Zenvia Inc. Q3 FY2024 earnings call

• Launch of Zenvia Customer Cloud in October 2024 as a milestone in evolving from CPaaS to comprehensive CX SaaS. - Streamlined operations led to year-over-year reduction in G&A expenses as percentage of revenues, positively impacting EBITDA. - Focus on organic growth, enhancing profitability, reducing leverage, and unlocking sustainable value for shareholders. - Investing in integration of SaaS solutions, leveraging Zenvia Customer Cloud for top-line growth and moving towards a full SaaS model with monthly subscriptions.

In Q3 2024, both CPaaS and SaaS segments saw double-digit growth. CPaaS revenues grew 37% in Q3, reaching almost BRL200 million, with nine-month revenues at BRL485 million. The SaaS business grew 16% in Q3, driven by SMBs, with nine-month revenues up 15% year-over-year. In Q3, consolidated adjusted gross profit was BRL102 million, with BRL50 million from SaaS and BRL52 million from CPaaS. SaaS margin was 58% and CPaaS margin was 26%, with SaaS margin down due to enterprise impact. CPaaS contributed more to revenue mix due to one-off factors, but focus was on converting volumes to EBITDA without extra G&A.

• Reiterating 2024 guidance, EBITDA expected within BRL120 million to BRL140 million. - Q4 CPaaS revenue expected slightly below Q3 due to non-recurring volumes, while SaaS expected to grow similarly or better than Q3. - Focus on continuing to deliver results in 2024, with planning for 2025 ongoing but not yet detailed.

• Competitive environment in SaaS enterprise segment putting pressure on profitability. - Seasonality in Q4 revenues, with CPaaS likely affected by non-recurring volumes not repeating in Q4.

Q: How should we think of quarter-over-quarter PET for CPaaS and SaaS in Q4?

A: CPaaS revenue in Q4 expected slightly below Q3 due to non-recurring volumes, while SaaS expected to grow similarly or better than Q3.

Q: How deep is AI embedded in products and can you charge more for AI capabilities?

A: There are about six or seven AI features, including co-piloting for sales and support, automation of customer experiences, and analysis of past interactions. Monetization is through volumes on customer interactions, not token-based, leveraging AI to create unique offerings.