ZENVIA Reports Q1 2024 Results
Zenvia Inc. (NASDAQ: ZENV) reported Q1 2024 results with revenues of BRL 212.6 million, up 18.8% year-over-year. The company achieved a Normalized EBITDA of BRL 23.5 million, a 200.2% increase from Q1 2023. Key highlights include:
- Soft launch of Zenvia Customer Cloud for select clients
- SaaS revenue grew 12.0% YoY to BRL 76.8 million
- CPaaS revenue increased 23.0% YoY to BRL 135.8 million
- Non-GAAP Adjusted Gross Margin decreased to 44.0% from 51.6% in Q1 2023
- Total active customers remained stable at 13,257
Zenvia reaffirmed its FY 2024 guidance, projecting revenues of BRL 930-970 million and Normalized EBITDA of BRL 120-140 million. The company also announced the hiring of a new Chief Revenue Officer to drive profitable growth and oversee the rollout of Zenvia Customer Cloud.
- Revenue increased 18.8% YoY to BRL 212.6 million
- Normalized EBITDA grew 200.2% YoY to BRL 23.5 million
- CPaaS revenue up 23.0% YoY to BRL 135.8 million
- SaaS revenue increased 12.0% YoY to BRL 76.8 million
- Soft launch of Zenvia Customer Cloud platform
- Hired new Chief Revenue Officer to drive growth initiatives
- Reaffirmed FY 2024 guidance with projected revenue growth of 15-20%
- Non-GAAP Adjusted Gross Margin decreased to 44.0% from 51.6% in Q1 2023
- SaaS Non-GAAP Adjusted Gross Margin declined 11.3 percentage points YoY to 56.4%
- Net loss for the period increased to BRL 55.9 million from BRL 16.8 million in Q1 2023
- Cash balance decreased 55.0% YoY to BRL 71.5 million
- Net cash used in operating activities was BRL 12.9 million compared to BRL 99.6 million generated in Q1 2023
Insights
Zenvia Inc.'s Q1 2024 financial results reveal a mixed performance. Revenue growth is a positive highlight with an 18.8% increase year-over-year, primarily driven by a 23% growth in CPaaS and a 12% growth in SaaS. However, it's important to note the gross margin decline from 44.1% to 38%, indicating potential cost pressures or pricing challenges. Additionally, while the Normalized EBITDA surged by 200.2% to BRL 23.5 million, the company's overall loss increased significantly from BRL 16.8 million to BRL 55.9 million, which could concern investors focusing on profitability. The cash balance also fell by 55%, signaling potential liquidity constraints. The increase in active customers in the SaaS segment (up by 11%) is encouraging, yet the decrease in the CPaaS segment (down by 12.2%) may offset this optimism. For retail investors, the short-term outlook appears cautious due to the significant net loss and lower cash reserves, although the long-term growth prospects remain intact with the company's strategic initiatives such as the Zenvia Customer Cloud and Generative AI Chatbot.
The soft launch of Zenvia Customer Cloud is a strategic move likely to shape the company's future. This unified, multichannel platform aims to enhance customer experience management by integrating automation, communication and customer insights. For B2C companies, this solution promises to streamline operations and improve sales productivity, making it a competitive offering in the CX SaaS market. Additionally, the recent introduction of the Generative AI Chatbot marks a significant technological advancement. This chatbot simplifies development and integration processes, making advanced AI-driven customer service accessible to businesses of all sizes. While these innovations are promising, their actual impact will depend on successful implementation and market adoption. Investors should watch how these products perform and contribute to revenue growth in subsequent quarters.
Zenvia's strategic decisions, such as the hiring of a Chief Revenue Officer and the reorganization of business areas, reflect a proactive approach to drive integrated customer experiences and international expansion. This consolidation strategy, focusing on customer profiles rather than solutions, aims to strengthen the company's market position and enhance profitability. The recent R$ 40 million funding raised will support these initiatives, but the company must manage its debt carefully given the lower cash reserves. The emphasis on expanding large enterprise clients could offer stable revenue streams, albeit with thinner margins, as observed. For retail investors, understanding these strategic shifts is important to gauge the company's trajectory. While the efforts to boost growth and profitability are evident, the execution risk and financial health must be closely monitored.
Normalized EBITDA of
Strict cost control led G&A as % of revenues to
SÃO PAULO, July 15, 2024 /PRNewswire/ -- Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX solution in
Cassio Bobsin, Founder & CEO of ZENVIA, said: "The highlight of this first quarter of 2024 was the soft launch of Zenvia Customer Cloud for select clients. This platform represents the future of our CX SaaS solutions and fulfills the plan outlined three years ago, in our IPO. Zenvia Customer Cloud is a unified multichannel solution that empowers B2C companies to sell more and serve better with full automation, integration and communication across the customer journey. With this solution fully deployed, we will be ready to unlock solid and profitable growth while gaining actionable insights about our customers with AI-enabled automation, boosting productivity for the whole journey."
