VTEX VTEX

Subscription revenue growth reached 21% in USD and 25% in FXN

Gross profit increased by 29% in USD and 34% in FXN, reaching a margin of 74%

Non-GAAP operating income margin reached 11%, representing a 15p.p. YoY expansion

VTEX (NYSE: VTEX), the composable and complete commerce platform for premier brands and retailers, today announced results for the second quarter of 2024 ended June 30, 2024. VTEX results have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) IAS 34 Interim Financial Reporting.

Geraldo Thomaz Jr., founder and co-CEO of VTEX, commented, “VTEX's profitable growth strategy is making strides, demonstrated by eight consecutive quarters of double-digits year-over-year operating margin expansion while delivering a high-growth pace. The VTEX Platform global competitive position strengthens as we evolve our product offering and garner industry analyst recognition, and our operational results are boosted by costs optimization and expenses discipline. These efforts reinforce our vision to become the backbone of connected commerce and deliver our long-term growth ambitions.” Mariano Gomide de Faria, founder and co-CEO of VTEX, added, “VTEX continues to see strong sales momentum. We welcome new customers in Australia, Brazil, Mexico, Portugal, and the US, among other countries. Additionally, our existing customers continue to validate our global platform, with Motorola expanding to Sweden and Hearst going live with the Cosmopolitan marketplace in the US. On top of that, the success of our first European event, VTEX Connect Europe, showcases our commitment to global expansion, boosting brand awareness and recognition in the European region. We are encouraged by our growth journey as we continue executing globally.”

Second Quarter 2024 Financial Highlights

• GMV reached US$4.4 billion in the second quarter of 2024, representing an YoY increase of 15.6% in USD and 19.4% on an FX neutral basis.
• Total revenue increased to US$56.5 million in the second quarter of 2024 from US$47.9 million in the second quarter of 2023, representing a YoY increase of 18.1% in USD and 21.9% on an FX neutral basis.
• Subscription revenue represented 95.5% of total revenues, reaching to US$54.0 million in the second quarter of 2024, from US$44.8 million in the second quarter of 2023. This represents a YoY increase of 20.6% in USD and 24.7% on an FX neutral basis.
• Non-GAAP subscription gross profit was US$42.2 million in the second quarter of 2024, compared to US$33.7 million in the second quarter of 2023, representing a YoY increase of 25.1% in USD and 30.1% on an FX neutral basis.
  • Non-GAAP subscription gross margin was 78.1% in the second quarter of 2024, compared to 75.3% in the same quarter of 2023. The YoY margin expansion of 285 bps was mainly attributable to the ongoing monitoring of cloud investments, migrating microservices to more efficient solutions, among other impacts.
• Non-GAAP income from operations was US$6.4 million during the second quarter of 2024, compared to a Non-GAAP loss from operations of US$1.5 million in the same quarter of 2023.
• Non-GAAP positive free cash flow was US$3.2 million during the second quarter of 2024, compared to a Non-GAAP negative free cash flow of US$3.3 million in the same quarter of 2023.
• As of June 30, 2024, our total headcount was 1,339, increasing 0.4% QoQ and 2.6% YoY.

Second Quarter 2024 Commercial Highlights:

• New customers who initiated their operations with us, among others: Chooze in Australia; Armani, Colormaq, Drogal, and PneuBarato in Brazil; The Line Group in Chile; Addi marketplace in Colombia; Grupo Nazan and Librerías Gandhi in Mexico; Ageas Seguros in Portugal; and MyEyeDr in the US.
• Existing customers expanding their operations with us by opening new online stores, among others:
• Essity, who added four brands in Colombia, now operating with 11 brands across five countries in Latam;
• Hearst, who added Cosmopolitan, now operating with three stores in the US;
• Multilaser in Brazil, who added a new brand, DJI, now operating with three stores in the country;
• Motorola, who added a store in Sweden, now operating across APAC, Canada, EMEA, Latam, and the US
• Nike, who added a store in Uruguay, now operating in four countries across Latam; and
• Victoria's Secret, who added a store in El Salvador, now operating in 12 countries across Latam.

