VTEX Reports Fourth Quarter 2023 Financial Results
- Impressive financial results for Q4 2023, with total revenue reaching US$60.7 million, a 34% increase in USD and a 25% increase in FX neutral YoY.
- Gross profit grew by 45% in USD and 33% in FX neutral YoY, reaching a 74% margin.
- Non-GAAP income from operations and free cash flow achieved margins of 19% and 16% respectively.
- Significant growth in GMV, subscription revenue, and non-GAAP subscription gross profit.
- Operational and business decisions driving margin improvements, showcasing a strong foundation for sustainable growth.
- None.
The reported financial results by VTEX indicate a robust performance with a 34% increase in total revenue and a 45% growth in gross profit year-over-year (YoY). This is particularly significant given the current economic uncertainties. The improvement in gross margin to 74% is a strong indicator of operational efficiency and cost management. The company's ability to generate positive non-GAAP income from operations and free cash flow with margins of 19% and 16% respectively, suggests a healthy financial position and operational leverage.
Furthermore, VTEX's aggressive share repurchase program, having completed the buyback of 1.9 million shares in Q4, reflects confidence in its intrinsic value and a shareholder-friendly capital allocation strategy. This could be attractive to investors seeking companies with strong buyback programs.
For stakeholders, the short-term benefits include continued operational efficiency and potential share price support from buybacks. Long-term, the company's global expansion and customer acquisition strategy could drive sustainable growth, though it is important to monitor the efficiency of capital expenditures related to these expansions.
The 37.9% YoY increase in GMV and the expansion of VTEX's customer base, including significant names across various geographies, demonstrate the company's competitive positioning in the digital commerce platform market. The growth in subscription revenue, which represents a significant portion of total revenues, indicates a stable and recurring revenue stream, which is a positive signal for market analysts assessing company stability.
The operational highlights suggest a focus on innovation, such as zero friction onboarding and the development of a single control panel for order management. These enhancements could lead to increased customer satisfaction and retention, contributing to the company's market share expansion. The emphasis on a unified commerce solution and the ability to adapt quickly to market demands, as seen with Electrolux and Jeffers Pet, are competitive advantages in the rapidly evolving e-commerce industry.
Investors should consider the potential for VTEX to gain market share in the digital commerce space, especially given the increased demand for omnichannel retail solutions post-pandemic. The company's growth in subscription revenue and GMV, coupled with operational efficiencies, could lead to upward momentum in its stock performance.
The YoY growth in FX neutral terms is a key metric that neutralizes the effect of currency fluctuations, providing a clearer picture of the company's underlying performance. The reported growth rates in FX neutral terms indicate that VTEX is growing organically in its operational currency, which is a positive sign for its core business strength.
The company's outlook for 2024, with an expected FX neutral YoY revenue growth of 18% to 22%, suggests cautious optimism amid macroeconomic uncertainty. The anticipated mid-to-high single-digit margins for free cash flow and non-GAAP operating income indicate a focus on profitability, which is crucial as investors increasingly prioritize earnings quality over growth amid economic headwinds.
Given the uncertain macroeconomic climate, VTEX's conservative yet positive outlook reflects a realistic growth strategy that may be well-received by investors looking for companies with a prudent approach to forecasting. The company's focus on digital commerce, a sector that has seen accelerated growth due to shifts in consumer behavior, positions it favorably in the market. However, it is essential to remain vigilant about global economic trends that could affect discretionary consumer spending and, consequently, VTEX's performance.
Total revenue reached
Gross profit grew
Non-GAAP income from operations and free cash flow reached
Geraldo Thomaz Jr., founder and co-CEO of VTEX, commented, “In 2023, we consistently surpassed expectations quarter after quarter, navigating an uncertain economic landscape. Our operational and business decisions also drove significant margin improvements every quarter. The 4Q23 results highlight the inherent operational leverage in our business model, providing a robust foundation for continued sustainable growth.” Mariano Gomide de Faria, founder and co-CEO of VTEX, added, “This year, we delivered significant milestones in our global expansion, and it’s exciting to know that the journey is just beginning. We've announced relevant customer names globally and earned the recognition of industry experts. We look forward to continue executing our global strategy, setting the stage for a transformative future for VTEX.”
