VTEX - Earnings call transcript Q1 2022

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Operator

And welcome to the VTEX Reports First Quarter 2022 Financial Results. My name is Brika and I’ll be today’s event specialist. There will be a question-and-answer session. [Operator Instructions] Your host for today’s call will be Julia Vater Fernández.

So Julia, please begin when you’re ready.

Julia Vater Fernández

to March earnings XXst, welcome the call and ended quarter XXXX. everyone, the conference VTEX for Hello I am Julia VTEX. Vater Fernández, Investor Relations Director for

senior Sodre, are Co-CEO; today executives Jr., Our and Founder Geraldo and Executive Finance Thomaz Camatta Officer. Ricardo presenting

and relating and you Additionally, and Chief make that available today’s management Andre be would I statements Co-CEO; Q&A technology Mariano may will company, Faria, and such session. product matters and Officer, industry prospects to on events. based like Spolidoro, the de during Gomide continued Founder our Financial future expectations to information These forward-looking remind as trends initiatives. our growth for assumptions, projections available are about statements and currently current

currently undue the believe XX, with Factors not Forward-Looking on XX-F Statements assumptions, While that sections available described of on are reliance expectations are which you Relations our Securities reasonable are are VTEX’s our forward-looking and filings to Form uncertainties projections VTEX’s risks cautioned statements. of other under available Investor December Certain website. place we year for the and Exchange Commission information, these the and Risk in ended and U.S. and view XXXX

call Relations that our non-GAAP measures would first on XXXX remind I to be in this discuss can nearest available found comparable the the earnings release Investor measures. our to quarter may you like of course conference A Finally, reconciliation those press we some during website. of GAAP measures

Geraldo, floor let the Now, to yours. is me turn over the call Geraldo.

Geraldo Thomaz Jr.

quarter. year earnings with and joining first XXXX first started for our the thanks call. Thank Welcome strong conference everyone, you, Julia. quarter a We’ve

in progress as America, America and a year. the position first making digital of verticals in in VTEX I’m groceries the sentiment as as backbone continued landscape of and in all global delivered to all in performance, global high on performance, were solid business of verticals, the consequence growth, Our our strengthening a the such that across our robust healthier year-over-year well In good you execution second update beauty leader GMV and commerce. Latin excited electronics, quarter, footprint. in such regions, and has our some shortages solidifying growth recovery XX% last as as of with above USD. growth accessories, health consumer the inventory half initial apparel by as its Meanwhile, affected Latin

As XX.X% to fourth a in our dollars, growth percentage consequence, accelerated in growth. points increases GMV resulting U.S. XX.X versus GMV quarter

traction. performance here is the region outpaced strong this Another that indications highlight Mexico’s of quarter, showing

premier continue brands and We attracting retailers.

than stores year. last the we the in more quarter backlog platform, into of production bringing attractive mentioned amount, we dollar go-lives VTEX the new second half demonstrating during doubled, we This in that the are of

before Mexico, new the presence countries Peru, Canada, EcoWater in customers and in that Colgate this in quarter online store respective Some Boston that Group Armour Brazil. in Under Xiaomi Medical have went didn’t live were: Uruguay, in in

we Moulinex and customers We Stratton had our other sales contract continue Argentina, Chile. also we a our quarter during new the Furthermore, build the us which & in model. sticky momentum business to migrated in give entrenched, added top that Arcor U.S., in competitive customers, strong Briggs in in platforms Brazil, Angeloni in new signatures, relationships confidence stores’ momentum customers. of sustainability On with of existing Easy including the healthy from and in

America; Singapore, the Whirlpool countries other added Argentina; currently Latin in in seven brands operating operating by opening from new region; premier America, eight Walmart that in us Poland the online five Latin in now America, with countries additionally previously countries Central were: was to XX and H&M four added countries who operations globe. across to added in AB operations stores the Oster, first with and expanding during the added expanded us Colombia, their in six in InBev Mexico, retailers new Some countries America. and now France, across countries quarter their totaling India, Latin

