VTEX(VTEX)2024-11-05 21:01Revenue 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]