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Yahoo
02-07-2025
- Business
- Yahoo
ZENVIA Reports Q1 2025 Results
CPaaS revenues kept fueling top line in the quarter Transition to Zenvia Customer Cloud moving on as expected Strict expense control with G&A-to-revenues improving 6.7p.p. to 8.0% Normalized EBITDA of BRL 20.0 million SíO PAULO, July 2, 2025 /PRNewswire/ -- Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX solution in Latin America empowering companies to craft personal, engaging and fluid experiences throughout the customer journey, today reported its operational and financial metrics for the first quarter of 2025. Cassio Bobsin, Founder & CEO of ZENVIA, said: "We have been fully focused on transitioning the company into the Zenvia Customer Cloud since its launch in October of last year. The ramp-up is expected to continue over the next few quarters and should be completed by year-end. In the meantime, we are also working on strengthening our partner ecosystem. 2025 is a transformative year for Zenvia, as we expect to begin reaping the results of all the investments made over the past few years." Shay Chor, CFO & IRO of ZENVIA, said: "Q1 2025 top-line performance was driven by continued strong CPaaS volume growth, along with moderate SaaS growth fueled by SMBs. Gross profit remains impacted by SMS cost adjustments that have not yet been passed on to clients—a process expected to take place gradually throughout the year. G&A, in turn, went down 24% YoY, partially offsetting gross profit reduction. The revenue increase, along with strict expense control, brought G&A-to-revenues to 8.0%, even including the severance costs incurred in the quarter. As a result, our Normalized EBITDA reached BRL 20 million, which is in line with our expectations and is expected to ramp up throughout the year. The rollout of the new strategic cycle announced in January is taking a toll on short term profitability, but we are steadily advancing efforts to boost our medium to long term performance." Key Financial Metrics (BRL MM and %) Q1 2025 Q1 2024 YoY Revenues 295.9 212.6 39.2 % Gross Profit 61.7 80.9 -23.7 % Gross Margin 20.8 % 38.0 % -17.2p.p. Non-GAAP Adjusted Gross Profit(1) 74.2 93.6 -20.8 % Non-GAAP Adjusted Gross Margin(2) 25.1 % 44.0 % -19.0p.p. Operating Income/Loss (EBIT) -2.2 -9.4 -76.4 % Adjusted EBITDA(3) 19.9 13.4 47.7 % Normalized EBITDA(4) 20.0 23.5 -15.1 % Income/Loss for the Period 3.7 -55.9 n.m. Cash Balance 86.1 71.5 20.5 % Net Cash Flow from (used in) Operating Activities 7.4 -12.9 -157.5 % Total Active Customers(5) 10,462 13,257 -21.1 % (1) For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below. (2) We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by Revenues. (3) For a reconciliation of our Adjusted EBITDA to Loss for the Period, see Selected Financial Data section below. (4) For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below. (5) We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer. The consolidated number of Total Active Customers doesn't reflect the sum of SaaS and CPaaS Clients, as there is cross selling between them. Highlights Q1 2025 Revenues totaled BRL 296 million, up 39% when compared to BRL 213 million in Q1 2024, as a result of CPaaS (+58%) YoY expansion, mostly due to higher SMS volumes with large clients who have lower margins. SaaS revenues increased 5%, mostly from SMB customers. Non-GAAP Adjusted Gross Profit reached BRL 74 million, down 21% YoY, while Non-GAAP Adjusted Gross Margin landed at 25%. This decrease is mainly explained by:(i) Higher CPaaS mix in the period, due to strong volume growth with lower margins, combined with increased SMS costs from carriers in January, which is expected to be passed on to prices throughout the year.(ii) Lower SaaS margins impacted by the transition to Zenvia Customer Cloud, as we are still ramping up the business. Total active customers were 10.5k, being 5.7k from SaaS and 4.8k from CPaaS, stable on a sequential basis when compared to Q4 2024. G&A Expenses went down 24% YoY in Q1 to BRL 24 million, bringing G&A as a percentage of revenues to 8.0%, down 6.7 percentage points from the 14.7% reported in the same period of 2024. It is worth noting that this amount includes the ˜BRL 8 million in severance costs incurred in Q1 2025. Normalized EBITDA was positive BRL 20 million in the quarter, down 15.1% from Q1 2024, mainly due to the lower gross profit from the CPaaS segment as a result of the higher SMS costs not yet passed on to clients. Please refer to the reconciliation table for more details. SaaS Business SaaS Key Operational & Financial Metrics (BRL MM and %) Q1 2025 Q1 2024 YoY Revenues 80.7 76.8 5.1 % Gross Profit 30.9 30.6 0.9 % Gross Margin 38.2 % 39.8 % -1.6p.p. Non-GAAP Adjusted Gross Profit(1) 43.4 43.4 0.0 % Non-GAAP Adjusted Gross Margin(2) 53.7 % 56.4 % -2.7p.p. Total Active Customers(3) 5,668 7,139 -20.6 % (1) For a reconciliation of the Non-GAAP Adjusted Gross Profit to the Gross Profit of our SaaS business segment, see the Selected Financial Data section below. (2) We calculate the Non-GAAP Adjusted Gross Margin of our SaaS business segment by dividing its Non-GAAP Gross Profit by its Revenues. (3) We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer. Our SaaS business is going through a transition phase with the rollout of Zenvia Customer Cloud, which is impacting the margins as it is still in its ramp-up phase and is expected to keep scaling over the next few quarters. Revenues went up 5% YoY in Q1 2025 to BRL 80.7 million from BRL 76.8 million in Q1 2024, primarily from SMB customers, despite a smaller total client base. It is worth noting that revenues from Zenvia Customer Cloud solutions increased 15% YoY, and are expected to increase even more as we ramp up the business. Q1 2025 Non-GAAP Adjusted Gross Profit in turn was flat YoY at BRL 43.4 million, while Non-GAAP Adjusted Gross Margin from SaaS went down 2.7 percentage points to 53.7%. CPaaS Business CPaaS Key Operational & Financial Metrics (BRL MM and %) Q1 2025 Q1 2024 YoY Revenues 215.2 135.8 58.5 % Non-GAAP Adjusted Gross Profit(1) 30.8 50.3 -38.7 % Non-GAAP Adjusted Gross Margin(2) 14.3 % 37.0 % -22.7p.p. Total Active Customers(3) 4,794 6,458 -25.8 % (1) For a reconciliation of the Non-GAAP Adjusted Gross Profit to Gross Profit of our CPaaS business segment, see the Selected Financial Data section below. (2) We calculate the Non-GAAP Adjusted Gross Margin of our CPaaS business segment by dividing its Non-GAAP Gross Profit by its Revenues. (3) We define an active customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an inactive customer. While the CPaaS business reported strong volumes and a YoY increase of 58% in Revenues, reaching BRL 215.2 million in Q1 2025, its Non-GAAP Adjusted Gross Profit decreased 39%, leading to a Non-GAAP Adjusted Gross Margin of 14.3%. This lower profitability is explained by the higher SMS costs resulting from carrier cost adjustment that have not yet been passed on to our customers. These adjustments will be made throughout the year, when we expect to see normalized margins. It's also worth noting that most of the revenue growth came from customers with tighter margins, a strategic choice in a competitive environment that we expect to yield results over the medium to long term as we strengthen these relationships. Consolidated Financial Result Analysis This quarter was marked by three effects that impacted our performance. In the CPaaS business, we recorded once again high volumes leading to a 58% YoY revenue growth, but the higher SMS costs when compared to the same period last year had a negative effect on our gross profit and margins. We expect margins to normalize over the course of 2025, as we pass on the carrier cost increases to clients. We also highlight that the CPaaS revenue growth came mostly from certain customers that currently have tight margins. We are confident that the strategy of acquiring clients at tighter margins will pay off in the middle and long term as we do not need additional G&A expenses to manage them. In the SaaS business, revenue went up 5% YoY despite a smaller client base, mainly driven by higher revenues from SMB customers, an encouraging sign given that it is the target audience of Zenvia Customer Cloud. Even though SMB customers have higher margins than the average mix, we saw a decrease in the SaaS Non-GAAP Adjusted Gross Margins primarily due to the transition to Zenvia Customer Cloud, as the business is still in its ramp-up phase and expected to keep scaling over the next few quarters. On the other hand, our G&A Expenses went down 24% YoY in Q1 to BRL 24 million, already including the ˜BRL 8 million in severance costs incurred in Q1 2025, bringing G&A as a percentage of revenues to 8.0%, down 6.7 percentage points from the 14.7% reported in the same period of 2024. This is due to the workforce reduction of approximately 15% announced in January, that is expected to result in cost savings between R$30 million and R$35 million in FY 2025, already factoring in the severance expenses. As a result, Normalized EBITDA was positive BRL 20 million in the quarter, in line with our expectations. We expect EBITDA to ramp up throughout the year as (i) Q1 includes BRL 8 million one off severance costs, (ii) we pass on increased SMS cost to clients, and (iii) we ramp up Zenvia Customer Cloud operations. Please refer to the reconciliation table for more details. Conference Call The Company's senior management team will host a webcast to discuss the results and business outlook on July 3, 2025, at 10:00 am ET. To access the webcast presentation, click here. Additional information regarding Zenvia can be found at Contacts Investor Relations Shay Chor Fernanda Rosa Fernando Schneider ir@ Media Relations – FG-IR Fabiane Goldstein – (954) 625-4793 – fabi@ About ZENVIA Zenvia (NASDAQ: ZENV) is a technology company dedicated to creating a new world of experiences. It focuses on enabling companies to create personalized, engaging and fluid experiences across the entire customer journey, all through its unified, multi-channel customer cloud solution. Boasting two decades of industry expertise, over 10,000 customers and operations throughout Latin America, Zenvia enables businesses of all segments to amplify brand presence, escalate sales, and elevate customer support, generating operational efficiency, productivity and results, all in one place. To learn more and get the latest updates, visit our website