Strong top-line increase from organic
growth and M&A integration
Net Revenues up 50% YoY with Adjusted Gross
Margin expanding 500bps to 38% in Q2
Numbers are within the full-year guidance
range
New reporting breakdown by SaaS and CPaaS
to increase transparency and simplify understanding
SÃO PAULO, Aug. 15, 2022 /PRNewswire/
-- Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX
communications platform in Latin
America, empowering companies to transform their existing
communications with end customers along their life cycle, today
reported its second quarter of 2022 operational and financial
metrics.
Cassio Bobsin, Founder &
CEO of ZENVIA, said: "A couple of weeks ago, we held an
Investor Day on Nasdaq where we shared our long-term strategy and
how we envision the future of Customer Experience (CX). We believe
that since the rise of civilization and modern society,
we've been building organizations based on processes designed for
scale and efficiency. This was a great achievement of the
industrial revolution. The world is in process of transformation,
and value creation has shifted from production efficiency to
customer efficiency. Humans are not designed to interact with
bureaucratic organizations. We are designed to interact with other
human beings. Ultimately, people should be able to talk to
companies as if they were also humans. That's why Zenvia is shaping
a new world of experiences."
Shay Chor, CFO & IRO of
ZENVIA, said: "Starting Q2 2022, and similar to the
approach of our Investor Day, we will break down revenues, gross
profit and margin by SaaS and CPaaS, our two main business lines.
This breakdown will allow for a deeper glimpse into our business
and is more aligned with how we understand and manage our company,
especially following the organizational restructuring announced
last June. It also demonstrates that we are effectively a SaaS
company as over half of our gross margin already comes from the
software business. As we finished up the first half of 2022, Zenvia
is smarter and more robust than ever. Our top-line and gross margin
results attest that we are on the right path to creating value. Our
client base grew 37%, bringing revenues up 50%, while our adjusted
gross profit rose 73% and the gross margin jumped 500bps. We just
started cross-selling our solutions and tools to a growing client
base. R&D expenses also grew to represent about 12% of
revenues. We expect these expenses to remain at this level for the
next couple of years, following the launch of new products that
will significantly leverage our growth and market positioning. And,
despite the current uncertain environment and the challenges
involving tech companies, we are reaffirming our guidance for the
year."
Key Financial
Metrics
|
Q2
2022
|
Q2
2021
|
YoY
|
H1
2022
|
H1
2021
|
YoY
|
Total
Customers
|
14,740
|
10,773
|
36.8 %
|
14,740
|
10,773
|
36.8 %
|
Net Revenues (BRL
MM)
|
203.9
|
135.7
|
50.3 %
|
401.5
|
258.3
|
55.4 %
|
Adjusted Gross
Profit (BRL MM)
|
77.0
|
44.6
|
72.6 %
|
143.8
|
78.0
|
84.3 %
|
Adjusted Gross
Margin
|
37.8 %
|
32.9 %
|
5.0p.p.
|
35.8 %
|
30.2 %
|
5.6p.p.
|
Key operating highlights
- We unified our portfolio: Zenvia Attraction, Zenvia
Conversion, Zenvia Service and Zenvia Success, unified on
our Quantum platform to break down all CX barriers and unlock
the true potential for end customers
- We closed the Movidesk acquisition on May 2nd, 2022, adding 2,500
customers, with an Annual Recurring Revenue (ARR) of BRL 46 million. We expect to fully integrate
Movidesk in a twelve-month period ending May
2023.
- Integration of D1 and SenseData is moving as expected, with
cross-selling solutions being already delivered to some of our
customers. We expect to fully integrate these businesses by the end
of 2022.
- Last June, we announced a tactical reorganization of our
business structure, with fully-dedicated teams to focus on
strengthening its three existing business lines - SaaS, CPaaS, and
Consulting – thus allowing for more autonomy when it comes to
revenue generation activities.
