ZENV - Earnings call transcript Q3 2024

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Operator

Good morning, and thank you for standing by. Welcome to Zenvia's Q3 2024 Earnings Conference Call. Today's speakers are Mr. Cassio Bobsin, 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. Instructions]. [Operator

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

Cassio Bobsin Machado

full comprehensive to everyone, . The and to we CEO. culmination at milestone you all joining and more the relationships back goal, are Earnings to create Hello, with commitment in I'm this brands and practical official in to easy-to-use of Thank a while you us most Zenvia through brands customer AI-driven decided employed quarter strategic become being platform launch of we IPO in Quarter analytics to This the today. enhancing data of Call. platform Founder Third of CPaaS customers the Cloud XXXX solutions us better. plan this a Bobsin, enable Cassio series for was serve our their initiated thank experience Latin evolve at engaging and of before in highlight vision. making Zenvia's for after a conclusion full that and when from significant a SaaS America. experiences of customer this the XXXX After personal, held the and Customer is acquisitions sell aimed was mid-October

to and years. pursuing value our optimal growth as our serves enhancing platform represents leverage, launch X outlined and next sustainable company SaaS years of cornerstone in the solutions CX time, ago. vision its organic innovative strategy unlocking This the the Zenvia's next SaaS structure profitability, the for strategies shareholders. generation centered driving boring At same our of a X on for capital reducing delivering

is resulting quarter profitability. impact of having Zenvia as also we that a which Customer percentage in terms expenses the a becoming our the in notable revenues at efficient Cloud, more on with this been a that we Along our reduction strong look our in measuring main G&A year-over-year operations metric streamlining in and strides EBITDA launch made of has of

call the quarter, and Shay hand cover . now for to our the to I'll over I'll available Q&A. the be performance in

Shay Chor

and I our would the today. of start snapshot performance. Hello, joining for like thanks us to

numbers X 'XX are growth profitability QX and happy XX. move in to guide top months strong both as our for of solid line with in EBITDA and we report to a double-digit expansion our of meet We year-over-year and

one-off to were The The is balance cash segment and quarter us certain revenue, with impacted that side continue we'll But temporary lower by not revenues. in of volume said, CPaaS the factors: EBITDA day, pursuing in end goal terms reais, this is results flip percentage EBITDA. in one-off the opportunistic X expect this that volumes were our in don't main first, for we terms. same terms percentage, of QX. at That volumes opportunities in generate our reason profitability in the in comes of why

more and drive launch our with SMBs. on see that adopting increase the platform, Customer only also sequential in more mainly forward. comes digits Cloud. not segment of SMBs basis, grew companies double on our the basis. And especially a but The from Zenvia a SMBs the growth Second, segment are will year-over-year SaaS moving we our

on below coupled very profit reported, we gross putting portion highest the X XX and segment EBITDA the strict of reaching same we the to quarter, competitive that company expectations pressure level of growing period our a years. threefold to million BRL third, boosted over continue therefore, year which the of control profitability. our is quarter in almost last in the expense performance see with enterprise and compared stronger environment The And the the our in third SaaS sales place in to last with new that

from XXX% about roughly is up And million, XX XXX our months BRL BRL it you XX within period million at the of million. range XXX to same EBITDA, last if guidance landed the year. last BRL million totaled XXX BRL which look EBITDA Year-to-date, of

reminder, excludes As earnouts EBITDA we're normalized events. about nonrecurring that talking and the a

take look closer at Let's performance a now segment. per

remarks, see can quarter spending that you X revenues and an BRL the revenues in slide, BRL X both months of As almost period CPaaS months this in in digits and these just grew opportunities beginning both XXX of XX% of Saas million onetime in I of million. to reached quarter, double XXX my because mainly by CPaaS third taking CapEx the and all-time mentioned 'XX. high the

growth expected in is therefore, In share year, months revenues year. SaaS our versus Sequentially, is of quarter increase an again came next delivered year, last we enabled expansion last the our to and This rate mainly SaaS from the quarter. same X the business year-over-year. same the revenues which of in grew the to registered XX% SaaS compared SMBs Our engine, the gain XX% period QX. first XX% of in our