and follow our social media profiles on LinkedIn, Instagram, TikTok and YouTube. Forward-Looking Statements The preliminary quarter and year-to-date operating results set forth above are based solely on currently available information, which is subject to change. These preliminary operating results constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Zenvia's control. Zenvia's actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: our ability to innovate and respond to technological advances, changing market needs and customer demands, our ability to successfully acquire new businesses as customers, acquire customers in new industry verticals and appropriately manage international expansion, substantial and increasing competition in our market, compliance with applicable regulatory and legislative developments and regulations, the dependence of our business on our relationship with certain service providers, among other factors. SELECTED FINANCIAL DATA The following selected financial information are preliminary, unaudited and are based on management's initial review of operations for the first quarter of 2025. Income StatementQ12025 2024 Variation(non-audited) (audited)(in thousands of R$) ( %) Revenue 295,946 212,636 39.2 % Cost of services -234,289 -131,779 77.8 % Gross profit 61,657 80,857 -23.7 % Selling and marketing expenses -28,528 -27,359 4.3 % General and administrative expenses -23,751 -31,270 -24.0 % Research and development expenses -10,562 -14,796 -28.6 % Allowance for expected credit losses -8 -5,431 -99.9 % Other income and expenses, net -1,012 -11,353 -91.1 % Operating gain (loss) -2,203 -9,352 -76.4 % Financial expenses -21,166 -65,487 -67.7 % Finance income 27,369 5,283 418.1 % Financial expenses, net 6,203 -60,204 -110.3 % Income/Loss before taxes 3,999 -69,556 -105.7 % Deferred income tax and social contribution 3,237 16,083 -79.9 % Current income tax and social contribution -3,574 -2,420 47.7 % Income/Loss for the period 3,662 -55,893 -106.6 % Income/Loss attributable to Company Owners 3,662 -56,011 -106.5 % Non-controlling interests 0 118 -100.0 % Balance Sheet December 31, 2024 (audited) March 31, 2025 (non-audited)(in thousands of reais) AssetsCurrent assets318,990 331,281 Cash and cash equivalents116,884 86,125 Trade and other receivables171,190 208,451 Recoverable assets19,572 26,495 Prepayments5,157 7,757 Other assets6,187 2,453 Non-current assets1,424,564 1,415,200 Restricted cash10,891 11,216 Prepayments423 307 Deferred tax assets77,304 80,543 Property, plant and equipment15,350 13,952 Right-of-use of assets2,497 2,011 Intangible assets1,318,099 1,307,171 Total assets1,743,554 1,746,481 December 31, 2024 (audited) March 31, 2025 (non-audited) LiabilitiesCurrent liabilities674,759 750,672 Trade and other payables445,804 499,113 Loans, borrowings and Debentures81,137 75,610 Liabilities from acquisitions90,920 114,861 Employee benefits21,109 30,136 Tax liabilities28,612 24,104 Lease liabilities1,511 1,003 Deferred revenue5,371 5,646 Derivative financial instruments295 199 Non-current liabilities297,380 212,800 Liabilities from acquisitions189,886 160,214 Loans, borrowings45,718 30,819 Provisions for tax, labor and civil risks804 868 Lease liabilities1,309 1,309 Trade and other payables15,528 - Employee Benefits2,056 1,436 Derivative financial instruments41,814 17,904 Taxes to be paid in installments265 250 Equity771,415 783,009 Capital1,007,522 1,007,522 Reserves230,901 240,779 Foreign currency translation reserve4,847 2,901 Other components of equity2,394 2,394 Accumulated losses(474,249) (470,587) Total equity and liabilities1,743,554 1,746,481 Statement of Cash FlowQ12025 (non-audited) 2024 (audited)(in thousands of R$) Net cash from (used in) operating activities 7,393 -12,865 Net cash used in investing activities -10,155 -12,429 Net cash from (used in) financing activities -29,373 33,334 Exchange rate change on cash and cash equivalents 1,376 -257 Net (decrease) increase in cash and cash equivalents -30,759 7,783 Special Note Regarding Non-GAAP Financial Measures This press release presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA. A Non-GAAP financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. Non-GAAP financial measures do not have standardized meanings and may not be directly comparable to similarly titled measures adopted by other companies. These Non-GAAP financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We also believe that the disclosure of our Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA provides useful supplemental information to investors and financial analysts and other interested parties in their review of our operating performance. Potential investors should not rely on information not recognized under IFRS as a substitute for the IFRS measures of earnings, cash flows or profit (loss) in making an investment decision. The following table shows the reconciliation for our consolidated Non-GAAP Gross Profit and consolidated Non-GAAP Gross Margin:Q1 Consolidated 2025 (non-audited) 2024 (audited)(in thousands of R$) Gross profit 61,657 80,857 (+) Amortization of intangible assets acquired from business combinations 12,507 12,785 Non-GAAP Adjusted Gross Profit(1) 74,164 93,642 Revenue 295,946 212,636 Gross Margin(2) 20.8 % 38.0 % Non-GAAP Adjusted Gross Margin(3) 25.1 % 44.0 % (1) We calculate Non-GAAP Adjusted Gross Profit as gross profit plus amortization of intangible assets acquired from business combinations. (2) We calculate gross margin as gross profit divided by revenue. (3) We calculate Non-GAAP Adjusted Gross Margin as Non-GAAP Adjusted Gross Profit divided by revenue. The following tables shows the reconciliation for the Non-GAAP Gross Profit and Non-GAAP Gross Margin for our SaaS and CPaaS business segments:Q1 SaaS Segment 2025 (non-audited) 2024 (audited)(in thousands of R$) Gross profit 30,852 30,569 (+) Amortization of intangible assets acquired from business combinations 12,507 12,785 Non-GAAP Adjusted Gross Profit(1) 43,359 43,354 Revenue 80,711 76,820 Gross Margin(2) 38.2 % 39.8 % Non-GAAP Adjusted Gross Margin(3) 53.7 % 56.4 % (1) We calculate Non-GAAP Adjusted Gross Profit for our SaaS business segment as gross profit for our SaaS business segment plus amortization of intangible assets acquired from business combinations for our SaaS business segment. (2) We calculate gross margin for our SaaS business segment as gross profit for our SaaS business segment divided by revenue of our SaaS business segment. (3) We calculate Non-GAAP Adjusted Gross Margin for SaaS business segment as Non-GAAP Adjusted Gross Profit for our SaaS business segment divided by revenue for our SaaS business segment. Q1 CPaaS Segment 2025 (non-audited) 2024 (audited)(in thousands of R$) Gross profit 30,805 50,288 (+) Amortization of intangible assets acquired from business combinations 0 0 Non-GAAP Adjusted Gross Profit(1) 30,805 50,288 Revenue 215,235 135,816 Gross Margin(2) 14.3 % 37.0 % Non-GAAP Adjusted Gross Margin(3) 14.3 % 37.0 % (1) We calculate Non-GAAP Adjusted Gross Profit for our CPaaS business segment as gross profit for our CPaaS business segment plus amortization of intangible assets acquired from business combinations for our CPaaS business segment. (2) We calculate gross margin for our CPaaS business segment as gross profit for our CPaaS business segment divided by revenue of our CPaaS business segment. (3) We calculate Non-GAAP Adjusted Gross Margin for CPaaS business segment as Non-GAAP Adjusted Gross Profit for our CPaaS business segment divided by revenue for our CPaaS business segment. The following table shows the reconciliation for our Adjusted EBITDA and Normalized EBITDA:Q12025 (non-audited) 2024 (audited)(in thousands of R$) Income/Loss for the period 3,662 -55,893 Current and Deferred Income Tax 337 -13,663 Financial expenses, net -6,203 60,204 Depreciation and Amortization 22,068 22,797 Adjusted EBITDA(1) 19,865 13,445 Earn-outs -104 -10,081 Normalized EBITDA(2) 19,969 23,526 (1) We calculate Adjusted EBITDA as loss for the period adjusted by income tax and social contribution (current and deferred), financial expenses, net, depreciation and the goodwill impairment. (2) We calculate Normalized EBITDA as the Adjusted EBITDA adjusted by non-recurring events and non-cash impacts from earn-out adjustments. 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Yahoo
02-07-2025
- Business
- Yahoo
ZENVIA sets agenda for 2025 first quarter results
SíO PAULO, June 23, 2025 /PRNewswire/ -- Zenvia Inc. (NASDAQ: ZENV) (the "Company"), the leading cloud-based CX platform in Latin America, empowering companies to transform their customer journeys, today announced that its fiscal first quarter 2025 results will be released after the market close on Wednesday, July 2, 2025. The Company's senior management team will host a webcast to discuss the results and business outlook on Thursday, July 3, 2025, at 10:00 am ET. To access the webcast presentation, click here. Additional information regarding Zenvia can be found at Contacts Investor Relations Shay Chor Fernanda Rosa Fernando Schneider ir@ Media Relations – FG-IR Fabiane Goldstein – (954) 625-4793 fabi@ About ZENVIA Zenvia (NASDAQ: ZENV) is a technology company dedicated to creating a new world of experiences. It focuses on enabling companies to create personalized, engaging and fluid experiences across the entire customer journey, all through its unified, multi-channel customer cloud platform. Boasting two decades of industry expertise, more than 10,000 customers and operations throughout Latin America, Zenvia enables businesses of all segments to amplify brand presence, escalate sales, and elevate customer support, generating operational efficiency, productivity and results, all in one place. To learn more and get the latest updates, visit our website and follow our social media profiles on LinkedIn, Instagram, TikTok and YouTube. View original content: SOURCE Zenvia
Yahoo
23-06-2025
- Business
- Yahoo
ZENVIA sets agenda for 2025 first quarter results