Our Business Lines
To better reflect the current
stage of our business and align with the recent reorganization of
our corporate structure, starting this quarter we will report a
revenue breakdown by SaaS and CPaaS, instead of SMS and
Beyond SMS. We believe this change will allow all stakeholders to
better understand our business and growth levers.
According to IDC, the total addressable market (TAM) in
Latin America for SaaS will be
$5.4 billion in 2026, growing from
$3.2 billion in 2021, while the CPaaS
will grow from $0.9 billion in 2021
to $3.6 billion in 2026. Both markets
will sum up to $9.0 billion in 2026,
from $4.0 billion in 2021.
SaaS Business
The SaaS business line carries
higher gross margins and is the business from where most of our
growth will come in the future. During the IPO, we practically only
had Zenvia Conversion and communication channels as part of our
offering. Twelve months later, Zenvia is talking directly with the
marketing and sales departments, acting along the entire customer
experience journey. More than half of our margin already comes from
our solutions, when nearly three years ago this percentage was
zero.
SaaS Key Operational
& Financial Metrics
|
Q2
2022
|
H1
2022
|
Total
Customers
|
6,593
|
6,593
|
Net Revenues (BRL
MM)
|
64.5
|
116.4
|
Adjusted Gross
Margin
|
68.5 %
|
66.5 %
|
Net Revenue
Expansion (NRE)
|
120 %
|
120 %
|
According to IDC, Zenvia was already among Latin America's top 10 SaaS players by the end
of 2021, with 2.2% of market share. This means we have already
changed the customer experience of over 40 million people in LatAm
with our SaaS solutions, compared to a total population of 925
million in the region, which means that we can still change the
experience of 95% of them.
The Latin American SaaS market is expected to reach US$5.4 billion in value by 2026, with a market
size of $2.2 billion, and a CAGR of
12.0% and 19.3%, respectively. Our SaaS revenues have been growing
faster than the market as we gain market share. Our products are
designed to solve the pains of LatAm businesses, from price point
to suitability, giving us a competitive advantage. Our offering
competes with global suites that are not tropicalized for local
needs and are usually charged in US dollars. Furthermore, our
offering off-the shelf promotes an easy adoption and a short sales
cycle.
Our SaaS Portfolio
Since our IPO a year ago,
Zenvia has evolved its product portfolio organically and through
acquisitions. Our platform now provides four SaaS solutions
designed for each phase of customers' journey, starting with the
first interaction with the brand and all the way to a continuous
relationship with the company.
Solution
|
Former
|
Focus
|
Zenvia
Attraction
|
Zenvia
Campaign
|
Active end-customer
acquisition campaigns
|
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
|
Our SaaS solutions can be used alone or combined, allowing
companies to start a program in a really simple way 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
experiences in various ways. Our main tools are APIs, Bots,
Natural-language understanding (NLU) and 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.
CPaaS Business
CPaaS Key
Operational & Financial Metrics
|
Q2
2022
|
H1
2022
|
Total
Customers
|
8,647
|
8,647
|
Net Revenues (BRL
MM)
|
139.4
|
285.1
|
Adjusted Gross
Margin
|
22.9 %
|
22.9 %
|
The population in Latin America
is highly connected and a heavy user of social media and social
networks. This leads companies to centralize the communication with
end customers through these digital channels, mainly WhatsApp and
Instagram, which are the most popular and widely used. Even though
SMS is still currently responsible for most of the CPaaS volume in
the region, WhatsApp and Instagram are growing at a much faster
pace.
To reach the population through multiple channels, companies
need to
- Use communications application programming interfaces (APIs),
to enhance customer engagement, notifications, service management,
marketing automation and business intelligence applications
- Apply real-time communications solutions that are easy to
create and scalable.
