Financial Data and Key Metrics Changes - The company reported a significant year-over-year increase in EBITDA, reaching BRL 41 million in Q3 2024, which is almost threefold compared to the same period last year [9] - Year-to-date EBITDA totaled BRL 98 million, up roughly 150% from the same period last year [9] - The consolidated adjusted gross margin for the nine months reached 40.7%, slightly below the guidance for the year [15] Business Line Data and Key Metrics Changes - CPaaS revenues grew 37% year-over-year, reaching an all-time high of almost BRL 200 million in Q3 2024 [10] - The SaaS segment delivered a 16% increase in revenues compared to the same period last year, with a solid 12% sequential growth from Q2 [10] - The SaaS segment's gross profit margin decreased by 230 basis points year-over-year, primarily due to the impact from enterprise customers [13] Market Data and Key Metrics Changes - The company is experiencing strong growth in the SMB sector, which is expected to drive future growth [7] - The enterprise portion of the SaaS segment is facing a competitive environment, leading to lower-than-expected new sales [8] Company Strategy and Development Direction - The launch of Zenvia Customer Cloud marks a strategic shift from a CPaaS platform to a comprehensive customer experience SaaS in Latin America [3] - The company aims to enhance customer relationships through AI-driven solutions and data analytics, focusing on organic growth and profitability [3][4] - The strategy includes reducing leverage and optimizing capital structure to deliver sustainable value to shareholders [3] Management's Comments on Operating Environment and Future Outlook - Management expects continued growth in the SaaS segment, while CPaaS revenues are anticipated to be slightly below Q3 levels due to nonrecurring volumes [31] - The company is optimistic about the adoption of Zenvia Customer Cloud, particularly among SMBs, and is seeing increased cross-selling opportunities [25][26] - Management reiterated guidance for 2024, emphasizing a focus on organic growth and EBITDA generation [21][32] Other Important Information - The company has successfully reduced G&A expenses as a percentage of revenue from 17% in the first nine months of 2023 to 13% in 2024, reflecting improved productivity [17] - The net debt to EBITDA ratio has improved significantly, decreasing from over 10 times to 2.2 times by the end of September 2024 [20] Q&A Session Summary Question: How is competition in the SaaS segment, especially in large enterprises? - Management noted that while the focus is on SMBs, there is early traction with enterprise customers adopting the platform, and they are excited about the unique value proposition being offered [25] Question: How much of the net additions in active customers is attributed to Zenvia Customer Cloud? - The increase in active customers is primarily due to the focus on Zenvia Customer Cloud, with significant traction in both new and existing customers [25] Question: Can you share more details about the rollout of Zenvia Customer Cloud? - The rollout has been positive, with several features launched, and the company is migrating customers from standalone products to the new unified solution [29] Question: What should be expected for CPaaS and SaaS revenues in Q4? - CPaaS revenues are expected to be slightly below Q3 levels, while SaaS is anticipated to continue its growth trajectory [31] Question: How deep is AI embedded in the products? - The company has integrated several AI features into its products, focusing on enhancing customer experiences and operational efficiency [33] Question: Will expense reductions impact future revenue growth? - Management believes that the optimization of operations will not negatively impact revenue growth, as efficiencies are being realized through integration [34] Question: Can we expect more positive net income in the next quarter or next year? - Management aims to continue delivering value to shareholders, with expectations for net income to improve alongside EBITDA growth [37] Question: What is the guidance for 2025 in terms of free cash flow EBITDA? - Currently, the focus remains on delivering results for 2024, with guidance for 2025 expected to be provided early next year [38]
Zenvia (ZENV) - 2024 Q3 - Earnings Call Transcript