Normalized EBITDA of BRL 23.5 million Strict cost control led G&A as % of revenues to 14.7% in Q1 24 from 17.6% in Q1 23 SÃO PAULO, July 15, 2024 /PRNewswire/ -- Zenvia Inc. (NASDAQ:ZENV), the leading cloud-based CX solution in Latin America empowering companies to craft personal, engaging and fluid experiences throughout the customer journey, today reported its operational and financial metrics for the first quarter of 2024. Cassio Bobsin, Founder & CEO of ZENVIA, said: "The highlight of this first quarter of 2024 was the soft launch of Zenvia Customer Cloud for select clients. This platform represents the future of our CX SaaS solutions and fulfills the plan outlined three years ago, in our IPO.  Zenvia Customer Cloud is a unified multichannel solution that empowers B2C companies to sell more and serve better with full automation, integration and communication across the customer journey. With this solution fully deployed, we will be ready to unlock solid and profitable growth while gaining actionable insights about our customers with AI-enabled automation, boosting productivity for the whole journey." Shay Chor, CFO & IRO of ZENVIA, said: "Our first quarter 2024 results came in line with our expectations, with a combination of revenue growth and strict expense control that resulted in an EBITDA of BRL 23.5 million, allowing us to reaffirm our BRL 120 million to BRL 140 million guidance for 2024. Following our recent capital raise and debt refinance, which brought us closer to achieving an optimal capital structure to support our strategic objectives while maximizing shareholder value, we are now planning to finalize integrations, deliver growth and keep deleveraging the business. We appreciate your continued trust and support as we move ahead, committed to building a profitable and exciting future for Zenvia." Key Financial Metrics (BRL MM and %) Q1 2024 Q1 2023 YoY Total Active Customers(1) 13,257 13,292 -0.3 % Revenues 212.6 179.0 18.8 % Gross Profit 80.9 78.9 2.4 % Gross Margin 38.0 % 44.1 % -6.1p.p. Non-GAAP Adjusted Gross Profit(2) 93.6 92.5 1.3 % Non-GAAP Adjusted Gross Margin(3) 44.0 % 51.6 % -7.6p.p. Operating Loss (EBIT) -9.4 -12.3 -23.9 % Adjusted EBITDA(4) 13.4 7.8 71.6 % Normalized EBITDA(5) 23.5 7.8 200.2 % Loss for the Period (55.9) (16.8) n.m. Cash Balance 71.5 159.0 -55.0 % Net cash flow from (used in) operating activities (12.9) 99.6 n.m. (1) We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer. (2) For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below. (3) We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue. (4) For a reconciliation of our Adjusted EBITDA to Loss for the Period, see Selected Financial Data section below. (5) For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below. Highlights Q1 2024 Revenues totaled BRL 212.6 million, up 18.8% when compared to BRL 179.0 million in Q1 2023 as a result of both SaaS (+12% YoY) and CPaaS (+23%) expansion. CPaaS expanded SMS volumes mainly with large enterprises, while SaaS saw growth from both SMBs and large enterprises, with a stronger participation from the latter. Non-GAAP Adjusted Gross Profit of BRL 93.6 million was up 1.3% YoY while Non-GAAP Adjusted Gross Margin was down 7.6 percentage points to the expected level of 44.0% YoY as highlighted in our guidance for 2024. This decrease is due to: (i) Higher mix of CPaaS in the period, mainly from large enterprises with lower margins; and (ii) Lower SaaS margins, which also grew in large enterprises with lower margins, combined with an increase in infrastructure costs related to the final phase of integration of acquired companies. Total number of active customers remained unchanged at 13.3k, being 7.1k from SaaS and 6.5k from CPaaS. Normalized EBITDA was positive BRL 23.5 million in the quarter, up 200.2% from Q1 2023, benefited by higher revenues and expense control. On March 11, 2024, we soft launched Zenvia Customer Cloud for select clients. The platform will be rolled out to the whole client base throughout the year. Zenvia Customer Cloud is a unified, multichannel solution that centralizes and stores customer data, facilitating management, communication, and relationship building with end consumers, enabling companies to manage and provide personalized, engaging, and seamless experiences across the customer journey. Subsequent Events By the end of April 2024, Zenvia raised R$ 40 million in additional funding with local Brazilian banks, following the liabilities management announced in February. On May 2, 2024, Zenvia announced the hiring of Mr. Gilsinei (Gil) Hansen for the newly-created role of Chief Revenue Officer (CRO), reporting to Cassio Bobsin. The new role was created to consolidate the current segments into one single Business area which will be responsible for the entire customer journey. The new area will be organized by customer profile/segment instead of by solution/product, with a focus on strengthening the Company's integrated offering, improving experiences for all customers, and driving profitable growth. Mr. Hansen will also oversee two important growth initiatives: the rollout of Zenvia Customer Cloud and the Company's international expansion. On June 20, 2024, Zenvia launched its Generative AI Chatbot. A game-changing solution that revolutionizes chatbot development, making it as simple and intuitive as a personal interaction and accessible to businesses of all sizes looking to improve and automate customer service. Key highlights include easy customization and efficient integration with multiple communication channels, ensuring a superior solution for all customer needs. SaaS Business SaaS Key Operational & Financial Metrics (BRL MM and %) Q1 2024 Q1 2023 YoY Revenues 76.8 68.6 12.0 % Gross Profit 30.6 32.9 -7.1 % Gross Margin 39.8 % 48.0 % -8.2p.p. Non-GAAP Adjusted Gross Profit (1) 43.4 46.4 -6.6 % Non-GAAP Adjusted Gross Margin(2) 56.4 % 67.7 % -11.3p.p. Total Active Customers(3) 7,139 6,446 10.8 % (1) For a reconciliation of the Non-GAAP Adjusted Gross Profit of our SaaS business segment to Gross Profit of our SaaS business segment, see Selected Financial Data section below. (2) We calculate Non-GAAP Adjusted Gross Margin of our SaaS business segment as Non-GAAP Gross Profit of our SaaS business segment divided by revenue of our SaaS business segment. (3) We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer. In Q1 2024, our SaaS business Revenue went up 12.1% YoY to BRL 76.8 million, compared to BRL 68.6 million in Q1 2023. The client base increased by 11%. SaaS saw growth from both SMBs and large enterprises, with a stronger participation from the latter. As a result, Q1 2024 Non-GAAP Adjusted Gross Profit was down 6.6% YoY to BRL 43.4 million from BRL 46.4 million. The increase in revenues mainly from large enterprises that carry lower margins, coupled with an increase in infrastructure costs related to the final phase of integration of the acquired companies, and our expansion plans, resulted in lower Non-GAAP Adjusted Gross Margin from SaaS, down 11.3 percentage points YoY to 56.4%, reaching our expected target margin for SaaS for the period. CPaaS Business CPaaS Key Operational & Financial Metrics (BRL MM and %) Q1 2024 Q1 2023 YoY Revenues 135.8 110.5 23.0 % Non-GAAP Adjusted Gross Profit (1) 50.3 46.0 9.3 % Non-GAAP Adjusted Gross Margin(2) 37.0 % 41.7 % -4.7p.p. Total Active Customers(3) 6,458 7,358 -12.2 % (1) For a reconciliation of the Non-GAAP Adjusted Gross Profit of our CPaaS business segment to Gross Profit of our CPaaS business segment, see Selected Financial Data section below. (2) We calculate ...