US$2.4 billion GMV, up 25.4% year-over-year on an FX neutral basis Total revenues of US$30.9 million, up 18.2% year-over-year on an FX neutral basis
NEW YORK--(BUSINESS WIRE)-- VTEX (NYSE: VTEX), the enterprise digital commerce platform for premier brands and retailers, the leader in accelerating the digital commerce transformation in Latin America and now expanding globally, today announced results for the second quarter of 2021 ended June 30, 2021. VTEX results have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting.”
Geraldo Thomaz Jr., co-CEO and co-founder of VTEX, commented, “We are humbled to present our first quarterly earnings results as a publicly-traded company. Our robust performance highlights the size of the opportunity of digitalization in the emerging markets, despite the gradual reopening of brick-and-mortar retail.” Mariano Gomide de Faria, co-CEO and co-founder of VTEX, added, “We are focused on transforming the future of ecommerce. We expect to continue to enhance our leadership position in Latin America through strong execution and focus. We are only at the beginning of the digital commerce journey and VTEX is here to accelerate it.”
Second Quarter 2021 Operational and Financial Highlights
Second Quarter 2021 Product Innovation Highlights:
Business Outlook
We are seeing the economy slowly recover in 2021, rebounding from the contraction of 2020, due to the adverse effects of the COVID-19 pandemic.
Online commerce penetration in Latin America continues at a higher level than it was pre-pandemic, demonstrating that the 2020 quarantine-related acceleration in online consumption appears sustainable, even as brick-and-mortar retail stores gradually reopen throughout the region.
Our customers with brick-and-mortar retail presence can now operate an omni-channel strategy. We expect our business to face similar year-over-year trends in the third quarter and start to normalize towards the end of 2021. We believe that the strong sector tailwinds will continue to drive our growth and overall ecommerce growth rates in the region, despite the near-term year-over-year comps. We expect seasonal patterns to remain the same as in prior years and expect that our revenue will grow sequentially for the remaining quarters in 2021.
In view of the aforementioned trends and VTEX’s performance during the six months ending June 30, 2021, we currently expect to deliver growth at healthy levels. We are targeting revenue in the US$31.0 million to US$31.5 million range for the third quarter of 2021, and US$124 million to US$126 million range for the fiscal year ended December 31, 2021, assuming current period FX rates.
Importantly, we will continue to invest to grow our business as we work towards continuing to enhance our leadership position in Latin America and explore new opportunities outside the region.
The business outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond VTEX’s control. See the cautionary note regarding ''Forward-Looking Statements'' below. Fluctuations in VTEX’s operating results may be particularly pronounced in the current economic environment. There can not be assurance that VTEX will achieve these results.
The following table summarizes certain key financial and operating metrics for the three and six months ended June 30, 2021 and 2020.
Three months ended June 30th
Six months ended June 30th
(in millions of US$, except as otherwise indicated)
2021
2020
GMV
2,439.3
1,870.8
4,475.3
2,823.2
GMV growth YoY FXN (1)
25.4%
178.0%
64.8%
108.6%
Revenue
30.9
25.3
56.8
41.9
Revenue growth YoY FXN (1)
18.2%
118.6%
41.5%
84.2%
Subscription gross profit (2)
20.2
18.1
36.1
28.5
Subscription gross profit margin (2)
68.1%
75.7%
66.5%
72.4%
Non-GAAP income (loss) from operations (3)
(10.4)
6.7
(18.9)
4.3
Total number of employees
1,486
790
(1)
Calculated by using the average monthly exchange rates for the applicable months during 2020, adjusted by inflation in countries with hyperinflation, and applying them to the corresponding months in 2021, as applicable, so as to calculate what our results would have been had exchange rates remained stable from one year to the next.
(2)
Corresponds to our subscription revenues minus our subscription costs.
(3)
For a reconciliation of non-GAAP income (loss) from operations to income (loss) from operations, can be found in tables below.
Conference Call and Webcast
The conference call may be accessed by dialing +1-844-200-6205 (Conference ID – 217753 –) and requesting inclusion in the call for VTEX.
The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at https://www.investors.vtex.com/.
An archive of the webcast will be available for one week following the conclusion of the conference call.
Definition of Selected Operational Metrics
“GMV” means the total value of the orders processed through our platform, including value-added taxes and shipping.
"Stores" or "Active online stores" means the number of unique domains generating gross merchandise value. Each customer might have multiple stores.
“FX Neutral” or “FXN” means a way of using the average monthly exchange rates for each month during the previous year, adjusted by inflation in countries with hyper-inflation, and applying them to the corresponding months of the current year, so as to calculate what results would have been had exchange rates remained stable from one year to the next.
