Zenvia Inc. (NASDAQ:ZENV) is one of the oversold tech stocks to invest in. On September 15, Zenvia announced the election of Piero Rosatelli as its new Chief Financial Office/CFO and Investor Relations Officer/IRO. Rosatelli succeeds Shay Chor in the roles of CFO and IRO. Chor served the company for 4 years and has been assisting Rosatelli to ensure an orderly transition of responsibilities, and will continue to consult Zenvia’s Audit Committee. Before this appointment, Rosatelli resigned from his positio ...

Core Insights - Zenvia Inc. has appointed Mr. Piero Rosatelli as the new Chief Financial Officer (CFO) and Investor Relations Officer (IRO), succeeding Mr. Shay Chor [1][3] - Mr. Rosatelli has a strong background in technology investments and has led over forty tech deals, indicating his extensive experience in the sector [2] Company Overview - Zenvia is a leading cloud-based customer experience (CX) solution provider in Latin America, focusing on creating personalized and engaging experiences throughout the customer journey [1][4] - The company has nearly 10,000 customers and operates across Latin America, aiming to enhance brand presence, increase sales, and improve customer support [4]

Core Points - A significant immigration raid occurred at a Hyundai Motor and LG Energy Solution battery plant in Ellabell, Georgia, resulting in the detention of approximately 475 individuals, including over 300 South Koreans [1][4] - A chartered plane carrying the detained South Korean workers departed from Atlanta, marking a diplomatic incident between the U.S. and South Korea [2][4] - The South Korean government is actively working to ensure the safe return of its nationals and is collaborating with affected companies [5][6] Company Impact - The raid has led to a delay of at least two to three months in the construction of the battery plant, as stated by Hyundai CEO Jose Munoz [6] - Munoz expressed surprise at the immigration action, noting that the use of specialized labor is common during the initial phases of plant construction [7] - The plant's construction requires specialized skills and equipment that are not readily available in the U.S., highlighting the reliance on foreign labor for such projects [7]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported a strong top-line growth of 24%, primarily driven by CPaaS and the rollout of Zenvia Customer Cloud [3][4] - Consolidated adjusted gross profit fell to R$69 million, with a gross margin down to 24%, although stable compared to Q1 [4][5] - Normalized EBITDA for the quarter was R$11 million, below expectations, but the company anticipates a progressive recovery throughout the year [5][11] Business Line Data and Key Metrics Changes - SaaS revenues grew 3% year over year in Q2, mainly from SMB customers, while Zenvia Customer Cloud revenues increased by 23% in the first half of the year [5][6] - CPaaS revenues were up by 33%, accounting for 72% of total revenues, but this higher mix with low margins negatively impacted gross profits and margins [7][9] Market Data and Key Metrics Changes - The market remains highly volatile and competitive, particularly affecting profitability in the short term [4][12] - The company expects CPaaS margins to normalize closer to 20% by Q4 of this year [9][21] Company Strategy and Development Direction - Zenvia Customer Cloud is positioned as the new core business, with expectations of 25% to 30% growth in 2025 [6][12] - The company is focusing on streamlining operations and enhancing efficiency, with AI playing a significant role [12][36] - There are ongoing evaluations for divesting non-core assets to optimize the balance sheet [12][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape and pricing pressures but believes the current strategy will lead to long-term profitability [20][23] - The company is optimistic about the future, expecting to transition from volatile revenues to a more stable, high-margin business model [35][36] Other Important Information - G&A expenses decreased by R$9 million, or 27%, compared to the same period last year, bringing the G&A to revenues ratio down to 9% [5][10] - The company has implemented strict expense management since the end of 2022, resulting in significant cost savings [10][11] Q&A Session Summary Question: Can you provide more color on forward guidance for Zenvia Customer Cloud? - The company maintains expectations of around R$200 million in revenues for Zenvia Customer Cloud, with growth of approximately 25% and gross margins close to 70% [16] Question: Are tight margins on the CPaaS side the new level? - Management indicated that while margins are under pressure, they expect stabilization at a higher level by year-end as cost increases from carriers are passed through [20][21] Question: How is the enterprise side performing for both Zenvia Customer Cloud and the rest of SaaS? - The company has seen adoption of Zenvia Customer Cloud