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][4] - Consolidated adjusted gross profit declined 21% to 74 million reais from 94 million reais a year ago, with gross margin decreasing 25% [4][9] - Normalized EBITDA totaled 20 million reais in the quarter, in line with expectations, and is expected to increase progressively over the year [5][10] 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 for SaaS remained stable at 43 million reais, but adjusted gross margin decreased by 2.7 percentage points to 54% due to the transition to Zenvia customer cloud [8][9] - G&A expenses decreased by 24% year over year, reaching 24 million reais, which is 8% of revenues, down from 14.7% a year ago [9][10] Market Data and Key Metrics Changes - The company expects SMS volumes to continue growing year over year, although at a slightly decelerated pace compared to Q1 [18][24] - The company estimates around 50 million reais in revenues from LATAM in 2025, representing over 50% growth compared to 2024 [38] 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 [11][12] - The rollout of the new strategic cycle is impacting short-term profitability but is expected to boost medium and long-term performance [12] - The company is evaluating opportunities to divest non-core assets to optimize capital structure [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q1 was strong, there is a slight softening expected in Q2, but SMS volumes are still expected to grow in high double digits [18][24] - The company is optimistic about the growth of Xenvia Customer Cloud and SaaS, with expectations of 25-30% growth for the full year [19][24] - Management expressed satisfaction with the current churn levels, indicating that early churn is primarily from legacy solutions [41] Other Important Information - The company incurred approximately 8 million reais in one-time severance costs during Q1 related to workforce reduction [5][10] - The company ended the quarter with a cash balance of 86 million reais and expects EBITDA to continue growing faster than CapEx [10] Q&A Session Summary Question: Reasons behind CPaaS growth in SMS volume - Management indicated that the growth is primarily due to marketing campaigns rather than AI-related factors [15][18] Question: Clarification on Zenvia Customer Cloud growth calculation - Management explained that the 15% growth includes both new clients and those migrating to the platform, and they remain confident in achieving 25-30% growth for the year [19] Question: Current headwinds for Zenvia Customer Cloud adoption - 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 [21][22] Question: Guidance for the year and trends - Management refrained from providing formal guidance but discussed trends indicating strong growth in CPaaS and Xenvia Customer Cloud [24] Question: Customer churn and retention strategies - Management reported that churn is higher in legacy solutions but healthy in core software, and they are working on improving customer retention [41]

Financial Performance - Zenvia's net revenues increased from BRL 213 million in Q1 2024 to BRL 296 million in Q1 2025[4] - G&A expenses decreased from BRL 31 million in Q1 2024 to BRL 24 million in Q1 2025[4] - Non-GAAP adjusted gross profit decreased from BRL 93.6 million in Q1 2024 to BRL 74.2 million in Q1 2025[10] - Non-GAAP adjusted gross margin consolidated decreased from 44% in Q1 2024 to 25.1% in Q1 2025[4] - EBITDA decreased from BRL 23 million in Q1 2024 to BRL 20 million in Q1 2025[4] - EBITDA minus CAPEX decreased from BRL 11.2 million in Q1 2024 to BRL 10.1 million in Q1 2025[16] Business Segments - CPaaS revenue increased from BRL 136 million in Q1 2024 to BRL 215 million in Q1 2025[7] - SaaS revenue increased from BRL 77 million in Q1 2024 to BRL 81 million in Q1 2025[7] - Non-GAAP adjusted gross margin for SaaS decreased from 56.4% in Q1 2024 to 53.7% in Q1 2025[4] - Non-GAAP adjusted gross margin for CPaaS decreased from 37% in Q1 2024 to 14.3% in Q1 2025[10]

