Good afternoon, everyone. Thank you for standing by, and welcome to Arco Platform conference call. This event is being recorded, and all participants will be in a listen-only mode during the company's presentation. After Arco's remarks, there will be a question-and-answer session. At that time, further instruction will be given. Should any participant need assistance during this call, please press star zero to reach the operator. This event is also being broadcast live via webcast and may be accessed through Arco's website at https://investor.arcoplatform.com/ where the presentation is also available. Now I will turn the conference over to Carina Carreira, Arco's IR director. Carina, you may begin your presentation. Thank you. I'm pleased to welcome you to Arco's conference call. With me on the call today, we have Arco's CEO, Ari de Sá Cavalcante Neto, and Arco's CFO, Roberto Otero. During today's presentation, our executives will make certain forward-looking statements. Forward-looking statements generally relate to future events or future financial or operating performance and involve known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual results to differ materially from those contemplated or implied by these forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements related to our business and financial performance, our expectations and guidance for future periods, our expectations regarding strategic product initiatives and their related benefits, and our expectations regarding the market. These risks include those set forth in the documents that we issued earlier today. The forward-looking statements in this presentation are based on the information available to us as of the date hereof. You should not rely on them as predictions of future events, and we disclaim any obligation to update any forward-looking statements except as required by law. In addition, management may reference non-IFRS financial measures on this call. The non-IFRS financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with IFRS. Let me now turn the call over to Ari, Arco's CEO. Thank you, Carina. Thanks, everyone, for joining today's conference call, especially on such short notice. We are very excited to announce the acquisition of isaac, the provider of an all-in-one platform that offers financial and software products to K-12 schools. Isaac is a pioneer in education fintech with a strong product market fit. The company reached BRL 188 million in annual recurring revenue and 850 schools in less than two years of operation. Isaac has an attractive business model with high LTV to CAC and contribution IRR and is expected to reach EBITDA breakeven in early 2024. It is important to highlight that isaac comes with BRL 245 million in a net cash position and can self-fund its operation with no need for additional capital. This acquisition strengthens our purpose of bringing innovation to K-12 schools and is a fundamental step toward creating the world's largest operating system for schools. It leads to an immediate increase of BRL 8 billion in Arco's total addressable market, with further room for TAM expansion as isaac develops new solutions. Isaac will experience even faster growth thanks to Arco's extensive school network and cross-sell expertise. Arco can grow isaac 10 times only within its ecosystem of partner schools, unlocking up a potential of BRL 1.7 billion of additional revenues through cross-sell. Additionally, isaac brings on board a top-notch team with over 200 people in product, technology, and data science that will complement and foster our innovative culture. I will now turn the call to Otero, who will continue the presentation. Otero, please go ahead. Thank you, Ari, and good evening, everyone. Thank you for your time. On slide four, we present the transaction details. Arco Platform Limited is acquiring 75.1% of isaac through a 100% stock deal, leading to 100% ownership, as Arco already had 24.9% of isaac before this acquisition. Isaac shareholders will receive approximately 10.4 million shares of Arco, equivalent to 15.8% of Arco's equity interest post-deal. Considering the annualized recurring revenue for the month of August, the transaction multiple is 2.7x EV divided by ARR. When looking at the expected sales for 2023, the multiple is 1.6x. Of the 10.4 million shares that will be delivered to isaac shareholders, 1 million are Arco treasury shares and 9.4 million are newly issued Arco shares, translating into 14.2% dilution for current Arco shareholders. Isaac founding shareholders will be subject to a lock-up period of three years. Isaac will become an operating unit of Arco Platform and will continue to be led by its CEO, David Peixoto. Finally, the transaction is subject to customary closing conditions, including receipt of regulatory approvals in Brazil, and we expect the closing to take place still this year. Moving to Slide 6. Isaac has been one of the most successful startups of the last two years in Latin America for its impressive growth, innovative business model, best-in-class team, and long-term ambitions. Isaac was founded in August 2020 to address K-12 schools' overarching needs with software and financial solutions. It has already reached over BRL 188 million of annual recurring revenue, having grown 10% per month on average in the last 12 months. Isaac currently serves over 