Shay Chor, CFO & IRO of ZENVIA, said: "Our first quarter 2024 results came in line with our expectations, with a combination of revenue growth and strict expense control that resulted in an EBITDA of
Key Financial Metrics (BRL MM and %) | Q1 2024 | Q1 2023 | YoY |
Total Active Customers(1) | 13,257 | 13,292 | -0.3 % |
Revenues | 212.6 | 179.0 | 18.8 % |
Gross Profit | 80.9 | 78.9 | 2.4 % |
Gross Margin | 38.0 % | 44.1 % | -6.1p.p. |
Non-GAAP Adjusted Gross Profit(2) | 93.6 | 92.5 | 1.3 % |
Non-GAAP Adjusted Gross Margin(3) | 44.0 % | 51.6 % | -7.6p.p. |
Operating Loss (EBIT) | -9.4 | -12.3 | -23.9 % |
Adjusted EBITDA(4) | 13.4 | 7.8 | 71.6 % |
Normalized EBITDA(5) | 23.5 | 7.8 | 200.2 % |
Loss for the Period | (55.9) | (16.8) | n.m. |
Cash Balance | 71.5 | 159.0 | -55.0 % |
Net cash flow from (used in) operating activities | (12.9) | 99.6 | n.m. |
(1) | 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. |
(2) | For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below. |
(3) | We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue. |
(4) | For a reconciliation of our Adjusted EBITDA to Loss for the Period, see Selected Financial Data section below. |
(5) | For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below. |
Highlights Q1 2024
- Revenues totaled
BRL 212.6 million , up18.8% when compared toBRL 179.0 million in Q1 2023 as a result of both SaaS (+12% YoY) and CPaaS (+23% ) expansion. CPaaS expanded SMS volumes mainly with large enterprises, while SaaS saw growth from both SMBs and large enterprises, with a stronger participation from the latter. - Non-GAAP Adjusted Gross Profit of
BRL 93.6 million was up1.3% YoY while Non-GAAP Adjusted Gross Margin was down 7.6 percentage points to the expected level of44.0% YoY as highlighted in our guidance for 2024. This decrease is due to:- (i) Higher mix of CPaaS in the period, mainly from large enterprises with lower margins; and
- (ii) Lower SaaS margins, which also grew in large enterprises with lower margins, combined with an increase in infrastructure costs related to the final phase of integration of acquired companies.
- Total number of active customers remained unchanged at 13.3k, being 7.1k from SaaS and 6.5k from CPaaS.
- Normalized EBITDA was positive
BRL 23.5 million in the quarter, up200.2% from Q1 2023, benefited by higher revenues and expense control. - On March 11, 2024, we soft launched Zenvia Customer Cloud for select clients. The platform will be rolled out to the whole client base throughout the year. Zenvia Customer Cloud is a unified, multichannel solution that centralizes and stores customer data, facilitating management, communication, and relationship building with end consumers, enabling companies to manage and provide personalized, engaging, and seamless experiences across the customer journey.
Subsequent Events
- By the end of April 2024, Zenvia raised
R in additional funding with local Brazilian banks, following the liabilities management announced in February.$ 40 million - On May 2, 2024, Zenvia announced the hiring of Mr. Gilsinei (Gil) Hansen for the newly-created role of Chief Revenue Officer (CRO), reporting to Cassio Bobsin. The new role was created to consolidate the current segments into one single Business area which will be responsible for the entire customer journey. The new area will be organized by customer profile/segment instead of by solution/product, with a focus on strengthening the Company's integrated offering, improving experiences for all customers, and driving profitable growth. Mr. Hansen will also oversee two important growth initiatives: the rollout of Zenvia Customer Cloud and the Company's international expansion.
- On June 20, 2024, Zenvia launched its Generative AI Chatbot. A game-changing solution that revolutionizes chatbot development, making it as simple and intuitive as a personal interaction and accessible to businesses of all sizes looking to improve and automate customer service. Key highlights include easy customization and efficient integration with multiple communication channels, ensuring a superior solution for all customer needs.