by enterprise customers, which was not the initial focus, indicating a positive shift in strategy [24][25] Question: Can you provide insights on cash flow and divestitures? - The trailing 12 months EBITDA is close to R$100 million, with approximately R$60 to R$65 million in cash flow available to serve debt, leading to considerations for asset divestment [26][28]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported a strong top-line growth of 24%, primarily driven by CPaaS and the rollout of Zenvia Customer Cloud [3][4] - Consolidated adjusted gross profit fell to R$69 million, with a gross margin down to 24%, although stable compared to Q1 [4][5] - Normalized EBITDA for the quarter was R$11 million, below expectations, but the company anticipates a progressive recovery throughout the year [5][11] Business Line Data and Key Metrics Changes - SaaS revenues grew 3% year-over-year in Q2, mainly from SMB customers, while revenues from Zenvia Customer Cloud increased by 23% in the first half of the year [5][6] - CPaaS revenues were up by 33%, accounting for 72% of total revenues, but this higher mix with low margins negatively impacted gross profits and margins [7][9] Market Data and Key Metrics Changes - The market remains highly volatile and competitive, particularly affecting profitability in the short term [4][12] - The company expects CPaaS margins to normalize closer to 20% by Q4 of this year [9][21] Company Strategy and Development Direction - Zenvia Customer Cloud is positioned as the new core business, with expectations of 25%-30% growth in 2025 [6][12] - The company is focusing on streamlining operations and enhancing efficiency, with AI playing a significant role [12][36] - There are ongoing evaluations for divesting non-core assets to optimize the balance sheet [12][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape and pricing pressures but remains confident in the long-term strategy [20][23] - The company aims to transition from volatile revenues to a more stable, high-margin business model over the next two to three years [35][36] Other Important Information - G&A expenses decreased by 27% year-over-year, contributing to a lower G&A to revenues ratio of 9% in the quarter [5][10] - The company has implemented a workforce reduction of approximately 15%, expected to yield cost savings of R$30 million to R$35 million for the full year 2024 [10][12] Q&A Session Summary Question: Can you provide more color on forward guidance for Zenvia Customer Cloud? - The company maintains expectations of around R$200 million in revenues for Zenvia Customer Cloud, with growth of approximately 25% and gross margins close to 70% [16][15] Question: Are tight margins in CPaaS the new level, or should we expect recovery? - Management indicated that while margins are under pressure due to competition, they expect stabilization at a higher level by year-end [20][21] Question: How are the dynamics for enterprise customers in both Zenvia Customer Cloud and the rest of SaaS? - The company has seen adoption of Zenvia Customer Cloud by enterprise customers, which was not the initial focus, but is proving successful [24][25] Question: Can you provide insights on cash flow and divestitures? - The trailing 12 months EBITDA is close to R$100 million, with approximately R$60 million-R$65 million in cash flow available to serve debt [26][27]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported a strong top-line growth of 24%, primarily driven by CPaaS and the rollout of Zenvia Customer Cloud [3][4] - Consolidated adjusted gross profit fell to R$69 million, with a gross margin down to 24%, although this margin remained stable compared to Q1 [4][5] - Normalized EBITDA for the quarter was R$11 million, which was below expectations, but a progressive recovery is anticipated throughout the year [5][12] Business Line Data and Key Metrics Changes - SaaS revenues grew by 3% year over year in Q2, mainly from SMB customers, while Zenvia Customer Cloud revenues increased by 23% in the first half of the year [5][6] - CPaaS revenues were up by 33%, accounting for 72% of total revenues, but this higher mix with low margins negatively impacted gross profits and margins [7][10] - Adjusted gross profit for the SaaS business was up 5% year over year to R$45 million, with adjusted gross margin slightly up by 1 percentage point to 55% [8][9] Market Data and Key Metrics Changes - The market remains highly volatile and competitive, particularly affecting profitability in the short term [4][13] - The company expects CPaaS margins to normalize closer to 20% by Q4 of this year [10][22] Company Strategy and Development Direction - Zenvia Customer Cloud is positioned as the new core business, with expectations of 25% to 30% growth in 2025 [6][12] - The company is focusing on streamlining operations and enhancing efficiency, with AI playing a significant role in both client delivery and internal operations [13][36] - There is an ongoing evaluation of options to divest non-core assets to optimize the balance sheet [13][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape and pricing pressures but believes that the current strategy will lead to long-term profitability recovery [22][25] - The company is confident in achieving a solid foundation for 2026, with expectations of improved profitability levels by the end of the year [12][36] Other Important Information - G&A expenses decreased by R$9 million, or 27%, compared to the same period last year, bringing the G&A to revenues ratio down to 9% [5][11] - The company has seen a significant reduction in G&A expenses, now at one-third of what it was in the first half of 2022 [11] Q&A Session Summary Question: Can you provide more color on forward guidance for Zenvia Customer Cloud? - The company maintains expectations of around R$200 million in revenues for Zenvia Customer Cloud, with growth around 25% and gross margin close to 70% [18][19] Question: Are tight margins on the CPaaS side the new level? - Management indicated that while margins are under pressure, they expect stabilization at a higher level by year-end as cost increases from carriers are passed through [22][23] Question: How is the enterprise side performing for both Zenvia Customer Cloud and the rest of SaaS? - The company has been able to retain enterprise customers and is seeing adoption of Zenvia Customer Cloud by these clients, which was not the initial focus [26][27] Question: Can you provide insights on cash flow and divestitures? - The trailing 12 months EBITDA is close to R$100 million, with approximately R$60 to R$65 million in cash flow available to serve debt, indicating a near break-even position by year-end [28][29] Question: What will the business look like in two to three years? - The company aims to become a leading AI CX SaaS provider, transitioning from volatile revenues to a more stable, high-margin business model [36][38]

Financial Performance - Zenvia's net revenues increased from BRL 231 million in Q2 2024 to BRL 286 million in Q2 2025[4] - Non-GAAP adjusted gross profit increased from BRL 100.2 million in Q2 2024 to BRL 101 million in Q2 2025[11] - EBITDA decreased from BRL 34 million in Q2 2024 to BRL 11 million in Q2 2025[6] - General & Administrative (G&A) expenses decreased by 25% from H1 2024 to H1 2025, from BRL 64.6 million to BRL 48.2 million[14] Segment Performance - Zenvia Customer Cloud (SaaS) revenues increased 23% year-over-year[7] - CPaaS revenue mix increased, impacting gross profit[7] - SaaS revenue mix increased from 66% to 72%, while CPaaS decreased from 34% to 28%[8] - Non-GAAP adjusted gross margin for SaaS increased slightly from 54.5% to 55.4%[11] - Non-GAAP adjusted gross margin for CPaaS decreased from 43.3% to 24.1%[11] Strategic Initiatives - The company is on track to deliver expected savings of BRL 30-35 million from workforce reduction[13] - Zenvia Customer Cloud is on track for 25-30% growth in FY 2025[7]

Core Insights - Zenvia Inc. reported a 23% year-over-year increase in revenues from its Zenvia Customer Cloud services, indicating a successful transition strategy [2][3] - The company anticipates a full-year growth of 25% to 30% for Zenvia Customer Cloud in 2025, driven by strong adoption among new customers [2] - Despite revenue growth, Zenvia faced profitability challenges due to intense competition in the CPaaS market, leading to a significant decline in gross profit margins [2][12] Financial Performance - Q2 2025 revenues reached BRL 285.7 million, up 23.6% from BRL 231.2 million in Q2 2024, with CPaaS revenues growing by 33% [3][23] - Gross profit for Q2 2025 was BRL 56.4 million, a decrease of 35.6% compared to BRL 87.5 million in Q2 2024, resulting in a gross margin of 19.7% [3][23] - Non-GAAP Adjusted Gross Profit for Q2 2025 was BRL 68.8 million, down 31.3% year-over-year, with a Non-GAAP Adjusted Gross Margin of 24.1% [3][29] SaaS Business Highlights - SaaS revenues increased by 3% year-over-year in Q2 2025, totaling BRL 80.6 million, primarily driven by Zenvia Customer Cloud [8][10] - Non-GAAP Adjusted Gross Profit from the SaaS segment was BRL 44.7 million, reflecting a 5% increase year-over-year, with a Non-GAAP Adjusted Gross Margin of 55.4% [9][29] - The total active customer base for the SaaS segment was 5,783, indicating ongoing customer engagement despite competitive pressures [6][8] CPaaS Business Highlights - CPaaS revenues reached BRL 205.1 million in Q2 2025, a 33.3% increase from BRL 153.9 million in Q2 2024, driven by higher SMS volumes [11][12] - However, Non-GAAP Adjusted Gross Profit for the CPaaS segment fell by 58% to BRL 24.1 million, resulting in a Non-GAAP Adjusted Gross Margin of 11.8% [11][12] - The total active customers in the CPaaS segment decreased by 28.1% year-over-year, totaling 3,958, reflecting challenges in maintaining customer relationships [11][12] Cost Management and Future Outlook - General and administrative expenses decreased by 25% year-over-year in H1 2025, contributing to a G&A as a percentage of revenues of 8.3% [10][17] - Normalized EBITDA for H1 2025 was positive at BRL 31 million, although below expectations, indicating a need for continued focus on profitability [18][10] - The company aims to return to normalized profitability levels by year-end 2025, establishing a solid foundation for growth in 2026 [2][18]