850 schools in Brazil and transacts over BRL 2 billion in yearly TPV of 280,000 students. In Slide 7, we explain why isaac has managed to reach such a relevant client base in such a short period of time. The startup's accelerated growth pace is a direct consequence of a strong product market fit in an underserved market. Schools were so eager for a solution like isaac's that adoption was immediate. Isaac serves schools all over Brazil, being present in all 27 states of the country and in more than 200 cities. Aside from the blue ocean market opportunity, sales motion can also be explained by the structural go-to-market advantages isaac has encountered. First, isaac's product and benefits are discussed directly with the school owner, who has the final say on the adoption decision. Having a single stakeholder making the final decision accelerates the sales process and eases conversion, quickly resulting in a go, no-go decision. After adoption, isaac onboards other school employees who will also interact with their platform and team on a daily basis. Second, isaac's product is mandatory for all students of all grades. Unlike most B2B2C SaaS product, 100% of our school students are onboarded since day one, and all tuition is transacted by isaac. This results in sizable contracts with average revenue per school of BRL 220,000. It also allows isaac to grow as schools grow its student base or increase average tuition. Third, isaac's sales process has no seasonality. The company has managed to sell all year long, as the product implementation does not depend on the academic year. Fourth, isaac's product has no geographic exclusivity, as schools are not bothered if other schools in the same neighborhood also adopt isaac. In fact, isaac's clients refer the product to their fellow school owners and want to make the entire ecosystem better off. Finally, isaac can serve all school profiles, having clients of all sizes in its base from schools with as little as 100 students to key accounts with more than 2,000. Moving to slide 8 and taking a step back, the K-12 private market in Brazil is like retail 30 years ago. Most schools use obsolete and low-performance administrative routines, processes and tools, and have low access to funding. Brazilian schools are mostly small and mid-sized businesses, often created by teachers who take on administration despite limited managerial skills and training. A focus on pedagogy lies at the core of schools' leadership, but financial and operational management generates stress and dominate time allocation. Schools' administrators spend more than 70% of their time on billing and collection, managing fire drills, and coordinating teams. Legacy systems offer no help. Schools manage operations with pen and paper or in legacy ERP systems. Billing is mostly offline through paper invoices. Collections are unstructured and laborious, leading to friction with parents, delinquency, and payment delays. Schools struggle with past due bills. School tuition is paid in an initial down payment, the enrollment fee, plus 12 monthly installments. As per the Brazilian law, schools cannot cancel enrollment from delinquent families during the academic year, which incentivizes payment delays. This creates a dynamic where schools face a cash mismatch during the year, having a hard time paying their expenses, let alone thinking about investments in their buildings or teaching materials. Funding is scarce and expensive. Since schools lack financial controls and have such a low financial information quality, they're only offered the most expensive, if any, credit lines, which typically require tons of work, guarantees, and multiple visits to a local branch. Between filling paperwork, keeping sound documentation, and maintaining finances, a lot must be done to keep a school running smoothly. The combination of all factors mentioned previously creates an unpredictable cash flow scenario for schools. Schools are predominantly fixed cost business and should have a quasi-recurring revenue profile. This cash flow instability prevents schools from meeting their financial obligations and making investments, such as expanding operations, improving infrastructure, or upgrading to modern IT systems. Moving to Slide 9. Isaac is solving these problems by bringing together payment and financial services through integrated software. Isaac's first offering, the revenue guarantee, streamlines billing and collection for schools while eliminating financial risk for schools and providing a smooth payment experience for parents. Parents pay tuition installments directly to isaac, who in turn makes fixed guaranteed monthly payouts to schools, even if some parents default, charging a take rate for it. Isaac undertakes schools' collection activities, absorbing the operational complexity while providing schools with cash flow predictability and time savings, allowing them to focus on education. For parents, isaac provides a better payment experience through flexible payment methods and an online experience. The company currently offers payment in boletos or bank slips, Pix, debit, and credit card. Parents also have access to a self-service portal to check their monthly balances and a high-quality support center with extended service hours. Delinquency is very limited, thanks to favorable sector conditions. Although parents eventually