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^{(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 Q4 2024

• Revenues totaled BRL 231 million, up 7% when compared to BRL 217 million in Q4 2023, as a result of CPaaS (+17%) YoY expansion offset by the 10% drop in SaaS, mostly due to an 11% decrease in revenues from Enterprise customers. Non-GAAP Adjusted Gross Profit of BRL 49 million was down 60% YoY, while Non-GAAP Adjusted Gross Margin landed at 21%. This decrease is mainly explained by:

(i)  Higher CPaaS mix in the period, due to strong growth with lower margins. There was also an impact of BRL 27.8 million from SMS cost adjustments related to the full year, that was recorded only this quarter instead of diluted over the periods. Excluding this impact, CPaaS Adjusted Gross Margin would have been 21.8%, which is closer to the 25-30% range for expected gross margins, instead of the reported 4.0%. We expect margins to normalize over the course of 2025.

(ii)  Lower SaaS margins due to tighter margins from Enterprises, which continue to reflect a very competitive environment, more than offsetting the improved SMB mix, coupled with higher infrastructure costs associated with the final push to launch Zenvia Customer Cloud during the first half of the year.

• Total active customers were 10.6k, being 5.9k from SaaS and 5.0k from CPaaS.

• Our G&A Expenses went down 37% YoY in Q4 to BRL 19 million—less than half from two years ago—, bringing G&A as a percentage of revenues to 8.3%, down 5.7 percentage points from the 14.0% reported in the same period of 2023. It is worth noting that when we began our streamlining efforts, in mid-Q4 2022, the G&A-to-revenue ratio stood at 22.8%, so this drop represents a reduction of 14.7 percentage points over the whole period.

• Normalized EBITDA was positive BRL 35 million in the quarter, down 6% from Q4 2023, mainly due to the lower gross profit, despite the stricter expense control and drop in G&A. The Q4 2024 results were also impacted by a BRL 27.8 million expense from SMS cost adjustments related to the full year, that was recorded only this quarter instead of diluted over the periods. For Q4 2024, we are considering this as a non-recurring event and excluding it from Normalized EBITDA. Please refer to the reconciliation table for more details.

• Cash Balance of BR 117 million, a sequential increase of BRL 14 million as a direct result of our focus on cash preservation without jeopardizing our sustainable growth, including the continued use of working capital instruments.

Highlights 2024

• Revenues totaled BRL 960 million, up 19% compared to BRL 808 million in 2023, as a result of both SaaS (+8%) and CPaaS (+25%) YoY expansion.

• Non-GAAP Adjusted Gross Profit of BRL 345 million was down 10% YoY with Non-GAAP Adjusted Gross Margin down by 11 percentage points YoY to 36.0%, mainly explained by the higher mix of CPaaS in revenues, combined with lower margins from both the CPaaS and SaaS business.

• Our G&A Expenses ended the year at BRL 114 million, down 11% YoY, bringing G&A as a percentage of revenues to 11.9%—a decrease of 4.1 percentage points from the 16.0% reported in the same period of 2023. Two years ago, the G&A-to-revenue ratio stood at 19.5%, reflecting a reduction of 7.6 percentage points over the period.

• Normalized EBITDA reached BRL 105 million in the period, up 38% from 2023, but below the lower end of the full-year guidance range of BRL 120 million to BRL 140 million.

• Cash Balance of BR 117 million was up by BRL 53 million YoY as a direct result of our focus on cash preservation without jeopardizing our sustainable growth, including the continued use of working capital instruments.

Subsequent Events

• On January 13, Zenvia announced the beginning of its new strategic cycle, centered on its newly launched solution—Zenvia Customer Cloud. Introduced in October 2024, the platform represents the deep integration of the Company's CX AI SaaS tools, delivering a fully unified customer experience solution. Supported by Product-Led Growth (PLG) strategies and international expansion, Zenvia Customer Cloud has already been adopted by approximately 6,000 companies—20% of which are international clients—and is estimated to have generated close to R$180 million in revenue for the year ended December 31, 2024.

SaaS Business

^{(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.}

Our SaaS business Revenue went down 10% YoY in Q4 2024 to BRL 75.5 million from BRL 83.6 million in Q4 2023, primarily from a decrease in revenues from Enterprise customers. In the year, SaaS revenues went up by 8.0%, as a result of the increases from both client size profiles (Enterprise and SMBs), with our SMB customers increasing 8% in the period, helping lay the groundwork for Zenvia Customer Cloud to scale.

