Luis Blanco: Yes. And if I may add with some question that we received through the chat here about the B2B growth on the digital segment over here, what is driving the B2B growth on that? If I may add, Virgilio, we saw during 2023 the increases in terms of contracts within the pharmaceutical industry come from products that we call campaign products. So we are hired by the pharmaceutical companies that have been the international ones and the national ones. They are hiring us to do campaigns, certain campaigns about certain drugs that they have under their portfolio to do these marketing campaigns for them using our apps and our sites as the channel to reach the right physicians at the right time. So these kind of products drive our growth during 2023 and for the next year for 2024.
On top of that, we launched at the end of 2003 some recurring products to the pharmaceutical companies as well to provide insights in their sales on that. These products didn’t get traction during 2023, but we are excited for the perspective of these offers for the pharmaceutical companies. And I think we have this additional growth in 2024 with this new product that we launched that we call RxInsights [ph].
Renata Couto: And just to finish your question again about M&A, we are seeing a… Do you want to go?
Virgilio Gibbon: Yes, sorry. Again, I forgot the question about M&A. Talking about M&A does not stop. We’re always talking with the targets as we have a very specific niche of targets. Just remember that our targets is just the institutions that have on the maturations more than 60% of their revenues coming from the medicine business. Always we have come and goes with targets and we are still comfortable with the target that we’ve put in the market to grow to 200 seats per year. About multiples on that, we don’t like this. If you perceive multiple, we prefer always to see a targets within EBITDA and evaluate it through IRR from these acquisitions to have more than 20% on leverage IRR on each transactions. But I think the next deal would have a multiple that was below the last acquisition that we have, that was UNIMA/FCM Jabotão.
I would say that it’s our expectations to have this kind of multiple in the next transaction. But we are always talking and always look for opportunities to best allocate our capital.
Lucas Nagano: Very clear. Thank you, Luiz, Virgilio, Renata.
Renata Couto: Thank you, Nagano. The next question comes from Lucca Marquezini from Itau. Lucca, you may now ask.
Lucca Marquezini: Hey, good evening, everyone. Thank you for taking our questions. Just two questions from our side. The first one, if you could just provide an updated view on the potential authorization of new seats via injunctions, and then how this could impact the competitive landscape in the regions where the company operates. And then the second question, if you consider the midpoint of the guidance for 2024, this implies an adjusted EBITDA margin expansion for the year. Can you please comment on which of the segments should be the most responsible for this expansion, please? Thank you.
Virgilio Gibbon: Hi, Luca. About the new seats authorization from the injunctions here. So, we still don’t have like a final result from the Supreme Court in this matter here. But what I expect here is that by the end of the day, independently, what is the final response from the Supreme Court will be the ministerial application that we will have to fulfill and to approve all the additional seats. So, what I believe is that the combination between the public policy that they’re aiming to expand more medical seats for countryside through the medical street, combined with any alternative way that can be from the legal side, if that is, will be the final solution, can be combined what the Minister of Education is expecting to have as a total expansion for the sector.
So, we are seeing that the total estimative by what they released in the past was around 9 to 10,000 additional seats. If they come from injunction, from additional seats, from the other alternatives, from medical streets, I think in the long-term, I think it will be added something close to 10,000 seats in five to six years. That’s the time that, well, you have to get the final answer, you have to build the campus, you have to receive the final visit to get the authorization, the normative authorization, and then start all the intake process. So, by the end of the day, that is, I think it will be the largest impact around 9 to 10,000 seats in all of the cities that the Minister of Education is aiming to have additional program or additional seats as an increase of supply for the entire country.
Luis Blanco: Okay, and Luca, Blanco speaking, taking your question about the margin expansions for 2024. As Virgilio mentioned before, in terms of top line, we can expect around 10% in the undergrad segment, around 20% in the continuing educational, and around 30% in terms of digital service expansion in top line. Coming to the expansions in these three segments, giving you more color on that, on the undergrads, we can expect margin expansion because it will be the full year, the first two years that we’re going to have UNIMA/FCM, Jabotão, a full field, 100% of the year under our model. So, we did the migrations of the operations to our shared service. We implement our national curriculum in UNIMA in this first semester of 2024.
So, we’re going to pass one-year, entire year, with them, with other structures, so we can expect expansions on margins on the undergrads because of that. On the continuing educational segment, what we’re doing is the operational leverage of the segment itself. We’ve ended 2023 with a growth of roughly 35% in this segment. We have new locations of continuing educational, and we’re fulfilling these units with students. We have a good, a very good, strong demand for our graduate courses as a path for them to get the specialization title. So, our offer is very strong and it’s getting better attractions within the physicians. And with this increase and these new units being fulfilled, we’re going to gain operational leverage and increase margins.
