Zenvia Q4 2024 Earnings Call Transcript

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Provided by Quartr
May 20, 2025
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Operator

REPRESENTATIVE:] Today's conference is being recorded and a replay will be available at the company's IR website, where you can also access today's presentation. At this time, all participants are in listen only mode. After the prepared remarks, there will be a question and answer session. And for the Q and A session, we ask you to write down your question via the Q and A icon at the bottom of your screen. Your name will then be announced, and you'll be able to ask your question live.

Operator

At this point, a request to activate your microphone will appear on your screen. If you do not want to open your microphone live, please write down no microphone at the end of your question. In this case, our operator will read your question aloud. Now I'd like to welcome one of our speakers for today, Mr. Casio Babson, Founder and CEO. Sir, the floor is yours.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Good morning, everyone. I'm Casio Babson, Founder and CEO. Thank you for joining us here today. I'd like to start by talking briefly about the AI revolution we are all witnessing. As we look around the world and in Brazil, it's clear that AI is no longer a promise.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

AI has become a strategic priority for companies looking to reinvent how they connect with customers. In global markets, we see AI driving everything from personalized product recommendations, proactive customer service. Brands are using AI to automate workflows, understand intent in real time, and scale human like conversations across channels. In Brazil, this trend is also accelerating. Businesses of all sizes from large banks and retailers to fast growing startups are all integrating AI into their c axis strategies to improve efficiency, reduce response times, and deepen customer relationships.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

But customers today don't live in a single platform. They move across WhatsApp, Instagram, or mail, chat, SMS, always expecting fluid, personalized, and consistent experiences at every touch point. That is why AI isn't just a tool. It's now a core pillar of how companies engage with their audiences and how they can sell more and serve better their customers. And this is exactly where Zendesk focus, empowering businesses to unify those interactions and bring intelligence, context, and scale to every conversation no matter the channel.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Let's see the next slides. This AI revolution marks the beginning of our new strategic cycle that we announced in January as it builds on what we achieved into a '24 and sets the stage for more innovation, efficiency, and value creation moving forward. Strategic cycles play a critical role in shaping the direction and growth of companies and allow us to adapt to market changes, focus our resources, and position ourselves for long term success. It is always worth remembering that Zenta's mission since our inception over twenty years ago has always been to revolutionize experience that customers have with companies and brands. We recognize three distinct strategic cycles so far in this mission, and we just closed the third one and launched the fourth one as you can see in this slide.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

We had our first cycle, which was basically our startup phase after being born in a garage as an SMS provider, then evolved to the second cycle where we expanded our messaging capabilities and consolidated ourselves as the leading SMS broker in Brazil with a series of acquisitions. The third and latest strategic cycle began in 2018 when we decided to evolve from a leading Brazilian CPaaS to become the most comprehensive CX SaaS in Latin American. After a series of acquisitions held before and after our IPO of companies that not only complemented our CPaaS business, but also reinforced our strategy and vision for the future, all overcoming all challenges in their integration, We officially launched the Zenfix Customer Cloud in 2024. Zenfix Customer Cloud is the culmination of this vision and is now our core business moving forward. So as of January 2025, we have entered our fourth strategic cycle centered on accelerating the growth of our newly defined core business.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Let's dive in on Zenvia Customer Cloud on the next slide. We're truly excited about Zenvia Customer Cloud and the immense potential it brings to our company. This platform represents a pivotal milestone in our journey and in our commitment to enhancing customer experiences. Xenvia Customer Cloud is powered by AI driven solutions and robust data analytics and is designed to adapt simply to to businesses of all sizes and across diverse industries. Clients already using it report enhanced customer engagement, increased sales, and reduced costs.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Xynvia Customer Cloud was born with AI at its core to help companies not only automate, but truly operationalize intelligence, especially when managing the experience of thousands of customers in a single unified environment. It is important to highlight here that the launch of Xynfe customer cloud was leveraged by two important and strategic initiatives. The use of product led growth PLG strategies and our international expansion in Latin America. Our PLG strategies give users flexible and self-service access to our software. They can start small, explore features at their own pace, and scale in an easy way as their needs grow.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

