ZENVIA Reports Q2 2023 and H1 2023 Results
- Q2 2023 revenues reached BRL 192.9 million, up 7.7% QoQ
- Gross profit grew over 9% YoY
- Non-GAAP gross margin expanded to 43.5%
- Positive EBITDA for four consecutive quarters
- SaaS segment revenue increased 5.0% YoY
- CPaaS segment revenue decreased 10.2% YoY
- None.
Strong H1 cash flow, solving the Funding Gap for 2023
Fourth consecutive quarter with positive EBITDA, and LTM EBITDA of
SÃO PAULO, Aug. 16, 2023 /PRNewswire/ -- Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX platform in
Cassio Bobsin, Founder & CEO of ZENVIA, said: "Our results in the second quarter of 2023 further underscore our continued effort to balance revenue growth with profitability. While the economic climate continues to adversely impact our SaaS segment, especially in the consulting business, which has a longer sales cycle, improving margins in CPaaS and a more favorable competitive landscape has helped counterbalance these headwinds. Artificial Intelligence continues to revolutionize the CX space, and we proudly stand at the forefront by implementing new AI-driven tools at a rapid pace into our platform. Our progress in the second quarter of 2023 demonstrates our adaptability and strategic foresight as we navigate this evolving market. In the upcoming quarters, we will focus on delivering key initiatives from our strategic roadmap, including structuring projects that will enable us to deepen our product bundling and cross-selling capabilities."
Shay Chor, CFO & IRO of ZENVIA, said: "Our financial results for the second quarter of 2023 tell a story of strategic growth and calculated decision making, as we focused specifically on resolving our funding gap while managing the correct balance of revenue growth and profitability. Revenues totaled
Key Financial Metrics | Q2 2023 | Q2 2022 | YoY | H1 2023 | H1 2022 | YoY |
Total Active Customers(1) | 13,406 | 14,740 | (9.1) % | 13,406 | 14,740 | (9.1) % |
Revenue (BRL MM) | 192.9 | 203.9 | (5.4) % | 372.0 | 401.5 | (7.4) % |
Gross Profit (BRL MM) | 71.1 | 66.0 | 7.7 % | 150.1 | 125.5 | 19.6 % |
Gross Margin | 36.9 % | 32.4 % | 4.5 p.p. | 40.3 % | 31.3 % | 9.0 p.p. |
Non-GAAP Gross Profit (BRL MM)(2) | 84.0 | 77.0 | 9.1 % | 176.5 | 143.8 | 22.7 % |
Non-GAAP Gross Margin (3) | 43.5 % | 37.8 % | 5.8 p.p. | 47.4 % | 35.8 % | 11.6 p.p. |
Loss of the Period (BRL MM)] | (14.1) | (32.0) | (55.9) % | (17.8) | (53.0) | (66.5) % |
Operating Loss (EBIT) (BRL MM) | (6.0) | (34.0) | (82.5) % | (2.1) | (58.2) | (96.3) % |
EBITDA(4) (BRL MM) | 15.2 | (15.3) | n.m | 39.2 | (24.7) | n/m |
Normalized EBITDA(5) (BRL MM) | 15.2 | (1.8) | n.m | 39.2 | (9.5) | n/m |
Cash Balance as of the end of the period (BRL MM) | 142.6 | 120.2 | 18.7 % | 142.6 | 120.2 | 18.7 % |
Net cash flow from (used in) operating activities (BRL MM) | 32.8 | 29.8 | 9.8 % | 132.6 | 13.4 | 887.7 % |
Non-GAAP Operating Cash Flow(6) (BRL MM) | 23.2 | 24.9 | (6.8) % | 118.5 | 8.5 | 1294.1 % |
- 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.
- For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below.
- We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.
- For a reconciliation of our EBITDA to Loss for the Period, see Selected Financial Data section below.
- For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below.
- For a reconciliation of our Non-GAAP Operating Cash Flow to Net Cash Flow From (Used In) Operating Activities, see Selected Financial Data section below.
Financial Highlights Q2 2023
- Revenues totaled
BRL 192.9 million , up7.7% when compared toBRL 179.0 million in Q1 2023 mainly from recovered SMS volumes with certain customers in CPaaS. - Solid Non-GAAP Gross Profit of
BRL 84.0 million , up9.1% YoY, with Non-GAAP Gross Margin expanding 5.8 p.p. to43.5% due to stronger margins across all segments. - Total number of active customers reached 13.4k, comprised of 6.9k from SaaS and 7.1k from CPaaS.
- EBITDA was positive
BRL 15.2 million , up from negativeBRL 15.3 million YoY
Financial Highlights H1 2023
- Revenue down
7.4% YoY toBRL 372.0 million due to lower SMS volumes - Strong Non-GAAP Gross Profit of
BRL 176.5 million , up22.7% YoY, with Non-GAAP Gross Margin expanding 11.6 p.p. to47.4% - EBITDA evolved to positive
BRL 39.2 million in H1 2023 from negativeBRL 24.7 million in H1 2022 – an increase ofBRL 63.9 million
Our Segments
We report Revenue and Non-GAAP Gross Profit broken down by SaaS and CPaaS. We believe this is the best way for all stakeholders to understand our business and growth levers.
SaaS Business
SaaS Key Operational & Financial Metrics | Q2 2023 | Q2 2022 | YoY | H1 2023 | H1 2022 | YoY |
Total Active Customers(1) | 6,888 | 6,593 | 4.5 % | 6,888 | 6,593 | 4.5 % |
Revenue (BRL MM) | 67.5 | 64.3 | 5.0 % | 136.0 | 114.8 | 18.5 % |
Gross Profit (BRL MM) | 29.1 | 30.3 | (3.9) % | 62.1 | 52.6 | 18.1 % |
Gross Margin | 43.2 % | 47.2 % | (3.9) p.p | 45.6 % | 45.8 % | (0.2) p.p |
Non-GAAP Gross Profit (BRL MM)(2) | 42.0 | 41.3 | 1.7 % | 88.4 | 70.9 | 24.6 % |
Non-GAAP Gross Margin(3) | 62.2 % | 64.2 % | (2.0) p.p | 65.0 % | 61.8 % | 3.2 p.p |
Net Revenue Expansion (NRE)(4) | 116 % | 120 % | (4.0) p.p | 116 % | 120 % | (4.0) p.p |
- 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.
- For a reconciliation of the Non-GAAP Gross Profit of our SaaS business segment to Gross Profit of our SaaS business segment, see Selected Financial Data section below.
- We calculate Non-GAAP 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.
- We believe that SaaS Net Revenue Expansion (NRE) rate is one of the most reliable indicators of our future revenue trends, as measuring our SaaS Net Revenue Expansion (NRE) rate on revenue generated from our customers provides a more meaningful indication of the performance of our efforts to increase revenue from existing customers. In order to calculate SaaS Net Revenue Expansion (NRE) rate, we first select the cohort of customers on a prior trailing twelve months period, sum up the total revenue of these customers for the applicable twelve-month period and divide this sum by the sum of the total revenue of these same customers on the prior trailing twelve-month period.
In Q2 2023, our SaaS business Revenue went up
This first half of 2023 saw an increase in downsell due to uncertainties related to the macro scenario in
In terms of our profitability metrics, the Non-GAAP Gross Profit for the quarter went up
We continue to explore the possibilities of Generative AI to enhance our SaaS solution portfolio, building off the integration of ChatGPT with Zenvia Attraction, which we announced in February 2023.
In May, we announced the integration of ChatGPT into our chatbot tool, which can now be trained to search through and reuse documents already created within the company, enabling a wider variety of questions to have automated answers, and opening many more doors for the future of the tool.
In June, we released Understand, a Chat GPT-3.5-based solution embedded into our customer service platform, Zenvia Service, that optimizes customer service operations with artificial intelligence. Understand empowers customer support representatives with an easy-to-use platform that delivers an automated report with quantitative analysis on customer interactions, among other AI-powered features to enhance the customer journey.
And last month, we announced Antifraud, an important new security layer in Zenvia Attraction, designed to reduce the transmission of fraudulent messages or harmful content made by users on Zenvia systems through AI detection.
SaaS Case Study: Ável
Ável Investimentos is one of the largest investment offices accredited to the XP network, providing clients with expert financial advice and exclusive products to manage and grow wealth. Like many companies in the financial sector, Ável faced the challenge of acquiring new customers and retaining its current base, and sought to overcome this challenge and improve the company's customer experience through Zenvia's CX platform.
Ável is a company that was born in the digital environment. As such, creating a personalized experience for their customers was of utmost importance. To do so, Zenvia delivered a bundled package of its CX platform to Ável, including Zenvia Attraction, Conversion, and chatbot to create a seamless process. Through Chatbot, Ável qualifies potential customers and verifies their interest in Ável's services. If interested, they are included in the Zenvia Attraction funnel, where Ável sends targeted, personalized messages to its CRM base. Attraction is linked to Conversion, so multiple agents can interact with the customer base simultaneously, serving them as best as possible.
