Zenvia's Q2 2025 Earnings Call Contradictions: CPaaS Margins, Consumer Cloud Growth, and Sales Cycles in Spotlight

The above is the analysis of the conflicting points in this earnings call

Date of Call: September 11, 2025

Financials Results

• Gross Margin: 24%, stable sequentially; pressured by higher CPaaS mix and carrier cost increases

Guidance:

• Maintain 2025 Zenvia Consumer Cloud (ZCC) revenue around BRL 200 million with ~25% growth and ~65–70% gross margin.
• ZCC H1 revenue up 23% YOY; trajectory on track for ~25% full-year growth.
• CPaaS gross margins expected to normalize near ~20% by Q4 2025 as carrier cost pass-through completes.
• Expect progressive EBITDA/profitability recovery through 2H25, returning to more normalized levels by year-end.
• Franchise channel early but growing (~15% of new MRR in Brazil) and expanding to LatAm.
• Evaluating selective divestments of noncore assets to accelerate deleveraging; no specifics or timeline provided.

Business Commentary:

* Zenvia Consumer Cloud Growth: - Zenvia Consumer Cloud revenues grew 23% in the first half of the year compared to the same period last year, accelerating from a 15% increase reported in Q1. - The growth is attributed to the ramp-up of the new core business, launched in October 2022, and positive adoption by both SMBs and enterprise customers.

• CPaaS Revenue and Margins:
• CPaaS revenues grew by 33%, with clients having higher margins, reaching 72% of total revenues.

• Market volatility and competitive pressure led to a sharp drop in CPaaS gross profit and margins, impacting consolidated adjusted gross profit, which fell to BRL 69 million.

• Cost Management and Efficiency:

• G&A expenses decreased by 27% to BRL 9 million compared to the same period last year.

• This reduction was primarily due to workforce reduction of approximately 15% announced in January, which is expected to result in full-year cost savings between BRL 30 million and BRL 35 million.

• Profitability Outlook and Strategic Focus:

• EBITDA for the quarter was BRL 11 million, below expectations, but the company projects a progressive recovery throughout the year.
• Zenvia's focus is on growing faster, scaling smarter, and deleveraging the company, with expectations of normalized profitability levels by year-end.

Sentiment Analysis:

• Strong top-line growth of 24% and ZCC ramp progressing, but consolidated adjusted gross profit fell to BRL 69M and gross margin to 24%; normalized EBITDA was BRL 11M, below expectations. Management expects CPaaS margins to normalize near 20% by Q4 and reaffirms ZCC 2025 targets (~BRL 200M revenue, ~65–70% GM) with improving profitability by year-end.

Q&A:

• Question from Unidentified Participant (Webcast): Can you add color on forward guidance for Zenvia Consumer Cloud—Q3/Q4 bookings, franchise channel, and whether you still expect ~BRL 200m revenue and 65–70% gross margin for 2025?
  Response: They reaffirm ZCC 2025 targets (~BRL 200m revenue, ~25% growth, ~65–70% GM) and say execution is on track.

• Question from Unidentified Participant (Webcast): Are CPaaS tight margins the new level, or should we expect a recovery?
  Response: Management expects margins to recover and normalize near ~20% by Q4 as carrier cost pass-through completes.

• Question from Unidentified Participant (Webcast): How are enterprise dynamics for Zenvia Consumer Cloud and the rest of SaaS?
  Response: ZCC is gaining enterprise adoption (beyond SMB focus) despite longer cycles, while CPaaS remains mature, high-volume and low-margin.

• Question from Unidentified Participant (Webcast): Provide color on cash flow and potential divestitures.
  Response: TTM normalized EBITDA is ~BRL 100m; after BRL 35–40m CapEx leaves ~BRL 60–65m for debt, near cash breakeven by year-end; assessing opportunistic asset sales to deleverage.

• Question from Unidentified Participant (Webcast): How should we think about a potential CPaaS divestment and valuation?
  Response: No specifics; historical CPaaS deals near ~1x revenue are context-dependent; any divestment would primarily target balance-sheet deleveraging.

• Question from Unidentified Participant (Webcast): What will the business look like in 2–3 years?
  Response: Shift toward an AI-powered CX SaaS core with stickier, recurring, higher-margin revenues and reduced volatility versus today.