Zenvia Inc (ZENV) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic Growth ...

In This Article:

  • Revenue: BRL231 million in Q4 2024, up 7% year-over-year.

  • Zenvia Customer Cloud Revenue: BRL180 million for the full year 2024.

  • Gross Margin: Decreased to 21% in Q4 2024.

  • Adjusted Gross Profit: Declined 60% to BRL49 million in Q4 2024.

  • EBITDA: BRL35 million in Q4 2024, a 6% decline from Q4 2023.

  • Cash Balance: BRL117 million at the end of 2024.

  • G&A Expenses: Reduced to 12% of revenue in 2024 from 16% in 2023.

  • Headcount Reduction Savings: Projected cost savings of BRL30 million to BRL35 million in 2025.

  • CapEx: Expected to remain at the same level in 2025 as in 2024.

Release Date: May 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Zenvia Inc (NASDAQ:ZENV) launched the Zenvia Customer Cloud, a platform powered by AI-driven solutions and robust data analytics, which has already generated significant revenue and is expected to grow by 25% to 30% in 2025.

  • The company has successfully reduced G&A expenses over the past two years, improving the G&A to revenue ratio significantly.

  • Zenvia Inc (NASDAQ:ZENV) is focusing on organic growth and profitability through smarter operations and efficiency, leveraging AI and automation.

  • The international expansion, particularly in Argentina and Mexico, is performing well and contributing to the success of Zenvia Customer Cloud.

  • The shift to a volume-based pricing model is expected to enhance efficiency and unlock greater revenue generation potential.

Negative Points

  • Q4 2024 was challenging, with several headwinds impacting profitability despite revenue growth.

  • Adjusted gross profit declined significantly due to a higher mix of lower-margin CPaaS growth and a one-time SMS cost adjustment.

  • SaaS margins were pressured by a competitive environment and higher costs related to the launch of Zenvia Customer Cloud.

  • The company did not meet its EBITDA guidance for 2024, leading to frustration despite revenue growth.

  • There is uncertainty regarding the timeline and specifics of planned divestments, which are crucial for improving the capital structure.

Q & A Highlights

Q: Could you provide clarity on Zenvia's full year 2025 revenue outlook, specifically regarding the Customer Cloud segment's projected growth and its impact on traditional SaaS and CPaaS business lines? A: Shay Chor, CFO, explained that the Zenvia Customer Cloud, which generated BRL180 million in 2024, is expected to grow by 25% to 30% in 2025. The remaining SaaS businesses, generating BRL140 million, are anticipated to grow by 0% to 5%. The CPaaS business, which grew unexpectedly fast in 2024, is projected to grow between 5% and 8% in 2025.