So we hope to have — to give you news on this sooner than later, but we continue being comfortable with the timing of those renegotiations. Another one for you here, Cassio. We saw hype with ChatGPT and AI. Following that hype, what has changed or evolved? What trends are you seeing?
Cassio Bobsin: We’re seeing that — what we had at the beginning, which is the beginning of the hype curve is a thought that it would dramatically change everything in the very short term as every new technology, that’s just initial hype. But what we’re seeing is that the benefits and the use of generative AI into our solutions is coming, and it’s starting to get traction within our products. We had a handful of different initiatives being tested with customers. And now we’re starting to deploy them and have them scaled at customers, and this comes from — this goes from a simple understanding of what is the next best answer for the customer up to insights on what is going on with customer support or sales. So there are some improvements that are very useful for customers.
And in the midterm, we expect that the way companies build their processes and when they make these processes available on conversational interface such as WhatsApp or Google RCS, that generative AI is — will be mixed with structured natural language understanding processes, which is like the Watson technology did before. So we’re seeing this being — these key technologies being mixed, so they can provide a reliable and the service for customers, of course, and also good in terms of conversation so we can be more fluid than Watson-based chatbots. So that’s starting to occur, and we expect that next year will be the year that these generative AI technologies will be fully deployed to most of our customers.
Shay Chor: There’s one for me here. You’re the cheapest enterprise software company in the world valuation-wise, when can we start to consider stock buybacks? So we are not against stock buybacks. It’s just a matter of timing and use of capital and capital preservation, right? We’re still — as I previously answered one of the questions about our funding gap and liquidity. So that is a priority now over share buyback. Once the funding gap and our liquidity situation is behind us, then we can discuss all sort of how to return — to accelerate capital return to shareholders. One here for you, Cassio. Can you elaborate more on the RCS that you mentioned in your prepared remarks, how is that different from SMS? Any idea of potential market size versus SMS cannibalization?
Cassio Bobsin: Sure. RCS is a technology that has been evolving for about a decade. It’s part of GSM protocol. And since Google started pushing that technology a couple of years ago, it was up to this year not yet deployed within carriers. This year, ’23 is the year that caters arranged and deployed the technology. So that’s the year things started ramping up. So we partnered with Google to bring that to the market. And what basically RCS does is that — is this smooth transition from SMS to more rich communication model with customers, which means you have 100% coverage when you’re sending a message because it is — the fallback goes over SMS. But for those end users that have a handset compatible with RCS, have a much richer experience.
That’s nowadays available not to the majority of end users, even though we cover 100% with SMS fallback. And over the next 2 or 3 years, we expect that 60% to 80% of users will be RCS compatible. And that means in terms of business that from Zenvia perspective, creates lots of opportunities for upsell because when a user receives a rich message, it brings more interactions with that message, which means better conversion rates, possibly conversation over the message, which leverages all of our conversational platform and AI capabilities. And also the message itself from the simple — simplest message up to the rich message, brings more revenues, talking only on the pure messaging side. So for us, that’s why we are leading that transition from SMS to RCS, brings lots of different opportunities for upsell and of course, better experiences for end users and better results for our customers.
Shay Chor: Other one here. Can you provide color on why the number of customers in your SaaS business was lower quarter-over-quarter and why your net retention keeps going lower? Caio, can you address that one?
Caio Figueiredo: Yes, of course. So talking first about the net revenue expansion as Shay said, that impact is related to the consulting part of the business where we saw some revenue churn come from clients, huge clients from last year because our net revenue expense used last 12 months as basis, but we’re already seeing recovery in Q3, the pipeline recovery. And in Q4, we expect an increase on also the net revenue expansion. Regarding the number of clients, the clients that we lost between quarters is not relevant in terms of revenue. And as we saw, we increased our revenue quarter-over-quarter in the SaaS business. And we still have a lot of opportunity in the cross-selling business. That’s why we have focused a lot on One Zenvia because we have a huge client base with low cross-sell. That’s a huge opportunity for us. So it doesn’t — there’s not some issue for us losing clients, especially — a number of clients especially because of their small revenues.
Shay Chor: Hugo, can you re-prompt to see if we have live questions?
Operator: [Operator Instructions].
Shay Chor : We have no more questions here Hugo on the webcast as well.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Cassio Bobsin for his closing remarks.
Cassio Bobsin: Thank you, everyone, for joining us today. We’re very excited with this year and especially next year coming. We expect to have you guys on our next call. Thank you very much.
Operator: The conference has now concluded. Zenvia’s IR area is at your disposal to answer any additional questions. Thank you for attending today’s presentation. You may now disconnect. Have a nice day.