This is all made possible by integrating our services into this unified platform, which makes the experience intuitive and adaptable for businesses of any industry and size. Because it fits so well with our clients need, it leads to higher adoption, stronger long term relationships, and a scalable revenue model, positioning Zenvia for sustainable growth in a fast moving market. Another key differentiator is our shift to a volume based pricing model, where clients pay based on the number of interactions they have with their clients and prospects rather than the traditional per seat SaaS model that we had before. This approach is enabled by an extensive use of AI in our software, which minimizes our customers' reliance on human agents, enhances efficiency for their operations, and unlocks greater revenue generation potential for us with much less complexity. And our international expansion, particularly in Argentina and Mexico, where we already had a presence, is performing well and delivering results.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

These international clients are already delivering a solid contribution to the success of Xevi Customer Cloud, further validating our strategy. The initial results we already achieved with Xevi Customer Cloud in these first months leaves us energized and optimistic about the opportunities that lie ahead after this challenging 2024. As we enter this important new strategic cycle, we are laser focused on driving organic growth by leveraging our unified platform and market opportunities, evolving and accelerating our partnership ecosystem, boosting profitability through smarter reparations and efficiency while reducing leverage to strengthen our financial foundation. At the same time, we're committed to building the optimal capital structure to support our ambitions and ensure long term resilience. These combined efforts are expected to position us to unlock meaningful, sustainable value as we move forward in our journey.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

I'll now hand the call over to Shay to present our financial performance, and I'll be available for the Q and A session later on.

Shay Chor
Shay Chor
CFO at Zenvia

Thank you, Casio. Good morning, everyone. Let's start on the next slide and continue talking about Customer Cloud as Casio just mentioned. This slide brings a snapshot of Xenva Customer Cloud, which was officially launched back in October 24 and generated revenues of around 180,000,000 reais in the full year of '24. We closed the year with almost 6,000 companies already using the platform, 20% of which were international companies, mainly from Mexico and Argentina.

Shay Chor
Shay Chor
CFO at Zenvia

In terms of growth, we estimate that this operation will expand by 25 to 30% in 2025, achieving a gross margin of between 6870% and positive EBITDA margin. Our estimates are based on solid data showing the market is set to keep growing at a strong double digit pace in the coming years. On top of that, our new unified operating model with advanced automation and AI and the acceleration of our partner ecosystem puts us in a better position to make the most of of these opportunities. Let's now move to the next slide and talk the numbers from the quarter and the year. Q four was a particularly challenging quarter for us as several headwinds converged in ways on profitability despite continued top line growth and disciplined cost management.

Shay Chor
Shay Chor
CFO at Zenvia

Starting on the left, we can see revenues reaching BRL $231,000,000, up 7% year over year. This was primarily driven by a strong volume growth in CPaaS, which offset declines in SaaS revenues. However, as we move to the next chart, we can see the pressure on margins. Our adjusted gross profit declined 60% to 49,000,000 reais, with gross margin decreasing to 21%. There were two main drivers behind this.

Shay Chor
Shay Chor
CFO at Zenvia

First, on the CPaaS side, we saw higher mix in the quarter coming from strong growth but at lower margins. This was further impacted by a 27,800,000.0 reais SMS cost adjustment related to the full year, but only recognized entirely in q four rather than being spread across previous quarters. As you can see in the center chart, this had a major effect on our CPaaS gross profit and margin. If we exclude this onetime item, CPaaS adjusted gross margin may have been close to 22%, which is much more in line with our expected range of 20 to 25% as opposed to the reported 4%. We view this impact as a nonrecurring and expect margins to normalize progressively over the course of 2025 as we move on with our strategy.