delay monthly payments, most do not default because otherwise they would not be able to re-enroll their children in the following academic year. Education is a top spending priority in Brazil, and migrating to the public system is barely an option families consider given teaching quality disparity versus private schools. Isaac has conducted a 20-year sector study with hundreds of K-12 schools' payments to validate the sector delays and repayment behavior. Isaac portfolio performance over 2021 and 2022 supports observed behavior in historical data that parents indeed delay, but most do not default. Isaac non-performing loans for 2022 are in line with what was projected by its proprietary data models and is now trending in a lower level compared to 2021. As we discussed, schools suffer significantly with delays in payments, and the revenue guarantee has been a wedge for the company to start offering more products to the sector. As we can see in Slide 10, isaac is building a comprehensive platform to power financial and software solutions within the education ecosystem. With their portfolio of solutions, isaac is making administration straightforward for schools of all sizes so they can focus their energy on their core objective, educating. Embedding financial products beyond payments directly into isaac's vertical software leads to seamless customer experience, stickier solutions, significant data advantages, and ultimately better margins on fintech-like offerings. On the B2B side, isaac's goal is to help schools grow and be better businesses. The company combines the school's data sources into all-in-one solution, consolidating front and back-office products into a single software interface. Isaac already guarantees the school's revenue while offering payment solutions, including at the counter, point of sale and managing invoices and collection processes. At the same time, isaac platform provides the schools with full visibility and analytics of monthly and future payouts and collection behavior. For isaac's perspective, the revenue guarantee bundle works as a foundational step for a long roadmap of products. It puts isaac in a strategic position as it allows them to consolidate a proprietary data lake and aggregate customer insights that have enormous value to guide product evolution and drive the upsell of new solutions within isaac's all-in-one platform. There are great signs that this strategy of expanding within schools' workflows actually works. For instance, schools already use isaac software to conduct the school enrollment process, which is the most important moment for schools in the academic cycle, and to send out communications to parents daily. Isaac has built a great foundation that positions the company to continue increasing the pool of solutions within its platform. The company is already working on the next products that will help compose its all-in-one platform positioning. Similarly, on the B2C side, isaac started by offering a digital billing and payment experience to parents, combined with a solution to intermediate communication between schools and families. This initial offering creates frequent interactions with families, average of three interactions per month, creating a powerful opportunity for the distribution of new products. As the backbone of isaac platform, isaac is building a robust microservices platform that enables the company to completely reap the benefits of its multi-product strategy. Also, on top of their common platforms, isaac has been building a partner ecosystem from the start so schools can access specialized solutions for everything they might need through a fully integrated API experience with isaac platform. Finally, in Slide 11, we show why isaac's current products and future ambitions culminate in attractive economics. As mentioned previously, isaac has a take rate model, taking up a percentage of school's total revenue, as once adopted, the revenue guarantee is mandatory for all students, driving large contracts when compared to traditional SMB SaaS businesses. Isaac has software-like recurring revenues. First, schools in Brazil are paying monthly installments, which creates subscription-like revenue predictability intra-year. Second, basic education consists of a twelve-year long cycle, so the great majority of students re-enroll at the same school from one year to the following, which explains predictability over the years. In addition to that, as mentioned before, delinquency is structurally very low as parents that eventually delay monthly tuitions during the year tend not to default, as schools have the right to block next year re-enrollments from delinquent students. Isaac has the characteristics of a highly scalable platform business. The technology investments isaac is making in its software solutions and billing, payments, and collection infrastructure are diluted over time as client base grows with little incremental costs. Isaac has an efficient value creation motion, which distribution efforts benefited by sector dynamics, low churn rates, and sustainable margin levels that yield over 15 times LTV to CAC ratio. Unlike traditional credit businesses, isaac's business model requires low capital commitment as school payouts are monthly while collection piles up in a predictable way, with a significant amount being recovered through