GMV and total revenue YoY growth accelerates to 33.3% and 33.7%, respectively
Gross profit increases 46.1% YoY, representing a margin improvement of 563 bps
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 first quarter of 2022 ended March 31, 2022. VTEX results have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting.”
Geraldo Thomaz Jr., founder and co-CEO of VTEX, commented, “We had a strong first quarter, thanks to the resilience and focus of our teams on delivering our strategic objectives. We also improved gross margin, demonstrating our commitment to efficiency especially under tougher macro conditions.” Mariano Gomide de Faria, founder and co-CEO of VTEX, added, “We are witnessing an increasing momentum in VTEX attractiveness for enterprise brands worldwide. We are committed to continue maximizing growth, while being disciplined in how we deploy capital. We are now a stronger company than ever and we are confident in the long term opportunity for VTEX.”
First Quarter 2022 Operational and Financial Highlights
First Quarter 2022 Commercial Highlights:
First Quarter 2022 Product Innovation Highlights:
We innovate aligned with our guiding principles. VTEX key innovations deployed this quarter and customer use-cases highlighted during VTEX Day were:
Business Outlook
Enterprise brands, retailers and consumers have changed the way they interact since 2020. Ecommerce gained significant traction worldwide and it continues to transform the way commerce is conceptualized.
Nowadays, we are not talking only about physical channels and desktop online channels; but mobile channels, interactive, social and conversational commerce, among others. The incremental complexity of building a proper omnichannel strategy enables VTEX to position itself as the backbone of commerce, integrating all these apparently separate pieces together in one powerful ecosystem.
In view of the aforementioned trends and VTEX’s performance during the first quarter of 2022, and the current macroeconomic uncertainty for global ecommerce, we are currently targeting revenue in the US$37.5 million to US$38.5 million range for the second quarter of 2022, implying a YoY growth of 23% in USD and 20% on an FX neutral basis in the middle of the range.
For the full year 2022, we expect FX neutral YoY revenue growth of 24% to 27%, implying a range of US$160 million to US$164 million, based on the first quarter average FX rates.
In this environment, and looking forward to the full year 2022, we continue to expect delivering significant operating margin expansion.
The business outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond VTEX’s control. See the cautionary note regarding ''Forward-Looking Statements'' below. Fluctuations in VTEX’s operating results may be particularly pronounced in the current economic environment. There can not be assurance that VTEX will achieve these results.
The following table summarizes certain key financial and operating metrics for the three months ended March 31, 2022 and 2021.
Three months ended March 31,
(in millions of US$, except as otherwise indicated)
2022
2021
GMV
2,714.6
2,036.1
GMV growth YoY FXN (1)
27.9%
142.3%
Revenue
34.7
25.9
Revenue growth YoY FXN (1)
29.7%
77.0%
Non-GAAP Subscription gross profit (2)(4)
22.7
16.1
Non-GAAP Subscription gross profit margin (3)(4)
69.6%
65.1%
Non-GAAP income (loss) from operations (4)
(13.7)
(8.5)
Total number of employees
1,765
1,238
(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.
Corresponds to our subscription revenues minus our subscription costs.
Corresponds to our subscription gross profit divided by subscription revenues.
Reconciliation of non-GAAP metrics can be found in tables below.
Conference Call and Webcast
The conference call may be accessed by dialing +1-844-200-6205 (Conference ID – 630556 –) 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
“ARR” means annual recurring revenue, calculated as subscription revenue in the most recent quarter multiplied by four.
“Customers” means companies ranging from small and medium-sized businesses to larger enterprises that pay to use VTEX’s platform.
“GMV” means the total value of customer orders processed through our platform, including value-added taxes and shipping. Our GMV does not include the value of orders processed by our SMB customers or B2B transactions.
“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.
“SSS” means same-store-sales calculated on a yearly basis by dividing the GMV of active online stores in the current period by the GMV of the same active online same stores in the prior period.
