Zenvia, Inc. Class A ( (ZENV) ) has released its Q1 earnings. Here is a breakdown of the information Zenvia, Inc. Class A presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Zenvia Inc., a leading cloud-based customer experience solutions provider in Latin America, reported its Q1 2025 financial results, highlighting significant developments in its transition to the Zenvia Customer Cloud and strong revenue growth driven by its CPaaS segment.
In the first quarter of 2025, Zenvia’s revenue surged by 39% year-over-year to BRL 296 million, primarily fueled by a 58% increase in CPaaS revenues. The company is in the midst of a strategic transition towards the Zenvia Customer Cloud, which is expected to be completed by the end of the year. Despite the revenue growth, the company’s gross profit declined by 23.7% due to increased SMS costs that have not yet been passed on to clients.
Key financial metrics revealed a decrease in gross margins, with the Non-GAAP Adjusted Gross Margin dropping to 25.1% from 44.0% a year earlier. The company reported a Normalized EBITDA of BRL 20 million, reflecting a 15.1% decline from the previous year. Zenvia’s SaaS segment saw a modest revenue increase of 5%, driven by small and medium-sized businesses, while the CPaaS segment experienced a significant revenue boost, albeit with tighter margins.
Despite the challenges, Zenvia managed to reduce its general and administrative expenses by 24% year-over-year, bringing the G&A-to-revenue ratio down to 8.0%. This cost control, along with strategic investments, positions the company for improved profitability in the medium to long term.
Looking ahead, Zenvia’s management remains optimistic about the ongoing transition to the Zenvia Customer Cloud and the anticipated normalization of margins as SMS cost adjustments are gradually passed on to clients. The company is focused on strengthening its partner ecosystem and expects to see the benefits of its strategic initiatives in the coming quarters.