Technology

ZENVIA Reports Q3 2024 and 9M 2024 Results

Published

1 year ago

November 19, 2024

Double-digit growth in both top-line and profitability, with strong EBITDA and Cashflow

LTM Normalized EBITDA of BRL 135.2 million, on track to meet 2024 guidance

Official launch of Zenvia Customer Cloud in October 2024

SÃO PAULO, Nov. 18, 2024 /PRNewswire/ — Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX solution in Latin America empowering companies to craft personal, engaging and fluid experiences throughout the customer journey, today reported its operational and financial metrics for the third quarter and nine months of 2024.

Cassio Bobsin, Founder & CEO of ZENVIA, said: “The highlight this quarter was the conclusion of the strategic plan we initiated back in 2018, that allowed us to officially launch the Zenvia Customer Cloud, a significant milestone in our commitment to enhancing customer relationships through practical, AI-driven solutions. Early adopters have already seen improvements in lead quality, conversion rates, and customer satisfaction, demonstrating the immediate value of this technology. At the same time, this launch is the foundation stone for Zenvia’s CX SaaS strategy for the next five years. Alongside this milestone, we have made strides in streamlining our operations and becoming more efficient, resulting in a notable YoY reduction in G&A expenses as a percentage of revenue. The rollout of Zenvia Customer Cloud and our increased operational efficiency together reflect our focus on enabling more informed and personalized customer interactions while delivering value both to our clients and shareholders.”

Shay Chor, CFO & IRO of ZENVIA, said: “This quarter, we accelerated our organic expansion with double-digit growth in both revenue and profitability. We were able to capitalize on unique temporary revenue opportunities in our CPaaS segment, while in the SaaS segment we saw significant growth with SMBs. At the same time, the combination of stronger revenues and strict expense control resulted in our highest quarterly EBITDA in three years, putting us on track to meet our full year guidance. Last but not least, we continue to take advantage of working capital opportunities to ensure EBITDA is converted into cash.”

Key Financial Metrics (BRL MM and %)

Q3 2024

Q3 2023

YoY

9M 2024

9M 2023

YTD

Revenues

284.4

218.6

30.1 %

728.2

590.6

23.3 %

Gross Profit

89.8

70.9

26.6 %

258.2

220.3

17.2 %

Gross Margin

31.6 %

32.5 %

-1.1p.p.

35.5 %

37.3 %

-2.1p.p.

Non-GAAP Adjusted Gross Profit(1)

102.5

83.8

22.3 %

296.3

259.5

14.2 %

Non-GAAP Adjusted Gross Margin(2)

36.0 %

38.3 %

-2.3p.p.

40.7 %

43.9 %

-3.2p.p.

Operating Income/Loss (EBIT)

17.9

-6.8

n.m

18.2

-26.1

n.m

Adjusted EBITDA(3)(5)

41.2

15.7

162.7 %

87.8

38.4

128.8 %

Normalized EBITDA(4)(5)

41.2

16.3

153.1 %

98.1

39.0

151.3 %

Income/Loss of the Period

52.4

-11.9

n.m

(19.7)

(43.8)

-54.9 %

Cash Balance

102.7

116.5

-11.9 %

102.7

116.5

-11.9 %

Net Cash Flow from (used in) Operating Activities

56.6

16.1

252.3 %

61.9

148.4

-58.3 %

Total Active Customers(6)

12,152

13,624

-10.8 %

12,152

13,624

-10.8 %

(1)

For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below.

(2)

We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.

(3)

For a reconciliation of our Adjusted EBITDA to Loss for the Period, see Selected Financial Data section below.

(4)

For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below.

(5)

In December 2023, the Company identified that the allowance for expected credit losses and cost with amortization of intangibles was understated. The calculation was reassessed in the annual financial statements and Management has retrospectively revised the first six months of 2023 for comparison purposes.

(6)

We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer. The consolidated number of Total Active Customers doesn’t reflect the sum of SaaS and CPaaS Clients, as there is cross selling between them.

Highlights Q3 2024

Revenues totaled BRL 284.4 million, up 30% when compared to BRL 218.6 million in Q3 2023 as a result of both SaaS (+16%) and CPaaS (+37%) YoY expansion. CPaaS saw abnormally high temporary volumes with certain customers, while SaaS grew mainly from small and medium businesses.Non-GAAP Adjusted Gross Profit of BRL 102.5 million was up 22% YoY, while Non-GAAP Adjusted Gross Margin was down by 2.3 percentage points landing at 36.0%. This decrease is mainly due to:

(i) Higher CPaaS mix in the period due to the specific one-off volumes, which were opportunistic for revenue. We don’t expect this same volume level in Q4 2024.
(ii) Lower SaaS margins due to tighter margins from enterprises, which continue to reflect a very competitive environment, more than offsetting the better small and medium business mix.

