ZENV - Earnings call transcript Q4 2021

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Operator

Good morning and thank you for standing by. Welcome to Zenvia's Fourth Quarter 2021 Earnings Conference Call. Today's speakers are Mr. Cassio Bobsin, Zenvia's Founder and CEO and Shay Chor, Investor Relations Officer. Please be advised that today's conference is being recorded and the reply will be available at the company's IR website, where we can also access today's presentation. participants a all mode. time, this are listen-only in At a there answer After remarks, be question the prepare will and session. [Operator instructions] your Mr. of welcome to Now I speakers would for like one today; CEO. and Founder Bobsin, Cassio the Sir, yours. is floor

Cassio Bobsin

to Zenvia's Cassio business. with present an provide I'm and the Hello everyone highlights Founder and QX full the earnings Bobsin, going year we're Today, our you of update and CEO. key of call. XXXX to and welcome peer

an our full strong Let's XXXX start what QX QX Four. [ph]. year with Revenue up and delivered for and excellent at solid in over with We was a year to wound expansion 'XX XX.X% growth XX% quarter we sales year. very growth promised PO Slide again QX revenue in margin compared the year. strong on investors process; during 'XX

we become unique customer a that brands we years a building on XX% our leader up QX mainly was of direct While organic of base eight the percentage and unified solid from mean XXX% Latin the vision We've SaaS and to XX.X% Adjusted this [ph] data services platform ground up and is to spent the for QX reaching was term and and to a focused web points. XX% gross evolving XXX% company percentage This on almost QX the enhance Brazil, communication focused up provide years XX.X contributed push almost and highlight client result total, our we our America. last revenue acquisitions to XX.X% and long one the XX.X% our to Adjusted mobile year XX,XXX expansion 'XX. last customers which transformation points in growth the with adding We from percentage adding first and million. been profit way 'XX in gross only in in year. X.X experiences in in the becoming margin couple in to up. points communication in in R$XXX started by going

digital technology, and growth and it solutions enormous will in of they especially has end customers of their of are ways currently juries through variety are engaged adoption that communications of and Moody using the the enabling and prepare companies. phase, across media by clients stage automated, platform, We enabling no journey, enabled analytics, generate brand, the data end as phase that channels our personalized focused driven to our multiple are experiences experiences, in of more potential for a the customized insights, but in or and Latin be engagement the provide foresee life early information will clients to small channel happen cycle, the actionable with this with is in we experience more channel already be next with end can streamlined actions which enable creating time. of touchpoints our by seamless moment data allowing customer And relationship on and customers. to America in some different and our customers matter them

and our to of evolving offering headed are let's where IPO. of look forward. closer to already and value positioning have the was to moving So brand we products take 'XX a new and we in obviously delivered us been how a at 'XX year clients milestones what you customers, year for from M&A, our important

a achieve global experiences. world way a two empowers goal for making new becoming involve value we recognize beliefs sure align and ambitions brand our year, our value humans us of behaviors, with the to key our to reposition stakeholders. of create companies the Combination of are the long our the During and company's vision we that term and elements platform to to to of maximize these our culture, pave

already as launched such internationalization with and We five the the have In X% channels, as years also such second CPAs offering, of international were of and we new in have Instagram M&A in improve last API. company. Our SMS, [ph] trusted half we revenues products, total. our our in RCS acquisition active Mexico. roughly the implemented effectively are our in as 'XX added the were operations new that acquisitions three and completed of very transforming launch represented [indiscernible] 'XX, of plans To

while its Our data terms M&A core client in In transform the track of together led the and strategy AI. role also plays rather synergies, our companies to platform data and by in integrated, implemented companies with structures AX we and the working team to our the achieves data 'XX. Integration talent. adding increase since base of already We're to immediate full pool net integration solutions, of new back activities changes analytics acquiring and is at on important complimented technological ceramic with of clients now understand us short, with [ph] geographies integration. will map accelerating our an involving and fully expansion. QX 'XX, integration decide that to our existent these referring office integration value which revenue Since