Shay Chor
Shay Chor
CFO at Zenvia

Second, in SaaS, margins declined to tighter profitability from our enterprise clients who continue to operate in a highly competitive environment. Additionally, we incurred higher costs related to the launch of Xender customer cloud. As we continue rolling out this new operation, we expect to see better results from our SaaS segment throughout 2025. As a result of both these effects, CPaaS adjusted gross profit was only BRL 6,000,000, while SaaS reached BRL 43,000,000, with margin declining in both segments. EBITDA, when excluding earn out expenses and the SMS impact I just mentioned, closed the quarter at 35,000,000, a 6% decline versus the BRL37 million recorded in Q4 of twenty three.

Shay Chor
Shay Chor
CFO at Zenvia

We expect this level to be our recurring quarterly EBITDA going into '25. Let's now move to the analysis of the results of the year. In this slide, we show our annual revenue and non GAAP adjusted gross profit over the last three years. On the revenue side on the left, both segment presented growth in the periods. The CPaaS market proved to be much more dynamic and volatile than expected, expanding 25% year over year between '23 and '24 after growing only 3% in the previous year.

Shay Chor
Shay Chor
CFO at Zenvia

While SaaS remained in a highly competitive environment, growing at high single digits in the same period as compared to double digits the year before. But this revenue performance, along with the margin impacts we just discussed, particularly from q four, drove the overall gross margin compression in the year as seen on the chart on the right. Looking ahead, I would like to emphasize again here that we have been investing a lot on the integration of the SaaS solution, and we expect to start to leverage on the growth of SaaS under Zendesk customer cloud. As we move more and more into it, integrating all businesses into the new business model, the company is increasingly transitioning into a full SaaS model, generating MRR through monthly subscription, seats, and usage volume. Let's now look into the profitability for the year in more detail.

Shay Chor
Shay Chor
CFO at Zenvia

This slide gives us a consolidated view on how gross profit and margin performed in '24. Again, profitability was impacted by the newly acquired CPaaS clients with lower margins and the competitive environment for enterprise on SaaS, along with the cost adjustment we just discussed. I would like to highlight here that despite the impact this quarter, we believe this strategy with the newly acquired CPaaS clients will pay off over the medium to long term as we deepen this relationship, and we don't need additional G and A expenses to manage them. Moving on, let's now discuss our G and A. Over the past two years, we've stayed laser focused on tightly controlling costs, cutting 33,000,000 reais in G and A expenses in total, thanks to our streamlining efforts that started at the end of twenty two when our G and A to revenue ratio reached almost 23%.

Shay Chor
Shay Chor
CFO at Zenvia

As you can see in this slide, this ratio went down to 12% in '24, from 16% in '23, and from 19 and a half percent in '22, down by 760 basis points in this two year period. We are very proud to have been able to pivot the company this way, improving both the productivity and profitability, which are vital for this next phase of growth, as Caso mentioned in his opening remarks. As we enter '25, we remain committed to keeping our focus on streamlining our operations to drive efficiency. We announced in January a headcount reduction projected to generate cost saving over the additional 30 to 35,000,000 reais in '25 even after accounting for severance expenses. And we are also counting on AI and automation to have an even deeper impact in streamlining efforts moving forward.

Shay Chor
Shay Chor
CFO at Zenvia

As a result of all our efforts on both the revenue side and G and A side, EBITDA multiplied by almost five times in these two years, but fell short of the full year '24 guidance for the reason I already explained. Even though our revenues went up 19% year over year to 960,000,000 reais and the G and A expenses went down 11% year over year, it was not enough to offset the lower gross profit margins. We are frustrated that we couldn't reach our EBITDA guidance for '24, but at the same time, we are confident about '25 given the early improvements we are already seeing in the first months of the year. Moving on to the next slide, another key index that we always like to highlight is our EBITDA minus CapEx. This metric not only highlights our operational efficiency, but also helps you understand how well we are positioning ourselves to deleverage, fund future growth, maintain financial flexibility, and reward shareholders.

Shay Chor
Shay Chor
CFO at Zenvia

As you can see in this slide, in '22, when we deducted the CapEx from our EBITDA, we still saw a negative figure. It turned positive in '23 and improved even more in '24, even considering the increase in CapEx related to the investments in data center this year. When we look year over year, our EBITDA minus CapEx improved 26,000,000 reais in '24, but for the two years, the performance is even better, an improvement of 53,000,000 reais. We also ended the year with a cash balance of 117,000,000 reais. We expect EBITDA to continue growing at a faster pace than our CapEx as it has been the case for the few last few years.

Shay Chor
Shay Chor
CFO at Zenvia

CapEx for '25 should remain in the same level of '24. Xavier customer cloud is the growth engine for our company from now on. Moving on to the next slide to talk about our next steps. As we move into this next phase, our focus remain clear. We'll continue to accelerate organic growth supported by the increasing scalability of our new platform.

Shay Chor
Shay Chor
CFO at Zenvia

At the same time, we are streamlining operations even further with AI playing a key role, not just in how we serve clients, but in how we operate internally with greater efficiency and intelligence. As a means to sharpen our focus on our core business and drive the expansion of our ecosystem, we'll carefully evaluate opportunities to divest on core assets as we disclosed in January. We believe we own assets that hold significant value in their segments, and an opportunistic divestment could play a key role in optimizing our capital structure. As we embark on our new strategic cycle, we are focused on expanding Zendia customer cloud in Brazil and Latin America. Our priorities are accelerating organic growth while continuing to deleverage the company.

Shay Chor
Shay Chor
CFO at Zenvia

We are working hard for these actions to result in a more efficient company with exceptionally solid business metrics, enabling us to unlock value to our shareholders. I couldn't close this call without thanking you all for your support in '24, which as I said in the beginning of my prepared remarks was a transformative year for us. We appreciate your continued trust as we move ahead. We are committed to building a profitable and exciting future for Xenia. Based on what we have seen so far, we expect to report a good start for the year with q one numbers by mid June.

Shay Chor
Shay Chor
CFO at Zenvia

We cannot anticipate specific number at this point, but I can say that we are seeing revenue growth picking up, SaaS margin recovering, and EBITDA tracking at healthy levels. With this, we conclude our prepared remarks, and we are ready to take your questions.

Operator

We will now begin the question and answer session. Once again, for this Q and A session, we ask you to write down your question via the Q and A icon at the bottom of your screen. Your name will then be announced, and you'll be able to ask your question live. At this point, a request to activate your microphone will appear on your screen. If you prefer not to open your microphone live, please write down no microphone at the end of your question, and operator will read your question aloud.

Operator

Our first question comes from Armageddon. Two questions from me. Can you can you take it, Shay?

Shay Chor
Shay Chor
CFO at Zenvia

Yeah. Yeah. I'll I'll read it, and I'll I'll Okay.

Operator

Thank you.

Shay Chor
Shay Chor
CFO at Zenvia

So first question, could you provide clarity on Xenvia's full year 2025 revenue outlook? Specifically, how should investors model the Customer Cloud segment 25% to 30% projected growth in relation to your traditional SaaS CPaaS business lines? To what extent do you anticipate Customer Cloud revenues to cannibalize existing revenue streams versus creating net new growth? Thanks, Armin, for your question. So I'll by trying to separate the the revenues here so easier for for everybody to understand.

Shay Chor
Shay Chor
CFO at Zenvia

When we think about the SaaS business, the entire SaaS business in '24, we generated approximately 320,000,000 reais in in in revenues. Given that we stated that Zevia customer cloud was about 180,000,000 reais, so so that is the part that we are saying that it's going to grow about 25 to 30%, the 180,000,000 reais that we generate in under Xenvia customer cloud. There are still about BRL 140,000,000 in other SaaS businesses that we expect to be flattish to 5% growth. So it's a SaaS we can even consider that SaaS legacy business. So those are businesses that in the M and A that we did, they don't fit under Xenvia Customer Cloud, but they still generate decent revenue and they still generate decent profitability.