repayments by the time of re-enrollment. This efficient capital dynamic leads to attractive unlevered contribution IRR levels surpassing 90%. Isaac grows as schools grow, having reached a 107% net revenue retention thanks to low logo churn, larger student cohorts, and school's ability to mark up tuition higher than inflation year-over-year. I will now turn the call back to Ari. Ari, please go ahead. Thanks, Otero. Running a school is no easy task. The pedagogical content and approach are usually what first come to mind, but school owners and principals need to go way beyond what is being taught inside the classroom. They need to run a business. As shown on Slide 13, that includes taking care of all employees, dealing with students and parents, attracting and retaining students, structuring and running all cash in, cash out, and cash management routines, watching for the school infrastructure, among other relevant tasks. It is very clear to us that quality schools are made of a combination of education and management. Arco was already present on the education side of the equation, offering a wide portfolio of high-quality pedagogical-related solutions that help schools to thrive. Now, with isaac, we will complement our offering, making administration easy for schools of all sizes and creating the world's largest operating system for schools. Isaac's acquisition was the natural path for Arco. We are both founder-led companies that attracted entrepreneurial management teams with aligned vision and passion for education. Besides sharing the purpose of empowering students and schools across the country to achieve better outcomes. In August 2020, right after David Peixoto and Ricardo Sales founded isaac, earlier the same year, we made our initial investment in isaac's seed round. We continued to increase conviction in isaac's business case as they evolved the business, and six months later, in February 2021, we participated in its Series A capital increase, and now we're very excited to be acquiring the remaining share capital to own 100% of is aac. Moving to slide 16, we present the main pillars behind the strategic rationale of this acquisition. First one, detailed on Slide 17, relates to the expansion of Arco's portfolio of solutions offered to our partner schools. Isaac adds a new vertical with a strong growth rate, having increased its ARR more than 100% year-over-year. Second, on Slide 18, isaac massively increases Arco's total addressable market. The private K-12 market in Brazil presents today a total payment volume related only to tuition of more than BRL 88 billion, which translates to an 8 billion TAM only considering the solutions already offered by isaac. Isaac has less than 2.5% in market share and much room to grow. Furthermore, as isaac evolves its platform and launch new solutions, we expect further expansion to this TAM. Third pillar on Slide 19 refers to the power of cross-sell within our school base. Today, only 2% of Arco's partner school base use isaac's revenue guarantee solution. As we include isaac in our cross-sell engine, we will be able to unlock a potential of BRL 1.7 billion only within Arco's base. That not to mention the potential to do the reverse cross-sell by selling Arco's pedagogical solutions within isaac's client base, as today, only 20% of isaac schools adopt an Arco pedagogical solution. Isaac's revenue guarantee solution has a ticket per student that is larger than Arco's core average ticket and can therefore more than double our revenue per student in a partner school that adopts only a core solution or almost double our revenue per student in a school that adopts a core and one supplemental solution. Moving to Slide 20, the combination of Arco and isaac potentializes isaac's profitable unit economics and accelerates its path to profitability as its business gains scale. As a result of the cross-selling initiatives mentioned in the previous slide, we expect isaac's top line to grow between 80% and 90% in 2023 to BRL 300 million-BRL 350 million and to reach between BRL 1 billion and BRL 1.5 billion in the long term. Additionally, by lowering isaac's customer acquisition cost as we use Arco's network of hunters and farmers to identify new leads, close sales, and provide support related to isaac solutions while implementing expense synergies as we integrate back-office structures, we expect isaac to reach EBITDA breakeven in the first quarter of 2024, with no need for additional capital raises to fund its operations. Long term, as isaac solutions gain more and more scale, its EBITDA margin is expected to converge to Arco's pedagogical business marginal level between 30% and 40%, and its cash conversion is expected to be higher than the 60% mark. On Slide 21, we bring the fifth pillar to our strategic rationale, the onboarding of a very talented team and the addition of relevant technology. Isaac gathered, since its foundation, highly qualified professionals to develop best-in-class technology and easy-to-use solutions to deliver true value to schools and families. Additionally, its team bring risk expertise with strong analytical skills, which, combined with all historical payment behavior, data gathered by its ERP creates a strong data model that improves over time. Moving to Slide 22, we believe Arco and isaac together create the world's largest operating system for