#Brazil #São Paulo #Zenvia #CPaaS #Customer Cloud

Zenvia Inc. Reports Strong Q4 2024 and Full Year Financial Results

Zenvia Inc. (NASDAQ: ZENV), the predominant cloud-based customer experience (CX) platform in Latin America, has announced its financial results for the fourth quarter (Q4) and the full year of 2024, marking significant advancements and strategic initiatives designed for future growth.

Founded in 2020, the São Paulo-based company has aimed to provide businesses with tools to create engaging customer experiences. In 2024, Zenvia launched the Zenvia Customer Cloud, a consolidated solution intended to enhance every stage of the customer journey by leveraging artificial intelligence.

Highlights of Q4 2024

In Q4 2024, Zenvia reported revenues totaling BRL 231 million, reflecting a 7% increase from BRL 217 million in Q4 2023. This revenue boost can be attributed primarily to a 17% year-on-year (YoY) rise in the company’s Communications Platform as a Service (CPaaS) segment, countered by a 10% decrease in Software as a Service (SaaS) revenues. The downturn in SaaS revenue was chiefly driven by an 11% drop in enterprise customer revenues.

Despite these challenges, Zenvia's Chief Financial Officer Shay Chor emphasized the company's strong commitment to maintaining expense control; General and Administrative expenses (GA) decreased by 37%, resulting in an improved GA as a percentage of revenue, dropping to 8.3%, down from 14.0% year-over-year.

However, Zenvia faced challenges concerning profitability during Q4, which saw a negative operating income of BRL 14.9 million, marking a substantial decline compared to an operating profit of BRL 15.4 million in Q4 2023. Significant factors contributing to this resulted from notable cost fluctuations in SMS and full-year adjustments. Nonetheless, its Normalized EBITDA for the quarter was reported at BRL 34.8 million, indicating resilience in the face of economic headwinds.

Full Year 2024 Overview

Full-year revenues reached BRL 960 million, marking an impressive 19% increase from the BRL 808 million reported in 2023. This advancement was driven both by a 25% growth in CPaaS, highlighting the increasing demand for communications services, alongside an 8% uptick in SaaS revenues, which reflected resilient growth in smaller and mid-sized business (SMB) segments.

Despite achieving revenue growth, Zenvia reported a 10% decline in Non-GAAP Adjusted Gross Profit, settling at BRL 345 million, primarily due to a higher mix of lower-margin CPaaS services. Normalized EBITDA landed at BRL 105.1 million, indicating a 38% increase from the previous year, albeit below the company's guidance for the year.

The company's cash reserves are notably strong at BRL 117 million, a considerable jump of BRL 53 million year-over-year, reflecting prudent cash management strategies without compromising growth efforts.

Strategic and Operational Changes for 2025

Zenvia is embarking on a new strategic cycle, emphasizing further integration of its customer experience AI and SaaS tools within the Zenvia Customer Cloud. Launched in October 2024, this innovative platform has attracted around 6,000 clients, with 20% being international. The company anticipates that this robust customer base will generate substantial revenue, estimated at nearly BRL 180 million by the end of the fiscal year.

CEO Cassio Bobsin stressed the importance of operating on the efficiency of Zenvia Customer Cloud, underlining a commitment to scaling AI-driven solutions that align with the demands of today’s competitive marketplace.

As Zenvia positions itself among the frontrunners of unified CX AI solutions for B2C sectors, the company is setting its sights on enhancing organic growth while streamlining operations, which it regards as essential components of its success moving forward into 2025.

Zenvia’s management will further elaborate on its strategies and outlook for the upcoming quarters during a conference call on May 20, 2025. For investors and partners eager to stay updated on Zenvia’s progress, more information can be gathered on the company’s investor relations website and social media channels.

With a focus on client needs and innovative service solutions, Zenvia Inc. remains poised to redefine customer interactions across Latin America and beyond, leveraging technology to enhance return on investment (ROI) for its users.

To learn more about Zenvia and its products, please visit their official website or follow them on LinkedIn, Instagram, and TikTok.