Arco(US:ARCE)2022-12-02 00:122022 Cycle Results - Arco delivered 100% revenue recognition for the 2022 cycle, with a 48% year-over-year growth, including 34% organic growth[3, 5] - The 2022 cycle saw profitability improvement, with a 23 percentage points adjusted EBITDA margin expansion year-over-year[3, 8] - 2022 cycle revenues reached R$1561 million, a 48% increase compared to R$1057 million in the 2021 cycle[9] - Cash gross profit for the 2022 cycle was R$1249 million, a 49% increase from R$839 million in the 2021 cycle[9] - Adjusted EBITDA for the 2022 cycle was R$526 million, a 58% increase from R$332 million in the 2021 cycle[9] Cash Flow Improvement - Free Cash Flow to Firm (FCFF) for 9M22 increased by 132% year-over-year, reaching 194% of revenues compared to 119% in 9M21[3, 35] - Effective tax rate decreased to 87%[15, 72] 2023 Outlook - The commercial cycle for pedagogical solutions indicates an approximate 24% ACV growth for 2023[3, 43] - ACV guidance for the 2023 cycle is approximately R$1930 million, compared to R$1560 million for the 2022 cycle and R$1163 million for the 2021 cycle[44] - Adjusted EBITDA margin guidance is maintained at 365% – 385%, and CAPEX guidance is reduced to 8% – 10% of revenue for FY 2023[3, 48]