Core Insights - Zenvia Inc. reported a strong revenue growth of 39.2% year-over-year, reaching BRL 295.9 million in Q1 2025, driven primarily by a 58.5% increase in CPaaS revenues [11][24][13] - The transition to Zenvia Customer Cloud is progressing as planned, with expectations for completion by year-end 2025, which is anticipated to enhance long-term performance [2][6] - General and administrative expenses (G&A) decreased by 24% year-over-year, resulting in G&A as a percentage of revenues improving to 8.0% [17][18] Financial Performance - Normalized EBITDA for Q1 2025 was BRL 20 million, down 15.1% from Q1 2024, attributed to lower gross profit from the CPaaS segment due to increased SMS costs [11][18] - Gross profit decreased by 23.7% year-over-year to BRL 61.7 million, with a gross margin of 20.8%, down 17.2 percentage points from the previous year [11][24] - Non-GAAP Adjusted Gross Profit reached BRL 74.2 million, a decline of 20.8% year-over-year, with a Non-GAAP Adjusted Gross Margin of 25.1% [11][31] Segment Analysis CPaaS Business - CPaaS revenues totaled BRL 215.2 million, reflecting a 58.5% increase year-over-year, although Non-GAAP Adjusted Gross Profit fell by 38.7% to BRL 30.8 million, resulting in a Non-GAAP Adjusted Gross Margin of 14.3% [10][13] - The growth in CPaaS was primarily driven by higher SMS volumes from large clients, which have lower margins [11][15] SaaS Business - SaaS revenues increased by 5.1% year-over-year to BRL 80.7 million, with a slight increase in gross profit to BRL 30.9 million, but the gross margin decreased to 38.2% [7][9] - The transition to Zenvia Customer Cloud is impacting SaaS margins, which are expected to improve as the business scales [9][16] Customer Metrics - Total active customers decreased to 10,462, down 21.1% year-over-year, with a notable decline in both SaaS and CPaaS customer bases [11][24] - Active customers in the SaaS segment were 5,668, down 20.6% year-over-year, while CPaaS active customers were 4,794, down 25.8% [10][11]

Company Overview - Zenvia Inc. is a leading cloud-based customer experience (CX) platform in Latin America, focusing on transforming customer journeys for companies [3] - The company has over 10,000 customers and operates throughout Latin America, providing a unified, multi-channel customer cloud platform [3] Financial Announcement - Zenvia will release its fiscal first quarter 2025 results after the market closes on July 2, 2025 [1] - A webcast to discuss the results and business outlook is scheduled for July 3, 2025, at 10:00 am ET [2]

Financial Data and Key Metrics Changes - Revenues reached BRL 231 million, up 7% year over year, primarily driven by strong volume growth in CPaaS, offsetting declines in SaaS revenues [15][18] - Adjusted gross profit declined 60% to BRL 49 million, with gross margin decreasing to 21% due to a higher mix from lower-margin CPaaS growth and a one-time SMS cost adjustment of BRL 27.8 million [15][16] - EBITDA, excluding certain expenses, closed the quarter at BRL 35 million, a 6% decline from BRL 37 million in Q4 2023 [17] Business Line Data and Key Metrics Changes - Customer Cloud generated revenues of approximately BRL 180 million in 2024, with nearly 6,000 companies using the platform, 20% of which were international [13] - CPaaS market grew 25% year over year, while SaaS grew at high single digits, indicating a more dynamic CPaaS environment compared to previous years [18][19] - SaaS margins declined due to tighter profitability from enterprise clients and higher costs related to the launch of Customer Cloud [17] Market Data and Key Metrics Changes - The CPaaS market is expected to continue growing at a strong double-digit pace in the coming years, with the company anticipating a 25% to 30% growth in Customer Cloud for 2025 [14][18] - International expansion, particularly in Argentina and Mexico, is performing well and contributing positively to Customer Cloud's success [10][11] Company Strategy and Development Direction - The company has entered its fourth strategic cycle focused on accelerating growth in its newly defined core business, the Zenvia Customer Cloud [7][11] - A shift to a volume-based pricing model is being implemented, allowing clients to pay based on interactions rather than a per-seat model, enhancing operational efficiency [10][41] - The company is committed to streamlining operations further with AI playing a key role, while also evaluating opportunities for divestment to optimize capital structure [25][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early improvements seen in Q1 2025, with expectations of revenue growth picking up and SaaS margin recovery [26][58] - The company is focused on leveraging its unified platform and market opportunities to drive organic growth while reducing leverage to strengthen its financial foundation [11][25] Other Important Information - The company has successfully reduced G&A expenses by 33 million BRL over the past two years, improving productivity and profitability [21] - A headcount reduction is projected to generate additional cost savings of 30 to 35 million BRL in 2025 [21] Q&A Session Summary Question: Can you provide clarity on Zenvia's full year 2025 revenue outlook? - The Customer Cloud segment is projected to grow by 25% to 30%, while traditional SaaS and CPaaS business lines are expected to see flattish to 5% growth [31][32] Question: What is the current status of your plan for divestments? - The company is evaluating divestment alternatives opportunistically to improve capital structure and deleverage the balance sheet [35][36] Question: What new trends are emerging with AI integration? - The company is seeing the adoption of more interconnected use cases that combine customer data to create sophisticated customer journeys [38] Question: Can you elaborate on the shift to charging per interaction? - The company has transitioned to a usage-based pricing model, which encourages deeper software adoption and operational efficiency for clients [40][41] Question: Will gross margins for both SaaS and CPaaS return to previous levels? - SaaS gross margins are expected to return to around 45-50%, while CPaaS margins should normalize closer to 25% [49][50] Question: What are the main goals for 2025? - The primary goals include leveraging the balance sheet and improving EBITDA compared to 2024 [51][52]

Financial Data and Key Metrics Changes - In Q4 2024, revenues reached BRL 231 million, up 7% year over year, primarily driven by strong volume growth in CPaaS, offsetting declines in SaaS revenues [16][20] - Adjusted gross profit declined 60% to BRL 49 million, with gross margin decreasing to 21% due to a higher mix of lower-margin CPaaS growth and a one-time SMS cost adjustment of BRL 27.8 million recognized in Q4 [16][17] - EBITDA, excluding certain expenses, closed the quarter at BRL 35 million, a 6% decline from BRL 37 million in Q4 2023 [19] Business Line Data and Key Metrics Changes - The Customer Cloud segment generated revenues of approximately BRL 180 million in 2024, with an expected growth of 25% to 30% in 2025 [14][15] - CPaaS market grew 25% year over year between 2023 and 2024, while SaaS grew at high single digits, indicating a more dynamic CPaaS market [20] - SaaS margins declined due to tighter profitability from enterprise clients and higher costs related to the launch of the Customer Cloud [19] Market Data and Key Metrics Changes - The market for Customer Cloud solutions is expected to continue growing at a strong double-digit pace in the coming years, supported by advanced automation and AI [15] - International expansion, particularly in Argentina and Mexico, is performing well and contributing positively to the Customer Cloud segment [11][12] Company Strategy and Development Direction - The company has entered its fourth strategic cycle focused on accelerating growth in its newly defined core business, the Zenvia Customer Cloud [7][12] - A shift to a volume-based pricing model is being implemented, allowing clients to pay based on interactions rather than a per-seat model, enhancing operational efficiency [11][12] - The company is committed to streamlining operations further with AI and automation, while also evaluating opportunities for divestments to optimize capital structure [28][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early improvements seen in Q1 2025, with expectations of revenue growth picking up and SaaS margin recovery [30][60] - The company is focused on leveraging its unified platform and market opportunities to drive organic growth and profitability while reducing leverage [12][28] Other Important Information - The company ended 2024 with a cash balance of BRL 117 million and expects EBITDA to continue growing at a faster pace than CapEx [26] - G&A expenses were reduced by 11% year over year, contributing to improved operational efficiency [24][23] Q&A Session Summary Question: Can you provide clarity on Zenvia's full year 2025 revenue outlook? - The Customer Cloud segment is projected to grow 25% to 30%, while traditional SaaS and CPaaS business lines are expected to see flat to modest growth [34][35] Question: What is the current status of your divestment plans? - Specific details on divestments cannot be shared, but the focus is on improving capital structure and deleveraging the balance sheet [37][38] Question: What new trends are emerging with AI integration? - The company is seeing a shift towards more interconnected use cases that leverage customer data for personalized experiences [40] Question: How is the pricing model evolving? - The company is moving towards a usage-based pricing model, charging per interaction rather than per seat, which is expected to enhance efficiency and revenue [41][43] Question: What are the main goals for 2025? - The primary goals include improving EBITDA and aligning it better with the capital structure, while also focusing on organic growth and customer engagement [53][55]