schools. A powerful combination able to deliver a full solution to our clients, strengthening value perception and customer lock-in. Both Arco and isaac offer win-win solutions to all stakeholders. While Arco's high-quality pedagogical solutions provide teachers training and tools that facilitate the education process and reduces bureaucracy, students get a more personalized and engaged learning experience. Families become more involved in their kids' academic development at a lower price, and schools receive support in all areas while adding another source of revenue. Isaac's financial and managerial solutions provide schools with more revenue predictability and financial visibility, allowing them to focus on running the school and growing the business. We are confident we'll build the largest education company in the world. With that, we conclude our presentation. Operator, we can now open for questions. Thank you. The floor is now open for questions. If you have a question, please press star one on your touchtone phone as this or any time. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Questions will be taken in the order they are received. We do ask that when you pose your question that you pick up your handset to provide optimum sound quality. Please hold while we poll for questions. Our first question comes from Diego Aragao with Goldman Sachs. Please go ahead. Yes, hi. Thanks for taking my question. Actually, I have a couple of questions, please. The first one is on the timing for this deal. I can understand the strategic angle for the transaction, but not really the timing. I mean, why are you making this transaction right now, considering where your shares are trading, current valuation, and market condition? I guess, was someone else looking to buy this asset? And also, is there any reason to believe that either you or isaac are in a rush to complete this transaction? And I guess the second question is kind of related to the first one. If I am not mistaken, isaac raised roughly BRL 700 million in December last year with a couple of funds, right? The question is: Was this 100% primary? If so, can you just help us to reconcile the BRL 700 million received by that time with the BRL 245 million in cash position from isaac as of now? I just want to understand what is, you know, the cash burn for this business on a year-to-date. Lastly, apologies for all those questions, but I just want to understand the lock-up period. You mentioned that the founders are subjected to a three-year lock-up period, but what about GA, SoftBank, and Kaszek? Thank you. Hi, Diego. Otero here. Thank you so much for the questions. Starting with the first one, why do it now? First of all, I mean, it's 100% share-based transaction, so what matters is the implied valuation for the shares swap, right? Of course, we are in a very low price for our shares, but the implied valuation for the transaction makes a ton of sense for us, right? As we mentioned in the presentation, the multiples being paid for the company are quite fair, quite attractive, and we think that the value creation from the combination of both companies is enormous, okay? At this point, we are not providing any guidance on synergies, but I mean, the size of the synergies, especially commercial synergies and top-line synergies and acquisition cost synergies are extremely relevant, okay? The size of the NPV of the synergies can be as high as the valuation implied being paid for the company, okay? Once again, I mean, from a valuation perspective, I think what matters is the relative valuation, right? The fair multiple being paid, which again does not consider the synergies that we expect to unlock, especially from a commercial and acquisition cost perspective. From clients' perspective. It's a natural path for us. I think as you know, with being partners and supporters of isaac's story since its inception, we were seed investors actually in this company since the beginning. At that point, I mean, our conviction was limited. I mean, it was a test. After some time, we tested internally this product inside Arco, as you know, I mean, we created Arco Pay, and we confirmed how this product is loved by schools. It's amazing. I think this really strengthened the conviction that we should have a stronger partnership with isaac, and that's pretty much what is going on today. Okay. It was literally a natural path, and the current market conditions actually allowed this to happen at what we consider to be a very fair valuation. Okay. This is to your first question. To the second one, on the rounds, I think it's a very good point, Diego, that you're bringing because isaac a few months ago announced a round, a Series B round of $125 million. Okay, that was the size of the round. However, this round was composed by two parts. One-third of this cash would be paid upfront and was injected in the company upfront, and two-thirds would be potentially injected in the company in the future if the company desired, okay? As we started to negotiate this transaction, this second portion of the round was canceled. The company, isaac, decided not to go ahead with the two-thirds of the $125 million round. Okay? At the end of the day, this round was a $40 million round. As we announced today, we receive isaac with roughly $50 million of cash. This cash over time has been used not only