As the close us now second putting the we're of client's is understand to in this shoes. [indiscernible] ourselves quarter. the expect for The to to this best integration transaction in we fact query

data since service experience. share had onboarding already our past, we the recognition This in the been customer sense, X,XXX report means receive XX clients customer best incorporating tangible with like would Brazil, impact solutions changes we're our to own it that key implementing our companies the I help happy for experience. provided by recognition improve have and doing and to brands. with into quickly It's clients different can of new own very in three our In that these January. to them how to in example. customer desk We and cases and recognized we was you granted in ultimately the

and out relationship started broker. in Through they Zenvia into with using Brazil turning to provider retailers strategically needed trust their started end for us enabled platform, WhatsApp as the fashion our which they salespeople of WhatsApp, to conversational started involved largest use when to relationship the offer reached soon an reach to advisor end and able sales. to SMS products. revenues that had their lockdown, online through of they as of they're and already journeys, days pandemic lockdown XX% One customers submissions. XX After The designed

solutions program, congregates ones longer R&D of of are of their business the and support and product market human releasing our held what's in WhatsApp provide And closer interact and well Brazil productivity journey totally with education their and agents. and the team who sellers, revolutionize the journeys our One address roadmap. known products number customer we build closely needs. aligned most better, to according unicorns, XX% with to even interaction. of product the self-service agents gain care, renters. among estate Through who improve And from to we're in by helped buyers their requirements. to Brazil's no human students performance. of They product essential deals [indiscernible], automate students is with to will their need estate the their needs everyone to local These of same section is real levels their to platform the market in understand one real a to require indeed work solutions through involve the them agents brought broader the to to teams, students The record jointly largest with of human able to advice customer a them

thesis it our we and Finally, investment next the globally. occasion preparing our level, special and in that's doing IPO America been the experience have for when in July market our saw since of experiences 'XX Latin welcome was customer what we a and then

in them demand mid-February, new are Looking the powerful foundations customized route. better we will for journey to all this year sense, we enterprise in into and ready experiences journey. for our We're lay team platforms out market clients. we a for customer highly profitable of as both have we released serve accelerating integration integrations the and our an and been our 'XX speed the customer the we when inflection In be to along parallel up a strong businesses ahead, seeing to now decision best offer brands accelerate one strategy, selections. one the growth platform, and provide good expansion SaaS deploying integration at had, point to the

processes, in Our customers communication from goal leveraged into wide is journey implementation, single one by base all integrated and a eye, move to these in an platform. data

comprehensive their customer We expect integrations want services journeys. senators several a to brands of will those more shoot much and product for ask that improve extract to to the offer that from

this leveraging to allow in We cross clients. pretty every which develop the That's now and is best, journeys to adopt the and in us customer but our region. We is create strategy customers. customer and always end use SaaS priority can us. over first. for all in based platform to do that We which requiring of how that will value main main As unified it's benefiting focusing selling. our journeys. experiences usage all by This what between for order believe to the to the covers you for cases to Very 'XX reason Everything our ex our differential customer obvious, case, our further customer the evolving grow with amazing excited based with revenue our do not. proud do we about a and do transform journeys, on adoption positioned may prospects Zenvia clients and and initially you parts being into the ultimately in customer. introduce engage products the focus end of also be the very to the platform platform, simple on we're of aim at our step will we models of dare them results the combine say, expand current opportunities then achieved relationship will brands We alarm analyze we one our 'XX. versus why and has end at enable upsell new peers the with all and experience. This we This our different connecting offering generating seem used value customer will into us core the end see our time with allows our

pass us and in now for 'XX. opportunity that our see will demand lot new the and even in organic We expect of products financial key more growth. detail, metrics who growth I pursue services launching will for a services as more keep integrating on of and I help will to be available strong for We're and we will on the focused to Q&A. in growth place Shay, substantial increasing 'XX our discuss

Shay Chor

everyone. Hello for for joining Cassio. us you, Thank Thanks call. today's

client retention revenues solid thoughts acquisitions Let with some year. on combination boosted the The share our of and growth, you results. me our organic in

client base to up XX,XXX went XX% almost clients. to Our

Our ended In revenue revenue, net acquisition the see last also up rate Data organic, almost the point million of you growth right, on retention R$XXX were at consolidated R$XX.X top, XXX% a chart year. XX% eight can the and representing contributed revenue. contribution the million growth. organic of to while our the from percentage year

Another only were only this most the important in look XX% XX% the the from if We're highlight we our total Out at two revenues into were revenues SMS proud look is the Termination. beyond of QX, started XX%. see to our 'XX termination. is revenues. pace with already we you 'XX, of year. Even within years SMS alone, if of it as transformation over the But quality QX of ago year SMS from very rumination