Second Quarter 2024 Operational Highlights:

We innovate aligned with our guiding principles. We express our brand through the success of our customers. VTEX key operational highlights this quarter are:

• Zero friction onboarding and collaboration:
  • Ageas Seguros, the largest insurance provider in Belgium and a leader in 14 other countries, partnered with VTEX to launch a new marketplace in Portugal under their Médis brand. VTEX’s unique native marketplace capability, combined with its robust front-end features, including the Store Framework and optimized checkout flow, allowed the customer to integrate multiple payment methods and gift card options optimally. Furthermore, by adopting the VTEX Seller Portal, Ageas Seguros can now efficiently and seamlessly onboard sellers, creating an innovative healthcare ecosystem.
  • Chooze, an Australian disability equipment distributor supporting disabled and aging Australians, has launched its operations with VTEX, leveraging its out-of-the-box features such as marketplace, seller portal, OMS, and VTEX IO. Seeking to ensure the best customer experience, and with 134 sellers and over 18,000 products, Chooze allows easy product comparisons and purchases from multiple sellers and creates customized NDIS-friendly invoicing for multi-shop purchases using VTEX IO IPaaS, simplifying claims and reducing delays. Alongside VTEX, Chooze is setting a new standard in disability and aged care shopping.
  • Pague Menos, a leading pharmacy retail chain in Brazil, recognized the pivotal role of Retail Media as the next frontier in advertising. Leveraging VTEX Ads Network, Pague Menos now efficiently manages its advertising space, aligning promotions with consumer behavior to drive sales without the burden of managing numerous separate advertiser relationships. This integration expanded their reach, opened new sales channels, and delivered immediate sales and revenue increases while enhancing advertisers' performance metrics and ROAS. With VTEX Ads Network's scalable and performance-driven approach, Pague Menos is poised to drive further growth.
• Single control panel for every order:
  • Librerías Gandhi, a leading Mexican bookstore chain with 49 physical stores and a central distribution center, partnered with VTEX to enhance their omnichannel capabilities. They integrated their 4.5 million SKUs across all sales channels, enabling sales and inventory management from each store, enabling in-store pickup. Using VTEX, they can now offer same-day delivery in Mexico City and extend their reach through marketplace integrations with Walmart Mexico and Mercado Libre.
  • Launched a new version of the VTEX Sales App, introducing key enhancements to support sales representatives. These improvements include identifying consumers and accessing their complete online profile and purchase history with the brand. Sales representatives now benefit from offering a more personalized shopping experience, gaining better visibility into customized promotions at an SKU level, and monitoring out-of-stock items and delivery options more easily. With enhanced customer identification, sales reps can more effectively target in-store visitors, driving higher conversion rates and cross-selling opportunities.
• Commerce on auto-pilot and co-pilot:
  • Cosmo Music, a leader in musical instrument rentals in Canada, leveraged VTEX's platform to ensure a seamless and uninterrupted customer journey. Right after the migration, Cosmo Rentals has already achieved stable rental orders YoY. Its architecture integrates advanced features like a one-page checkout, enhanced rental management, and intuitive interfaces for managing multiple business rules and customer journeys. These improvements better serve its diverse customer base and lay a foundation for its future growth.
  • Dior, the renowned French luxury fashion and beauty brand, integrated its physical and online channels in Chile, delivering a unified, consistent shopping experience across all touchpoints. As a result, Dior experienced an astounding more than 100% YoY orders spike in the first half of 2024. In partnership with VTEX, Dior continues to navigate its digital transformation, partnering with VTEX in Argentina and planning to expand the partnership across Latin America.
  • Doto, a marketplace for electronic devices, expanded its reach using the VTEX platform in Mexico, enhancing usability and user experience. Leveraging VTEX's A/B Testing and workspaces, Doto was able to test several go-to-market strategies, such as its Double Buy Box, with "Save Time" and "Save Money" delivery options, which increased user interaction and loyalty, boosting conversions by 19%. Additionally, VTEX IO allowed Doto to manage its infrastructure natively, leading to a 27% increase in site visibility and a 26% rise in returning user visits. With VTEX Sales App and VTEX Intelligent Search, Doto's omnichannel strategy balances logistical efficiency and customer satisfaction, solidifying its ecommerce leadership.
  • H Mart, the largest Asian supermarket chain in the US, migrated to VTEX, launching two new online stores in March, unifying its perishable and nonperishable items with its fresh goods systems. In the second quarter, H Mart began integrating its physical stores, starting with California locations, enhancing its ecommerce capabilities with VTEX’s Pick and Pack app and precise product visibility. This combined with H Mart’s ERP for inventory, pricing, tax automation, and payment processing integration, enables consumers to order all sorts of goods in the same cart, leveraging real-time store inventory availability and access to optimized delivery options.
• The development platform of choice for digital commerce:
  • Addi, a Buy Now, Pay Later payment method provider in Colombia, has expanded into a marketplace using the VTEX platform. This strategic move aimed to connect its existing merchants, most of whom were VTEX customers, and enable them to use Addi’s payment method via a mobile app. The app, built on VTEX robust marketplace architecture, already serves over 1 million consumers and integrates both VTEX and non-VTEX sellers through the Seller Portal. Developed with VTEX authentication protocol, VTEX IO Store Framework, and Amplitude analytics, the Addi Payment Connector is also certified through the Payment Provider Protocol. The new platform has significantly boosted Addi's market presence and growth in its first three months.