for the operations of the company, but also for acquisitions, okay? Differently from what sometimes investors think, this is not a half cash burning business, okay? Actually, isaac has been using its cash to grow, but also, it made acquisitions, okay, to structure the company. The cash that is coming with isaac, the $48 million or BRL 245 million, is enough for the company to self-fund its operations, okay? It has zero debt, okay? It's a net cash company with roughly BRL 245 million in cash that as we plug in our balance sheet, that's it actually helps us deleverage, okay? Again, we don't need to inject any new money into isaac for isaac to grow almost 100% top line next year, okay? I think it is super important to emphasize. On your third question regarding the lockup. As you said, the founders they have three-year lockup, one-third being unlocked per year, okay? It's 100% equity transaction. There's no secondary or cash being paid here. For the funds, it's a customary six-month lockup period, okay? As you know, GA is a former shareholder and SoftBank and Kaszek, they join our shareholder structure. Perfect. Otero, thank you very much for the answers. Very clear. Thank you. Next question comes from Vitor Tomita with Goldman Sachs. Please go ahead. Hello, good evening, all and thanks for taking our questions. A couple questions on my side as well. The first one is actually a follow-up to Diego's question. You mentioned that the existing cash position is enough to fund isaac's growth without the need for additional capital injections, but until when? Is it just to fund next year? Or in other words, when do you expect isaac to reach cash flow breakeven on a standalone basis, particularly given the volume of potential customer acquisition investment as well as R&D investments or acquisitions that may be required for launching all the new solutions that you cited in Slide 10 to complete the platform? My second question would be that on integration, because our understanding is that Arco has been focusing on improving integration of past acquisitions, finding further synergies to recover margins and cash flow, in the current context. Given that context, could you walk us through the integration process for yet another relevant acquisition and how long this could take? Thank you very much. Hey, Vitor. It's Roberto Otero here. Thanks for the question. I think super important to clarify the cash flow dynamics. Thank you for asking that. What I meant is that this cash is enough up until the company actually becomes self-sufficient in terms of generating cash, okay? isaac, as a business, is a cash flow generator business, okay? As per our projections, the company should start to generate cash in 2024, beginning of 2025. Most likely mid 2024. Okay? It's a combination of profitability, but also working capital becoming positive, okay? Which may sound a bit counterintuitive, but the truth is that this business can be working capital positive, okay? Differently from the pedagogical business. The capital intensity of the business is lower, right? It's super scalable, especially as we plug the sales motion into our distribution channel, right? At the end of the day, this company has been growing really fast, but with a higher CAC than what it will actually be whenever we plug the sales motion into our distribution channel. Actually, we expect the cash flow generation of isaac to come in tandem with the EBITDA margin expansion, okay? At maturity, Vitor, you should expect this business to have 35%-40% EBITDA margin, okay? That's the expectation. Already connecting that to integration, I think your point is great. We've been allocating a lot of our time, human capital and resources into this integration agenda. We have two consulting firms working inside Arco, and I think the goal here is to have a sustainable growth story for isaac together with Arco, right? We don't want to buy growth at any cost. The idea here is to do a fast but careful integration of isaac, because we don't want to change the DNA of the company. We think that isaac brings very important attributes to Arco. We must be very careful to run this integration in a way that we can maximize the value generation that isaac brings. However, it is super important for us right now to do that in a sustainable way, right? We are very focused on cash flow generation right now. We're very focused on profitability right now. In terms of timing, we have onboarded a consulting firm since the beginning of the diligence process of isaac, okay? It was a very important condition for us to be sure that this business can be profitable and sufficient in terms of cash flow generation before signing, okay? Opening this year, I mean, this was a very important condition for us, so we have onboarded a consulting firm before. This project started during the due diligence process, and now this project continues, okay? Again, we plan to extract as much value as possible, respecting what comes as best from isaac, but also bear in mind that we are very much focused on cash flow generation and profitability right now. That's clear. Thank you very much. Next question comes from Marcelo Santos with JP Morgan. Please go ahead. Marcelo, the floor is yours. Please go ahead. Hello, can you hear me? Hello. Sorry about that. Had some technical issues. Good evening. Thank you for the question. The