Total active customers were 12.2k, being 6.4k from SaaS and 6.0k from CPaaS. As mentioned last quarter, this YoY decrease reflects a client-base cleanup which took place in Q2 2024.Normalized EBITDA was positive BRL 41.2 million in the quarter, up 153.1% from Q3 2023, benefiting from higher revenues and strict expense control. This was our highest quarterly EBITDA in three years.Cash Balance of BR 102.7 million, a sequential increase of BRL 13.3 million as a direct result of our focus on cash preservation without jeopardizing our sustainable growth, including the continued use of working capital instruments.On October 15, Zenvia announced the official launch of Zenvia Customer Cloud, its comprehensive AI-powered solution designed to transform the customer experience by integrating solutions across all customer journey stages—from marketing and sales to service and relationship management. The Zenvia Customer Cloud allows companies to manage customer interactions across multiple channels, including WhatsApp, email, SMS, and apps, within a single, centralized platform. This unified approach streamlines processes, reducing the need for multiple software solutions, while increasing productivity through intelligent automation. The platform leverages AI-enabled automation to enhance productivity and efficiency, positioning Zenvia for strong, profitable growth while providing deeper insights into customer behavior.

Highlights 9M 2024

Revenues totaled BRL 728.2 million, up 23% when compared to BRL 590.6 million in 9M 2023 as a result of both SaaS (+15%) and CPaaS (+28%) YoY expansion.Non-GAAP Adjusted Gross Profit of BRL 296.3 million was up 14% YoY while Non-GAAP Adjusted Gross Margin was down 3.2 percentage points YoY to 40.7%, due to a higher mix of CPaaS in revenues, combined with lower margins with large enterprises in the SaaS business and an increase in infrastructure costs related to the final phase of the integration of acquired companies.Normalized EBITDA was positive BRL 98.1 million in the period, up 151% from 9M 2023, which is in line with our expectations and on track to deliver the full year guidance of BRL 120 million to BRL 140 million.

SaaS Business

SaaS Key Operational & Financial Metrics
(BRL MM and %)

Q3 2024

Q3 2023

YoY

9M 2024

9M 2023

YTD

Revenues

87.6

75.3

16.3 %

243.2

211.4

15.0 %

Gross Profit

37.9

33.1

14.5 %

98.1

95.2

3.1 %

Gross Margin

43.3 %

44.0 %

-0.7p.p.

40.3 %

45.0 %

-4.7p.p.

Non-GAAP Adjusted Gross Profit(1)

50.6

46.0

10.0 %

136.2

134.4

1.3 %

Non-GAAP Adjusted Gross Margin(2)

57.7 %

61.0 %

-3.3p.p.

56.0 %

63.6 %

-7.6p.p.

Net Revenue Expansion (NRE)

110 %

102 %

8.0p.p.

110 %

102 %

8.0p.p.

Total Active Customers(3)

6,427

6,780

-5.2 %

6,427

6,780

-5.2 %

(1)

For a reconciliation of the Non-GAAP Adjusted Gross Profit of our SaaS business segment to Gross Profit of our SaaS business segment, see Selected Financial Data section below.

(2)

We calculate Non-GAAP Adjusted Gross Margin of our SaaS business segment as Non-GAAP Gross Profit of our SaaS business segment divided by revenue of our SaaS business segment.

(3)

Our SaaS business Revenue went up 16% YoY in Q3 2024 to BRL 87.6 million from BRL 75.3 million in Q3 2023, primarily from small and medium sized customers. Year-to-date, the increase was similar, of 15%.

It is worth noting that new clients are now onboarded directly to the Zenvia Customer Cloud, enhancing value not only on channel options but also by leveraging SaaS solutions.

Q3 2024 Non-GAAP Adjusted Gross Profit was up 10% YoY to BRL 50.6 million from BRL 46.0 million, primarily driven by higher-margin SMBs. Despite this, Non-GAAP Adjusted Gross Margin from SaaS went down 3.3 percentage points to 57.7%, as we saw tighter margins from large enterprises amid continued fierce competitive market dynamics in this segment.

Year-to-date, while our Non-GAAP Adjusted Gross Profit went up 1.3%, our Non-GAAP Adjusted Gross Margin was down 7.6 percentage points, mainly from the same impact of large enterprises with lower margins coupled with the increased infrastructure costs related to the final integration phase of the acquired companies.