From its partnership with Zenvia, Ável's customer retention has improved significantly, reducing churn by half from
(5) ARR is calculated by multiplying by 12 the recurring revenue of June 2023,
CPaaS Business
CPaaS Key Operational & Financial Metrics | Q2 2023 | Q2 2022 | YoY | H1 2023 | H1 2022 | YoY |
Total Active Customers(1) | 7,056 | 8,647 | (18.4) % | 7,056 | 8,647 | (18.4) % |
Revenue (BRL MM) | 125.5 | 139.6 | (10.2) % | 235.9 | 286.7 | (17.7) % |
Gross Profit (BRL MM) | 42.0 | 35.7 | 17.5 % | 88.0 | 72.9 | 20.7 % |
Gross Margin | 33.5 % | 25.6 % | 7.9 p.p | 37.3 % | 25.4 % | 11.9 p.p |
Non-GAAP Gross Profit (BRL MM)(2) | 42.0 | 35.7 | 17.5 % | 88.0 | 72.9 | 20.7 % |
Non-GAAP Gross Margin(3) | 33.5 % | 25.6 % | 7.9 p.p | 37.3 % | 25.4 % | 11.9 p.p |
- 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.
- For a reconciliation of the Non-GAAP Gross Profit of our CPaaS business segment to Gross Profit of our CPaaS business segment, see Selected Financial Data section below.
- We calculate Non-GAAP 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.
In the CPaaS business, as explained in previous quarters, during H2 2022 we have pushed for profitability, by increasing prices, which led to lower volumes, but also to higher Non-GAAP Gross Profit. Although we understand that the results of this strategy were positive, we have decided to offer a more balanced price and service level agreement (SLA) to certain strategic large enterprise customers, leading to a strong recovery in profitable SMS volumes as well as a decrease of 8.2 percentage point in Non-GAAP Gross Margin when compared to Q1 2023.
Our CPaaS business reported a
Our Non-GAAP Gross Profit increased
CPaaS Case Study
CVC Brasil (B3: CVCB3) is one of the largest travel groups in
CVC leveraged the full Zenvia platform, including SMS, RCS, WhatsApp and Chatbot solutions. While SMS is used for important messages, RCS and WhatsApp were chosen as exclusive channels for campaigns, which greatly enhance the brand's communication with the customer allowing them to receive offers in their preferred channels. In addition, CVC utilized Trusted SMS or Verified SMS to bring even more confidence and security to the customer.
The implementation of Zenvia's platform led to a dramatic change in CVC's and its brands' customer experience. Immediately after the implementation of the platform, the volume of SMS dispatches increased tenfold and campaigns began to reach
"We are always attentive to how we can improve and Zenvia is our partner in this strategy, always supporting us with technological innovation and improving the experience for each type of action and customer. After all, as CVC is boosting its data culture, Zenvia's platform becomes an ally, helping us to explore all possibilities for applying personalization and dynamism to our campaigns and journeys," stated Walter Arruda, CRM manager at CVC's.
Consolidated Financial Results
Revenue
Consolidated Revenue in Q2 2023 totaled
Profitability
Both SaaS and CPaaS segments contributed to the performance of our Non-GAAP Gross Profit, which increased
EBITDA in Q2 2023 was positive
Cash Management
We ended June 2023 with a solid cash balance of
FY 2023 Guidance
FY 2023 Guidance | |
Revenue (millions) | BRL |
Y/Y Growth | |
CPaaS Revenue | BRL |
SaaS Revenue | BRL |
Non-GAAP Gross Margin | |
Y/Y Expansion | -2.0p.p. - +1.0p.p. |
CPaaS Non-GAAP Gross Margin | ~ |
SaaS Non-GAAP Gross Margin | ~ |
EBITDA (millions) | BRL |
Conference Call
The Company will host a webcast on Thursday, August 17, 2023, at 10:00 am ET to discuss its operational and financial metrics. To access the webcast presentation, click here.
Additional information regarding Zenvia can be found at https://investors.zenvia.com.
Contacts
Investor Relations Caio Figueiredo Fernando Schneider | 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
The preliminary second quarter and first semester 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.
Our SaaS Portfolio
Zenvia has evolved its product portfolio organically and through acquisitions. Our platform now provides four SaaS solutions designed for each phase of the customer journey, starting with the first interaction with the brand all the way to a continuous relationship with the company. The SaaS segment carries higher Gross Margins and is the business from which most of our growth will come in the future. More than half of our margin already comes from our SaaS solutions, compared to three years ago when this percentage was zero.
