth in regards to the previous quarter of over 5%, 136 to 274. Now I'm going to go back to the number of the 38% very shortly. And I have here on Page 6, medicine. And I don't want to repeat myself, but we have a leverage on organic growth. It's the biggest -- it's our second biggest growth lever. We have had a lot of growth from the third quarter of '19 to '20 in the student base, from 4,000 to over 5,000 students. And we have to look at the expected intake. We have to look at the units that are not so mature. For example, Caninde, we're going to start this year, and we're going to have another 50 by the end of -- by the beginning of next year. So that generates next year of a growth of 10% in the number of seats. When I look here at the bottom, the 250 seats that I mentioned, these are the ones that we're going to earn next year besides the 134 seats in the third quarter of '20. And we hope that next year, we will show you the same level of growth or even better in our student base. It's important to remember that we have 2 units that we've just opened, but the rest is organic growth. We have to invest in laboratory. We have to invest in teachers and everything. But it's not a BRL 1 million, BRL 2 million per seat. While using our growth, it is working. Here on the left, we can see a little bit of that. Medicine has been impacted by the discounts that are related to laws and court decisions, and the 12% here in total revenues is the digital learning. So if you add the 26% in the distance learning, we had 26%; in Medicine, 12%, we've had over 40% of our business -- of our revenue actually in 2 businesses that have rates of growth that are very strong and are completely stable regardless of the pandemic. Let's change to Page 7. I believe that now we are continuing the ideas. When we look at the graph on the left, we have -- in dark green, these are the on-campus former FIES students. And we are getting to 21,000 FIES students and a base that will -- of acquisitions that grow year by year. And here, we have a very clear overview that we did 3 acquisitions over the last 12 months, all with the results that are 5x the EBITDA. And this is what we are trying to find. We have to see the potential. And whenever we do M&As, we always take that into account. And this is what we show. We have the 55,000 students that have come to our base from acquisitions over the last 12 months. Some of you did an analysis. I don't remember who submitted it, but the number of students per campus -- and that's showing how this is healthy. 95% of our time, we have an EBITDA level that is very good, very satisfactory as well as the revenue. But this is a very solid operation, and we see that we're getting into new operations through mergers and acquisitions. And here are the things that make sense, really. Here in the middle, we have our renewable base, the former FIES undergraduate students. The number of students that are renewable on the other side without taking into account FIES, it dropped 3% -- 3 percentage points. But the fact that we have more students that are former FIES is something good. It's over 7%, and it shows that we've done something good. And here, that number that I just mentioned there was just Estacio. We have the former laws and the court decisions. We have an increase in ticket. And then there is a reduction, once again. I don't think that we have to celebrate, but this is an indication that everything that we mentioned made sense. We're looking at this with care. We saw that pre-pandemic, and we see the market working as a whole, and there is an effect and a lot of people that cannot reproduce this. I'm going to tell you -- well, Haiama is going to talk to you about the financial data.