“Stores” or “Active Stores” means the number of unique domains generating gross merchandise value. Each customer might have multiple stores.
Special Note Regarding Non-GAAP financial metrics
For the convenience of investors, this document presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP Free Cash Flow and FX Neutral measures.
We understand that Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP 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 subscription gross profit, 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 subscription gross profit to subscription gross profit for the following periods:
Subscription revenue
32.6
24.7
Subscription cost
(10.0)
(8.7)
Subscription gross profit
22.6
15.9
Share-based compensation
0.1
Non-GAAP subscription gross profit
Non-GAAP subscription gross margin
The following table presents a reconciliation of our Non-GAAP expenses to expenses for the following periods:
Sales & Marketing
Sales & Marketing expense
(17.9)
(11.0)
Share-based compensation expense
0.7
Amortization of intangible related to acquisitions
0.3
0.2
Non-GAAP Sales & Marketing expense
(16.9)
(10.1)
Research & Development
Research & Development expense
(13.9)
(8.4)
0.6
1.1
Non-GAAP Research & Development expense
(13.1)
(7.2)
General & Administrative
General & Administrative expense
(6.9)
1.0
1.2
0.0
-
Non-GAAP General & Administrative expense
(5.9)
(6.1)
The following table presents a reconciliation of our Non-GAAP income (loss) from operations to income (loss) from operations for the following periods:
Income (loss) from operations
(16.7)
(12.0)
2.5
3.2
Amortization of intangibles related to acquisitions
0.5
0.4
Non-GAAP income (loss) from operations
The following table presents a reconciliation of our Non-GAAP free cash flow to net cash provided (used) by operating activities for the following periods:
Net cash used in operating activities
(16.0)
(7.4)
Acquisitions of property and equipment
(0.1)
(0.6)
Non-GAAP free cash flow
(16.1)
(8.0)
The following table sets forth the FX neutral measures related to our reported results of the operations for the three months period ended March 31, 2022:
As Reported
FXN
Percentage change
32.1%
31.5
27.7%
Services revenue
2.1
1.3
64.8%
69.2%
Total revenue
33.7%
33.6
14.7%
(10.2)
17.1%
Services cost
(2.6)
(2.1)
23.6%
(2.7)
Total cost
(12.6)
(10.8)
16.4%
(12.9)
19.1%
Gross profit
22.1
15.1
46.1%
20.7
37.3%
Operating expenses
(38.7)
(27.1)
42.8%
(38.3)
41.1%
Income (loss) from operation
38.6%
(17.5)
45.8%
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, 2021, we were trusted by more than 2,400 customers with over 3,200 active online stores across 38 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 interim statement of profit or loss
(Unaudited)
In thousands of U.S. dollars, unless otherwise indicated
Three months ended
March 31, 2022
March 31, 2021
32,580
24,658
2,087
1,266
34,667
25,924
(9,996)
(8,715)
(2,607)
(2,108)
(12,603)
(10,823)
22,064
15,101
General and administrative
(6,921)
(7,223)
Sales and marketing
(17,900)
(11,035)
Research and development
(13,925)
(8,423)
Other income (losses)
8
(449)
Loss from operation
(16,674)
(12,029)
Financial income
4,292
531
Financial expense
(9,013)
(1,886)
Financial result, net
(4,721)
(1,355)
Equity results
219
96
Loss before income tax
(21,176)
(13,288)
Current
(427)
(207)
Deferred
2,512
1,034
Total income tax
2,085
827
Net Loss for the period
(19,091)
(12,461)
Attributable to controlling shareholders
(19,090)
(12,458)
Non-controlling interest
(3)
Loss per share
Basic loss per share
(0.100)
(0.072)
Diluted loss per share
Condensed consolidated interim balance sheet
In thousands of U.S. dollars
December 31, 2021
ASSETS
Current assets
Cash and cash equivalents
99,624
121,006
Restricted cash
810
1,183