Solution | Former | Focus |
Zenvia Attraction | Zenvia Campaign | Active multi-channel end-customer acquisition campaigns utilizing data intelligence and multi-channel automation |
Zenvia Conversion | Sirena | Converting leads into sales using multiple communication channels |
Zenvia Service | Movidesk | Enabling companies to provide amazing customer service with structured support across multiple channels |
Zenvia Success | Sensedata | Enabling companies to continuously engage customers based on their individual context, promoting healthy and long-lasting relationships, transforming data into insights |
Consulting | D1 | A Business Intelligence team that serves customer needs – mainly larger corporations - by using SaaS and CPaaS integrated and taylor-made solutions to enhance the end-consumer experience |
Our SaaS solutions can be used alone or combined, allowing companies to start a program in a matter of minutes, or they can go all the way to a fully integrated, automated, and intelligent customer journey. We also provide CX Tools that can be used to integrate and automate the customer experience in various ways. Our main tools are Application Programming Interface (APIs), a robot-like software program that performs automated, repetitive, pre-defined tasks (Bots), Natural-language understanding (NLU) and tools that enable companies to manage documents securely and safely during the end-consumer journey (Docs). The Quantum platform connects all our solutions and tools with the client's systems and processes. Companies can access our platform and start choosing from any solution or tool. As they go deeper into adopting multiple parts of the platform, we can break down all CX barriers and unlock the true potential for end customers.
SELECTED FINANCIAL DATA
The following selected financial information are preliminary, unaudited and are based on management's initial review of operations for the second quarter and first half of 2023.
Q2 | H1 | |||||
2023 | 2022 | Variation | 2023 | 2022 | Variation | |
(non- audited) | (non- audited) | (non- audited) | (non -audited) | |||
(in thousands of R$) | ( %) | (in thousands of R$) | ( %) | |||
Revenue | 192,919 | 203,897 | (5.4) % | 371,966 | 401,478 | (7.4) % |
Cost of services | (121,783) | (137,849) | (11.7) % | (221,881) | (276,006) | (19.6) % |
Gross Profit | 71,136 | 66,048 | 7.7 % | 150,085 | 125,472 | 19.6 % |
Selling and marketing expenses | (24,807) | (30,771) | (19.4) % | (52,249) | (56,190) | (7.0) % |
General and Administrative expenses | (37,348) | (39,607) | (5.7) % | (68,795) | (74,340) | (7.5) % |
Research and development expenses | (11,109) | (15,883) | (30.1) % | (25,113) | (29,193) | (14.0) % |
Allowance for credit losses | (3,379) | (1,957) | 72.7 % | (5,540) | (3,997) | 38.6 % |
Other income and expenses, net | (451) | (11,826) | n/m | (536) | (19,984) | n/m |
Operating loss | (5,958) | (33,996) | (82.5) % | (2,148) | (58,232) | (96.3) % |
Financial expenses | (17,125) | (17,860) | (4.1) % | (35,849) | (31,478) | 13.9 % |
Finance income | 3,987 | 9,650 | (58.7) % | 6,612 | 21,550 | (69.3) % |
Financial expenses, net | (13,138) | (8,210) | 60.0 % | (29,237) | (9,928) | 194.5 % |
Loss before income tax and social contribution | (19,096) | (42,206) | (54.8) % | (31,385) | (68,160) | (54.0) % |
Deferred income tax and social contribution | 7,793 | 10,936 | (28.7) % | 16,620 | 15,885 | 4.6 % |
Current income tax and social contribution | (2,788) | (703) | 296.6 % | (3,006) | (723) | 315.8 % |
Loss for the period | (14,091) | (31,973) | (55.9) % | (17,771) | (52,998) | (66.5) % |
June 30, 2022 | December 31, 2022 | June 30, 2023 | |
Assets | |||
Current assets | 309,142 | 313,184 | 393,953 |
Cash and cash equivalents | 120,159 | 100,243 | 142,579 |
Financial Investment | - | 8,160 | - |
Trade and other receivables | 150,792 | 156,012 | 195,860 |
Tax assets | 25,840 | 35,579 | 41,454 |
Prepayments | 4,645 | 6,369 | 6,147 |
Other assets | 7,706 | 6,821 | 7,913 |
Non-current assets | 1,581,499 | 1,490,939 | 1,490,274 |
Tax assets | 170 | 107 | 72 |
Prepayments | 3,097 | 2,207 | 1,619 |
Financial Investment | 7,509 | - | - |
Property, plant and equipment | 21,733 | 19,590 | 15,979 |
