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]
Zenvia (ZENV) - 2025 Q1 - Earnings Call Transcript