VTEX(US:VTEX)2025-02-25 21:01Financial Performance - Total revenue for the twelve months ended December 31, 2024, was $226.7 million, a 12.5% increase from $201.5 million in 2023[13] - Subscription revenue for the three months ended December 31, 2024, was $59.5 million, compared to $58.2 million in the same period of 2023, reflecting a growth of 2.1%[13] - Net income for the year ended December 31, 2024, was $12.0 million, a significant recovery from a net loss of $13.7 million in 2023[13] - Total revenue for the three-month period ended December 31, 2024, was $61.5 million, reflecting a 1.3% increase in USD and a 12.3% increase on an FX neutral basis year-over-year[103] - The company reported a net income of $6.3 million for the three months ended December 31, 2024, compared to a net loss of $2.4 million in the same period of 2023[110] - Basic earnings per share improved to $0.065 in 2024 from a loss of $(0.073) in 2023, reflecting a positive turnaround in net income[61] Assets and Liabilities - Total assets increased to $366.8 million as of December 31, 2024, up from $341.1 million in 2023, representing a growth of 7.5%[9] - Total current liabilities rose to $81.0 million in 2024, compared to $77.2 million in 2023, marking an increase of 4.5%[11] - Cash and cash equivalents decreased to $18.7 million at the end of 2024 from $28.0 million in 2023, a decline of 33.5%[9] - Deferred revenue increased to $54.7 million in 2024, up from $42.5 million in 2023, which is a growth of 28.6%[11] - The company’s equity attributable to shareholders rose to $255.7 million in 2024, compared to $240.3 million in 2023, an increase of 6.4%[11] - Trade receivables rose to US$64,855 in 2024 from US$52,446 in 2023, with total trade receivables net of expected credit losses at US$63,903[42] Expenses and Costs - Operating expenses for the twelve months ended December 31, 2024, totaled $167.3 million, up from $140.6 million in 2023, indicating a rise of 18.9%[13] - Total cost for the three months ended December 31, 2024, was $15.5 million, a decrease from $15.9 million in the same period of 2023[129] - Sales and marketing expenses for the twelve-month period ended December 31, 2024, increased by US$8.4 million, or 14.1%, to US$67.9 million[142] - Research and development expenses for the twelve-month period ended December 31, 2024, decreased by US$6.5 million, or 10.8%, to US$53.6 million[144] Investments and Acquisitions - VTEX acquired 100% of Weni Tecnologia da Informacao LTDA. for a total consideration of US$4,053, which includes an initial cash payment of US$3,016 and a long-term fixed installment of US$972[29] - The acquisition of Weni is expected to enhance VTEX's customer engagement and operational automation capabilities, with the integration planned to be finalized by January 2025[25] - Weni contributed revenues of US$1,204 and a net profit of US$114 to VTEX from August 29, 2024, to December 31, 2024, with projected annual revenues of US$5,542 if included from the beginning of the reporting period[34] - The Group's total short and long-term investments increased to US$205,784 in 2024 from US$183,374 in 2023, showing growth in investment strategy[39] Cash Flow and Financing - Net cash provided by operating activities for the twelve-month period ended December 31, 2024, was US$27.3 million, compared to US$4.3 million in the same period of 2023[153] - For the twelve-month period ended December 31, 2024, net cash used in financing activities decreased by US$24.4 million to US$14.0 million from US$38.4 million in the same period of 2023[155] - The total expense related to share-based compensation for the year ended December 31, 2024, was $16,303, a decrease from $19,071 in 2023[70] Market Position and Strategy - The company operates in a growing e-commerce market, particularly in Latin America, where digitalization is accelerating and e-commerce remains underpenetrated[99] - The transaction-based fee model aligns the company's revenue growth with its customers' success, as revenue increases with customers' GMV growth[103] - The company has approximately 87.2% of its GMV coming from large, blue-chip companies, defined as those with more than $10 million of GMV per year[98] Foreign Exchange and Risk Management - As of December 31, 2024, 20.8% of revenues were denominated in or linked to U.S. dollars, compared to 20.3% in 2023[164] - The company is exposed to foreign exchange fluctuations on the revaluation of foreign currency assets and liabilities, using foreign exchange derivative products to hedge risks[165] - Interest rate risk arises from potential losses due to fluctuations in interest rates affecting future cash flows of financial instruments[159]