Let's how now better a expansion our mix. into take portfolio at has this translated look

the period. CPaaS in the revenue I the participation I explained. factors one-off mix because much had a of mentioned As and profit beginning, gross both in of higher we of in the

on volumes directly As was focus converted we to we that don't to CPaaS here, given in always EBITDA need mix the these G&A revenue. that discussed into again impacts CPaaS our here are like but contribution the highlight to high generate margin a I capturing additional revenue the higher would that

SaaS and growth a have integration of solution, on ahead, Zenvia Looking line top leverage with Customer investing been Cloud. expect the lot to we we the

monthly on terms of mostly Customer to full the its As we model SaaS company a model into in leadership it, subscriptions, and channels. move more becomes the with leveraging more Zenvia cloud, the all integrating the businesses new

more detail know, CPaaS profit BRL adjusted We similar. Here in from segments In boost margin recorded in consolidated BRL XX% the of adjusted both highlighting and XX% segments, from this in recorded But SaaS the as million not from from slide, XXX a BRL and in profit the quarter. discuss have margins SaaS of the XX XX and we gross in this are of you QX, we'll XX% this on margins CPaaS. CPaaS, each gross basically quarter. in million million segment, both

CPaaS down the the basis SaaS stable, from I impact enterprise margin explained. While margin that by XXX points year-over-year, mainly just went remained the

So in to we the full margin year, with a our lower can consolidated at CPaaS in mix down still the XX%. higher guidance we as next year in adjusted SaaS of combination see of basis very looking margin months brought slide. landing points, XXX X Despite close to the that, the the are first gross the

BRL mentioned in final boosted of adjusted drop that infrastructure phase that million, X period mix large went that have lower the I by from same acquired the in the see the margins the we with integration numbers, of The So recorded the million SaaS gross year. in BRL XXX quarter million quarter of but since coupled XXX been is which enterprises by to XX% in with BRL from year. from this last margins we the year. amount of profit, looking increase also the companies earlier, explained the first the related the turn costs we The XXX up CPaaS, at segment virtually last in months consolidated SaaS contributed same highlighting

guidance gross As for consolidated the the one-off for putting year. X CPaaS adjusted months due opportunities, the mix in the margin increased to below us XX.X%, reached revenues our slightly

below are on to While guidance, we management what the happy see revenues ultimately how more balance into is us EBITDA, number are any is will much to focused sheet. translating drive leverage never which

control strictly remain So under on EBITDA. generating let's throughout now this year. is We G&A, discuss keeping laser-focused which our costs whole key to

by line us are in as the digits additional to We any which we periods. double our leveraging been top G&A, operations than our double EBITDA growing without more have enabled both

XX% a of G&A year-to-date our as revenue increased productivity. 'XX, G&A representing almost fact, to bringing X in of XXX XX% points months percentage ratio as in comparison, to In a result drop. the This are the months basis in X decrease of down we led from

If our points we ago the the a is period X XX.X% started you from we this recorded look first of ratio streamlining versus efforts. basis when same years XXX drop XXXX,

Cassio able been the this We next pivot to is growth, this way, remarks. as company for in opening are improving to vital phase mentioned of productivity the very proud that have his

slide. to on next the Moving

shareholders. This business. the which like highlight we for key from are our believe generate Another financial and in ability our maintain that for operational also cash to helps to minus deleverage, not index flexibility R&D is only the growth, metric but efficiency, reward how assessing understand metric flow to we crucial is accounting fund a future CapEx, necessary EBITDA highlights our positioning well after you our we'd operations ourselves core

saw when As last this you we can see of months still negative. a but the our figure, in deducted first EBITDA, small X slide, year, the negative CapEx from in we