Additionally, Voice the named report VTEX Commerce Gartner a Digital Insights in Strong Performer. of this Gartner review, where year Peer Customer: published March its was of

us that One of is gives We continue of future. customer our We a are our VTEX most forward to collaboration. force of towards to multiplying the validation pushing willing others, our proud alone. the based the we scores customer are on highest We feedback, reviewers peers. things and we January of is believe this know cannot product technology, our huge the the in believe XXXX, all as in purely of recommend of that this and XX% desirable confidence amongst report VTEX to do

our advantages is continue partners. EBANX, One we we well Libre. TikTok, competitive our and nurture last key of Mercado earnings strategic to our and will our partnership release, launched Since ecosystem, that’s with expanded why as our partnerships Paypal, have with as expand

our to with payments excellent and EBANX of bring ecosystem. Subsequent to to and launched TikTok. markets line monetization strengthen aims quarter VTEX solutions our local customers close partnership the for trade technological this XXXX, and contribute our we’ve in partnerships partnership will we further cross-border Paypal strategy with the In Our the operate. the internationalization strategy, XX first of with where to

of aim payment payments able grow volume companies union, this to through Brazilian XXX that will pillars the this Brazilian through flows Latin monetized EBANX on XX on EBANX across VTEX is in than will cross-border the a Latin with enjoy Paypal, solution. cross-border partnership ways complete partnership, in Latin payment methods With ecommerce to also broaden in Through America. platform. the of we reinforce our to payments countries more for Similarly Our which our with be business America. is rebate offer one America, platform, a companies to to new the partnership collaboration focused their be customers

directly asset with customers social TikTok, We offer the an process app in to integrate media to in our for app for giant. with that customer’s Tiktok that business store also the available partnered order is improving VTEX all sharing

products. help ads customers also avoid accurate to get to more better will features help this out-of-stock or for This and app expect as customers our use will results, sold-out consumers find be business We in VTEX’s TikTok ads to LatAm, to products Initially Admin and it in Asia coming the the on U.S. be for other it months, available countries and for customers Europe, expanded in Brazil will will VTEX directly.

significant are Reserva, We in we not share already to as L’Oreal, now but that to many happy addition are such Last, the we that early adopters least, have Brazil, the Carrefour, to others. app have test among anxious This of journey global part with Mercado integrations network Argentina, natively a certified milestone is to connects vast every the our Chile, commerce Colombia ecosystem. that and the Peru. center digital of in Libre a in become

going up to our our to cases like I’d wrapping innovation time, our This Day. revisit Before that priorities. section customers strategic on VTEX with product focus now shared the during four update audience I’m

improves consumer. it are Starting warehouse, a directly multinational VTEX items, the over America the accessories. the Whenever a Latin This event fashion commerce transparent the with Day both besides also delivers demonstration own its fashion of and platform a Day does is is in rate inventory, between XX,XXX VTEX connection C&A, connection fulfillment additional C&A enhancing collaboration to from its Sao smartphone, Samsung’s experience. third Samsung in two attendees retailer the benefitting digital a of clear C&A’s product this in enables also For world. conversion sells stock are out the that, days. friction and and smartphone an smartphones frictionless in and largest Taking while With place the during had C&A VTEX context, largest to is which our onboarding sells pillar. end-customer zero how brands’ and Samsung and the significantly inventory, Paulo,

in is the megastore the a pioneer pet XXX care concept Cobasi, from one home than pets garden of Another interesting the with focused especially case in stores. largest of the and one more and Brazil, shops on

solutions, all benefits the OMS, customers they a sellers simplify more Cobasi they and from Day, portal, VTEX internal During others. and consistent important, including that among VTEX experience make across Cobasi to commerce, after processes enables offer multiple store, their channels. shipping to adopting external marketplace, live sure inStore, That witnessed shared