CPaaS Business

CPaaS Key Operational & Financial Metrics
(BRL MM and %)

Q3 2024

Q3 2023

YoY

9M 2024

9M 2023

YTD

Revenues

196.8

143.3

37.4 %

485.1

379.2

27.9 %

Non-GAAP Adjusted Gross Profit(1)

51.9

37.8

37.2 %

160.1

125.1

28.0 %

Non-GAAP Adjusted Gross Margin(2)

26.4 %

–

33.0 %

–

Total Active Customers(3)

6,053

7,248

-16.5 %

6,053

7,248

-16.5 %

(1)

For a reconciliation of the Non-GAAP Adjusted Gross Profit of our CPaaS business segment to Gross Profit of our CPaaS business segment, see Selected Financial Data section below.

(2)

We calculate Non-GAAP Adjusted Gross Margin of our CPaaS business segment as Non-GAAP Gross Profit of our CPaaS business segment divided by revenue of our CPaaS business segment.

(3)

We define an active customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an inactive customer.

We recorded abnormally high volumes from large enterprise customers in the CPaaS business in this third quarter, in line with the trend we saw in Q2 2024. While we consider this to be temporary and do not expect it to continue into the fourth quarter, it was an opportunistic move to our top line.

The segment reported Net Revenues of BRL 196.8 million in Q3 2024, up 37% YoY, while Non-GAAP Adjusted Gross Profit increased at a similar rate to BRL 51.9 million from BRL 37.8 million in Q3 2023. Non-GAAP Adjusted Gross Margin was flat at 26.4%, when compared to Q3 2023.

Year-to-date, our CPaaS business reported Net Revenues of BRL 485.1 million, up 28% YTD, with our Non-GAAP Adjusted Gross Profit increasing at a similar rate, leading to a flat Non-GAAP Adjusted Gross Margin of 33.0%, when compared to the same period last year.

Regarding Total Active Customers, as we mentioned in the last quarter, the YoY decrease was primarily due to the clean-up and removal held in Q2 2024 of smaller CPaaS clients who were not generating revenue. These moves reflect our focus on retaining customers that contribute with revenues and EBITDA generation, as attested by the more than 30% increase in both CPaaS top line and Non-GAAP Adjusted Gross Profit in this quarter. It is also worth noting the sequential increase in total CPaaS active customers to 6,053 in Q3 2024 from 5,506 in Q2 2024, also leveraged by the primary onboarding of new SMB customers to Zenvia Customer Cloud.

Consolidated Financial Result Analysis

Revenue
In this quarter, consolidated revenues were positively impacted by both segments, but especially by CPaaS which recorded higher-than-expected volumes that were opportunistic for revenue and cash balance. This resulted in a higher share of CPaaS in the revenue mix, of 69.2% in Q3 2024 compared to 65.5% in Q3 2023.

These effects are reflected in the 37% increase in CPaaS Non-GAAP Adjusted Gross Profit, accompanied by a 10% increase in SaaS Non-GAAP Adjusted Gross Profit, which jointly brought the Consolidated Non-GAAP Adjusted Gross Profit up 22%.

Looking at our consolidated Non-GAAP Adjusted Gross Margin, it declined 2.3 percentage points year-over-year to 36.0% in Q3 2024 from 38.3% in Q3 2023. As we always explain, a higher CPaaS mix impacts margins, but this quarter we also saw lower margins from some enterprise customers in SaaS and the impact on cost of services from the increase in infrastructure costs tied to the final phase of acquired companies’ integration.

Nonetheless, Adjusted EBITDA in Q3 2024 was positive BRL 41.2 million, compared to BRL 15.7 million in Q3 2023. The combination of higher revenues, stricter expense control and operating efficiencies allowed our EBITDA to multiply by 2.6 times in the period, reaching the highest quarterly level of the last three years. Year-to-date, our G&A Expenses went down to BRL 95.2 million, or -3.4% YoY, which led the G&A as a percentage of revenues to 13.1%, a 3.6 percentage point decrease from the 16.7% reported in the same period of 2023. When compared to two years ago, right before we started our streamlining efforts, this decrease was of 5.4 percentage points, from 18.5%.

Normalized EBITDA, which excludes the earn-outs and non-recurring events, amounted to BRL 98.1 million in 9M 2024, which compares to BRL 39.0 million in the same period of 2023. As a result, our LTM Normalized EBITDA reached BRL 135.2 million at the end of September 2024, putting us on track to meet our 2024 guidance.