year compared BRL million. million. now months X of XX these almost when see ago. BRL And minus look it we EBITDA improved XX when the our Now months, a BRL almost million in CapEx was XX at we minus XX CapEx 'XX, last EBITDA to In positive

improvements Now next in let's these discuss on cash in our steps. some generation updates with mind,

last an having in CapEx with increasing than been few obviously, expect will previous increase organic growth. the our our And an triggering faster we EBITDA saw to the the just client at aligned for us investment structure allow quarters. slide, of our a our we that more As acquisition, keep that is in case EBITDA will has as pace capital it acceleration

territory positive be existing line well to reduced in lot to with that capital second our leverage semester tools in from Putting of back will have improved XXx structure. We we working from over seeking net ops. into flexible more as resumed 'XX we'll at to cash period believe late the then, EBITDA in to 'XX. on the our as our more use end terms September since have generation We our that capital debt numbers, EBITDA of continue from a we Until X.Xx

expansion LatAm we our outside already initiated On Brazil. the front, have

to stages, still to see in positive our results. is it XXXX While a the impact we early expect

we we To reiterating finalize, year, are guidance the approach 'XX. of for our the as end

growing again, to generating as keep to we in and tactics trust focus organically have EBITDA we your appreciate Once on the the ahead. will leverage Our continued and and continue move been be company.

building profitable We a and Zenvia. are committed future exciting for to

and With our to prepared remarks take this, your ready we conclude questions.

Operator

question [Operator UBS. sell-side Instructions] Our [indiscernible], first from Ramon analyst comes

Unknown Analyst

from side. Two my

active have Zenvia much customers on total SaaS large Cloud, do you the competition Customer especially in comment the additions enterprises? an attribute how please of increase net seeing you quarter. you could are to we of segment, in First, How please? And the the launch in then seen in

Cassio Bobsin Machado

enterprises the Customer So of large about competition. starting the Zenvia launched beginning focused on We at mainly question SMBs. and Cloud,

Although customers platform. are adoption adopt We're that have the early for will that to impactful days understand enterprise our of be we how customers enterprises. already still large

the seeing to connecting important Customer adoption the we that of are we to by bringing see Zenvia move benefiting also And customer it the different a are for platform. these Still the customer customers of that very SMBs, Cloud, solution how of but these points impacts quite these relationships are with that large market would the most journey. But be is understand we're companies proposition we better And makes as that we unique on first that for enterprises be, excited that. are adopting early using. the

increase customers customers, the looking cross-selling. that focusing part active and the yes, the for is current an goes into of mentioned, Customer adoption traction we're mainly and because Zenvia your the customers total good get of question, on about both In quarter, very we're which new starting in last as I SMBs and to at heavier we're Cloud, having

cohorts higher We cross-sell are XX what the these already that had customers, we Customer these Zenvia before. to have are seeing comparing a around they that Cloud, using

from adopt before, be would customer that we Zenvia. sell the a As product -- purchase had to new like each second the to

eliminated Customer products. adopting the we Zenvia other all bureaucracy with But Cloud, these on

click So away they are a from adoption.

to we're XXx before. of We're having And stand-alone customers numbers. of in migration our we from starting is impact the already that that phase to XX products, products. from the cross-selling the adoption former this overall So had

question. the It's from to customers the part That pure are waves third come especially Cloud. goes first that Customer in CPaaS. of of still that seeing the these ones migration your we and

but and CPaaS for from a of in stuff customers them using Customer for all customer forth for the usage start they're of the usage so provide migrate and service pure not just we software they Cloud, using benefit on. that channel because they As to sales, channel pure Zenvia able so for the see marketing days. to couple

the of into migration from goes being like turning CPaaS to making using whole address overall into Zenvia all that we're a customers and more these a SaaS software excited base. impacting is Cloud new customers quarters. in coming channel decrease of this these terms. migrated That's these -- and customers. that and the customer have Zenvia So And happen to Customer what having kind like from customers platform. of company both CPaaS numbers the practical why strategy for We're in new next pure of the customers

