Zenvia Inc. (ZENV) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ZENV

Zenvia Inc.'s recent performance was driven by strong CPaaS revenue growth, which fueled the company's full-year top line. Strict expense control measures, including a 4% point reduction in G&A as a percentage of revenues, contributed to improved profitability. The company's announcement of a new strategic cycle for 2025 suggests a focus on innovation and growth, potentially positioning Zenvia for continued success. Additionally, the company's cloud-based CX platform has been gaining traction in Latin America, empowering companies to transform their customer journeys.

1.c. Company Highlights

Last Price	1.21
Change Percentage	4.04%
Open	1.19
Previous Close	1.16
Market Cap ( Millions)	63
Volume	11755
Year High	3.03
Year Low	1.02
M A 50	1.33
M A 200	1.48

FCF Yield	21.54%
Dividend Yield	0.00%
ROE	-15.16%
Debt / Equity	12.98%
Net Debt / EBIDTA	-198.84%
Price To Book	0.45
Price Earnings Ratio	-2.79
Price To FCF	4.64
Price To sales	0.31
EV / EBITDA	-12.46

2. Zenvia's Q2 2025 Earnings: Revenue Growth Amidst Margin Pressures

Zenvia reported a 24% revenue growth in Q2 2025, driven by its CPaaS and Zenvia Customer Cloud segments. However, the company faced margin pressures, with adjusted gross profit declining to BRL 69 million, representing a 24% margin. The earnings per share (EPS) came in at 0.01, beating estimates of -0.12622. The revenue growth was largely driven by CPaaS, which grew 33% YoY, and Zenvia Customer Cloud, which saw a 23% growth in H1 2025.

Publication Date: Sep -21

                                    📋 Highlights
                                    Revenue Growth::
                                                24% increase driven by CPaaS (33% YoY) and Zenvia Customer Cloud (23% H1 2025), though CPaaS expansion pressured gross margins.
Gross Profit Decline::
                                                Consolidated adjusted gross profit fell to BRL 69 million (24% margin), with CPaaS margins dropping below 20% due to carrier cost pressures.
EBITDA & Cost Efficiency::
                                                Normalized EBITDA at BRL 11 million, supported by 27% G&A cost reduction to BRL 48 million (8.3% of revenue), streamlining operations.
Zenvia Customer Cloud Momentum::
                                                80% higher usage in Q2, with 15% of new MRR from franchise model; targeting 25-30% annual growth and 65-70% SaaS margins.
Strategic Shift::
                                                Planning CPaaS divestiture to focus on Zenvia Consumer Cloud, aiming for 20%+ CPaaS margin recovery by Q4 2025 as cost pressures ease.

                                

Segment Performance

The CPaaS segment, which accounts for 72% of total revenue, faced competitive pressures, leading to margin compression. However, Zenvia Customer Cloud saw an 80% increase in usage in Q2, with 15% of new monthly recurring revenue (MRR) coming from its franchise model. The SaaS segment's gross profit rose 5% to BRL 45 million, representing a 55% margin.

Strategic Focus

Zenvia is focusing on scaling its Zenvia Customer Cloud, optimizing operations through AI, and evaluating non-core asset divestitures to strengthen profitability and deleverage its balance sheet. The company expects CPaaS margins to stabilize near 20% by Q4 as cost pressures ease. According to the CFO, the company is analyzing asset divestment opportunities to deleverage its balance sheet and strengthen its capital structure.

Valuation Metrics

With a P/E Ratio of -3.68, P/B Ratio of 0.44, and P/S Ratio of 0.33, the market is pricing in a challenging growth trajectory. The EV/EBITDA ratio stands at -21.81, indicating a potentially undervalued stock. The company's ROE is -11.61%, and ROIC is 1.76%, suggesting room for improvement in profitability.

3. NewsRoom

Zenvia (NASDAQ:ZENV) Shares Down 0.8% – Time to Sell?