Shay Chor
Shay Chor
CFO at Zenvia

So those are businesses that we'll keep investing to make them updated, but we'll not put a lot of efforts to keep growing those businesses. There are important clients that are with us for a while, and we'll keep them with us investing in what they need. But there will be no effort as we are putting effort on Xeno customer cloud. Now on the CPaaS business, it's actually been surprising us. '24 was surprising in terms of growth.

Shay Chor
Shay Chor
CFO at Zenvia

We understand that this business should be growing between 58%, but it grew way faster than this in '24. We are anticipating a twenty five percent that it's growing. It should move back to that 5% to 8% growth. But in the first couple of months of this year, we are seeing that CPaaS continue growing fast. Second question, could you provide an update on the current status of your plan divestments?

Shay Chor
Shay Chor
CFO at Zenvia

Has the company established any specific milestones or timeline for completing this process that you're able to share with investors? We are not able to share any specific details on divestments. As we said on our January 13 statement, we'll be opportunistic on evaluating divestments alternatives. The main focus of the divestment is to improve our capital structure, so deleverage balance sheet. So that's what we should have investors should have in mind.

Shay Chor
Shay Chor
CFO at Zenvia

And on top of that, obviously, we'll continue doing all liability management that we need to do to deleverage balance sheet. If you look into our financial statements that we published late last week in in the subsequent events, we detail that we renegotiated debt with the debts that we have the loans that we have with banks. Most of them, we were granted a six six month grace period on on the principal amortization. So so that is the kind of thing we'll continue doing in parallel to divestment because divestment we don't control. We need to be opportunistic.

Shay Chor
Shay Chor
CFO at Zenvia

And in any case, we'll need to continue doing liability management to make our EBITDA fit into our capital structure. You go I'll keep going here, because I see there's no live questions. Okay?

Operator

Okay, Shay. Thank you.

Shay Chor
Shay Chor
CFO at Zenvia

This is one for Casio. Now that AI is a reality, as you mentioned, what are you seeing as a new hot topic or things that Zanzia is seeing that could happen differently in '25?

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

As during 2024, we build the foundations to blend AI into the core of our Zevi customer cloud. We see that the adoption of simple use cases that was the beginning of AI into the platform is now evolving into a more interconnected use case, which combines the data that companies have considering the history of their customers' transactions, the history of past interactions with these customers to then create more sophisticated customer journeys and experiences for these customers. So we're beginning to see the adoption of agents that that we are offering our customers within similar customer to automate some more complex journeys and complex interactions that use that data to help customers to solve their issues, to understand what is the best offer for them, to anticipate, what could be offered for them in terms of marketing offerings and so forth and so on. So we are, starting to see the use of the combination of data and past interactions into more personalized express for end customers.

Shay Chor
Shay Chor
CFO at Zenvia

Thanks, Casio. Another one here for you. I remember at some point you talked about charging per interaction. The SaaS industry mostly on a per seat basis. Can you elaborate more on this?

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Sure. Historically, SaaS companies charged their platform, their software per seat, which is the from, like, a legacy from the old ways of selling software per license. But that's what we see in the adoption of SaaS even though it evolves human agents operating the software. When you go into automation and AI, you expect customers to use your software not for increasing the amount of human agents using the software, but going into deeper into how to use data and use AI to create more value for their operations for their businesses. So what we changed, and this is something that in the next couple years will be the major trend in SaaS is not to charge, per seat, solely, but migrate that to for usage.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

And per usage, depending on the business and the and the software that you're providing means different things. In our case, as we are providing software for customer experiences, it makes sense to charge our companies in terms of how many, interactions they have with their end customers. Hence, we did that movement, last year. Now we charge our software, the whole of Zendesk customer cloud customer cloud to per interaction with end customers. And what happens when we do that is that we don't limit the amount that that many the way user human agents are using the software, but we actually stimulate them to adopt different features that would make provide, for instance, chatbots or agents for marketing purposes or automation over campaigns or ways to help these agents to be more productive.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

And this for companies actually help them to be more efficient to reduce costs. So not enough. And from our perspective, we're benefiting our customers, and at the same time, we're capturing more volume and more revenues from these same customers as they when they as as they use more our software, we are able to charge more by per per usage. And we see that this is the way we are gonna, over the last next couple years, be able to monetize our customer base more and more as they usually companies our customers usually start with one use case, usually no automation or very simple use case. And over time, they begin using our software for other use cases, for other departments, for other parts of the customer journey.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

And that brings, of course, more interactions that are managed by our software. That's why we see that we'll create, and it is already creating a positive, flow in terms of revenue from some customers.

