Guilherme Melega: Hi, Marcelo, thank you for your question. Regarding margins, we expect to have better margins for next year. We are always pursuing the 30% adjusted EBITDA margin. We will not expect new impacts from paper for next year. So we already recognized — our inventory level is already at the old price level. We do not expect new paper price increases. Of course, there are inflation, but we have been able to move cost base price adjustment. So our prices for next year is on the double-digit level. So we expect to recover some of our margins for 2024. And regarding Educbank, Educbank, we’re very excited with Educbank performance. This year, that the company was able to fund themselves with R$70 million securitization, and they have new credit lines in place to fund the growth.
We expect to end this year, December with 85,000 students billed and next year, December next year with 220,000 students billet. So it’s a very fast growth company that are funded by itself in the market that proves the confidence that everybody has with the business model. And in terms of TPV, we are reaching the R$50 million level right now. And obviously, this will grow with the billed students for the new billed students level for next year.
Marcelo Santos: Just a clarification. The R$50 million is what if you annualize, like today’s student it’s R$50 million or is R$50 million for this year, just to understand?
Guilherme Melega: No, it’s monthly. R$50 million monthly.
Marcelo Werneck: R$600 million annualized.
Marcelo Santos: Okay. R$50 million monthly, R$600 million annualized. Thank you very much. Very clear.
Marcelo Werneck: Thank you, Marcelo.
Operator: [Operator Instructions] We have a follow-up question from Marcelo Santos from JPMorgan.
Marcelo Santos: Hi, thanks for the follow-up. Just wanted to ask one single question. Usually, the third quarter was a very weak quarter in terms of margins like seasonally speaking, and you have been proving that. What’s happening? What’s causing you to generate this improvement over the last several years? And is this something that we should start seeing more smooth EBITDA distribution in the coming years?
Guilherme Melega: Thank you. Marcelo, the major contribution is volume. We are growing and Q3 benefits from higher volumes and not only on the B2B segment, but also the B2G, we just recognized R$40 million on the B2G. So margins are growing because the company is growing. That’s pretty much it. There is no seasonality still drives our margins. Q4 will be the biggest margin on our business followed by Q1. And then we have Q2 and Q3 that we are stabilizing it on a new level of around 10%.
Marcelo Santos: Perfect. Thank you very much. Very clear. Thank you.
Operator: Our next question comes from Lucas Nagano from Morgan Stanley. Please go ahead with your question.
Lucas Nagano: Thanks for the follow-up question. I have a question on PDA specifically. So looking at Q3 alone, the PDA expenses increased because of churn, mainly non-premium brands, as you say. I just wanted to understand what caused this churn? And how is the financial situation in those schools because the hypothesis is that things should improve from now led by macro indicators. So I just wanted to understand if there’s kind of any structural change there? Thank you.
Guilherme Melega: Lucas, thank you. And you are right. Your hypothesis is right. We had a one-off in terms of cycle. We have the recognition of R$9 million from the large retail company in bankruptcy procedures. Taking this considering it, our PDA level is now at 3.1%. And this increase of 0.7% from the cycle of 2022 is pretty much due to macroeconomic environment. We are seeing a slightly delinquency increase in the entire economy, and the schools are also facing that. And the 3.1, we believe it’s still a very low PDA level and definitely is one of the lower in the industry.