Fourth Quarter 2023 Financial Highlights
-
GMV reached US
$5.4 - Total revenue increased to US$60.7 million in the fourth quarter of 2023, from US$45.5 million in the fourth quarter of 2022, representing a YoY increase of 33.5% in USD and 24.9% on an FX neutral basis.
- Subscription revenue represented 95.9% of total revenues and increased to US$58.2 million in the fourth quarter of 2023, from US$42.7 million in the fourth quarter of 2022, a YoY increase of 36.3% in USD and 27.5% on an FX neutral basis.
-
Non-GAAP subscription gross profit was US$45.8 million in the fourth quarter of 2023, compared to US$31.4 million in the fourth quarter of 2022, representing a YoY increase of 45.7% in USD and 34.7% on an FX neutral basis.
- Non-GAAP subscription gross margin was 78.6% in the fourth quarter of 2023, compared to 73.5% in the same quarter of 2022. The YoY margin expansion of 510 bps was mainly attributable to operational hosting cost efficiencies, support cost optimization, among other impacts.
- Non-GAAP income from operations was US$11.6 million during the fourth quarter of 2023, compared to a Non-GAAP income from operations of US$1.7 million in the third quarter of 2023 and a Non-GAAP income from operations of US$2.1 million in the same quarter of 2022.
- Non-GAAP positive free cash flow was US$9.5 million during the fourth quarter of 2023, compared to a Non-GAAP positive free cash flow of US$2.7 million in the third quarter of 2023 and a Non-GAAP positive free cash flow of US$2.5 million in the same quarter of 2022.
- As of December 31, 2023, our total headcount was 1,277, remaining stable versus the prior quarter, and decreasing 5.2% YoY.
-
On August 8, 2023 the Board of Directors authorized the repurchase of shares of the Company's Class A common shares for an aggregate amount of up to
US . During the fourth quarter of 2023, we executed$20.0 million 100% of the remaining authorized amount and repurchased 1.9 million shares at an average price of US$5.41 per share for a total cost of US$10.2 million. - Considering the current and the previous year's share repurchase programs, the total executed amount reached 10.7 million shares, with an average price of US$4.48 per share and a total cost of US$48.0 million.
Fourth Quarter 2023 Commercial Highlights:
-
New customers that initiated their operations with us, among others: Biscoite, John John, Obabox, Osklen, and Tiffany in
Brazil , BSoul inColombia , Macondo inItaly , 7-eleven, Chapur and Voit inMexico , Hunter Douglas in Nederlands, Yape Market inPeru , and Hearst and ShopHero in the US. -
Existing customers expanding their operations with us by opening new online stores, among others: Carrefour, who added a new store in
Brazil , Atacadão, now operating seven stores inLatin America ; Colgate, who added a new store in the US, PCA Skin, now operating inBrazil and the US, both with B2C and B2B models; Motorola, who added a new store inEcuador , now operating in 20 countries acrossNorth America ,Latin America , and EMEA; Oshkosh Corporation, who added a new store in the US, Oshkosh Airport Products, together with Pierce Manufacturing they are now operating with two B2B stores in the US; and Probeauty, who added a new store inRomania , Eternal, now operating both B2C and B2B stores inRomania .
