Arco Platform Ltd. (NASDAQ:ARCE) was founded in 2004 and is headquartered in Sao Paulo, Brazil. It has 1,075 full-time employees (6/30/2018). It is an educational technology company that provides large-scale high-end education to private K-12 schools through technology. Quality education system, thereby changing the way students learn.
Arco Platform Ltd. (ARCE):
Arco Platform Ltd. provides a complete teaching system with technical support functions to provide educational content for private schools in Brazil. The turnkey course solution of Arco Platform provides educational content in printed and digital formats through its platform to improve the learning process.
As of March 31, 2018, March 31, 2017, March 31, 2016, and March 31, 2015, the company’s partner schools were 1,140, 835, 667, and 377, respectively, with annual growth rates. It is 36.5%, 25.2% and 76.9% respectively. As of March 31, 2018, March 31, 2017, March 31, 2016, and March 31, 2015, the company registered 405,814, 322,031, 265,354 and 156,011 students in all Brazilian states, respectively. The growth rates were 26.0%, 21.4% and 70.1%.
Arco Platform has an asset-light, highly scalable business model that emphasizes operational efficiency and profitability. The company signs long-term service contracts with private schools. These contracts usually have initial terms of an average of three years, under which the company provides educational content in print and digital formats to private schools.
The income of Arco Platform depends on the number of registered students for each customer using the solution and the price agreed by each student every year, all of which are in compliance with the terms and conditions specified in each contract, so the company’s income is highly predictable. The company’s annual customer retention rate in 2016 and 2017 was 95.0%, which made the company’s recurring revenue base highly stable.
Arco Platform believes that the quality of its platform, the reputation of the company’s customer base and the good reputation of its brand can promote its significant growth, enabling Arco Platform to rapidly and effectively expand its business in Brazil since its establishment. As of December 31, 2017, 183 (or 16%) of Arco Platform’s partner schools were rated as one of the top three schools in their respective cities, according to the Brazilian National Entrance Examination (Exame Nacional do Ensino Médio, ENEM) national standardized test .
Arco Platform Ltd. (ARCE) investment:
Arco Platform Ltd. (NASDAQ:ARCE) submitted its IPO prospectus on 8/24/2018 and listed on NASDAQ on 9/26/2018. The issue price was US$17.50, 11,111,111 shares were issued, and 194.4 million US dollars were raised, Goldman Sachs / Morgan Stanley/ Itaú BBA/ BofA Merrill Lynch joint underwriting.