SíO PAULO, June 23, 2025 /PRNewswire/ -- Zenvia Inc. (NASDAQ: ZENV) (the "Company"), the leading cloud-based CX platform in Latin America, empowering companies to transform their customer journeys, today announced that its fiscal first quarter 2025 results will be released after the market close on Wednesday, July 2, 2025. The Company's senior management team will host a webcast to discuss the results and business outlook on Thursday, July 3, 2025, at 10:00 am ET. To access the webcast presentation, click here. Additional information regarding Zenvia can be found at Contacts Investor Relations Shay Chor Fernanda Rosa Fernando Schneider ir@ Media Relations – FG-IR Fabiane Goldstein – (954) 625-4793 fabi@ About ZENVIA Zenvia (NASDAQ: ZENV) is a technology company dedicated to creating a new world of experiences. It focuses on enabling companies to create personalized, engaging and fluid experiences across the entire customer journey, all through its unified, multi-channel customer cloud platform. Boasting two decades of industry expertise, more than 10,000 customers and operations throughout Latin America, Zenvia enables businesses of all segments to amplify brand presence, escalate sales, and elevate customer support, generating operational efficiency, productivity and results, all in one place. To learn more and get the latest updates, visit our website and follow our social media profiles on LinkedIn, Instagram, TikTok and YouTube. View original content: SOURCE Zenvia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Q4 2024 Zenvia Inc Earnings Call (English, Portuguese)
Cassio Bobsin; Chairman of the Board, Chief Executive Officer; Zenvia Inc Shay Chor; Chief Financial Officer, Investor Relations Officer; Zenvia Inc Operator Good morning, and thank you for standing by. Welcome to Zenvia's Q4 2024 earnings conference call. Today's speakers are Mr. Cassio Bobsin, Zenvia's Founder and CEO; and Shay Chor, CFO and Investor Relations Officer. Please be advised that today's conference is being recorded, and a replay will be available at the company's IR website, where you can also access today's presentation. (Operator Instructions) Now I'd like to welcome one of our speakers for today, Mr. Cassio Bobsin, Founder and CEO. Sir, the floor is yours. Cassio Bobsin Good morning, everyone. I'm Cassio Bobsin, Founder and CEO. Thank you for joining us here today. I'd like to start by talking briefly about the AI revolution we are all witnessing. As we look around the world and in Brazil, it's clear that AI is no longer a promise. AI has become a strategic priority for companies looking to reinvent how they connect with customers. In global markets, we see AI driving everything from personalized product recommendations to proactive customer service. Brands are using AI to automate workflows, understand intent in real time and scale human-like conversations across channels. In Brazil, this trend is also accelerating. Businesses of all sizes from large banks and retailers to fast-growing startups are all integrating AI into their CX strategies to improve efficiency, reduce response times and deepen customer relationships. But customers today don't live on a single platform. They move across WhatsApp, Instagram, on mail, chat, SMS, always expecting fluid personalized and consistent experiences at every touch point. That is why AI isn't just a tool. It's now a core pillar of how companies engage with their audiences and how they can sell more and serve better their customers. And this is exactly where Zenvia is focused, empowering businesses to unify those interactions and bring intelligence, context and scale to every conversation no matter the channel. Let's see the next slides. This AI revolution marks the beginning of our new strategic cycle that we announced in January as it builds on what we achieved in 2024 and sets the stage for more innovation, efficiency and value creation moving forward. Strategic cycles play a critical role in shaping the direction and growth of companies and allow us to adapt to market changes, focus our resources and position ourselves for long term success. It is always worth remembering that Zenvia's mission since our inception over 20 years ago has always been to revolutionize the experience that customers have with companies and brands. We recognized three distinct strategic cycles so far in this mission, and we just closed the third one and launched the fourth one, as you can see in this slide. We had our first cycle, which was basically our start-up phase after being born in a garage as an SMS provider, then evolved to the second cycle where we expanded our messaging capabilities and consolidated ourselves as the leading SMS broker in Brazil with a series of acquisitions. The third and latest strategic cycle began in 2018 when we decided to evolve from a leading Brazilian CPaaS to become the most comprehensive CX SaaS in Latin America. After a series of acquisitions held before and after our IPO of companies that not only complemented our CPaaS business, but also reinforced our strategy and vision for the future, all overcoming challenges in their integration. We officially launched the Zenvia Customer Cloud in 2024. Zenvia Customer Cloud is the culmination of this vision and is now our core business moving forward. So as of January 2025, we have entered our fourth strategic cycle, centered on accelerating the growth of our newly defined core business. Let's dive in on Zenvia Customer Cloud on the next slide. We're truly excited about Zenvia Customer Cloud and the immense potential it brings to our company. This platform represents a pivotal milestone in our journey and in our commitment to enhancing customer experiences. Zenvia Customer Cloud is powered by AI-driven solutions and robust data analytics and is designed to adapt seamlessly to businesses of all sizes and across diverse industries. Clients already using it report enhanced customer engagement, increased sales and reduced costs. Zenvia Customer Cloud was born with AI at its core to help companies not only automate but truly operationalize intelligence, especially when managing the experience of thousands of customers in a single unified environment. It's important to highlight here that the launch of Zenvia Customer Cloud was leveraged by two important and strategic initiatives, the use of product-led growth, PLG strategies and our international expansion in Latin America. Our PLG strategies give users flexible and self-service access to our software. They can start small, explore features at their own pace, and scale in an easy way as their needs grow. This is all made possible by integrating our services into this unified platform, which makes the experience intuitive and adaptable for businesses of any industry and size. Because it fits so well with our clients' need, it leads to higher adoption, stronger long term relationships and a scalable revenue model, positioning Zenvia for sustainable growth in a fast-moving market. Another key differentiator is our shift to a volume-based pricing model, where clients pay based on the number of interactions they have with their clients and prospects rather than the traditional perceived SaaS model that we had before. This approach is enabled by an extensive use of AI in our software, which minimizes our customers' reliance on human agents, enhances efficiency for their operations and unlocks greater revenue generation potential for us with much less complexity and our international expansion, particularly in Argentina and Mexico, where we already had a presence, is performing well and delivering results. These international clients are already delivering a solid contribution to the success of Zenvia Customer Cloud, further validating our strategy. The initial results we already achieved with Zenvia Customer Cloud in these first months leaves us energized and optimistic about the opportunities that lie ahead after this challenging 2024. As we enter this important new strategic cycle, we are laser-focused on driving organic growth by leveraging our unified platform and market opportunities, evolving and accelerating our partnership ecosystem, boosting profitability through smarter operations and efficiency while reducing leverage to strengthen our financial foundation. At the same time, we're committed to building the optimal capital structure to support our ambitions and ensure long term resilience. These combined efforts are expected to position us to unlock meaningful sustainable value as we move forward in our journey. I'll now hand the call over to Shay to present our financial performance, and I'll be available for the Q&A session later on. Shay Chor Thank you, Cassio. Good morning, everyone. Let's start on the next slide and continue talking about Zenvia Customer Cloud, as Cassio just mentioned. This slide brings a snapshot of Zenvia Customer Cloud, which was officially launched back in October '24 and generated revenues of around BRL180 million in the full year of '24. We closed the year with almost 6,000 companies already using the platform, 20% of which were international companies, mainly from Mexico and Argentina. In terms of growth, we estimate that this operation will expand by 25% to 30% in 2025, achieving a gross margin of between 68% and 70% and positive EBITDA margin. Our estimates are based on solid data, showing the market is set to keep growing at a strong double-digit pace in the coming years. On top of that, our new unified operating model with advanced automation and AI and the acceleration of our partner ecosystem puts us in a better position to make the most of these opportunities. Let's now move to the next slide and talk to numbers from the quarter and the year. Q4 was a particularly challenging quarter for us as several headwinds converge and weighed on profitability despite continued top line growth and disciplined cost management. Starting on the left, we can see revenues reaching BRL231 million, up 7% year-over-year. This was primarily driven by a strong volume growth in CPaaS, which offset declines in SaaS revenues. However, as we move to the next chart, we can see the pressure on margins. Our adjusted gross profit declined 60% to BRL49 million, with gross margin decreasing to 21%. There were two main drivers behind this. First, on the CPaaS side, we saw a higher mix in the quarter coming from strong growth but at lower margins. This was further impacted by a BRL27.8 million SMS cost adjustment related to the full year, but only recognized entirely in Q4 rather than being spread across previous quarters. As you can see in the center chart, this had a major effect on our CPaaS gross profit and margin. If we exclude this one-time item, CPaaS adjusted gross margin would have been close to 22%, which is much more in line with our expected range of 20% to 25% as opposed to the reported 4%. We view this impact as a nonrecurring and expect margins to normalize