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Zenvia (ZENV)
NASDAQ:ZENV
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Zenvia
(NASDAQ:ZENV)
64Neutral
Positive Factors
Financial Performance
Normalized EBITDA of BRL41m expanded from BRL16m in 3Q23.
Product Innovation
Zenvia launched its 'Zenvia Customer Cloud', a new product suite with AI-solutions, and noted early adopters report incremental benefits.
Negative Factors
Client Base
Client base was impacted by subscriber clean-up that resulted in a -15% QoQ decline in CPaaS active accounts and -5% in SaaS accounts.
Zenvia (ZENV) vs. S&P 500 (SPY)
Market Cap
$81.74M
Dividend YieldN/A
Average Volume (3M)113.84K
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth20.38%
EPS Growth71.64%
CountryUS
Employees1,076
SectorTechnology
Sector Strength51
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.25
Shares Outstanding28,069,050
10 Day Avg. Volume49,959
30 Day Avg. Volume113,845
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.68
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.00Price Target Upside26.58% Upside
Rating ConsensusHold
Number of Analyst Covering0
Zenvia Business Overview & Revenue Model
Company DescriptionZenvia Inc. develops a cloud-based platform that enables organizations to integrate several communication capabilities in Brazil, Mexico, and Argentina. It offers communication channels for businesses to engage or interact with their customers, such as SMS, Voice, WhatsApp, Facebook Instagram, Webchat, Messenger, rich communication service (RCS), and video; and communication solutions comprising SaaS for communication between businesses and end-consumers, such as marketing campaigns, sales teams' management, customer service and engagement, and customer success. The company also provides Zenvia Chat, a customer service platform that manages different communication channels in a single environment; Zenvia Message, a campaign manager to trigger RCS, SMS, and WhatsApp messages; Sirena, a solution for sales teams to communicate with customers through WhatsApp; and SenseData, a solution that uses advanced techniques to integrate and analyze large volumes of customer data, creating a unique 360º view of the customers and generating insights. In addition, it offers Zenvia Flow, a visual flow builder that allows customers to create communication and/or automation flows; Jornadas solution for enterprise clients to communicate with their customers through various digital channels and generate data-rich documents; and ALTU, the conversational automation solution for larger companies to solve their customer needs with automated yet humanized service through artificial intelligence. The company's platform assists customers in various use cases comprising marketing campaigns, customer acquisition, customer onboarding, warnings, customer services, fraud control, cross-selling and customer retention, ticket resolution, consumer health, and others. Zenvia Inc. was incorporated in 2020 and is based in São Paulo, Brazil.
How the Company Makes MoneyZenvia makes money primarily through a subscription-based revenue model, where businesses pay for access to its communication platform and services based on usage and selected features. The company generates revenue through its core offerings of messaging services and customer experience solutions. These include charges for the volume of messages sent, subscription fees for its software solutions, and additional fees for premium services and integrations. Significant partnerships with telecommunications providers and technology partners enhance Zenvia's service offerings, contributing to its earnings by expanding its market reach and capability to deliver comprehensive communication solutions.
Zenvia Financial Statement Overview
Summary
Zenvia exhibits positive revenue growth and improved gross margins, yet struggles with profitability as seen in its negative net income. The balance sheet is strong with low leverage, offering financial stability. Cash flow metrics are improving, suggesting potential for better future profitability, but current losses remain a significant concern.Income Statement
The company shows a positive revenue growth trend with a 17% increase from the previous year. Gross profit margins have improved to 38.9%, indicating better cost management. However, the net profit margin remains negative at -5.4% due to ongoing losses, which is a concern for profitability. EBIT margin is low at 1.7%, though EBITDA margin is healthier at 11.0%, suggesting some operational leverage.58
Neutral
Balance Sheet
The debt-to-equity ratio is low at 0.14, indicating conservative leverage, which is good for financial stability. The equity ratio is robust at 48.0%, showing a strong equity base relative to total assets. However, return on equity is negative due to net losses, highlighting profitability challenges.65
Positive
Cash Flow
Operating cash flow is positive, showing improvement, and the free cash flow has grown by 279% from the previous year. The operating cash flow to net income ratio is strong, indicating efficient cash generation despite net losses. The free cash flow to net income ratio also supports this efficiency in cash management.62
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 945.26M | 807.58M | 756.72M | 612.32M | 429.70M | 354.04M | Gross Profit |
| 367.56M | 330.54M | 288.91M | 180.91M | 103.83M | 93.25M | EBIT |
| 16.42M | -10.71M | -288.99M | -107.07M | -23.57M | 19.75M | EBITDA |
| 104.41M | 72.24M | -131.48M | -6.89M | 3.37M | 36.07M | Net Income Common Stockholders |
| -50.95M | -61.00M | -243.03M | -44.65M | -21.43M | 13.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 12.34M | 63.74M | 108.40M | 582.23M | 59.98M | 12.34M | Total Assets |
| 0.00 | 1.71B | 1.80B | 1.84B | 452.85M | 248.98M | Total Debt |
| 0.00 | 90.60M | 171.65M | 212.40M | 101.73M | 70.64M | Net Debt |
| 12.34M | 26.86M | 71.41M | -369.83M | 41.75M | 58.30M | Total Liabilities |
| 0.00 | 822.62M | 850.88M | 640.65M | 337.51M | 149.65M | Stockholders Equity |
| 99.34M | 888.81M | 953.34M | 1.20B | 115.35M | 99.34M |
| Cash Flow | Free Cash Flow | ||||
| 40.57M | 106.89M | 58.76M | -116.67M | 28.83M | 16.96M | Operating Cash Flow |
| 75.77M | 162.55M | 108.45M | -97.26M | 46.14M | 26.45M | Investing Cash Flow |
| -69.23M | -53.90M | -349.78M | -351.05M | -61.59M | -9.93M | Financing Cash Flow |
| -20.05M | -143.77M | -215.84M | 935.03M | 62.05M | -54.86M |
Zenvia Technical Analysis
Negative
1.58
Price Trends
2.12
Negative
1.88
Negative
1.90
Negative
Market Momentum
-0.17
Negative
38.45
Neutral
36.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZENV, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 2.12, and below the 200-day MA of 1.90, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 36.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZENV.