Net Income in Q3 2024 amounted to BRL 52.4 million, an increase of BRL 64.3 million from Q3 2023. This includes a positive non-cash impact of BRL 43.8 million in Financial Income as a result of the mark-to-market of a derivative instrument related to the equity raise made by Cassio Bobsin in Q1 2024. Excluding this impact, we estimate Net Income would be positive at BRL 8.7 million, mostly due to the strong operating results.

Reiterating FY 2024 Guidance

FY 2024 Guidance

Revenue

BRL$930 – $970 million

Y/Y Growth

15% – 20%

Non-GAAP Adjusted Gross Margin

42% – 45%

Normalized EBITDA

BRL$120 – $140 million

Conference Call
The Company’s senior management team will host a webcast to discuss the results and business outlook on Tuesday, November 19, 2024, at 10:00 am ET. To access the webcast presentation, click here.

Additional information regarding Zenvia can be found at https://investors.zenvia.com.

Contacts

Investor Relations

Caio Figueiredo

Fernando Schneider

ir@zenvia.com

Media Relations – FG-IR

Fabiane Goldstein – (954) 625-4793 – fabi@fg-ir.com

About ZENVIA
Zenvia (NASDAQ: ZENV) is a technology company dedicated to creating a new world of experiences. It focuses on enabling companies to create personalized, engaging and fluid experiences across the entire customer journey, all through its unified, multi-channel customer cloud solution. Boasting two decades of industry expertise, over 13,000 customers and operations throughout Latin America, Zenvia enables businesses of all segments to amplify brand presence, escalate sales, and elevate customer support, generating operational efficiency, productivity and results, all in one place. To learn more and get the latest updates, visit our website and follow our social media profiles on LinkedIn, Instagram, TikTok and YouTube.

Forward-Looking Statements
The preliminary quarter and year-to-date operating results set forth above are based solely on currently available information, which is subject to change. These preliminary operating results constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Zenvia’s control. Zenvia’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: our ability to innovate and respond to technological advances, changing market needs and customer demands, our ability to successfully acquire new businesses as customers, acquire customers in new industry verticals and appropriately manage international expansion, substantial and increasing competition in our market, compliance with applicable regulatory and legislative developments and regulations, the dependence of our business on our relationship with certain service providers, among other factors.

SELECTED FINANCIAL DATA
The following selected financial information are preliminary, unaudited and are based on management’s initial review of operations for the third quarter of 2024.

Income Statement

2024

2023

Variation

2024

2023

Variation

(non-audited)

(restated)

(non-audited)

(restated)

(in thousands of R$)

( %)

(in thousands of R$)

( %)

Revenue

284,449

218,597

30.1 %

728,244

590,563

23.3 %

Cost of services

-194,639

-147,662

31.8 %

-470,042

-370,293

26.9 %

Gross profit

89,810

70,935

26.6 %

258,202

220,270

17.2 %

Selling and marketing expenses

-28,075

-29,252

-4.0 %

-81,435

-81,501

-0.1 %

General and administrative expenses

-30,602

-29,696

3.1 %

-95,165

-98,491

-3.4 %

Research and development expenses

-12,514

-14,898

-16.0 %

-41,381

-40,011

3.4 %

Allowance for expected credit losses

-4,559

-2,654

71.8 %

-11,454

-24,631

-53.5 %

Other income and expenses, net

3,812

-1,237

-408.2 %

-10,594

-1,773

497.5 %

Operating gain (loss)

17,872

-6,802

-362.7 %

18,173

-26,137

-169.5 %

Financial expenses

-32,649

-19,885

64.2 %

-137,782

-55,734

147.2 %

Finance income

62,962

8,520

639.0 %

70,434

15,132

365.5 %

Financial expenses, net

30,313

-11,365

-366.7 %

-67,348

-40,602

65.9 %

Income/Loss before taxes

48,185

-18,167

-365.2 %

-49,175

-66,739

-26.3 %

Deferred income tax and social contribution

7,335

7,323

0.2 %

37,429

26,962

38.8 %

Current income tax and social contribution

-3,071

-1,013

203.2 %

-7,998

-4,019

99.0 %

Income/Loss for the period

52,449

-11,857

-542.3 %

-19,744

-43,796

-54.9 %

Income/Loss attributable to Company Owners

52,621

-11,943

-540.6 %

-19,798

-44,008

-55.0 %

Non-controlling interests

172

-86

-300.0 %

-54

-212

-74.5 %

Balance Sheet

December 31, 2023

(audited)

September 30, 2024

(non-audited)

(in thousands of reais)

