- Earnings call transcript Q3 2022

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Operator

Good morning, and thank you for standing by. Welcome to Zenvia's Q3 2022 Earnings Conference Call. Today's speakers are Mr. Shay Chor, Zenvia's Founder and CEO; and Shay Chor, CFO and Investor Relations Officer. Please be advised that today's conference is being recorded, and a replay will be available at the company's IR website, where you can also access today's presentation. participants listen-only all time, this are mode. in At will question-and-answer session. the prepared a there remarks, After be [Operator Instructions].

and floor Now of today Founder our would speakers Sir, I like for Mr. to Cassio yours. is welcome one CEO. the Bobsin,

Cassio Bobsin

call. month Hello, Founder Cassio period to our of and Zenvia's third the going Bobsin performance we're XXXX. I'm for everyone Today quarter to and review welcome earning CEO. and nine

together and to metrics increase the we with I'm have our been expand slide quarter, company gross the our strict a on control revenue a best a backed implementation direct a start to plan. cash of margin cost Let's proud IPO, including promise profitability. registered very for business, flow. report recorded mix, four. This of delivering is with we posting listed free expansion Since that as by profitability of better a the result SaaS our

competitive announced cash environment strong Therefore, of have the seeing clear given profitability. company's are in global tech CPaaS environment path we reduce to measures maximizing companies taking structure now to with business two Zenvia been important expenses, the overall a challenging very much on and As improving the putting is a we pressure, a very pricing management recently focused Also we initiatives. in capital at flow. series

by First, we have the earn renegotiating the XXXX terms significantly gap out DX of funding reduced Movidesk. our end with and until

quarter, guidance. guidance initiatives it a included more the adjusting and this margin. cost to our which down week. full structure cutting gross we're downsizing several remarks. we will announced also as implemented initiatives, his Also detail Shay in year our we part both the of guidance last revenue market, Second, as we of during are cover profit new up corporate and adjusting introducing With EBITDA provide

adjusted gross adjusted quarter. during and margin. first our all a net Let's metrics, revenues, performance now our at gross We're key take this reporting look profit on evolutions

into free As in quarter. you the operations, XX% to while flow. and EBITDA We more able profit attests profitability can competitive margin, path XX.X and challenging gross did to despite up importantly, of increase see, environment, the percentage cash we were our our adjusted profit more our Net and this revenues gross adjusted convert towards points we adding XX% commitment which like lived jumped profitability. and gross were this

next at our IPO the gross we looking On the margin our of profit today. quarter the XXXX first and specifically the see can gross margins, and of slide, evolution since until

promises made IPO. We have our during on the delivered

guidance margin the can significantly, whether a month on of of walking the digit double in updated orange is period, year-over-year XX% see the top almost is We our close for recorded in to right, the as In XXXX. profitability. you to it bars range yet of to have gross since nine talk a is expansion, proof a our the expanded another our basis. full This we year margin the which IPO the that we're path or

In hiring. intend cross SaaS balance is and pursue continue CPaaS our to the and the to we our volumes ahead, of to strengthen accelerate to integration products Looking profit. gross profitability business maximize our plan between

results now communicate our initiatives more changing have the in way been bringing CX million of in and already we're have experience America customers. Latin by are innovation market reflected with than The brands which our XXX customer to in these the humans We the followed the profitability. with already improving platform good

the in have and this market opportunity to opportunities. ready still it. is there's and a just huge There tap we're began ahead, take a promising However, whitespace future to

Shay will on diligently our and I remarks. Q&A. to floor now cash profitability and our I'll strict the continue a We that back for cost to with and focus maximizing after will increasing aim returns. be his be control preservation. for turn these doing the all We