Shay Chor
Shay Chor
CFO at Zenvia

Okay. Moving forward here. Back on the divestment, can't you also not share if Sarapag is even interested at this moment? I understand you can give specific details, but is there any serious interest currently? Unfortunately, we cannot provide any details on divestment.

Shay Chor
Shay Chor
CFO at Zenvia

I can ensure you all that we've been working hard looking into all alternatives and options that we have, But again, we cannot share any further details at this point. Another one here for you, Casio. I have noticed that in the past few months, has been a bigger focus from the team on the franchise model as well as new partnerships. Could you talk us through what the ultimate vision is here? Are there customer acquisition tools, retention or pure play monetization opportunities?

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Sure. As was being evolving within the customer cloud, we understood that to for companies to go deeper into the usage of platform to create genres that journeys that go end to end from sale marketing to sales, customer service, customer engagement. Sometimes it's necessary not only to have the software available, but also to have someone by your side that is a specialist on the your kind of company, in your vertical, in your region, that kind of use case you're trying to evolve. So we always had some partners working with us to help on these use cases. But as we saw last year, these demand for more sophisticated sophisticated usage of our software, we understood that that there was a very interesting opportunity to evolve these partners into our franchises where they these partners, they not only help us to sell the platform, but also help customers to achieve their operating results.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

So we're being evolving that model since end of last year. It's going much better than we expected, and we're aiming to scale that even more. We are not disclosing many numbers at this time, but over the last couple of months and that's that we're we're gonna be able to, disclose how these, new sales, channel is, performing. But I'll safe to say that over the next couple of quarters will become the major sales channel for, Zenvia. So we're adding a new sales channel.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

It's performing pretty well when I expect that will help us to achieve, strong growth in the next couple quarters.

Shay Chor
Shay Chor
CFO at Zenvia

Thank you, Caso. Moving forward here, will twenty twenty five gross margin for both SaaS and CPaaS get back above 23 levels? Or will we stay below that? So for those who are not in front of the numbers, just to help you guys here, the gross gross margin on the SaaS business in '23 was 46%, and on the CPaaS was a '20 should be in '24 was 26%. So looking into '25, on the SaaS business, we should expect gross margin to be back to the levels of twenty three percent.

Shay Chor
Shay Chor
CFO at Zenvia

So let's call it between 4550%. And on the CPaaS business, the 26% we presented in '24 should be a normalized level. So slightly below that, maybe closer to 25%. So I would say that it should be closer to 23 levels in terms of the SaaS business and close to 24 levels in terms of the on the CPaaS business. I'll keep going here.

Shay Chor
Shay Chor
CFO at Zenvia

I understand you're not providing at this point any guidance for 2025. So could you tell us what are your main goals or challenges for this year? So, Caso, I'll start with pure financial, and I'll let you run through operations and strategic. Okay? In terms of financials, I would say that main goals for 2025, first is the leverage balance sheet and align our EBITDA better align our EBITDA to capital structure of the company.

