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 [25][30] - Gross profit reached $41 million, a 22% growth in FX neutral terms, with a 3.7 percentage points margin increase year over year [5][30] - Non-GAAP operating income increased to $5.3 million, an 85% growth year over year, with a 4.2 percentage points margin increase [5][30] - Non-GAAP net income for Q1 2025 was $5.3 million, more than doubling year over year, with a 10% margin [29][30] - Free cash flow reached $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][30] 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 [26][30] - Total gross margin rose to 76%, up 371 basis points year over year, driven by a lower mix of services revenue [26][30] 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 [25][30] - The company continues to expand its presence in various markets, including new customer launches in Argentina, Brazil, Colombia, Ecuador, Spain, Mexico, and the U.S. [7][8] Company Strategy and Development Direction - The company is focusing on expanding its product suite and enhancing operational efficiency through AI and automation [6][43] - A strategic emphasis is placed on B2B commerce and retail media, with the acquisition of Newpeo to enhance retail advertising capabilities [13][30] - The company aims to evolve from a single platform to a comprehensive suite of commerce products, reinforcing its position as a trusted partner for global enterprises [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's profitable growth trajectory despite macroeconomic volatility [30][54] - 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 [30][54] - Management highlighted the importance of maintaining a disciplined approach to cost and expenses while focusing on customer value [57][30] 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][30] - The company was recognized as a customer choice in the 2025 Gartner Voice of Customers for Digital Commerce report for the second consecutive year [11][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 [35][36] Question: Areas seeing headcount reduction - Management indicated stability in headcount with minor changes primarily in the support area, not reflecting a trend [38] 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 [42][43] Question: Update on U.S. expansion - Management confirmed ongoing momentum in U.S. sales, focusing on high-value enterprise customers and building durable relationships [46][47] 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 [52][54] Question: Subscription revenue build-up by geography and category - Management provided qualitative insights, indicating Brazil's contribution to growth through new customer implementations [65] Question: Economics of retail 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 post-acquisition [68][69]

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]

Financial Data and Key Metrics Changes - In Q4 2024, GMV reached $5.4 billion, showing flat year-over-year growth in US dollars and an 11% increase in FX-neutral terms [39] - Revenue totaled $61.5 million, growing 1% year-over-year in US dollars and 12% in FX-neutral for Q4 2024, while full-year revenue reached $226.7 million, representing 13% and 18% growth in US dollars and FX-neutral respectively [40][94] - Subscription revenue for Q4 2024 was $59.5 million, a 2% increase in US dollars and 13% in FX-neutral, with full-year subscription revenue at $217.7 million, up from $190.3 million in 2023, indicating 14% and 20% growth in US dollars and FX-neutral [43][97] Business Line Data and Key Metrics Changes - The number of customers generating over $250,000 in annual recurring revenue increased by 23%, while annual revenue churn remained stable in the mid-single digits [58] - Existing stores' revenue increased to $169 million, with a net revenue retention rate of 104% in FX-neutral [98][100] - Subscription gross margin improved to 78.9% in Q4 2024, up from 78.6% in the same period last year [104] Market Data and Key Metrics Changes - Revenue generated outside Brazil accounted for 43.4% of total revenues in 2024, with Brazil's subscription revenue growing 28% in FX-neutral [101][102] - Latin America excluding Brazil saw a 6% increase in subscription revenue in FX-neutral, while the Rest of the World subscription revenue grew 34% in FX-neutral [102] Company Strategy and Development Direction - VTEX aims to transition from a single product platform to an integrated suite of solutions, expanding its offerings to include B2C, B2B, Sales App, and more [72] - Strategic investments in AI and conversational commerce capabilities, including a stake in Synerise and the acquisition of Weni, are intended to enhance VTEX's product suite and market position [18][73] - The company is focused on building trust with customers and delivering on promises, positioning itself as a comprehensive commerce suite for enterprises [19][73] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Brazil due to softer consumer spending and currency devaluation but expressed confidence in sustaining profitable growth through new customer acquisitions and product innovations [41][96] - The company targets FX-neutral year-over-year subscription revenue growth of 13% to 15% for Q1 2025 and 14% to 17% for the full year 2025 [56][57] - Management remains optimistic about future opportunities despite short-term growth rate challenges, emphasizing strong operational indicators [57][58] Other Important Information - A new share-repurchase program was approved, allowing the repurchase of up to $30 million in Class A common shares [108] - The company repurchased 1.8 million Class A common shares at an average price of $6.08 per share, totaling $11.2 million in Q4 2024 [108] Q&A Session Summary Question: What are the expectations for subscription revenue growth in 2025? - The company is targeting FX-neutral year-over-year subscription revenue growth of 13% to 15% for Q1 2025 and 14% to 17% for the full year 2025 [56][57] Question: How is the company addressing the challenges in Brazil? - Management highlighted the importance of new customer acquisitions and product innovations to sustain growth despite the challenging consumption environment in Brazil [41][96] Question: What strategic investments has the company made recently? - VTEX made strategic investments in AI and conversational commerce capabilities, including a stake in Synerise and the acquisition of Weni, to enhance its product offerings [18][73]