Core Insights - Zenvia Inc. is set to release its fiscal second quarter 2025 results on September 10, 2025, after market close [1] - A webcast to discuss the results and business outlook will be held on September 11, 2025, at 10:00 am ET [1] Company Overview - Zenvia is a leading cloud-based customer experience (CX) platform in Latin America, focusing on transforming customer journeys [3] - The company has over 10,000 customers and operates throughout Latin America, providing a unified, multi-channel customer cloud platform [3] - Zenvia aims to enhance brand presence, increase sales, and improve customer support, thereby generating operational efficiency and productivity [3]

Financial Data and Key Metrics Changes - In Q1 2025, the company recorded a strong top line growth of 39%, reaching almost 300 million reais, primarily driven by CPaaS [3] - Consolidated adjusted gross profit declined 21% to 74 million reais from 94 million reais a year ago, with gross margin decreasing 25% [4] - Normalized EBITDA totaled 20 million reais in the quarter, in line with expectations, and is expected to increase progressively over the year [5] - The company ended the quarter with a cash balance of 86 million reais [11] Business Line Data and Key Metrics Changes - CPaaS revenue increased by 58%, making up 73% of total revenues, while SaaS revenue grew by 5% year over year, representing 25% of total revenues [6][7] - Adjusted gross profit from SaaS remained stable at 43 million reais, but adjusted gross margin decreased by 2.7 percentage points to 54% [8] - The CPaaS business was impacted by newly acquired clients with lower margins and increased SMS costs from carriers [10] Market Data and Key Metrics Changes - The company observed strong SMS volume growth year over year, although there was a slight deceleration expected in Q2 compared to Q1 [19][26] - The company anticipates around 50 million reais in revenues from LATAM in 2025, representing over 50% growth compared to 2024 [40] Company Strategy and Development Direction - The company is focused on expanding Xenvia Customer Cloud in Brazil and Latin America, aiming for organic growth while maintaining a commitment to deleveraging [12] - The rollout of the new strategic cycle is expected to impact short-term profitability but aims to boost medium and long-term performance [13] - The company is evaluating opportunities to divest non-core assets to optimize capital structure [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q1 was strong, there is a softening expected in Q2, but SMS volumes continue to grow year over year [19][26] - The company is confident in the growth of Xenvia Customer Cloud and SaaS, expecting continued trends from Q1 with some acceleration in Xenvia Customer Cloud [27] - Management emphasized the importance of deleveraging the balance sheet to accelerate growth, especially in a high-interest-rate environment [23] Other Important Information - The company incurred approximately 8 million reais in one-time severance costs during Q1 related to workforce reduction [5] - G&A expenses decreased by 24% year over year, reaching 24 million reais, which is 8% of revenues [10] Q&A Session Summary Question: Reasons behind CPaaS growth in SMS volume - Management indicated that the growth is primarily due to marketing campaigns relying on SMS, rather than AI-related factors [16] Question: More details on Zenvia Customer Cloud growth - The 15% year-over-year growth includes both new clients and those migrating to the platform, with expectations for acceleration as awareness increases [19] Question: Current headwinds for Zenvia Customer Cloud adaptation - Management stated that they are being cautious in migrating customers to ensure a positive experience, rather than customers being hesitant [20] Question: Progress on asset sales and leverage - Management noted that they cannot comment specifically on asset sales but are focused on deleveraging the balance sheet and improving capital structure [22][23] Question: Guidance for the year and trends - Management refrained from providing formal guidance but discussed trends indicating strong growth in SMS and Xenvia Customer Cloud, with expectations for a stronger second half of the year [26] Question: Customer churn and retention strategies - Management acknowledged some churn in legacy solutions but reported healthy retention rates in core software, emphasizing efforts to improve customer experience [42]