Shay Chor

Cassio. and today. breaking down like start for would gross I our by everyone revenue and by to Thank with Hello profit us being CPaaS. mix thanks SaaS you, and adjusted

to decided on drop CPaaS. mainly was started XX.X% XX% so This performance only sequential environment to path this in the decline which competitive like to see led can reflects lower numbers we decline report all much analyze compared decision more profitability. volumes understand to sequentially with to pricing given to QX, pressure. QX we in in focus a left, chart of the profitability, due which present can fully on revenues, to When we our that the revenues As our of our the you you the strong

hand, other to decline. revenues up this offset our part sequentially, the almost contributed of went XX% SaaS On and

while look consolidated into our in focus now XX% on profitability profit. mix almost to It SaaS right. XX.X% We SaaS the shows Let's increases the delivered a sequential in that on which margins, sequential XX profit. of grew both CPaaS see graph gross adjusted gross off. total which adjusted increase, and the means increase solid CPaaS paid

have As company since we IPO. you know, our SaaS Zenvia into a been transforming

we software quarter, are we profit, business represents During already can demonstrates XX% how effectively SaaS more our which this gross than CPaaS. see of our

On quarter we the QX the which XX% that DX, first SenseData was highlight of the is consolidate and to SaaS Movidesk. of third fully total. the revenue the in total side, quarter, from live the when a sequential Important represented SaaS in XX% improvement

Looking whitespace as to ahead represent we are in long about beginning Latin we our to America. just term, the Cassio SaaS huge gross And the said, XX% market expect tap in profit. of SaaS

Let's now side. the cost address

accelerated extracting the the Last week, non-personnel G&A This included especially also Latin reducing America. the workforce We among travel have others. in of many the initiative corporate structure announced of to synergies. and expenses, consulting total X% been and downsizing implementing such as throughout year, started cost cutting integration companies equivalent we of our acquired we initiatives the as

mainly incur this to process communications I severance. XXXX. to of with would one humans personnel to 'XX million execute were our you expect regarding We related that we approximately to reduce expenses share with this to time million we like all by transparent very in BRLX all expenses order expect with individually. BRLXX in made QX our In this,

supporting affected employees and replacement also providing career plans are by healthcare extending We opportunities.

we several with going down on Finally, to of our all On and expect implementing costs other as raised yearly a Altogether, downsizing, to XXXX. basis top reaffirm meetings expectations are to we million non-personnel the also forward. we a bring of employees commitments our savings. hosted by BRLXX plan generate

IPO. cash report EBITDA, related we the are believe of to happy is recorded XXXX of we EBITDA. a Therefore, last profitability future are a normalized related items non BRLX.X that metrics flow. This and to non-cash the to slide. become EBITDA, of this built have to in third to and us profitability the we is million we gives turning made BRLXX our for XX our and a excludes time out on, full gross EBITDA best its the growth. one taken certain evidencing adjustments we convert the third recorded a BRLXX Zenvia new able earn quarter the all discuss expenses we operations. initiatives years related expect to cash the we implemented since a toll year introduce outs, reach that the to announced. just which In confident positive This to quarter, excluding in feel years. sustainable of has has pattern introduce again, profitable the EBITDA already guidance, quarter into SaaS normalized EBITDA We confidence the which a we'll for next us of million. to profit The couple be This to company been history, payments also range the point million profitability downsizing Moving In guidance in which to returning means high earn year, in decision and have

normalized allowed to Another shows free flow. the the was flow which positive the slide in metric generate of quarter. positive This free cash cash million us BRLX.X bridge, quarter a

And in to which our announced transparency the number For end reduce understand gap. we to with the us and the recurring instruments October drastically the cash earn outs, Movidesk terms of DX of that cash balance. working excludes higher capital funding finally, the use allowed you a we generation their at flow ensure agreement and in level quarter to help of this

As BRLXXX totally million and from able paid reduce be to the XXXX. to EBITDA. total BRLXX to were continue positive payment generating extending gross can we approximately remain means profit this by expanding seen amount the million the to by This schedule slide, end focused on quarter in we of of fourth XXXX the

million and new As you recent changes company. to important in million introduce with previously indeed initiatives guidance as see, our full market also can an EBITDA a quarter, and All us lot the eventful BRLXX inside the between of of year dynamics allowed this mentioned. have BRLXX was

changes. guidance updating year important also full our we're XXXX Additionally, some with

We adjusted our we're increasing gross guidance, revenue are reducing but our margin.