Q4 2024 Non-GAAP Adjusted Gross Profit went down 20% YoY to BRL 43.0 million from BRL 54.0 million, with Non-GAAP Adjusted Gross Margin from SaaS reducing by 7.6 percentage points to 56.9%, as we saw tighter margins from large enterprises amid continued fierce competitive market dynamics in this segment.

In the year, our Non-GAAP Adjusted Gross Profit went down 5%, which led the 7.6 percentage points reduction in our Non-GAAP Adjusted Gross Margin to 56.2%, mainly from the same impact from large enterprises with lower margins, coupled with the higher infrastructure costs associated with the final push to launch Zenvia Customer Cloud during the first half of the year.

CPaaS Business

^{(1)  For a reconciliation of the Non-GAAP Adjusted Gross Profit of our CPaaS business segment to Gross Profit of our CPaaS business segment, see Selected Financial Data section below.
(2)  We calculate Non-GAAP Adjusted Gross Margin of our CPaaS business segment as Non-GAAP Gross Profit of our CPaaS business segment divided by revenue of our CPaaS 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.}

The CPaaS segment reported Net Revenues of BRL 155.9 million in Q4 2024, up 17% YoY. Q4 2024 results were impacted by a BRL 27.8 million expense from SMS cost adjustments related to the full year, that was recorded only this quarter instead of diluted over the periods. Excluding this impact, CPaaS Adjusted Gross Margins would have been 21.8%, which is closer to the 25-30% range expected for gross margins, instead of the reported 4.0%. We expect to recover part of these margins over the course of 2025.

In the full year, our CPaaS business reported Net Revenues of BRL 641.0 million, up 25% YoY, while our Non-GAAP Adjusted Gross Profit decreased 14%, leading to a Non-GAAP Adjusted Gross Margin of 26.0%. The lower profitability can be traced to higher SMS costs and tighter margins from newly-acquired clients, a strategy we expect to pay off over the medium to long term as we deepen these relationships.

Consolidated Financial Result Analysis

This quarter was marked by three effects that impacted our performance.

On the CPaaS business, we recorded high volumes leading to a 17% YoY revenue growth, but the combination of higher SMS costs when compared to the same period last year, along with newly-acquired clients with tighter margins, had a strong negative effect on our gross profit and margins. We are confident that the strategy of acquiring clients at tighter margins will pay off in the middle and long term as we do not need additional G&A expenses to manage these clients.

On the SaaS business, revenue declined compared to Q4 2023 mainly due to lower revenues with Enterprise customers from continued fierce competitive market dynamics in this segment, which combined with increased infrastructure costs in preparation for the launch of the Zenvia Customer Cloud, also had a negative effect on our gross profit and margins.

On the other hand, our G&A Expenses went down 37% YoY in Q4 to BRL 19 million— less than half from two years ago—bringing G&A as a percentage of revenues to 8.3%, a 5.7 percentage points decrease from the 14.0% reported in the same period of 2023, but not enough to offset the lower margins on both segments.

As a result of all these effects, our Adjusted EBITDA reached BRL 7.5 million in Q4 2024 compared to BRL 38.7 million in Q4 2023, while the Normalized EBITDA, which excludes the earn-outs and non-recurring events, reached BRL 34.8 million compared to BRL 37.1 in Q4 2023.

The Q4 2024 performance negatively impacted our full year results and prevented us from delivering the annual guidance. Even though our revenues went up 19% YoY to BRL 960 million and the G&A Expenses went down 11% YoY to BRL 114 million, it was not enough to offset the lower margins from higher CPaaS on the mix from newly-acquired clients with lower profitability and the competitive environment for Enterprises on the SaaS Business, along with full-year cost adjustments and SMS cost increases.

Adjusted EBITDA reached BRL 95.3 million in 2024 (+23.6%), while Normalized EBITDA totaled BRL 105.1 million, up 38.1% YoY but below the lower end of our full year 2024 guidance.

Conference Call
The Company's senior management team will host a webcast to discuss the results and business outlook on May 20, 2025, at 10:00 am ET. To access the webcast presentation, click here.