Assets

Current assets

250,331

342,601

Cash and cash equivalents

63,742

102,662

Trade and other receivables

148,784

195,882

Recoverable assets

28,058

29,585

Prepayments

5,571

5,755

Other assets

4,176

8,717

Non-current assets

1,461,233

1,503,868

Restricted cash

6,403

6,072

Prepayments

1,109

561

Other assets

Deferred tax assets

91,971

129,400

Property, plant and equipment

14,413

19,685

Intangible assets

1,347,327

1,323,744

Judicial deposits

–

24,396

Total assets

1,711,564

1,846,469

December 31, 2023

(audited)

September 30, 2024

(non-audited)

Liabilities

Current liabilities

607,374

691,498

Trade and other payables

353,998

437,435

Loans, borrowings and Debentures

36,191

69,855

Liabilities from acquisitions

134,466

100,994

Employee benefits

50,085

49,081

Tax liabilities

18,846

17,969

Lease liabilities

2,056

1,769

Deferred revenue

11,547

14,325

Taxes to be paid in installments

185

Non-current liabilities

215,243

269,142

Liabilities from acquisitions

160,237

179,750

Loans, borrowings

51,605

47,072

Provisions for tax, labor and civil risks

1,721

–

Lease liabilities

752

1,484

Employee Benefits

615

1,961

Derivative financial instruments

–

38,599

Taxes to be paid in installments

313

276

Equity

888,947

885,829

Capital

957,525

1,007,522

Reserves

247,464

215,762

Foreign currency translation reserve

3,129

1,446

Other components of equity

283

Accumulated losses

(319,591)

(339,389)

Non-controlling interests

137

205

Total equity and liabilities

1,711,564

1,846,469

Indebtness

Interest

December 31, 2023

(audited)

September 30, 2024

(non-audited)

(in thousands of R$)

Working capital

100% CDI+2.51% to
6.55% and 8.60%

69,667

103,330

Debentures

18.16 %

18,129

13,597

Total

87,796

116,927

Cash Flow

2024

(non-audited)

2023

(restated)

2024

(non-audited)

2023

(restated)

(in thousands of R$)

Net cash from (used in) operating activities

56,583

16,063

61,852

148,381

Net cash used in investing activities

-14,886

-15,632

-48,393

-33,070

Net cash from (used in) financing activities

-29,276

-28,283

25,517

-98,197

Exchange rate change on cash and cash equivalents

830

1,780

-56

-850

Net (decrease) increase in cash and cash equivalents

13,251

-26,072

38,920

16,264

Special Note Regarding Non-GAAP Financial Measures
This press release presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA. A Non-GAAP financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. Non-GAAP financial measures do not have standardized meanings and may not be directly comparable to similarly titled measures adopted by other companies. These Non-GAAP financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We also believe that the disclosure of our Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA provides useful supplemental information to investors and financial analysts and other interested parties in their review of our operating performance. Potential investors should not rely on information not recognized under IFRS as a substitute for the IFRS measures of earnings, cash flows or profit (loss) in making an investment decision.

The following table shows the reconciliation for our consolidated Non-GAAP Gross Profit and consolidated Non-GAAP Gross Margin:

Consolidated

2024

(non-audited)

2023

(non-audited)

2024

(non-audited)

2023

(non-audited)

(in thousands of R$)

Gross profit

89,810

70,935

258,202

220,270

(+) Amortization of intangible assets acquired from business combinations

12,653

12,850

38,092

39,211

Non-GAAP Adjusted Gross Profit(1)

102,463

83,785

296,294

259,481

Revenue

284,449

218,597

728,244

590,563

Gross Margin(2)

31.6 %

32.5 %

35.5 %

37.3 %

Non-GAAP Adjusted Gross Margin(3)

36.0 %

38.3 %

40.7 %

43.9 %

(1)

We calculate Non-GAAP Adjusted Gross Profit as gross profit plus amortization of intangible assets acquired from business combinations.

(2)

We calculate gross margin as gross profit divided by revenue.

(3)

We calculate Non-GAAP Adjusted Gross Margin as Non-GAAP Adjusted Gross Profit divided by revenue.

The following tables shows the reconciliation for the Non-GAAP Gross Profit and Non-GAAP Gross Margin for our SaaS and CPaaS business segments:

SaaS Segment

2024

(non-audited)

2023

(non-audited)

2024

(non-audited)

2023

(non-audited)

(in thousands of R$)

Gross profit

37,904

33,105

98,082

95,166

(+) Amortization of intangible assets acquired from business combinations

12,653

12,850

38,092

39,211

Non-GAAP Adjusted Gross Profit(1)

50,557

45,955

136,174

134,377

Revenue

87,632

75,324

243,174

211,373

Gross Margin(2)

43.3 %

44.0 %

40.3 %

45.0 %

Non-GAAP Adjusted Gross Margin(3)

57.7 %

61.0 %

56.0 %

63.6 %

(1)

We calculate Non-GAAP Adjusted Gross Profit for our SaaS business segment as gross profit for our SaaS business segment plus amortization of intangible assets acquired from business combinations for our SaaS business segment.

