Strong Q1 2023 profitability metrics with Gross Profit YoY
growth of 38.3% leading to EBITDA of BRL
23.9 million
SÃO PAULO, May 17, 2023
/PRNewswire/ -- Zenvia Inc. (NASDAQ: ZENV), the leading
cloud-based CX platform in Latin
America empowering companies to transform their customer
journeys, today reported its operational and financial metrics for
the first quarter of 2023.
Cassio Bobsin, Founder &
CEO of ZENVIA, said: "Our strong results in the first quarter
of 2023 are a testament of our intensified focus on profitability
and the strength of our innovative SaaS platform. Our clients are
already understanding the benefits of being able to concentrate
their full customer journey with us. Increasing the cross–selling
will be our utmost focus in 2023. Amid a still challenging
macroeconomic environment, we continued delivering innovative
solutions tailored to every stage of the customer journey."
Shay Chor, CFO & IRO of
ZENVIA, said: "We are proud to announce our first quarter
results for 2023 with strong profitability metrics, attesting our
ability to navigate a complex economic environment while executing
the savings plan initiated in July
2022. The correct balance between revenue growth and
profitability led to a 38% growth in Gross Profit and EBITDA of
BRL 24 million, which marks three quarters in a row of positive EBITDA.
We have also been able to manage well our cash generation, which is
allowing us to pay down more expensive debt and foresee lower
funding gap for the remainder of the year."
Key Financial Metrics
|
Q1 2023
|
Q1 2022
|
YoY
|
Total Customers
|
13,292
|
12,400
|
7.2 %
|
Net Revenues (BRL MM)
|
179.0
|
197.6
|
-9.4 %
|
Non-GAAP Gross Profit (BRL MM)
|
92.5
|
66.8
|
38.3 %
|
Non-GAAP Gross Margin
|
51.6 %
|
33.8 %
|
17.8 p.p.
|
EBITDA(1) (BRL MM)
|
23.9
|
-7.6
|
n/m
|
Cash Balance (BRL MM)
|
159.0
|
391.6
|
-59.4 %
|
Operating Cash Flow(2) (BRL
MM)
|
95.3
|
(46.6)
|
n/m
|
- Normalized EBITDA for Q1 2022, which excludes non-cash impacts
from earn-outs adjustments.
- EBITDA (+/-) changes in working capital (-) capex.
Financial Highlights Q1 2023
- Net Revenues down 9.4% YoY to BRL 179.0
million, mainly from lower SMS volumes given increasing
focus on profitability in the CPaaS segment.
- Non-GAAP Gross Profit of BRL 92.5
million, up 38.3% YoY, with non-GAAP Gross Margin expanding
17.8 p.p. to 51.6% due to a better revenue mix combined with
stronger margins across all segments.
- Total number of active customers reached 13.3k, comprised of 6.4k from SaaS and 7.4k from CPaaS.
- Operating Cash Flow (OCF) of BRL 95.3
million due to positive EBITDA and better working capital
management.
Our Segments
We report Revenue and non-GAAP Gross Profit broken down by SaaS
and CPaaS. We believe this is the best way for all stakeholders to
understand our business and growth levers.
SaaS Business
SaaS Key Operational & Financial
Metrics
|
Q1 2023
|
Q1 2022
|
YoY
|
Total Customers
|
6,446
|
3,362
|
91.7 %
|
Net Revenues (BRL MM)
|
68.6
|
51.9
|
32.1 %
|
Non-GAAP Gross Profit (BRL MM)
|
46.4
|
33.2
|
39.8 %
|
Non-GAAP Gross Margin
|
67.7 %
|
64.0 %
|
3.7 p.p.
|
Net Revenue Expansion
|
121.3 %
|
n/a
|
n/a
|
Our SaaS business Net Revenues increased 32.1% YoY to
BRL 68.6 million in Q1 2023, of which
BRL 59.1 million was recurring-based,
compared to BRL 51.9 million in Q1
2022 revenues of which BRL 44.9
million was recurring-based.
