ZENV - Earnings call transcript Q2 2022

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Shay Chor

Hello, everyone and thank you for being with us today. I got to say, I love this video.

The first time I saw Johnny’s Journey was back in December 2021. At that point, I was with Zenvia for less than three months. And that was the moment when I understood what we do and where we are going.

video a to couple this was as hope me for of I was you enlightening it So months ago.

jump that fourth I like post before specifically numbers, QX Now, I our to IPO. highlight earnings this quarterly the is we publish into would

already year-over-year even of before. The gross margin with from came X.X the of QX to for Movidesk of total, into company increase from XX.X%, QX in the positively quarter for for were our and our after contributing critically is client puts acquired and The M&A was R&D, both the how margin it’s two points since allocated SaaS half solid from recently Movidesk first base show. after gross transaction our in important improved of us quarter from while a numbers It transformation into for margins. at companies. That’s months XX% accelerated a company. acquisitions snapshot BRLXXX closed which already million half organic we the first our totaling quarter XXXX, increase increase, be, in growth an transformation of to revenue points to to us year percentage a acceleration up in have the XX% strong almost and million revenues. expansion growth also So in a the planned The stood exactly the results. year-over-year proceeds Of emphasize percentage half consolidated QX results X past solid SaaS quarter the reflects over IPO was XX%, terms our consolidation XX% first to impacting QX, two due integration a million BRLXXX of has BRLXX months. We this where the our XXXX of better, and a recorded May. what into been this numbers of the These three

all within As in you will range year. further see guidance the these numbers for are the the slides,

we QX, to aligned The process and with the under report our what driven results it for are where by made you new we announcement also that we of decision-making As to we on and do format of change breakdown. are will is easier One understand starting areas, business in mid-June make more our SaaS. evolution CPaaS a is the and going.

actually gross still generates over company. is While SaaS our XX% makes us our of already half business the SaaS, from CPaaS profit revenues, a which of coming

in of months. for market total these to And year. NRE CAC BRLXX share business, services Revenues CMO, of one at and the of into just take million over are let’s December market a BRLXXX as XX including recurring serve XXX% an business, Payback originated deeper Latin from reach TAM, is this about SaaS to So expected monthly over means BRLXXX a metrics BRLXX important SaaS is Other XX.X%. gross and as headed customers, SaaS are June zero according of revenue this we This our XX% almost is of XX%. revenue consolidation SaaS X,XXX XXXX. jumped generating Out slightly billion America, currently recurrence which we with adjusted that annual Movidesk, totaled of our talking billion in of almost X% have million Raphael by over Godoy, XXXX, former to an the addressable full almost dive space. mind, BRLXXX just of IDC. by of are We white approximately Keep numbers. of in now fraction margin million, which a from a is numbers that our

XX% to been level continue is another there huge growing, Zenvia a level of at bringing us and the for we size our have profitability. revenues opportunity So growing to SaaS

continues healthy business, very Our the is to Franco, headed now Cris also CRO by CPaaS expand. and

our future ignored. there will that growth in business, the cannot business of Although the company CPaaS from our be mostly be value is coming SaaS

For nearly BRLXXX by million according of gross which to generated a expected CPaaS expected around total in clients. of IDC. this Latin years, billion almost the in is fast margin size to in next to is revenues, business reach market BRLX.X from a a BRLXX market XXXX, growing billion X,XXX by XX%, with five to is approximately multiply America, X.Xx

second acquisitions. the Moving see consider months on contributed this the and results can quarter, see XX%. organic of BRLXX reached of gross net Movidesk. percentage And our approximately X metrics came brought quarter, are half and the has margin the of fully up almost BRLXX reach combination can million Slide within from full to range These in points in solid which consolidate growth went positively This as the that in the DX for revenues, our next two All growth Together, M&A to slide. three million. year, organic other and the XX, half first half. impacted SenseData, consolidated already growth with organically, our while companies you the adjusted margin, XX.X% you guidance these in to the only

of margin both and months are growth the adjusted the Our range. year within total gross the for guidance revenue six

to six profitability, focus second improving of and the half our Movidesk add our numbers. we of on into we months margins to as gross M&As a integrating the continue For expect year, full

our during the should while be next flow half to the second positive year, generate expect We at months. of in breakeven the already operating cash EBITDA six

a that funding that say Finally, concern. I would like gap is know to we

While live we not in us this do sleeping, prevent from issue denial. does not

able now different coming on session. something next we mind, to announce in alternatives you several we the We working to expect With have in move to and Q&A this the been months. to be can

Operator

[Operator comes sell-side you with Our Please, first Lucas Chaves, go Instructions] ahead your UBS. question may Lucas analyst from question.

