Business Overview - VTEX is a SaaS commerce platform for enterprises, with 88% of its Annual Recurring Revenue (ARR) coming from enterprise customers, each generating at least $25,000 ARR, with an average of $131,000 in ARR [17] - VTEX's platform facilitated $19.0 billion in B2C Gross Merchandise Value (GMV) in the last twelve months (LTM) of the second quarter of 2025 [21] - VTEX reported $230.4 million in revenue for the LTM period of the second quarter of 2025 [21] - The company has 3,400 customers and 2,400 active online stores across 43 countries as of fiscal year 2024 [21] Financial Performance and Growth - VTEX boasts an attractive unit economics model with a Lifetime Value to Customer Acquisition Cost (LTV/CAC) ratio above 6x [68] - VTEX achieved a Non-GAAP subscription gross margin of 79.1% for the LTM period of the second quarter of 2025 [21] - The number of customers with ARR above US$250,000 experienced YoY growth of 23% in 2024 [69] - VTEX's Top 100 customers have shown a Compound Annual Growth Rate (CAGR) of 24% from 2017 to 2024 [72] - Top 100 customers ARR grew 29% FX Neutral CAGR from 2017 to 2024, reaching $98.7 million in ARR [79] Market and Technology - The Latin American e-commerce market reached $19.0 billion in GMV in fiscal year 2024 [32] - The worldwide e-commerce market is projected to reach $8.1 trillion by fiscal year 2028 [33] - Approximately 45% of VTEX's GMV comes from Collaborative Commerce transactions, with over 85% of GMV from customers using Collaborative Commerce integrations [44]

Financial Data and Key Metrics Changes - Subscription revenue grew 15% in FX neutral terms in Q1 2025, reaching $52.6 million compared to $50.4 million in Q1 2024, a 4% increase in U.S. dollars [26] - Gross profit reached $41 million, a 22% growth in FX neutral terms, with a 3.7 percentage points margin increase year over year [5] - Non-GAAP operating income increased to $5.3 million, an 85% growth year over year, with a 4.2 percentage points margin increase [5][29] - Non-GAAP net income reached $5.3 million in Q1 2025, more than doubling year over year, with a 5.2 percentage points improvement in margin [30] - Free cash flow was $6.6 million, compared to $1.6 million in the same quarter of the prior year, achieving a free cash flow margin of 12% [29] Business Line Data and Key Metrics Changes - Non-GAAP subscription gross margin reached 79%, up 191 basis points year over year, reflecting operational efficiency improvements [27] - Total gross margin rose to 76%, up 371 basis points year over year, driven by a lower mix of services revenue and subscription gross margin gains [27] Market Data and Key Metrics Changes - GMV for the quarter reached $4.3 billion, growing 8% year over year in U.S. dollars and 17% on an FX neutral basis [26] - The company successfully brought several new customers live across various regions, including Argentina, Brazil, Colombia, Ecuador, Spain, Mexico, and the U.S. [7][8] Company Strategy and Development Direction - The company is focusing on building a future where intelligent agents evolve into digital workers, managing core workflows autonomously [6] - The strategy includes doubling down on high-impact product bets, particularly in B2B commerce and retail media, with the acquisition of Newpeo to enhance retail advertising capabilities [14] - The company aims to solidify its position as a trusted, scalable, and innovation-driven platform for global enterprises [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the profitable growth strategy despite ongoing macroeconomic volatility [4] - The company is targeting FX neutral year-over-year subscription revenue growth of 12.5% to 15.5% for Q2 2025 and 14% to 17% for the full year 2025 [31] - Management acknowledged the challenges posed by macroeconomic conditions but emphasized the company's resilience and adaptability [56] Other Important Information - The company repurchased 2.7 million Class A common shares at an average price of $5.56 per share, totaling $15 million [29] - The company was recognized as a customer choice in the 2025 Gartner Voice of Customers for Digital Commerce report for the second consecutive year [12] Q&A Session Summary Question: Comment on subscription gross profit and sustainability of gains - Management noted a 190 basis point improvement in subscription gross margin, attributing gains to customer support optimization and the maturity of the partner ecosystem [38] Question: Areas seeing headcount reduction - Management indicated stability in headcount with minor changes, primarily in the support area, but not indicative of a trend [40] Question: Increase in R&D expenses - Management explained the increase in R&D expenses as a strategic investment in product development and innovation, particularly in B2B and retail media [46] Question: Update on U.S. expansion - Management confirmed ongoing momentum in the U.S. market, focusing on high-value enterprise customers and building durable relationships [50] Question: Macro situation in the U.S. and IT budgets - Management highlighted the company's resilience amid macroeconomic volatility, noting that enterprises are reassessing their technology infrastructure for cost efficiency [56] Question: Subscription revenue build-up by geography and category - Management provided qualitative insights, indicating that Brazil is contributing to growth through new customer implementations [68] Question: Economics of the retail ads media business - Management expressed confidence in the retail media business, emphasizing the connection between publishers and advertisers and the rapid growth of the advertiser network [72]