Bull Of The Day VTEX (VTEX)

Company Overview - VTEX is a software-as-a-service digital commerce platform that assists retailers in developing commerce strategies, building online stores, and managing orders across channels [2] - Founded in 2000 and headquartered in London, VTEX was established by Geraldo do Carmo Thomaz Junior and Mariano Gomide de Faria [2] Earnings Performance - VTEX has a strong earnings history, consistently beating the Zacks Consensus in the last four quarters [3] - The average positive earnings surprise over the last four quarters is 177% [4] Earnings Estimates - Earnings estimates for VTEX have been revised upwards, with the current quarter moving from a loss of $0.03 to breakeven, and the next quarter from $0.01 to $0.02 [4] - The full year 2024 estimate has improved from a loss of $0.03 to a gain of $0.06 over the last 60 days [4] - Next year's estimate has also increased from $0.11 to $0.15 [5] Growth Projections - For 2024, VTEX is expected to achieve 16% growth with projected sales of $234 million, increasing to $279 million in the following year, representing a 19.5% growth [5] Valuation Metrics - The forward price-to-earnings (PE) ratio is 108x, indicating a high valuation typical for companies transitioning to profitability [6] - The price-to-book ratio stands at 5x, which is reasonable given the company's growth and asset-light business model [6] - The price-to-sales ratio is at 5.7x, suggesting potential for revenue expansion [6] Margin Analysis - Operating margins have improved from -6.5% to -3.8%, and further to +1.5% over the last three quarters, indicating better profitability [7] - Increasing sales and higher margins are expected to lead to higher earnings per share [7]