Arco Platform, an educational software company that offers technology, services and content from kindergarten to high school, has announced a second-quarter 2021 net profit of 20 million reais (£2.7 million), compared to net profit of 16.2 million reais reported for the second quarter of 2020.
Net revenue for the quarter was 256.3 million reais, up from 234.9 million reais reported for Q2 2020.
The São Paulo-based company also reported results for the first six months of 2021. Its net profit for the period was 8.2 million reais, down from 20.1 million reais reported for the first six months of last year. Revenue for the half-year was 588 million reais, up from 496.4 million reais reported for the first half of 2020.
Arco founder and chief executive Ari de Sá Cavalcante Neto said: “Operating results for the second quarter still reflect the challenges imposed by the Covid-19 in the sector and the schools’ operations. Despite the revenue seasonality and the higher investments in product and sales force impacting our margins this quarter, we reaffirm our margin guidance for 2021. The sales cycle for the 2022 school year continues strong, with year-to-date organic growth pace for our core legacy solutions multiple times ahead of 2020 and in-line with 2019 levels and renewal rates following historical trends. As for the supplemental business, year-to-date data points to an acceleration versus last cycle but a two-step recovery to pre-pandemic growth pace, while renewal rates are, at this point, much stronger versus 2020.”
Date published: 24 August 2021