“Customers” means companies ranging from small and medium-sized businesses to larger enterprises that pay to use VTEX’s platform.
Special Note Regarding Non-GAAP financial metrics
For convenience of investors, this document presents certain non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP Income (Loss) from Operations, Free Cash Flow and FX Neutral measures.
We understand that Non-GAAP Income (Loss) from Operations, Free Cash Flow and FX Neutral measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations presented in accordance with IFRS. Additionally, our calculations of Non-GAAP Income (Loss) from Operations, Free Cash Flow and FX Neutral measures may be different from the calculation used by other companies, including our competitors, and therefore, our measures may not be comparable to those of other companies.
Reconciliation of Non-GAAP measures
The following table presents a reconciliation of our Non-GAAP Income (loss) from operations for the following periods:
Income (loss) from operation
(16.4)
6.1
(28.4)
3.1
Share-based compensation expense
5.5
0.4
8.7
0.7
Amortization of intangibles related to acquisitions
0.5
0.2
0.8
Non-GAAP income (loss) from operations
The following table presents a reconciliation of our Non-GAAP free cash flow from operation for the following periods:
Net cash provided (used) by operating activities
(14.2)
5.6
(21.6)
(3.8)
Acquisitions of property and equipment
(0.5)
(0.2)
(1.1)
(0.7)
Non-GAAP free cash flow
(14.7)
5.4
(22.7)
(4.5)
The following table sets forth the FX neutral measures related to our reported results of the operations for the three months period ended June 30, 2021:
As Reported
FXN
Percentage change
Subscription revenue
29.7
23.9
23.9%
28.7
20.0%
Services revenue
1.2
1.3
(9.0)%
(12.5)%
Total revenue
22.1%
29.9
Subscription cost
(9.5)
(5.8)
62.5%
(9.3)
60.2%
Services cost
(2.8)
(1.7)
66.3%
(2.6)
55.8%
Total cost
(12.2)
(7.5)
63.4%
(11.9)
59.2%
Gross profit
18.7
17.8
4.8%
18.0
1.0%
Operating expenses
(35.0)
(11.7)
200.4%
(33.6)
188.5%
n/a
(15.7)
This announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" nor a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements." The financial information in this press release has not been audited.
About VTEX
VTEX provides a software-as-a-service digital commerce platform for enterprise brands and retailers. Our platform enables our customers to execute their commerce strategy, including building online stores, integrating and managing orders across channels, and creating marketplaces to sell products from third-party vendors. Founded in Brazil, we have been a leader in accelerating the digital commerce transformation in Latin America and are expanding globally. Our platform is engineered to enterprise-level standards and functionality. As of December 31, 2020, we were trusted by more than 2,000 customers with over 2,500 active online stores across 32 countries to connect with their consumers in a meaningful way.
Forward-looking Statements
This announcement contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange of 1934, as amended. Statements contained herein that are not clearly historical in nature, including statements about the VTEX strategies and business plans, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” ”strategy,” “project,” “target” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions are generally intended to identify forward-looking statements.
VTEX may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission, or the SEC, in press releases and other written materials and in oral statements made by its officers and directors. These forward-looking statements speak only as of the date they are made and are based on the VTEX’s current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond VTEX’s control. A number of factors and risks could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in VTEX filings with the SEC.
As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this announcement. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented as there is no guarantee that expected events, trends or results will actually occur. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.
This announcement may also contain estimates and other information concerning our industry that are based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.