- Simplify the process of embedding programmable voice and
messaging applications, creating cost-effective and agile
enterprise cloud applications
According to IDC, Zenvia was the top CPaaS player in
Latin America by the end of 2021,
with 13% of market share. The CPaaS Latin American market is
expected to multiply by roughly 3x, reaching $3.1 billion in size and $3.5 billion in TAM by 2026. It means that
although the addressable market is expected to continue growing at
an accelerated pace, white space is limited. We expect to maintain
our leadership position.
Financial Results
Consolidated Revenue
Consolidated Revenue in Q2
2022 totaled BRL 203.9 million, up
50.3% YoY, reflecting solid organic growth and M&A gains.
During H1 2022, consolidated revenues amounted to R$401.5 million, up 55.4% YoY, and an organic
growth rate of 28.2%. This reflects a higher number of active
customers (+37% YoY) and strong growth of our SaaS business. The H1
2022 results fully consolidate D1 and SenseData acquisitions and
consider only two months of Movidesk, which jointly contributed
with BRL 70.4 million to our
consolidated net revenues.
Profitability
Adjusted Gross Profit increased
72.7% in the quarter to BRL 77.0
million, reflecting the strong revenue growth and improved
mix, while Adjusted Gross Margin expanded 500bps to 37.8%.
Sequentially, Adjusted Gross Margin was up 400bps due to the better
mix of SaaS services and the two-month contribution of Movidesk's
acquisition.
For H1 2022, Adjusted Gross Profit rose 84.3% to BRL 143.8 million, while Adjusted Gross Margin
expanded 570bps to 35.8%.
Non-GAAP Adjusted EBITDA in the first six months of the year was
negative BRL 22.7 million, including
higher R&D expenses and the earn-out expenses related to the
acquisitions of SenseData and Sirena. Excluding these expenses, our
Normalized EBITDA in H1 2022 was negative BRL 9.0 million.
Reiterating Guidance
|
|
FY 2022
Guidance
|
|
Revenue
(millions)(1)
|
|
BRL $875 -
$925
|
|
|
Y/Y Growth
|
|
43% -
51%
|
|
|
Organic Y/Y
Growth(2)
|
|
|
32% -
34%
|
|
|
CPaaS
Revenue
|
|
|
BRL $600 -
$620
|
|
|
SaaS
Revenue
|
|
|
BRL $275 -
$305
|
|
|
Adjusted Gross
Margin
|
|
35.0% -
36.0%
|
|
|
Y/Y
Expansion
|
|
2.7p.p. -
3.7p.p.
|
|
|
CPaaS Adj Gross
Profit
|
|
~22%
|
|
|
SaaS Adj Gross
Profit
|
|
~65%
|
|
|
|
|
|
|
|
|
|
Conference Call
The Company will host a webcast
on August 16, 2022, at 10:00 am EDT 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.
Click here to see our full Investor Day Video Presentation or go
to our investor relations website, in the events section, at the
following link:
https://investors.zenvia.com/news-events/company-events/
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 customer
communications through its unified end-to-end platform. ZENVIA
empowers companies to transform their existing customer
communications 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 communications 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
second quarter 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.
SELECTED FINANCIAL DATA
|
Q2
2022
|
H1
2022
|
|
2022
|
2021
|
Variation
|
2022
|
2021
|
Variation
|
|
(non-audited)
|
(non-audited)
|
(non-audited)
|
(non-audited)
|
|
(in thousands of
R$)
|
( %)
|
(in thousands of
R$)
|
( %)
|
Revenue
|
203,897
|
135,652
|
50.3 %
|
401,478
|
258,345
|
55.4 %
|
Cost of
services
|
-137,849
|
-94,186
|
46.4 %
|
-276,006
|
-186,586
|
47.9 %
|
Gross
profit
|
66,048
|
41,466
|
59.3 %
|
125,472
|
71,759
|
74.9 %
|
Selling and marketing
expenses
|
-30,771
|
-22,822
|
34.8 %
|
-56,190
|
-38,200
|
47.1 %
|
Administrative
expenses
|
-39,607
|
-14,467
|
173.8 %
|
-74,340
|
-47,189
|
57.5 %
|
Research and
development expenses
|
-15,883
|
-6,000
|
164.7 %
|
-29,193
|
-11,009
|
165.2 %
|
Allowance for credit
losses
|
-1,957
|
-1,656
|
18.2 %
|
-3,997
|
-3,246
|
23.1 %
|
Other income and
expenses, net
|
-11,826
|
-289
|
n.m.