on changes, instance, In to to for source XX% platform. enabled Whirlpool commercialize build and brand top with the such since of line the our in-house panel centralizing a structural channels orders. about having building their as become every their store of omnichannel their digital tech critical increased adopted Building control to Whirlpool VTEX to the they multiple products business VTEX this talked on solutions they and time internally an as one For they the of team. of vision During deliveries team technology two single from total challenges Cobasi required manufacturer. transformation the Their order, digitalizing of Day, huge penetration for XX% of feature, reduced relevancy our hours truth shipping delivery their highlighted

the internally and Whirlpool of through platform. supply solutions is integration chain on of the to outcomes the VTEX of top One this project, business build partnership critical which

with One sea. of Along located in is refrigerator far consolidates in VTEX to the precision goes of unified all is project, inStore. increase driving regions this indicators, integration distribution in product as through the which strategy channels. the transforming enabling a business chain This a middle this of delivery a the on NPS Decathlon Whirlpool and the time achieved by this, outcomes as place the of line, in information capability positive supply such all single brick-and-mortar XX%. With impact with a consumer sell currently in partnership manufacturer and Whirlpool an stores role container also a commerce as

bet implementation successful aisle of stated sales Decathlon module in customer for across fulfillment the Day, foundation our convergence the VTEX chain stores. the its sporting all channels on that endless experiences. The During and goods is

sales the inventory to aisle order with and customer. available and endless lose the other opportunity store the even ecommerce stores, to rep not access With rep enabling all has the the the sales place capability,

represent and over with customer panel and catalog of orders by run aligned solution Decathlon the for assortment using warehouses capabilities, has with the endless now companies able expanding VTEX place, inventory Leveraging XX,XXX X% is every pillar. the chances placed order product Decathlon, journey a full which conversion Decathlon in to For brick-and-mortar single currently their aisle that SKUs, single such physical large total catalog sales. stores. control shared of both a increases our in-store as the

shared Day Samsung adoption live journey. VTEX its shopping during Additionally,

Galaxy another sold they only SXX launched event XX VTEX panel minutes. our As In case new they is this a thousand than control Samsung XG. almost the the live had GMV, XX vision for in they use engaging where shopping every becoming Mexico $X of viewers, more single a highlight, This demonstration order. million in event quarter in a of

our throughout base. Looking Shopping customer Live VTEX’s app adoption at

events XX XXXX, We with started others, XXXX XXX March in solution. month-over-month. have Along a trend than companies ended During Nestlé, many quarter the had Coca-Cola, quarter already we Live more with January Grupo like the adopted the Cencosud, positive of events among first Éxito, in with the events, year Shopping XX XXXX. Samsung, with and Fravega,

first of first Additionally, event U.S. our and to XX, with we had XXXX, the on in April subsequent Motorola. Live the quarter Shopping

also accounts. offering Kors efficient deliveries. to partner of experience around the with demonstration cost of our of to now The experience their transformation. auto-pilot are acts case each and for over Michael to live delivering route but they’ve digital shipping and co-pilot in shipping is only with commerce on adoption are functionality network improvements Kors product VTEX we of We been focused them across XXX broker able Michael succeed Michael delivery. services, new their shipping and shared choosing traceability This times Kors help from their how feature. XX% efficiencies shared the customers XX of as use on new the terms shopping in most and countries a not SLAs, active our the a savings, with reach, in delivery

of our logistics revenue. their industry around shipping in commerce with significant Michael customers’ increase shipping market are cost VTEX low point XX% represent broadly. single experiencing income. Kors digit Looking According adopters Shipping of more percentage Network the a aligned the sources, at case, costs operating leading savings, our digital to opportunity Early to

to to proud in choice the attracting our of development scaling our gaining partners operational active digital are XX,XXX section, XXXX customers, insatiably accessing the thank momentum our platform community VTEX up X,XXX more than development developers of the our fourth continued increased low-code the Wrapping well would developers in platform, first than commerce, that we and as and fulfill and On capabilities. to announce Monthly portal quarter mission, I quarter for have the we worked continue XX,XXX that investors. of VTEXers from our more update as like working to in XXXX. to our

for report so Ricardo, to call financial quarter. the our the cover turn he will I can Now progress