the the should and growth Movidesk, six million CPaaS should BRLXXX BRLXXX guidance projecting mainly which and and it of profitability. months new be is terms BRLXXX including million, revenues the of SaaS The stems for year-over-year focus of already revenue In a on our revenues XX% concentrated to of BRLXXX BRLXXX revenue guidance, million, million the of and XXXX XX%. in reduction range while range is in BRLXXX million. CPaaS between the between and be in range a implies from revenues, million

to higher conclude to ready is percentage between reaching percentage CPaaS remained are and the margin expansion this, we X.X This on at is XX%, and with from gross be our Our X.X XX%. points take your points gross adjusted figure SaaS margin prepared remarks account adjusted taking gross questions. XX% With projected in margin we increase 'XX. to a to adjusted five the into XX% the

Operator

We [Operator the will session. Instructions]. begin question-and-answer now

comes The sell ahead, to go is sir. Chaves is the with our floor let's mic question. It Now Lucas, now Lucas yours. Zenvia. first on side open. analyst from Go

Lucas Chaves

having question. for Thanks my

here. questions two have I So

increase enter in details know you. opportunities or revenues in The could first after forward you terms we of if in I you is more to a enter selling question, could in if And inorganic XX% and expected into about more this details Thank that? I'd organic what's you may mentioned like the going quarter? the that one second had more cross

Shay Chor

I'll second come back opportunities, you, to your organic I'll inorganic selling revenue and growth. Cassio let your Lucas. Thank then start and question cross with versus the on

Cassio Bobsin

of integrating quarters terms we customers. products products last of can We've been these we expansion combined. structure that so go-to-market of to in to starting all our integration thank Lucas, operations we the of for portfolio to our the first the in part and accelerate these combining technology outs of solutions get from you we're do a benefit that making And was the earn terms and of over working actually couple did question.

so growth, products, they have we this evolution most benefit on quarters the opportunity customers been we that our new this Hence, we have from important product in products. for we one that to to quarter that our of be So that And go-to-market this can customers. doing. customers have different been solutions these really using this expect as big of our of are during our that see terms address able as initiatives we've are couple same are that operating that other and we targets next we combines within integrate

Shay Chor

And inorganic. question versus organic on your on

let's the CPaaS. between So SaaS separate discussion and

the is XX% pro pace. at SaaS So XX%, business growing forma

of go deals is very of was organic, continue the very from flexible right. has The reason to aggressive all negative that move competitive. forward. those see margins. decided been true to continues can why short And this very were us. terms trend And The we It going and us to true. been clients Business and is not to we for QX, accelerated this we pace in in and with dynamics CPaaS And should another that very player, QX, the this in that our CPaaS market is environment meaning specific be back So pricing. has this

So how keep and and will continue aggressive revenue prices balance monitoring essentially we pursuing profitability. between the are,

that. see we decent if profitability, opportunities to accelerate So we'll do at volumes, again

on anything on growth essentially on of is. the the competitive the CPaaS the depend aggressive know market will Cassio don't to organic I this how add environment CPaaS. business So

Cassio Bobsin

dynamics I think that the were terms seen most market. you broad the explained of

So don't expect Therefore, the sustainable adjusted market market we for there's volumes players in focusing see to that that we more naturally subsidizing is to we long customers, as the pricing on that something mid top large growth. on And to the sustainable some see term. be more in CPaaS. line

Operator

from comes analysts opening for please. Goldman question Vitor with our Vitor, sir, Okay ask sell Go side we're you. mic next the your Tomita, ahead, Sachs. question,

Vitor Tomita

Two Hello, good And our taking afternoon, questions side. from for our everyone. thanks questions. quick

you how qualitative know should uncertain but you more for volumes color and if us is Zenvia amid scenario. one could I And retail first second we some a year more Thank would think seeing given and higher usual be, sense, seasonally more our guidance, the provided CPaaS you are a question on full cycle The already give revenue sales in seasonality you. seasonality from updated of about margins? how QX, the macroeconomic

Shay Chor

understanding have Black the more qualitative at of do some QX, seasonality are revenues. what volume-based the do seeing looking of of So that we in in more some we Friday affect basis, promotional yes, effects and calendar, QX the

