VTEX (NYSE:VTEX) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Company ParticipantsGeraldo Thomaz Jr. - Founder and Co-CEOJulia Vater Fernández - VP of Investor RelationsLucca Brendim - Equity Research AssociateMaddie Schrage - VP of Equity ResearchMariano Gomide de Faria - Founder and Co-CEORafael Oliveira - Equity Research InternRicardo Camatta Sodré - CFOConference Call ParticipantsLivea Mitsubara - Equity Research AnalystJulia Vater FernándezHello everyone, welcome to the VTEX Earnings Conference ...

VTEX (NYSE:VTEX) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Company ParticipantsGeraldo Thomaz Jr. - Founder and Co-CEOJulia Vater Fernández - VP of Investor RelationsLucca Brendim - Equity Research AssociateMaddie Schrage - VP of Equity ResearchMariano Gomide de Faria - Founder and Co-CEORafael Oliveira - Equity Research InternRicardo Camatta Sodré - CFOConference Call ParticipantsLivea Mitsubara - Equity Research AnalystJulia Vater FernándezHello everyone, welcome to the VTEX Earnings Conference ...

Financial Data and Key Metrics Changes - In Q4 2025, GMV reached $6.3 billion, representing a year-over-year growth of 17.2% in US dollars and 10.0% in FX-neutral terms [14] - For the full year, GMV reached $20.5 billion, up 12.1% in US dollars and 12.9% in FX-neutral [15] - Subscription revenue in Q4 was $66.7 million, growing 12.2% year-over-year in US dollars and 5.4% in FX-neutral [15] - For the full year, subscription revenue was $234.9 million, growing 7.9% in US dollars and 9.5% in FX-neutral [15] - Annual dollar churn remained broadly stable year-over-year, with net revenue retention at 99.5% in FX-neutral [15][16] - Existing stores' gross margin increased from 80% in 2024 to 82% in 2025, while operating margin reached 44% [16] Business Line Data and Key Metrics Changes - Customers generating over $250,000 in ARR reached 158, with revenue from this cohort up 13% year-over-year [5] - Subscription revenue from global markets grew 19.2% in FX-neutral, contributing 11.1% to total revenue [19] - Subscription revenue in Brazil grew 12.2% in FX-neutral, while Latin America excluding Brazil grew 2.1% [18] Market Data and Key Metrics Changes - Global markets delivered 22% subscription revenue growth in 2025, with significant contributions from Europe [6] - B2B demand in the US and Europe is showing durable growth, with half of new deals in these regions being B2B related [46] Company Strategy and Development Direction - The company is focusing on four growth levers: global expansion, B2B, retail media, and AI [5][22] - The strategy includes a disciplined execution plan to improve growth and profitability while investing in R&D for AI transformation [10][22] - The company aims to evolve from a commerce platform to a multi-product AI-first platform [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that recent growth has been below long-term ambitions due to external factors like macroeconomic challenges in Brazil and Argentina [3] - The company remains optimistic about its competitive position and the quality of new customer additions despite macro headwinds [23] - For Q1 2026, the company expects subscription revenue to grow at a mid-single-digit percentage rate on a FX-neutral basis [23] Other Important Information - Free cash flow reached $11.1 million in Q4, representing a 16.3% margin [21] - A new $50 million share repurchase program for Class A shares was announced [21] Q&A Session Summary Question: Can you provide insights on the elongated sales cycle and any market intelligence regarding normalization? - Management noted that the elongation of sales cycles is due to macro scenarios and uncertainty around AI, with stable win rates and churn [31] Question: What are the main risks and opportunities of AI for the company? - AI is seen as a structural shift that enhances the company's position as a mission-critical orchestration layer for commerce [36] Question: How is the B2B pipeline evolving? - B2B is gaining traction, with roughly half of new deals in the US and EMEA being B2B related, effectively doubling the addressable market [49] Question: How does the company plan to allocate capital moving forward? - The company prioritizes long-term value creation, with a focus on R&D investments and a disciplined approach to share buybacks [40] Question: What are the main drivers for revenue growth back to double digits? - The company anticipates growth from global expansion, B2B commerce, retail media, and an AI-first approach, with expectations of gradual acceleration in 2026 [46][48]

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]