Good morning and thank you for standing by. Welcome to Zenvia's conference call. Today's speakers are Mr. Kassio Bobson, Zenvia's founder and CEO, and Shai Shor, CFO and investor relations officer. Please be advised that today's conference is being recorded and a replay will be available on the company's IR website, where you can also access today's presentation. At this time, all participants are in listen-only mode. After the prepared remarks, there will be a question and answer session. For the Q&A session, we ask you to write down your question via the Q&A icon at the bottom of your screen. Your name will then be announced and will be able to ask your question live. At this point, a request to activate your microphone will appear on your screen. If you do not want to open your microphone live, please write NO MICROPHONE at the end of a question. In this case, our operator will read your question aloud. Now, I would like to welcome one of our speakers for today, Mr. Casio Bobsin, founder and CEO. Sir, the floor is yours.
Hello, everyone, and thank you for joining us today for this important announcement regarding our new strategic cycle. As you navigate an ever-evolving business landscape, strategic cycles play a critical role in shaping the direction and growth of companies. These cycles allow us to adapt to market changes, focus our resources, and position ourselves for long-term success. I'll start by quickly explaining how these strategic cycles have influenced our journey so far, the milestones we have achieved, and how this new cycle is designed to drive innovation, efficiency, and value creation for all stakeholders. Our mission since our reception 21 years ago has always been to revolutionize the experience customers have with companies and brands we recognize that we had three distinct strategic cycles so far in this mission and at this moment we are closing the third one and launching the fourth one we had our first cycle which was basically our startup phase after being born in a garage as an sms provider then evolved to the second cycle where we expanded our messaging capabilities and consolidated ourselves as the leading SMS broker in Brazil with a series of acquisitions the third and latest strategic cycle began in 2018 when we decided to evolve from a leading Brazilian CPaaS to become the most comprehensive CX SaaS in Latin America after a series of acquisitions held before and after our IPO of complementary companies which over the last years have reinforced our strategy and vision for the future we officially launched zainville customer cloud in 2024 zainville customer cloud is the combination of this vision and is now our core business moving forward now as of january 2025 we have entered our fourth strategic cycle centered on accelerating the growth of our newly defined core business let's dive in on zainville customer cloud on the next slide we're truly excited about zainville customer cloud and the immense potential it brings to our company. This platform represents a pivotal milestone in our commitment to enhancing customer experiences. Xenvia Customer Cloud is powered by AI-driven solutions and robust data analytics and is designed to adapt similarly to business of all sizes and across diverse industries. Clients already using it report enhanced customer engagement, increased sales and reduced costs. It is important to highlight here that the launch of Xenvia Customer Cloud was leveraged by two important and strategic initiatives, the use of product-led growth strategies and our international expansion in Latin America. Our product-led growth strategies empower users with flexible self-service access to our software, enabling them to start small, explore features at their own pace, and simply scale usage as their deeds evolve. this approach made possible through the integration of all services into a single unified platform ensures an intuitive and adaptive experience for businesses of all sizes by aligning perfectly with the needs of our clients it drives higher adoption rates fosters long-term customer relationships and creates a highly scalable revenue opportunity positioning xavia for sustainable growth in a highly dynamic market. Another key differentiator is our shift to a volume-based pricing model where clients pay based on the number of interactions they have with their clients and prospects rather than the traditional per-seat SaaS model. This approach is enabled by the extensive use of AI in our software which minimizes the reliance of human agents and has an efficiency for our clients and unlocks greater revenue generation potential for us with much less complexity. And our international expansion, particularly in Argentina and Mexico, where we already had a presence, is performing well and delivering results. These international clients are already delivering a solid contribution to the success of Zenvia Customer Cloud, further validating our strategy. The initial results we achieved in 2024, which I will share with you shortly, leave us energized and optimistic about opportunities that lie ahead this announcement today comes as the result of extensive analysis along with strategic planning and collaboration with our board as we work to develop this unified operating model it became clear that this new cycle will require a much higher level of efficiency to ensure its success even though we have been streamlining our operations and bringing down our gna as a percentage of revenues ratio throughout the last couple of years concentrating our efforts on the company's core meant establishing new pillars to shape zainvia that we aspire to become and need to be from now on in this new cycle this resulted in the difficult decision to lay off 15 percent of our workforce as we announced yesterday to ensure we enter this new cycle on a solid and sustainable foundation as we enter this important new strategic cycle we are laser focused on driving organic growth by leveraging our unified platform and marketing opportunities evolving and accelerating our partnership ecosystem boosting profitability through smarter operations and efficiency while reducing leverage to strengthen our foundation foundation at the same time we're committed to building the optimal capital structure to support our ambitions and to ensure long-term resilience these combined efforts position us to unlock meaningful sustainable value and deliver solid returns to our shareholders as we move forward in our journey i'll now hand the call over to shy to present some of the numbers we already have from the platform.