progressively over the course of 2025 as we move on with our strategy. Second, in SaaS, margins declined to tighter profitability from our enterprise clients who continue to operate in a highly competitive environment. Additionally, we incurred higher costs related to the launch of Zenvia Customer Cloud. As we continue rolling out this new operation, we expect to see better results from our SaaS segment throughout 2025. As a result of both these effects, CPaaS adjusted gross profit was only BRL6 million, while SaaS reached BRL43 million, with margin declining in both segments. EBITDA, when excluding earn-out expenses and the SMS impact I just mentioned, closed the quarter at BRL35 million, a 6% decline versus the BRL37 million recorded in Q4 of '23. We expect this level to be our recurring quarterly EBITDA going into '25. Let's now move to the analysis of the results of the year. In this slide, we show our annual revenue and non-GAAP adjusted gross profit over the last three years. On the revenue side on the left, both segments presented growth in the periods. The CPaaS market proved to be much more dynamic and volatile than expected, expanding 25% year-over-year between '23 and '24 after growing only 3% in the previous year, while SaaS remained in a highly competitive environment, growing at high single digits in the same period as compared to double digits the year before. With this revenue performance, along with the margin impacts we just discussed, particularly from Q4, drove the overall gross margin compression in the year as seen on the chart on the right. Looking ahead, I would like to emphasize again here that we have been investing a lot on the integration of the SaaS solution, and we expect to start to leverage on the growth of SaaS under Zenvia Customer Cloud. As we move more and more into it, integrating all businesses into the new business model, the company is increasingly transitioning into a full SaaS model, generating MRR through monthly subscription, seats and usage volume. Let's now look into the profitability for the year in more detail. This slide gives us a consolidated view on how gross profit and margin performed in '24. Again, profitability was impacted by the newly acquired CPaaS clients with lower margins and the competitive environment for enterprise on SaaS, along with the cost adjustments we just discussed. I would like to highlight here that despite the impact this quarter, we believe this strategy with the newly acquired CPaaS clients will pay off over the medium to long term as we deepen this relationship, and we don't need additional G&A expenses to manage them. Moving on, let's now discuss our G&A. Over the past two years, we've stayed laser focused on tightly controlling costs, cutting BRL33 million in G&A expenses in total, thanks to our streamlining efforts that started at the end of '22 when our G&A to revenue ratio reached almost 23%. As you can see in this slide, this ratio went down to 12% in '24 from 16% in '23 and from 19.5% in '22, down by 760 basis points in this two year period. We are very proud to have been able to pivot the company this way, improving both the productivity and profitability, which are vital for this next phase of growth, as Cassio mentioned in his opening remarks. As we enter '25, we remain committed to keeping our focus on streamlining our operations to drive efficiency. We announced in January a headcount reduction projected to generate cost saving of additional BRL30 million to BRL35 million in '25, even after accounting for severance expenses. And we are also counting on AI and automation to have an even deeper impact in streamlining efforts moving forward. As a result of all our efforts on both the revenue side and G&A side, EBITDA multiplied by almost 5 times in these two years, but fell short of the full year '24 guidance for the reason I already explained. Even though our revenues went up 19% year-over-year to BRL960 million and the G&A expenses went down 11% year-over-year, it was not enough to offset the lower gross profit margins. We are frustrated that we couldn't reach our EBITDA guidance for '24. But at the same time, we are confident about '25, given the early improvements we are already seeing in the first months of the year. Moving on to the next slide. Another key index that we always like to highlight is our EBITDA minus CapEx. This metric not only highlights our operational efficiency, but also helps you understand how well we are positioning ourselves to deleverage, fund future growth, maintain financial flexibility and reward shareholders. As you can see in this slide, in '22, when we deducted the CapEx from our EBITDA, we still saw a negative figure. It turned positive in '23 and improved even more in '24, even considering the increase in CapEx related to the investments stated in this year. When we look year-over-year, our EBITDA minus CapEx improved BRL26 million in '24, but for the two years, the performance is even better, an improvement of BRL53 million. We also ended the year with a cash balance of BRL117 million. We expect EBITDA to continue growing at a faster pace than our CapEx as it has been the case for the last few years. CapEx for '25 should remain in the same level of '24. Zenvia Customer Cloud is the growth engine for our company from now on. Moving on to the next slide to talk about our next steps. As we move into this next phase, our focus remains clear. We'll continue to accelerate organic growth, supported by the increasing scalability of our new platform. At the same time, we are streamlining operations even further with AI playing a key role, not just in how we serve clients, but in how we operate internally with greater efficiency and intelligence. As a means to sharpen our focus on our core business and drive the expansion of our ecosystem, we'll carefully evaluate opportunities to divest non-core assets as we disclosed in January. We believe we own assets that hold significant value in their segments and an opportunistic divestment could play a key role in optimizing our capital structure. As we embark on our new strategic cycle, we are focused on expanding Zenvia Customer Cloud in Brazil and Latin America. Our priorities are accelerating organic growth while continuing to deleverage the company. We are working hard for these actions to result in a more efficient company with exceptionally solid business metrics, enabling us to unlock value to our shareholders. I couldn't close this call without thanking you all for your support in '24, which, as I said in the beginning of my prepared remarks, was a transformative year for us. We appreciate your continued trust as we move ahead. We are committed to building a profitable and exciting future for Zenvia. Based on what we have seen so far, we expect to report a good start for the year with Q1 numbers by mid-June. We cannot anticipate a specific number at this point, but I can say that we are seeing revenue growth picking up, SaaS margin recovering and EBITDA tracking at healthy levels. With this, we conclude our prepared remarks, and we are ready to take your questions. Operator (Operator Instructions) Our first question comes from [Armagan]. Two questions from me. Can you take it, Shay? Shay Chor Yes, yes. I'll read it and I'll answer. Operator Thank you. Shay Chor So first question, could you provide clarity on Zenvia's full year 2025 revenue outlook? Specifically, how should investors model the Customer Cloud segment 25% to 30% projected growth in relation to your traditional SaaS, CPaaS business lines? To what extent do you anticipate customer cloud revenues to cannibalize existing revenue streams versus creating net new growth? Thanks, Armagan, for your questions. So I'll start by trying to separate the revenues here, so it's easier for everybody to understand. When we think about the SaaS business, the entire SaaS business in '24, we generated approximately BRL320 million in revenues. Given that we stated that Zenvia Customer Cloud was about BRL180 million, so that is the part that we are saying that it's going to grow about 25% to 30%, the BRL180 million that we generated under Zenvia Customer Cloud. There are still about BRL140 million in other SaaS businesses that we expect to be flattish to 5% growth. So it's SaaS we can even consider that SaaS legacy business. So those are businesses that in the M&A that we did, they don't fit under Zenvia Customer Cloud, but they still generate decent revenue and they still generate decent profitability. So those are businesses that we'll keep investing to make them updated, but we'll not put a lot of efforts to keep growing those businesses. There are important clients that are with us for a while, and we'll keep them with us investing in what they need, but there will be no effort as we are putting effort on Zenvia Customer Cloud. Now on the CPaaS business, it's actually been surprising us. '24 was surprising in terms of growth. We understand that this business should be growing between 5% and 8%, but it grew way faster than this in '24. We are anticipating a '25 that it's growing -- it should move back to that 5% to 8% growth. But in the first couple of months of this year, we are seeing that CPaaS continue growing fast. Second question, could you provide an update on the current status of your planned divestments? Has the company established any specific milestones or time line for completing this process that you're able to share with investors? We are not able to share any specific details on divestments. As we said on our January 13 statement, we'll be opportunistic on evaluating divestments alternatives. The main focus of the divestment is to improve our capital structure, so deleverage balance sheet. So that's what we should have -- investors should have in mind. And on top of that, obviously, we'll continue doing all liability management that we need to do to deleverage balance sheet. If you look into our financial statements that we published late last week, in the subsequent events, we detail that we renegotiated debt with the debt that we have -- the loans that we have with banks. Most of them, we were granted a six month grace period on the principal amortization. So that is the kind of thing we'll continue doing in parallel to divestment because divestment we don't control. We need to be opportunistic. And in any case, we need to continue doing liability management to make our EBITDA fit into our capital structure. Hugo, I'll