VTEX VTEX

Subscription revenue growth reached 22% in FXN

Gross profit increased by 28% in FXN, reaching a margin of 74%

Non-GAAP operating income margin reached 14%, representing a 10p.p. YoY expansion

Free cash flow margin reached 14%, representing an 8p.p. YoY expansion

VTEX (NYSE: VTEX), the composable and complete commerce platform for premier brands and retailers, today announced results for the third quarter of 2024 ended September 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, “Our product innovation and expanded platform capabilities continue to drive growth, evidenced by our customers’ consistent above-market performance and our strong new contract signature momentum. This fuels consistent financial improvements that bring us closer to our Rule of 40 target. We’ll remain focused on product excellence and relentlessly dedicate ourselves to meeting the evolving needs of our customers as we continue to execute our profitable growth strategy.” Mariano Gomide de Faria, founder and co-CEO of VTEX, added, “Our strong sales momentum, marked by key go-lives like Fast Shop in Brazil and US Electrical Services in the US, along with the expansion of existing customers across Europe and the US, strengthens our confidence in VTEX’s growth trajectory. We are solidifying our position as a trusted partner for global brands and seizing the opportunity to become the backbone for connected commerce.”

Third Quarter 2024 Financial Highlights

• GMV reached US$4.4 billion in the third quarter of 2024, representing a YoY increase of 9.5% in USD and 17.1% on an FX neutral basis.
• Total revenue increased to US$56.0 million in the third quarter of 2024 from US$50.6 million in the third quarter of 2023, representing a YoY increase of 10.6% in USD and 18.7% on an FX neutral basis.
• Subscription revenue represented 96.3% of total revenues, reaching US$53.9 million in the third quarter of 2024, from US$47.5 million in the third quarter of 2023. This represents a YoY increase of 13.4% in USD and 21.9% on an FX neutral basis.
• Non-GAAP subscription gross profit was US$42.3 million in the third quarter of 2024, compared to US$36.2 million in the third quarter of 2023, representing a YoY increase of 16.8% in USD and 26.9% on an FX neutral basis.
  • Non-GAAP subscription gross margin was 78.5% in the third quarter of 2024, compared to 76.2% in the same quarter of 2023. The YoY margin expansion of 230 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$7.7 million during the third quarter of 2024, compared to a Non-GAAP income from operations of US$1.7 million in the same quarter of 2023.
• Non-GAAP free cash flow was US$7.7 million during the third quarter of 2024, compared to a Non-GAAP free cash flow of US$2.7 million in the same quarter of 2023.
• As of September 30, 2024, our total headcount was 1,409, increasing 5.2% QoQ and 10.4% YoY.

Third Quarter 2024 Commercial Highlights:

New customers who initiated their operations with us, among others:

• Beko in Austria;
• Bemol, Champion Relógios, Fast Shop, Ferramentas Negrão, FQM Consumo, GrêmioMania, and Jorge Bischoff in Brazil;
• Comfama and Rimax in Colombia;
• Cálidda and Farmacia Universal in Peru; and
• US Electrical Services in the US.

Existing customers expanding their operations with us by opening new online stores, among others:

• Colgate launched a new store in Switzerland, expanding its footprint across Switzerland, Brazil, and the US;
• Hearst added two new stores, Harper's Bazaar and Prevention, bringing their store count to five across the US;
• Keune Haircosmetics launched a new store in the UK, now serving the UK, Belgium, France, and the Netherlands;
• Mazda expanded into Belgium, now operating in three countries across Europe; and
• Samsung added two new stores in Uruguay, now operating in three countries in Latin America.

