VTEX(US:VTEX)2026-02-26 22:30Financial 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]