Additional information regarding Zenvia can be found at https://investors.zenvia.com.

Contacts

About ZENVIA
Zenvia (NASDAQ: ZENV) is a technology company dedicated to creating a new world of experiences. It focuses on enabling companies to create personalized, engaging and fluid experiences across the entire customer journey, all through its unified, multi-channel customer cloud solution. Boasting two decades of industry expertise, over 10,000 customers and operations throughout Latin America, Zenvia enables businesses of all segments to amplify brand presence, escalate sales, and elevate customer support, generating operational efficiency, productivity and results, all in one place. To learn more and get the latest updates, visit our website and follow our social media profiles on LinkedIn, Instagram, TikTok and YouTube.

Forward-Looking Statements
The preliminary quarter and year-to-date operating results set forth above are based solely on currently available information, which is subject to change. These preliminary operating results constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Zenvia's control. Zenvia's actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: our ability to innovate and respond to technological advances, changing market needs and customer demands, our ability to successfully acquire new businesses as customers, acquire customers in new industry verticals and appropriately manage international expansion, substantial and increasing competition in our market, compliance with applicable regulatory and legislative developments and regulations, the dependence of our business on our relationship with certain service providers, among other factors.

SELECTED FINANCIAL DATA 
The following selected financial information for the years 2024 and 2023 are audited. The annual report on Form 20-F for the fiscal year ended December 31, 2024 has also been filed with the Securities and Exchange Commission. The annual report can be accessed on the Company's investor relations website at http://investors.zenvia.com or at http://www.sec.gov.

Income Statement

Balance Sheet

Indebtedness

Cash Flow

Special Note Regarding Non-GAAP Financial Measures
This press release presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA. A Non-GAAP financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. Non-GAAP financial measures do not have standardized meanings and may not be directly comparable to similarly titled measures adopted by other companies. These Non-GAAP financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We also believe that the disclosure of our Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA provides useful supplemental information to investors and financial analysts and other interested parties in their review of our operating performance. Potential investors should not rely on information not recognized under IFRS as a substitute for the IFRS measures of earnings, cash flows or profit (loss) in making an investment decision.

The following table shows the reconciliation for our consolidated Non-GAAP Gross Profit and consolidated Non-GAAP Gross Margin:

^{(1) We calculate Non-GAAP Adjusted Gross Profit as gross profit plus amortization of intangible assets acquired from business combinations.
(2) We calculate gross margin as gross profit divided by revenue.
(3) We calculate Non-GAAP Adjusted Gross Margin as Non-GAAP Adjusted Gross Profit divided by revenue.}

The following tables shows the reconciliation for the Non-GAAP Gross Profit and Non-GAAP Gross Margin for our SaaS and CPaaS business segments:

^{(1) We calculate Non-GAAP Adjusted Gross Profit for our SaaS business segment as gross profit for our SaaS business segment plus amortization of intangible assets acquired from business combinations for our SaaS business segment.
(2) We calculate gross margin for our SaaS business segment as gross profit for our SaaS business segment divided by revenue of our SaaS business segment.
(3) We calculate Non-GAAP Adjusted Gross Margin for SaaS business segment as Non-GAAP Adjusted Gross Profit for our SaaS business segment divided by revenue for our SaaS business segment.}

^{(1) We calculate Non-GAAP Adjusted Gross Profit for our CPaaS business segment as gross profit for our CPaaS business segment plus amortization of intangible assets acquired from business combinations for our CPaaS business segment.
(2) We calculate gross margin for our CPaaS business segment as gross profit for our CPaaS business segment divided by revenue of our CPaaS business segment.
(3) We calculate Non-GAAP Adjusted Gross Margin for CPaaS business segment as Non-GAAP Adjusted Gross Profit for our CPaaS business segment divided by revenue for our CPaaS business segment.}

The following table shows the reconciliation for our Adjusted EBITDA and Normalized EBITDA:

^{(1) We calculate Adjusted EBITDA as loss for the period adjusted by income tax and social contribution (current and deferred), financial expenses, net, depreciation and the goodwill impairment. 
(2) We calculate Normalized EBITDA as the Adjusted EBITDA adjusted by non-recurring events and non-cash impacts from earn-out adjustments.}

 

 

 

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SOURCE Zenvia