Third 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:
  • Colgate-Palmolive, the global leader in oral, skin, and pet care, continues expanding with VTEX. After successful B2B launches of PCA Skin Professional and Colgate Oral Professional in the US, Colgate recently launched Oral Professional in Switzerland, its first European B2B site on VTEX. Powered by VTEX’s headless global architecture, the seamless rollout highlights the platform’s adaptability and scalability across diverse markets and business models.
  • Grupo Arcor, Latin America's leading food and beverage company, partnered with VTEX to launch TOKIN, a transformative B2B platform reshaping the distribution ecosystem in Argentina. Connecting retail points and active buyers, TOKIN has generated sales accounting for more than 30% of the distributor's sales through the VTEX Platform. Its success lies in personalized experiences, real-time inventory, and an optimized checkout, driving high adoption and engagement. We’re excited to support Arcor as it expands TOKIN across the region and continues to enhance its capabilities to drive growth.
  • Decathlon, a global leader in sporting goods retail with over 1,700 stores across 64 countries, leveraged VTEX’s Sales App in Brazil to enhance its omnichannel strategy and create a seamless shopping experience across both physical and digital stores. By integrating their sales channels, Decathlon allows customers to purchase items not in local stock by accessing a unified inventory across all stores. The VTEX Sales App enabled personalized customer interactions, real-time stock visibility, and flexible checkout, ensuring a faster, more agile shopping experience.
• Single control panel for every order:
  • Bemol, one of Brazil’s largest retailers, successfully migrated its entire operation to VTEX, including its B2C franchise and headless app, seeking a scalable platform to unify operations and introduce financial solutions like Bemol Store Credit and Bemol PIX. During the rollout, conversion rates increased by 12% and average revenue per session by 33%. After full migration, organic traffic rose 8%, supported by an up to 56% faster load time on mobile. These improvements enhance the user experience and strengthen Bemol’s expansion across Brazil, positioning it for further growth with VTEX.
  • Hearst, one of the world’s largest media companies, has integrated with Sephora using VTEX's multi-site architecture and developer cloud, VTEX IO, to launch a seamless digital marketplace. Now featured in top lifestyle publications like Women’s Health, Cosmopolitan, Harper’s Bazaar, Men’s Health and Prevention, this integration transforms the reader experience—allowing users to purchase Sephora products directly from articles. With over 8,500 products available through Sephora’s Beauty Insider loyalty program, Hearst is redefining how media connects with commerce.
  • VTEX Sales App, designed to unlock customers’ omnichannel potential and transform retail operations, now allows sales associates to sell in-store and endless aisle products in one seamless checkout. Enhanced with multi-cart management features, it empowers sales associates to serve their consumers with more personalized experiences and to offer value-added services like extended warranties. VTEX Sales App improved navigation, search, and customizable displays, boost efficiency, while new integrations with Mercado Pago and Cielo simplify payments across Latin America.
• Commerce on auto-pilot and co-pilot:
  • Hinode, a Latin American leader in beauty, fragrances, and wellness, migrated its B2B operations from a legacy platform to VTEX to modernize and boost efficiency. Already successful with its B2C operations in Brazil and Mexico on VTEX, Hinode unified both B2C and B2B under a single platform for scalability. Using VTEX’s API-first architecture, they enhanced the reseller experience with personalized checkout, point-based purchasing, and flexible delivery options. Since implementing VTEX’s SmartCheckout, Hinode’s conversion rate increased by more than 5x. We’re excited to support Hinode’s continued growth across channels.
  • VTEX Ad Network is expanding its media kit with new ad types for diverse formats, such as sponsored products in search auto-complete and product galleries, boosting visibility and customer engagement. Also, our ads will now effectively reach audiences on their preferred mobile devices, with upcoming features including product recommendation ads and sponsored banners aimed at engaging shoppers during the consideration phase. Lastly, we're simplifying ad performance measurement and visualization, enabling advertisers to easily export campaign data and insights with just a few clicks. VTEX Ads Network continues to partner with leading publishers such as Fast Shop, Grupo Drogarias Pacheco e São Paulo, and Zona Sul.
  • VTEX Data Pipeline, the secure data-sharing service that offers our customers seamless access to all their commerce data without expensive custom integrations, now offers additional data models for catalog, promotion, and external marketplace data. Data Pipeline is now compatible with any preferred data warehouse, BI tools, and CRM systems, enabling the delivery of VTEX commerce data precisely wherever customers need it. All customers can now leverage our new data models to create a unified view of their commerce operations.
  • VTEX Pick and Pack incorporated new fulfillment solutions. These improvements include the implementation of smart store selection, optimized product location, and multi-picking capabilities, all designed to enhance logistical efficiency. Our upgraded admin interface now provides real-time order tracking and instantaneous notifications, while the AI-powered returns module facilitates expedited customer feedback. These advancements position VTEX customers’ logistics as a strategic advantage, ultimately delivering a superior shopping experience that fosters consumers’ loyalty and retention.
• The development platform of choice for digital commerce:
  • Fast Shop, a leading Brazilian retailer with 85 stores and 15 distribution centers, chose VTEX to replace its costly, inflexible legacy platform. With VTEX, Fast Shop has lowered its total cost of ownership, expanded into new channels like B2B, and gained access to a robust third-party ecosystem. Now, all operations—stores, online, marketplace, and B2B—are integrated into one platform. They've also developed a custom app for in-store teams, enhancing the customer journey with personalized experiences and their Fast Prime loyalty program.

