Zenvia, one of the leading providers of cloud-based customer experience (CX) solutions in Latin America, that enable companies to create personalized experiences, enveloping and fluid throughout the entire customer journey, today released its operational and financial metrics for the third quarter of 2024 (3Q 2024) and for the nine months of 2024 (9M 2024).
Cassio Bobsin, founder and CEO of ZENVIA, comment: "The highlight of this quarter was the completion of the strategic plan we started in 2018, that allowed us to officially launch Zenvia Customer Cloud, a significant milestone in our commitment to enhancing the relationship between brands and their customers through practical and AI-driven solutions. Youearly adoptershave already noticed improvements in the quality of leads, in conversion rates and customer satisfaction, demonstrating the immediate value of this technology. At the same time, this launch is the foundation of Zenvia's SaaS-based CX strategy for the next five years. Furthermore, we have made progress in simplifying our operations and have become more efficient, resulting in a notable 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 more informed and personalized interactions with consumers, adding value to our customers and shareholders.”
Shay Chor, Financial Director and Investor Relations of Zenvia, affirms: "In this quarter, we accelerated our organic expansion with double-digit growth in both revenue and profitability. We also take advantage of specific temporary opportunities for revenue generation in our CPaaS segment, while in the SaaS segment we observe significant growth of SMEs. The combination of increased revenues with strict expense control allowed Zenvia to record the highest quarterly EBITDA in the last three years, what puts us in line to achieve theguidanceof the year. Finally, but no less important, we continue to take advantage of working capital opportunities to ensure the conversion of EBITDA into cash.”
| Key Financial Metrics(R$ million and %) | 3T2024 | 3T2023 | A/A | 9M2024 | 9M2023 | A/A |
| Revenue | 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 |
| Lucro/Prejuízo Operacional (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% |
| Normalized EBITDA(2) | 41,2 | 16,3 | 153,1% | 98,1 | 39,0 | 151,3% |
| Lucro/Prejuízo do Período | 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 the Gross Margin as Gross Profit divided by revenue
- In December 2023, the company identified that the provision for doubtful debts and the costs with amortization of intangibles were underestimated. The value was recalculated in the annual financial statements and Management retrospectively reviewed the first six months of 2023 for comparison purposes
- We define an Active Client as an account (based on a CNPJ) at the end of any period that has been a source of any type of revenue in the three previous months. Customers who did not generate revenue in the previous three months are classified as Inactive Customers
Q3 2024 Highlights
- The revenues totaled R$ 284,4 million, 30% increase compared to R$ 218,6 million in Q3 2023, as a result of the annual expansion of SaaS (+16%) and CPaaS (+37%). The CPaaS recorded a high volume, but temporary, with certain clients while SaaS grew mainly with small and medium-sized enterprises (SMEs)
- The Adjusted Gross Profit of R$ 102,5 million grew by 22% compared to the previous year, while the Adjusted Gross Margin decreased 2,3 percentage points, totaling 36,0%. This reduction is mainly due to
- Largest CPaaS mix in the period due to specific temporary peak volumes, that were timely for generating revenue. We do not expect the same level of volume in the fourth quarter of 2024
- Lower SaaS margins due to tighter margins in the Enterprise segment (large companies), that continue to reflect a highly competitive environment, more than compensating for the best mix of SMEs
- The total number of active customers reached 12,2 thousand in the quarter, being 6,4 thousand of SaaS and 6,0 thousand of CPaaS. As mentioned in the last quarter, this year-on-year reduction reflects a cleanup of the customer base that occurred in the second quarter of 2024
- The Normalized EBITDA was positive at R$ 41,2 million in the quarter, an increase of 153% compared to Q3 2023, benefiting from higher revenues and a strict control of expenses. This was our largest quarterly EBITDA in three years
- Cash balance of R$ 102,7 million, sequential increase of R$ 13,3 million as a direct result of our focus on preserving cash without harming our sustainable growth, including the continuous use of working capital instruments
- On October 15, Zenvia announced the official launch of Zenvia Customer Cloud, AI-based solution created to transform the customer experience, integrating solutions for all stages of the journey – from marketing and sales to service and relationship management. The Zenvia Customer Cloud allows companies to manage their interactions with customers through various channels, including WhatsApp, e-mail, SMS and applications, on a single and centralized platform. This unified approach simplifies the 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, positioning Zenvia for solid and profitable growth, while providing deeper insights into customer behavior
Highlights of 9M 2024
- The revenues totaled R$ 728,2 million, increase of 23% compared to R$ 590,6 million in 9M 2023, as a result of the annual expansion of SaaS (+15%) and CPaaS (+28%).
- The Adjusted Gross Profit of R$ 296,3 million grew 14% compared to the previous year, while the Adjusted Gross Margin fell 3,2 percentage points compared to the previous year, for 40,7%, due to the greater mix of CPaaS in revenues, combined with lower margins in the Enterprise segment of the SaaS business and with the increase in infrastructure costs related to the final phase of the integration of acquired companies
- The Normalized EBITDA was positive at R$ 98,1 million in the period, an increase of 151% compared to 9M 2023, what is in line with our expectations and for delivering the guidance of R$ 120 million to R$ 140 million for the year.
