ZENVIA Reports Q3 2024 and 9M 2024 Results
PR Newswire
SÃO PAULO, Nov. 18, 2024
Double-digit growth in both top-line and profitability, with strong EBITDA and Cashflow
LTM Normalized EBITDA of BRL 135.2 million, on track to meet 2024 guidance
Official launch of Zenvia Customer Cloud in October 2024
SÃO PAULO, Nov. 18, 2024 /PRNewswire/ -- Zenvia Inc. $(ZENV)$, the leading cloud-based CX solution in Latin America empowering companies to craft personal, engaging and fluid experiences throughout the customer journey, today reported its operational and financial metrics for the third quarter and nine months of 2024.
Cassio Bobsin, Founder & CEO of ZENVIA, said: "The highlight this quarter was the conclusion of the strategic plan we initiated back in 2018, that allowed us to officially launch the Zenvia Customer Cloud, a significant milestone in our commitment to enhancing customer relationships through practical, AI-driven solutions. Early adopters 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 foundation stone for Zenvia's CX SaaS strategy for the next five years. Alongside this milestone, we have made strides in streamlining our operations and becoming more efficient, resulting in a notable YoY reduction in G&A expenses as a percentage of revenue. The rollout of Zenvia Customer Cloud and our increased operational efficiency together reflect our focus on enabling more informed and personalized customer interactions while delivering value both to our clients and shareholders."
Shay Chor, CFO & IRO of ZENVIA, said: "This quarter, we accelerated our organic expansion with double-digit growth in both revenue and profitability. We were able to capitalize on unique temporary revenue opportunities in our CPaaS segment, while in the SaaS segment we saw significant growth with SMBs. At the same time, the combination of stronger revenues and strict expense control resulted in our highest quarterly EBITDA in three years, putting us on track to meet our full year guidance. Last but not least, we continue to take advantage of working capital opportunities to ensure EBITDA is converted into cash."
Key Financial Metrics (BRL MM and %) Q3 2024 Q3 2023 YoY 9M 2024 9M 2023 YTD Revenues 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. Non-GAAP Adjusted Gross Profit(1) 102.5 83.8 22.3 % 296.3 259.5 14.2 % Non-GAAP Adjusted Gross Margin(2) 36.0 % 38.3 % -2.3p.p. 40.7 % 43.9 % -3.2p.p. Operating Income/Loss $(EBIT)$ 17.9 -6.8 n.m 18.2 -26.1 n.m Adjusted EBITDA(3)(5) 41.2 15.7 162.7 % 87.8 38.4 128.8 % Normalized EBITDA(4)(5) 41.2 16.3 153.1 % 98.1 39.0 151.3 % Income/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(6) 12,152 13,624 -10.8 % 12,152 13,624 -10.8 % ---------------------- ------- ------- -------- ------- ------- -------- (1) For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below. (2) We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue. (3) For a reconciliation of our Adjusted EBITDA to Loss for the Period, see Selected Financial Data section below. (4) For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below. (5) In December 2023, the Company identified that the allowance for expected credit losses and cost with amortization of intangibles was understated. The calculation was reassessed in the annual financial statements and Management has retrospectively revised the first six months of 2023 for comparison purposes. (6) 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. The consolidated number of Total Active Customers doesn't reflect the sum of SaaS and CPaaS Clients, as there is cross selling between them.
Highlights Q3 2024
-- Revenues totaled BRL 284.4 million, up 30% when compared to BRL 218.6
million in Q3 2023 as a result of both SaaS (+16%) and CPaaS (+37%) YoY
expansion. CPaaS saw abnormally high temporary volumes with certain
customers, while SaaS grew mainly from small and medium businesses.
-- Non-GAAP Adjusted Gross Profit of BRL 102.5 million was up 22% YoY, while
Non-GAAP Adjusted Gross Margin was down by 2.3 percentage points landing
at 36.0%. This decrease is mainly due to:
(i) Higher CPaaS mix in the period due to the specific one-off volumes, which were opportunistic for revenue. We don't expect this same volume level in Q4 2024.
(ii) Lower SaaS margins due to tighter margins from enterprises, which continue to reflect a very competitive environment, more than offsetting the better small and medium business mix.
-- Total active customers were 12.2k, being 6.4k from SaaS and 6.0k from
CPaaS. As mentioned last quarter, this YoY decrease reflects a
client-base cleanup which took place in Q2 2024.
-- Normalized EBITDA was positive BRL 41.2 million in the quarter, up 153.1%
from Q3 2023, benefiting from higher revenues and strict expense control.
This was our highest quarterly EBITDA in three years.
-- Cash Balance of BR 102.7 million, a sequential increase of BRL 13.3
million as a direct result of our focus on cash preservation without
jeopardizing our sustainable growth, including the continued use of
working capital instruments.
-- On October 15, Zenvia announced the official launch of Zenvia Customer
Cloud, its comprehensive AI-powered solution designed to transform the
customer experience by integrating solutions across all customer journey
stages--from marketing and sales to service and relationship management.
The Zenvia Customer Cloud allows companies to manage customer
interactions across multiple channels, including WhatsApp, email, SMS,
and apps, within a single, centralized platform. This unified approach
streamlines processes, reducing the need for multiple software solutions,
while increasing productivity through intelligent automation. The
platform leverages AI-enabled automation to enhance productivity and
efficiency, positioning Zenvia for strong, profitable growth while
providing deeper insights into customer behavior.
Highlights 9M 2024
-- Revenues totaled BRL 728.2 million, up 23% when compared to BRL 590.6
million in 9M 2023 as a result of both SaaS (+15%) and CPaaS (+28%) YoY
expansion.
-- Non-GAAP Adjusted Gross Profit of BRL 296.3 million was up 14% YoY while
Non-GAAP Adjusted Gross Margin was down 3.2 percentage points YoY to
40.7%, due to a higher mix of CPaaS in revenues, combined with lower
margins with large enterprises in the SaaS business and an increase in
infrastructure costs related to the final phase of the integration of
acquired companies.
-- Normalized EBITDA was positive BRL 98.1 million in the period, up 151%
from 9M 2023, which is in line with our expectations and on track to
deliver the full year guidance of BRL 120 million to BRL 140 million.
SaaS Business
SaaS Key Operational &
Financial Metrics
(BRL MM and %) Q3 2024 Q3 2023 YoY 9M 2024 9M 2023 YTD
Revenues 87.6 75.3 16.3 % 243.2 211.4 15.0 %
Gross Profit 37.9 33.1 14.5 % 98.1 95.2 3.1 %
Gross Margin 43.3 % 44.0 % -0.7p.p. 40.3 % 45.0 % -4.7p.p.
Non-GAAP Adjusted
Gross Profit(1) 50.6 46.0 10.0 % 136.2 134.4 1.3 %
Non-GAAP Adjusted
Gross Margin(2) 57.7 % 61.0 % -3.3p.p. 56.0 % 63.6 % -7.6p.p.
---------------------- ------- ------- -------- ------- ------- --------
Net Revenue Expansion
(NRE) 110 % 102 % 8.0p.p. 110 % 102 % 8.0p.p.
---------------------- ------- ------- -------- ------- ------- --------
Total Active
Customers(3) 6,427 6,780 -5.2 % 6,427 6,780 -5.2 %
---------------------- ------- ------- -------- ------- ------- --------
(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.
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