Business Outlook

VTEX is well-positioned to capture an attractive market opportunity, and we remain encouraged by our sales momentum and operational leverage. We will face tougher GMV comparisons in the fourth quarter of 2024, which will ease by year-end.

In this context, we are targeting FX neutral YoY revenue growth of 14% to 17% for the fourth quarter of 2024, implying a US$64.8 million to US$66.8 million range.

For the full year 2024, as we continue executing our profitable growth strategy, we are targeting FX neutral YoY revenue growth to 18.5% to 19.5%, implying a range of US$230 million to US$232 million based on Q3’s average FX rate. We are raising our non-GAAP operating income and free cash flow margins target to low teens.

We are confident in VTEX's ability to capitalize on current market opportunities. 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 nine months ended September 30, 2024 and 2023.

 

 

Three months ended September 30,

 

Nine months ended September 30,

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

 

2024

 

2023

 

2024

 

2023

GMV

 

4,380.2

 

3,999.3

 

12,854.7

 

11,141.5

 

GMV growth YoY FXN (1)

 

17.1

%

27.8

%

18.8

%

23.2

%

Revenue

 

56.0

 

50.6

 

165.2

 

140.8

 

Revenue growth YoY FXN (1)

 

18.7

%

24.5

%

20.6

%

23.2

%

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

 

42.3

 

36.2

 

123.4

 

99.3

 

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

 

78.5

%

76.2

%

78.0

%

75.2

%

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

 

7.7

 

1.7

 

17.1

 

(3.9

)

Total number of employees

 

1,409

 

1,276

 

1,409

 

1,276

 

(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 +1-646-307-1951 (Conference ID – 18526 –) 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 September 30,

Nine months ended September 30,

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

 

2024

 

2023

 

2024

 

2023

Subscription revenue

 

53.9

 

47.5

 

158.2

 

132.1

 

Subscription cost

 

(11.6

)

(11.4

)

(35.0

)

(32.9

)

Subscription gross profit

 

42.3

 

36.1

 

123.2

 

99.1

 

Share-based compensation

 

0.1

 

0.1

 

0.1

 

0.2

 

Non-GAAP subscription gross profit

 

42.3

 

36.2

 

123.4

 

99.3

 

Non-GAAP subscription gross margin

 

78.5

%

76.2

%

78.0

%

75.2

%

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

 

 

Three months ended September 30,

Nine months ended September 30,

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

 

2024

 

2023

 

2024

 

2023

Sales & Marketing expense

 

(16.4

)

(15.1

)

(50.9

)

(44.3

)

Share-based compensation expense

 

1.1

 

1.0

 

3.1

 

3.3

 

Amortization related to acquisitions

 

0.3

 

0.3

 

0.9

 

0.9

 

Earn out expenses related to acquisitions

 

0.1

 

-

 

0.1

 

-

 

Non-GAAP Sales & Marketing expense

 

(14.9

)

(13.8

)

