| Market Capitalization (Millions $) |
63 |
| Shares
Outstanding (Millions) |
7 |
| Employees |
1,322 |
| Revenues (TTM) (Millions $) |
373 |
| Net Income (TTM) (Millions $) |
21 |
| Cash Flow (TTM) (Millions $) |
9 |
| Capital Exp. (TTM) (Millions $) |
10 |
Vitru Ltd
Their mission is to democratize access to education in Brazil through a digital ecosystem and empower every student to create their own success story. Postsecondary education students in Brazil face various challenges, such as high tuition fees with limited financing alternatives, long commutes, lack of access to continuously available study resources, teachers, tutors and materials that fail to engage them, and poor support and student experience.
They believe that the future of postsecondary education involves a combination of quality, engagement, flexibility, affordability, technology and innovation. By incorporating all these elements into their value proposition, they not only provide an unparalleled hybrid learning experience for students in their academic journey but also help them increase their professional opportunities, which translates into higher employability levels and wages.
Their business offers a complete pedagogical system focused on a hybrid digital education experience for undergraduates and continuing education students. They offer courses in more than 300 subjects through their Virtual Learning Environment (VLE), which are delivered in multiple formats (videos, eBooks, podcasts, and html text, among others). They have developed over 11.4 terabytes of digital content and approximately 2,413 hours of educational videos to serve as online course materials.
Their education platform also includes in-person weekly meetings hosted by their tutors who are mostly local working professionals in the subject area they teach. They have over 3,000 tutors who were hired and trained by them to ensure they meet their quality requirements. They believe that this unique tutor-centered learning experience sets them apart, creating a stronger sense of community and belonging and contributing to higher engagement and retention rates of their students.
Their digital education centers or "hubs" are the core of their system, which offer in-person tutoring, supported by virtual mentoring. They operate their hubs mainly through joint operations in a scalable partnership model based on symbiotic, financially aligned, and self-reinforcing relationships with their hub partners, who manage day-to-day operations and financial planning.
Approximately 86.6% of their hubs are managed by hub partners, and they have built and maintained strong relationships with their 275 hub partners, who play a key role in their growth strategy. They have one of the largest nationwide digital education footprints in Brazil, driven by an asset-light, highly scalable, and profitable business model that is resilient through macroeconomic cycles.
Their revenue is primarily driven by tuition fees charged for digital education undergraduate courses. Although they focus on undergraduate digital education courses, they also offer digital continuing education and certain on-campus undergraduate courses. They operate mainly through joint operations in a scalable partnership model with strong cash flow generation. Their hub partners are remunerated by their respective share represented by a given percentage over the tuition fee collected by them from students.
The total amount to be transferred to the hub partners on a monthly basis is derived from the pricing terms agreed upon with each student on the service contract. This percentage is similar across all their partnership agreements and varies in accordance with the type of course the student is enrolled in, which are higher for continuing education courses and lower for undergraduate courses. In addition, this percentage is higher in the beginning of the hubs' operations and decreases throughout their life cycle, thus reducing their payback period and increasing the attractiveness of their investment. Therefore, as hubs mature, they should experience an increase in their gross revenue (higher than the increase in tuition fees in the same period) as a result of lower tuition share allocated to their hub partners.
Company Address: Rodovia José Carlos Daux, 5500, Torre Jurer? A Florianópolis 88032
Company Phone Number: 3281-9500 Stock Exchange / Ticker: NASDAQ VTRU
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