Marketable securities and short-term investments
176,061
177,191
Trade receivables
35,386
34,682
Recoverable taxes
7,696
6,881
Deferred commissions
375
263
Prepaid expenses
9,527
7,911
Other current assets
581
399
Total current assets
330,060
349,516
Non-current assets
6,038
6,143
Deferred tax assets
17,469
12,572
464
343
588
556
Deferred Commission
1,645
1,246
Other non-current assets
448
435
Right-of-use assets
6,372
5,183
Property and equipment, net
5,191
4,711
Intangible assets, net
34,394
33,644
Investment in joint venture
321
621
Total non-current assets
72,930
65,454
Total assets
402,990
414,970
LIABILITIES
Current liabilities
Accounts payable and accrued expenses
27,937
29,537
Loans and financing
2,786
Taxes payables
4,304
5,035
Lease liabilities
1,485
1,105
Deferred revenue
20,447
16,598
Derivative financial instruments
133
Accounts payable from acquisition of subsidiaries
3,087
4,260
Other current liabilities
204
Total current liabilities
60,250
58,888
Non-current liabilities
1,112
1,977
497
1,192
Taxes payable
160
5,859
4,886
2,163
17,646
16,204
Deferred tax liabilities
2,357
2,045
Other non-current liabilities
290
266
Total non-current liabilities
27,921
28,893
EQUITY
Issued capital
19
Capital reserve
393,587
390,466
Other reserves
4,248
652
Accumulated losses
(83,045)
(63,955)
Equity attributable to VTEX’s shareholders
314,809
327,182
Non-controlling interests
10
7
Total shareholders’ equity
314,819
327,189
Total liabilities and equity
Condensed consolidated interim statements of cash flows
Loss of the period
(19,916)
Adjustments on loss of the period
Depreciation and amortization
1,094
794
Deferred income tax
(2,512)
(1,034)
Loss on disposal of rights of use, property, equipment, and intangible assets
(46)
28
Allowance for doubtful accounts
122
429
3,099
1,560
Provision for payroll taxes (share-based compensation)
(1,232)
Adjustment of hyperinflation
717
402
Profit on investments in joint venture
(219)
(96)
Fair value losses
3,840
274
Other costs and foreign exchange, net
(1,940)
1,049
Working capital adjustments
(759)
(1,087)
(847)
46
(1,737)
278
Other assets
(306)
148
(1,143)
1,008
(402)
5,291
2,758
Other liabilities
410
(482)
Cash used in operating activities
(15,686)
(6,788)
Income tax paid
(304)
(658)
(15,990)
(7,446)
Cash flows from investing activities
Purchase of short-term investment
(6,587)
Redemption of short-term investment
3,631
Redemption of marketable securities
554
Interest received
285
Payment of subsidiaries net of cash acquired
(1,268)
(13)
(95)
(541)
Net cash provided by (used in) investing activities
(4,319)
Cash flows from financing activities
(718)
Changes in restricted cash
373
212
Proceeds from the exercise of stock options
828
Net-settlement of share-based payment
(598)
Capital increase
1,000
Buyback of shares
(2,344)
Payment of loans and financing
(657)
(9,004)
Interest paid
(20)
(40)
Principal elements of lease payments
(279)
(200)
Lease interest paid
(176)
Net cash used in financing activities
(2,056)
(9,724)
Net decrease in cash and cash equivalents
(22,365)
(16,885)
Cash and cash equivalents, beginning of the year
58,557
Effect of exchange rate changes
983
(1,365)
Cash and cash equivalents, end of the period
40,307
Supplemental cash flow information:
Lease liabilities arising from obtaining right-of-use assets
931
53
Issue of ordinary shares as consideration for a business combination
3
Unpaid amount related to acquisition of non-controlling interest
27
Unpaid amount related to business combinations
6,712
Dividends receivable used to pay accounts from acquisition of subsidiaries
Transactions with non-controlling interests
4
View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005595/en/
Julia Vater Fernández Investor Relations Director investors@vtex.com
Source: VTEX Commerce Cloud Solutions LLC