Ricardo Camatta Sodre

Thank the financial you quarter update of pleasure you, to Geraldo. Hi everyone, first it’s for be our XXXX. a here performance on

U.S. revenue basis. basis. dollars total year-over-year implementation quarter basis. U.S. on the of same of revenue year. neutral our we and XX.X% the by on growth explained by of FX of in our quarter XX.X% first $XX.X of sales of same-store represented was was top leads XX.X% to year Subscription million to the by XX.X% $XX.X coming first an the dollars revenue quarter driven is of increased our last versus This strong increased in sales this This an million backlog of revenue. on XX.X% million, neutral Subscription revenue growth a are in acceleration quarter in of and neutral a existing This our stores increase increase our increase new $XX.X year-over-year on to in Furthermore, FX the rate an XX.X% the a FX same online. increase customers significant increases in quarter last in XX.X% XXXX, services having, momentum and and from XXXX, revenue

reaching our year-over-year XX.X% to in The improvement million quarter gross code’s the cost margin million, and in a P&L. first overall improvement gross of the basis quarter XXXX. subscription improve first quarter points the our gross to margin as compared operational down to of non-core was million, $XX.X hosting moving basis a Non-GAAP reflects efficiencies, same On year-over-year margin, XXX and XXXX. migrate points. hosting we gross which the compared profit representing gross subscription of Non-GAAP of profit XX.X% services $XX.X margin top of $XX.X also XXX was increased we led increase our services expansion, of XXXX, XX.X% in subscription Now, efficiency.

Our been sales personnel-related development, capture penetration in XXXX, as and we the million $XX.X incremental ecommerce. million non-GAAP investments share market XXXX, loss marketing, compared to in primarily of to first benefit further to $X.X first from quarter have and quarter of operations during due the and and the from research was of investing

unit our attractive our see online to investments to stores continue economics bring We from new to platform.

commerce, among side, have related our and key also to investment of areas social FastStore, shopping, as conversational BXB, ^shipping some live such We others. VTEX product network,

our committed of to pursue as be are fundamental going our disciplined to believe for we opportunities while resources. they We continue to are these growth, on being long-term allocation

$XX.X top-line million on XX, quarter XX% of a of quarter-over-quarter, top reflection the negative perspective, VTEX while the our three As of XXXX, March generative cash in the we free almost deliver acceleration months of historically cash to flow, towards as ended flow a free $XX.X compared is negative scenario, of had cash to sequential a capability have. million improvement fourth moving XXXX. growth, the on sustainable This

end of cash the important to of XXXX $XXX In that XXXX, On to employees quarter sheet. addition, cash the we employees our of moderate increased is quarter X.X% balance than from fourth We with ended at are top the the a in end X,XXX it million of net mention more by the committed first increase X,XXX efficiency. we to this our in quarter-over-quarter. position, headcount strong quarter

operating months. Our team $XX.X increased expenses of onboarded higher last X.X% given non-GAAP from some over a million senior of million, $XX.X total slightly couple our quarter-over-quarter hires increase in we the to

our quarter-over-quarter operating delivered expect to impact expenses of delivering While we increase expect QX one-off XXXX, even continue QX, looking in we in remainder on VTEX QX. expenses will the Day margin some to our have reflect to expansion. Therefore, an lower we significant QX and forward than

while volatility customers’ macroeconomic in outlook, uncertainty and see GMV had to in we performance we our a future our performance. QX, Regarding significant year-over-year solid continue

the the year-over-year significantly a in growth are to basis XXXX important with we Latin U.S. million harder of range. is Therefore, million currently of March year-over-year note of the comp for has $XX.X targeting revenue second to the of that XX% implying XX% of an neutral the increasing due quarter to Additionally, in a $XX.X on XXXX, second of and FX the middle in COVID quarter year. dollars second to from in wave it America, cases last June range the