keep going here because I see there's no live questions, okay? Operator Okay, Shay. Thank you. Shay Chor This is one for Cassio. Now that AI is a reality, as you mentioned, what are you seeing as a new hot topic or things that Zenvia is seeing that could happen differently in '25? Cassio Bobsin As during 2024, we built the foundations to blend AI into the core of our Zenvia Customer Cloud. We see that the adoption of simple use cases that was the beginning of AI into the platform is now evolving into a more interconnected use case, which combines the data that companies have considering the history of their customers' transactions, the history of past interactions with these customers, to then create more sophisticated customer journeys and experiences for these customers. So we're beginning to see the adoption of agents that we are offering our customers within the Zenvia Customer Cloud to automate some more complex journeys and complex interactions that use that data to help end customers to solve their issues, to understand what is the best offer for them, to anticipate what could be offered for them in terms of marketing offerings, and so forth and so on. So we are starting to see the use of the combination of data and past interactions into more personalized experiences for end customers. Shay Chor Thank you, Cassio. Another one here for you. I remember at some point, you talked about charging per interaction. The SaaS industry mostly on a per seat basis. Can you elaborate more on this? Cassio Bobsin Sure. Historically, SaaS companies charged their platform, their software per seat, which is like a legacy from the old ways of selling software per license. But as we see the adoption of SaaS, even though it evolves human agents operating the software, when you go into automation and AI, you expect customers to use your software, not for increasing the amount of human agents using the software, but going into -- deeper into how to use data and use AI to create more value for their operations, for their businesses. So what we changed, and this is something that in the next couple of years will be the major trend in SaaS is not to charge per seat solely, but migrate that to per usage. And per usage, depending on the business and the software that you're providing means different things. In our case, as we are providing software for customer experiences, it makes sense to charge companies in terms of how many interactions they have with their end customers. Hence, we did that movement last year. Now we charge our software, the whole of Zenvia Customer Cloud per interaction with end customers. And what happens when we do that is that we don't limit that many -- the way human agents are using the software, but we actually stimulate them to adopt different features that we would provide, for instance, chatbots or agents for marketing purposes or automation over campaigns or ways to help these human agents to be more productive. And this for companies actually help them to be more efficient to reduce costs. So -- and from our perspective, we're benefiting our customers. And at the same time, we're capturing more volume and more revenues from these same customers as they use more of our software, we are able to charge more per usage. And we see that this is the way we are going to, over the next couple of years, be able to monetize our customer base more and more as they -- usually companies -- our customers usually start with one use case, usually no automation, a very simple use case. And over time, they begin using our software for other use cases for other departments, for other parts of the customer journey. And that brings, of course, more interactions that are managed by our software. That's why we see that will create -- and it is already creating a positive flow in terms of revenue from some customers. Shay Chor Okay. Moving forward here. Back on the divestment. Can you also not share if they are even interested at this moment? I understand you can't give specific details, but is there any serious interest currently? Unfortunately, we cannot provide any details on divestment. I can ensure you all that we've been working hard, looking into all alternatives and options that we have. But again, we cannot share any further details at this point. Another one here for you, Cassio. I have noticed that in the past few months, there has been a bigger focus from the team on the franchise model as well as new partnerships. Could you talk us through what the ultimate vision is here? Are there customer acquisition tools, retention or pure-play monetization opportunities? Cassio Bobsin Sure. As we've been evolving with the Customer Cloud, we understood that for companies to go deeper into the usage of the platform to create journeys that go end-to-end from marketing to sales, customer service, customer engagement, sometimes it's necessary not only to have the software available, but also to have someone by your side that is a specialist on your kind of company in your vertical, in your region and the kind of use case you're trying to evolve. So we always had some partners working with us to help on these use cases. But as we saw last year, this demand for more sophisticated usage of our software, we understood that there was a very interesting opportunity to evolve these partners into franchises where these partners, they not only help us to sell the platform, but also help customers to achieve their operating results. So we've been evolving that model since end of last year. It's going much better than we expected, and we're aiming to scale that even more. We are not disclosing many numbers at this time, but over the next couple of months, we're going to be able to disclose how these new sales channel is performing. But it's safe to say that over the next couple of quarters will become the major sales channel for Zenvia. So we're adding a new sales channel. It's performing pretty well, and I expect that will help us to achieve strong growth in the next couple of quarters. Shay Chor Thank you, Cassio. Moving forward here, will 2025 gross margin for both SaaS and CPaaS get back above '23 levels? Or will we stay below that? So for those who are not in front of the numbers, just to help you guys here, the gross margin on the SaaS business in '23 was 46%. And on the CPaaS was 20 -- should be -- in '24 was 26%. So looking into '25, on the SaaS business, we should expect gross margin to be back to the levels of '23. So let's call it between 45% and 50%. And on the CPaaS business, the 26% we presented in '24 should be a normalized level. So slightly below that, maybe closer to 25%. So I would say that it should be closer to '23 levels in terms of the SaaS business and close to '24 levels in terms of the -- on the CPaaS business. I'll keep going here. I understand you're not providing at this point any guidance for '25. So could you tell us what are your main goals or challenges for this year? So Cassio, I'll start with pure financial, and I'll let you run through operations and strategic, okay? In terms of financials, I would say that main goals for '25, first is deleverage balance sheet and align our EBITDA -- better align our EBITDA to capital structure of the company. And the second thing is do better than we did in '24 in terms of EBITDA, in terms of profitability. Those are the main goals for us from a pure financial perspective. Cassio, I don't know if you want to add something in the operations or products. Cassio Bobsin Sure. Well, as you are aware, we operate in CPaaS as a mature business. Also, as I mentioned, we have the legacy SaaS that we are continuing to operate, but we expect mature growth. But when we look to Zenvia Customer Cloud, our focus of investment over the last two, three years, we are seeing an amazing performance. We're seeing a quick evolution of the software of customer experiences, and that is resulting into not only a strong customer acquisition, but especially more engagement from our own current customers using the software. We're seeing more adoption of the software, I would say, at least around 0.5% -- half of our customer base using Zenvia Customer Cloud, already using for two or more use cases, meaning 10 times -- more than 10 times than what we had before Zenvia Customer Cloud. And that not only gives us a strong retention of these customers that go into a more deep adoption, but we see that they grow their revenues with us. So this combination of a stronger customer acquisition and a deeper adoption of our software and combined with usage-based business model is generating a very interesting combination of revenue growth for Zenvia Customer Cloud. And as gross margins for this business are pretty healthy, we are seeing that over the next couple of quarters we'll be able to make this business become the strongest portion of the whole company, generating cash. It's already EBITDA positive, and these -- all this combined gives us a very optimistic overview for 2025. Shay Chor Thanks, Cassio. I got another one, seems to be the last one for the time being. How should we look at EBITDA margins for this year? Same story as the gross margins. So again, we're not providing specific numbers. As I mentioned, we are targeting and one of our main goals for '25 is to improve EBITDA from what we delivered in '24. I cannot share any specific level, but I can say that we are aiming at doing better than we did in '24. Hugo, we have no further questions here so far. Operator (Operator Instructions) Shay Chor I guess that's it, Hugo. Operator Thank you, Shay. So this concludes our Q&A session. I'd like to turn the conference back over to Mr. Cassio Bobsin for his closing remarks. Cassio Bobsin Thank you everyone for joining us on this call. 2024 was a very challenging year for us, and we see that, on the other side, we were able to base all the foundations during the last year that are now becoming the, basis for our 2025 high expectations. We're seeing that the market is pretty healthy. And our performance is doing amazingly well on Q1. We expect that to continue over the next couple quarters. And so we expect to see you all of you in the next couple of weeks, so we can share our QA -- Q1 numbers. So see you and thank you very much. Operator The conference has now concluded. Zenvia's IR area is at your disposal to answer any additional questions. Thank you for attending today's presentation. You may now disconnect. Have you all a nice day.