first question is about churn. Could you please discuss a bit what has been the churn rate of the schools on isaac? The second question is regarding funding. I mean, would it make sense to have some kind of funding structure, maybe a fintech or some third-party funding? These are the two questions. Thank you. Hi, Marcelo. Roberto Otero here. Thanks for the question. isaac has actually a very low monthly churn, okay? Churn in general has been quite low for the company, around 0.4-0.5%, as a logo churn, okay? Here at logo, I mean school churn, okay? It's very low, especially when you compared to other SMB SaaS solutions, okay? We expect, of course, as the company matures, as processes evolve, and as we do more cross-sell with schools that have had longer relationships with Arco, you should expect even this churn to be reduced over time, okay? Structurally, this is a product that has a low churn. Imagine this compounded with other pedagogical products right inside the same school. You should expect this to be a low churn product. In terms of funding, it's a good point. I think we are considering alternatives, securitizing, for example, a fintech, okay? Nothing is concrete or done yet, but there are alternatives, okay? It's still a bit early to say, but there are alternatives. We think that now, together with Arco, the access to those alternatives becomes more feasible, because of the relationship with institutions that eventually could partner with us to do that, right? It is a possibility. Just one question on the churn. You said 0.4%, is that on an annual basis, so 0.4% per year? Is it per month? I don't know. Just wanted to understand this point. Ladies and gentlemen, please hold. Mr. Marcelo, you may proceed. Hello? Hello? We can hear you, Mr. Marcelo. You can proceed. You may proceed now. Okay. Thank you. Sorry, guys, we got disconnected. Regarding the churn question. Our churn is actually very low. Our churn has been around 0.4-0.5% per month, which for an SMB, a SaaS product is actually a very low churn. We expect, of course, as the business matures, as processes improve and as we access more the base of Arco clients, this churn should actually be reduced. Imagine a school that has isaac products compounded with a pedagogical product, right? The lock-in is very strong. You should expect churn to be very low for this product. Something else that is interesting, this is a product with positive net retention rates or net retention rate that is above 100%. Okay? The reason for that is actually three. The first one is the low churn, of course. The second one is larger student cohort year-over-year, thanks to successful enrollment campaigns. isaac helps school's enrollment campaigns. Third, the school's ability to mark up tuition higher than inflation, right? At the end of the day, the product benefits from the churn, the enrollment, and the tuition increase. On the second point regarding funding, I mean, it is a possibility, okay, Marcelo. I think at least securitizing, for example, or a FIDC, but it's something that is still to be understood, studied and eventually implemented. Okay? At this point, we don't have anything concrete or done yet. We think that now the combination, the two companies combined, should benefit from the access to institutions that Arco has, right? This may also help not only the access to those alternative funding sources, but also to cheaper alternative sources. Okay? It's not necessary for the business. As I said, this business generates cash. It's an alternative, right? We are studying. Perfect. Very clear. Thank you very much. No, thank you. Sorry again for the tech issue here. Next question comes from Fred Mendes with Bank of America. Please go ahead. Hello, good evening, everyone. I have a couple questions here on my side as well. I mean, the first one, back to the synergies. I mean, you already had 25% of isaac. You already knew the founders of isaac quite well. I'm just wondering, what can be different? I mean, what can you make better, I guess now in order to reap these synergies that you were not doing before? That'll be my first question. Hi, Fred. Otero here. Thanks for the question. I think speaking about. Sorry? No, please go ahead. Sorry. Sorry Otero, can you hear me? Yeah, I can. Okay. Can you hear me? Yes, yes, I can. I think there's probably a delay. Oh, okay. Yeah. I guess moving to the second question, I don't know if it's better to ask all of them, but anyways, moving to the second one. In terms of valuation, you know, it looks very appealing for Arco. If you look on an EV/sales basis, you know, even a lower multiple than what Arco is trading, which obviously is very good. I'm just thinking that it's way too appealing here, with EV on the. Fred, I think I got your two questions. The first one on the synergies. I think we can split in two, okay, the answer here. The first one is top-line synergies. As we showed on the presentation, Arco can grow isaac 10 times only within its ecosystem of partner schools. Sorry guys, we're having some tech issues here. I apologize. I'll start again 'cause I'm not sure if you managed to hear my answer completely. On the synergies, I think this answer is split in twofold. The first one is top line. Okay. So, I mean, accessing the distribution channel of Arco is extremely important. We have access to over 8,000 schools