Thank you, Parente. Well, good morning, everyone. Let's go to Slide 9. Let's talk about revenue. As Parente has commented in the first slide, we suffered by the quarter because of the court decisions. As a consequence of that, our revenue has grown almost 30%, 27% year-on-year. And even so, if we consider the -- if we remove the acquisitions, we would have grown anyway. One important point showing in the graph, it's the drop in FIES students, not only compensated by the digital learning, but as well, here we can see the adjustment of the revenue adjustment. We have the court decisions and medicine as well as the on-campus, which is stable. On the former slide -- well, on the next slide, 10. We have the cost and expenses that are under control. In terms of costs of former acquisitions, we have dropped 2% from BRL 633 million to BRL 618 million year-on-year. And if we had included acquisitions, this would have grown 26% for a time. And here is an important point. On the contrary of the second semester, where we -- the second quarter where we had a lot of issues with PDD and we have the financial discount that is proportional to revenue, it's very stable year-on-year. This is very important data that has been highlighted in such a way. Then when we look at the Slide 11, the EBITDA, our EBITDA adjusted by the laws and the court decisions, it would have grown 20% without former; without acquisitions, 3% growth. And then this EBITDA, an important point is that maybe it wasn't clear, and this is a point that we have to highlight, when Parente commented the issue of the opening of the revenue and the importance that medicine and digital learning has in the proportion of the revenue in the big sectors that are growing after M&A, the EBITDA reported would have been higher. The adjusted EBITDA would have been higher. So here, we have a growth that if we just consider the EBITDA, it's higher throughout the years. Let's go to Slide 12 in terms of net income and CapEx. Adjusted net income, also adjusted, is stable. And here, it's important to mention the issue of the difference between the revenue that we report today versus the revenue that we have the IFRS 16. IFRS 16, it's a mechanic that you have to bring the rentals. But the way that we are working with it is not perfect. It ends up in the first years of the flow. It brings the penalty to the revenue. So the difference of the rent that we've had in the quarter and what we actually reported as an expense between depreciation and financial expenses just in the quarter is BRL 32 million. So it worsened our income in IFRS. Now on the table on the right, CapEx. And here, more than taking a look at CapEx and what was really the basis, one point that we've already mentioned for some revenues -- or some earnings call is the investment that we are doing for the digital transformation of the company. And just this year, we had over BRL 70 million invested without taking into consideration the digital content that we are creating. This is a transformation that is very important that has taken place since last year, and it will last for another 2 to 3 years, this investment phase. Slide 13, now the collection and cash generation as a whole. As it was mentioned, we understand that our level of provisions is very adequate. When you see it dropped nominally in 3%, if we consider acquisitions, but 2 big assets that you're acquiring, it's normal that this decreases. In regards to the number of days of invoicing, very stable year-on-year because of the acquisitions, the average receivable days. And here, we've generated more operational cash flow before CapEx. In the last year -- or the first 9 months, we generated BRL 751 million here, 9 months on 2020, BRL 909 million and without former -- without acquisitions. And with it, we have over BRL 1.031 billion, very healthy. Cash position with the net EBITDA, that is at 1.41. Last but not least, on my part, on the acquisitions, just to show you the evolution, the synergies up until now in Adtalem, we have captured in an annualized way. When we see the annual rate, we will see here the BRL 170 million, which is against the expected, which is BRL 230 million. And we will incorporate BRL 70 million. And the big generation will be when we receive the authorization for medicine. And we will mature that. And I'm sorry, by the end of -- by May of 2020, we capture BRL 60 million. By the end of the year, we will capture BRL 70 million.

Thank you, Haiama. Let's go to Page 16. This is something that we always knew, and I've never written it down. It shows a little bit more of what I've shown before here. In 2015, half of our revenue was FIES, F-I-E-S. And here in 2020, it's only 10%. When we look at this business as a whole, we have in our revenue in the first 9 months of 2020 35% of medicine, which is something that is very good, and it's been growing 20% per year. And our on-site grows as we expect. What we have here, we have, of course, the court decisions, but we still will have the impact in 2021. And it shows that we have a business here, a set of activities and economic activities that are growing 18% per year from 2015 to 2019, the net revenues former FIES. These are the 2 messages. I think that people make good decisions in the past, in 2016, to choose -- when they chose what would be the business that would substitute FIES. I think that distance learning and medicine have been the 2 things that are generating cash flow revenues that are favorable to allow us to keep capturing synergies so we can continue following up on our business plan. The situation wouldn't be so favorable if we hadn't had chosen these 2 paths. And we see with everything that Haiama have shown, with all the cash flow that we have, we will start next year without that thing that was still dragging us down. This is good. On Page 17, we have here the perspectives. On the short term, it's still a challenging scenario. There is an impact of the laws and court decisions that are not ending now, and that's regarding the PDD in Portuguese, which is the bad debt pressuring the results. And we've done a lot of voluntary actions here. Well, a lot of things are taxes. This is not over, as I've told you. It's something that we will still see in the future. But with digital learning and medicine and strong expansion pace, this is the last year of the impact of FIES. It's a scenario that is challenging. But since the beginning, the situation has imposed itself. When we -- we were very scared the next year. That was going to be the year that we would advance very quickly, and we are not launching this as we expected. But the base has grown. We are getting next year very -- in a very solid pace. We've gone over 6,000 students that study medicine. We have 250 seats that are completely new. We are taking the elite content to the masses. So we have a positive perspective for 2021. And long term, it changes a little bit more. We continue with the three levers: M&A, capturing the synergies and the value generation from recent acquisitions. We need to grow on that. The poles are still growing, the impact of our new poles. We had older poles that are going towards the third, fourth, fifth year, and we are always trying to find good opportunities that makes sense and that will add value to our business as a whole. So this is not something bad. Well, again, we would -- we have money. We have a stable financial situation, the robustness of the business. The cash and the organic growth is very strong, and this is what we have for the future. And I want us to do something very different. We have a team here that we're very proud of our team. And you don't have the opportunity of interacting with them. We did that last year. The vibe that day, that was very nice. And this year, we couldn't do it because of the pandemic. So maybe we are going to do it next year, and then you will have the opportunity of talking to everyone. But I wanted Adriano to talk to you a little bit more, he is the on-site operations on all those digital operations, well, about the perspectives of the businesses and what they think for the future.