(46.8

)

(40.1

)

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

 

 

Three months ended September 30,

Nine months ended September 30,

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

 

2024

 

2023

 

2024

 

2023

Research & Development expense

 

(13.4

)

(15.5

)

(40.3

)

(45.8

)

Share-based compensation expense

 

1.2

 

1.9

 

2.7

 

5.6

 

Amortization related to acquisitions

 

0.1

 

0.3

 

0.4

 

0.9

 

Earn out expenses related to acquisitions

 

0.1

 

-

 

0.1

 

-

 

Non-GAAP Research & Development expense

 

(11.9

)

(13.3

)

(37.2

)

(39.3

)

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

 

 

Three months ended September 30,

 

Nine months ended September 30,

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

 

2024

 

2023

 

2024

 

2023

General & Administrative expense

 

(8.4

)

(8.4

)

(26.3

)

(24.5

)

Share-based compensation expense

 

1.7

 

1.5

 

6.3

 

4.9

 

Amortization related to acquisitions

 

0.0

 

0.0

 

0.0

 

0.0

 

Non-GAAP General & Administrative expense

 

(6.7

)

(6.9

)

(20.0

)

(19.6

)

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 September 30,

 

Nine months ended September 30,

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

 

2024

 

2023

 

2024

 

2023

Income (loss) from operations

 

2.9

(3.5

)

3.0

(20.3

)

Share-based compensation expense

 

4.2

 

4.6

 

12.6

 

14.4

 

Amortization related to acquisitions

 

0.4

 

0.6

 

1.3

 

2.0

 

Earn out expenses related to acquisitions

 

0.2

 

-

 

0.2

 

-

 

Non-GAAP income (loss) from operations

 

7.7

 

1.7

 

17.1

 

(3.9

)

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 September 30,

 

Nine months ended September 30,

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

 

2024

 

2023

 

2024

 

2023

Net cash provided by (used in) operating activities

 

8.1

 

2.8

 

14.5

 

(5.4

)

Acquisitions of property and equipment

 

(0.4

)

(0.1

)

(1.7

)

(0.3

)

Free Cash Flow

 

7.7

 

2.7

 

12.8

 

(5.7

)

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

 

 

As Reported

FXN

As Reported

FXN

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

 

3Q24

 

3Q23

 

% Change

 

3Q24

 

3Q23

 

% Change

Subscription revenue

 

53.9

47.5

 

13.4

%

57.9

47.5

 

21.9

%

Services revenue

 

2.1

 

3.1

 

(31.9

%)

2.2

 

3.1

 

(29.6

%)

Total revenue

 

56.0

 

50.6

 

10.6

%

60.1

 

50.6

 

18.7

%

Gross profit

 

41.7

 

35.6

 

17.2

%

45.4

 

35.6

 

27.6

%

Income (loss) from operations

 

2.9

 

(3.5

)

N/A

 

3.7

 

(3.5

)

N/A

 

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

 

Nine months ended

 

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

Subscription revenue

 

53,897

 

 

47,544

 

 

158,244

 

 

132,078

 

Services revenue

 

2,099

 

 

3,084

 

 

6,941

 

 

8,718

 

Total revenue

 

55,996

 

 

50,628

 

 

165,185

 

 

140,796

 

Subscription cost

 

(11,642

)

 

(11,395

)

 

(35,023

)

 

(32,948

)

Services cost

 

(2,636

)

 

(3,625

)

 

(8,937

)

 

(12,144

)

Total cost

 

(14,278

)

 

(15,020

)

 

(43,960

)

 

(45,092

)

Gross profit

 

41,718

 

 

35,608

 

 

121,225

 

 

95,704

 

Operating expenses

 

 

 

 

 

 

 

 

General and administrative

 

(8,402

)

 

(8,374

)

 

(26,341

)

 

(24,541

)

Sales and marketing

 

(16,410

)

 

(15,101

)

 

(50,854

)

 

(44,332

)

Research and development

 

(13,366

)

 

(15,508

)

 

(40,330

)

