Zenvia (ZENV) AI Stock Analysis

• Market Cap: $86.52M
• Dividend Yield: N/A
• Average Volume (3M): 101.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 20.38%
• EPS Growth: 71.64%
• Country: US
• Employees: 1,076
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Infrastructure
• EPS (TTM): -0.09
• Shares Outstanding: 28,774,326
• 10 Day Avg. Volume: 117,375
• 30 Day Avg. Volume: 101,142
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.60
• Price Target Upside: -3.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ―

Zenvia's overall score reflects strong technical momentum and a positive earnings call that improves future prospects. However, the company faces challenges with profitability and valuation, as indicated by a negative P/E ratio and ongoing net losses. The solid balance sheet and cash flow improvements provide stability, while technical indicators suggest potential price appreciation.

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 Business Overview & Revenue Model

Company Description

Zenvia 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 Money

Zenvia 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.

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.

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.

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
102.66M	63.74M	108.40M	582.23M	59.98M	12.34M
	Total Assets
1.85B	1.71B	1.80B	1.84B	452.85M	248.98M
	Total Debt
120.18M	90.60M	171.65M	212.40M	101.73M	70.64M
	Net Debt
17.52M	26.86M	71.41M	-369.83M	41.75M	58.30M
	Total Liabilities
960.64M	822.62M	850.88M	640.65M	337.51M	149.65M
	Stockholders Equity
885.62M	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

• Technical Analysis Sentiment: Positive
• Last Price: 1.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZENV, the sentiment is Positive. The current price of 1.65 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.45, and below the 200-day MA of 1.68, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 85.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZENV.

Zenvia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYS	75 Outperform	$295.49M	49.68	18.82%	―	26.77%	-13.24%
ZENV	64 Neutral	$86.52M	―	-18.19%	―	20.38%	71.64%
JG	63 Neutral	$65.36M	―	-10.44%	―	16.93%	85.85%
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%
REKR	51 Neutral	$136.97M	―	-121.54%	―	17.97%	21.12%
STEM	50 Neutral	$69.84M	―	-6139.13%	―	-63.86%	-364.19%
AUID	47 Neutral	$65.47M	―	-168.24%	―	230.96%	91.63%