SMS expanding important XX.X us, profitable is QX promised also was and this XXX% improved we important in points Christmas. For profit XX%. during because and to increase IPO. year, highlight gross Friday an this one, that we indicator QX direction. XX.X%. are solid the the we expanding the this adjusted mainly helps over 'XX, X.X increased In volumes gross It adjusted the Adjusted, gross with XX% percentage almost adjusted QX mix margin, compare revenue seasonal right The to amazing an revenues Black that higher to to this percentage of related increased profitability, profit 'XX is margin, million when with impact to is soften the to R$XXX almost our moving a points

we from a chart you 'XX become acquisitions these XX% direct profit are see gross and SMS comes can as SaaS more strategy introducing and move Beyond right, As our diversification a and of for company. the in results the adjusted our guidance finalize, the year Termination more of recent and fiscal are we To beyond 'XX. our at to

the remarks, foundations where 'XX we the his pointed profitable the in lay ahead. for will out year As Cassio be growth

XX% expect organic million, growth the R$XXX XX% growth our within year-over-year to revenues with be of XX%. representing R$XXX standing a between We XX% of to to range million to

expect X.X a the our also within session. This of remarks. representing adjusted expansion be percentage Q&A range to We year-over-year move points. concludes now to We gross can XX% margin XX% prepared to X.X to the

Operator

begin BB. question now answer audio Andreas [Operator Andreas opening Salish, now ask and And live, our can will the are you from UBS analyst first question [ph] the side Salish ahead. so from comes We Instructions] please go session. SELL your question that we

Unidentified Analyst

guys. well? Hi Can hear you me

Shay Chor

Yes, we yes can.

Unidentified Analyst

what for was How the really to All upcoming and the here the for on You full positive you that short-term expect I'm for breakdown XX% Thanks. during have taking give thanks the right, breakdown? on thanks for the specifics could it. so my of I trying question it's XXXX call a to SMS, year. so, we the guys QX here. revenues quarters? non-SMS question breakdown more the and assess dynamics revenue grew

Shay Chor

for Thanks question. enough your

QX the I'll in discuss were trends let fully X% Cassio our the beyond Specifically in you see, from in, presentation, SMS revenues can as

Cassio Bobsin

we're being and, are ones launching that Andreas growth acquisitions. that for the from solutions also come continuous this seeing and

the of all leveraged. naturally the higher this SMS percentages dynamics. of on that at layer on so seeing parts these different seeing net we that beyond to a up we're expect the infinity being are of this Hence So kind drive basis. solutions some as revenues, of growing quarterly SMS keep platform same pace We're

Unidentified Analyst

you. Super good. Thank it. Got

Operator

Andre. your next SELL Enrico for [indiscernible]. now analyst [ph] question thanks the question, And from - from for comes Thanks side

now are opening question your the that can audio ask We so ahead. go please you live,

Unidentified Analyst

Sure, morning sure, Can guys. so hear good well? you me

Shay Chor

Go Yep. Yep.

Unidentified Analyst

Ahead.

Hi Shay. hi. Cassio. Hi, Okay. Oh,

questions you as numbers know So, QX. these course two, the we mid, increasing as the the have mentioned, One of you, also termination the, in again, beyond here. of on, XX%, share quick SMS two on, revenue that the you been in here

guys effect of course the if adjust, by been kind acquisitions, know of opportunities, were we seasonality if So my, a you the you the but have of, here seasonality has or this Also, API on SMS, the you don’t know the this number, basic my mentioned growing about first a what beyond question. the if of share And would be bit would the but you adjust question, be SMS So of cross-selling it of second QX don’t that the comment the little you in I the cross-sell have I solution know consistently. more termination? you So the the if right? performer as have could to XQ the, profitable solutions, effect, you solution.

that basic could if than, percentage on using more using than open SMS also loop. are product of So of the API solution the clients you what kind here one are

on on So if little bit it you very how could much. provide of here That's more evolving? has a my guys. detail Thank you been side, this

Cassio Bobsin

have assist you were have would do we not if we Enrico we on sure -- Chor [ph]. [indiscernible] revenues to, from what the be I'm if can -- Thank you, it? I'm do

Shay Chor

the, we SMS comment the doing, assume average higher can the, than would selling something revenue we're XX%. you points, evolving? how around on what that. we is four-five assume for the Cassio, percentage SMS XX% mid Yeah, that I grew this would say beyond like And cross can have

