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Zenvia, Inc. Class A (ZENV)
:ZENV
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Zenvia
(NASDAQ:ZENV)
Rating:57Neutral
Price Target:
$1.50
▲(2.74% Upside)
Positive Factors
Revenue Growth
Top-line expansion is supported by growth in CPaaS, driven by a higher SMS volume, and in SaaS, with an increase in SMB customers.
Revenue Performance
ZENV posted a significant revenue increase of 39% YoY, surpassing the previous quarter's growth rate.
Negative Factors
Client Base Decline
The active client base fell by 2% QoQ with declines in both CPaaS and SaaS accounts.
EBITDA Performance
Normalized EBITDA missed estimates by 4% due to higher costs.
Net Income Loss
Net income showed a loss of BRL135m, impacted by non-recurring expenses and higher financial costs.
Zenvia (ZENV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.66M
Dividend YieldN/A
Average Volume (3M)32.28K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth9.04%
EPS Growth37.96%
CountryUS
Employees1,076
SectorTechnology
Sector Strength92
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)N/A
Shares Outstanding28,774,326
10 Day Avg. Volume22,860
30 Day Avg. Volume32,285
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.97
Price to Sales (P/S)0.78
P/FCF Ratio15.20
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit0.29
Enterprise Value/Ebitda-4.78
Forecast
1Y Price Target
$1.50Price Target Upside2.74% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 generates revenue primarily through a software-as-a-service (SaaS) model, offering subscription-based access to its communication platforms. Key revenue streams include fees from the use of its messaging services, voice communication tools, and chatbot solutions. The company also earns income from professional services, such as custom integrations and consulting, which help clients tailor Zenvia's solutions to their specific needs. Significant partnerships with telecom operators and technology providers enhance Zenvia's service offerings and expand its market reach, contributing to its overall earnings.
Zenvia Earnings Call Summary
Earnings Call Date:Jul 02, 2025
(Q1-2025)
| % Change Since: -3.31%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with significant revenue growth and cost reductions being overshadowed by challenges in profitability and margin pressure in key business segments.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Zenvia recorded a 39% increase in top-line revenue, reaching almost BRL 300 million, primarily driven by the CPaaS segment.
SaaS Revenue Increase
SaaS business revenue went up 5% year-over-year, driven by higher revenues from SMB customers, with the SaaS business representing 27% of total revenues.
Reduction in G&A Expenses
G&A expenses decreased by 24% year-over-year, reaching BRL 24 million, due to a 15% workforce reduction, resulting in significant cost savings.
EBITDA Performance
Normalized EBITDA totaled BRL 20 million, meeting expectations, and is expected to increase progressively over the year.
Franchise Model Success
The franchise model launched in Q1 with no partners now has over 30 contracted franchises, achieving the year's goal in the first half.
Negative Updates
Gross Profit Decline
Consolidated adjusted gross profit declined 21% to BRL 74 million, with a gross margin decrease of 25%, due to margin pressure in CPaaS and transition impacts in SaaS.
CPaaS Margin Pressure
Higher CPaaS mix due to strong volume growth with lower margins and increased SMS costs impacted profitability.
One-time Severance Costs
The company incurred approximately BRL 8 million in one-time severance costs related to workforce reduction.
SaaS Gross Margin Decrease
SaaS adjusted gross margin decreased by 2.7 percentage points to 54%, impacted by the transition to Zenvia Customer Cloud.
