Zenvia (US:ZENV)2025-09-11 15:02Financial Data and Key Metrics Changes - In Q2 2025, the company reported a strong top-line growth of 24%, primarily driven by CPaaS and the rollout of Zenvia Customer Cloud [3][4] - Consolidated adjusted gross profit fell to R$69 million, with a gross margin down to 24%, although stable compared to Q1 [4][5] - Normalized EBITDA for the quarter was R$11 million, below expectations, but the company anticipates a progressive recovery throughout the year [5][11] Business Line Data and Key Metrics Changes - SaaS revenues grew 3% year over year in Q2, mainly from SMB customers, while Zenvia Customer Cloud revenues increased by 23% in the first half of the year [5][6] - CPaaS revenues were up by 33%, accounting for 72% of total revenues, but this higher mix with low margins negatively impacted gross profits and margins [7][9] Market Data and Key Metrics Changes - The market remains highly volatile and competitive, particularly affecting profitability in the short term [4][12] - The company expects CPaaS margins to normalize closer to 20% by Q4 of this year [9][21] Company Strategy and Development Direction - Zenvia Customer Cloud is positioned as the new core business, with expectations of 25% to 30% growth in 2025 [6][12] - The company is focusing on streamlining operations and enhancing efficiency, with AI playing a significant role [12][36] - There are ongoing evaluations for divesting non-core assets to optimize the balance sheet [12][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape and pricing pressures but believes the current strategy will lead to long-term profitability [20][23] - The company is optimistic about the future, expecting to transition from volatile revenues to a more stable, high-margin business model [35][36] Other Important Information - G&A expenses decreased by R$9 million, or 27%, compared to the same period last year, bringing the G&A to revenues ratio down to 9% [5][10] - The company has implemented strict expense management since the end of 2022, resulting in significant cost savings [10][11] Q&A Session Summary Question: Can you provide more color on forward guidance for Zenvia Customer Cloud? - The company maintains expectations of around R$200 million in revenues for Zenvia Customer Cloud, with growth of approximately 25% and gross margins close to 70% [16] Question: Are tight margins on the CPaaS side the new level? - Management indicated that while margins are under pressure, they expect stabilization at a higher level by year-end as cost increases from carriers are passed through [20][21] Question: How is the enterprise side performing for both Zenvia Customer Cloud and the rest of SaaS? - The company has seen adoption of Zenvia Customer Cloud by enterprise customers, which was not the initial focus, indicating a positive shift in strategy [24][25] Question: Can you provide insights on cash flow and divestitures? - The trailing 12 months EBITDA is close to R$100 million, with approximately R$60 to R$65 million in cash flow available to serve debt, leading to considerations for asset divestment [26][28]