Yahoo
16-05-2025
- Business
- Yahoo
ZENVIA Reports Q4 2024 and Full Year 2024 Results
Full year top line fueled by strong CPaaS revenue increase Strict expense control with G&A as % of revenues improving 4p.p. to 11.9% in FY 2024 New Strategic Cycle Announced for 2025 SíO PAULO, May 16, 2025 /PRNewswire/ -- Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX solution in Latin America empowering companies to craft personal, engaging and fluid experiences throughout the customer journey, today reported its operational and financial metrics for the fourth quarter and full year of 2024. Cassio Bobsin, Founder & CEO of ZENVIA, said: "2024 marked the development and launch of Zenvia Customer Cloud—our integrated solution designed to connect every stage of the customer journey. With extensive use of AI, the platform personalizes each interaction from the first touchpoint through post-sales service. AI is no longer a promise, it has become a fundamental pillar in how companies engage with their customers. That's why Zenvia Customer Cloud, which is now our new core business, was built with AI at its core—to help companies operationalize intelligence at scale, especially when managing the experiences of thousands of consumers in a single, unified environment. We ended 2024 with almost 6,000 clients already using Zenvia Customer Cloud, and its consolidation represents the beginning of an exciting new cycle for Zenvia, as we announced in January of 2025, positioning us among the most complete unified CX AI SaaS solutions for B2C companies." Shay Chor, CFO & IRO of ZENVIA, said: "2024 was a pivotal and demanding year for us at Zenvia, as we focused on the final stages of implementing the Zenvia Customer Cloud, which was fully launched in October and demanded a lot of effort on systems and processes for its ramp up. At the same time, the CPaaS market proved more dynamic and volatile than anticipated and expanded 25% over the year. In this scenario, our 2024 Normalized EBITDA went up 38% YoY, multiplying by nearly five times in the last two years, yet fell short of our guidance for the year. While we acknowledge that profitability was shy of our expectations, mainly due to the Q4 performance which was impacted by full-year cost adjustments and SMS cost increases, we expect profitability to normalize in 2025, as we are already observing in the first months of 2025. In this new cycle, we will sharpen our focus on accelerating organic growth and expanding our partner ecosystem, while also deleveraging the company and streamlining operations—consistent with the new strategic direction we announced on January 13, 2025." Key Financial Metrics (BRL MM and %) Q4 2024 Q4 2023 YoY FY 2024 FY 2023 YoY Revenues 231.4 217.0 6.6 % 959.7 807.6 18.8 % Gross Profit 36.6 110.3 -66.8 % 294.8 330.5 -10.8 % Gross Margin 15.8 % 50.8 % -35.0p.p 30.7 % 40.9 % -10.2p.p Non-GAAP Adjusted Gross Profit(1) 49.2 123.1 -60.0 % 345.5 382.6 -9.7 % Non-GAAP Adjusted Gross Margin(2) 21.3 % 56.7 % -35.5p.p 36.0 % 47.4 % -11.4p.p Operating Income/Loss (EBIT) -14.9 15.4 -197 % 3.3 -10.7 n.m Adjusted EBITDA(3)(5) 7.5 38.7 -80.7 % 95.3 77.1 23.6 % Normalized EBITDA(4)(5) 34.8 37.1 -6.2 % 105.1 76.1 38.1 % Income/Loss of the Period -134.9 -17.0 694.8 % (154.7) (60.8) 154.5 % Cash Balance 116.9 63.7 83.4 % 116.9 63.7 83.4 % Net Cash Flow from (used in) Operating Activities 45.9 14.2 224.1 % 107.8 162.5 -33.7 % Total Active Customers(6) 10,622 12,929 -17.8 % 10,622 12,929 -17.8 % (1) For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below. (2) We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue. (3) For a reconciliation of our Adjusted EBITDA to Loss for the Period, see Selected Financial Data section below. (4) For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below. (5) In December 2023, the Company identified that the allowance for expected credit losses and cost with amortization of intangibles was understated. The calculation was reassessed in the annual financial statements and Management has retrospectively revised the first six months of 2023 for comparison purposes.(6) We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer. The consolidated number of Total Active Customers doesn't reflect the sum of SaaS and CPaaS Clients, as there is cross selling between them. Highlights Q4 2024 Revenues totaled BRL 231 million, up 7% when compared to BRL 217 million in Q4 2023, as a result of CPaaS (+17%) YoY expansion offset by the 10% drop in SaaS, mostly due to an 11% decrease in revenues from Enterprise customers. Non-GAAP Adjusted Gross Profit of BRL 49 million was down 60% YoY, while Non-GAAP Adjusted Gross Margin landed at 21%. This decrease is mainly explained by: (i) Higher CPaaS mix in the period, due to strong growth with lower margins. There was also an impact of BRL 27.8 million from SMS cost adjustments related to the full year, that was recorded only this quarter instead of diluted over the periods. Excluding this impact, CPaaS Adjusted Gross Margin would have been 21.8%, which is closer to the 25-30% range for expected gross margins, instead of the reported 4.0%. We expect margins to normalize over the course of 2025. (ii) Lower SaaS margins due to tighter margins from Enterprises, which continue to reflect a very competitive environment, more than offsetting the improved SMB mix, coupled with higher infrastructure costs associated with the final push to launch Zenvia Customer Cloud during the first half of the year. Total active customers were 10.6k, being 5.9k from SaaS and 5.0k from CPaaS. Our G&A Expenses went down 37% YoY in Q4 to BRL 19 million—less than half from two years ago—, bringing G&A as a percentage of revenues to 8.3%, down 5.7 percentage points from the 14.0% reported in the same period of 2023. It is worth noting that when we began our streamlining efforts, in mid-Q4 2022, the G&A-to-revenue ratio stood at 22.8%, so this drop represents a reduction of 14.7 percentage points over the whole period. Normalized EBITDA was positive BRL 35 million in the quarter, down 6% from Q4 2023, mainly due to the lower gross profit, despite the stricter expense control and drop in G&A. The Q4 2024 results were also impacted by a BRL 27.8 million expense from SMS cost adjustments related to the full year, that was recorded only this quarter instead of diluted over the periods. For Q4 2024, we are considering this as a non-recurring event and excluding it from Normalized EBITDA. Please refer to the reconciliation table for more details. Cash Balance of BR 117 million, a sequential increase of BRL 14 million as a direct result of our focus on cash preservation without jeopardizing our sustainable growth, including the continued use of working capital instruments. Highlights 2024 Revenues totaled BRL 960 million, up 19% compared to BRL 808 million in 2023, as a result of both SaaS (+8%) and CPaaS (+25%) YoY expansion. Non-GAAP Adjusted Gross Profit of BRL 345 million was down 10% YoY with Non-GAAP Adjusted Gross Margin down by 11 percentage points YoY to 36.0%, mainly explained by the higher mix of CPaaS in revenues, combined with lower margins from both the CPaaS and SaaS business. Our G&A Expenses ended the year at BRL 114 million, down 11% YoY, bringing G&A as a percentage of revenues to 11.9%—a decrease of 4.1 percentage points from the 16.0% reported in the same period of 2023. Two years ago, the G&A-to-revenue ratio stood at 19.5%, reflecting a reduction of 7.6 percentage points over the period. Normalized EBITDA reached BRL 105 million in the period, up 38% from 2023, but below the lower end of the full-year guidance range of BRL 120 million to BRL 140 million. Cash Balance of BR 117 million was up by BRL 53 million YoY as a direct result of our focus on cash preservation without jeopardizing our sustainable growth, including the continued use of working capital instruments. Subsequent Events On January 13, Zenvia announced the beginning of its new strategic cycle, centered on its newly launched solution—Zenvia Customer Cloud. Introduced in October 2024, the platform represents the deep integration of the Company's CX AI SaaS tools, delivering a fully unified customer experience solution. Supported by Product-Led Growth (PLG) strategies and international expansion, Zenvia Customer Cloud has already been adopted by approximately 6,000 companies—20% of which are international clients—and is estimated to have generated close to R$180 million in revenue for the year ended December 31, 2024. SaaS Business SaaS Key Operational & Financial Metrics (BRL MM and %) Q4 2024 Q4 2023 YoY FY 2024 FY 2023 YoY Revenues 75.5 83.6 -9.7 % 318.7 295.0 8.0 % Gross Profit 30.3 41.1 -26.3 % 128.4 136.3 -5.8 % Gross Margin 40.1 % 49.2 % -9.0p.p. 40.3 % 46.2 % -5.9p.p. Non-GAAP Adjusted Gross Profit(1) 43.0 54.0 -20.4 % 179.1 188.3 -4.9 % Non-GAAP Adjusted Gross Margin(2) 56.9 % 64.5 % -7.6p.p. 56.2 % 63.8 % -7.6p.p. Net Revenue Expansion (NRE) 100 % 102 % -2.0p.p. 100 % 102 % -2.0p.p. Total Active Customers(3) 5,936 7,127 -16.7 % 5,936 7,127 -16.7 % (1) For a reconciliation of the Non-GAAP Adjusted Gross Profit of our SaaS business segment to Gross Profit of our SaaS business segment, see Selected Financial Data section below. (2) We calculate Non-GAAP Adjusted Gross Margin of our SaaS business segment as Non-GAAP Gross Profit of our SaaS business segment divided by revenue of our SaaS business segment.