Intangible assets and goodwill | 1,532,490 | 1,377,232 | 1,364,090 |
Deferred Tax Assets | 16,415 | 91,769 | 108,504 |
Other Assets | 85 | 34 | 10 |
Total assets | 1,890,641 | 1,804,123 | 1,884,227 |
June 30, 2022 | December 31, 2022 | June 30, 2023 | |
Liabilities | |||
Current liabilities | 418,165 | 476,337 | 701,513 |
Loans, borrowings and Debentures | 68,906 | 89,541 | 92,545 |
Trade and other payables | 182,319 | 264,728 | 409,277 |
Liabilities from acquisitions | 100,791 | 60,778 | 122,106 |
Tax liabilities | 15,307 | 17,046 | 19,187 |
Employee benefits | 34,426 | 35,039 | 39,941 |
Lease liabilities | 2,203 | 1,992 | 2,002 |
Deferred revenue | 13,756 | 6,873 | 14,337 |
Taxes to be paid in installments | 457 | 340 | 247 |
Derivative and Financial Instruments | - | - | 1,871 |
Non-current liabilities | 325,675 | 374,546 | 247,720 |
Liabilities from acquisitions | 191,199 | 290,852 | 209,745 |
Trade and other payables | 715 | 1,092 | - |
Loans, borrowings and Debentures | 129,132 | 77,293 | 33,912 |
Lease liabilities | 3,662 | 2,824 | 1,801 |
Provisions for tax, labor and civil risks | 419 | 1,969 | 1,570 |
Taxes to be paid in installments | - | 454 | 357 |
Employee Benefits | 548 | 62 | 335 |
Equity | 1,146,801 | 953,240 | 934,994 |
Capital | 957,524 | 957,525 | 957,525 |
Reserves | 258,149 | 244,913 | 247,118 |
Translation reserve | - | 9,485 | 6,805 |
Accumulated losses | (68,540) | (258,587) | (276,484) |
Non-controlling interests | (331) | (96) | 30 |
Total equity and liabilities | 1,890,641 | 1,804,123 | 1,884,227 |
Q2 | H1 | |||
2023 | 2022 | 2023 | 2022 | |
(in thousands of R$) | ||||
Net cash from (used in) operating activities | 29,256 | 29,843 | 132,570 | 13,422 |
Net cash used in investing activities | (14,735) | (311,519) | (17,438) | (319,423) |
Net cash from (used in) financing activities | (27,434) | 959 | (69,914) | (135,207) |
Exchange rate change on cash and cash equivalents | (3,530) | 9,279 | (2,882) | (20,864) |
Net (decrease) increase in cash and cash equivalents | (16,443) | (271,438) | 42,336 | (462,072) |
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 Gross Profit, Non-GAAP Gross Margin, Non-GAAP Gross Profit for our SaaS business segment, Non-GAAP Gross Profit for our CPaaS business segment, Non-GAAP Gross Margin for our SaaS business segment, Non-GAAP Gross Margin for our CPaaS business segment, EBITDA, Normalized EBITDA and Non-GAAP Operating Cash Flow. 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 Gross Profit, Non-GAAP Gross Margin, Non-GAAP Gross Profit for our SaaS business segment, Non-GAAP Gross Profit for our CPaaS business segment, Non-GAAP Gross Margin for our SaaS business segment, Non-GAAP Gross Margin for our CPaaS business segment, EBITDA, Normalized EBITDA and Non-GAAP Operating Cash 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 Non-GAAP Gross Profit and Non-GAAP Gross Margin:
Q2 | H1 | |||
2023 | 2022 | 2023 | 2022 | |
(in thousands of R$) | ||||
Gross Profit | 71,136 | 66,048 | 150,085 | 125,472 |
(+) Amortization of intangible assets acquired from business combinations | 12,850 | 10,969 | 26,361 | 18,377 |
Non-GAAP Gross Profit(1) | 83,986 | 77,017 | 176,446 | 143,849 |
Revenue | 192,919 | 203,897 | 371,966 | 401,478 |
Gross Margin(2) | 36.9 % | 32.4 % | 40.3 % | 31.3 % |
Non-GAAP Gross Margin(3) | 43.5 % | 37.8 % | 47.4 % | 35.8 % |
(1) We calculate Non-GAAP 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 Gross Margin as Non-GAAP 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:
SaaS Segment | 2023 | 2022 | 2023 | 2022 |
(in thousands of R$) | ||||
Gross Profit | 29,144 | 30,320 | 62,060 | 52,560 |
(+) Amortization of intangible assets acquired from business combinations | 12,850 | 10,969 | 26,361 | 18,377 |
Non-GAAP Gross Profit(1) | 41,994 | 41,289 | 88,421 | 70,937 |
Revenue | 67,409 | 64,270 | 136,049 | 114,786 |
Gross Margin(2) | 43.2 % | 47.2 % | 45.6 % | 45.8 % |
Non-GAAP Gross Margin(3) | 62.3 % | 64.2 % | 65.0 % | 61.8 % |
(1) We calculate Non-GAAP Gross Profit for our SaaS business segment as gross profit for our SaaS business segment plus amortization of intangible assets acquired from business combinations for our SaaS business segment.