SaaS Business
SaaS Key Operational & Financial Metrics (BRL MM and %) | Q1 2024 | Q1 2023 | YoY |
Revenues | 76.8 | 68.6 | 12.0 % |
Gross Profit | 30.6 | 32.9 | -7.1 % |
Gross Margin | 39.8 % | 48.0 % | -8.2p.p. |
Non-GAAP Adjusted Gross Profit (1) | 43.4 | 46.4 | -6.6 % |
Non-GAAP Adjusted Gross Margin(2) | 56.4 % | 67.7 % | -11.3p.p. |
Total Active Customers(3) | 7,139 | 6,446 | 10.8 % |
(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. |
In Q1 2024, our SaaS business Revenue went up
As a result, Q1 2024 Non-GAAP Adjusted Gross Profit was down
CPaaS Business
CPaaS Key Operational & Financial Metrics (BRL MM and %) | Q1 2024 | Q1 2023 | YoY |
Revenues | 135.8 | 110.5 | 23.0 % |
Non-GAAP Adjusted Gross Profit (1) | 50.3 | 46.0 | 9.3 % |
Non-GAAP Adjusted Gross Margin(2) | 37.0 % | 41.7 % | -4.7p.p. |
Total Active Customers(3) | 6,458 | 7,358 | -12.2 % |
(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. |
Our CPaaS business reported Net Revenues of
Consolidated Financial Results
Revenue
Consolidated revenues in Q1 2024 totaled
Profitability
Our Non-GAAP Adjusted Gross Profit increased
Adjusted EBITDA in Q1 2024 was positive
Reiterating FY 2024 Guidance
FY 2024 Guidance | |
Revenue | BRL$930 - |
Y/Y Growth | |
Non-GAAP Adjusted Gross Margin | |
Normalized EBITDA | BRL |
Conference Call
In the following week, the Company will upload the presentation and pre-recorded remarks to its investor relations website. The IR team will be available for any questions.
Additional information regarding Zenvia can be found at https://investors.zenvia.com.
Contacts
Investor Relations Caio Figueiredo Fernando Schneider | Media Relations – FG-IR Fabiane Goldstein – (954) 625-4793 – fabi@fg-ir.com
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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 13,000 customers and operations throughout
Forward-Looking Statements
The preliminary fourth quarter and full year 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 2024.
INCOME STATEMENT | |||
Q1 | |||
2024 | 2023 | Variation | |
(non-audited) | (restated) | ||
(in thousands of R$) | ( %) | ||
Revenue | 212,636 | 179,047 | 18.8 % |
Cost of services | (131,779) | (100,098) | 31.6 % |
Gross profit | 80,857 | 78,949 | 2.4 % |
Selling and marketing expenses | (27,359) | (27,442) | -0.3 % |
General and Administrative expenses | (31,270) | (31,447) | -0.6 % |
Research and development expenses | (14,796) | (14,004) | 5.7 % |
Allowance for expected credit losses | (5,431) | (18,269) | -70.3 % |
Other income and expenses, net | (11,353) | (83) | n.m. |
Operating loss | (9,352) | (12,296) | -23.9 % |
Financial expenses | (65,487) | (18,724) | 249.7 % |
Finance income | 5,283 | 2,625 | 101.3 % |
Financial expenses, net | (60,204) | (16,099) | 274.0 % |
Loss before taxes | (69,556) | (28,395) | 145.0 % |
Deferred income tax and social contribution | 16,083 | 11,846 | 35.8 % |
Current income tax and social contribution | (2,420) | (218) | 1010.1 % |
Loss for the period | (55,893) | (16,767) | 233.4 % |
Loss for the period attributable to Owners of the Company | (56,011) | (16,839) | 232.6 % |
Non-controlling interests | 118 | 72 | 63.9 % |
BALANCE SHEET | ||
31-Dec-23 | 31-Mar-24 | |
(audited) | (non-audited) | |
Assets | ||
Current assets | 250,331 | 294,438 |
Cash and cash equivalents | 63,742 | 71,525 |
Trade and other receivables | 148,784 | 171,905 |
Tax assets | 28,058 | 34,983 |
Prepayments | 5,571 | 9,063 |
Other assets | 4,176 | 6,962 |
Non-current assets | 1,461,233 | 1,469,158 |
Restricted Cash | 6,403 | 6,578 |
Tax assets | - | 12 |
Prepayments | 1,109 | 865 |
Financial Investment | - | - |
Property, plant and equipment | 14,413 | 14,518 |
Intangible assets and goodwill | 1,347,327 | 1,339,121 |
Deferred Tax Assets | 91,971 | 108,054 |
Other Assets | 10 | 10 |
Total assets | 1,711,564 | 1,763,596 |
31-Dec-23 | 31-Mar-24 | |
(audited) | (non-audited) | |
Liabilities | ||
Current liabilities | 607,374 | 585,153 |
Loans, borrowings and Debentures | 36,191 | 33,696 |
Derivative financial instruments | ||
Trade and other payables | 353,998 | 367,851 |
Liabilities from acquisitions | 134,466 | 96,963 |
Tax liabilities | 18,846 | 16,779 |
Employee benefits | 50,085 | 59,257 |