Financial Performance - Zenvia's new core business model emphasizes flexibility and scalability[8] - In December 2024, Zenvia served approximately 6,000 companies, with 20% being international clients[10] - Zenvia's SaaS NRE was at 100% in Q4 2024[17] - Q4 net revenues increased from R$217 million to R$231 million[12] - Full year revenues increased from R$757 million in 2022 to R$808 million in 2023 and R$960 million in 2024[16] - The company had a cash balance of R$117 million at the end of 2024[26] Profitability and Margins - Zenvia anticipates revenue growth of 25-30% in 2025, with gross margins estimated at 68-70% and a positive EBITDA margin[10] - Non-GAAP adjusted gross profit for SaaS decreased from R$1883 million in 2023 to R$1791 million in 2024[19] - Non-GAAP adjusted gross margin for SaaS decreased from 638% in 2023 to 562% in 2024[19] - General & Administrative (G&A) expenses decreased by 22%[22]

[Financial & Operational Performance Overview](index=2&type=section&id=Financial%20%26%20Operational%20Performance%20Overview) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management highlighted the strategic shift to the Zenvia Customer Cloud and acknowledged that while EBITDA grew, it missed guidance due to Q4 challenges - CEO Cassio Bobsin emphasized the launch of Zenvia Customer Cloud, an integrated, AI-driven platform, as the new core business, with **nearly 6,000 clients** adopting it by year-end[6](index=6&type=chunk) - CFO Shay Chor noted that **2024 Normalized EBITDA grew 38% YoY but missed guidance**, impacted by Q4 cost adjustments and increased SMS costs, with profitability expected to normalize in 2025[6](index=6&type=chunk) [Key Financial & Operational Highlights](index=2&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Full-year 2024 revenue grew 18.8%, but gross margin declined, guidance was missed, and the active customer base shrank by 17.8% **Full Year 2024 vs. 2023 Financial Metrics** | Key Financial Metrics (BRL MM) | FY 2024 | FY 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | 959.7 | 807.6 | 18.8% | | Gross Profit | 294.8 | 330.5 | -10.8% | | Normalized EBITDA | 105.1 | 76.1 | 38.1% | | Income/Loss of the Period | (154.7) | (60.8) | 154.5% | | Total Active Customers | 10,622 | 12,929 | -17.8% | **Q4 2024 vs. Q4 2023 Financial Metrics** | Key Financial Metrics (BRL MM) | Q4 2024 | Q4 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | 231.4 | 217.0 | 6.6% | | Gross Profit | 36.6 | 110.3 | -66.8% | | Normalized EBITDA | 34.8 | 37.1 | -6.2% | - G&A expenses as a percentage of revenue improved significantly, **decreasing by 4.1 percentage points to 11.9%** in FY 2024 from 16.0% in FY 2023[5](index=5&type=chunk)[12](index=12&type=chunk) - The company's cash balance **increased by 83.4% YoY to BRL 116.9 million** at the end of 2024, reflecting a focus on cash preservation[6](index=6&type=chunk)[19](index=19&type=chunk) [Subsequent Events & Strategic Outlook](index=4&type=section&id=Subsequent%20Events%20%26%20Strategic%20Outlook) Post-year-end, Zenvia launched a new strategic cycle focused on its Zenvia Customer Cloud solution for future growth - On January 13, 2025, Zenvia announced a **new strategic cycle centered on its newly launched Zenvia Customer Cloud solution**[13](index=13&type=chunk) - The Zenvia Customer Cloud platform has been adopted by **approximately 6,000 companies**, with 20% being international clients[13](index=13&type=chunk) - The platform is estimated to have generated **close to R$180 million in revenue** for the year ended December 31, 2024[13](index=13&type=chunk) [Business Segment Performance](index=4&type=section&id=Business%20Segment%20Performance) [SaaS Business](index=4&type=section&id=SaaS%20Business) SaaS revenue grew 8.0% annually but declined in Q4, with full-year gross margin falling due to competition and platform launch costs **SaaS Business Performance (FY 2024 vs. FY 2023)** | Metric (BRL MM) | FY 2024 | FY 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | 318.7 | 295.0 | 8.0% | | Non-GAAP Adj. Gross Profit | 179.1 | 188.3 | -4.9% | | Non-GAAP Adj. Gross Margin | 56.2% | 63.8% | -7.6 p.p. | | Total Active Customers | 5,936 | 7,127 | -16.7% | - Q4 2024 revenue **declined 9.7% YoY**, primarily due to a decrease in revenues from