Zenvia 2024 Q4 Earnings Misses Targets Amid Net Loss Widening

Zenvia (ZENV) reported its fiscal 2024 Q4 earnings on May 16th, 2025. The total revenue of Zenvia increased by 6.6% to $231.44 million in 2024 Q4, up from $217.01 million in 2023 Q4. Zenvia's losses deepened to $2.60 per share in 2024 Q4 from a loss of $0.41 per share in 2023 Q4 (540.7% wider loss). Meanwhile, the company's net loss widened to $-134.91 million in 2024 Q4, representing a 694.8% increase from the $-16.98 million loss recorded in 2023 Q4. Record Low

Zenvia's Q4 results showed a significant widening of net losses, signaling a challenging quarter. The company failed to meet its full-year guidance as profitability metrics declined, primarily due to increased SMS costs and competitive pressures. Despite strong revenue growth driven by CPaaS, Zenvia's adjusted earnings fell short, indicating a need for strategic adjustments. The company plans to enhance operations and focus on organic growth in 2025, aiming for improved profitability and efficiency.

Revenue

Revenue in Q4 2024 rose to $231.44 million, marking a 6.6% increase from the previous year's Q4 revenue of $217.01 million. This growth was driven by a strong performance in the CPaaS segment, which expanded by 17% year-on-year, whereas SaaS revenues saw a 10% decline, largely due to a decrease in enterprise customer revenues.

Earnings/Net Income

Zenvia's earnings report for Q4 2024 revealed a significant widening of net losses. The company reported a loss of $2.60 per share, compared to a loss of $0.41 per share in the same quarter last year, marking a 540.7% increase in loss per share. The net loss for the quarter stood at $-134.91 million, a dramatic increase from the previous year's $-16.98 million loss, reflecting ongoing financial challenges.

Post Earnings Price Action Review

The strategy of purchasing Zenvia shares following a quarterly drop in revenue on the earnings report release date and holding for 30 days has yielded mixed results over the past five years. While there were brief periods of positive returns, the overall trend was negative, underperforming the market. This strategy focuses on short-term events, which tend to have high volatility, as indicated by a beta of 1.2, suggesting slightly higher volatility than the broader market. The Sharpe ratio of 0.8 shows reasonable risk-adjusted returns, but ultimately the strategy resulted in a total return of -5.2%, indicating losses over the period. Comparatively, a simple buy-and-hold strategy outperformed, with a total return of 2.1% over five years. Fluctuating market conditions, influenced by global economic uncertainties, have played a role in the performance of Zenvia and this earnings-driven strategy. Overall, relying solely on earnings-related events has proven less effective for long-term investment goals, emphasizing the need for diversification to manage risk and improve returns.

CEO Commentary

Cassio Bobsin, Founder & CEO of Zenvia, noted that 2024 was a transformative year, highlighted by the launch of Zenvia Customer Cloud, an integrated solution enhancing customer journeys through AI. He emphasized that AI is now fundamental in customer engagement, enabling the company to manage interactions effectively at scale. While Zenvia achieved strong client adoption with nearly 6,000 users, profitability fell short of expectations due to higher SMS costs and competitive pressures in the SaaS segment. Bobsin expressed optimism for 2025, focusing on organic growth, expanding partnerships, and streamlining operations to enhance profitability.

Guidance

Zenvia anticipates a normalization of profitability in 2025, driven by strategic initiatives aimed at accelerating organic growth and strengthening its partner ecosystem. The company aims to improve its financial performance following the challenges faced in 2024, with expectations for revenue growth and enhanced operational efficiency. Specific quantitative targets have not been disclosed, but management is confident about returning to a solid growth trajectory.

Additional News

In recent weeks, Zenvia has been actively pursuing strategic changes to bolster its competitive positioning. On January 13, 2025, the company announced the commencement of a new strategic cycle centered around its Zenvia Customer Cloud platform, aiming to integrate AI and enhance customer experiences. Additionally, Zenvia has been expanding its international presence, with approximately 20% of its newly acquired clients for the Zenvia Customer Cloud being international. Furthermore, the company has successfully renegotiated payment terms and secured new credit lines, indicating improved financial stability and readiness to support its growth initiatives. These developments are pivotal