Business Outlook

Although the macroeconomic scenario remains uncertain, VTEX is well-positioned to capture an attractive market opportunity. We are closely monitoring the performance of our customers and sales funnel and taking necessary actions to ensure our business' profitable growth and success. We remain encouraged by our sales momentum and operational leverage.

In this context, for the third quarter of 2024, we are targeting FX neutral YoY revenue growth of 18% to 20%, implying a US$56.0 million to US$57.0 million range.

For the full year 2024, we will continue executing our profitable growth strategy. We are increasing our FX neutral YoY revenue growth target to 18% to 20%, implying a range of US$231 million to US$235 million based on July’s average FX rate. We are also raising our free cash flow and non-GAAP operating income margins target to a range of high single digits to low teens.

We are confident in VTEX's ability to navigate the uncertainties posed by the current macroeconomic scenario. We are empowering our customers to digitally transform their commerce operations while helping them to outperform the market.

The business outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond VTEX’s control. See the cautionary note regarding “Forward-Looking Statements” below. Fluctuations in VTEX’s operating results may be particularly pronounced in the current economic environment. There can not be an assurance that VTEX will achieve these results.

The following table summarizes certain key financial and operating metrics for the three and six months ended June 30, 2024 and 2023.

 

Three months ended June 30,

Six months ended June 30,

In thousands of U.S. dollars, unless otherwise indicated

2024

2023

2024

2023

GMV

4,437.5

3,838.5

8,474.4

7,142.2

GMV growth YoY FXN (1)

19.4%

21.2%

19.8%

20.9%

Revenue

56.5

47.9

109.2

90.2

Revenue growth YoY FXN (1)

21.9%

22.9%

21.7%

22.5%

Non-GAAP subscription gross profit (2)(4)

42.2

33.7

81.0

63.1

Non-GAAP subscription gross profit margin (3)(4)

78.1%

75.3%

77.7%

74.6%

Non-GAAP income (loss) from operations (4)

6.4

(1.5)

9.4

(5.6)

Total number of employees

1,339

1,305

1,339

1,305

(1) Calculated by using the average monthly exchange rates for the applicable months during 2023, adjusted by inflation in countries with hyperinflation, and applying them to the corresponding months in 2024, as applicable, so as to calculate what our results would have been had exchange rates remained stable from one year to the next.

(2) Corresponds to our subscription revenues minus our subscription costs.

(3) Corresponds to our subscription gross profit divided by subscription revenues.

(4) Reconciliation of Non-GAAP metrics can be found in tables below.

Conference Call and Webcast

The conference call may be accessed by dialing +1-646-968-2525 (Conference ID – 1918046 –) and requesting inclusion in the call for VTEX.

The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at https://www.investors.vtex.com/.

An archive of the webcast will be available for one week following the conclusion of the conference call.

Definition of Selected Operational Metrics

“ARR” means annual recurring revenue, calculated as subscription revenue in the most recent quarter multiplied by four.

“Customers” means companies ranging from small and medium-sized businesses to larger enterprises that pay to use VTEX’s platform.

“GMV” means the total value of customer orders processed through our platform, including value-added taxes and shipping. Our GMV does not include the value of orders processed by our SMB customers or B2B transactions.

“FX Neutral” or “FXN” means a way of using the average monthly exchange rates for each month during the previous year, adjusted by inflation in countries with hyper-inflation, and applying them to the corresponding months of the current year, so as to calculate what results would have been had exchange rates remained stable from one year to the next.

“Stores” or “Active Stores” means the number of unique domains generating gross merchandise value. Each customer might have multiple stores.

Special Note Regarding Non-GAAP financial metrics

For the convenience of investors, this document presents certain Non-GAAP financial measures, which are not recognized under IFRS Accounting Standards, specifically Non-GAAP subscription gross profit, Non-GAAP income (loss) from operations, free cash flow and FX Neutral measures.

