Zenvia (US:ZENV)2025-07-02 21:01Financial Performance - Revenue for the three months ended March 31, 2025, was R$295,946,000, representing a 39% increase compared to R$212,636,000 for the same period in 2024[11] - Gross profit decreased to R$61,657,000, down 24% from R$80,857,000 year-over-year[11] - Operating loss improved to R$2,203,000 from R$9,352,000 in the previous year, indicating a reduction in losses[11] - The company reported a profit of R$3,662,000 for the period, a significant turnaround from a loss of R$55,893,000 in Q1 2024[11] - Total expenses for the three months ended March 31, 2025, amounted to R$298,150,000, up from R$221,988,000 in 2024, reflecting a 34% increase[107] - The basic and diluted loss per share for the period was R$0.070, a recovery from a loss of R$1.104 per share in the same period of 2024[115] - The effective tax rate for the three months ended March 31, 2025, was -1.83%, a significant decrease from 19.81% in 2024, reflecting changes in tax benefits and losses[111] Financial Position - Total current assets increased to R$331,281,000 from R$318,990,000 at the end of 2024, reflecting a growth of 4%[7] - Total liabilities rose to R$963,472,000, up from R$972,139,000 at the end of 2024, indicating a slight decrease of 0.2%[9] - Cash and cash equivalents decreased to R$86,125,000 from R$116,884,000, a decline of 26%[7] - The company’s total equity increased to R$783,009,000 from R$771,415,000, reflecting a growth of 1.5%[9] - As of March 31, 2025, the total liabilities as of March 31, 2025, were R$880,617,000, compared to R$868,993,000 at the end of 2024, indicating a slight increase[116] - The total equity decreased to R$759,099 thousand as of March 31, 2025, from R$771,415 thousand as of December 31, 2024[130] Cash Flow and Financing - Net financial expenses turned positive with a net income of R$6,203,000 compared to a loss of R$60,204,000 in the same quarter last year[11] - The Company expects a cash outlay of R$114,786 between May 2025 and April 2026 for existing short-term indebtedness[19] - The company obtained a formal waiver for the Net Debt to Adjusted EBITDA covenant, allowing a ratio of up to 4.0x, compared to the original 2.5x[65] - The Company entered into a new loan agreement with Banco Santander for R$8,642 thousand in April 2025, structured in five monthly installments[134] Asset Management - Trade and other receivables increased to R$279,342 as of March 31, 2025, from R$242,889 as of December 31, 2024[49] - Recoverable tax assets rose significantly from R$19,572 thousand at the end of 2024 to R$26,495 thousand by March 31, 2025, an increase of 35.2%[51] - The net balance of property, plant, and equipment decreased from R$15,350 thousand at December 31, 2024, to R$13,952 thousand by March 31, 2025, a decline of 9.1%[53] - Total intangible assets increased from R$1,318,099 thousand at December 31, 2024, to R$1,307,171 thousand by March 31, 2025, reflecting a slight decrease of 0.8%[56] - The company continues to invest in intangible assets under development, with a net balance of R$53,178 thousand as of March 31, 2025, up from R$49,149 thousand at the end of 2024[56] Liabilities and Provisions - Current liabilities from acquisitions decreased to R$114,861 thousand as of March 31, 2025, compared to R$90,920 thousand on December 31, 2024, indicating a rise of 26.3%[73] - Total provisions for labor and other risks increased to R$1,860 million as of March 31, 2025, compared to R$1,797 million on December 31, 2024[85] - The total amount of contingencies classified as possible losses was R$47,392 million as of March 31, 2025, up from R$46,534 million on December 31, 2024[87] Operational Changes - Management reduced the workforce by 25% to improve profitability, leading to enhanced cash generation in FY 2024 and early 2025[19] - The Company renegotiated payment terms on bank loans and debentures, extending them from 18 months to 36 months, with final maturity in December 2026[19] - The Company issued 504,617 Class A common shares under the ATM program during the first three months of 2025, generating gross proceeds of R$7,908 million[101] Risk Management - The Company has a liquidity risk management strategy in place, ensuring sufficient cash flow to meet financial liabilities[126] - The Company actively manages credit risk by diversifying exposure among financial institutions and maintaining a low default level historically[119] - The Company’s allowance for expected credit losses is based on historical effective losses on sales, minimizing credit risk exposure[120]