Thank you, Eduardo. Well, good morning. Let me start talking to you about something that Eduardo has already talked about. That has to do about the new business model. Aura is -- in essence, is formed with completely optimized CVs. Aura has a proposal for the increasing our KPIs for the quality of medicine, not only internal, but also external. We also believe in that because the new teaching model joins the system of digital content that is excellent quality, as it was said before. It's the in-house content, as Haiama has said, the methodology of the teaching that is a national standard for all of our units and also teachers that are ready for distance learning. We are capturing now almost 8,000 teachers in this new teaching methodology, and this is the new model that is great. Today, over 6,000 classes being offered completely in this model that service more than 100,000 students. Basically, all of our students that started in 2020 and not only with the brand Estacio but also the brands that were acquired. As we verified it, there is an increase in the satisfaction of our students. We are still not able to measure because we've just implemented this model for improving teaching, but the indicators of satisfaction have been considerable. Obviously, it was a series of initiatives that we've taken in the company as a whole. But our indicator of quality, NPS, has reached the best historical data in the history of the company. And the most important thing is that the big impact of these indicators are from the first year students, where we improved over 40%, the indicator of NPS over this year, which increases the durability and the time that the students remain with us. And it shows that we are going down the right path. On my part, this is it. Thank you very much. Now Araujo.

Good morning. Thank you. Let me talk about a project where we've taken a very important step. It's our project for the poles, the partner poles, but it's a standardization that seeks to have an operation that is healthy for the poles and a better service for the students. It's a project that has a reduction in costs, but it's much more than that. We start to have a full control of the planning -- of the profitability of defaults, and we have an internal consultancy area that we've just created with these poles or distance learning centers. And here, we want them to have a healthy financial life throughout our expansion. And this has 2 main objectives. Now we have an increase in bases. Here, we have the number of centers and that we keep expanding faster and faster. With this model for the centers, we have a lighter operation, and we have -- we help our partners more and more. And in a different situation, maybe we couldn't work with the distance learning center. This is continuous, and we've taken a very good step this year. We let the operations more streamlined, and we believe that we are going to get to the 2,000 distance learning centers that we projected in the past, in the next year even. This is a very important project for us for the continuity of our growth, as [ Eduardo said ].

Thank you, Araujo. Now I'm going to talk about the perspective for medicine and Ibmec. We can see that there is a very important impact. As Eduardo had said, we've had a big potential for growth for the base in an organic growth. A lot of our operations are still taking place. So if we consider the 1,400 seats that we have authorized, we can -- throughout the year, we can almost double this with the operations -- authorization for the Mais Medicos. We can also increase this base. We have a very experienced team with the operation of medicine for enabling new seats, and we've had a lot of success with the new operations. And it brings us a lot of trust. We are really on track, and we will deliver the program that we're presenting to you. And we will make the revenue grow a lot in the next years. Medicine is very resilient throughout the pandemic. We've had a good commercial. We've fulfilled 600 seats. It was performance that was above what we expected. Renewal was higher, slightly higher than the previous quarter. So as a whole, it was a very strong performance. All of that creation of YDUQS of a new area -- new operations is very aligned with the focus on the students, and we've talked about that with a commitment with the experience of the students. So we can have a higher education solution for our audiences. You saw that we had the court orders, and I think that medicine was a segment that was very impacted. And we had a lot of proximity with the students. We want to treat the students in a differentiated way, taking care of them and strengthening our position not only for medicine, but others, for example, Ibmec. And in the case of Ibmec, we've had a very positive result. Sao Paulo is an operation that runs very well. So it's maturing, and it's growing strong. Belo Horizonte is very strong, and Rio de Janeiro is a place that we have to take care. And we are strengthening the operation. So we can finally start to work with the operations. We've brought people that have experience to make this happen. In general, these are very positive results. And we believe that these will be fundamental for the future growth.

[Operator Instructions] Our first question is from Peev dos Santos from JPMorgan.

First, I wanted to talk about the point that Adriano has said about the new academic model that was completely optimized. You have the 40% of distance learning that is allowed for the campus. And I know that we are in a pandemic. So people are not spending a lot of time in the classes. But as you are gaining margins and people are going back to class, would you review the ticket? Can you comment that -- well, that 40% was the distance learning. This is the first question. Second question is the admission exam given the pandemic, and how would you work with ENEM exam here as well?