This quarter saw an increase in downsell due to uncertainties
related to the macro scenario in Brazil, especially impacting our large
corporate clients, which negatively impacts our growth rate.
Therefore, our Net Revenue Expansion (NRE) totaled 121.3%
compared to 124.0% in Q4 2022 and the Annual Recurring Revenue
reached BRL 236 million, a
BRL 3 million decrease compared to Q4
2022, mainly due to this downsell.
Despite this challenging macro environment, we managed to post
healthy profitability metrics in this segment, with Non-GAAP Gross
Profit for the quarter increasing 39.8% YoY to BRL 46.4 million, up from BRL 33.2 million, translating into a Non-GAAP
Gross Margin of 67.7%, up 3.7 percentage points when compared to Q1
2022.
SaaS Case Study: VIA increases customer retention by
digitalizing its customer service operations
VIA (B3: VIIA) is the holding company of many of the leading
Brazilian retail brands such as Casas Bahia, Ponto Frio and Extra.com.br. It serves nearly 97
million customers through e-commerce, 1,100 physical stores, 29
distribution centers and delivery hubs. The pandemic took a toll on
the company's customer service operations: with volumes tripling,
VIA didn't have enough automation to meet growing demand. This
significant increase, especially in digital demands, prompted the
company to look for new ways to innovate and further digitize its
customer journey.
One of the key solutions chosen was to use Zenvia's customer
experience platform to implement chatbots in the contact channels,
as their customer service was previously more phone based. The bots
work both on the inbound and outbound flow of information – they
can answer a simple question on a delivery date and are also able
to warn clients of a problem that may impact a delivery date.
The implementation of Zenvia's chatbot led to a dramatic change
in the consumer experience of VIA and its brands, which can be
measured by satisfaction surveys. Those who are served by digital
channels give a score 28% higher than those who are served by
'humans'. In addition, VIA recorded improvements of more than 27%
in customer retention through the use of chatbot.
"Zenvia helped us precisely in this construction. We had a
pain in understanding what was the best channel for the client,
what was the best way to communicate, what were the most
sought-after journeys, how to automate the main doubts. For
example: 'what is my delivery date?', the bot can answer this for
the client. So Zenvia has helped us to cut through the red tape, to
personalize and offer a better experience for our customers,"
said Fabrícia Ruiz Braga, Customer
Service Project Manager at VIA.
AI Use Case: Integration of ChatGPT with chatbot tool for a
major Brazilian Insurance company
Since May 2023, a major Brazilian
insurance company has been using Zenvia's solution integrating
ChatGPT with the chatbot tool. Zenvia's chatbot integrated with
generative AI is trained to search through and reuse documents
already created within the company, unlike traditional chatbots
which are designed based on training and question mapping and
require a variety of sample Q&As to optimize the automation of
CX solutions. The latest innovation enables a wider variety of
questions to have automated answers, opening many doors for the
future application of the tool. Further, Zenvia's chatbot no longer
needs to be taught regional vocabularies individually, which was
previously required to match the various vocabularies of users.
We continue to explore the possibilities of ChatGPT in our
solution portfolio to enhance the customer journey, aiming at
leading the way in the use of generative AI for CX in Latin America. In February 2023, we launched the integration of its
mass texting service solution, Zenvia Attraction with ChatGPT.
CPaaS Business
CPaaS Key Operational & Financial
Metrics
|
Q1 2023
|
Q1 2022
|
YoY
|
Total Customers
|
7,358
|
9,123
|
-19.3 %
|
Net Revenues (BRL MM)
|
110.5
|
145.8
|
-24.2 %
|
Non-GAAP Gross Profit (BRL MM)
|
46.0
|
33.4
|
37.8 %
|
Non-GAAP Gross Margin
|
41.7 %
|
22.9 %
|
18.8 p.p.
|
Our CPaaS business reported Net Revenues of BRL 110.5 million in Q1 2023, down 24.2%, while
Non-GAAP Gross Profit increased to BRL 46.0
million from BRL 33.4 million.