We understand that Non-GAAP subscription gross profit, Non-GAAP income (loss) from operations, free cash flow and FX Neutral measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations presented in accordance with IFRS Accounting Standards. Additionally, our calculations of Non-GAAP subscription gross profit, Non-GAAP income (loss) from operations, free cash flow and FX Neutral measures may be different from the calculation used by other companies, including our competitors, and therefore, our measures may not be comparable to those of other companies.

Reconciliation of Non-GAAP measures

The following table presents a reconciliation of our Non-GAAP subscription gross profit to subscription gross profit for the following periods:

 

Three months ended June 30,

Six months ended June 30,

(in millions of US$, except as otherwise indicated)

2024

2023

2024

2023

Subscription revenue

54.0

44.8

104.3

84.5

Subscription cost

(11.8)

(11.2)

(23.4)

(21.6)

Subscription gross profit

42.1

33.6

81.0

63.0

Share-based compensation

0.0

0.1

0.1

0.1

Non-GAAP subscription gross profit

42.2

33.7

81.0

63.1

Non-GAAP subscription gross margin

78.1%

75.3%

77.7%

74.6%

The following table presents a reconciliation of our Non-GAAP S&M expenses to S&M expenses for the following periods:

 

Three months ended June 30,

Six months ended June 30,

(in millions of US$, except as otherwise indicated)

2024

2023

2024

2023

Sales & Marketing expense

(17.3)

(14.4)

(34.4)

(29.2)

Share-based compensation expense

0.9

1.1

2.0

2.4

Amortization of intangible related to acquisitions

0.3

0.3

0.6

0.6

Non-GAAP Sales & Marketing expense

(16.0)

(13.1)

(31.9)

(26.3)

The following table presents a reconciliation of our Non-GAAP R&D expenses to R&D expenses for the following periods:

 

Three months ended June 30,

Six months ended June 30,

(in millions of US$, except as otherwise indicated)

2024

2023

2024

2023

Research & Development expense

(14.2)

(16.3)

(27.0)

(30.3)

Share-based compensation expense

1.2

1.8

1.4

3.7

Amortization of intangible related to acquisitions

0.1

0.3

0.3

0.6

Non-GAAP Research & Development expense

(12.9)

(14.2)

(25.3)

(26.0)

The following table presents a reconciliation of our Non-GAAP G&A expenses to G&A expenses for the following periods:

 

Three months ended June 30,

Six months ended June 30,

(in millions of US$, except as otherwise indicated)

2024

2023

2024

2023

General & Administrative expense

(8.8)

(8.2)

(17.9)

(16.2)

Share-based compensation expense

2.0

1.7

4.6

3.4

Amortization of intangible related to acquisitions

0.0

0.0

0.0

0.0

Non-GAAP General & Administrative expense

(6.8)

(6.5)

(13.4)

(12.7)

The following table presents a reconciliation of our Non-GAAP income (loss) from operations to income (loss) from operations for the following periods:

 

Three months ended June 30,

Six months ended June 30,

(in millions of US$, except as otherwise indicated)

2024

2023

2024

2023

Income (loss) from operations

1.7

(7.1)

0.1

(16.8)

Share-based compensation expense

4.3

4.7

8.4

9.8

Amortization of intangibles related to acquisitions

0.4

0.8

0.9

1.4

Non-GAAP income (loss) from operations

6.4

(1.5)

9.4

(5.6)

The following table presents a reconciliation of our free cash flow to net cash provided by (used in) operating activities for the following periods:

 

Three months ended June 30,

Six months ended June 30,

(in millions of US$, except as otherwise indicated)

2024

2023

2024

2023

Net cash provided by (used in) operating activities

3.8

(3.3)

6.4

(8.2)

Acquisitions of property and equipment

(0.5)

(0.0)

(1.3)

(0.2)

Free cash flow

3.2

(3.3)

5.1

(8.4)

The following table sets forth the FX neutral measures related to our reported results of the operations for the three months ended June 30, 2024:

 

As Reported

FXN

As Reported

FXN

(in millions of US$, except as otherwise indicated)

2Q24

2Q23

% Change

2Q24

2Q23

% Change

Subscription revenue

54.0

44.8

20.6%

55.8

44.8

24.7%

Services revenue

2.6

3.1

(17.9)%

2.6

3.1

(17.2)%

Total revenue

56.5

47.9

18.1%

58.4

47.9

21.9%

Gross profit

41.6

32.4

28.5%

43.3

32.4

33.7%

Income (loss) from operations

1.7

(7.1)

na

2.8

(7.1)

na

This announcement does not contain sufficient information to constitute an interim financial report as defined in International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) IAS 34 Interim Financial Reporting, "Interim Financial Reporting" nor a financial statement as defined by IFRS Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited. Numbers have been calculated using whole amounts rather than rounded amounts. This might cause some figures not to total due to rounding.