Lucas Chaves

guys, you So, and thank hi having question. my for

you. if with And more you quarter? terms? in I line allowed integration and was dynamics in to Thank with the am price grow the question client a provide second And you think could informative how first, in how So please? clients, you’re going this Movidesk

Shay Chor

your for Lucas question. Thanks,

view start I’ll more business. a can and are how CPaaS the on view quantitative competitive and add dynamics So qualitative from especially a on Cassio

As this we’ve done been pass that higher us. in – results first to and year, what our focusing you prices And of quarter are telco operators the charging second to quarter and our profitability. year this first the half on cost this we’ve of year operations specifically in know, on the was half and this second

EBITDA It on the already approximately mentioned clean and are expected. generated practically running of is we So have of out about year, a did margin. XX% The EBITDA, especially was EBITDA an EBITDA second that the good side when clients this we from look the more XXX that’s already of guiding profitability. a quarter, business in is it we into was been only as terms a year positive we business one-offs in profit growing QX. we obviously our flip so We BRLX revenues. as lost I running we even than with positive when million, still negative, we half that of are that that gross CPaaS And breakeven. we’ve an expanded terms And to impact, organically in related,

in all a impact we we prices. companies moment ahead focus that we the are you pass having view. qualitative that decided Cassio, of on an decided need it terms tech on at So has onto difficulties But profitability. can we’ve when with funding, with go to that this more

Cassio Bobsin

Yes.

transaction we more have or prepaid In small create very some that don’t small customers, are long value customers, of run. terms do I lots of mean, the very, that for

we that of we’re customers continuously. how than upsell customers vary on the Thus can transactional focusing focusing sell cross depending we’re So recurrent and on can on customers. more amount

are And we’ve for we So working we’re part Zenvia That’s way from – Movidesk about Zenvia customers it you – looking as both rebranded ways, getting as around well. already operation from as Service. and what we that’s both and asked Movidesk, other from Zenvia from portfolio. been why of customers from other customers doing. together being And with coming products Movidesk So as right? generating

in sense, year in forward very combined the all perspective SaaS of of pretty it pretty on. solutions. doing of have XXXX the well. And interesting end terms integration the weeks they’re So a was growth going to that That’s we and why of early looking

Lucas Chaves

was very you. you. clear. That Thank Thank

Shay Chor

you I if think right? And had you integration, want also a Cassio to… Lucas on question Movidesk

Cassio Bobsin

what I client integration terms That’s of in Yes. the ways. meant, both coming generation from

Shay Chor

Okay.

Lucas Chaves

Yes, yes. Thanks.

Operator

from question Our you sell-side comes Diego Please, next may Sachs. for ahead. Goldman go Diego, Vergara, analyst

Diego Vergara

quarter. I question. like guess, quarter, in I Yes. Thanks question, organic first the a wanted if relative the the the here, to for the you it deceleration second growth Good seems to quarter mistaken just I’m that not in especially understand taking first because morning have massive my guys.

you. you if be – can that. just on Thank you mind if great. would commenting So don’t That

Shay Chor

growth that we margin more main Thanks, and conservative accelerated is in Diego. profit, versus decided take EBITDA. gross a more reason organic And more and you’re generate to gross QX QX right. and mentioned as stance The we the

So forward. you’re move We reiterated on the dynamics right. accelerated, our has will It competitive depend how it guidance.

be that about simply see obviously expect revenues. aggressive that for the it’s to us to up continue than we XX% on in will But rather important But still want above for move decided down, forward. growing. continue we growth that going focus flow as competitive and XX% to prices of be emphasize terms and we profitability We to need year, can organic on to generating at now we slightly that year. depend of And growth how a on full we dynamics again, ultimately to while revenue total depending cash

on cash of At growth will it EBITDA, decelerate and not, sorry. need know, as paying we terms slightly focusing EBITDA. be sales, to better the – to or to end PE, rather of are than EBIT the generating as because So focusing done generates organic we’re investors if than total EBITDA they’re long revenue, you EBIT on to do day, anymore we growth paying in not as especially EBIT and on that flow more if

important revenue decided focus profit So EBITDA than for and that growth. on to generate more why we that’s to gross us it’s solely

Diego Vergara

transparency you. really your appreciate thank Understood. Shay, I Thank here. you.

that. you liabilities So and is BRLXXX in balance that your second acquisitions a question the here, million debt, current call in trying BRLXXX almost mean, but to are to you you sheet. roughly I have in find look related options related million the to from some mentioned

considering on can options are earn-outs the lower comment that revise you. saw we Thank the you saw you the bit than reason also provide now just just you on if expected quarter. a because to here? And last right related filings can little Movidesk, we it’s down So what the like to from the number