|
-19,984
|
-181
|
n.m.
|
Operating
profit
|
-33,996
|
-3,768
|
802.2 %
|
-58,232
|
-28,066
|
107.5 %
|
Finance
costs
|
-17,860
|
-9,310
|
91.8 %
|
-31,478
|
-26,969
|
16.7 %
|
Finance
income
|
9,650
|
15,739
|
-38.7 %
|
21,550
|
18,665
|
15.5 %
|
Net finance
costs
|
-8,210
|
6,429
|
-227.7 %
|
-9,928
|
-8,304
|
19.6 %
|
Loss before income
tax and social contribution
|
-42,206
|
2,661
|
n.m.
|
-68,160
|
-36,370
|
87.4 %
|
Deferred income tax and
social contribution
|
10,936
|
-969
|
-1228.6 %
|
15,885
|
9,657
|
64.5 %
|
Current income tax and
social contribution
|
-703
|
-562
|
25.1 %
|
-723
|
-632
|
14.4 %
|
Loss for the
period
|
-31,973
|
1,130
|
n.m.
|
-52,998
|
-27,345
|
93.8 %
|
|
Q2
|
H1
|
2022
(non-audited)
|
2021
(non-audited)
|
2022
(non-audited)
|
2021
(non-audited)
|
(in thousands of
R$)
|
Net cash from (used in)
operating activities
|
29,843
|
18,225
|
13,422
|
-25,539
|
Net cash used in
investing activities
|
-311,519
|
-22,763
|
-319,423
|
-27,414
|
Net cash from (used in)
financing activities
|
959
|
-15,742
|
-135,207
|
68,031
|
Exchange rate change on
cash and cash equivalents
|
9,279
|
937
|
-20,864
|
1,412
|
Net (decrease)
increase in cash and cash equivalents
|
-271,438
|
-19,343
|
-462,072
|
16,490
|
(in thousands of
R$)
|
June 30,
2021
(non-audited)
|
December 31,
2021
(audited)
|
June 30,
2022
(non-audited)
|
Assets
|
|
|
|
Current
assets
|
216,850
|
766,059
|
309,142
|
Cash and cash
equivalents
|
76,469
|
582,231
|
120,159
|
Trade and other
receivables
|
99,798
|
142,407
|
150,792
|
Tax assets
|
8,602
|
15,936
|
25,840
|
Derivative and
Financial instruments
|
-
|
74
|
-
|
Prepayments
|
8,774
|
20,918
|
4,645
|
Other assets
|
2,207
|
4,493
|
7,706
|
Advances to
Acquisitions
|
21,000
|
-
|
-
|
|
|
|
|
Non-current
assets
|
287,172
|
1,077,790
|
1,581,499
|
Tax assets
|
138
|
112
|
170
|
Prepayments
|
2,224
|
2,271
|
3,097
|
Interest earning bank
deposits
|
-
|
7,005
|
7,509
|
Property, plant and
equipment
|
11,621
|
15,732
|
21,733
|
Intangible assets and
goodwill
|
273,189
|
1,050,357
|
1,532,490
|
Deferred Tax
Assets
|
-
|
2,276
|
16,415
|
Other Assets
|
-
|
37
|
85
|
|
|
|
|
Total
assets
|
504,022
|
1,843,849
|
1,890,641
|
(in thousands of R$)
|
June 30, 2021
(non-audited)
|
December 31, 2021
(audited)
|
June 30, 2022
(non-audited)
|
Liabilities
|
|
|
|
Current liabilities
|
242,527
|
429,883
|
418,165
|
Loans and
borrowings
|
43,521