 

(45,772

)

Other losses

 

(668

)

 

(99

)

 

(723

)

 

(1,364

)

Income (loss) from operations

 

2,872

 

 

(3,474

)

 

2,977

 

 

(20,305

)

Financial income

 

7,359

 

 

8,974

 

 

26,803

 

 

25,573

 

Financial expense

 

(7,959

)

 

(7,896

)

 

(28,006

)

 

(22,925

)

Financial result, net

 

(600

)

 

1,078

 

 

(1,203

)

 

2,648

 

Equity results

 

—

 

 

281

 

 

2

 

 

989

 

Income (loss) before income tax

 

2,272

 

 

(2,115

)

 

1,776

 

 

(16,668

)

Income tax

 

 

 

 

 

 

 

 

Current

 

98

 

 

(50

)

 

(83

)

 

(2,317

)

Deferred

 

874

 

 

(214

)

 

4,026

 

 

2,068

 

Total income tax

 

972

 

 

(264

)

 

3,943

 

 

(249

)

Net income (loss) for the period

 

3,244

 

 

(2,379

)

 

5,719

 

 

(16,917

)

Attributable to controlling shareholders

 

3,245

 

 

(2,374

)

 

5,734

 

 

(16,913

)

Non-controlling interest

 

(1

)

 

(5

)

 

(15

)

 

(4

)

Earnings (loss) per share

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

0.018

 

 

(0.013

)

 

0.031

 

 

(0.090

)

Diluted earnings (loss) per share

 

0.017

 

 

(0.013

)

 

0.030

 

 

(0.090

)

 

VTEX

Condensed consolidated interim balance sheets (Unaudited)

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

 

 

 

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

22,525

 

 

28,035

 

Short-term investments

 

194,514

 

 

181,374

 

Trade receivables

 

53,820

 

 

44,122

 

Recoverable taxes

 

5,898

 

 

6,499

 

Deferred commissions

 

1,449

 

 

1,005

 

Prepaid expenses

 

4,313

 

 

5,143

 

Derivative financial instruments

 

—

 

 

53

 

Other current assets

 

124

 

 

22

 

Total current assets

 

282,643

 

 

266,253

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Long-term investments

 

9,649

 

 

2,000

 

Trade receivables

 

12,639

 

 

7,415

 

Deferred tax assets

 

21,424

 

 

19,926

 

Prepaid expenses

 

95

 

 

155

 

Recoverable taxes

 

4,715

 

 

4,454

 

Deferred commissions

 

4,169

 

 

2,924

 

Other non-current assets

 

1,114

 

 

902

 

Right-of-use assets

 

2,204

 

 

3,277

 

Property and equipment, net

 

3,198

 

 

2,697

 

Intangible assets, net

 

31,309

 

 

30,024

 

Investments in joint venture

 

—

 

 

1,118

 

Total non-current assets

 

90,516

 

 

74,892

 

Total assets

 

373,159

 

 

341,145

 

 

 

September 30, 2024

 

December 31, 2023

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable and accrued expenses

 

37,726

 

 

39,728

 

Taxes payable

 

6,305

 

 

8,219

 

Lease liabilities

 

1,534

 

 

1,863

 

Deferred revenue

 

31,553

 

 

25,948

 

Derivative financial instruments

 

102

 

 

—

 

Accounts payable from acquisition of subsidiaries

 

33

 

 

—

 

Other current liabilities

 

1,243

 

 

1,486

 

Total current liabilities

 

78,496

 

 

77,244

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

Accounts payable and accrued expenses

 

2,165

 

 

1,632

 

Taxes payable

 

206

 

 

—

 

Lease liabilities

 

1,284

 

 

2,233

 

Accounts payable from acquisition of subsidiaries

 

893

 

 

—

 

Deferred revenue

 

24,810

 

 

16,584

 

Deferred tax liabilities

 

2,653

 

 

2,668

 

Other non-current liabilities

 

439

 

 

452

 

Total non-current liabilities

 

32,450

 

 

23,569

 