a full XX% the implying first million mentioned, year-over-year today’s to the of range and to based a expect in given available start For partnerships average VTEX recent revenue conditions XXXX, FX neutral rates. as course Wrapping of million quarter implementation, macro had XX%, $XXX up products top solid platform. volatility call, expansion, and our year, with exciting we strong robust many of $XXX the backlog performance, a new of FX the margins year previously undergoing on now line and growth

long-term of today Thank as up All features, further. it, it on opportunity you. the business of and that, ahead we product continue us and the continuing will the for which now. together as platform’s our around our quality focusing confidence us our developing ecosystem in let’s differentiation, of in this even We’ll push technology, gives us. questions well have With open

Operator

[Operator have Cesar first Instructions] phone Morgan from Medina Stanley. our on lines from the question We

Your line is open.

Cesar Medina

call. for I Thanks taking have two questions. my Hi.

guidance. you changed different one results. to first quarter customers? the it’s difficult the one fourth and The break is Can to because it drivers down revenue you acquiring first Is believe That’s that it you related the question. for presented has I relative Is – the new retention? the that. Things change? it outlook lower net like more the Can behind in with

I you question, I past, seeing any if the it correctly, are comments now? digits, don’t right your recall Thank Second triple In you. was on store growing. where backlog?

Ricardo Camatta Sodre

further. question That’s question, your and elaborate Cesar. good for very a Thanks happy to

revenue market of growth scenario considering to forward dollars guidance growth digital robust commerce the looking quite QX, Our of organic it’s the were important current growth the market. know U.S. right? software in aspects, XX% that of in and a had Before in strong performance we talking about the GMV XX% and

specifically, line the would highlight two factors I we guidance top key into consideration. took Now on

The first one macroeconomic is conditions.

rates obviously sector, all the what increasing are can globally, although retail rising and extent. inflation. to We it seeing impact uncertain increased still inflation These being to interest rates reduce is

So this is what by we macro uncertainty. mean

one post-COVID. second behavior is The consumer

reopening stores a seeing We months for are now. of the few

We continues believe change. with the to we consumer omnichannel However, be help that. behavior customers can will strategies and our of importance utmost

not linear. However, together may the path be

XXXX, the appreciation that the what guidance is of Having from America, our our adjusted range in million mean FX growth implies neutral Latin we but to $XXX we XX% to XX% XX% GMV. by customer’s guidance million. this now said currencies that a – in through $XXX given XX So in of to the volatility

efficiency. addition, to margin also than increase In increase by operating in we gross more our head we deliver X%. XXXX. And we committed committed basis continue to, in are In count XXX And finally we QX, only to be significant deliver to margin points year-over-year. expansion

think I I as backlog answers the question. you talk So a that And about little can bit guidance asked the that well.

backlog. continue we have strong to So a

as year-over-year, backlog doubling sustain healthy was and the our you now it’s projection. at mentioned level revenue more for revenue see which quarters. our your a in growth, a expected, is And backlog we to growth Our growth question with couple aligned

healthy see a to signatures continue also contract pace. We at

we press are our continue are live backlog. new more release closely, given conservative And translates of in monitoring our online at new time conditions, implement for in assumption win Having said to up a to healthy We lives/ramp and pace we being of with wins continue mentioned customers we our new some go customers. how new go macro that, this current VTEX. stores strong revenue backlog into and the

the have had more dollar what QX instance, And customers enterprise mentioned QX to the that large large in remarks, go of with enterprise also customers was their we prepared had year. XXXX. double it’s over in know of globe been more by amount across the as Geraldo backlog we the lives to in dollar For than past share increasing able interesting we attract these the

both So your answers I hope that questions.

Cesar Medina

Thank you.

Operator

The Sachs. next from question comes you. we Goldman have Vitor Thank from Tomita

Your line is now open.