|
64,415
|
68,906
|
Trade and other
payables
|
102,945
|
144,424
|
182,319
|
Liabilities from
acquisitions
|
68,281
|
176,069
|
100,791
|
Tax
liabilities
|
8,972
|
15,736
|
15,307
|
Employee
benefits
|
16,863
|
21,926
|
34,426
|
Lease
liabilities
|
1,118
|
2,220
|
2,203
|
Deferred
revenue
|
-
|
4,582
|
13,756
|
Taxes to be paid in
installments
|
-
|
511
|
457
|
Derivative and
Financial Instruments
|
827
|
-
|
-
|
|
|
|
|
Non-current liabilities
|
171,466
|
210,764
|
325,675
|
Liabilities from
acquisitions
|
27,917
|
60,220
|
191,199
|
Trade and other
payables
|
1,990
|
936
|
715
|
Loans and
borrowings
|
125,706
|
143,723
|
129,132
|
Lease
liabilities
|
1,125
|
2,038
|
3,662
|
Provisions for tax,
labor and civil risks
|
1,590
|
1,369
|
419
|
Deferred tax
liabilities
|
13,138
|
1,756
|
-
|
Taxes to be paid in
installments
|
-
|
722
|
548
|
|
|
|
|
Equity
|
90,029
|
1,203,202
|
1,146,801
|
Capital
|
6
|
957,523
|
957,524
|
Reserves
|
87,760
|
226,599
|
258,149
|
Translation
reserve
|
520
|
34,638
|
-
|
Accumulated
losses
|
1,743
|
(15,558)
|
(68,540)
|
Non-controlling
interests
|
-
|
-
|
(331)
|
Total equity and liabilities
|
504,022
|
1,843,849
|
1,890,641
|
|
Q2
|
H1
|
|
2022
(non-audited)
|
2021
(non-audited)
|
2022
(non-audited)
|
2021
(non-audited)
|
|
(in thousands of
R$)
|
Gross
profit
|
66,048
|
41,466
|
125,472
|
71,759
|
(+) Amortization of
intangible assets acquired from business combinations
|
10,969
|
3,142
|
18,377
|
6,284
|
Non-GAAP Gross
Profit
|
77,017
|
44,608
|
143,849
|
78,043
|
Revenue
|
203,897
|
135,652
|
401,478
|
258,345
|
Gross
margin
|
32.4 %
|
30.6 %
|
31.3 %
|
27.8 %
|
Non-GAAP Gross
Margin
|
37.8 %
|
32.9 %
|
35.8 %
|
30.2 %
|
|
Q2
|
H1
|
|
2022
(non-audited)
|
2021
(non-audited)
|
2022
(non-audited)
|
2021
(non-audited)
|
|
(in thousands of
R$)
|
EBITDA
|
-22,660
|
4,540
|
-24,743
|
-11,766
|
(+) Expenses related to
IPO grants
|
1,394
|
-5,044
|
2,035
|
1,951
|
Adjusted
EBITDA
|
-21,266
|
-504
|
-22,708
|
-9,815
|
|
Interest
(% p.a.)
|
June 30, 2022
|
December 31, 2021
|
June 30, 2021
|
(in thousands of R$)
|
Working
capital
|
From CDI +2.40%
to CDI + 5.46%
and Fixed
Between 8.60%
and 12.95%
|
153,038
|
163,138
|
169,227
|
Debentures
|
18.16 %
|
45,000
|
45,000
|
—
|
Total
|
|
198,038
|
208,138
|
169,227
|
View original
content:https://www.prnewswire.com/news-releases/zenvia-reports-q2-2022-results-301606050.html
SOURCE Zenvia