Arco Platform, an educational software company that offers technology, services and content from kindergarten to high school, has announced a first-quarter 2021 net profit of 11.8 million reais (£1.6 million), compared to net profit of 3.8 million reais reported for the first quarter of 2020.
Net revenue at the São Paulo-based company for the quarter was 331.7 million reais, up from 261.6 million reais reported for Q1 2020.
Arco founder and chief executive Ari de Sá Cavalcante Neto said: We delivered solid operating results in the first quarter of 2021 and we are encouraged by the early results from our sales cycle for the 2022 school year, as we once again benefit from industry-leading results from our partner schools at the national exam and continue to improve our platform and innovate. We are also excited with the initial results from our redesigned cross-sell initiative, which will help further accelerate the sale of supplemental products and leverage the scale of our core segment.
“We note, however, that the Covid-19 pandemic is not yet fully behind us. We see risk of revenue recognition in 2021 to be slightly below the initially contracted values, as schools faced lower-than-expected enrolments, mostly concentrated in pre-K and kindergarten. We are hopeful that the environment for the education sector will improve, mostly from the second half of 2021 onwards, as vaccination progresses in the country. As we look ahead, we are more than ever focused and excited with the outlook for our business and the value we can generate to our clients through our solutions.
“We are accelerating our product development pipeline, which may soon expand our revenue capture possibilities, particularly with our recent entry into the B2C segment in Brazil, which is an important step in that direction.”
Date published: 26 May 2021