Fourth Quarter 2023 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:
-
Flamingo, a Colombian retail chain with over 40 stores, teamed up with VTEX to streamline their checkout. They seamlessly integrated their widely used private label credit card, Me Fia, into their system through VTEX. This new method now constitutes over
60% of Flamingo’s digital sales, significantly boosting user experience and sales, reinforcing their digital market presence. - The world's largest tool company, harnessed the potential of a self-service platform for its B2B operations through VTEX. This implementation streamlined ordering across three major business units, eliminating offline complexities and resulting in significant time and cost savings. Migrating to VTEX facilitated the integration of their traditional ecommerce and B2B sites, creating a unified and user-friendly commerce experience, enhancing efficiency and reducing overall costs.
-
Flamingo, a Colombian retail chain with over 40 stores, teamed up with VTEX to streamline their checkout. They seamlessly integrated their widely used private label credit card, Me Fia, into their system through VTEX. This new method now constitutes over
-
Single control panel for every order
-
Electrolux, a leading brand in innovative home appliances, overcame the absence of physical stores by introducing a nomad' store at the 2023 Home Fair in
Colombia . This adaptable store, set up specifically for events like the Home Fair, featured self-service kiosks and a sales team with the VTEX Sales App, for them to seamlessly showcase products through the app. The initiative resulted in a73% sales increase from 2022. The pickup point contributed30% of total sales, and there was an impressive84% growth in units. -
Jeffers Pet, the leading US animal health and supply company, expanded using VTEX to manage one physical store and two websites. Their second site, Lambert Vet Supply, offers 4,000+ SKUs. VTEX's flexibility enabled detailed pet registrations and streamlined checkouts by integrating with master data. Customization for subscriptions and vaccine deliveries improved user experience. The unified web platform resulted in outstanding performance, they saw an incredible
208% sales spike within three weeks of its launch. -
Motorola, the global telecommunications leader, addressed challenges in multiple commerce platforms by migrating to VTEX. This move streamlined operations, accelerated global store establishment and facilitated the testing of third-party applications. Optimizing architectures by country and reducing total cost of ownership, Motorola achieved a remarkable
20% annual growth in its ecommerce business.
-
Electrolux, a leading brand in innovative home appliances, overcame the absence of physical stores by introducing a nomad' store at the 2023 Home Fair in
-
Commerce on auto-pilot and co-pilot
-
Badamax, the force behind Ferouch and NewMan, advanced its VTEX partnership. Leveraging VTEX IO, they refined web development, interfaces, and integrations to match changing trends. Integrating sales channels and merging online with physical stores, Badamax saw a
46% YoY sales surge in 2023. Ecommerce now contributes over9% of their total retail sales, driving growth for Ferouch and NewMan. Real-time sales connections across 64 physical stores empowered smarter decisions. Their adoption of VTEX Pick and Pack technology showcases their progress in transforming physical stores into efficient fulfillment hubs, a sign of their ongoing evolution. -
Haight, a women's fashion retailer operating 6 physical stores in
Brazil , expanded its local web presence with over 800 SKUs. Leveraging VTEX's customizable features, they introduced multi-currency support and multilanguage capabilities, using the catalog translation app. Implementing VTEX's smart checkout vendor code, social selling, promotions, catalog management, pricing, and OMS, Haight streamlined the purchasing process, leading to a remarkable42% increase in conversion rates and a30% rise in average daily revenue.
-
Badamax, the force behind Ferouch and NewMan, advanced its VTEX partnership. Leveraging VTEX IO, they refined web development, interfaces, and integrations to match changing trends. Integrating sales channels and merging online with physical stores, Badamax saw a
-
The development platform of choice for digital commerce
- Aramis, a Brazilian clothing brand with more than 100 stores and 1,200 multi-brand stores, partnered with VTEX for their unified commerce solution. Using VTEX IO, they launched a customized webpage mirroring the in-store experience online. The site showcases iconic products, campaigns, and offers a "Aramis Way" section with fashion content, enhancing customer experience and boosting conversion.
-
VitalAire, the international brand for air liquide’s home healthcare activities, swiftly migrated its B2C ecommerce in
Brazil to VTEX in just four months. Adapting two clinics to warehouses and employing VTEX shipping network helped them to reduce their delivery costs. VTEX IO customized their site for better user experience, offering free shipping, checkout simulations, categorized product views, and top-selling item highlights.