Dec -02

Source: defenseworld.net

Zenvia Inc. (NASDAQ:ZENV) Short Interest Down 29.2% in October

Nov -03

Source: defenseworld.net

Short Interest in Zenvia Inc. (NASDAQ:ZENV) Increases By 62.7%

Oct -22

Source: defenseworld.net

ZENVIA welcomes Piero Rosatelli as CFO & IRO

Sep -15

Source: prnewswire.com

Zenvia Inc. (ZENV) Q2 2025 Earnings Call Transcript

Sep -11

Source: seekingalpha.com

ZENVIA Reports Q2 2025 Results

Sep -10

Source: prnewswire.com

ZENVIA sets agenda for second quarter 2025 results

Aug -29

Source: prnewswire.com

Zenvia Inc. (ZENV) Q1 2025 Earnings Call Transcript

Jul -03

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.86%)

6. Segments

Communications Platform as a Service

Expected Growth: 8.5%

Zenvia's Communications Platform as a Service (CPaaS) growth is driven by increasing demand for omnichannel customer engagement, digital transformation, and cloud adoption. The 8.5% growth rate is also fueled by the rising need for businesses to enhance customer experience, improve operational efficiency, and leverage AI-powered chatbots and messaging solutions.

Software-as-a-Service

Expected Growth: 9.5%

Zenvia's 9.5% growth in Software-as-a-Service is driven by increasing demand for cloud-based solutions, expansion into new markets, and strategic partnerships. The company's focus on customer experience, innovative product offerings, and efficient cost structure also contribute to its growth. Additionally, the rising adoption of digital transformation initiatives by enterprises fuels the demand for Zenvia's SaaS solutions.

7. Detailed Products

Zenvia Communication Platform

A cloud-based communication platform that enables businesses to send and receive messages, make voice and video calls, and exchange files with customers and teams.

Zenvia Chat

A conversational AI-powered chatbot that helps businesses automate customer support, sales, and marketing interactions.

Zenvia SMS

A messaging service that enables businesses to send and receive SMS, MMS, and RCS messages to customers and teams.

Zenvia Voice

A cloud-based voice communication service that enables businesses to make and receive voice calls, and integrate with CRM systems.

Zenvia WhatsApp Business API

A WhatsApp Business API solution that enables businesses to communicate with customers on WhatsApp, and integrate with CRM systems.

Zenvia Messaging Studio

A visual interface for designing, building, and deploying conversational flows and chatbots.

8. Zenvia Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Zenvia Inc. operates in a niche market with few substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Zenvia Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative solutions.

Bargaining Power Of Suppliers

Zenvia Inc. has a diverse supplier base, which reduces the bargaining power of suppliers, giving the company more negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry and the availability of resources in the industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the industry, leading to a competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	9.25%
Debt Cost	13.77%
Equity Weight	90.75%
Equity Cost	13.77%
WACC	13.77%
Leverage	10.19%

11. Quality Control: Zenvia Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

SolarWinds

A-Score: 5.6/10

Value: 3.9

Growth: 3.8

Quality: 8.5

Yield: 3.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

Fonix Mobile

A-Score: 5.4/10

Value: 3.0

Growth: 6.9

Quality: 8.2

Yield: 7.5

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

PaySign

A-Score: 4.9/10

Value: 3.4

Growth: 6.4

Quality: 7.9

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

Payoneer Global

A-Score: 4.6/10

Value: 4.8

Growth: 9.0

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

CI&T

A-Score: 4.5/10

Value: 7.7

Growth: 6.0

Quality: 5.9

Yield: 0.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

Zenvia

A-Score: 3.7/10

Value: 8.7

Growth: 3.0

Quality: 4.4

Yield: 0.0

Momentum: 4.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-13.35%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

13.77%

Zenvia Inc. - KYG9889V1014

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ZENV

1.c. Company Highlights

Cheaper

Strong Momentum

Average Quality

Earnings Miss

Lower Quality

Lower Growth

More Volatile

Earnings Beats

Revenues Beats

Revenues Miss

Weak Momentum

2. Zenvia's Q2 2025 Earnings: Revenue Growth Amidst Margin Pressures

Segment Performance

Strategic Focus

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.86%)

6. Segments

Communications Platform as a Service

Expected Growth: 8.5%

Software-as-a-Service

Expected Growth: 9.5%

7. Detailed Products

Zenvia Communication Platform

Zenvia Chat

Zenvia SMS

Zenvia Voice

Zenvia WhatsApp Business API

Zenvia Messaging Studio

8. Zenvia Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Zenvia Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.21$

Current Price

1.21$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA