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] - Consolidated adjusted gross profit declined 21% to 74 million reais from 94 million reais a year ago, with gross margin decreasing 25% [4] - Normalized EBITDA totaled 20 million reais in the quarter, in line with expectations, and is expected to increase progressively over the year [5] - The company ended the quarter with a cash balance of 86 million reais [11] 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 from SaaS remained stable at 43 million reais, but adjusted gross margin decreased by 2.7 percentage points to 54% [8] - The CPaaS business was impacted by newly acquired clients with lower margins and increased SMS costs from carriers [10] Market Data and Key Metrics Changes - The company observed strong SMS volume growth year over year, although there was a slight deceleration expected in Q2 compared to Q1 [19][26] - The company anticipates around 50 million reais in revenues from LATAM in 2025, representing over 50% growth compared to 2024 [40] 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 [12] - The rollout of the new strategic cycle is expected to impact short-term profitability but aims to boost medium and long-term performance [13] - The company is evaluating opportunities to divest non-core assets to optimize capital structure [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q1 was strong, there is a softening expected in Q2, but SMS volumes continue to grow year over year [19][26] - The company is confident in the growth of Xenvia Customer Cloud and SaaS, expecting continued trends from Q1 with some acceleration in Xenvia Customer Cloud [27] - Management emphasized the importance of deleveraging the balance sheet to accelerate growth, especially in a high-interest-rate environment [23] Other Important Information - The company incurred approximately 8 million reais in one-time severance costs during Q1 related to workforce reduction [5] - G&A expenses decreased by 24% year over year, reaching 24 million reais, which is 8% of revenues [10] Q&A Session Summary Question: Reasons behind CPaaS growth in SMS volume - Management indicated that the growth is primarily due to marketing campaigns relying on SMS, rather than AI-related factors [16] Question: More details on Zenvia Customer Cloud growth - The 15% year-over-year growth includes both new clients and those migrating to the platform, with expectations for acceleration as awareness increases [19] Question: Current headwinds for Zenvia Customer Cloud adaptation - 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 [22][23] Question: Guidance for the year and trends - Management refrained from providing formal guidance but discussed trends indicating strong growth in SMS and Xenvia Customer Cloud, with expectations for a stronger second half of the year [26] Question: Customer churn and retention strategies - Management acknowledged some churn in legacy solutions but reported healthy retention rates in core software, emphasizing efforts to improve customer experience [42]
Zenvia (ZENV) - 2025 Q1 - Earnings Call Transcript