Zenvia (ZENV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 20% year-over-year to BRL 231 million, driven by large enterprise clients in both SaaS and CPaaS segments, with strong adoption of Zenvia Customer Cloud and GenAI chatbot solutions across Latin America.

• Margins remained within guidance despite a higher CPaaS revenue mix, and cost discipline led to historic lows in G&A as a percentage of revenue.

• Integration of acquired companies is nearing completion, with most products migrating to a unified platform by Q4 2024 and full rollout of Zenvia Customer Cloud expected by H1 2025.

• Focused on customer experience transformation with AI-enabled automation and actionable insights, with rapid adoption of generative AI chatbots across multiple sectors.

Financial highlights

• Q2 2024 net revenues reached BRL 231.2M, up 20% year-over-year; H1 2024 revenues at BRL 444M, up 19%.

• Non-GAAP adjusted gross profit rose 20% to BRL 100.2M in Q2 2024; gross margin stable at 43.3%.

• Normalized EBITDA surged 126% to BRL 33.7M in Q2 2024 and 150% to BRL 56.8M in H1 2024; LTM EBITDA at BRL 110M.

• G&A as a percentage of revenue dropped to 14.4% in Q2 2024 from 19.4% in Q2 2023, supporting EBITDA improvement.

• EBITDA minus CapEx turned positive, generating BRL 24M in H1 2024, with a projected BRL 80M for the full year.

Outlook and guidance

• FY 2024 guidance reiterated: revenue BRL 930–970M (+15–20% YoY), gross margin 42–45%, and EBITDA BRL 120–140M.

• Expects to start deleveraging the balance sheet in H2 2025 as EBITDA growth outpaces CapEx.

• Strategic priorities include organic expansion in Latin America, especially Argentina and Mexico, and accelerating growth.

• Anticipates further margin improvement as SaaS becomes a larger share of revenue and integration projects conclude.