Enterprise customers facing a very competitive environment[14](index=14&type=chunk)[16](index=16&type=chunk) - The full-year Non-GAAP Adjusted Gross Margin decline was attributed to **tighter margins from large enterprises** and higher infrastructure costs for the Zenvia Customer Cloud launch[17](index=17&type=chunk)[18](index=18&type=chunk) [CPaaS Business](index=5&type=section&id=CPaaS%20Business) CPaaS revenue grew 25.1% annually, but profitability was severely impacted by higher SMS costs and a strategic shift to lower-margin clients **CPaaS Business Performance (FY 2024 vs. FY 2023)** | Metric (BRL MM) | FY 2024 | FY 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | 641.0 | 512.6 | 25.1% | | Non-GAAP Adj. Gross Profit | 166.4 | 194.3 | -14.3% | | Non-GAAP Adj. Gross Margin | 26.0% | 37.9% | -11.9 p.p. | | Total Active Customers | 4,963 | 6,263 | -20.8% | - Q4 2024 Non-GAAP Adjusted Gross Margin was exceptionally low at **4.0% due to a BRL 27.8 million SMS cost adjustment** related to the full year; excluding this, the margin would have been 21.8%[22](index=22&type=chunk) - The full-year margin decline was attributed to **higher SMS costs and a deliberate strategy to acquire new clients with tighter margins**, which is expected to pay off in the long term[23](index=23&type=chunk)[25](index=25&type=chunk) [Consolidated Financial Result Analysis](index=5&type=section&id=Consolidated%20Financial%20Result%20Analysis) Strong revenue growth was offset by significant margin pressure from higher costs and strategic pricing, leading to a miss on annual EBITDA guidance - Q4 performance was negatively impacted by a combination of factors: **higher SMS costs and lower margins from new CPaaS clients**, alongside fierce competition and increased infrastructure costs in the SaaS segment[25](index=25&type=chunk)[26](index=26&type=chunk) - Despite a **37% YoY reduction in Q4 G&A expenses**, the drop was not enough to offset the lower gross margins from both business segments[27](index=27&type=chunk) - The company **missed its annual guidance for 2024**, with Normalized EBITDA of BRL 105.1 million falling below the BRL 120-140 million range, due to the aforementioned margin pressures[19](index=19&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Detailed Financial Statements](index=7&type=section&id=SELECTED%20FINANCIAL%20DATA) [Income Statement](index=7&type=section&id=Income%20Statement) FY 2024 saw 18.8% revenue growth but a 10.8% gross profit decline, with a surge in net financial expenses driving a 154.5% larger net loss **Key Income Statement Items (FY 2024 vs. FY 2023)** | Metric (in thousands of BRL) | FY 2024 (audited) | FY 2023 (audited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 959,680 | 807,577 | 18.8% | | Gross profit | 294,773 | 330,542 | -10.8% | | Operating gain (loss) | 3,275 | (10,711) | n.m. | | Financial expenses, net | (131,309) | (44,052) | 198.1% | | Income/Loss for the period | (154,658) | (60,771) | 154.5% | [Balance Sheet](index=8&type=section&id=Balance%20Sheet) The balance sheet shows a significant cash increase and higher total liabilities, while equity decreased due to accumulated losses **Key Balance Sheet Items (as of Dec 31)** | Metric (in thousands of BRL) | 2024 (audited) | 2023 (audited) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 116,884 | 63,742 | | Total current assets | 318,990 | 250,331 | | Intangible assets | 1,318,099 | 1,347,327 | | **Total assets** | **1,743,554** | **1,711,564** | | **Liabilities & Equity** | | | | Total current liabilities | 674,759 | 607,374 | | Total non-current liabilities | 297,380 | 215,243 | | **Total liabilities** | **972,139** | **822,617** | | **Total equity** | **771,415** | **888,947** | [Cash Flow Statement](index=9&type=section&id=Cash%20Flow) Operating cash flow decreased, while a reversal in financing activities led to a net BRL 53.1 million increase in cash for the year **Cash Flow Summary (FY 2024 vs. FY 2023)** | Metric (in thousands of BRL) | FY 2024 (audited) | FY 2023 (audited) | | :--- | :--- | :--- | | Net cash from operating activities | 107,771 | 162,547 | | Net cash used in investing activities | (62,618) | (53,903) | | Net cash from (used in) financing activities | 9,105 | (143,766) | | **Net increase (decrease) in cash** | **53,142** | **(36,501)** | [Indebtedness](index=9&type=section&id=Indebtedness) Total indebtedness increased to BRL 126.9 million at year-end, driven primarily by a rise in working capital financing **Indebtedness (as of Dec 31)** | Category (in thousands of BRL) | 2024 (audited) | 2023 (audited) | | :--- | :--- | :--- | | Working capital | 114,762 | 69,667 | | Debentures | 12,093 | 18,129 | | **Total** | **126,855** | **87,796** | [Non-GAAP Financial Measures Reconciliation](index=10&type=section&id=Special%20Note%20Regarding%20Non-GAAP%20Financial%20Measures) [Reconciliation of Gross Profit](index=10&type=section&id=Reconciliation%20of%20Gross%20Profit) Non-GAAP Adjusted Gross Profit fell 9.7% to BRL 345.5 million after adding back BRL 50.7 million in amortization from the SaaS segment **Consolidated Gross Profit Reconciliation (FY 2024)** | Metric (in thousands of BRL) | Amount | | :--- | :--- | | Gross profit (IFRS) | 294,773 | | (+) Amortization of intangibles | 50,746 | | **Non-GAAP Adjusted Gross Profit** | **345,519** | | Non-GAAP Adjusted Gross Margin | 36.0% | - The amortization of intangible assets from business combinations, which is the sole adjustment to gross profit, is **entirely allocated to the SaaS segment**[45](index=45&type=chunk)[47](index=47&type=chunk) [Reconciliation of EBITDA](index=12&type=section&id=Reconciliation%20of%20EBITDA) Normalized EBITDA rose 38.1% to BRL 105.1 million, primarily adjusted for non-recurring items like a significant Q4 SMS cost accrual **EBITDA Reconciliation (FY 2024)** | Metric (in thousands of BRL) | Amount | | :--- | :--- | | Income/Loss for the period | (154,658) | | (+) Taxes, Net Financial Exp, D&A | 250,000 | | **Adjusted EBITDA** | **95,294** | | (+) Earn-outs | 9,822 | | **Normalized EBITDA** | **105,116** | - A significant non-recurring event of **BRL 27.8 million, related to an SMS cost adjustment**, was excluded from Q4 2024 results to arrive at Normalized EBITDA[50](index=50&type=chunk)

Core Insights - Zenvia Inc. reported strong revenue growth driven by its CPaaS segment, with total revenues for FY 2024 reaching BRL 960 million, an 18.8% increase from BRL 808 million in FY 2023 [6][26] - The company launched Zenvia Customer Cloud in October 2024, which integrates AI into customer experience solutions, and has already attracted nearly 6,000 clients [2][11] - Despite revenue growth, profitability metrics fell short of expectations due to increased costs, particularly in the SMS segment, and competitive pressures in the SaaS market [2][26] Financial Performance - Q4 2024 revenues were BRL 231.4 million, a 6.6% increase from BRL 217 million in Q4 2023, with CPaaS revenues growing by 17% year-over-year [6][19] - Full-year Normalized EBITDA reached BRL 105.1 million, up 38.1% from BRL 76.1 million in 2023, but below the guidance range of BRL 120 million to BRL 140 million [27][26] - The company's G&A expenses decreased by 37% year-over-year in Q4 to BRL 19 million, improving the G&A as a percentage of revenues to 8.3% [10][24] Segment Analysis - The SaaS segment experienced a revenue decline of 9.7% in Q4 2024, primarily due to lower revenues from Enterprise customers, while full-year SaaS revenues increased by 8% [12][14] - The CPaaS segment reported revenues of BRL 155.9 million in Q4 2024, a 16.9% increase year-over-year, but faced a significant drop in Non-GAAP Adjusted Gross Profit, down 90.9% [17][19] - Total active customers at the end of FY 2024 were 10,622, with a notable decrease in active customers in both SaaS and CPaaS segments [10][12] Strategic Initiatives - The launch of Zenvia Customer Cloud is positioned as a key strategic initiative, aimed at enhancing customer engagement through AI-driven solutions [2][11] - The company plans to focus on organic growth, expanding its partner ecosystem, and streamlining operations as part of its new strategic cycle announced in January 2025 [2][26] - Zenvia aims to normalize profitability in 2025, with expectations of recovering margins impacted by SMS cost adjustments and competitive pressures [2][19]

Financial Performance - The company incurred losses of R$154,658 thousand for the year ended December 31, 2024, R$60,771 thousand for 2023, and R$243,025 thousand for 2022, indicating a history of financial losses [43]. - The company has a negative consolidated working capital of R$355,769 thousand as of December 31, 2024, raising concerns about its ability to continue as a going concern [41]. - The company recorded provisions for disputes amounting to R$1,797 thousand and R$42,207 thousand as of December 31, 2024 and 2023, respectively, indicating a significant increase in potential liabilities [182]. Revenue Sources - 66.8% of the company's revenue for the year ended December 31, 2024, was derived from the CPaaS segment, primarily from SMS text messaging