Cassio Bobsin

That's for but beyond cross-selling, whole I'd don't it's using to have disclose are that more widely different more fair Yeah, we've numbers of platform. a SMS, revenues go start over customers, And most They for way do that from sometimes solely definitely. now-a-days, customers have being than becoming from is say from been one SMS the been launching. structuring customers solutions And We currently, customer our seeing huge. these the the X,XXX solutions approaches beyond customers solutions of solutions these than SMS solutions. these can into part say cross-sell, We we to and can other our demand based the come we're occur new termination. we, as, by most from sell. other side both Other start one now-a-days course usually because come, some from process, then time. at is strong of the of and adopt SMS not solidly start [indiscernible] it's reason arriving of and don't especially some cross means customers the their, use of it's driven as but our with which come ways. new they A then that market on work our these

So this we of, being that the disclosed, kind think number that have for and I dynamic adoption are, basically how these works, right? of for we Chor the don't portfolio cross where

Shay Chor

you're right, Cassio. Yeah,

Operator

your Eugo that Sachs. analyst from question now the you and [ph] for audio ask the live, can go so we Goldman SELL Eugo, please are from Enrico question opening comes next Thanks your question ahead. now side

Unidentified Analyst

revenue XX% Thanks the guys. for correct assume can like SMS up I'm and on this if follow would see XXXX my guess full year I'm we wrong, on SMS I the this please business. according the I we on the negative question morning here a me but Good revenue mean, Yes. margin what into is to, taking fourth mix. we for are a question. just my if in quarter getting

this you. missing or are what right here? is we So Thank

Cassio Bobsin

take margin want the cannot I it's math. can impact that help is versus to the, the do you, this profitability because We, not for [ph]. you numbers, share but the, we I'll reason QX on has in tell SMS that, the seasonality is because of being and instance, this the QX, mix offline the Thank do QX and slightly some seasonality, smaller client negative. Eugo that definitely negative, definitely Chor lower tell you, I this this not business do, you can but, a

Unidentified Analyst

Okay. All right.

Thank you, Sounds Shay. good.

Operator

[ph]. question, your now the can your next comes BB. And are UBS ask from question opening we audio Eugo that the so for question analysts ahead. go Sal again, Andre Andrea, you SELL side Thanks please Perfect. from now live,

Unidentified Analyst

Right. for margins. the I some on expenses We've for follow wanted Thanks on, dynamic a guys the, on, of and have seen the I just question here. commercial here. R&D

seen during should normalized of Company As fourth that expenses -- commercial and little the which during R&D percentage does level in revenue, the quarter, understand it's level we be of the the increase forward? going terms

Shay Chor

to Andrea. Cassio Thanks you take want do this?

Cassio Bobsin

Thanks.

a Company that revenue. we of you in that how XX% years have understand now we, the We for think around we for from to in is terms room can we R&D The XXXX than of think maybe is, marketing, yeah. the revenue. XX%, back in for for next of It's the cause we and sustain the of ahead. growth XX% live percentage their we beginning that came right? In of aiming what have for, I XXXX, Yeah. good growth, and forecast, of, the terms, to terms And years less we point XX%to a and think reach already disclose reach XX% between net few in sales only especially for we level X% net

Unidentified Analyst

Super guys. clear thanks

Operator

Instructions] [Operator

Shay Chor

those Roger, I'll on take it, the can how you the companies you on of question Can, acquire, the, the how, I comment are have going? on that cast. a here integrations webcast

Cassio Bobsin

a been full about now most year, we've That's quarter integration. process acquisitions, definitely, we integration talking and old the into Company soon a middle that last last I acquired we recent during finished

the the customer of during portfolio way integrating able We expect synergies teams and to process for as quite It's and offering being experience next the directly to customers months. with couple solutions. finish being pull interesting whole different our to talking of

process. been full of to data. the structure. phase corporate sales We the We that going one, and quite means talking about started which into just it's finished interesting direction a integration So integration

platform we go which that about start that to in closing, And Now the the closed means platform. approaching so with mentioned expect by we we of before, function we the way the can both we our course, analyst integrating different product first create as and phase we can we're combining from a going talking the benefit operation corporate after then integration same QX. feed I'm two, platforms. [indiscernible] number

And can So can partners they been this our portfolio mobile as by, of have solution bring so that that for course also platform of kind set customers have customers these connect a the increase we serve. from demand that we well. whole with them different served data value to with of three whole benefit XXXX

in for been of in we terms value synergies integration. customer product So in that's we're with to each and expand we tab we much what what happy we've serving. with benefits create We're same seeing even excited is going more able deliver that integration, what acquisition our and pull how And been pretty customers. considering I've and of, as we, of with very the terms what, terms of we

Operator

now comes question please next [indiscernible] Goldman from you so we Perfect. now the go Sachs audio opening ask we are analyst site live, and SELL It Then, from that your have can [indiscernible] a question. ahead.

