Zenvia, a leading provider of cloud-based customer service (CX) solutions in Latin America, enabling companies to create personalized, engaging and fluid experiences throughout the customer journey, today released its operational and financial metrics for the third quarter of 2024 (3Q 2024) and the nine months of 2024 (9M 2024).
Cassio Bobsin, founder and CEO of ZENVIA comments: “The highlight of this quarter was the completion of the strategic plan we started in 2018, which allowed us to officially launch Zenvia Customer Cloud, a significant milestone in our commitment to enhance the relationship of brands with their customers through practical and AI-driven solutions early adopters we have already seen improvements in lead quality, conversion rates and customer satisfaction, demonstrating the immediate value of this technology. At the same time, this launch is the basis of Zenvia's SaaS-based CX strategy for the next five years.In addition, we have moved forward in streamlining our operations and becoming more efficient, resulting in a noticeable reduction in G&A expenses as a percentage of revenue compared to the previous year. The launch of Zenvia Customer Cloud and the increase in our operational efficiency reflect our focus on enabling better informed and personalized interactions with consumers, adding value to our customers and shareholders.”
Shay Chor, Chief Financial and Investor Relations Officer, Zenvia, states: “This quarter, we accelerated our organic expansion with double-digit growth in both revenue and profitability.We also took advantage of one-off temporary revenue generation opportunities in our CPaaS segment, while in the SaaS segment we saw significant growth in SMEs. Combining increased revenues with strict expense tracking has enabled Zenvia to record the highest quarterly EBITDA of the last three years, which puts us on track to achieve the highest level of guidances of the year. Last but not least, we continue to leverage working capital opportunities to ensure the conversion of EBITDA into cash
| Main Financial Metrics(R$ million and %) | 3T2024 | 3T2023 | A/A | 9M2024 | 9M2023 | A/A |
| Recipe | 284,4 | 218,6 | 30,1% | 728,2 | 590,6 | 23,3% |
| Gross Profit | 89,8 | 70,9 | 26,6% | 258,2 | 220,3 | 17,2% |
| Gross Margin | 31,6% | 32,5% | - 1,1p.p. | 35,5% | 37,3% | - 2,1p.p. |
| Adjusted Gross Profit | 102,5 | 83,8 | 22,3% | 296,3 | 259,5 | 14,2% |
| Adjusted Gross Margin(1) | 36,0% | 38,3% | - 2,3p.p. | 40,7% | 43,9% | -3,2p.p. |
| Profit/Operational Loss (EBIT) | 17,9 | -6,8 | n.m. | 18,2 | -26,1 | n.m. |
| Adjusted EBITDA | 41,2 | 15,7 | 162,7% | 87,8 | 38,4 | 128,8% |
| EBITDA Normalized(2) | 41,2 | 16,3 | 153,1% | 98,1 | 39,0 | 151,3% |
| Profit/Loss of the Period | 52,4 | -11,9 | n.m. | (19,7) | (43,8) | -54,9% |
| Cash Balance | 102,7 | 116,5 | -11,9% | 102,7 | 116,5 | -11,9% |
| Net cash flow from (used in) operating activities | 56,6 | 16,1 | 252,3% | 61,9 | 148,4 | -58,3% |
| Total Active Customers(3) | 12.152 | 13.624 | -10,8% | 12.152 | 13.624 | -10,8% |
- We calculate Gross Margin as Gross Profit divided by revenue.
- In December 2023, the company identified that the provision for doubtful debtors and the costs of amortization of intangibles were underestimated.The amount was recalculated in the annual financial statements and Management retrospectively reviewed the first six months of 2023 for comparison purposes.
- We define Active Customer as an account (based on a CNPJ) at the end of any period that has been the source of any type of revenue in the previous three months.
Highlights of 3Q 2024
- Revenues totaled R$ 284.4 million, up 30% compared to R$ 218.6 million in 3Q 2023 as a result of the annual expansion of SaaS (+16%) and CPaaS (+37%). CPaaS recorded a high but temporary volume with certain customers while SaaS grew mainly with small and medium-sized enterprises (SMEs).
- Adjusted Gross Profit of R$ 102.5 million grew by 22% from the previous year, while Adjusted Gross Margin decreased by 2.3 percentage points, totaling 36.0%. This reduction is mainly due to:
- Higher CPaaS mix in the period due to specific temporary point volumes, which were timely for revenue generation.We do not expect this same level of volume in the fourth quarter of 2024.
- Lower SaaS margins due to tighter margins in the Enterprise segment (large companies), which continue to reflect a very competitive environment, more than offsetting the best mix of SMEs.
- The total active customers reached 12.2 thousand in the quarter, 6.4 thousand of SaaS and 6.0 thousand of CPaaS. As mentioned in the last quarter, this reduction in the year-on-year comparison reflects a cleanup of the customer base that occurred in the second quarter of 2024.
- Normalized EBITDA was positive at R$ 41.2 million in the quarter, up 153% from 3Q 2023, benefiting from higher revenues and strict expense tracking.This was our highest quarterly EBITDA in three years.
- R$ 102.7 million cash balance, sequential increase of R$ 13.3 million as a direct result of our focus on cash preservation without hampering our sustainable growth, including the continued use of working capital instruments.
- On October 15, Zenvia announced the official launch of Zenvia Customer Cloud, an AI-based solution built to transform the customer experience by integrating solutions for all stages of the journey from marketing and sales to service and relationship management. Zenvia Customer Cloud enables companies to manage their interactions with customers through a variety of channels, including WhatsApp, email, SMS and applications, into a single, centralized platform.This unified approach simplifies processes, reducing the need for multiple software solutions and increasing productivity through intelligent automation. The platform leverages AI-enabled automation to increase productivity and efficiency while also positioning Zen as a solid customer behavior.
Highlights of the 9M 2024
- Revenues totaled R$ 728.2 million, up 23% compared to R$ 590.6 million in the 9M 2023 as a result of the annual expansion of SaaS (+15%) and CPaaS (+28%).
- Adjusted Gross Profit of R$ 296.3 million grew 14% from the previous year, while Adjusted Gross Margin fell 3.2 percentage points from the previous year to 40.7% due to the higher CPaaS mix in revenues, combined with lower Enterprise segment margins in the SaaS business and increased infrastructure costs related to the final phase of integration of the acquired companies.
- Normalized EBITDA was positive at R$ 98.1 million in the period, an increase of 151% over 9M 2023, which is in line with our expectations and for delivery of guidance from R$ 120 million to R$ 140 million in the year.