Non-GAAP Gross Margin reached 41.7% compared to 22.9% - a direct
result of our strategy to find the correct balance between volumes
and profitability.
Following a competitive environment in H2 2022 with strong
pricing pressure, we started to see improved dynamics as of
January 2023, which combined with
Zenvia's new offers that better balance price and SLA, led to a
recovery of SMS volumes from certain large clients.
Therefore, despite the lower number of customers and Net
Revenues, the strong increase in Gross Profit and Gross Margin
attests our ability to execute on the mature CPaaS business,
demonstrating its potential to generate cash, which is instrumental
to fund the expansion of our SaaS business.
Consolidated Financial Results
Revenue
Consolidated Revenue in Q1 2023 totaled BRL 179.0 million, down 9.4% YoY, mainly
reflecting the drop in CPaaS revenues related to the focus on gross
profit generation. This decrease was partially offset by the 32.1%
growth of the SaaS segment.
Profitability
Non-GAAP Gross Profit increased 38.3% YoY to BRL 92.5 million, reflecting strong margin
expansion in both SaaS and CPaaS and improved revenue mix, while
Non-GAAP Gross Margin expanded to 51.6% from 33.8% in Q1 2022, up
almost 18 p.p. due to the better mix of SaaS services coupled with
the recovery of volumes with sustained margins and higher
profitability in CPaaS.
EBITDA in Q1 2023 was positive BRL 23.9
million, compared to a negative BRL
7.6 million in Q1 2022(1). This stronger EBITDA
is mainly due to the expansion in Gross Profit and the execution of
our savings plan initiated in July
2022, including the restructuring announced in November 2022, that led to a 9.5% drop in G&A
expenses to BRL 31.4 million in Q1
2023 from BRL 34.7 million in the
same period of 2022.
Cash Management
In Q1 2023, Operating Cash Flow (OCF) was BRL 95.3 million, mainly due to positive EBITDA
and better working capital management, especially due to higher
anticipations from clients of more than BRL
50.0 million and renegotiations with SMS providers to more
flexible payment terms. This working capital improvement is
enabling us to pay down debt and reduce our funding gap for
2023.
Non-GAAP Summarized Indirect Cash
Flow
|
|
Q1 2023
|
Q1 2022
|
EBITDA(1)
|
|
23.9
|
(7.6)
|
Changes in Working
Capital(2)
|
|
82.3
|
(33.7)
|
Capex
|
|
(10.9)
|
(5.3)
|
Operating Cash Flow (OCF)
|
|
95.3
|
(46.6)
|
Financial
|
|
(36.6)
|
(144.0)
|
Net
funding
|
|
(9.4)
|
(11.5)
|
Interest +
Leasing
|
|
(6.8)
|
(8.5)
|
Acquisitions (EOs)
|
|
(20.4)
|
(124.0)
|
Cash Balance Variation
|
|
58.8
|
(190.6)
|
- Normalized EBITDA for Q1 2022, which excludes non-cash impacts
from earn-outs adjustments
- Q1 2023: Mainly anticipations from clients, including
Twilio
FY 2023 Guidance
|
FY 2023 Guidance
|
Revenue (millions)
|
BRL $830 - $870
|
Y/Y
Growth
|
9% - 15%
|
CPaaS
Revenue
|
BRL $490-500
|
SaaS
Revenue
|
BRL $340-370
|
|
|
Non-GAAP Gross Margin
|
42% - 45%
|
Y/Y
Expansion
|
-2.0p.p. - +1.0p.p.
|
CPaaS Non-GAAP Gross
Margin
|
~26%
|
SaaS Non-GAAP Gross
Margin
|
~63%
|
|
|
EBITDA (millions)
|
BRL $70 - $90
|
Earnings Release and Conference Call
The Company
will host a webcast on Thursday, May 18,
2023, at 10:00 am ET to
discuss its operational and financial metrics. To access the
webcast presentation, click here.
