Zenvia releases results for the second quarter and first half of 2024

Zenvia, a leading provider of cloud-based CX solutions in Latin America, which empowers companies to create personalized, engaging and fluid experiences throughout the customer journey, today released its operational and financial metrics for the second quarter of 2024 (2Q 2024) and the first half of 2024 (1S 2024).

Cassio Bobsin, founder and CEO of Zenvia, comments: “We maintained our focus throughout the quarter on the implementation of Zenvia Customer Cloud, with the launch very well received by our customers.We also launched in June our innovative Chatbot solution with Generative AI, which allows the creation and implementation of chatbots in a few minutes. In just two months since the launch, 99 chatbots have already been developed by companies from eight different sectors in Latin America. We are excited about the opportunities generated by these innovations and committed to growing and strengthening our leadership position in the market. The dedication of our team and the positive response of our customers reinforce our confidence in the potential of these transformative solutions and in our ability to exceed expectations as we grow.”

Shay Chor, CFO and Investor Relations Director at Zenvia, he says: “We delivered another quarter with solid revenue growth in 2Q 2024, with margins within the guidances, even taking into account that the increase in revenues was concentrated in both segments in large corporate clients, which usually have lower margins. It is worth noting in this quarter the significant reduction in G&A expenses, which fell more than 10% when compared to the same period of the previous year, positively impacting our EBITDA and attesting to our ongoing commitment to strict cost control. We remain committed to maintaining the Company's good momentum, expanding Zenvia Customer Cloud and optimizing our operations with a focus on deleveraging the Company.”

1. We calculated Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.
2. 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.
3. 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 2Q 2024

• Revenues totaled R$ 231.2 million, up 19.8% from R$ 192.9 million recorded in 2Q 2023, as a result of the expansion of both SaaS (+15.6% A/A) and CPaaS (+22.1% A/A). The growth of both segments came mainly from large corporate customers.
• Adjusted Non-GAAP Gross Profit of R$ 100.2 million, increase of 20.4% A/A, with Adjusted Non-GAAP Gross Margin remaining virtually stable, with increase of 0.2 percentage points A/A to the expected level of 43.3%, as highlighted in our guidances for 2024. This reduction is due to:
  • Increased CPaaS participation in the period, especially from large corporate customers with lower margins; and
  • Lower SaaS margin, as the segment also grew more in large enterprise customers with lower margins.
• The total number of active customers fell to 11.8 thousand, 6.8 thousand SaaS and 5.5 thousand CPaaS. This reduction reflects the cleanliness of the customer base, combining the implementation of Zenvia Customer Cloud (which unifies the contracts of SaaS & ODE customers with the fall in smaller CPaaS customers who used few volumes of SMS and were less profitable.
• EBITDA Normalized from R$ 33.7 million in the quarter, up 126.1% from 2Q 2023, benefiting from increased revenues and strict expense control.
• On June 19, we announced the launch of our Generative AI Chatbot, a revolutionary solution for chatbot development, making its development as simple and intuitive as a personal interaction and accessible to companies of all sizes seeking to improve and automate customer service. The main highlights of the tool are the easy customization and efficient integration with multiple communication channels, ensuring a superior solution for all customer needs. In two months since the launch, 99 chatbots have already been developed by companies in eight sectors of Latin America.
• The migration of the customer base to Zenvia Customer Cloud has already begun, and the implementation is expected to be complete by the end of the year.To date, we have observed healthy levels of recurring revenue, churn and cross adoption.

Highlights of 1S 2024

• Revenues totaled R$ 443.8 million, up 19.3% from R$ 372.0 million registered in 1S 2023, due to the expansion of both SaaS (+13.8% A/A) and CPaaS (+22.5% A/A).
• Non-GAAP Adjusted Gross Profit of R$ 193.8 million, up 10.3% A/A, while Non-GAAP Adjusted Gross Margin fell 3.6 percentage points A/A to the expected level of 43.7%.
• EBITDA Normalized positive at R$ 56.8 million in the semester, up 150.0% from 1S 2023, in line with our expectations and with the guidances from R$ 120 million to R$ 140 million for the year 2024.