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 revenues from Zenvia Customer Cloud 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%-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][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape and pricing pressures but remains confident in the long-term strategy [20][23] - The company aims to transition from volatile revenues to a more stable, high-margin business model over the next two to three years [35][36] Other Important Information - G&A expenses decreased by 27% year-over-year, contributing to a lower G&A to revenues ratio of 9% in the quarter [5][10] - The company has implemented a workforce reduction of approximately 15%, expected to yield cost savings of R$30 million to R$35 million for the full year 2024 [10][12] 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][15] Question: Are tight margins in CPaaS the new level, or should we expect recovery? - Management indicated that while margins are under pressure due to competition, they expect stabilization at a higher level by year-end [20][21] Question: How are the dynamics for enterprise customers in 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, but is proving successful [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 million-R$65 million in cash flow available to serve debt [26][27]