Thank you, Cassio. Good morning, everyone. Thanks for joining us at Search and Art Notice. This slide number four brings a snapshot of our new core business, Zenvia Customer Cloud. We are pleased with what we achieved in 2024, especially considering that we were in soft launch mode from March to October, when we officially launched Zenvia Customer Cloud. We estimate that we closed 2024 with almost 6,000 companies already using the platform, out of which 20% outside Brazil, mainly from Latin countries, generating revenues close to 200 million reais. This client base is a mix of existing clients who transition seamlessly to Zenvia Customer Cloud and new clients acquired throughout the year. In terms of growth, we estimate that this operation will expand by 25 to 30 percent in 2025, achieving a gross margin between 68 and 70 percent and a positive EBITDA margin. Our estimates are based on encouraging numbers from these first nine months of operations, which are in line with solid data, showing that the addressable market is set to keep growing at a strong double-digit pace in the coming years. On top of that, our new unified operating model with advanced automation and AI puts us in a great position to make the most of these opportunities. Let's move to the next slide to talk about the next steps. We remain committed to streamlining operations to enhance our efficiency. The headcount reduction announced is projected to generate cost savings of 30 to 35 million reais in 2025, even after accounting for severance expenses as a means to sharpen our focus on our core business and drive the expansion of our ecosystem we'll carefully evaluate opportunities to divest on core assets we believe we own assets that hold significant value in their segments and an opportunistic divestment could play a key role in optimizing our capital structure to wrap up as we embark on a new strategic cycle where laser focus on expanding Xavier customer cloud in Brazil and Latin America our priorities are accelerating organic growth while continuing to leverage the company. We are confident that these actions will result in a more efficient company with exceptionally solid business metrics, enabling us to unlock significant value to our shareholders. Once again, we appreciate your continued trust as we move ahead. With this, we conclude our prepared remarks and are ready to take your questions.
We will now begin the question and answer session. Once again, for this Q&A session we ask you to write down your question via the Q&A icon at the bottom of your screen. Your name will then be announced and be able to ask your question live. At this point, a request to activate your microphone will appear on your screen. If you prefer not to open your microphone live, please write no microphone at the end of your question and our operator will read your
question aloud. Hugo, while we wait for online questions, I'll get some on the written webcast
here castro can you elaborate more on charging per interaction versus seat do you see any
execution risk on this approach yeah sure uh everybody that is uh studying the sas industry as a whole understands that there's a movement going on of migrating for per seat charging to another model and basically that happens because as companies leverage users of AI it reduces the amount of human users or agents that are required for each process that's not of course not a short-term trend but a medium to long term trend and at Sanvia we as we are preparing who actually were prepared for this future we launched as a customer cloud already adopting a new business model that replaces the traditional model of per seat charging for a per interaction charging and that means that companies as they start using our software they started using small from a single use case and as they leveraged most of their adoption using our ai tools were able to capture value from these new business model even though they are not necessarily increasing the number of human agents but if they increase the number of ai agents were able not only to monetize that but of course bring innovation for these companies and that's working pretty well since we launched the first features the first agents and ai based features that is working uh you know amazing way that's why we expect that being a leader in this transition for the industry will be a very good opportunity for us thanks
um another one here in your past statement you talk about the divestment of non-core assets with your current switch to sas would that include your cpa segment if not what would you consider non non-core um so i'll take this one um everything that is not um related to the xavier customer cloud or not uh we're not able to migrate to the xavier customer cloud is what we call non-core. And that includes the CPAS. But I would highlight one important thing here is that we believe that even though we consider some assets to be non-core, we understand that they have value, they have solid metrics, and therefore, divesting from them means that it would have to generate value to shareholders meaning the valuation is what we would believe to be and also help the leveraging balance sheet if this is not the case we'll continue executing and operating even though we consider them non-core another question here curious what is the best way to think about the business moving forward are cpass and stuff still going to be reported separately how in the customer cloud cannibalizing revenues from that and what might count as non-core assets under the new strategic direction uh cassio i think it's uh if you can just talk about the cannibalization of revenues and i'll