with a very strong and close relationship, right? isaac can grow 10 times only within the ecosystem of partner schools of Arco, okay. This is capable of unlocking almost BRL 2 billion of revenue. Okay? The second thing is that this is possible to happen at a lower customer acquisition cost, right? You can grow faster and accessing those clients in a cheaper way. Basically, isaac is gonna have access to a sales force, Arco sales force, which is compounded by over 400-500 people, right? It's a much larger sales motion accessing the base of schools. You should expect faster growth coming at a lower CAC, okay? You have, I mean, the common synergies from any acquisition with similar business models or not even similar business models, right? Such as redundancy in back office, for example. Third, improvement in collection. Here, I don't think it's just necessarily because of the acquisition. I think improvement in collection would be a natural process, a natural path for isaac as the company evolves, right? We think that together we can do that in a faster way. In terms of the acquisition, I think your point is. I mean, we think that the value creation from the combination is very strong, right? I think that's what justifies what is being perceived by you as a valuation that sounds too cheap. I think at the end of the day both parties here have a very high conviction that the value creation is still to come. We are sharing this value creation, right? It's a 100% share-based deal, so we all become partners. We all share this value creation from now on. I prefer to look at this valuation as completely fair but also recognizing that the value to be unlocked from now on as the company's combined effort is extremely relevant, and we're gonna share that as partners. Perfect, Otero. Very, very clear. If I may just ask last one quick one. Is there any type of cap period before the founders of isaac eventually be able to sell any shares of Arco or not necessarily? Thank you. There's a lockup period of three years. One-third being unlocked per year. Okay? It's a three-year lockup. Perfect. Thank you very much. David rejoins Arco. He is gonna lead isaac as a business unit together with his team, right? The isaac team joins us, and the business unit of the company, isaac, is gonna continue to be led by David. Perfect. Super, super clear. Thank you. No, thank you, Fred. Next question comes from Vinicius Figueiredo with Itaú BBA. Please go ahead. Good evening, guys. Thanks for taking my question. I think most of my questions were already discussed, but I have two more. The first is how do we compare the average profile of Arco's clients and isaac clients? Are they much different from each other or more or less the same profile of schools? Second, it's more like a technical thing, but in the expectations that you mentioned about the revenue growth, are you assuming the take rate to continue flat over time or somehow does it float according to interest rates? Thank you. Hey, it's Roberto Otero here. Thanks so much for the question, the questions. The first one on the profile of clients, I would say it's very similar to ours. Basically, isaac has over 850 schools. The numbers that we brought in the presentation refer to August. Since then, the company grew actually really fast, and it's approaching almost 1,000 schools. That's the most updated figure at this point. It's a very diverse profile of schools, 27 states. I mean, it's if you look at the average school in Brazil, it's a school with 300 students owned by a former teacher or a small entrepreneur. That's the average profile. I'll say that the profile of isaac schools is not really different from that, okay? It's really similar to the profile of schools that we serve. We don't see anything specific or quite different there. In terms of the revenue growth assumption, in the numbers that we showed, we don't assume either a take rates falling or increasing. There are possibilities to actually expand the take rate inside existing schools, okay? In this slide that we show the products is still to be launched. Some of those products can actually add to the take rates being charged from schools, okay? This is not reflected on the numbers that we showed in this slide with that medium long-term guidance, okay? We assume that the take rates pretty much remain the same. We don't see actually a big correlation with interest rates because the business does not consume that much cash. I think it may sound counterintuitive, but that's the truth, right? The correlation is not that high. At the end of the day, the correlation is much more with the delinquency being borne by the school with the families, right? At the end of the day, the take rate is related to that and not the interest rate. That's what the school has in mind whenever they negotiate with isaac and not the interest rate. From our perspective, as I said, it's not a capital-intensive business. For us, it doesn't make much difference, or the correlation between rates and take rate is not the most important one, okay? Okay, perfect. Super clear. Thanks, Otero. No, thank you so much, man. Again, if you have a question, please press star one on your touchtone phone. At this time, we have no further questions in the queue. That concludes Arco's conference call. Thank you very much for your participation and have a nice day.