Core Viewpoint - VTEX shares have increased by 1.4% recently, closing at $6.64, with a mean price target of $9.74 suggesting a potential upside of 46.7% [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $2.50, indicating variability among analysts [2] - The lowest estimate is $6.70 (0.9% increase), while the highest is $12.50 (88.3% increase) [2] - A low standard deviation signifies a high degree of agreement among analysts regarding price movement [7] Earnings Estimates and Market Sentiment - Analysts show increasing optimism about VTEX's earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 5.9%, with one estimate moving higher and no negative revisions [10] - VTEX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Analysts' price targets can often mislead investors, as empirical research indicates they rarely predict actual stock price movements accurately [5][6] - While price targets should not be ignored, relying solely on them may lead to disappointing returns on investment [8]

Core Viewpoint - VTEX has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to significant stock price movements [3]. VTEX Earnings Outlook - For the fiscal year ending December 2024, VTEX is expected to earn $0.09 per share, reflecting a 228.6% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for VTEX has risen by 42.1%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of VTEX to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - VTEX reported a GMV of US$4.4 billion, reflecting a year-over-year growth of 10% in US dollars and 17% in FX neutral [42] - Revenue reached US$56.0 million, representing an 11% increase in US dollars and 19% in FX neutral [42] - Subscription revenue grew to US$53.9 million, up 13% in US dollars and 22% in FX neutral, driven by new contract signatures and strong performance from existing customers [43] - Non-GAAP gross margin improved to 75%, up from 71% year-over-year, with subscription gross margin at 79% [45] - Free cash flow reached US$7.7 million, representing a 14% margin, up from 5% in the same quarter last year [48] Business Line Data and Key Metrics Changes - Services revenue totaled US$2.1 million, a reduction by design as new customers in the US and Europe rely less on direct services from VTEX [44] - The company achieved a positive 14% non-GAAP operating income margin, marking a 10 percentage point improvement year-over-year [46] Market Data and Key Metrics Changes - Strong sales momentum was noted in Brazil, with significant new customer wins including Fast Shop and Bemol [11][68] - In the US and Europe, the portfolio expanded across categories, with notable go-lives from Colgate-Palmolive and Keune [70] Company Strategy and Development Direction - VTEX aims to become the backbone for connected commerce, focusing on profitable growth and maximizing revenue [50][84] - The company is committed to achieving the Rule of 40, with a target subscription gross margin of 80% [63][82] - Strategic acquisitions, such as Weni, enhance VTEX's customer experience capabilities [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment clearing, allowing VTEX to capitalize on market opportunities [49] - The company anticipates FX neutral year-over-year revenue growth of 14% to 17% for Q4 2024, and 18.5% to 19.5% for the full year [51][52] - Management highlighted the importance of strong sales momentum and operational efficiency in seizing future opportunities [53][84] Other Important Information - VTEX hosted VTEX Connect Latam 2024, a significant event for digital commerce in the region, enhancing brand awareness and lead generation [16][17] - The company introduced new features in the VTEX Ad Network, improving advertising capabilities and customer engagement [19][21] Q&A Session Summary Question: Growth of subscription revenues by region - Management noted a total revenue growth of 18.7% in FX Neutral, with subscription revenue growing 22% in FX Neutral despite challenges in Argentina [56][59] Question: Sustainability of margins - Management confirmed that margins are sustainable, with ongoing progress towards target gross margins of 80% for subscription revenue [63][64] Question: New contract signature momentum - Management highlighted strong B2C growth in Brazil and expanding portfolios in the US and Europe, with notable new contracts and go-lives [68][70] Question: Relationship with system integrators - Management indicated that the ecosystem of system integrators is maturing, reducing the need for direct services and enhancing profitability [74][76] Question: Competitors and system integrators - Management observed a stable competitive environment with no significant shifts, maintaining a focus on subscription revenue as the key indicator of business health [78][79]

| --- | --- | |---------------|-------| | | | | November 2024 | | Safe Harbor This presentation has been prepared by VTEX ("we," "us," "our," "VTEX" or the "Company"). This presentation may contain forward-looking statements relating to such matters as continued growth prospects for the Company, industry trends and product and technology initiatives. These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe t ...

Core Insights - VTEX reported revenue of $56 million for the quarter ended September 2024, reflecting a year-over-year increase of 10.6% [1] - The earnings per share (EPS) was $0.02, an improvement from -$0.01 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $57.08 million by 1.89% [1] - The company did not deliver an EPS surprise as the consensus estimate was also $0.02 [1] Financial Metrics - Gross Merchandise Volume (GMV) was reported at $4.38 billion, below the average estimate of $4.51 billion from two analysts [3] - Services revenue was $2.10 million, significantly lower than the average estimate of $2.56 million, representing a year-over-year decline of 31.9% [3] - Subscription revenue reached $53.90 million, slightly below the average estimate of $54.52 million, but showed a year-over-year increase of 13.4% [3] Stock Performance - VTEX shares have returned -4.6% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Core Viewpoint - VTEX reported quarterly earnings of $0.02 per share, matching the Zacks Consensus Estimate, and showing improvement from a loss of $0.01 per share a year ago [1]. Financial Performance - The company posted revenues of $56 million for the quarter ended September 2024, which was a 10.5% increase from $50.63 million year-over-year but missed the Zacks Consensus Estimate by 1.89% [2]. - Over the last four quarters, VTEX has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2]. Stock Performance - VTEX shares have declined approximately 0.3% since the beginning of the year, contrasting with the S&P 500's gain of 19.8% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $67.66 million, and for the current fiscal year, it is $0.07 on revenues of $233.92 million [7]. - The estimate revisions trend for VTEX is mixed, and changes in earnings expectations may occur following the recent earnings report [6]. Industry Context - The Internet - Software industry, to which VTEX belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - Another company in the same industry, Soho House & Co, is expected to report a quarterly loss of $0.01 per share, reflecting a year-over-year change of +95.5% [9].