(2)

We calculate gross margin for our SaaS business segment as gross profit for our SaaS business segment divided by revenue of our SaaS business segment.

(3)

We calculate Non-GAAP Adjusted Gross Margin for SaaS business segment as Non-GAAP Adjusted Gross Profit for our SaaS business segment divided by revenue for our SaaS business segment.

CPaaS Segment

2024

(non-audited)

2023

(non-audited)

2024

(non-audited)

2023

(non-audited)

(in thousands of R$)

Gross profit

51,906

37,830

160,120

125,104

(+) Amortization of intangible assets acquired from business combinations

Non-GAAP Adjusted Gross Profit(1)

51,906

37,830

160,120

125,104

Revenue

196,817

143,273

485,070

379,190

Gross Margin(2)

26.4 %

33.0 %

Non-GAAP Adjusted Gross Margin(3)

26.4 %

33.0 %

(1)

We calculate Non-GAAP Adjusted Gross Profit for our CPaaS business segment as gross profit for our CPaaS business segment plus amortization of intangible assets acquired from business combinations for our CPaaS business segment.

(2)

We calculate gross margin for our CPaaS business segment as gross profit for our CPaaS business segment divided by revenue of our CPaaS business segment.

(3)

We calculate Non-GAAP Adjusted Gross Margin for CPaaS business segment as Non-GAAP Adjusted Gross Profit for our CPaaS business segment divided by revenue for our CPaaS business segment.

The following table shows the reconciliation for our Adjusted EBITDA and Normalized EBITDA:

2024

(non-audited)

2023

(non-audited)

2024

(non-audited)

2023

(non-audited)

(in thousands of R$)

Income/Loss for the period

52,449

-11,857

-19,744

-43,796

Current and Deferred Income Tax

-4,264

-6,310

-29,431

-22,943

Financial expenses, net

-30,313

11,365

67,348

40,602

Depreciation and Amortization

23,288

22,468

69,667

64,536

Adjusted EBITDA(1)

41,160

15,666

87,840

38,399

Earn-outs

-84

-631

– 10,245

– 631

Normalized EBITDA(2)

41,244

16,297

98,085

39,030

(1)

We calculate Adjusted EBITDA as loss for the period adjusted by income tax and social contribution (current and deferred), financial expenses, net, depreciation and the goodwill impairment.

(2)

We calculate Normalized EBITDA as the Adjusted EBITDA adjusted by non-recurring events and non-cash impacts from earn-out adjustments.

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SOURCE Zenvia

Technology

DEFSEC Ships New BLISS (“Battlespace Laser Identification Sensor System”) To U.S. Army Yuma Test Center

Published

54 minutes ago

April 29, 2026

OTTAWA, ON, April 29, 2026 /PRNewswire/ – DEFSEC Technologies Inc. (TSXV: DFSC) (TSXV: DFSC.WT.U) (NASDAQ: DFSC) (NASDAQ: DFSCW) (“DEFSEC” or the “Company”) today confirmed that it has now shipped two new networked BLISSTM systems to the United States Army Yuma Test Center (US Army YTC) for test and evaluation.

The BLISSTM shipment today to the US Army YTC follows delivery of an earlier version, called BLDS (Battlefield Laser Detection System) to the U.S. Army last year for testing and trial activity. BLISSTM is an enhanced, networked version of BLDS as the next step in the evolution of the Company’s technology roadmap for battlespace laser detection and intelligence.

The patent-pending BLISSTM system alerts operators to laser activity across the battlespace, providing critical early warning and valuable seconds to assess, evade, defend, and deploy countermeasures. Miniaturized BLISSTM sensors can be mounted on vehicles and fixed infrastructure, or worn on personnel, to affordably blanket a battlespace with sensors for enhanced survivability and situational awareness and battlespace intelligence in contested environments. It transforms laser warning into shared, actionable battlespace information.

Beyond real-time detection, BLISSTM incorporates enhanced laser pulse signature capture and analysis to help identify the source, intent, and affiliation of detected emissions. By enabling users to distinguish among known signatures, the system supports faster, more informed tactical decisions.

“The BLISSTM system shipped today to Yuma for US Army testing represents a major step forward in tactical-edge force protection and actionable battlespace intelligence for commanders,” said Sean Homuth, President and CEO. “This capability will provide operators with critical time, better information, and a meaningful operational advantage against laser-enabled threats, including those seen in current Middle East conflicts.”