Lease liabilities | 2,056 | 2,314 |
Deferred revenue | 11,547 | 8,156 |
Taxes to be paid in installments | 185 | 137 |
Non-current liabilities | 215,243 | 340,923 |
Liabilities from acquisitions | 160,237 | 193,919 |
Trade and other payables | - | - |
Loans, borrowings and Debentures | 51,605 | 59,844 |
Lease liabilities | 752 | 2,004 |
Provisions for tax, labor and civil risks | 1,721 | 1,412 |
Taxes to be paid in installments | 313 | 302 |
Employee Benefits | 615 | 1,036 |
Derivative financial instruments | - | 82,406 |
Equity | 888,947 | 837,520 |
Capital | 957,525 | 1,007,522 |
Reserves | 247,464 | 199,627 |
Translation reserve | 3,129 | 5,419 |
Accumulated losses | -319,591 | -375,602 |
Other components of equity | 283 | 283 |
Non-controlling interests | 137 | 271 |
Total equity and liabilities | 1,711,564 | 1,763,596 |
Q1 | ||
2024 | 2023 | |
(in thousands of R$) | ||
Net cash from (used in) operating activities | -12,865 | 99,560 |
Net cash used in investing activities | -12,429 | -2,703 |
Net cash from (used in) financing activities | 33,334 | -38,366 |
Exchange rate change on cash and cash equivalents | -257 | 288 |
Net (decrease) increase in cash and cash equivalents | 7,783 | 58,779 |
Interest | December 31, 2023 | March | |
(in thousands of R$) | |||
Working capital | 69,667 | 76,161 | |
Debentures | 18.16 % | 18,129 | 17,379 |
Total | 87,796 | 93,540 |
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. Flow 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 | 2024 | 2023 |
(in thousands of R$) | ||
Gross profit | 80,857 | 78,949 |
(+) Amortization of intangible assets acquired from business combinations | 12,785 | 13,511 |
Non-GAAP Gross Profit(1) | 93,642 | 92,460 |
Revenue | 212,636 | 179,047 |
Gross Margin(2) | 38.0 % | 44.1 % |
Non-GAAP Gross Margin(3) | 44.0 % | 51.6 % |
(1) | We calculate Non-GAAP Adjusted Gross Profit as gross profit plus amortization of intangible assets acquired from business combinations. |
(2) | We calculate gross margin as gross profit divided by revenue. |
(3) | We calculate Non-GAAP Adjusted Gross Margin as Non-GAAP Adjusted Gross Profit divided by revenue. |
The following tables shows the reconciliation for the Non-GAAP Gross Profit and Non-GAAP Gross Margin for our SaaS and CPaaS business segments:
Q1 | ||
SaaS Segment | 2024 | 2023 |
(in thousands of R$) | ||
Gross profit | 30,569 | 32,916 |
(+) Amortization of intangible assets acquired from business combinations | 12,785 | 13,511 |
Non-GAAP Gross Profit(1) | 43,354 | 46,427 |
Revenue | 76,820 | 68,582 |
Gross Margin(2) | 39.8 % | 48.0 % |
Non-GAAP Gross Margin(3) | 56.4 % | 67.7 % |
(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 | 2024 | 2023 |
(in thousands of R$) | ||
Gross profit | 50,300 | 46,033 |
(+) Amortization of intangible assets acquired from business combinations | 0 | 0 |
Non-GAAP Gross Profit(1) | 50,300 | 46,033 |
Revenue | 135,816 | 110,462 |
Gross Margin(2) | 37.0 % | 41.7 % |
Non-GAAP Gross Margin(3) | 37.0 % | 41.7 % |
(1) | We calculate Non-GAAP Adjusted Gross Profit for our CPaaS business segment as gross profit for our CPaaS business segment plus amortization of intangible assets acquired from business combinations for our CPaaS business segment. |
(2) | We calculate gross margin for our CPaaS business segment as gross profit for our CPaaS business segment divided by revenue of our CPaaS business segment. |
(3) | We calculate Non-GAAP Adjusted Gross Margin for CPaaS business segment as Non-GAAP Adjusted Gross Profit for our CPaaS business segment divided by revenue for our CPaaS business segment. |
The following table shows the reconciliation for our Adjusted EBITDA and Normalized EBITDA:
Q1 | ||
2024 | 2023 | |
(in thousands of R$) | ||
Loss for the period | -55,893 | -16,767 |
Current and Deferred Income Tax | -13,663 | -11,628 |
Financial expenses, net | 60,204 | 16,099 |
Depreciation and Amortization | 22,797 | 20,133 |
Adjusted EBITDA(1) | 13,445 | 7,837 |
Earn-outs | 10,081 | - |
Non-Recurring Events | - | - |
Normalized EBITDA(2) | 23,526 | 7,837 |
(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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SOURCE Zenvia
FAQ
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