Full-Year 2023 Operational and Financial Highlights
- GMV reached US$16.5 billion in the full-year 2023, representing a YoY increase of 30.2% in USD and 25.3% on an FX neutral basis.
-
Number of customers totaled 2.6 thousand in 2023. The number of customers with annual revenue above
US increased to 126 from 94 the prior year.$250 thousand -
Number of stores totaled 3.5 thousand in 2023, a YoY increase of 3.8%, in 43 countries. Our top 100 customers have an average of 6.0 stores per customer, up from 5.9 in 2022. Active stores with more than
US in Annual Recurring Revenue (“ARR”) represented 86.4% of our revenue and reached an average ARR per store of US$133.6 thousand.$25 thousand - Total revenues increased to US$201.5 million in 2023, from US$157.6 million in 2022, representing a YoY increase of 27.8% in USD and 23.7% on an FX neutral basis.
- In 2023, our same-store-sales (“SSS”) were 19.3% in USD and 14.6% on a FX Neutral basis.
- Revenue from existing stores increased to US$146.0 million in 2023, with a net revenue retention rate (“NRR”) of 111.3% in USD and 107.4% on a FX Neutral basis.
- Revenues from new stores increased to US$27.7 million in 2023 compared to US$21.3 million in the fiscal year 2022.
-
In 2023,
Brazil revenues increased by 22.7%,Latin America excludingBrazil by 21.0%, and Rest of the World by 37.3% on a YoY FX neutral basis. In 2023,Brazil ,Latin America excludingBrazil and Rest of the World represented 54%, 35% and 11% of our total revenue respectively, compared to 55%, 35% and 10% respectively in 2022. - Subscription revenue represented 94.4% of total revenues and increased to US$190.3 million in 2023, from US$148.5 million in 2022, a YoY increase of 28.2% in USD and 23.9% on an FX neutral basis.
- In 2023, R&D reached 417 employees, decreasing 4.8% YoY, S&M reached 344 employees, decreasing 8.8% YoY, G&A reached 246, decreasing 1.2% YoY, and under COGS we have our customer excellence teams which represented 270 employees, decreasing 4.6% YoY.
Business Outlook
Although the macroeconomic scenario remains uncertain, we see VTEX 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' sustainable growth and success.
In this context, we are currently targeting revenue for the first quarter of 2024 in the
For the full year 2024, we expect FX neutral YoY revenue growth of
For the full year 2024, as we continue executing our strategy for profitable growth, we anticipate free cash flow and non-GAAP operating income margins to reach mid-to-high single digits.
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 months and twelve months ended December 31, 2023 and 2022.
|
Three months ended
|
Twelve months ended
|
||
(in millions of US$, except as otherwise indicated) |
2023 |
2022 |
2023 |
2022 |
GMV |
5,382.7 |
3,903.7 |
16,524.2 |
12,687.7 |
GMV growth YoY FXN (1) |
|
|
|
|
Revenue |
60.7 |
45.5 |
201.5 |
157.6 |
Revenue growth YoY FXN (1) |
|
|
|
|
Non-GAAP subscription gross profit (2)(4) |
45.8 |
31.4 |
145.1 |
107.6 |
Non-GAAP subscription gross profit margin (3)(4) |
|
|
|
|
Non-GAAP income (loss) from operations (4) |
11.6 |
2.1 |
7.7 |
(35.1) |
Total number of employees |
1,277 |
1,347 |
1,277 |
1,347 |
(1) Calculated by using the average monthly exchange rates for the applicable months during 2022, adjusted by inflation in countries with hyperinflation, and applying them to the corresponding months in 2023, 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 +1-888-660-6011 (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.