DEFSEC expects to brief domestic and foreign delegations on its BLISS product at Canada’s upcoming annual defence and security show, “CANSEC”, May 27 and 28, 2026, in Ottawa.

About DEFSEC

DEFSEC (TSXV: DFSC) (TSXV: DFSC.WT.U) (NASDAQ: DFSC) (NASDAQ: DFSCSW) (FSE: 62UA) develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company’s current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The company also has a new proprietary less-lethal product line branded PARA SHOTTM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada.

For more information, please visit https://www.defsectec.com

Forward-Looking Statements

This news release contains “forward-looking statements” and “forward-looking information” within the meaning of Canadian and United States securities laws (collectively, “forward-looking statements”), which may be identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “have sight of”, “believe”, or “continue”, the description of “optimism”, ” momentum” or “interest”, the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking statements contain these terms and phrases. Forward-looking statements are provided for the purpose of assisting the reader in understanding us, our business, operations, prospects and risks at a point in time in the context of historical and possible future developments and therefore the reader is cautioned that such information may not be appropriate for other purposes. Such forward-looking statements are based on the current expectations of DEFSEC’s management and are based on assumptions and subject to risks and uncertainties that are documented in detail in the Company’s public filings. Forward-looking statements included in this include, but are not limited to: management’s belief of sufficiency of available financial resources to support forecasted activities in 2026 based on cash on hand, anticipated revenue streams and planned expenditures in the fiscal year, subject to execution of the Company’s operating plan and other risks and factors described in its public filings; interest in DEFSEC LightningTM, BLISSTM or other products and services as well as timing of full implementation or commercial release thereof; the Company’s estimates of increases to annualized gross margin on a go-forward basis and extent thereof, if any; the stage of scaled production for the PARA SHOTTM technology into new training cartridges and timing of release thereof; and management’s belief that its extensive customer base of law enforcement agencies for ARWEN throughout North America is a ready market for its new products like PARA SHOTTM as well as DEFSEC LightningTM.

Although DEFSEC’s management believes that the assumptions underlying such forward-looking statements are reasonable, they may prove to be incorrect. The forward-looking statements discussed in this news release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting DEFSEC, including DEFSEC’s inability to execute on its current operating plan and/or fiscal 2026 forecasted activities, DEFSEC’s inability to secure contracts and subcontracts (on the timelines, size and scale expected or at all), statements of work and orders for its products in fiscal 2026 and onwards for reasons beyond its control, the renewal or extension of agreements beyond their original term, the granting of patents applied for by DEFSEC, inability to finance the scale up to full commercial production levels for its physical products, inability to secure key partnership agreements to facilitate the outsourcing and logistics for its ARWEN® and PARA SHOTTM products, inability to commercialize DEFSEC’s Battlespace Laser Identification Sensor System (BLISS), inability to secure or complete the execution of government contracts, inability to drive growth in DEFSEC’s ARWEN® product line, inability to advance the commercialization of DEFSEC’s PARA SHOTTM products, delay or inability to launch DEFSEC’s Lightning SaaS offering, lower than expected or delayed demand for DEFSEC’s BLISS, overall interest in DEFSEC’s products being lower than anticipated or expected; general economic and stock market conditions; a stagnation or decrease in North American defense and public safety spending, adverse industry events; future legislative and regulatory developments in Canada, the United States and elsewhere; the inability of DEFSEC to implement and execute its business strategies; risks and uncertainties detailed from time to time in DEFSEC’s filings with the Canadian Security Administrators and the United States Securities and Exchange Commission, and many other factors beyond the control of DEFSEC. Although DEFSEC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and DEFSEC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its respective Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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SOURCE DEFSEC Technologies Inc

Technology

SPX Cooling Tech Unveils the Marley® OlympusMAX™ Fluid Cooler

Published

54 minutes ago

April 29, 2026

Maximum Capacity. Trusted Performance.

OVERLAND PARK, Kan., April 29, 2026 /PRNewswire/ — SPX Cooling Tech, LLC announced the launch of the Marley® OlympusMAX™ Fluid Cooler, engineered to deliver unmatched performance, efficiency and design flexibility for mission-critical facilities. Designed to meet the evolving demands of data centers, industrial plants and high-density cooling applications, the OlympusMAX Fluid Cooler sets a new benchmark in dry and adiabatic cooling technology.

Built on a century of heat rejection expertise, the OlympusMAX Fluid Cooler brings a new level of performance in dry and adiabatic cooling. It is available in both adiabatic and dry configurations. The bolt-on adiabatic module can be factory or field installed—or even installed after the equipment is operational in order to provide maximum flexibility in response to changing conditions and site demands.