Shay Chor

Okay.

start me let with earn-out. So the

you million track need with has look say, doing There how the the do very basis fact right? are quarterly that for year of the a was recurring reported are things those first million minus versus if to adjustments. EBITDA of for our So for half businesses a the to reason, the half that fluid, BRLXX we do BRLX we we underlying the on it’s obviously So EBITDA instance, adjustments now. do in we – minus the that first and

So – they to were booked because for second Sirena BRLXX the and million instance, for more almost for they delivering we million up of point. an we adjustment in delivered that BRLX quarter SenseData than

we So do all adjustment they accounting impact those and from do to perspective, need adjustments, an EBITDA.

very that’s the running on depending versus and and how up down are fluid companies goes the So plan. business it

funding discussing to debt from equity several the instruments. to we gap, different are alternatives As

months you of in are months. instruments to unfortunately we an the that able the And funding a stakeholders? announce. in I a gap generates the So announce I what’s them us. discussing, us some of several what point, all specifically, we Diego, we'll complex is be But for at discuss that as for confident moving couple able think close cost, this of next issue are to been be to of couple interesting us believe that I all can with value as And behind So of imagine. negotiation parts. available it's And the will most mentioned, those are working. be we terms cannot that more in to a We’ve

Diego Vergara

Shay. you, Thank Understood.

Shay Chor

is there web. question So on a here the

on some side, R$XX generated yes, positive more we Do to On like that So have, flow cash a you with capital cost free no generate working instance, operating cost. prepayment with for has at this? supply. looks in flow bit did operating elaborate flow. zero due decent prepayment anticipation do so to tools we cash and It the we client cash million a of

be longer Some with so DPO used. negotiations those in both pay DSO and with suppliers no continue improvement to basically of improvement to two improvement of cost – and practically of

to our a continue requirements. use cash faster we capital mean capital. As by we tools more flow This cannot all business has now not pay available to get we it working business pursuing paid to but Actually, continue is that suppliers, lot working of on us we our a focus improve clients that working improve will to than doesn't our capital.

So available we've to generate to been us focusing more all tools on cash.

Operator

[Operator Instructions]

Shay Chor

have I a question.

the a second XX.X% does here full on guidance the first margin and have so the side, deliver do the we for year, gross a imply does question between – the XX%. Another the margin It profit year web, your of guidance half? half year we not, XX% XXXX in the on in contraction of from accumulated. And the

much guidance, line half we with as in half the the reiterated this So margin. be should margin pretty first gross second gross

Cassio Bobsin

expect because as our also we to seasonality the have growth still Black fact, If I a revenue go we and Christmas. CPaaS we also natural here. in have due can It's mix, fourth but Friday and of our margins, add Shay quarter,

revenue to revenue, when compare more the We to of half first a expect we than have bit CPaaS little year. the the represent

due you mix, that, seem this So may okay. revenue to

year If true, start a growth half we the that's to a mix between first revenue the second yet, seasonality. expect but CPaaS natural all you're bit to have and you half higher in here delivering more due faster of and

Shay Chor

you this on Cassio, positioning, early tell can on how Another one are web, new evidence one? ahead received was Do think the by you us I your of clients? how from things that stages have can going? go you

Cassio Bobsin

of lots they're products of for that easier them getting that our to to customers can businesses. Sure. they understand getting from it's We're how all own feedback know Yes. their now apply

clearly better understand easier quantified get for product it's with for starting in each happening engaging as to terms that So we processes. of customers we're them. bit that ways enter to get process be but We're identified cross a aimed opportunities, to see became early sell with it structuring because It's our their what do sales needs. when they we are customers also to in

Success. for question that also can be as and this what best product they portfolio. with Movidesk them. new So We're SenseData, now companies of that also Zenvia I start the end acquired also are acquisitions part Zenvia sort That's the up being a using labeled and about both of former doing and from Service

we sell, customer working have in just these out, to on the we're getting expect phone of better on them understanding portfolio that quantified. requires So also not cross but acquisition. And

customer not exactly sell, are course, if easy seeing try Of it's to happening. moving that are understand those but terms to seeing that's we cross and of the reason we in acquisition that why

expect position. results our of unification that portfolio of we see to positive and So

Shay Chor

Thanks Cassio.

on you're aggressive up a position. specific players there's SaaS web. the new on your competitive to Can comment the the of another As any one if not on and versus here follow that, seeing the more differently, dynamics you playing global or

Cassio Bobsin

Yes.