Additional information regarding Zenvia can be found at
https://investors.zenvia.com.
Contacts
Investor Relations
Caio
Figueiredo
Fernando
Schneider
ir@zenvia.com
|
Media Relations – Grayling
Lucia Domville – (646)
824-2856 – lucia.domville@grayling.com
Fabiane Goldstein –
(954) 625-4793 –
fabiane.goldstein@grayling.com
|
About ZENVIA
ZENVIA is driven by the purpose of
empowering companies to create unique experiences for end-consumers
through its unified CX SaaS end-to-end platform. ZENVIA empowers
companies to transform their existing customer experience from
non-scalable, physical and impersonal interactions into highly
scalable, digital-first and hyper-contextualized experiences across
the customer journey. ZENVIA's unified end-to-end CX SaaS platform
provides a combination of (i) SaaS focused on campaigns, sales
teams, customer service and engagement, (ii) tools, such as
software application programming interfaces, or APIs, chatbots,
single customer views, journey designers, documents composer and
authentication and (iii) channels, such as SMS, Voice, WhatsApp,
Instagram and Webchat. Its comprehensive platform assists customers
across multiple use cases, including marketing campaigns, customer
acquisition, customer onboarding, warnings, customer services,
fraud control, cross-selling and customer retention, among others.
ZENVIA's shares are traded on Nasdaq, under the ticker ZENV.
Forward-Looking Statements
The preliminary
fourth quarter and full year operating results set forth above are
based solely on currently available information, which is subject
to change. These preliminary operating results constitute
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are made as of the date they were
first issued and were based on current expectations, estimates,
forecasts, and projections, as well as the beliefs and assumptions
of management. Words such as "expect," "anticipate," "should,"
"believe," "hope," "target," "project," "goals," "estimate,"
"potential," "predict," "may," "will," "might," "could," "intend,"
variations of these terms or the negative of these terms and
similar expressions are intended to identify these statements.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circumstances that
are beyond Zenvia's control. Zenvia's actual results could differ
materially from those stated or implied in forward-looking
statements due to several factors, including but not limited to:
our ability to innovate and respond to technological advances,
changing market needs and customer demands, our ability to
successfully acquire new businesses as customers, acquire customers
in new industry verticals and appropriately manage international
expansion, substantial and increasing competition in our market,
compliance with applicable regulatory and legislative developments
and regulations, the dependence of our business on our relationship
with certain service providers, among other factors.
Our SaaS Portfolio
Zenvia has evolved its
product portfolio organically and through acquisitions. Our
platform now provides four SaaS solutions designed for each phase
of the customer journey, starting with the first interaction with
the brand all the way to a continuous relationship with the
company. The SaaS segment carries higher gross margins and is the
business from where most of our growth will come in the future.
More than half of our margin already comes from our SaaS solutions,
compared to three years ago when this percentage was zero.
Solution
|
Former
|
Focus
|
Zenvia Attraction
|
Zenvia
Campaign
|
Active multi-channel
end-customer acquisition campaigns utilizing data intelligence and
multi-channel automation
|
Zenvia Conversion
|
Sirena
|
Converting leads into
sales using multiple communication channels
|
Zenvia Service
|
Movidesk
|
Enabling companies to
provide amazing customer service with structured support across
multiple channels
|
Zenvia Success
|
Sensedata
|
Enabling companies to
continuously engage customers based on their individual context,
promoting healthy and long-lasting relationships, transforming data
into insights
|
Consulting
|
D1
|
A Business
Intelligence team that serves customer needs – mainly larger
corporations - by using SaaS and CPaaS integrated and taylor-made
solutions to enhance the end-consumer experience
|
Our SaaS solutions can be used alone or combined, allowing
companies to start a program in a matter of minutes, or they can go
all the way to a fully integrated, automated, and intelligent
customer journey. We also provide CX Tools that can be used to
integrate and automate the customer experience in various ways. Our
main tools are Application Programming Interface (APIs), a
robot-like software program that performs automated, repetitive,
pre-defined tasks (Bots), Natural-language understanding (NLU) and
tools that enable companies to manage documents securely and safely
during the end-consumer journey (Docs). The Quantum
platform connects all our solutions and tools with the
client's systems and processes. Companies can access our platform
and start choosing from any solution or tool. As they go deeper
into adopting multiple parts of the platform, we can break down all
CX barriers and unlock the true potential for end customers.