Zenvia Risk Analysis
Zenvia disclosed 73 risk factors in its most recent earnings report. Zenvia reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zenvia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $81.74M | ― | -6.45% | ― | 20.38% | 71.64% | |
63 Neutral | $15.79B | ― | -1.24% | ― | 7.32% | 88.51% | |
62 Neutral | $2.28B | ― | -2.21% | ― | 14.44% | 84.58% | |
60 Neutral | $2.44B | ― | 16.58% | ― | 8.99% | 63.84% | |
60 Neutral | $432.22M | ― | -2.14% | ― | 24.52% | 61.08% | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% | |
51 Neutral | $294.99M | ― | -40.78% | ― | -2.23% | 19.48% |
* Technology Sector Average
Performance Comparison
ZENV
Zenvia
1.58
-0.57
-26.51%
EGHT
8X8
2.24
-0.46
-17.04%
RNG
RingCentral
28.07
-7.01
-19.98%
FIVN
Five9
30.87
-31.37
-50.40%
TWLO
Twilio
106.27
44.00
70.66%
BAND
Bandwidth
15.26
-3.17
-17.20%
Zenvia Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 1.28% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant achievements such as the launch of Zenvia Customer Cloud and strong financial performance, despite some challenges in margin pressures and non-recurring revenue impacts.Highlights
Launch of Zenvia Customer Cloud
The official launch of Zenvia Customer Cloud in mid-October marks a significant milestone in Zenvia's evolution from a CPaaS platform to a comprehensive customer experience SaaS in Latin America.
Strong Financial Performance
Zenvia reported solid financial performance with double-digit growth in both top line and profitability. EBITDA reached BRL 41 million in Q3, growing almost threefold compared to the same period last year.
CPaaS Revenue Growth
CPaaS revenues grew 37% reaching an all-time high of almost BRL 200 million, driven by opportunistic one-off volumes.
Reduction in G&A Expenses
Year-over-year reduction in G&A expenses as a percentage of revenues, contributing to a more than doubling of EBITDA.
Improvement in EBITDA Minus CapEx
EBITDA minus CapEx improved by BRL 52 million compared to the previous year, now positive at almost BRL 50 million for the first 9 months of 2024.
Decrease in Net Debt to EBITDA Ratio
Net debt to EBITDA ratio improved from over 10x to 2.2x by the end of September 2024.
Lowlights
Lower SaaS Margins
SaaS margins decreased by 330 basis points year-over-year due to competitive pressures and increased infrastructure costs.
Enterprise SaaS Segment Underperformance
The enterprise portion of the SaaS segment experienced new sales below expectations, putting pressure on profitability.
Impact of One-off CPaaS Volumes
Q3 results included non-recurring CPaaS volumes that are not expected to repeat in Q4, indicating potential volatility in revenue.
Company Guidance
During Zenvia's Q3 2024 earnings call, management highlighted several key metrics that illustrate the company's performance and strategic progress. The introduction of Zenvia Customer Cloud in October marked a pivotal milestone in their transition from a CPaaS platform to a comprehensive CX SaaS provider, driving a 16% increase in SaaS revenues for the quarter, largely fueled by SMB adoption. The CPaaS segment also saw a 37% growth, reaching nearly BRL 200 million, attributed to non-recurring, opportunistic volumes. Despite a CPaaS margin of 26% and a 58% margin for SaaS, the overall adjusted gross margin dipped to 36% due to these volume dynamics. Zenvia reported a significant improvement in EBITDA, which rose to BRL 41 million, nearly tripling from the previous year, and a year-to-date EBITDA of BRL 98 million, up 150% from the same period last year. Management remains committed to organic growth and enhancing profitability, with a year-to-date reduction in G&A expenses to 13% of revenues from 17% previously. Zenvia's leverage improved, with net debt to EBITDA reduced from over 10x to 2.2x, and the company expects further positive cash flow impacts from their LatAm expansion and continued operational efficiency.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.