About VTEX

VTEX (NYSE: VTEX) is the composable and complete commerce platform that delivers more efficiency and less maintenance to organizations seeking to make smarter IT investments and modernize their tech stack. Through our pragmatic composability approach, we empower brands, distributors, and retailers with unparalleled flexibility and comprehensive solutions, enabling them to invest solely in what provides a clear business advantage and boosts profitability.

VTEX is trusted by 2,600 global B2C and B2B customers, including Carrefour, Colgate, Motorola, Sony, Stanley Black & Decker, and Whirlpool, having 3,500 active online stores across 43 countries (as of FY ended on December 31, 2023). For more information, visit www.vtex.com.

Forward-looking Statements

This announcement contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange of 1934, as amended. Statements contained herein that are not clearly historical in nature, including statements about the VTEX strategies and business plans, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” ”strategy,” “project,” “target” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions are generally intended to identify forward-looking statements.

VTEX may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission, or the SEC, in press releases and other written materials and in oral statements made by its officers and directors. These forward-looking statements speak only as of the date they are made and are based on the VTEX’s current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond VTEX’s control. A number of factors and risks could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in VTEX filings with the SEC.

As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this announcement. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented as there is no guarantee that expected events, trends or results will actually occur. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.

This announcement may also contain estimates and other information concerning our industry that are based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.

VTEX

Condensed consolidated interim statements of profit or loss (Unaudited)

In thousands of U.S. dollars, unless otherwise indicated

 

Three months ended

Six months ended

 

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

 

 

 

 

 

Subscription revenue

53,985

44,772

104,347

84,534

Services revenue

2,556

3,114

4,842

5,634

Total revenue

56,541

47,886

109,189

90,168

 

 

 

 

 

Subscription cost

(11,842)

(11,153)

(23,381)

(21,553)

Services cost

(3,080)

(4,353)

(6,301)

(8,519)

Total cost

(14,922)

(15,506)

(29,682)

(30,072)

Gross profit

41,619

32,380

79,507

60,096

 

 

 

 

 

Operating expenses

 

 

 

 

General and administrative

(8,767)

(8,242)

(17,939)

(16,167)

Sales and marketing

(17,252)

(14,449)

(34,444)

(29,231)

Research and development

(14,236)

(16,305)

(26,964)

(30,264)

Other income (losses)

331

(511)

(55)

(1,265)

Income (loss) from operations

1,695

(7,127)

105

(16,831)

 

 

 

 

 

Financial income

10,342

9,240

19,444

16,599

Financial expense

(7,551)

(9,126)

(20,047)

(15,029)

Financial result, net

2,791

114

(603)

1,570

 

 

 

 

 

Equity results

(16)

367

2

708

 

 

 

 

 

Income (loss) before income tax

4,470

(6,646)

(496)

(14,553)

 

 

 

 

 

Income tax

 

 

 

 

Current

73

(1,697)

(181)

(2,267)

Deferred

386

1,733

3,152

2,282

Total income tax

459

36

2,971

15

 

 

 

 

 

Net income (loss) for the period

4,929

(6,610)

2,475

(14,538)

 

 

 

 

 

Attributable to controlling shareholders

4,935

(6,611)

2,489

(14,539)

Non-controlling interest

(6)

1

(14)

1

 

 

 

 

 

Earnings (loss) per share

 

 

 

 

Basic earnings (loss) per share

0.027

(0.035)

0.013

(0.077)

Diluted earnings (loss) per share

0.026

(0.035)

0.013

(0.077)

 

 

 

 

 

VTEX

Condensed consolidated interim balance sheets (Unaudited)

In thousands of U.S. dollars, unless otherwise indicated

 

June 30, 2024

December 31, 2023

ASSETS

 

 

Current assets

 

 

Cash and cash equivalents

22,910

28,035

Short-term investments

192,489

181,374

Trade receivables

49,100

44,122

Recoverable taxes

9,462

6,499

Deferred commissions

1,315

1,005

Prepaid expenses

3,716

5,143

Derivative financial instruments

48

53

Other current assets

249

22

Total current assets

279,289

266,253

 

