Zenvia's Q1 2025 Results: Strong Growth Amid Transition to Customer Cloud

Zenvia Inc. (NASDAQ: ZENV), recognized as the leading cloud-based customer experience (CX) solution provider in Latin America, announced its operational and financial metrics for the first quarter of 2025 on July 2, 2025. The company exhibited significant growth in revenue driven primarily by the continued expansion of its Communication Platform as a Service (CPaaS) and a gradual transition towards its Zenvia Customer Cloud.

Strong Financial Performance

In Q1 2025, Zenvia recorded total revenues of BRL 295 million, marking a noteworthy 39% increase compared to BRL 213 million for the same period in 2024. This growth was largely fueled by a remarkable 58% year-over-year increase in CPaaS revenues, primarily due to heightened SMS volumes attributed to large clients despite lower margins. The Software as a Service (SaaS) revenue segment also showed positive growth, rising by 5% mainly from small and medium-sized businesses (SMBs).

Cassio Bobsin, Zenvia's Founder and CEO, expressed optimism regarding the company's strategic direction, stating, "2025 is a transformative year for Zenvia, as we expect to begin reaping the results of all the investments made over the past few years." Bobsin emphasized the firm's commitment to successfully transition to the Zenvia Customer Cloud, anticipating its completion by year-end.

Transitioning to Customer Cloud

The ongoing transition to Zenvia Customer Cloud is structured to enhance the user experience by providing companies with more personalized and efficient customer interactions. While this change is pivotal, it has led to a temporary strain on profit margins due to increased operational costs during the ramp-up phase.

In Q1 2025, Zenvia’s gross profit dropped to BRL 61.7 million from BRL 80.9 million in Q1 2024, reflecting a decline of 23.7%. Despite this setback in gross profitability, expense management has improved significantly, with general and administrative (GA) expenses decreasing by 24% to BRL 24 million, contributing to a GA-to-revenue ratio of 8.0%, down 6.7 percentage points from the prior year.

Strategic Approach to Growth

Shay Chor, CFO and IRO at Zenvia, discussed the delicate balance between growth and profitability, highlighting that while the expanded customer workload and revenue growth resulted in lower margins, the company continues to focus on expense control.

Chor mentioned, "The revenue increase, coupled with strict expense control, contributed to a Normalized EBITDA of BRL 20 million during the quarter, which aligns with our expectations. This projection anticipates a steady increase as we scale our operations in alignment with our strategic goals."

Outlook for Q2 and Beyond

Looking ahead, the strategic initiatives that Zenvia has undertaken—particularly the enhancement of its partner ecosystem and the focus on customer relationships—are expected to bolster the company's competitive positioning. The leadership remains bullish on the long-term prospects, believing the investments made will yield substantial returns as Zenvia continues to strengthen its foothold in the cloud-based customer experience sector.

Zenvia's commitment to evolving its platform is evident as the company prepares to provide an even more unified and channel-agnostic solution to businesses seeking to enhance their customer interactions.

In the coming quarters, Zenvia anticipates that as it further integrates higher SMS costs into pricing models, profitability metrics will normalize, enhancing overall operational performance and financial health. Furthermore, the firm plans to communicate more insights during an upcoming conference call scheduled for July 3, 2025, where they will delve deeper into these results and provide updates on future business strategies.

Understanding that 2025 is set to be a decisive year for Zenvia, industry analysts and stakeholders will be keenly observing how the company adapts to these challenges and capitalizes on emerging opportunities in the dynamic Latin American market.