SELECTED FINANCIAL DATA
The following selected
financial information are preliminary, unaudited and are based on
management's initial review of operations for the first quarter of
2023.
|
Q1
|
Financial Statement
|
2023
|
2022
|
Variation
|
|
(non-audited)
|
(non-audited)
|
|
(in thousands of R$)
|
( %)
|
Revenue
|
179,047
|
197,581
|
-9.4 %
|
Cost of
services
|
-100,098
|
-138,157
|
-27.5 %
|
Gross profit
|
78,949
|
59,424
|
32.9 %
|
Selling and marketing
expenses
|
-27,442
|
-25,419
|
8.0 %
|
General and
Administrative expenses
|
-31,447
|
-34,733
|
-9.5 %
|
Research and
development expenses
|
-14,004
|
-13,310
|
5.2 %
|
Allowance for credit
losses
|
-2,161
|
-2,040
|
5.9 %
|
Other income and
expenses, net
|
-83
|
-8,158
|
n.m
|
Operating profit (loss)
|
3,812
|
-24,236
|
-115.7 %
|
Financial
expenses
|
-18,724
|
-13,618
|
37.5 %
|
Finance
income
|
2,625
|
11,900
|
-77.9 %
|
Financial expenses, net
|
-16,099
|
-1,718
|
837.1 %
|
Loss before income tax and social
contribution
|
-12,287
|
-25,954
|
-52.7 %
|
Deferred income tax and
social contribution
|
8,827
|
4,449
|
98.4 %
|
Current income tax and
social contribution
|
-218
|
-20
|
990.0 %
|
Loss for the period
|
-3,678
|
-21,525
|
-82.9 %
|
Balance
Sheet
|
31-Mar-22
|
31-Dec-22
|
31-Mar-23
|
(non-audited)
|
(audited)
|
(non-audited)
|
Assets
|
|
|
|
Current assets
|
583,952
|
313,184
|
407,918
|
Cash and
cash equivalents
|
391,597
|
100,243
|
159,022
|
Financial
Investment
|
-
|
8,160
|
-
|
Trade and
other receivables
|
165,983
|
156,012
|
186,060
|
Tax
assets
|
20,155
|
35,579
|
45,068
|
Prepayments
|
4,298
|
6,369
|
7,534
|
Other
assets
|
1,919
|
6,821
|
10,234
|
|
|
|
|
Non-current assets
|
1,075,623
|
1,490,939
|
1,489,735
|
Tax
assets
|
126
|
107
|
90
|
Prepayments
|
2,659
|
2,207
|
1,886
|
Financial
Investment
|
7,154
|
-
|
-
|
Property,
plant and equipment
|
17,330
|
19,590
|
17,555
|
Intangible
assets and goodwill
|
1,042,810
|
1,377,232
|
1,369,768
|
Deferred
Tax Assets
|
5,459
|
91,769
|
100,601
|
Other
Assets
|
85
|
34
|
10
|
|
|
|
|
Total assets
|
1,659,575
|
1,804,123
|
1,897,653
|
Balance
Sheet
|
31-Mar-22
|
31-Dec-22
|
31-Mar-23
|
(non-audited)
|
(audited)
|
(non-audited)
|
Liabilities
|
|
|
|
Current liabilities
|
356,341
|
476,337
|
631,676
|
Loans, borrowings and
Debentures
|
69,437
|
89,541
|
95,322
|
Trade and other
payables
|
148,833
|
264,728
|
379,200
|
Liabilities from
acquisitions
|
87,443
|
60,778
|
81,139
|
Tax
liabilities
|
17,061
|
17,046
|
15,097
|
Employee