“NRR” means net revenue retention, calculated on a monthly basis by dividing the subscription revenue from our platform during the current period by the subscription revenue in the same period of the previous year for the same base of online stores that were active in the same period of the previous year.
“SSS” means same-store-sales calculated on a yearly basis by dividing the GMV of active online stores in the current period by the GMV of the same active online same stores in the prior period.
“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, specifically Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP Free Cash Flow and FX Neutral measures.
We understand that Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP 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. 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
|
Twelve months ended
|
||
(in millions of US$, except as otherwise indicated) |
2023 |
2022 |
2023 |
2022 |
Subscription revenue |
58.2 |
42.7 |
190.3 |
148.5 |
Subscription cost |
(12.5) |
(11.5) |
(45.4) |
(41.4) |
Subscription gross profit |
45.8 |
31.2 |
144.9 |
107.1 |
Share-based compensation |
0.0 |
0.2 |
0.2 |
0.5 |
Non-GAAP subscription gross profit |
45.8 |
31.4 |
145.1 |
107.6 |
Non-GAAP subscription gross margin |
|
|
|
|
The following table presents a reconciliation of our Non-GAAP expenses to expenses for the following periods:
Sales & Marketing |
Three months ended
|
Twelve months ended
|
||
(in millions of US$, except as otherwise indicated) |
2023 |
2022 |
2023 |
2022 |
Sales & Marketing expense |
(15.1) |
(12.4) |
(59.5) |
(67.8) |
Share-based compensation expense |
1.0 |
1.1 |
4.4 |
2.9 |
Amortization and adjustment related to acquisitions |
0.3 |
0.3 |
1.2 |
1.2 |
Non-GAAP Sales & Marketing expense |
(13.8) |
(11.0) |
(53.9) |
(63.7) |
Research & Development |
Three months ended
|
Twelve months ended
|
||
(in millions of US$, except as otherwise indicated) |
2023 |
2022 |
2023 |
2022 |
Research & Development expense |
(14.3) |
(14.1) |
(60.1) |
(57.2) |
Share-based compensation expense |
1.8 |
1.7 |
7.4 |
4.8 |
Amortization and adjustment related to acquisitions |
0.3 |
0.2 |
1.2 |
0.9 |
Non-GAAP Research & Development expense |
(12.3) |
(12.1) |
(51.5) |
(51.5) |
General & Administrative |
Three months ended
|
Twelve months ended
|
||
(in millions of US$, except as otherwise indicated) |
2023 |
2022 |
2023 |
2022 |
General & Administrative expense |
(9.1) |
(7.1) |
(33.7) |
(28.3) |
Share-based compensation expense |
2.3 |
1.5 |
7.3 |
4.4 |
Amortization and adjustment related to acquisitions |
0.0 |
0.0 |
0.0 |
0.0 |
Non-GAAP General & Administrative expense |
(6.8) |
(5.6) |
(26.4) |
(24.0) |
The following table presents a reconciliation of our Non-GAAP loss from operations to loss from operations for the following periods:
|
Three months ended
|
Twelve months ended
|
||
(in millions of US$, except as otherwise indicated) |
2023 |
2022 |
2023 |
2022 |
Income (loss) from operations |
5.7 |
(3.0) |
(14.6) |
(49.9) |
Share-based compensation expense |
5.3 |
4.6 |
19.7 |
12.8 |
Amortization and adjustment related to acquisitions |
0.6 |
0.5 |
2.6 |
2.1 |
Non-GAAP income (loss) from operations |
11.6 |
2.1 |
7.7 |
(35.1) |
The following table presents a reconciliation of our Non-GAAP free cash flow to net cash used by operating activities for the following periods:
|
Three months ended
|
Twelve months ended
|
||
(in millions of US$, except as otherwise indicated) |
2023 |
2022 |
2023 |
2022 |
Net cash provided by (used in) by operating activities |
9.7 |
2.6 |
4.3 |
(29.2) |
Acquisitions of intangibles |
- |
- |
- |
- |
Acquisitions of property and equipment |
(0.2) |
(0.1) |
(0.5) |
(0.3) |
Non-GAAP free cash flow |
9.5 |
2.5 |
3.8 |
(29.6) |
The following table sets forth the FX neutral measures related to our reported results of the operations for the three months period ended December 31, 2023:
|
Three months ended December 31, |
|||||
As Reported |
FXN |
As Reported |
FXN |
|||
(in millions of US$, except as otherwise indicated) |
4Q23 |
4Q22 |
Percentage
|
4Q23 |
4Q22 |
Percentage
|
Subscription revenue |
58.2 |
42.7 |
|
54.5 |
42.7 |
|
Services revenue |
2.5 |
2.8 |
(9.3)% |
2.3 |
2.8 |
(15.1)% |
Total revenue |
60.7 |
45.5 |
|
56.8 |
45.5 |
|
Gross profit |
44.9 |
30.9 |
|
41.2 |
30.9 |
|
Income (loss) from operation |
5.7 |
(3.0) |
n/a |
3.5 |
(3.0) |
n/a |
This announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" nor a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited.
