Financial Data and Key Metrics Changes - In Q4 2024, GMV reached $5.4 billion, representing flat year-over-year growth in USD and an 11% increase in FX neutral terms [25] - Total revenue for Q4 2024 was $61.5 million, growing 1% year-over-year in USD and 12% in FX neutral terms, while full-year revenue reached $226.7 million, representing a 1318% growth in both USD and FX neutral [26][30] - Subscription revenue in Q4 2024 was $59.5 million, a 2% increase in USD and 13% in FX neutral, with full-year subscription revenue at $217.7 million, up from $190.3 million in 2023, indicating a 1420% growth in both USD and FX neutral [28][29] 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 [39] - Existing stores revenue increased to $169 million, with net revenue retention at 104% in FX neutral [30] - New stores contributed approximately 16% of the 2023 Vitex platform revenue, with a 10 percentage point improvement in gross margin year-over-year for new stores [31][92] Market Data and Key Metrics Changes - Revenue generated outside of Brazil accounted for 43.4% of total revenues in 2024, with Brazil's subscription revenue growing 28% in FX neutral [32] - Latin America excluding Brazil saw a 6% increase in subscription revenue in FX neutral, while the rest of the world grew 34% in FX neutral [33] Company Strategy and Development Direction - The company is transitioning from a single product platform to an integrated suite of solutions, enhancing customer stickiness and lifetime value [49][51] - Strategic investments in AI and conversational commerce capabilities are aimed at expanding into new segments and strengthening the company's position as a comprehensive commerce suite [11][37] - The partnership with Accenture aims to modernize digital commerce infrastructure for U.S. enterprises, addressing market challenges [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of softer consumer spending and currency devaluation in Brazil, which affected same-store sales growth [26][65] - Despite short-term challenges, management remains confident in the company's ability to sustain profitable growth through new customer acquisitions and product innovations [28][39] - 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 [38] Other Important Information - The company repurchased 1.8 million Class A common shares at an average price of $6.08 per share, totaling $11.2 million [37] - The operating margin improved to 20.1% in Q4 2024, up from 19.1% in the same quarter of the previous year [35] Q&A Session Summary Question: Guidance for subscription revenue growth in 2025 - Management discussed the guidance reflecting a balanced view of consumption headwinds and operational execution, with expectations for same-store sales growth in FX neutral aligning with Q4 trends [45][46] Question: Impact of transitioning to a platform of solutions on P&L - Management indicated that the transition would enhance customer stickiness and lifetime value without significant short-term impacts on the P&L [48][51] Question: Factors contributing to softness in Brazil - Management noted that the deceleration in same-store sales was influenced by FX devaluation and rising interest rates, particularly affecting home appliance and electronics segments [64][65] Question: Environment in the U.S. under the new administration - Management observed continued sales momentum and pipeline growth in the U.S., with potential volatility creating opportunities for companies to simplify operations [72][74] Question: Assumptions for guidance and challenges in Latin America - Management explained that the guidance incorporates expected recovery in Argentina and ongoing challenges in Brazil, with a focus on new customer implementations [78][82] Question: Payroll tax exemption impact in Brazil - Management stated that the proposed payroll tax changes would have a minimal impact on operating income, with expectations for the impact to diminish over time [89] Question: Margin breakdown for existing and new stores - Management clarified that while new store margins improved, strategic reinvestments in sales and marketing affected overall operating levels, emphasizing long-term customer acquisition value [92][93]