(2) We calculate gross margin for our SaaS business segment as gross profit for our Saas business segment divided by revenue of our SaaS business segment.
(3) We calculate Non-GAAP Gross Margin for SaaS business segment as Non-GAAP Gross Profit for our SaaS business segment divided by revenue for our SaaS business segment.
CPaaS Segment | 2023 | 2022 | 2023 | 2022 |
(in thousands of R$) | ||||
Gross Profit | 41,991 | 35,732 | 88,025 | 72,912 |
(+) Amortization of intangible assets acquired from business combinations | - | - | - | - |
Non-GAAP Gross Profit(1) | 41,991 | 35,732 | 88,025 | 72,912 |
Revenue | 125,508 | 139,628 | 235,917 | 286,692 |
Gross Margin(3) | 33.5 % | 25.6 % | 37.3 % | 25.4 % |
Non-GAAP Gross Margin(4) | 33.5 % | 25.6 % | 37.3 % | 25.4 % |
(1) We calculate Non-GAAP 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 Gross Margin for CPaaS business segment as Non-GAAP Gross Profit for our CPaaS business segment divided by revenue for our CPaaS business segment.
The following table shows the reconciliation for our EBITDA and Normalized EBITDA:
Q2 | H1 | |||
2023 | 2022 | 2023 | 2022 | |
(in thousands of R$) | ||||
Loss for the period | (14,093) | (31,973) | (17,771) | (52,998) |
(+) Current and Deferred Income Tax | (5,005) | (10,233) | (13,614) | (15,162) |
(+) Financial expenses, net | 13,138 | 8,210 | 29,237 | 9,928 |
(+) Depreciation and Amortization | 21,181 | 18,725 | 41,318 | 33,489 |
EBITDA(1) | 15,227 | (15,271) | 39,170 | (24,743) |
Earn-outs | 0 | 13,423 | 0 | 15,290 |
Normalized EBITDA | 15,227 | (1,848) | 39,170 | (9,453) |
(1) We calculate EBITDA as loss for the period adjusted by income tax and social contribution (current and deferred), financial expenses, net and depreciation.
(2) We calculate Normalized EBITDA as loss for the period adjusted by income tax and social contribution (current and deferred), financial expenses, net and depreciation and amortization plus non-cash impacts from earn-out adjustments.
The following table shows the reconciliation for our Non-GAAP Operating Cash Flow:
Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | |
Net cash flow from (used in) operating activities | 32,758 | 29,843 | 132,570 | 13,422 |
(-) Interest paid on loans and leases (paying interest and leases) | 5,200 | 6,682 | 11,560 | 14,383 |
(-) Net cash used in investment activities | (14,735) | (311,668) | (17,438) | (319,423) |
(-) Redemption of interest earning bank deposits | 0 | 0 | (8,160) | 0 |
(-) Acquisition of subsidiary, net of cash acquired | 0 | 300,075 | 0 | 300,075 |
Non-GaaP Operating Cash Flow (OCF) | 23,223 | 24,932 | 118,532 | 8,457 |
(1) We believe that Non-GAAP Operating Cash Flow is a good index to measure operational cash generation.
View original content:https://www.prnewswire.com/news-releases/zenvia-reports-q2-2023-and-h1-2023-results-301902953.html
SOURCE Zenvia Inc.
FAQ
What were Zenvia's Q2 2023 revenues?
What was the YoY growth in gross profit?
What was the Non-GAAP gross margin in Q2 2023?
Has Zenvia achieved positive EBITDA?
How did the SaaS segment perform in Q2 2023?