Zenvia (ZENV) Q3 2024 earnings summary

Executive summary

• Achieved double-digit growth in both revenue and profitability in Q3 and 9M 2024, with record-high quarterly EBITDA in three years and strong cash flow generation.

• Completed strategic transformation from CPaaS to a comprehensive customer experience SaaS, culminating in the launch of Zenvia Customer Cloud, an AI-powered unified CX platform, in October 2024.

• Streamlined operations led to a notable year-over-year reduction in G&A expenses as a percentage of revenue.

Financial highlights

• Q3 2024 revenue reached BRL 284.4 million, up 30% year-over-year; 9M 2024 revenue was BRL 728.2 million, up 23%.

• Q3 2024 EBITDA reached BRL 41.2 million, up 153% year-over-year, and 9M 2024 EBITDA totaled BRL 98.1 million, up 151% year-over-year; LTM EBITDA at BRL 135.2 million.

• Q3 2024 Non-GAAP Adjusted Gross Profit was BRL 102.5 million (+22% YoY), with Non-GAAP Adjusted Gross Margin at 36.0% (-2.3p.p. YoY).

• SaaS Q3 2024 revenue was BRL 87.6 million (+16% YoY); CPaaS Q3 2024 revenue was BRL 196.8 million (+37% YoY); SaaS accounted for 49% and CPaaS for 51% of 9M 2024 revenue.

• Q3 2024 Net Income was BRL 52.4 million, including a BRL 43.8 million non-cash derivative gain; excluding this, Net Income was BRL 8.7 million.

Outlook and guidance

• Reiterated FY 2024 guidance: revenue of BRL 930–970 million (15–20% YoY growth), Non-GAAP Adjusted Gross Margin of 42–45%, and Normalized EBITDA of BRL 120–140 million.

• Q4 CPaaS revenue expected to be slightly below Q3 due to non-recurring volumes; SaaS growth expected to continue.

• Guidance for 2025 to be provided early next year.

• Plans to accelerate organic growth, continue deleveraging, and expand in Latin America.