services [45]. - A significant portion of revenue, 38.2% for 2024, 33.4% for 2023, and 37.0% for 2022, was concentrated among the top 10 customers, with the largest customer accounting for over 7% of total revenue in 2024 [46]. - The Net Revenue Expansion (NRE) rate for the year ended December 31, 2024, was 106.5%, showing growth in revenue from existing customers [71]. Customer Dynamics - The number of active customers decreased from 13,336 in 2022 to 10,622 in 2024, indicating a decline in customer retention [71]. - The company is increasingly dependent on WhatsApp as a communication channel, which may be affected by changes in WhatsApp's policies [52]. Financing and Capital Structure - The company may require additional financing to support future capital requirements, which could be difficult to secure on favorable terms due to existing indebtedness [56]. - As of December 31, 2024, the total loans, borrowings, and debentures outstanding amounted to R$126,855 thousand, consisting of R$81,137 thousand in current liabilities and R$45,718 thousand in non-current liabilities [58]. - The company may need to raise additional capital in the future, which could dilute investors' interests in its share capital [233]. Market and Competitive Landscape - The market for the company's products is relatively new and unproven, with potential risks including changes in consumer behavior and competition from alternative products [44]. - The market for cloud communications is highly competitive, with low barriers to entry, and the company faces significant competition from larger competitors [85]. - The company faces challenges in adapting to rapidly changing technology and evolving industry standards, which could adversely affect sales [59]. Strategic Initiatives - The company has initiated a new strategic cycle focusing on its SaaS business, particularly the recently launched Zenvia Customer Cloud [77]. - The company completed acquisitions of SenseData, D1, and Movidesk to expand its SaaS offerings and enhance multichannel communications capabilities [89]. - The launch of the Zenvia Customer Cloud solution on October 16, 2024, aims to revolutionize customer experience through AI integration [80]. Compliance and Regulatory Risks - Compliance with the LGPD (General Data Protection Law) requires the company to adapt its data processing activities, with penalties for violations including fines up to R$50 million per violation [129]. - The company is subject to evolving privacy and data protection laws, which may increase compliance costs and impact its ability to operate effectively in various jurisdictions [134]. - The company is implementing an anti-corruption compliance program to manage risks associated with anti-corruption laws, which could result in significant fines and reputational harm if violated [139]. Economic and Political Environment - The Brazilian government enacted Constitutional Amendment No. 132 on December 20, 2023, introducing a new taxation model that replaces IPI, PIS, and COFINS with a Contribution on Goods and Services (CBS) and a Tax on Goods and Services (IBS) starting in 2026 [144]. - The ongoing economic and political instability in Brazil may lead to increased volatility in the securities market, adversely affecting the company's financial condition [186]. - High levels of inflation in Brazil historically harm the economy and capital markets, which could negatively impact the company's business and share price [191]. Shareholder Dynamics - Controlling shareholders own 100% of Class B common shares and 35.3% of Class A common shares, representing approximately 92.99% of the voting power and 64.50% of total equity ownership [215]. - The disparity in voting rights between Class A and Class B common shares may adversely affect the price of Class A common shares and limit investors' ability to influence corporate matters [216]. - The company has not adopted a dividend policy, and any future distributions will depend on various factors, including operational results and financial condition [224]. Operational Challenges - The company faces challenges in expanding operations into new market segments and geographic regions, which may require substantial expenditures and time [112]. - The company may incur unforeseen expenses to remediate the identified material weaknesses in internal control over financial reporting [165]. - Cybersecurity threats continue to increase, and any data security incidents could result in loss of confidential information and damage to the company's reputation [158].