Shay Chor
Shay Chor
CFO at Zenvia

And the second thing is do better than we did in '24 in terms of of EBITDA, in terms of profitability. Those are the main goals for us from a pure financial perspective. Caso, I don't know if you wanna add something in in in the operations or products.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Sure. Well, as you know, we are aware, we are we have we're operating CPaaS as a mature business. Also, as our main transmission, we have the legacy SaaS that we are continuing to operate, but we expect mature growth. But when you look when you look to Semler CosmCloud, our focus of investment of the last two, three years, we are seeing an amazing performance. We're seeing a big evolution of the software of customer experiences, and that is resulting into not only a a strong customer acquisition, but especially more engagement from our own our our current customers using the software.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

We're seeing more adoption of the software, I would say, at least around a half percent half of our customer base using the customer cloud is already using for two or more use cases, meaning 10 times with more than 10 times that that what we had before in customer cloud. And that not only gives us a strong retention of these customers that they that go into a more deep production, that we see that they they grow their revenues with us. So this combination offers stronger customer acquisition and a deeper adoption of our software and combined with usage based business model is generating a very interesting combination of revenue growth for Ximray customer cloud. And as gross margins for this business are pretty healthy, we are seeing that over the next couple of quarters, we'll be able to make this business become the strongest portion of the whole company generating cash. It's already a bit of positive.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

These all these combined gives us a very optimistic overview for 2025.

Shay Chor
Shay Chor
CFO at Zenvia

Thanks, Casio. I got another one. It seems to be the last one for the time being. How should we look at EBITDA margins for this year? Same story as the gross margins.

Shay Chor
Shay Chor
CFO at Zenvia

So again, we're not providing specific numbers. As I mentioned, we are targeting in one of our main goals for '25 is to improve EBITDA from what we delivered in '24. I cannot share any specific level, but I can say that we are aiming at doing better than we did in '24. Hugo, we have no further questions here so far.

Operator

Again, if you have a question, please use the Q and A icon at the bottom of your screen to write it down, and we'll open your microphone. If you prefer not to open your microphone, please write down no microphone at the end of your question. And our operator will read your question aloud. Thank you, Shay. So this concludes our Q and A session.

Operator

I'd like to turn the conference back over to Mr. Casio Babson for his closing remarks.

Cassio Bobsin Machado
Cassio Bobsin Machado
Founder, CEO, Chairman & Interim Chief Sales Officer at Zenvia

Thank you everyone for joining us on this call. 2024 was a very challenging year for us, and we see that, on the other side, we were able to base, all the foundations during the last year that are now becoming the, basis for our 2025, high expectations. We're seeing that the market is pretty healthy, and our performance is doing amazing well on q one. We expect that to continue over the next couple of quarters. And so expect to see you all of you on the next couple of weeks, so we can share our Q1 numbers. So see you, and thank you very much.

Operator

The conference has now concluded. Zanbia's IR area is at your disposal to answer any additional questions. Thank you for attending today's presentation. You may now disconnect. Have you all a nice day.

Executives
    • Cassio Bobsin Machado
      Cassio Bobsin Machado
      Founder, CEO, Chairman & Interim Chief Sales Officer
    • Shay Chor
      Shay Chor
      CFO
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Key Takeaways

  • The company launched Zenvia Customer Cloud, an AI-driven, unified CX platform with product-led growth and usage-based pricing, reaching 6,000 clients and BRL 180 million in 2024 revenue, and targeting 25–30% growth and 68–70% gross margin in 2025.
  • In Q4, revenue rose 7% to BRL 231 million, driven by CPaaS volume gains that offset SaaS declines, but adjusted gross margin compressed to 21% due to a one-time SMS cost adjustment and competitive SaaS pricing; margins are expected to normalize over 2025.
  • As of January 2025, the fourth strategic cycle emphasizes accelerating organic growth of the core CX business, expanding a franchise and partner ecosystem, streamlining operations with AI, and pursuing opportunistic divestments to strengthen the capital structure.
  • Cost-saving measures cut BRL 33 million in G&A over two years, reducing the G&A/revenue ratio from 23% to 12% and nearly quintupling EBITDA, although full-year 2024 EBITDA missed guidance; early 2025 trends show recovering SaaS margins and healthy EBITDA levels.
  • International expansion in Mexico and Argentina now represents 20% of Customer Cloud clients, validating the platform’s regional traction and supporting sustainable growth across Latin America.
AI Generated. May Contain Errors.
Earnings Conference Call
Zenvia Q4 2024
00:00 / 00:00

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