benefits
|
20,028
|
35,039
|
45,028
|
Lease
liabilities
|
2,729
|
1,992
|
2,011
|
Deferred
revenue
|
9,751
|
6,873
|
12,765
|
Taxes to be paid in
installments
|
503
|
340
|
277
|
Derivative and
Financial Instruments
|
556
|
-
|
837
|
|
|
|
|
Non-current liabilities
|
150,559
|
374,546
|
315,632
|
Liabilities from
acquisitions
|
19,900
|
290,852
|
254,195
|
Trade and other
payables
|
114
|
1,092
|
1,445
|
Loans, borrowings and
Debentures
|
126,759
|
77,293
|
54,537
|
Lease
liabilities
|
2,020
|
2,824
|
2,316
|
Provisions for tax,
labor and civil risks
|
1,150
|
1,969
|
2,585
|
Taxes to be paid in
installments
|
616
|
454
|
402
|
Employee
Benefits
|
-
|
62
|
142
|
|
|
|
|
Equity
|
1,152,675
|
953,240
|
950,345
|
Capital
|
957,523
|
957,525
|
957,525
|
Reserves
|
227,240
|
244,913
|
249,307
|
Translation
reserve
|
4,495
|
9,485
|
5,8744
|
Accumulated
losses
|
-36,583
|
-258,587
|
-262,337
|
Non-controlling
interests
|
0
|
-96
|
-24
|
|
|
|
|
Total equity and liabilities
|
1,659,575
|
1,804,123
|
1,897,653
|
|
Q1
|
Cash Flow
Reconciliation
|
2023
(non-audited)
|
2022
(non-audited)
|
|
(in thousands of R$)
|
Net cash from (used in)
operating activities
|
99,812
|
-16,421
|
Net cash used in
investing activities
|
-2,703
|
-7,904
|
Net cash from (used in)
financing activities
|
-38,366
|
-136,166
|
Exchange rate change on
cash and cash equivalents
|
36
|
-30,143
|
Net (decrease) increase in cash and cash
equivalents
|
58,779
|
-190,634
|
|
Q1
|
Non-GAAP Gross Profit
Reconciliation
|
2023
(non-audited)
|
2022
(non-audited)
|
|
(in thousands of R$)
|
|
|
|
Gross profit
|
78,949
|
59,424
|
(+) Amortization of
intangible assets acquired from business combinations
|
13,511
|
7,408
|
Non-GAAP Gross Profit
|
92,460
|
66,832
|
Revenue
|
179,047
|
197,581
|
Gross margin
|
44.1 %
|
30.1 %
|
|
|
|
Non-GAAP Gross Margin
|
51.6 %
|
33.8 %
|
|
Q1
|
Normalized EBITDA
Reconciliation
|
2023
(non-audited)
|
2022
(non-audited)
|
|
(in thousands of R$)
|
EBITDA
|
23,945
|
-9,472
|
Adjusted EBITDA
|
23,945
|
-9,472
|
Earn-outs
|
0
|
1,867
|
Normalized EBITDA
|
23,945
|
-7,605
|
Indebtness
|
Interest
|
March 31, 2022
|
December 31, 2022
|
March 31, 2023
|
(in thousands of R$)
|
Working
capital
|
100% CDI+2.40% to
5.46%
and 8.60% to 12.95%
|
151,196
|
125,834
|
118,330
|
Debentures
|
18.16 %
|
45,000
|
41,000
|
31,529
|
Total
|
|
196,196
|
166,834
|
149,859
|
View original
content:https://www.prnewswire.com/news-releases/zenvia-reports-q1-2023-results-301827907.html
SOURCE Zenvia