take the rest sure uh the numbers the number one members are mentioned uh on the zenvia customer cloud doesn't account any kind of overlap with cpass these are clear numbers of zenvia customer cloud customers so we have no uh actually uh cannibalization in that sense what we have and we always have are customers being encouraged to adopt more software and that's why we focused on the ideal customer profile that they've been using sms to start using the customer cloud and we got interesting traction from these customers hence when we are projecting our growth we're looking for a customer cloud customers per se but not any kind of new migration from customers coming from CPaaS, that's why we understand that all these operations are now healthy in their own ways.
And on the reporting, we will continue reporting for the time being CPaaS and SaaS separately, the way we've been reporting. Obviously, that as we focus more in the near future on the Xenver Customer Cloud, we expect at some point to start reporting that. But I would say as of now, it's too early to give a timing, an exact timing on when we are going to start reporting separately. So at this point, you should expect CPS and SaaS to continue being reported the way we've been doing for the next couple of quarters.
Another question here.
You mentioned in previous quarters that early metrics for Xenvia Customer Cloud were very encouraging, and the engagement was five to ten times that of normal customers.
Do you have any update on this?
I don't know, Cassio, if you want to share some early metrics on the Zenvia Customer Cloud.
Yeah, sure. I don't have any new numbers to disclose at this moment. We'll be glad to disclose more metrics over the course of time as we are going to put Zenvia Customer Cloud as our core. Of course, we're going to be able to share some more data. But on general terms, we've been keeping the same kind of engagement that's why we're very very optimistic on the on the growth of the customer cloud especially as we combine a sales driven approach with a product-led growth approach which is performing pretty well which meaning customers that start using the software they buy themselves they explore experiment they explore new features they start using they go into production and then they are able to leverage more revenues as they upsell they generate more interactions they use more ai based features and so forth and so on so we've been the same uh kind of engagement going on with these new cohorts and then the customers that would be migrating from former solutions are also now benefiting from these uh new capabilities which encourage us to to do this boat movement and we're very happy to do because we are seeing the very interesting foundations for the future we're building for Zenvia I'll keep going here do you have any
timeline for asset monetization and are there any plans to divest non-customer cloud SaaS solutions um so we don't have any timeline for asset monetization at this point uh we are sharing with uh with you guys uh the plan uh we don't have anything specific to be discussed or shared in terms of uh divestment right now uh so it's too too early to discuss uh this uh these moves And as I previously mentioned, everything that is not Zenvia customer cloud related is up for discussion. But again, I'll highlight that we see value on those assets and it has to create and to generate value to shareholders when we are, if and when we are to discuss any divestment. Cassio can you tell us what client segments will Zenvia focus on as an example SMB enterprise what
the focus of the company sure we're mainly focus with Zenvia customer cloud at B2C companies and these companies are from a variety of industries we've been serving customers from finance retail insurance tech companies services education so it's a it's very diversified in terms of verticals what is common between all these companies is they are serving lots of end customers
you officially announced customer cloud service in october this year does it mean that your guidance provided today on cloud revenue would be for two for only if so are you expecting to increases revenue by 25 on a year basis um so uh let let me just uh explain uh so we'll we soft launch this in the customer cloud uh on march 24 and officially launched uh october 24 so when we when we say nine months uh is considering the soft launch uh from march um basically when we talk about the estimation our estimated revenues between 180 and 200 million reais uh for the customer cloud that includes uh revenues for the entire 2024 year uh so since uh since the launch