(3) We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer. Our SaaS business Revenue went down 10% YoY in Q4 2024 to BRL 75.5 million from BRL 83.6 million in Q4 2023, primarily from a decrease in revenues from Enterprise customers. In the year, SaaS revenues went up by 8.0%, as a result of the increases from both client size profiles (Enterprise and SMBs), with our SMB customers increasing 8% in the period, helping lay the groundwork for Zenvia Customer Cloud to scale. Q4 2024 Non-GAAP Adjusted Gross Profit went down 20% YoY to BRL 43.0 million from BRL 54.0 million, with Non-GAAP Adjusted Gross Margin from SaaS reducing by 7.6 percentage points to 56.9%, as we saw tighter margins from large enterprises amid continued fierce competitive market dynamics in this segment. In the year, our Non-GAAP Adjusted Gross Profit went down 5%, which led the 7.6 percentage points reduction in our Non-GAAP Adjusted Gross Margin to 56.2%, mainly from the same impact from large enterprises with lower margins, coupled with the higher infrastructure costs associated with the final push to launch Zenvia Customer Cloud during the first half of the year. CPaaS Business CPaaS Key Operational & Financial Metrics (BRL MM and %) Q4 2024 Q4 2023 YoY FY 2024 FY 2023 YoY Revenues 155.9 133.4 16.9 % 641.0 512.6 25.1 % Non-GAAP Adjusted Gross Profit(1) 6.3 69.2 -90.9 % 166.4 194.3 -14.3 % Non-GAAP Adjusted Gross Margin(2) 4.0 % 51.9 % -47.8p.p. 26.0 % 37.9 % -11.9p.p. Total Active Customers(3) 4,963 6,263 -20.8 % 4,963 6,263 -20.8 % (1) For a reconciliation of the Non-GAAP Adjusted Gross Profit of our CPaaS business segment to Gross Profit of our CPaaS business segment, see Selected Financial Data section below.(2) We calculate Non-GAAP Adjusted Gross Margin of our CPaaS business segment as Non-GAAP Gross Profit of our CPaaS business segment divided by revenue of our CPaaS business segment.(3) We define an active customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an inactive customer. The CPaaS segment reported Net Revenues of BRL 155.9 million in Q4 2024, up 17% YoY. Q4 2024 results were impacted by a BRL 27.8 million expense from SMS cost adjustments related to the full year, that was recorded only this quarter instead of diluted over the periods. Excluding this impact, CPaaS Adjusted Gross Margins would have been 21.8%, which is closer to the 25-30% range expected for gross margins, instead of the reported 4.0%. We expect to recover part of these margins over the course of 2025. In the full year, our CPaaS business reported Net Revenues of BRL 641.0 million, up 25% YoY, while our Non-GAAP Adjusted Gross Profit decreased 14%, leading to a Non-GAAP Adjusted Gross Margin of 26.0%. The lower profitability can be traced to higher SMS costs and tighter margins from newly-acquired clients, a strategy we expect to pay off over the medium to long term as we deepen these relationships. Consolidated Financial Result Analysis This quarter was marked by three effects that impacted our performance. On the CPaaS business, we recorded high volumes leading to a 17% YoY revenue growth, but the combination of higher SMS costs when compared to the same period last year, along with newly-acquired clients with tighter margins, had a strong negative effect on our gross profit and margins. We are confident that the strategy of acquiring clients at tighter margins will pay off in the middle and long term as we do not need additional G&A expenses to manage these clients. On the SaaS business, revenue declined compared to Q4 2023 mainly due to lower revenues with Enterprise customers from continued fierce competitive market dynamics in this segment, which combined with increased infrastructure costs in preparation for the launch of the Zenvia Customer Cloud, also had a negative effect on our gross profit and margins. On the other hand, our G&A Expenses went down 37% YoY in Q4 to BRL 19 million— less than half from two years ago—bringing G&A as a percentage of revenues to 8.3%, a 5.7 percentage points decrease from the 14.0% reported in the same period of 2023, but not enough to offset the lower margins on both segments. As a result of all these effects, our Adjusted EBITDA reached BRL 7.5 million in Q4 2024 compared to BRL 38.7 million in Q4 2023, while the Normalized EBITDA, which excludes the earn-outs and non-recurring events, reached BRL 34.8 million compared to BRL 37.1 in Q4 2023. The Q4 2024 performance negatively impacted our full year results and prevented us from delivering the annual guidance. Even though our revenues went up 19% YoY to BRL 960 million and the G&A Expenses went down 11% YoY to BRL 114 million, it was not enough to offset the lower margins from higher CPaaS on the mix from newly-acquired clients with lower profitability and the competitive environment for Enterprises on the SaaS Business, along with full-year cost adjustments and SMS cost increases. Adjusted EBITDA reached BRL 95.3 million in 2024 (+23.6%), while Normalized EBITDA totaled BRL 105.1 million, up 38.1% YoY but below the lower end of our full year 2024 guidance. Conference CallThe Company's senior management team will host a webcast to discuss the results and business outlook on May 20, 2025, at 10:00 am ET. To access the webcast presentation, click here. Additional information regarding Zenvia can be found at Contacts Investor Relations Caio Figueiredo Fernando Schneider ir@ Media Relations – FG-IR Fabiane Goldstein – (954) 625-4793 – fabi@ About ZENVIA Zenvia (NASDAQ: ZENV) is a technology company dedicated to creating a new world of experiences. It focuses on enabling companies to create personalized, engaging and fluid experiences across the entire customer journey, all through its unified, multi-channel customer cloud solution. Boasting two decades of industry expertise, over 10,000 customers and operations throughout Latin America, Zenvia enables businesses of all segments to amplify brand presence, escalate sales, and elevate customer support, generating operational efficiency, productivity and results, all in one place. To learn more and get the latest updates, visit our website and follow our social media profiles on LinkedIn, Instagram, TikTok and YouTube. Forward-Looking Statements The preliminary quarter and year-to-date operating results set forth above are based solely on currently available information, which is subject to change. These preliminary operating results constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Zenvia's control. Zenvia's actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: our ability to innovate and respond to technological advances, changing market needs and customer demands, our ability to successfully acquire new businesses as customers, acquire customers in new industry verticals and appropriately manage international expansion, substantial and increasing competition in our market, compliance with applicable regulatory and legislative developments and regulations, the dependence of our business on our relationship with certain service providers, among other factors. SELECTED FINANCIAL DATA The following selected financial information for the years 2024 and 2023 are audited. The annual report on Form 20-F for the fiscal year ended December 31, 2024 has also been filed with the Securities and Exchange Commission. The annual report can be accessed on the Company's investor relations website at or at Income StatementQ412M2024 2023 Variation2024 2023 