ZENVIA Reports Q 1 2023 Results.

SAO PAULO: Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX platform in Latin America empowering companies to transform their customer journeys, today reported its operational and financial metrics for the first quarter of 2023.

Cassio Bobsin, Founder & CEO of ZENVIA, said: "Our strong results in the first quarter of 2023 are a testament of our intensified focus on profitability and the strength of our innovative SaaS platform. Our clients are already understanding the benefits of being able to concentrate their full customer journey with us. Increasing the cross-selling will be our utmost focus in 2023. Amid a still challenging macroeconomic environment, we continued delivering innovative solutions tailored to every stage of the customer journey."

Shay Chor, CFO & IRO of ZENVIA, said: "We are proud to announce our first quarter results for 2023 with strong profitability metrics, attesting our ability to navigate a complex economic environment while executing the savings plan initiated in July 2022. The correct balance between revenue growth and profitability led to a 38% growth in Gross Profit and EBITDA of BRL 24 million, which marks three quarters in a row of positive EBITDA. We have also been able to manage well our cash generation, which is allowing us to pay down more expensive debt and foresee lower funding gap for the remainder of the year."

Key Financial Metrics

Q1 2023

Q1 2022

YoY

Total Customers

13,292

12,400

7.2 %

Net Revenues (BRL MM)

179.0

197.6

-9.4 %

Non-GAAP Gross Profit (BRL MM)

92.5

66.8

38.3 %

Non-GAAP Gross Margin

51.6 %

33.8 %

17.8 p.p.

EBITDA(1) (BRL MM)

23.9

-7.6

n/m

Cash Balance (BRL MM)

159.0

391.6

-59.4 %

Operating Cash Flow(2) (BRL MM)

95.3

(46.6)

n/m

Normalized EBITDA for Q1 2022, which excludes non-cash impacts from earn-outs adjustments.

EBITDA (+/-) changes in working capital (-) capex.

Financial Highlights Q1 2023

Net Revenues down 9.4% YoY to BRL 179.0 million, mainly from lower SMS volumes given increasing focus on profitability in the CPaaS segment.

Non-GAAP Gross Profit of BRL 92.5 million, up 38.3% YoY, with non-GAAP Gross Margin expanding 17.8 p.p. to 51.6% due to a better revenue mix combined with stronger margins across all segments.

Total number of active customers reached 13.3k, comprised of 6.4k from SaaS and 7.4k from CPaaS.

Operating Cash Flow (OCF) of BRL 95.3 million due to positive EBITDA and better working capital management.

Our Segments

We report Revenue and non-GAAP Gross Profit broken down by SaaS and CPaaS. We believe this is the best way for all stakeholders to understand our business and growth levers.

SaaS Business

SaaS Key Operational & Financial Metrics

Q1 2023

Q1 2022

YoY

Total Customers

6,446

3,362

91.7 %

Net Revenues (BRL MM)

68.6

51.9

32.1...