About VTEX
VTEX (NYSE: VTEX) is the enterprise digital commerce platform where forward-thinking CEOs and CIOs smarten up their investments. Our composable and complete platform helps brands and retailers modernize their stack and reduce maintenance costs by rapidly migrating from legacy systems, connecting their entire value chain, and making inventory and fulfillment their strength.
As a leader in digital commerce, VTEX is trusted by 2,600 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
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 Consolidated statements of profit or loss
In thousands of |
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|
|
Three months ended
|
|
Twelve months ended |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
Subscription revenue |
|
58,224 |
|
42,732 |
|
190,302 |
|
148,475 |
Services revenue |
|
2,497 |
|
2,753 |
|
11,215 |
|
9,145 |
Total revenue |
|
60,721 |
|
45,485 |
|
201,517 |
|
157,620 |
|
|
|
|
|
|
|
|
|
Subscription cost |
|
(12,472) |
|
(11,491) |
|
(45,420) |
|
(41,408) |
Services cost |
|
(3,385) |
|
(3,103) |
|
(15,529) |
|
(11,424) |
Total cost |
|
(15,857) |
|
(14,594) |
|
(60,949) |
|
(52,832) |
Gross profit |
|
44,864 |
|
30,891 |
|
140,568 |
|
104,788 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
General and administrative |
|
(9,132) |
|
(7,052) |
|
(33,673) |
|
(28,348) |
Sales and marketing |
|
(15,129) |
|
(12,404) |
|
(59,461) |
|
(67,798) |
Research and development |
|
(14,344) |
|
(14,059) |
|
(60,116) |
|
(57,205) |
Other losses |
|
(556) |
|
(402) |
|
(1,920) |
|
(1,356) |
Income (loss) from operations |
|
5,703 |
|
(3,026) |
|
(14,602) |
|
(49,919) |
|
|
|
|
|
|
|
|
|
Financial income |
|
20,801 |
|
7,645 |
|
46,374 |
|
23,770 |
Financial expense |
|
(20,442) |
|
(4,939) |
|
(43,367) |
|
(31,401) |
Financial result, net |
|
359 |
|
2,706 |
|
3,007 |
|
(7,631) |
|
|
|
|
|
|
|
|
|
Equity results |
|
19 |
|
347 |
|
1,008 |
|
1,106 |
Income (loss) before income tax |
|
6,081 |
|
27 |
|
(10,587) |
|
(56,444) |
Income tax |
|
|
|
|
|
|
|
|
Current |
|
(2,865) |
|
(136) |
|
(5,182) |
|
(877) |
Deferred |
|
7 |
|
(213) |
|
2,075 |
|
4,902 |
Total income tax |
|
(2,858) |
|
(349) |
|
(3,107) |
|
4,025 |
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
|
3,223 |
|
(322) |
|
(13,694) |
|
(52,419) |
|
|
|
|
|
|
|
|
|
Attributable to controlling shareholders |
|
3,226 |
|
(323) |
|
(13,687) |
|
(52,418) |
Non-controlling interest |
|
(3) |
|
1 |
|
(7) |
|
(1) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per share |
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
0.018 |
|
(0.002) |
|
(0.073) |
|
(0.275) |
Diluted earnings (loss) per share |
|
0.016 |
|
(0.002) |
|
(0.073) |
|
(0.275) |
|
|
|
|
|
|
|
|
|
VTEX Consolidated balance sheets