VTEX
Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars, unaudited)
Three months ended
Six months ended
June 30, 2021
June 30, 2020
29,652
23,937
54,310
39,379
1,217
1,338
2,483
2,538
30,869
25,275
56,793
41,917
(9,461)
(5,821)
(18,176)
(10,881)
(2,757)
(1,659)
(4,865)
(3,337)
(12,218)
(7,480)
(23,041)
(14,218)
18,651
17,795
33,752
27,699
General and administrative
(7,806)
(2,402)
(15,029)
(5,505)
Sales and marketing
(15,697)
(5,360)
(26,732)
(11,106)
Research and development
(10,669)
(3,638)
(19,092)
(7,700)
Other income (losses)
(868)
(263)
(1,317)
(310)
(16,389)
6,132
(28,418)
3,078
Finance income
2,136
2,714
2,548
1,620
Finance expense
(3,490)
(1,145)
(5,257)
(2,848)
Financial result, net
(1,354)
1,569
(2,709)
(1,228)
Equity results
139
1
235
(9)
Income (loss) before income tax
(17,604)
7,702
(30,892)
1,841
Income tax
Current
(297)
(1,598)
(504)
(1,756)
Deferred
2,432
(442)
3,466
379
Net income (loss) for the period
(15,469)
5,662
(27,930)
464
Attributable to controlling shareholders
5,619
(27,927)
417
Non-controlling interest
-
43
47
USD
Earnings (loss) per share
Basic earnings (loss) per share
(0.090)
0.034
(0.163)
0.003
Diluted earnings (loss) per share
0.033
Comprehensive Income (Loss)
Items that are or may be reclassified subsequently to profit or loss:
Foreign cumulative conversion adjustment
847
(441)
304
(1,395)
Total comprehensive loss for the period
(14,622)
5,221
(27,626)
(931)
Condensed Consolidated Balance Sheet
December 31, 2020
ASSETS
Current assets
Cash and cash equivalents
23,598
58,557
Restricted cash
1,360
1,429
Marketable securities
13,503
16,969
Trade receivables
31,330
24,491
Recoverable taxes
4,257
4,071
Deferred commissions
191
438
Prepaid expenses - Current
6,103
2,379
Derivative financial instruments - Curt assets
174
Other current assets
278
223
Total current assets
80,620
108,731
Non-current assets
Deferred tax assets
5,840
2,174
Prepaid expenses
1,860
3,134
535
674
Deferred Commission
1,160
389
Other
221
53
Right-of-use assets
5,611
5,076
Property and equipment, net
5,361
4,551
Intangible assets, net
37,256
15,093
Investment in joint venture
310
136
Total non-current assets
58,154
31,280
Total assets
138,774
140,011
LIABILITIES
Current liabilities
Accounts payable and accrued expenses
28,465
20,709
Loans and financing
2,135
1,585
Taxes payables
3,240
6,790
Lease liabilities
969
850
Deferred revenue
16,837
14,170
Derivative financial instruments
Accounts payable from acquisition of subsidiaries
8,686
2,794
80
159
Total current liabilities
60,716
47,057
Non-current liabilities
2,826
4,774
5,492
5,303
1,687
1,206
10,543
5,005
Deferred tax liabilities
2,162
731
269
187
Total non-current liabilities
22,979
17,206
EQUITY
Issued capital
17
Capital reserve
86,025
78,945
Other comprehensive income
408
104
Accumulated losses
(31,371)
(3,444)
Equity attributable to VTEX’s shareholders
55,079
75,622
Non-controlling interests
126
Total shareholders’ equity
75,748
Total liabilities and equity
Condensed Consolidated Statements of Cash Flows
Net income (loss) of the period
Adjustments on income ( loss) for the period
Depreciation and amortization
1, 814
1,270
Deferred income tax
(3,466)
(379)
Loss on disposal of property, equipment and intangible assets
34
Allowance for doubtful accounts
294
744
Share-based compensation
3,995
702
Adjustment of hyperinflation
876
Loss (profit) on investments in joint venture
(235)
9
Fair value gain (losses)
(88)
(76)
Other costs and foreign exchange, net
27
(2,093)
Working capital adjustments
(6,553)
(8,760)
(47)
(4)
(2,450)
(2,752)
Other assets
28
(546)
9,422
1,570
Taxes payable
206
2,915
6,894
6,102
Other liabilities
(525)
(1,889)
Cash used in operating activities
(17,737)
(2,563)
Income tax paid
(3,879)
(1,193)
Net cash used in operating activities
(21,616)
(3,756)
Cash flows from investing activities
Redemption of marketable securities
3,316
Interest received
384
757
Acquisition of subsidiaries net of cash acquired
(4,449)
(2,599)
(1,065)
(734)
Net cash used in investing activities
(1,814)
(2,576)
Cash flows from financing activities
Changes in restricted cash
69
Proceeds from the exercise of stock options
927
52
Capital increase
1,000
Buyback of shares
(2,423)
Payment of loans and financing
(9,653)
(1,159)
Interest paid
(59)
(78)
Principal elements of lease payments
(460)
(102)
Lease interest paid
(351)
(395)
Net cash used in financing activities
(10,950)
(951)
Net decrease in cash and cash equivalents
(34,380)
(7,283)
Cash and cash equivalents, beginning of the period
29,762
Effect of exchange rate changes
(579)
2,632
Cash and cash equivalents, end of the period
25,111
Supplemental cash flow information:
Lease liabilities arising from obtaining right-of-use assets
156
37
Issue of ordinary shares as consideration for a business combination
1,469
Unpaid amount related to acquisition of non-controlling interest
Unpaid amount related to business combinations
9,810
View source version on businesswire.com: https://www.businesswire.com/news/home/20210817005767/en/
Julia Vater Fernández Investor Relations Director investors@vtex.com
Source: VTEX Commerce Cloud Solutions LLC