As global data center density continues to expand, operators are increasingly seeking cooling solutions that balance performance, energy use, water use and operational flexibility. “OlympusMAX reflects our commitment to advancing cooling technology to support the evolving demands of mission-critical facilities,” said Dustan Atkinson, Director of Product Management for SPX Cooling Tech. “By offering scalable dry and adiabatic performance, engineered flexibility and streamlined installation, we’re helping facilities meet increasingly challenging demands while maintaining efficiency and long-term reliability.”

At the heart of the OlympusMAX adiabatic module is a patent-pending recirculating adiabatic design that significantly reduces blowdown, minimizing unnecessary water discharge while improving system efficiency. Unlike traditional once-through or spray systems, the unit’s recirculation technology delivers more uniform water flow across the pad – improving saturation efficiency, extending pad life and reducing mineral accumulation on critical components. The result is more predictable energy and water consumption – a critical advantage for performance-sensitive environments such as hyperscale data centers.

Engineered for uptime, the OlympusMAX features high-efficiency Marley Geareducer® gear drives, robust construction materials and integrated component redundancy, including mission-critical fan and VFD systems. With unit options ranging from 120 to 240 horsepower, the design maximizes cooling capacity per square foot, delivering industry-leading heat rejection density.

Installation and serviceability were key priorities in the system’s development. Each unit ships with a factory-assembled electrical access platform, single-point wiring connection, VFDs and PLC controls pre-installed, and full-size access doors with internal walkways. These features streamline installation while enabling safer operation and easier maintenance.

The launch underscores SPX Cooling Tech’s mission to provide flexible, high-efficiency heat rejection solutions across its full portfolio including dry coolers, adiabatic coolers, evaporative coolers, and cooling towers, ensuring customers have a single-supplier solution tailored to their operational strategy.

About SPX Cooling Tech, LLC
SPX Cooling Tech is a leading global manufacturer of cooling towers, fluid coolers, adiabatic and dry cooling systems, evaporative condensers, industrial evaporators and OEM aftermarket parts from brands that include Marley®, Recold® and SGS Refrigeration. Since 1922, our brands’ cooling systems, components and technical services have supported applications in heating, ventilation and air conditioning (HVAC), refrigeration, and industrial process cooling. SPX Cooling Tech and its product brands are part of SPX Technologies, Inc. For more information see www.spxcooling.com.

About SPX Corporation
SPX Technologies is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX Technologies has approximately 4,700 employees in 16 countries and is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.

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SOURCE SPX Cooling Technologies

Technology

AMTD’s TGE Reports Full Year Results with 27.7% Increase in Revenue, with 25.5% Increase in Total Assets and 9.1% Increase in Net Assets

Published

2 hours ago

April 29, 2026

PARIS and LONDON and NEW YORK, April 29, 2026 /PRNewswire/ — The Generation Essentials Group (“TGE” or the “Company”) (NYSE: TGE, LSE; TGE), a NYSE and LSE dual-listed company and a subsidiary of AMTD Group Inc., today announced the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the Securities and Exchange Commission, with summary highlights below:

Total Revenue increased by 27.7% from US$77.0 million to US$98.3 millionTotal non-GAAP Net Income increased by 3.2% from US$44.7 million to US$46.2 million Total Assets amounted to US$1,464.1 million (US$30.2/share)Net asset value amounted to US$839.1 million (US$17.3/share)

The annual report is available on the Company’s investor relations website at http://thegenerationalessentials.com. The Company will provide a hard copy of its annual report containing the audited consolidated financial statements, free of charge, to its shareholders upon request. Requests should be directed to Investor Relations Office at ir@tge.media.

About The Generation Essentials Group

The Generation Essentials Group (NYSE: TGE; LSE: TGE), jointly established by AMTD Group, AMTD IDEA Group (NYSE: AMTD; SGX: HKB) and AMTD Digital Inc. (NYSE: HKD), is headquartered in France and focuses on global strategies and developments in multi-media, entertainment, and cultural affairs worldwide as well as hospitality and VIP services. TGE comprises L’Officiel, The Art Newspaper, movie and entertainment projects. Collectively, TGE is a diversified portfolio of media and entertainment businesses, and a global portfolio of premium properties. Also, TGE is a special purpose acquisition company (SPAC) sponsor manager, with its first SPAC successfully raised and priced on December 18, 2025.

For The Generation Essentials Group:
IR Office
The Generation Essentials Group
EMAIL: ir@tge.media

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SOURCE The Generation Essentials Group