on on on march and to complement on that uh the numbers we're disclosing here for the customer cloud are a combination of new newly acquired customers the courts were acquired 2020 24 plus customers that we migrated from former solutions the standalone solutions from the companies we acquired so this is a combination we have a couple of thousand coming from each end that's why we disclose the combination of these two that are now uh our example
customer cloud customers do you feel you have enough of a core in your customer cloud product at this point to grow and win share organically or do you expect to support your strategic plan
with additional mna we definitely don't need mna to grow in the customer cloud we have uh pretty much what we aimed in our strategic cycle a couple years ago which is an end-to-end journey from marketing to sales to customer support to customer retention and engagement we have ai we have automation we have multi-channel approach we have several different tools combined to provide a fully end-to-end solution to our customers that's why we don't need acquisitions to uh grow uh and majorly that's the main i would say that's the main reason we're very excited about what we built um the numbers are getting very interesting in that sense so uh we really are seeing that we're able to compete not only in brazil but also internationally it's been pretty interesting to see all that happening throughout it for that's why we entered
2025 with very good expectations a follow-up here uh cassio on on this question how do you see your
positioning outside brazil sure uh as we've been testing on the last two to three years uh expression across latin america we prepared the india customer cloud to be a very competitive product for the region uh so as we uh deployed as in the customer clouds to these uh countries outside of brazil we have been performing pretty well of course as always there's uh some adjustments that we do for each country uh but as we finish those adjustments we see that it's a very competitive solution so we are structuring our company for growth not only in brazil but
also internationally what are your expectations uh aside in the consumer cloud for 2025 will you be providing any guidance so traditionally we provide guidance for a full year when we report q4 and we expect to do the same this year so as we report q4 which we expect to early april we will be providing guidance for 2025. are there any synergies lost in zenvia customary
cloud from the spin-off of the cps business if it's the case we don't see any loss of synergies as we possibly have the possibility of spinning off cpass as as in the customer cloud is a natural multi-channel solution we have partnerships for every different distinct channel to terminate and actually reach the end user and in the case that we spin off the cpass business we will do the same for the channels that are provided from these business units with the spin-off operation
for any other partner Hugo can you report to see if there are any other last questions sure Shaya
again if you have a question please use the Q&A icon at the bottom of your screen to write it down and we'll open your microphone if you prefer not to open your microphone please write no microphone at the end of a question. And our operator will read your question aloud.
Hugo, I think we got another one. Any commentary on the funding gap? How does the company looking for 2627 payout with the cost savings generated from the restructuring? So, obviously, the cost saving uh helps a lot just to put into perspective uh we are talking about between 30 to 35 million reais in 25 and that compares with the uh ebitda 24 that we provided guidance of between 120 and 140 so it is a sizable uh saving um we don't see uh any uh issues with the long medium and long term funding gap as as we are looking to divestment again uh if it's uh a creative to shareholders uh and can be used to the leverage balance sheet uh that's one scenario uh the other scenario is that uh with uh improved uh ebitda as as we've been discussing uh that will naturally lead to the leverage balance sheet it's just that organically it takes slightly longer than than and if we can divest from ethics.
I don't see any further questions here, Igor.
Okay. This concludes our Q&A session. I would like to turn the conference back over to Mr. Cassio Bobsin for his closing remarks.
Well, thanks everybody for joining us at this conference called. This movement is a very important one for Xenvia. It closes a long-term strategic cycle, started in 2018 when we intended to expand our portfolio to a customer experience SaaS and we're very proud to be executing these over the last seven years and we reached a point where we understand we're able to finish the cycle in order to start a new one it's a very important moment for Zenvia as we outline what will be this new cycle and that's a very important not only a step but an outline of the future for Zenvia for our customers for our shareholders we're very excited for what the future brings us and it will be very interesting to join and to share with all you guys our next steps and see you on the next one thank you thank you very much the conference
has now concluded Xenvia's IR area is at your disposal to answer any additional questions thank you for attending today's presentation you may now disconnect have a nice day