EQUITY

 

 

 

 

Issued capital

 

19

 

 

18

 

Capital reserve

 

383,371

 

 

370,821

 

Other reserves

 

3,104

 

 

(486

)

Accumulated losses

 

(124,326

)

 

(130,060

)

Equity attributable to VTEX’s shareholders

 

262,168

 

 

240,293

 

Non-controlling interests

 

45

 

 

39

 

Total shareholders’ equity

 

262,213

 

 

240,332

 

Total liabilities and equity

 

373,159

 

 

341,145

 

 

VTEX

Condensed consolidated interim statements of cash flows (Unaudited)

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

 

 

 

Nine months ended

 

 

September 30, 2024

 

September 30, 2023

Net income (loss) for the period

 

5,719

 

 

(16,917

)

Adjustments for:

 

 

 

 

Depreciation and amortization

 

3,329

 

 

3,799

 

Deferred income tax

 

(4,026

)

 

(2,068

)

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

 

114

 

 

614

 

Expected credit losses from trade receivables

 

775

 

 

1,093

 

Share-based compensation

 

11,111

 

 

12,280

 

Provision for payroll taxes (share-based compensation)

 

1,520

 

 

2,117

 

Adjustment of hyperinflation

 

6,428

 

 

10,221

 

Equity results

 

(2

)

 

(989

)

Accrued interest

 

(12,605

)

 

(9,875

)

Fair value gains

 

(2,166

)

 

(7,863

)

Others and foreign exchange, net

 

9,508

 

 

2,559

 

Change in operating assets and liabilities

 

 

 

 

Trade receivables

 

(19,143

)

 

(6,781

)

Recoverable taxes

 

(1,611

)

 

(108

)

Prepaid expenses

 

668

 

 

206

 

Other assets

 

(462

)

 

(25

)

Accounts payable and accrued expenses

 

(2,275

)

 

(958

)

Taxes payable

 

1,056

 

 

415

 

Deferred revenue

 

17,931

 

 

5,450

 

Other liabilities

 

110

 

 

1,175

 

Cash provided by (used in) operating activities

 

15,979

 

 

(5,655

)

Income tax paid

 

(1,482

)

 

233

 

Net cash provided by (used in) operating activities

 

14,497

 

 

(5,422

)

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

 

(116,802

)

 

(112,350

)

Redemption of short-term investment

 

105,377

 

 

139,458

 

Interest and dividends received from short-term investments

 

591

 

 

1,941

 

Acquisition of subsidiaries net of cash acquired

 

(2,920

)

 

-

 

Acquisitions of property and equipment

 

(1,691

)

 

(252

)

Derivative financial instruments

 

(3,558

)

 

359

 

Net cash provided by (used in) investing activities

 

(17,977

)

 

30,294

 

Cash flows from financing activities

 

 

 

 

Changes in restricted cash

 

—

 

 

1,660

 

Proceeds from the exercise of stock options

 

3,725

 

 

632

 

Net-settlement of share-based payment

 

(2,806

)

 

(1,618

)

Buyback of shares

 

—

 

 

(25,053

)

Payment of loans and financing

 

(71

)

 

(1,238

)

Interest paid

 

—

 

 

(5

)

Principal elements of lease payments

 

(1,249

)

 

(1,152

)

Lease interest paid

 

(284

)

 

(440

)

Net cash used in financing activities

 

(685

)

 

(27,214

)

Net decrease in cash and cash equivalents

 

(4,165

)

 

(2,342

)

Cash and cash equivalents, beginning of the period

 

28,035

 

 

24,394

 

Effect of exchange rate changes

 

(1,345

)

 

(751

)

Cash and cash equivalents, end of the period

 

22,525

 

 

21,301

 

Non-cash transactions:

 

 

 

 

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

 

344

 

 

85

 

Unpaid amount related to business combinations

 

926

 

 

-

 

Transactions with non-controlling interests

 

21

 

 

42

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241105947185/en/

Julia Vater Fernández VP of Investor Relations investors@vtex.com