Shay Chor

some you questions webcast. numbers you Can And an details here basis? also said. these if we be rollout can . where pick how very the is just I in it's now of share qualitative number we can me on Cloud? just as stages early little here qualitative Let the numbers in see you more Cloud? And help Cassio early are there share then little understand share but around be Zenvia the guess on extension by this at stages. of Customer from share Cassio early stages, can And what evolution of a Anything and are terms share we that How we going? Customer can a say on Zenvia you very upfront a can and that any the stage. I'll basis, polluted being

Cassio Bobsin Machado

that March. rollout officially, Sure, we we just then in with had in had Ami, this One then ads Zenvia four to in helped we next X October, say, the feature, question. campaigns I'll practical a prelaunch in on launched AI combined to more products October customers that on a to We Zenvia first and for phase completing the Customer a And of this another also prelaunch now the Cloud features. during, digital is marketing launched terms, prepare solution. had March thanks And had with very . In important new And products initial had for Customer journey. the Cloud March. of interesting we We And July, around sales phase. the sales in customer Gen X prelaunch. fine-tune we reps product the the launched we and for process chatbot engage phase in because being parts optimization. channels. very us for in

of Now convert we understanding journey enter ad customers ads by helping spending the the portion companies the best. it and their optimize to which

of acquired launched part Customer Serve also launch of and a the very what which in important we Movidesk. we is we part now company of now Zenvia Cloud. ], And [ October. XXXX is The was part call is that That

bot former why to customer to and have migrating available to Cloud processors controls from we all support sales features with introduce now from these So all ticket already automation, ads we're Zenvia marketing for campaigns chat unified new these to automation solution. products, Customer our customers. That's customers

expect would we combine our deployment all are help of when Zenvia that and and the we the months, company's all will data Customer stats couple with the complete to the to that And their comes features the expect own can also end Cloud. that systems that insights these journey more from parts in different customers have nurture data-driven that -- their of relationship actionable to road customer features accumulated next we create to use the data being AI-driven more of from these map,

for we're the into a agents on our customers there, that and help to deploy customer to be but only processes very offering automate also market. and going are from such as prevention, different unique And not features working going will we're churn that evolve cross-selling, ads multiple to optimization interactions, to

and So we of a of working what are that's review we're a bit on, launching.

Shay Chor

first going I'll and think So the let take can here. then me answer second I part. keep Cassio And this part,

CPaaS about That usually non-recurring were and So XQ and some should of SaaS? revenues think PET seasonality. said, what the how by for impacted we revenues have quarter-over-quarter QX

Cassio Bobsin Machado

what QX CPaaS, below slightly can QX. in had we Okay? revenue expect in we regarding So

nonrecurring said, CPaaS. As we a done volumes have regarding you

have QX, So seasonality even we below QX. slightly though when we expect in compare with a revenue we

that still we Regarding SaaS, or in expect with path better the we're a growth we than little of growth, bit the QX. had same

with all So for we of see the growth. path year that it. the that's is same the SaaS

Shay Chor

the you of having volumes be second ahead would the fair part, we're are assume given this in CPaaS, it Yes. take tracking guidance? one, And to I'll

all tracking revenues, within CPaaS we QX. are don't in think on for No, we in which guidance expect to repeat volatility metrics are the there's business as the just -- of we again, I some mentioned, Cassio that terms

not strong a is it's be QX. there as to seasonality, going Although as

So guidance point are reiterate we XXXX the that this to comfortable at have. we

Operator

[Operator Instructions].