Marcelo, thank you. In regards to the Aura CV, we've had a 40% that is allowed, 40% is distance. And not only that, we have the optimization for the minimum time and practical activities and the context as a whole. And it's important, in Estacio, we've operated in a very optimized way. But in the acquired units, no, this becomes a big -- very big lever for capturing synergies. And we can -- in the middle of the year, at the turn of the quarter, all the units that are widened, we would lead to the capturing of the synergies. And we expect that the operations here will have an improvement in the imagery with the advancement in the student base. In regards to the second point, which is vestibular and the ENEM exam, the admission exam, in Portuguese, it's vestibular, the test is something that we are taking a lot of attention. And we've had a lot of initiatives to see what would be the delay in the ENEM exam so we can capture the enrollment before the process of the ENEM test. And we hope that this is going to be -- well, we're expecting this to be a little bit later than the previous years.

Our next question comes from Mr. Leandro from Citibank.

Well, the first, if you can talk a little bit more about the strategy of questioning the legality of the discounts. How is it progressing? And what do you expect as an impact for the next years -- for the next month, actually? Will this decrease with time? That would be the first question. And the second one, and here is the comment with the new CV, do you see an opportunity of doing an adjustment with the structure at the end of the year, mainly for teachers? If you can tell us a little bit more how you met this, I think it would be -- that would be it.

[indiscernible], do you want to work with the first one?

Considering the impact has been in Rio de Janeiro by PROCON and the public [ defensorship ], we are working with PROCON to try and find an agreement. We're expecting to resolve this at the short term in closing this dispute in the judicial context. We've talked about competencies at the regional and federal level, and we hope that we have a better direction in regards to this issue. Well, I'm going to go to the second part. I think that the phase of the big adjustments was left behind. We still have some big adjustments in regards to performance. Everything that is better for the student, for teachers. Obviously, when we look at the past, we will have the synergies that we need to capture. Well, what we are always talking about SKUs, SKUs, SKUs, and we see the margins of operations of our partners. And we will take the actions in regards to all the evaluations that will take place in this sense if, at any time, we realize that there is any specific drop in courts or the capture of the student base. Well, in a structural way, we don't see a lot of changes. But if we have any type of offerings, any type of SKUs, we will see a drop in the base of students. I don't know if I'm answering the question correctly.

No. Yes. Just one more point in regards to the discount. When this issue comes back, when the court order is dropped, there might be a point of friction. How are you preparing the return of these judicial disputes in the future?

Well, we don't believe -- well, we will try and discuss, if required, once again. We will analyze on a case by case either of the specific points. And up ahead, there is a big impact in medicine. We have a relevant discount in a very high ticket. It's a very big impact for us. We don't see a point of friction up in the future.

The next question comes from Mr. Samuel from BTG Pactual.

These are 2 very important points. First, a very detailed question. While we have the announcement of the pro forma, we see here -- I wanted to understand a little bit more and just to have a little bit more granularity on the numbers. And the question is about the price of the distance learning. You have a strong strategy for growth in the distance learning. And you commented that we are going to get to 2,000 centers, almost 1,500 centers. Well, do you think that the business already -- have we reached the bottom of the price of the monthly ticket?

If you see the main line that we have here, it's in the part of contingency, which is normal. It's just that, in general, this was stable. We look at expenses in the company in regards to the year-on-year, the year before. And the issue of pandemic, in terms of cost, it's almost nothing. This is -- the main costs that we had was on the increase of the bad debt. But all of them are oscillating very little. There isn't any specific effect. Well, we can talk about this later.

Araujo here. You talked about the prices. What we see is that we saw the competition drop in the price. In the previous period, we didn't see a lot of changes, but we can see a drop, this slide right here. What we do is in the trade-off in the base of the ticket, we maximize the revenue, given that this is -- the capturing cost is not that high. We signaled the trade-off, and we have to take into consideration that our margin is much higher than a big deal of the competition for an unlisted company. So given our margin, we can work with the drop in prices that the competition is doing.

Our next question is from Freddie Mendes from Bradesco.

Well, I believe that this is more specific in the cost part. In working with the centers, it tripled. I understand that with the distance learning, this is increasing. Is there anything else that we didn't capture here? And the second thing, also working with the discounts and the court decisions, the value for the discounts has increased more than the net revenue. So I just wanted to understand how is the strategy from the future. Of course, this is a specific moment. But how is the strategy of the company in regards to this?

