Financial Data and Key Metrics Changes - In Q2 2024, the company reported revenues of R$231 million, representing a 20% year-over-year growth, with adjusted gross profit also increasing by 20% [6][5] - EBITDA for Q2 2024 reached almost R$34 million, more than double compared to the same period last year, contributing to a total EBITDA of R$110 million over the last 12 months [5][10] - The adjusted gross margin remained stable at 43.3%, aligning with the company's 2024 guidance range [6][9] Business Line Data and Key Metrics Changes - The CPaaS segment grew by 22% in Q2 2024, following a 23% growth in Q1 2024, while the SaaS segment grew almost 16% in the same period [7][6] - CPaaS accounted for 66% of net revenues and 58% of gross profit in Q2 2024, while SaaS represented 34% of net revenues and 42% of gross profit [8][9] Market Data and Key Metrics Changes - The company is focusing on expanding its customer base in the SMB segment, while also seeing adoption from large enterprises for its new Zenvia Customer Cloud solution [19][18] - The company is preparing to expand operations outside Brazil, particularly in Argentina and Mexico, where it sees high growth potential [14] Company Strategy and Development Direction - The company is committed to rolling out the Zenvia Customer Cloud solution, which has received positive feedback from clients, enhancing customer retention and cross-adoption [2][4] - Future features of the GenAI chatbot will include real-time sentiment analysis and seamless integration with multiple systems, aimed at improving customer experience [4][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year EBITDA guidance of R$120 million to R$140 million, despite seasonality effects expected in Q4 [13][14] - The company is focused on maintaining strict expense control, with G&A as a percentage of revenues decreasing to 14.4% in Q2 2024 from 19.4% in Q2 2023 [10][11] Other Important Information - The company has successfully managed to generate positive cash flow from operations after accounting for CapEx, projecting a positive R$80 million for 2024 [12][11] - The integration of acquired companies is nearing completion, with expected benefits in efficiency and cost structure [26][25] Q&A Session Summary Question: Feedback on migration to Zenvia Customer Cloud and client base cleanup - Management noted positive feedback from clients migrating to the Zenvia Customer Cloud, with expectations of increased retention and expansion [17][18] - The cleanup of the client base is largely complete, with no significant actions expected going forward [20] Question: Long-term margin profile and working capital management - Management indicated that long-term margins are expected to improve as SaaS becomes a larger portion of revenues, with a target of exceeding 50% [22][21] - The company clarified that it does not have negative working capital by nature, focusing on managing DSO and DPO effectively [24][23] Question: Funding gap and integration progress - The integration of acquired companies is in the final phase, with expected completion by early next year, leading to improved efficiency [26][25] - Management discussed ongoing liability management efforts, including potential equity conversion options to accelerate deleveraging [27][28] Question: Future AI features and team structure - The company is deploying various AI features to enhance customer engagement and operational efficiency [30][29] - Current team structure is deemed sufficient to support planned growth, with minor adjustments expected [31][32]
Zenvia (ZENV) - 2024 Q2 - Earnings Call Transcript