Unidentified Analyst

Yes. Thanks for, for question. up the follow

We've So I and doing something lot market been this? mean, you where was of stocks program can say the environment. you a Thank share given your share look given investors perspective just by so like from back would getting like you. price, questions and if wondering let's current, I consider the a or trading

Shay Chor

have other in what tell location terms all, questions of What, consider can tell additional we Eugo. that of is all especially urgent you all what in we our the get light M&A small that that the or we you can they capital up. we is when have could done Thanks M&A be rates nice one crisis with a to are there we not be were did not going interest two must to

a it's, back to of we right? at terms decide that another an but to will resume when part to we preserve if and, we and certain one consideration we to will it's liquidity depend of Company the the some So or for back capital a definitely valuation, own take by need our that on, M&A, the to it's couple when on of capital, considerations be and, have. alternative things, decided locate of, buy better on that the, in point, it's how decide of of, that we step the share to location business depend run So definitely buy shares and will

Unidentified Analyst

great. Shay. That's. Thank That’s you,

Operator

now Thanks that can we another the your Go you live, ask ahead. opening Eugo, [indiscernible] we are [indiscernible], side for and analyst from SELL please. audio question have so from question question now

Unidentified Analyst

Hey guys, no.

like the, how experience Another environment understand the we here, from communication is to players guys, competitive and you have seen competition question platform. here been at different regarding also looking

we of have this a J seeing communication So side an willing what in of, also business. been of different right become And creation of call ecosystem the lot they to that here is ecosystem. on offering involves now several the solutions

has how, you. could I on provide been impacting competition, could if little see this you I So, you if mean, Thank do you churn how been how, the granularity a here this levels, product, more this if has on by elaborate that, how mean, level? bit

Shay Chor

the for question, this one. Cassio, can Thanks you take

Cassio Bobsin

very yeah, good Yeah, question.

So talking of a of, about the the competitive dynamic, best, business. we two have parts the

dynamics, on market is the CPaaS And always a customers. the are very on especially CPaaS market. competitive these The we we being the started used where first,

So I look would SMS, than couple a market. for say the enterprise much CPaaS, the is terms they then of we When have, it's it at it's less hasn't competitive market. for since competing in bit last different years, changed

revenues. our CPaaS solutions, So haven't SMS on any at which beyond experience majority that customer are looking of change seen sounds, SMS

across on why players are the region. create for differ companies throughout these and high the face in And integration we these a platform, with SaaS a compete see on and solutions demand competition each start customer niche been market. say our we successful specific and we here, When we we that Now ways as for more solution. mostly different global the It's markets experiences expect pace each and to core a these solutions competition in to to of different solutions. they these we achieving unique of very global for with one That's improve dynamics the very solutions solutions approach players. and across regions very invest for huge competing efficient growth the we've of from of into

the something And XXXX, most chime of we competitive and as, all mentioned, strategy, our have of because or of the already way as considering as we that of interesting the Then focus we [indiscernible] to We the markets terms at interesting As provide. expect revenues and SaaS customers threat don't or task course, unique. market. for customers. end to they we're provide very one assessing are whole data to even represent if and as awesome that's insights players of results evolving it offerings. And customers We parts the approach we, two will solutions, solutions as able we would kind be the and provide the experience looking that competition, to them for able to for also these integration. a, see bunch through these need how SMS the demand, we help best solutions and the able And successful on experiment we more benefit as and they, work solutions percentage any from able full be how of being the time. terms adopt in that sometimes customer how quite it's would that be And really we're and different highly evolve the of an we stack, expect solutions to services don't are platform, this platform. and see of channels are as scale basically really some the high for some in we the bringing these of that we in invest and on high multichannel

Operator

your for for closing Cassio over question. to and would I back his remarks. And Mr. question Thank the concludes like to turn conference

Cassio Bobsin

a great Thank opportunities at of really strategy year been in into It's all a lots much looking on session. their vision purpose enjoying you brands. and fulfil joining evolve XXXX focus that your seeing to been very that've looks our working all ahead for back and you world those and of people from experience and to empowering difference region make really services new of engagement order to deliver and customers of creating with and for, of expenses how the across a a all business

thank you So and next very much time. see you

Operator

now concluded. area you to disposal presentation. Thank conference your questions. The additional attending any is for at has today's answer IR

may You now disconnect nice a day. have

Zenvia (ZENV) 17 Mar 222021 Q4 Earnings call transcript