Zenvia Inc.

choose which products best fit their needs and thereby expand the margin of 32 percent up almost eight percentage points let's now look at the same data but comparing the first half of 23 to the first half of 22. when we compare the first half of 23 to the first half of 22 we see similar trends We can see solid performances in both businesses, with increased margins, meaning that our focus on profitability is paying off. Our SaaS business reached R$ 88 million in gross profit in the first half of the year, a 25% increase compared to the first half of 2022, and reaching a gross margin of 65%, which implies a 3% point expansion compared to the first half of 2022. CPAS, in turn, delivered a solid 21% increase in gross profit when compared to the first half of 2022, reaching a gross margin of 37%, up roughly 12 percentage points. Let's now look at this data in terms of weight in our financial metrics. Our SaaS business continues to gain momentum in annual recurring revenue, totaling almost 240 million reais. As I mentioned previously, the challenging environment negatively impacted our net revenue expansion, which totaled 116% compared to 120% in Q2 2022. Our SaaS services represented 35% of the total revenue as we had a boost in CPaaS revenues. In terms of gross profit, we had a 50-50 split this quarter. Let's now move to the next slide on our EBITDA evolution. As you can see in this slide, sequentially our EBITDA declined to R$ 15 million from R$ 24 million in Q1. While we expected some increase in infrastructure costs related to renewed suppliers' contracts, the higher mix of CPS and revenues, combined with non-recurring costs related to severance costs and slightly higher provisions, led to some pressure in EBITDA this quarter. Despite that, we delivered a solid R$ 39 million EBITDA in the first half of the year. Moreover, as you can see in the next slide, We have now delivered four consecutive quarters with EBITDA in positive territory. This is a direct result of the decision to pivot Zenvia into a SaaS company and focus on improving profitability. It has not been easy, particularly given the complex macro environment, but as you can see, our strategy is paying off. Our trailing 12 months EBITDA is totaling R$ 72 million, which makes us confident in reiterating our EBITDA guidance range for this year. Now we got to the most important slide of this quarter. as it shows that we have been able to convert EBITDA into cash and solve our funding gap for 2023. This is an important milestone for us that attests to all the hard work of our humans with ZEE to grow profitability and a lot of other initiatives we undertook to close the gap, coupled with extended earn-out payments and stricter treasury policies. While EBITDA minus CAPEX was already enough to generate a positive R$13.6 million, Total operating cash flow reached R$ 118 million as a result of better working capital management, especially due to higher anticipation from clients and renegotiation with SMS providers to more flexible payment terms. This working capital improvement and strong operating cash flow allow us to pay down debt and solve our funding gap for 2023, putting us in a better position to continue deleveraging balance sheet and invest in new projects. To finish, I would just like to reiterate the guidance we previously set for 2023. On the revenue side, we are aiming at the low end of the guidance, while for EBITDA, we are confident to deliver close to the top end of the range. Given the positive trend we are seeing, we are confident in our ability to deliver the solid EBITDA in 2023, which puts us on track to deliver the 15% EBITDA margin mid- to long-term level we presented during our 2022 investor day. With this, we conclude our prepared remarks and we are ready to take your questions.

We will now begin the question and answer session. Once again, for this Q&A session, we ask you to write down your question via the Q&A icon at the bottom of your screen. Your name will then be announced, and you'll be able to ask your question live. At this point, a request to activate your microphone will appear on your screen. If you prefer not to open your microphone live, please write down no microphone at the end of your question, and our operator will read your question aloud. Our first question comes from Lucas Chaves, Annalisa Selside of LocaWeb. We are now opening the audio so that you can ask your question live. Please go ahead.

So, just saying, Lucas from UBSBB here. So, two things, two questions from our side. How should we just feed the focus on large clients going to the second half of the year? And at the time, how do we see, especially the consulting part of enterprises? And how do you see these large clients impacting on margins on the second half? Thank you very much.