Variation(non-audited) (restated)(audited) (audited) (in thousands of R$) ( %) (in thousands of R$) ( %) Revenue 231,436 217,014 6.6 %959,680 807,577 18.8 % Cost of services -194,865 -106,742 82.6 %-664,907 -477,035 39.4 % Gross profit 36,571 110,272 -66.8 %294,773 330,542 -10.8 % Selling and marketing expenses -20,042 -28,292 -29.2 %-101,477 -109,793 -7.6 % General and administrative expenses -19,237 -30,332 -36.6 %-114,402 -128,823 -11.2 % Research and development expenses -5,662 -12,773 -55.7 %-47,043 -52,784 -10.9 % Allowance for expected credit losses -4,612 -24,616 -81.3 %-16,066 -49,247 -67.4 % Other income and expenses, net -1,916 1,167 -264.2 %-12,510 -606 1964.4 % Operating gain (loss) -14,898 15,426 -196.6 %3,275 -10,711 n.m. Financial expenses -13,722 -16,907 -18.8 %-151,504 -72,641 108.6 % Finance income -50,239 13,457 -473.3 %20,195 28,589 -29.4 % Financial expenses, net -63,961 -3,450 1753.9 %-131,309 -44,052 198.1 % Income/Loss before taxes -78,859 11,976 -758.5 %-128,034 -54,763 133.8 % Deferred income tax and social contribution -52,096 -26,760 94.7 %-14,667 202 n.m. Current income tax and social contribution -3,959 -2,191 80.7 %-11,957 -6,210 92.5 % Income/Loss for the period -134,914 -16,975 694.8 %-154,658 -60,771 154.5 % Income/Loss attributable to Company Owners -134,860 -16,996 693.5 %-154,658 -61,004 153.5 % Non-controlling interests 54 -21 -357.1 %0 -233 -100.0 % Balance SheetDecember 31, 2023 (audited)December 31, 2024 (audited)(in thousands of reais) AssetsCurrent assets 250,331318,990 Cash and cash equivalents 63,742116,884 Trade and other receivables 148,784171,190 Recoverable assets 28,05819,572 Prepayments 5,5715,157 Other assets 4,1766,187 Non-current assets 1,461,2331,424,564 Restricted cash 6,40310,891 Prepayments 1,119423 Deferred tax assets 91,97177,304 Property, plant and equipment 11,87915,350 Right-of-use of assets 2,5342,497 Intangible assets 1,347,3271,318,099 Total assets 1,711,5641,743,554December 31, 2023 (audited)December 31, 2024 (audited) LiabilitiesCurrent liabilities 607,374674,759 Trade and other payables 353,998445,804 Loans, borrowings and Debentures 36,19181,137 Liabilities from acquisitions 134,46690,920 Employee benefits 50,08521,109 Tax liabilities 19,03128,612 Lease liabilities 2,0561,511 Deferred revenue 11,5475,371 Derivative financial instruments -295 Non-current liabilities 215,243297,380 Liabilities from acquisitions 160,237189,886 Loans, borrowings 51,60545,718 Provisions for tax, labor and civil risks 1,721804 Lease liabilities 7521,309 Trade and other payables -15,528 Employee Benefits 6152,056 Derivative financial instruments -41,814 Taxes to be paid in installments 313265 Equity 888,947771,415 Capital 957,5251,007,522 Reserves 247,464230,901 Foreign currency translation reserve 3,1294,847 Other components of equity 2832,394 Accumulated losses (319,591)(474,249) Non-controlling interests 137- Total equity and liabilities 1,711,5641,743,554 IndebtednessInterest December 31, 2023 (audited)December 31, 2024 (audited)(in thousands of R$) Working capital 100% CDI+2.51% to6.55% and 8.60% 69,667114,762 Debentures 18.16 % 18,12912,093 Total87,796126,855 Cash FlowQ4FY2024 (non-audited) 2023 (restated)2024 (audited) 2023 (audited)(in thousands of R$) Net cash from (used in) operating activities 45,919 14,166107,771 162,547 Net cash used in investing activities -14,225 -20,833-62,618 -53,903 Net cash from (used in) financing activities -16,412 -45,5699,105 -143,766 Exchange rate change on cash and cash equivalents -1,060 -529-1,116 -1,379 Net (decrease) increase in cash and cash equivalents 14,222 -52,76553,142 -36,501 Special Note Regarding Non-GAAP Financial MeasuresThis press release presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA. A Non-GAAP financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. Non-GAAP financial measures do not have standardized meanings and may not be directly comparable to similarly titled measures adopted by other companies. These Non-GAAP financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We also believe that the disclosure of our Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA provides useful supplemental information to investors and financial analysts and other interested parties in their review of our operating performance. Potential investors should not rely on information not recognized under IFRS as a substitute for the IFRS measures of earnings, cash flows or profit (loss) in making an investment decision. The following table shows the reconciliation for our consolidated Non-GAAP Gross Profit and consolidated Non-GAAP Gross Margin:Q412M Consolidated 2024 (non-audited) 2023 (restated)2024 (audited) 2023 (audited)(in thousands of R$) Gross profit 36,571 110,272294,773 330,542 (+) Amortization of intangible assets acquired from business combinations 12,654 12,85050,746 52,061 Non-GAAP Adjusted Gross Profit(1) 49,225 123,122345,519 382,603 Revenue 231,436 217,014959,680 807,577 Gross Margin(2) 15.8 % 50.8 %30.7 % 40.9 % Non-GAAP Adjusted Gross Margin(3) 21.3 % 56.7 %36.0 % 47.4 % (1) We calculate Non-GAAP Adjusted Gross Profit as gross profit plus amortization of intangible assets acquired from business combinations.(2) We calculate gross margin as gross profit divided by revenue.(3) We calculate Non-GAAP Adjusted Gross Margin as Non-GAAP Adjusted Gross Profit divided by revenue. The following tables shows the reconciliation for the Non-GAAP Gross Profit and Non-GAAP Gross Margin for our SaaS and CPaaS business segments:Q412M SaaS Segment 2024 (non-audited) 2023 (restated)2024 (audited) 2023 (audited)(in thousands of R$) Gross profit 30,301 41,114128,383 136,280 (+) Amortization of intangible assets acquired from business combinations 12,654 12,85050,746 52,061 Non-GAAP Adjusted Gross Profit(1) 42,955 53,964179,129 188,341 Revenue 75,519 83,639318,693 295,012 Gross Margin(2) 40.1 % 49.2 %40.3 % 46.2 % Non-GAAP Adjusted Gross Margin(3) 56.9 % 64.5 %56.2 % 63.8 % (1) We calculate Non-GAAP Adjusted Gross Profit for our SaaS business segment as gross profit for our SaaS business segment plus amortization of intangible assets acquired from business combinations for our SaaS business segment.(2) We calculate gross margin for our SaaS business segment as gross profit for our SaaS business segment divided by revenue of our SaaS business segment.(3) We calculate Non-GAAP Adjusted Gross Margin for SaaS business segment as Non-GAAP Adjusted Gross Profit for our SaaS business segment divided by revenue for our SaaS business segment.Q412M CPaaS Segment 2024 (non-audited) 2023 (restated)2024 (audited) 2023 (audited)(in thousands of R$) Gross profit 6,270 69,158166,390 194,262 (+) Amortization of intangible assets acquired from business combinations 0 00 0 Non-GAAP Adjusted Gross Profit(1) 6,270 69,158166,390 194,262 Revenue 155,917 133,375640,987 512,565 Gross Margin(2) 4.0 % 51.9 %26.0 % 37.9 % Non-GAAP Adjusted Gross Margin(3) 4.0 % 51.9 %26.0 % 37.9 % (1) We calculate Non-GAAP Adjusted Gross Profit for our CPaaS business segment as gross profit for our CPaaS business segment plus amortization of intangible assets acquired from business combinations for our CPaaS business segment. (2) We calculate gross margin for our CPaaS business segment as gross profit for our CPaaS business segment divided by revenue of our CPaaS business segment.(3) We calculate Non-GAAP Adjusted Gross Margin for CPaaS business segment as Non-GAAP Adjusted Gross Profit for our CPaaS business segment divided by revenue for our CPaaS business segment. The following table shows the reconciliation for our Adjusted EBITDA and Normalized EBITDA:Q412M2024 (non-audited) 2023 (restated)2024 (audited) 2023 (audited)(in thousands of R$) Income/Loss for the period -134,914 -16,975-154,658 -60,771 Current and Deferred Income Tax 56,055 28,95126,624 6,008 Financial expenses, net 63,961 3,450131,309 44,052 Depreciation and Amortization 22,352 23,27192,019 87,807 Adjusted EBITDA(1) 7,454 38,69795,294 77,096 Earn-outs 423 1,594- 9,822 963 Non-Recurring Events -27,761 -Normalized EBITDA(2) 34,792 37,103105,116 76,133 (1) We calculate Adjusted EBITDA as loss for the period adjusted by income tax and social contribution (current and deferred), financial expenses, net, depreciation and the goodwill impairment. (2) We calculate Normalized EBITDA as the Adjusted EBITDA adjusted by non-recurring events and non-cash impacts from earn-out adjustments. View original content: SOURCE Zenvia