Company Guidance
During Zenvia's Q1 2025 earnings call, the company reported a significant 39% increase in top-line growth, reaching nearly BRL 300 million, primarily driven by the CPaaS segment. Despite this growth, the company faced margin pressure, resulting in a 21% decline in consolidated adjusted gross profit to BRL 74 million and a gross margin decrease of 25%. The CPaaS segment experienced a 58% revenue rise, constituting 73% of total revenues, while SaaS revenue increased by 5%, representing 27% of revenues. Zenvia's normalized EBITDA was BRL 20 million, aligning with expectations despite incurring BRL 8 million in severance costs. The company also reduced G&A expenses by 24% year-over-year to BRL 24 million, equating to 8% of revenues. The EBITDA minus CapEx metric remained stable, yielding a positive BRL 10 million inflow, while the cash balance stood at BRL 86 million. Looking forward, Zenvia aims to expand its Zenvia Customer Cloud across Brazil and Latin America, focusing on organic growth and deleveraging efforts, while also evaluating opportunities to divest non-core assets.Zenvia Financial Statement Overview
Summary
Zenvia demonstrates strong revenue growth and improved cash flows, but persistent net losses and declining profitability margins are major concerns. The company has managed to decrease its reliance on debt, improving financial stability. However, operational inefficiencies reflected in negative EBITDA margins and declining equity are risks. Strategic improvements in operational efficiency and profitability are necessary for sustained financial health.Income Statement
Zenvia shows strong revenue growth, with a consistent increase from $429.7M in 2020 to $1.042B in TTM (Trailing-Twelve-Months) 2025, demonstrating resilience. However, net income losses are concerning, with a negative trend from a $21.4M loss in 2020 to a $94.68M loss in TTM 2025. The gross profit margin has decreased from 24.16% in 2020 to 26.42% in TTM 2025, indicating profitability challenges. The EBIT margin is slightly positive at 1.03% in TTM 2025, a recovery from previous losses. EBITDA margin turned negative to -1.63% in TTM 2025, highlighting operational inefficiencies.67
Positive
Balance Sheet
Zenvia's equity ratio decreased from 25.48% in 2020 to 44.85% in TTM 2025, indicating improved equity financing. However, the debt-to-equity ratio improved from 0.88 in 2020 to 0.14 in TTM 2025, suggesting reduced reliance on debt. However, net losses impact return on equity, which is negative. The decrease in stockholders' equity from $1.20B in 2021 to $783M in TTM 2025 is a concern.55
Neutral
Cash Flow
Zenvia has shown positive free cash flow growth, rising from $28.83M in 2020 to $114.89M in TTM 2025, indicating strong cash generation. The operating cash flow to net income ratio is strong, reflecting efficient cash conversion despite net losses. However, cash flow from operations could be more robust, with fluctuations noted over the years.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 959.68M | 807.58M | 756.72M | 612.32M | 429.70M |
| Gross Profit | 275.57M | 294.77M | 330.54M | 288.91M | 180.91M | 103.83M |
| EBITDA | -16.96M | 30.89M | 72.24M | -131.48M | -6.89M | 3.37M |
| Net Income | -94.68M | -154.66M | -61.00M | -243.03M | -44.65M | -21.43M |
Balance Sheet | ||||||
| Total Assets | 1.75B | 1.74B | 1.71B | 1.80B | 1.84B | 452.85M |
| Cash, Cash Equivalents and Short-Term Investments | 86.13M | 116.88M | 63.74M | 108.40M | 582.23M | 59.98M |
| Total Debt | 108.74M | 129.68M | 90.60M | 171.65M | 212.40M | 101.73M |
| Total Liabilities | 963.47M | 972.14M | 822.62M | 850.88M | 640.65M | 337.51M |
| Stockholders Equity | 783.01M | 771.41M | 888.81M | 953.34M | 1.20B | 115.35M |
Cash Flow | ||||||
| Free Cash Flow | 114.89M | 49.28M | 106.89M | 58.76M | -116.67M | 28.83M |
| Operating Cash Flow | 128.03M | 107.77M | 162.55M | 108.45M | -97.26M | 46.14M |
| Investing Cash Flow | -60.34M | -62.62M | -53.90M | -349.78M | -351.05M | -61.59M |
| Financing Cash Flow | -53.60M | 9.11M | -143.77M | -215.84M | 935.03M | 62.05M |
Zenvia Technical Analysis
Neutral
1.46
Price Trends
1.46
Positive
1.50
Negative
1.68
Negative
Market Momentum
<0.01
Positive
49.90
Neutral
25.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZENV, the sentiment is Neutral. The current price of 1.46 is below the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.46, and below the 200-day MA of 1.68, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 25.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZENV.
Zenvia Risk Analysis
Zenvia disclosed 74 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 (69)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥233.80B | 14.87 | 7.64% | 2.58% | 9.19% | 5.65% | |
67 Neutral | $386.03M | 58.75 | 19.65% | ― | 27.84% | -13.78% | |
57 Neutral | $78.66M | ― | -10.57% | ― | 9.04% | 37.96% | |
56 Neutral | $59.74M | ― | -10.44% | ― | 16.93% | 85.85% | |
55 Neutral | $99.45M | ― | -6139.13% | ― | -63.86% | -364.20% | |
49 Neutral | $0.00 | ― | -121.54% | ― | 17.97% | 21.12% | |
42 Neutral | $48.40M | ― | -168.24% | ― | 230.96% | 91.63% |
* Technology Sector Average
Performance Comparison
ZENV
Zenvia
1.50
-0.16
-9.64%
JG
Aurora Mobile
9.95
6.77
212.89%
PAYS
PaySign
7.12
2.54
55.46%
REKR
Rekor Systems
1.10
-0.40
-26.67%
AUID
Ipsidy
3.60
-4.65
-56.36%
STEM
Stem Inc
11.91
0.93
8.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.