Zenvia (ZENV) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 39% year-over-year to BRL 296 million, mainly driven by 58% CPaaS growth and 5% SaaS growth, with SaaS gains led by SMBs.

• Adjusted gross profit declined 21% to BRL 74 million, with gross margin dropping to 25% due to margin pressure from CPaaS mix, higher SMS costs, and SaaS transition impacts.

• Expense control led to a 24% year-over-year reduction in G&A, including BRL 8 million in severance costs from a 15% workforce reduction in January.

• Profitability was impacted by newly acquired CPaaS clients, ramp-up of Zenvia Customer Cloud, and delayed SMS cost pass-through.

• Net income for the period was BRL 3.7 million, reversing a BRL 55.9 million loss in Q1 2024.

Financial highlights

• CPaaS revenue increased 58% year-over-year to BRL 215.2 million, now representing 73% of total revenue, but with non-GAAP adjusted gross margin dropping to 14.3%.

• SaaS revenue rose 5% year-over-year to BRL 80.7 million, accounting for 25–27% of total revenue, with non-GAAP adjusted gross margin at 53.7%, down 2.7 percentage points.

• Adjusted gross profit from SaaS was flat at BRL 43 million.

• G&A expenses fell 24% year-over-year to BRL 24 million, now 8% of revenue.

• Cash balance at quarter-end was BRL 86.1 million, up 21% year-over-year.

Outlook and guidance

• No formal full-year guidance provided due to volatility, but CPaaS expected to remain strong, with some deceleration in Q2.

• Zenvia Customer Cloud projected to accelerate, targeting 25%-30% growth for 2025, with full transition expected by year-end.

• EBITDA is expected to increase progressively, with recurring EBITDA for Q2 estimated at BRL 25-30 million.

• SMS cost increases are expected to be gradually passed on to clients during 2025, normalizing margins.

• Strategic focus remains on organic growth, partner ecosystem expansion, and Latam growth.