In thousands of |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
28,035 |
|
24,394 |
Restricted cash |
|
- |
|
1,608 |
Short-term investments |
|
181,374 |
|
214,164 |
Trade receivables |
|
44,122 |
|
36,844 |
Recoverable taxes |
|
6,499 |
|
5,122 |
Deferred commissions |
|
1,005 |
|
663 |
Prepaid expenses |
|
5,143 |
|
4,152 |
Derivative financial instruments |
|
53 |
|
117 |
Other current assets |
|
22 |
|
93 |
Total current assets |
|
266,253 |
|
287,157 |
|
|
|
|
|
Non-current assets |
|
|
|
|
Long-term investments |
|
2,000 |
|
- |
Trade receivables |
|
7,415 |
|
5,432 |
Deferred tax assets |
|
19,926 |
|
17,710 |
Prepaid expenses |
|
155 |
|
204 |
Recoverable taxes |
|
4,454 |
|
3,334 |
Deferred commissions |
|
2,924 |
|
1,790 |
Other non-current assets |
|
902 |
|
957 |
Right-of-use assets |
|
3,277 |
|
4,818 |
Property and equipment, net |
|
2,697 |
|
3,909 |
Intangible assets, net |
|
30,024 |
|
31,210 |
Investments in joint venture |
|
1,118 |
|
1,152 |
Total non-current assets |
|
74,892 |
|
70,516 |
Total assets |
|
341,145 |
|
357,673 |
|
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable and accrued expenses |
|
39,728 |
|
34,136 |
Loans and financing |
|
- |
|
1,153 |
Taxes payable |
|
8,219 |
|
4,128 |
Lease liabilities |
|
1,863 |
|
1,898 |
Deferred revenue |
|
25,948 |
|
20,332 |
Accounts payable from acquisition of subsidiaries |
|
- |
|
299 |
Other current liabilities |
|
1,486 |
|
70 |
Total current liabilities |
|
77,244 |
|
62,016 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Accounts payable and accrued expenses |
|
1,632 |
|
511 |
Taxes payable |
|
- |
|
160 |
Lease liabilities |
|
2,233 |
|
3,737 |
Deferred revenue |
|
16,584 |
|
13,923 |
Deferred tax liabilities |
|
2,668 |
|
2,464 |
Other non-current liabilities |
|
452 |
|
185 |
Total non-current liabilities |
|
23,569 |
|
20,980 |
|
|
|
|
|
EQUITY |
|
|
|
|
Issued capital |
|
18 |
|
19 |
Capital reserve |
|
370,821 |
|
390,885 |
Other reserves |
|
(486) |
|
127 |
Accumulated losses |
|
(130,060) |
|
(116,373) |
Equity attributable to VTEX’s shareholders |
|
240,293 |
|
274,658 |
Non-controlling interests |
|
39 |
|
19 |
Total shareholders’ equity |
|
240,332 |
|
274,677 |
Total liabilities and equity |
|
341,145 |
|
357,673 |
|
|
|
|
|
VTEX Consolidated statements of cash flows
In thousands of |
||||
|
December 31, 2023 |
|
December 31, 2022 |
|
Net loss for the year |
(13,694) |
|
(52,419) |
|
Adjustments for: |
|
|
|
|
Depreciation and amortization |
5,018 |
|
4,616 |
|
Deferred income tax |
(2,075) |
|
(4,902) |
|
Loss on disposal of rights of use, property, equipment, and intangible assets |
874 |
|
(9) |
|
Expected credit losses from trade receivables |
1,472 |
|
852 |
|
Share-based compensation |
16,360 |
|
12,202 |
|
Provision for payroll taxes (share-based compensation) |
3,326 |
|
