Zenvia discloses results of the second quarter and first half of 2024

Zenvia, one of the leading cloud-based CX solutions providers in Latin America that empowers companies to create personalized, engaging, and seamless experiences throughout the customer journey, today released its operational and financial metrics for the second quarter of 2024 (2Q 2024) and the first half of 2024 (1H 2024).

Cassio Bobsin, founder and CEO of Zenvia, comments: “We maintained our focus throughout the quarter on implementing Zenvia Customer Cloud, with the launch very well-received by our customers. We also rolled out our innovative Generative AI Chatbot solution in June, enabling the creation and deployment of chatbots in minutes. In just two months since the launch, 99 chatbots have already been developed by companies in eight different sectors in Latin America. We are excited about the opportunities generated by these innovations and committed to growing and strengthening our market leadership position. Our team’s dedication and positive response from our customers reinforce our confidence in the transformative potential of these solutions and our ability to exceed expectations as we evolve.”

Shay Chor, CFO and Director of Investor Relations at Zenvia, states: “We delivered another quarter with solid revenue growth in this 2Q 2024, with margins within the guidance range, even considering that revenue growth was concentrated in both segments with large corporate clients, which typically have lower margins. It is worth noting the significant reduction in G&A expenses this quarter, which dropped by over 10% compared to the same period last year, positively impacting our EBITDA and attesting to our continued commitment to rigorous cost control. We remain committed to maintaining the Company’s strong momentum, expanding the Zenvia Customer Cloud and optimizing our operations with a focus on deleveraging the Company.”

Main Financial Metrics (R$ million and %)	2Q 2024	2Q 2023	Y/Y	1H 2024	1H 2023	Y/Y
Revenue	231.2	192.9	19.8%	443.8	372.0	19.3%
Gross Profit	87.5	70.4	24.4%	168.4	149.3	12.8%
Gross Margin	37.9%	36.5%	1.4p.p.	37.9%	40.1%	-2.2p.p.
Adjusted Non-GAAP Gross Profit	100.2	83.2	20.4%	193.8	175.7	10.3%
Adjusted Non-GAAP Gross Margin(1)	43.3%	43.1%	0.2p.p.	43.7%	47.2%	-3.6p.p.
Operating Profit (EBIT)	10.0	-7.0	n.a.	0.3	-19.3	n.a.
Adjusted EBITDA	33.6	14.9	125.5%	46.7	22.7	105.3%
Normalized EBITDA(2)	33.7	14.9	126.1%	56.8	22.7	150.0%
Net Income/Loss	(15.9)	(15.2)	5.1%	(72.2)	(31.9)	126.0%
Cash Balance	89.4	142.6	-37.3%	89.4	142.6	-37.3%
Net Cash Flow from (Used in) Operating Activities	18.1	32.8	-44.6%	5.3	132.3	-96.0%
Total Active Customers(3)	11,849	14,740	-19.6%	11,849	14,740	-19.6%

1. We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.
2. In December 2023, the company identified that the provision for doubtful debts and intangible asset amortization costs were underestimated. The amount was recalculated in the annual financial statements, and Management retrospectively reviewed the first six months of 2023 for comparison purposes.
3. We define an Active Customer as an account (based on a CNPJ) at the end of any period that has been a source of any revenue type in the previous three months. Customers who did not generate revenue in the previous three months are classified as Inactive Customers.

2Q 2024 Highlights

• Revenues totaled R$ 231.2 million, an increase of 19.8% compared to the R$ 192.9 million recorded in 2Q 2023, as a result of growth in both SaaS (+15.6% Y/Y) and CPaaS (+22.1% Y/Y). The growth in both segments predominantly came from large corporate clients.
• Adjusted Non-GAAP Gross Profit of R$ 100.2 million, a 20.4% Y/Y increase, with Adjusted Non-GAAP Gross Margin remaining relatively stable, increasing by 0.2 percentage points Y/Y to the expected level of 43.3%, as highlighted in our guidance for 2024. This reduction is due to:
• Higher CPaaS contribution in the period, mainly from large corporate clients with lower margins; and
• Lower SaaS margin, as the segment also grew more in large corporate clients with lower margins.
• The total number of active customers fell to 11.8 thousand, with 6.8 thousand from SaaS and 5.5 thousand from CPaaS. This reduction reflects the cleaning of the customer base, combining the implementation of Zenvia Customer Cloud – which unifies the SaaS customer contracts – with the decrease in smaller CPaaS customers who used low volumes of SMS and were less profitable.
• Normalized EBITDA of R$ 33.7 million in the quarter, an increase of 126.1% compared to 2Q 2023, benefiting from revenue growth and rigorous expense control.
• On June 19, we announced the launch of our Generative AI Chatbot, a revolutionary solution for chatbot development, making its development as simple and intuitive as a personal interaction and accessible to companies of all sizes seeking to enhance and automate customer service. The main highlights of the tool are easy customization and efficient integration with multiple communication channels, ensuring a superior solution for all customer needs. In two months since the launch, 99 chatbots have already been developed by companies in eight sectors in Latin America.
• The migration of the customer base to Zenvia Customer Cloud has already begun, and the expectation is that the implementation will be complete by the end of the year. So far, we have observed healthy levels of recurring revenue, churn, and cross-selling.

Highlights of 1H 2024

• Revenues totaled R$ 443.8 million, an increase of 19.3% compared to the R$ 372.0 million recorded in 1H 2023, due to the expansion of both SaaS (+13.8% Y/Y) and CPaaS (+22.5% Y/Y).
• Adjusted Non-GAAP Gross Profit of R$ 193.8 million, up 10.3% Y/Y, while Adjusted Non-GAAP Gross Margin fell 3.6 percentage points Y/Y to the expected level of 43.7%.
• Normalized EBITDA positive at R$ 56.8 million in the semester, up 150.0% compared to 1H 2023, in line with our expectations and with the guidance of R$ 120 million to R$ 140 million for the year 2024.