ZENVIA announces agreement with SenseData to extend payments

Rhea-AI Summary

Zenvia Inc. (NASDAQ: ZENV) announced the successful renegotiation of payment terms related to the SenseData acquisition, reducing a payment obligation from R$23.7 million to R$18 million, with the remainder spread over 12 installments in 2023. This agreement significantly lowers total earnout payments from an estimated BRL 444 million to BRL 81 million by the end of 2023. CFO Shay Chor stated that this strategic move focuses on enhancing profitability and capital structure while maximizing cash flow.

Positive

• Total earnout from acquisitions reduced from BRL 444 million to BRL 81 million by end of 2023.
• Payment obligations extended, aiding in cash flow management.

Negative

• Payment structure depends on achieving gross profit targets, introducing uncertainties.

Amounts due at the end 2023 were diluted over two years

SÃO PAULO, Dec. 21, 2022 /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 the successful renegotiation of its remaining payments linked to the SenseData acquisition.

Shay Chor, Zenvia's CFO, stated: "With this agreement with SenseData, we close the year with all earn out payments extended, positively impacting our funding gap and significantly reducing payments until the end of 2023. This allows us to focus on our profitability path and improving the company's capital structure while maximizing cashflow." 

The payment of R$23.7 million, due at the end of December 2022, was reduced to R$18.0 million, with the remaining amount to be paid in 12 fixed installments over 2023, and subject to accrued interests in line with Zenvia's current bank financing costs. Also, for 2023, the total amount of remaining payments will continue to be related to the achievements of gross profit targets, as defined in the original agreement. Zenvia agreed to pay a fixed amount of R$20 million in December 2023, with the remaining amount to be paid in 24 instalments, subject to accrued interests in line with Zenvia's current bank financing costs. SenseData´s founding partners will continue to manage the company as per the original agreement, until the end of 2023.

With the conclusion of this transaction, the total earnout for the acquisition of Sirena, D1, Movidesk and SenseData to be paid until the end of 2023 was reduced from estimated BRL 444 million to BRL 81 million, with the balance to be paid in installments until the end of 2026.

Contacts

Investor Relations Caio Figueiredo Fernando Schneider ir@zenvia.com

Media Relations – Grayling Lucia Domville – (646) 824-2856 – lucia.domville@grayling.com Fabiane Goldstein – (954) 625-4793 – fabiane.goldstein@grayling.com

About ZENVIA

ZENVIA is driven by the purpose of empowering companies to create unique experiences for end-consumers through its unified CX SaaS end-to-end platform. ZENVIA empowers companies to transform their existing customer experience from non-scalable, physical and impersonal interactions into highly scalable, digital-first and hyper-contextualized experiences across the customer journey. ZENVIA's unified end-to-end CX SaaS platform provides a combination of (i) SaaS focused on campaigns, sales teams, customer service and engagement, (ii) tools, such as software application programming interfaces, or APIs, chatbots, single customer views, journey designers, documents composer and authentication and (iii) channels, such as SMS, Voice, WhatsApp, Instagram and Webchat. Its comprehensive platform assists customers across multiple use cases, including marketing campaigns, customer acquisition, customer onboarding, warnings, customer services, fraud control, cross-selling and customer retention, among others. ZENVIA's shares are traded on Nasdaq, under the ticker ZENV.

Forward-Looking Statements

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.

View original content:https://www.prnewswire.com/news-releases/zenvia-announces-agreement-with-sensedata-to-extend-payments-301708650.html

SOURCE Zenvia Inc.

FAQ

What recent financial agreement has Zenvia reached regarding the SenseData acquisition?

Zenvia renegotiated its payment terms with SenseData, reducing the total earnout from BRL 444 million to BRL 81 million by the end of 2023.

How much did Zenvia reduce its payment obligation for SenseData?

Zenvia reduced its payment obligation from R$23.7 million to R$18 million due at the end of December 2022.

What are the implications of Zenvia's payment restructuring for its financial health?

The restructuring allows Zenvia to manage its cash flow better and focus on profitability, but it ties future payments to gross profit targets.

When will Zenvia make its fixed payment of R$20 million related to SenseData?

Zenvia is set to pay a fixed amount of R$20 million in December 2023.

What is the impact of the payment extension on Zenvia's cash flow?

The payment extension is expected to positively impact Zenvia's cash flow by reducing immediate payment obligations.