Zenvia, Inc. Q3 FY2023 earnings call

• Completed integration of Movidesk in Q2 and is integrating SenseData's team/processes with completion expected in 2024. - Pursuing the One Zenvia vision to unify solutions into a unified customer experience platform. - Partnered with Google for Google Messages RCS, seeing potential in rich interactive content. - Delivered double-digit top line growth in SaaS and CPaaS while maintaining healthy margins. - EBITDA was BRL16.5 million in Q3 2023, marking the fifth consecutive quarter of positive EBITDA. - Disciplined execution of savings plan led to an 8.4% drop in nominal G&A expenses.

Total revenue for Q3 2023 was BRL219 million, a 21% year-over-year increase from a client base of 13,600. The SaaS business grew across all customer profiles. The CPaaS business saw growth driven by expanded SMS volumes with large enterprise customers. Gross profit was BRL83.9 million, down 3.1% year-over-year with a gross margin of 38.4%. In the first 9 months of 2023, SaaS gross profit was BRL134 million, up 13% year-over-year with a margin of nearly 64%. CPaaS had an annual recurring revenue of BRL232 million as of September.

• Full-year EBITDA guidance is on track, with YTD EBITDA totaling BRL55.7 million. - Q4 expected to boost revenue and positively impact EBITDA, continuing the trend of meeting guidance.

• Complex macroeconomic environment affecting the consulting business, with longer decision-making cycles for enterprise customers. - Volatility in CPaaS volumes due to it being a volume-based business. - Ongoing debt restructuring discussions with creditors and sellers' finance.

Q: Color on why SaaS customer number was lower quarter-over-quarter and net retention lower?

A: Impact related to consulting part with revenue churn from large clients, but pipeline recovery in Q3 and expected increase in Q4; number of clients lost not relevant in terms of revenue as SaaS revenue grew quarter-over-quarter and cross-selling opportunities remain with One Zenvia vision.