(1,125) |
|
Adjustment of hyperinflation |
19,369 |
|
5,175 |
|
Equity results |
(1,008) |
|
(1,106) |
|
Accrued interest |
(23,757) |
|
(2,252) |
|
Fair value (gains) losses |
(10,332) |
|
2,522 |
|
Others and foreign exchange, net |
8,298 |
|
2,786 |
|
Change in operating assets and liabilities |
|
|
|
|
Trade receivables |
(13,137) |
|
(3,579) |
|
Recoverable taxes |
(3,597) |
|
(671) |
|
Prepaid expenses |
(598) |
|
3,947 |
|
Other assets |
583 |
|
(583) |
|
Accounts payable and accrued expenses |
855 |
|
5,229 |
|
Taxes payable |
7,347 |
|
(1,495) |
|
Deferred revenue |
6,948 |
|
1,157 |
|
Other liabilities |
1,925 |
|
745 |
|
Cash provided by (used in) operating activities |
4,177 |
|
(28,910) |
|
Income tax refund (paid) |
82 |
|
(312) |
|
Net cash provided by (used in) operating activities |
4,259 |
|
(29,222) |
|
Cash flows from investing activities |
|
|
|
|
Dividends received from joint venture |
1,138 |
|
147 |
|
Purchase of short and long-term investment |
(135,442) |
|
(120,615) |
|
Redemption of short-term investment |
171,200 |
|
78,011 |
|
Interest and dividend received from short-term investments |
2,106 |
|
1,110 |
|
Payment of business acquired |
- |
|
(1,692) |
|
Acquisitions of property and equipment |
(472) |
|
(340) |
|
Derivative financial instruments |
(105) |
|
- |
|
Net cash provided by (used in) investing activities |
38,425 |
|
(43,379) |
|
Cash flows from financing activities |
|
|
|
|
Derivative financial instruments |
- |
|
(746) |
|
Changes in restricted cash |
1,660 |
|
(348) |
|
Proceeds from the exercise of stock options |
1,031 |
|
567 |
|
Net-settlement of share-based payment |
(2,488) |
|
(1,615) |
|
Buyback of shares |
(35,243) |
|
(12,798) |
|
Payment of loans and financing |
(1,238) |
|
(2,651) |
|
Interest paid |
(5) |
|
(56) |
|
Principal elements of lease payments |
(1,574) |
|
(1,263) |
|
Lease interest paid |
(573) |
|
(670) |
|
Net cash provided by (used in) financing activities |
(38,430) |
|
(19,580) |
|
Net increase (decrease) in cash and cash equivalents |
4,254 |
|
(92,181) |
|
Cash and cash equivalents, beginning of the year |
24,394 |
|
121,006 |
|
Effect of exchange rate changes |
(613) |
|
(4,431) |
|
Cash and cash equivalents, end of the year |
28,035 |
|
24,394 |
|
Non-cash transactions: |
|
|
|
|
Lease liabilities arising from obtaining right-of-use assets and remeasurement |
(251) |
|
983 |
|
Issue of ordinary shares as consideration for a business combination |
- |
|
3 |
|
Dividends from joint venture used to pay accounts from acquisition of subsidiaries |
- |
|
448 |
|
Transactions with non-controlling interests |
27 |
|
13 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227279453/en/
Julia Vater Fernández
Investor Relations Director
investors@vtex.com
Source: VTEX Commerce Cloud Solutions LLC