Shay Chor

Question here for products? heavy deep in How able Cassio. is to Are charge for the AI embedded capabilities? you more

Cassio Bobsin Machado

Sure. Awesome question.

are improvement, complete different about customer -- experiences. pure that features. So for or already X I support automation have, customer go say, AI They features of improvement, my for features would from we sales full co-piloting co-piloting X

perception with brand relationship. interactions overall We of past have to customers the their the and analysis understand of

AI have AI that's the practical on being other remember. useful, the optimization. embedded very, ones it's working use marketing used And very to We in campaigns And because very we're could for features I several product.

that data engine, with the are complete use on that use experiences that platforms charged by are along same because they powered not And solution features a AI, just AI other not we generally that which providing able Cloud Customer our alarm better is an way these interactions. the is we the we monetize term And future for at to on how long customer were charging features, we expect near Zenvia able to is that's going And that we but the how some tokens by by develop all commodity, business volumes providing by these for a customers capture we to is but create AI model it's that product results we software. speaking, way the of not several to we as . that, token-based understand point, using become because adopt, which that are AI

Shay Chor

point revenue you . the potentially the Another been you've expenses company's impact delivering, growth? one it think could given some do reduction at here, future

Cassio Bobsin Machado

acquisitions, series we pretty we our normal it's from come of and find a able at all, to optimize synergies, we're that as structure. Not

combining operation products we cost way the we brings scale -- lots optimizing Zenvia serve are in we're way us similar from can the revenues result our a keeping into -- we our also sell, moving As of while all Cloud, similar same be structure having the the that optimized that of time, avoid customers. and all the part and our we to processes can a we way and less that more that of integrating systems as efficiencies acquired as combination we're Customer get interact organizational customers at serve unified of into the operating companies way from helps and benefits do the of scale and us employ the of a process to each we people the .

Shay Chor

-- And this streamlining on second said, half in what Cassio add I'll our operations 'XX. been doing we've just we've been the of

something the blue, once. So came at it's doing out not of are we that and

been planning through operations we've the So and been this time. we've adjusting

reduction. And as that as Cassio simpler would simpler mentioned, products we have lead naturally discontinued processes to and

-- comfortable waves. it's So in very the this we've we not way doing are in been that

a You or year? had income expect next next in we Can positive net quarter more the in quarter. the

is So shareholders right? Obviously, deliver shareholders do net generating delivering through to P&L, seeking will go something to all to and we seek. we always value value income is

highlight finance from we positive a derivatives have. Specifically -- one-off impact had income in in a mark-to-market this to quarter, of we it's that important impact that

about translate net we the positive healthy delivered, but converted that, EBITDA on income into as cash sheet. and the leveraging positive is also improve obviously, EBITDA they to that that that income being excluding a the have reflection million, balance results results So and of P&L, in expect and right? of will the into that help to even good BRL results But we the XX would net had

into good translate P&L and to So it's both on us flow. delivering at cash will continue results

for 'XX Can terms in you EBITDA? flow cash elaborate guidance of free about

have month, to We point, still at are Cassio, us into a of results. ahead XXXX. we no, this delivering continue looking Unfortunately, right at least still

early for And XXXX, So 'XX, for at planning still year. although on we are much focused some delivery guidance next are in most 'XX. already point we likely continued the

be with Which Zenvia for minimum the stock offering? would the use regards price to shelf

that price have we make price. execute prices we'll specific a disclose there. sense it's opportunistic to execute on The viewed for flow can share opportunistic on can on and move so it's We limitations flow if the offering are is is and If and an to shelf due what are don't how aligned, for and share will move, an I the volumes. share aligned, cash us show. some we price cash it as tell and But us have

Yes. on think the questions we I there That's any I phone. done here don't if are web. are further know on it. the

Operator

turn Cassio closing Q&A concludes I our back conference . his to like session. remarks. This Bobsin Mr. to for would the

Cassio Bobsin Machado

you of the Zenvia It's results guys all We're on you building trends on better expect well, experience for the very get to we're much even next and this here. we for we see very, Cloud very quarters. in future. of amazing performing having Thank the excited quarter, of an especially the the with numbers what them so and couple Customer

guys time. you see So next

Operator

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

You may a now nice disconnect. Have day. very

Zenvia (ZENV) 19 Nov 242024 Q3 Earnings call transcript