In do of kinds terms competitors. competition, SaaS of have we two

see the tend for to pretty global niche players that parts and gives of the in offerings served world, very have by pretty players at global dynamics solutions. And being to a players. and adjusting us those in specific terms markets move interesting global of that players. were some slow more We their your customers of small we're have interesting big using get We which SaaS now we becoming markets present solely getting entering they

sense. that in well pretty doing it's So

a and customers. different using them it's meaning these then very kind can serve sell better mail and a that Most bring to They solution. SMBs, of that still of website And that start at see simple Looking value of solutions all customers plus ways to their pretty solutions, structured dynamics. space. more for kind they these are open leverage we in digital

the opening SMBs market. region. competition players very So respective much we on market niche And we pretty small the don't for see the across up strong from much the

Operator

[Operator back remarks. I Cassio session. the Instructions] Bobsin conference to conclude This to would turn question-and-answer closing our over like his for Mr.

Cassio Bobsin

of the delivering much We're the time over of that couple combining the very a pretty months. initiatives the been everything you doing in see as year terms portfolio being R&D well business. first to public for in M&A in about to expansion this spending last and that very optimistic company. of get and evolution all unified, growth, thank We're Well, operations both now did with here terms market we we've

been are have happen. transformation very making journeys create And these competitive seeing strong transforming a digital, that all combined for and So experiences. companies customer we way are we're and customer using platform that the their

for much see and very you your you next So time you in much. release. thank very earnings Thank the

Operator

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

You day. may now a nice disconnect. Have

Cassio Bobsin	Chief Executive Officer
Shay Chor	Chief Financial Officer
Lucas Chaves	UBS
Diego Vergara	Goldman Sachs
[Call Starts Abruptly] entire sales process by starting with lead generation from digital ads	then all the way through the lead qualification process - sales engagement - sales closing - and even payment collection along the same conversation with the customer.
Zenvia Service comes from Movidesk. It is our SaaS solution that enables companies to provide amazing customer service with structured support across multiple channels. It is deployed to ensure a consistent experience for a long-term relationship while improving team performance and efficiency. [Audio Dip] with several KPIs	establish multiple customized Service Level Agreements - control tickets across internal teams and much more.
Zenvia Success	which comes from SenseData - is our SaaS solution for the customer success phase - enabling companies to continuously engage customers based on their individual context - promoting healthy and long lasting relationships. With this solution - companies can connect multiple data sources to create a 360 degree understanding of their customers - including customized KPIs and behavior tagging - so actionable insights are generated and transformed into proactive and highly contextualized customer interactions.
Let’s move to Slide 5	where you can understand exactly how our platform is structured. In addition to the solutions I have presented - our platform also provides CX Tools that companies can use to integrate and automate their customer experiences in various ways. Our main tools are APIs - Bots - NLU - and Docs.
We're building a new world where experiences become more personal	engaging - and fluid for all humans. Our platform enables companies to break down the barriers that exist in customer experiences today. QUANTUM is the essence of our platform. It connects all of our solutions and tools with the company's systems and processes. Quantum remembers your name - your latest interaction - and even your sentiment towards brands at any point of the journey. It consists of four core components:
Quantum Connect enables companies to bring customer data and events from other software into our platform	allowing highly contextualized interactions. For example - when a customer enters a physical store and buys a product - it is possible to immediately communicate with the customer by reading the data from the back systems with Zenvia Connect.
Quantum CDP	or customer data platform - stores end customer information from either the platform itself or from Quantum Connect - and assists in enriching both automated and human-based interactions according to the customer history with [Audio Dip] with Quantum CDP - a company can define the best channel to impact an end-customer by accessing this end-customer’s previous behavior in terms of communication channels.
Quantum Abstraction enables communication with customers through various channels in a simple way	streamlining processes and enabling the end-customer to switch channels while keeping the conversation going. For example - the end customer can start a conversation for support on Instagram - and on the next day - continue it on WhatsApp.
And finally	Quantum Cognitive automates predictive data analysis to unlock value from customer relationships based on their behavior - conversations - and transactions - enabling highly contextualized and proactive experiences. For example - by analyzing the profile of a particular end customer - we can identify that they always buy a certain product during a certain period - but this [Audio Dip] has not made the purchase yet. Maybe we can trigger a reminder for them or create a promotion campaign.
This is how our platform connects all the dots along the customer journey	providing multiple ways for companies to create unique experiences that are more personal - engaging - and fluid. Companies can start working with us by subscribing to any solution or tool - and as they go deeper into adopting multiple parts of the platform - we can break down all CX barriers and unlock the true potential for end customers.
For you to see how all this really works	we prepared a short video that presents the journey of a fictitious end-customer - Johnny. We call it Johnny’s Journey. Right after the video - Shay will discuss our key financial metrics in more detail.
I will be back after that for the Q&A.
[Video Presentation]

Zenvia (ZENV) 16 Aug 222022 Q2 Earnings call transcript