Caio Figueiredo: Sorry. Yes, Shay, of course, it’s important to add here that we expect growth, although we see a flat in CPaaS revenue from ’22 to a full year view, we expect growth at the second half of the year because of the first half of the 2022 was a strong half for CPaaS in terms of revenue and in the second half of ’22 we start to feel the stronger competition. We had a little bit of reduction on our CPaaS revenue. We expect the growth to come back in the second half of 2023. So that’s important too and they will make the year flat, but it’s important to highlight that.
Operator:
Shay Chor: Eric, I’ll take a question here. Do you expect to have to raise debt or equity this year to give yourself more breathing room? We are working with several different alternatives to give us breathing room. And that on top of the earn out renegotiations as we announced in late last year. So the answer is, yes. We’ve been discussing with banks possibility to extend maturity of the short-term debt that we have maturing this year. And all other instruments and alternatives that are available to us. And obviously we understand that there’s still some funding gap. And we will take all the measures and we expect to be a matter of weeks, not months, to be able to come back and announce to the market that we are on the right track to solve our short-term funding gap.
There is a follow-up question on the same topic, which is cash flow for 2023. So if we assume BRL80 million in EBITDA at the middle of the range of the guidance that we provided of BRL70 million to BRL90 million, so BRL80 million in EBITDA, we expect CapEx to be around BRL40 million, BRL45 million. So that’s EBITDA minus CapEx close to BRL40 million, BRL35 million. And then we have approximately BRL40 million, BRL45 million in interest to be paid. So that gives you an idea of cash flow expectations for 2023. And that’s why we see that there is still some funding gap that needs to be solved in the next 12 months. Another question here. With a strong gross profit margin reaching over 55%, why is the gross margin guidance for ’23 almost unchanged year-over -year?
I’ll let Caio answer this.
Caio Figueiredo: Yes, of course, Shay. So we have two reasons here. First is because of this SaaS business, we expect a little bit of reduction on margins because of the better allocation between cost and expenses for the acquired companies. So we did a really strong job on allocating better what is really cost and expenses. And when we are migrating some cost and expense, they’ll reduce a bit of the margins when comparing to 2022 from the acquired companies because they are smaller, they don’t have the currency that needed in terms of allocation. So that’s reason one. Reason two is also we do it to the market environment for CPaaS that we’re seeing. We expect a little not keeping those margins for that we saw in CPaaS during the year. We expect a little bit of reduction in order to guarantee the flat number revenue you saw between and the growth that we expect in the second half of the year. So that’s the main two reasons.
Shay Chor: Thanks, Caio. Eric, can you report to see if we have more questions?
Operator:
Shay Chor: There’s another one interesting here, and I’ll pass that to Cassio. Would you guys add in the reports Rule of 40 for Zenvia? Cassio, I think it’s interesting for you to discuss not only the Rule of 40, but all the SaaS metrics that we look at into our day to day decisions.