And of so we're expecting that on quarter. to the have some captured being fourth

we digital there uncertainty, not are back resources globally, all into lots still of and over environment more we XXXX, we where our also a cautious that more to leading bit are as processes safe deceleration on they're when as next growth And technology, and that top we also affect year, their to trend experience space. some from have only expect but companies again, how we this we're budgets. will normal is Looking their continuous customer that these could on growth, spending, affect and line companies apply at ceases expect the spending are are turbulence growth Brazil, projections mean occurs, expect which of IT this IT a of to always and macroeconomic that to this America to that for growth on 'XX deceleration. of making we get specially kind Therefore, have the seeing something of all comes expect our in Latin that but transformation,

Vitor Tomita

Very you clear. much. Thank very

Operator

[Operator Instructions].

are XXXX the on doing profitability. So layoffs costs? here in question of what I'll you to focus Can take top your welcome your web. We cut detail for the on you more

Shay Chor

to want that? you take do Cassio,

Shay Chor

Yeah, yeah, course. of

we we all, to that as reducing of reduce. costs our related structure, are some that, First can directly we have expenses

now in also not travel and will decided year. also everything. we for Also that we people and -- right that not for So reviewing reflect now, license not is team but that and And in a and the impact systems, consulting. are priority expense expense not for example, budget our as growth some the

additional with expenses all the every those doing have, XXXX. with that BRLXX million So package detail and we those for some of that of work deliver expense reduction looking we team we the more so are can

Operator

And your -- you steps? here are next is Another would web. be tell from how the one Can the us funding looking? gap what

Cassio Bobsin

So let take that me one.

As of and we've June, since of doing middle -- instruments. been of different end negotiating beginning assessing July, we've been

payment DX So the the with to the directly things grace terms earn renegotiations maturity, out to been We've the with time. the those are of provide banks and of us Movidesk earn and example. some negotiating period outs, for takes extend an

we that if of see us we've are this close all questions. and But us through credit. have any you will we we to to the and negotiating So to time we and more difficulties Operator, announcing be re-prompt been as will can tools those help instruments them have confident available discussing find deals. navigating that we

Operator

[Operator okay. Re-prompt, Instructions]

Shay Chor

Good we please comment take SaaS? How one in here. forward? I see clients one? the new you you growth another growth on take of afternoon, the of new I'll looking the can Cassio, clients think can that can

Cassio Bobsin

Movidesk. integration of been that the over just working starts project of for get a integrate integration benefit We've finish the the we especially solutions that concluded -- go-to-market have, as for these definitely. different now on we us we the Yeah, as of And all to acceleration Sirena. that

both combine service We success. conversion and are able to of solutions traction then

we also the And of stream same creates something growth, add couple to over same -- our of to of of products enriching we after them have of the our So customer we products in cycle to add expect to cross other same new go-to-market, which customers. -- the capturing means customers. selling That's looking been but from selling standalone can which and quarters, same benefit combination course, the sell that this presence a the customers, last products. not is only continuous that

bundle. We well new are them as customers, a for able as then to serve

that be not with able standalone achieve the So were we markets to solutions. can served

customers we our of open up their of require demands cases. adoption address than they more can Now the for that so or their one solutions, use

in that and level growth to though that an of we're is capture base solutions. see continuous facing we for continuous being environment that now the new terms growth we not say were we even there that with our So best is customers, solutions. customer of this economic for like integration We see that flow able combined demand the

of business a the drive to healthy couple quarters. SaaS growth over for very that expect next We our

Shay Chor

on I here don't this questions see any system. further

So…

Operator

Okay, let on me just to a seem second. column the more Q&A have any questions. session, here. check well, just don't then, Hold We

over. So now I Bobsin that over Mr. the our closing I concludes would like Bobsin, have Questions-and-answers for his would are now Cassio you back turn the this Q&A session. say floor. please, to And remarks. Mr. conference to

Cassio Bobsin

being much This you how a operation. strategy It's has time with history. growth implementing all Thank combining profitability. whole your to for to we're our get profitable this very towards know been

working we're we very can with go couple And so even see for get in company especially to to in next expansion historical the year, we that a of to trajectory all we platform combine of that the sustainable profitability proud that So future. that stronger, strategies back terms even that as expect quarters, next of have trajectory. been the

and in you month. your thank So the you time, see very much next for

Operator

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

much. now may nice a day Have you disconnect. You Thank everyone. so

Zenvia (ZENV) 17 Nov 222022 Q3 Earnings call transcript