Zenvia Inc.

Hugo, there are some questions here on the webcast. I'll start with them and we'll keep going. Can you put a bit more color on for guidance, for example, customer cloud? How's Q3 looking and Q4 in terms of bookings? How's the franchise channel doing? And are you still expecting to hit the 200 million BRL target with 65 to 70 gross margin range for the full year? Um, let me, let me, uh, start here with some, uh, with, with numbers and, uh, and then, uh, Castle, feel free to add some, uh, qualitative, uh, uh, uh, points about, about same customer cloud. And there are a couple of other questions on it. Um, So in terms of numbers, as we said earlier in the year, in January, when we talked about the new strategic cycle and our focus on Zenvia Customer Cloud, we disclosed that we were expecting this business to be around $200 million. rise in revenues with growth of between 25%, around 25%, and gross margin close to 70%. And we are keeping this as you saw in our results here in the first half of the year. Zenvia Customer Cloud is growing close to 25%. It grew 23%. So it is as we were expecting and we continue to maintain our expectations of a business around 200 million rise in revenues and gross margin around 7% growing close to 25%. No changes to that. Cassio, I think it would be interesting if you can share some thoughts on how is it going. There are the questions here about if we changed anything since we launched a business in October. There was an acceleration of the business now in the second quarter. Can you share us some qualitative points and your view on where we're going with Xavier Customer Cloud?

Sure. Although we have this seasonality on the CPL side, when we look at Zambia Customer Cloud, we're doing pretty well. We're excited with the whole performance of the business as we look not only in the revenue growth, but also in the usage of the software, which is very important in a SaaS model that is based on how much a company uses our software. We're seeing a very strong adoption. on this side uh for for instance uh um q2 we had around 80 percent increase in total usage comparing to q1 we have a customer cloud which means this uh block of the stream of adoption of the software is going to bring results on the mid short to mid term So it's doing pretty well in that sense. And about the franchisee model, we launched that on Q1. So we're still in the early days of this strategy, but it's already representing around 15% of our new MRR in Brazil, where it is the country that we launched the first of these models. So even though it's in the early days, it's already making a difference on new MRR. We have around 30 or so franchises that made sales. We had zero in January, so we now have around 34. And we're starting to test this model outside Brazil as well. We already have some partners operating in different countries, and we're going to evolve them into franchisees in the midterm. So expect this strategy to be in the next couple of quarters, the main generator of new MRR for the business, which means we're building skill around the customer cloud. And this is doing pretty well business-wise. That's why when we see the targets that we're having for customers, mid to long-term on Zephyr Customer Cloud. It's been improved on the combination of new customers and software adoption, which of course translates into revenue. So we're very excited about these results.

Thanks, Cássio. Another question here, on the CPAS side, are these tight margins the new level or should we expect some recovery? So as I mentioned, and Castro also just mentioned, CPAS has been very competitive. We saw, and Castro correct me if I'm wrong here, but the last time we saw business being that competitive was in the second half of 22, when we saw a lot of pricing pressure. And but we are navigating this and we understand that our strategies is the right one in terms of and we've been accelerating revenues, which means we are competitive in pricing. That will obviously put some pressure on margins in the short term, but that's important from a relationship perspective and that business helps generating EBITDA after all. So it's important to keep that in mind. And also, first half of the year is usually when we have cost increases from the carriers and we pass that through prices throughout the year. So we expect later on the year, closer to year end and Q4, to have passed through most of the cost increase that we suffered from the carriers and therefore margins will stabilize at a higher level than it is right now. But it's a commoditized business. It gets volatile. It gets pricing pressure from time to time. There was the logic behind, one of the logics behind our decision to move in the last strategic cycle to move and to diversify revenues into a different type of business and adding value to the pure channel, which was the business back in late 2018, 2019. But it's still a good chunk of our revenues and it's important, although margins are under pressure, it's important because that business generates EBITDA. I don't know, Cassio, if you want to add anything on the CPAS side in the market dynamics.