 

 

Non-current assets

 

 

Long-term investments

3,635

2,000

Trade receivables

9,386

7,415

Deferred tax assets

21,274

19,926

Prepaid expenses

96

155

Recoverable taxes

4,373

4,454

Deferred commissions

3,842

2,924

Other non-current assets

792

902

Right-of-use assets

2,464

3,277

Property and equipment, net

2,950

2,697

Intangible assets, net

27,331

30,024

Investments in joint venture

-

1,118

Total non-current assets

76,143

74,892

Total assets

355,432

341,145

 

June 30, 2024

December 31, 2023

LIABILITIES

 

 

Current liabilities

 

 

Accounts payable and accrued expenses

39,332

39,728

Taxes payable

6,778

8,219

Lease liabilities

1,607

1,863

Deferred revenue

28,575

25,948

Other current liabilities

1,046

1,486

Total current liabilities

77,338

77,244

 

 

 

Non-current liabilities

 

 

Accounts payable and accrued expenses

2,305

1,632

Taxes payable

83

-

Lease liabilities

1,470

2,233

Deferred revenue

19,449

16,584

Deferred tax liabilities

3,422

2,668

Other non-current liabilities

408

452

Total non-current liabilities

27,137

23,569

 

 

 

EQUITY

 

 

Issued capital

18

18

Capital reserve

377,857

370,821

Other reserves

609

(486)

Accumulated losses

(127,571)

(130,060)

Equity attributable to VTEX’s shareholders

250,913

240,293

Non-controlling interests

44

39

Total shareholders’ equity

250,957

240,332

Total liabilities and equity

355,432

341,145

VTEX

Condensed consolidated interim statements of cash flows (Unaudited)

In thousands of U.S. dollars, unless otherwise indicated

 

Six months ended

 

June 30, 2024

June 30, 2023

 

 

 

Net income (loss) for the period

2,475

(14,538)

Adjustments for:

 

 

Depreciation and amortization

2,228

2,494

Deferred income tax

(3,152)

(2,282)

Loss on disposal of rights of use, property, equipment, and intangible assets

128

612

Expected credit losses from trade receivables

479

737

Share-based compensation

6,970

7,621

Provision for payroll taxes (share-based compensation)

1,426

1,320

Adjustment of hyperinflation

5,785

4,860

Equity results

(2)

(708)

Accrued interest

(10,510)

(5,055)

Fair value gains

(524)

(5,450)

Others and foreign exchange, net

5,762

2,439

Change in operating assets and liabilities

 

 

Trade receivables

(12,987)

(6,609)

Recoverable taxes

(4,673)

(119)

Prepaid expenses

1,141

488

Other assets

(1,074)

(64)

Accounts payable and accrued expenses

1,836

(1,388)

Taxes payable

627

1,108

Deferred revenue

10,255

6,170

Other liabilities

841

227

Cash provided by (used in) operating activities

7,031

(8,137)

Income tax paid

(632)

(37)

Net cash provided by (used in) operating activities

6,399

(8,174)

Cash flows from investing activities

 

 

Dividends received from joint venture

-

1,138

Proceeds from disposal of Joint Venture

1,026

-

Purchase of short and long-term investment

(67,538)

(21,273)

Redemption of short-term investment

60,593

118,311

Interest and dividends received from short-term investments

463

1,233

Acquisitions of property and equipment

(1,259)

(178)

Derivative financial instruments

(2,201)

(45)

Net cash provided by (used in) investing activities

(8,916)

99,186

Cash flows from financing activities

 

 

Changes in restricted cash

-

1,660

Proceeds from the exercise of stock options

1,399

88

Net-settlement of share-based payment

(1,624)

(932)

Buyback of shares

-

(13,841)

Payment of loans and financing

-

(1,238)

Interest paid

-

(5)

Principal elements of lease payments

(870)

(751)

Lease interest paid

(200)

(302)

Net cash used in financing activities

(1,295)

(15,321)

Net increase (decrease) in cash and cash equivalents

(3,812)

75,691

Cash and cash equivalents, beginning of the period

28,035

24,394

Effect of exchange rate changes

(1,313)

419

Cash and cash equivalents, end of the period

22,910

100,504

 

 

 

Non-cash transactions:

 

 

Lease liabilities arising from obtaining right-of-use assets and remeasurement

287

85

Transactions with non-controlling interests

19

43

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806483344/en/

Julia Vater Fernández Investor Relations Director investors@vtex.com