Revenue Growth - Total revenue for the three months ended September 30, 2024, was $55,996, an increase of 10% compared to $50,628 for the same period in 2023[14] - Subscription revenue reached $53,897 for the three months ended September 30, 2024, up from $47,544 in the prior year, representing a growth of 13%[14] - Total revenue for the nine-month period ended September 30, 2024, was US$12.85 billion, compared to US$11.14 billion for the same period in 2023, reflecting a significant growth[68] - Subscription revenue for the nine months ended September 30, 2024, reached $158,244, up 19.8% from $132,078 in the prior year[46] - Approximately 96.3% of total revenue for the three-month period ended September 30, 2024, was derived from subscription services, up from 93.9% in the same period of 2023[68] Profitability - Gross profit for the three months ended September 30, 2024, was $41,718, compared to $35,608 for the same period in 2023, reflecting an increase of 17%[14] - Net income for the three months ended September 30, 2024, was $3,244, a significant improvement from a net loss of $2,379 in the same period last year[14] - The company reported a basic earnings per share of $0.018 for the three months ended September 30, 2024, compared to a loss per share of $0.013 in the same period last year[14] - Net income for the period ended September 30, 2024, was $5,719 thousand, compared to a net loss of $16,917 thousand for the same period in 2023[17] - The company reported a Non-GAAP income from operations of $1.7 million for the three months ended September 30, 2023, compared to a loss of $4.1 million in the same period of 2022[74] Assets and Liabilities - Total assets increased to $373,159 as of September 30, 2024, up from $341,145 at the end of 2023, marking a growth of 9%[10] - Total liabilities stood at $110,946 as of September 30, 2024, compared to $100,813 at the end of 2023, indicating an increase of 10%[10] - Equity attributable to VTEX's shareholders rose to $262,168 as of September 30, 2024, from $240,293 at the end of 2023, reflecting an increase of 9%[10] - Deferred revenue increased to $56,363 as of September 30, 2024, up from $42,532 at the end of 2023, representing a growth of 33%[10] Cash Flow - Cash provided by operating activities was $15,979 thousand, a significant increase from cash used in operating activities of $(5,655) thousand in the prior year[17] - The company reported a net cash used in investing activities of $(17,977) thousand, compared to a net cash provided of $30,294 thousand in the same period last year[17] - The company’s cash and cash equivalents decreased to $22,525 as of September 30, 2024, from $28,035 at the end of 2023, a decline of 20%[8] - Net cash provided by operating activities was US$14.5 million for the nine-month period ended September 30, 2024, compared to cash used of US$5.4 million in the same period of 2023[100] Expenses - Operating expenses for the three months ended September 30, 2024, were $38.846 million, compared to $39.983 million for the same period in 2023, reflecting a decrease of 2.8%[85] - Research and development expenses for the three months ended September 30, 2024, were $13.366 million, down from $15.508 million in the same period of 2023[85] - Sales and marketing expenses increased by 8.7% to $16.4 million for the three-month period ended September 30, 2024, primarily due to increased compensation expenses[93] - Share-based compensation expense for the nine months ended September 30, 2024, was $12,136, slightly up from $12,068 in the same period of 2023[51] Market Position and Strategy - VTEX was recognized as a Customers' Choice in the 2024 Gartner® Voice of the Customer Digital Commerce report, with 98% of customers willing to recommend the platform[65] - The company has been named a Leader in the IDC MarketScape for Worldwide B2C Digital Commerce Platforms for Midmarket Growth, rated highest among 25 vendors[65] - The transaction-based fee model aligns the company's revenue growth with the success of its customers, indicating a strong correlation between GMV growth and revenue growth[67] - The company aims to redefine the boundaries between digital and physical commerce, enhancing customer conversion and efficiency rates[65] Financial Instruments and Risks - The notional value of derivative financial instruments designed as a hedge of foreign currency risk in Argentina was $12,000, with maturity due in December 2024[61] - The company aims to minimize interest rate risk by maintaining a portfolio of cash equivalents in a variety of investment-grade securities[106] - As of September 30, 2024, the company is not materially exposed to the risk of changes in market interest rates due to the short-term maturities of its cash and investments[106]

VTEX (VTEX) is set to report its third-quarter 2024 results on Nov. 5.It expects third-quarter 2024 revenues between $56 million and $57 million, indicating 18-20% year-over-year growth. The Zacks Consensus Estimate for third-quarter earnings has been steady at 2 cents per share over the past 30 days. VTEX reported a loss of 1 cent in the year-ago quarter.The consensus mark for third-quarter revenues is pegged at $57.08 million, indicating an increase of 12.73% from the figure reported in the year-ago quart ...

A downtrend has been apparent in VTEX (VTEX) lately. While the stock has lost 8% over the past two weeks, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support. While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of ...

The price trend for VTEX (VTEX) has been bearish lately and the stock has lost 5.1% over the past week. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bul ...