I'm going to answer this very good. Well, talking about the -- Page 4, we've seen the growth with the partner centers. Remember, we started with our own centers, and now we're working in the smaller and medium cities with the partner centers. This growth is coming from a partner, and you have sharing the profits, of course. And just to complement here, we haven't increased those numbers. There is an issue of mix. And what we work with about the operational model is that we are trying to reduce the cost of the center so that we don't increase the values that we are working. Working with a core structure is important. Haiama?

Can you repeat the second question?

Sure. I think that the second one is more understanding when I look at the discounts and the scholarship where the court, court decisions, yes.

Well, this, what happens here? We were analyzing the quarter. And when we looked at our ticket increasing, I think it's very nice. We're finally getting to what would be at the bottom of the well for the on-site, and we are expecting -- and here, the details of the results to our big capture, we had an intake that was very interesting of SKUs of higher tickets as well as in the capture, which is where we can get the biggest value of scholarship in the first semester. When you look at the average scholarship, it's not -- it gets diluted, but it was a good surprise. We capture students from courses that, in fact, we have higher tickets. And their scores appear a little bit higher in the first semester.

The next question is from Mr. Vinicius Ribeiro from UBS.

Two questions, a little bit simpler. Well, you commented about the investments in medicine so we can improve the experience of the students. But I wanted to know if in the margins, have you seen an improvement in the ticket for the incoming students? Or this is going to be something for the future? And a little bit about the consolidation process that we are discussing. Obviously, you followed up on that. But the capital allocation, does it make sense for us to see an expected change when we think about your M&A strategy? Or do you have a position that is more privileged in the on-site and also distance learning? And can you comment on those 2 points? And does that change -- how do you see these 2 dynamics, the opportunities for M&A with the bankruptcy that we see in the market?

Regards to medicine, in fact, we see that and we are really focusing in the students and the experience of the students. We've had the opportunity of readjustment, the ticket for the first year. And once again, that happened in the middle of the year. I think that there is a journey for the improvement of that experience, and we will continue to get the profit in the future. Let me continue. Sorry I was on mute. The issue of medicine, we had an increase in the ticket that is very relevant. Obviously, we had to open a -- we launched the campus on Tuesday. And 3 days later, we had the lockdown declared here in Rio de Janeiro. And we have to be closer to students in medicine. We have to hear the students so we can have a productive environment. But we clearly see that there is a movement for the increase of the ticket. And this is completely within the projections that we've done. The M&A strategy, and just to be very clear, we would like to keep expanding with this offering, that we didn't find that it was very aggressive. That was done very responsibly. We want to work to get to an EBITDA that is good and that we think that is responsible. And the offering that was done was based on [ med ]. We lost through the competition. It was very aggressive. We didn't want to lose that, but it happens. Obviously, it's a bad feeling because it's a very traditional company, very good. And we had the opportunity to do a good growth. We talked about the -- well, this wouldn't be an easy acquisition, but we would have liked to have done it.

Okay. There is 4 or 5 M&As in the pipeline. Any idea as to return? You talk about the bankruptcy. There are companies that are difficult. There is increase in the working hours, and these will show up ahead. Would you like to add anything else just to complement?

Well, talking a little bit more broadly about M&A, what is important? What Parente was commenting about the process, all the processes that will take place, of course, we price with all of our levers. Well, this growth that you see in the distance learning that is growing organically, 40%, we grow with what makes sense as well as with the operational proficiency, Aura, and everything that we are developing. From the competitive standpoint, to take a look at M&A, we are still going strong. We have levers that are very strong in the part of the value. Obviously, it will be a case-by-case scenario. And these are markets that probably, given the liabilities -- well, we will absorb the students, and we will have to generate the liability that cannot be managed. And we believe that we are very competitive, everything that we have to add.

Because of the time, we are closing the Q&A., and I would like to give the word to Mr. Eduardo Parente for the final considerations.

Okay. We have a fantastic team that has a lot of discipline. Sometimes, we seem to repeat ourselves with medicine and distance learning and M&A, but this is it. We have a plan. We're sticking to the plan, and we have a lot of organic growth. And we are really working, and the operation is growing a lot. It's a very challenging year. Next year, well, maybe this is not what we dreamed about. But certainly, this is a year that we still look in a very positive perspective. Of course, we've learned a lot with the pandemic. I think that the learnings remain: new products and new ways of taking -- teaching to our students. Thank you for your trust, and I bid you farewell.

The teleconference of YDUQS is closed. Thank you for your participation. Have a wonderful day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]