Vitor Tomita

Thanks Good all. our Two from our questions questions. taking for evening, side.

the active how particularly far the this evolving. a the And the VTEX accessing more Could bit on active on number that? you some developers, one you developers overall give dev color for increased number said. developers drivers outside first portal as of of is on us also LatAm The quite

Second for thinking question perhaps. relevance in your Thank you. from a our improvement with driver in call the your take payment become side, which partnerships a overall about longer-term, could emphasized this rate providers, you in

Ricardo Camatta Sodre

Geraldo. I think on you’re mute,

Geraldo Thomaz Jr.

sorry. I’m so

Sorry, Vitor, on I was mute.

the have ecosystem platform the more commerce So And complex developer think for the more this, be commerce idea around support will we being developers. the less us. developers, this word the we thank is long-term the be you fragmented. About the not question. for And we of in fragmented, need not will of less of complex,

important regions of doing, us the driven call are for IO, So the very side. for of out us. and environment on revenue that only at by ecosystem we the growing, this And so we push all. that there’s created talent only is can a coming that a VTEX it’s not U.S., lot the the use indicator to It’s not motion they – developers, development from providing this is which get that we it’s

that’s – are we – is this a big So push.

grow to we need When more well. Brazil, hoc was our in other territories we platform. there to We formal. about ad this As knowledge were be as

take that About The ecosystem can with a again? the been bit you – Ricardo, Now other in successful, our we’ve the on educating little impact payment, countries, could this – second documentation sorry. could risks? the need question and payment the you support we KPI. I’m check what’s the talk we are of if talk lot a of the we about

Ricardo Camatta Sodre

happy to I’m one, this Geraldo. Perfect. Yes. take

how our let’s Before talking talk partnerships and see payments payments broadly step and back it. about EBANX in a about we general, and with take PayPal, more just

profit customers to limited a enterprise tend a payment but the Vitor, customers of is is VTEX where a on inadvertent payments only TPV, pyramid the enterprise tend bring bring And you profit amount pool of volume So large enterprise probably as focuses to customers. an amount know, payments regular pool. where

Additionally, markets. payments for competitive enterprises is in premature

solution providers/acquires, or with we payment, this enterprise instead our payments, gateway in own customers. has build VTEX payment gateway context, partnerships to So two for payment building of processing create partnerships and in acquiring knowing build through ways. value decided By this building a

ensure VTEX implement frictionless value lifetime as they way, our well needed. churn of helps are First, and switch as reduce as in the providers as can us happy we customers. This our a potentially increase customers payment solutions

offer Second, solution a customers give way. a network providers VTEX we to payment their in scalable can distribution they to where

So considering are we basis the that this point we GMV strategy, based monetize our payments VTEX TPV TPV payment low end, In to a starting partnerships that customers through partners. payment flow double our of partners, through our the platform. charge to as the on fee on our flows

that hopefully So your answers question.

Vitor Tomita

clear Very Thank global you. digit. double

Operator

you. Thank

from next of Piper Sandler. Your question comes Clarke Jeffries

open is line Your Clarke.

Clarke Jeffries

confidence bit being last this your to brands the year? new Hello, and would maybe a of recognize platform, guidance. brands the platform, temperature point that conversations brand kind of to the talking I about that the the GMV and but hard in the onto thank change changed merchants to macro for a store around but doubling in is and of refine to little talking question hear to the question, fundamentally time. new gauge sentiment to, you’re to or taking on you a the get contract the Anything specifically inputs previous onboarded external anything has that I signings the starts, control considerations encouraging to wanted new in certainly GMV, about but at wanted recognize the

Geraldo Thomaz Jr.

Yes. Clarke. elaborate. happy Thanks further Hi, question. for the I’m to

the have on right. in macroeconomic customers future right, mentioned, GMV, our the and looking guidance we conditions as aspects, So I

impact of how the interest and conditions, retail increase much uncertainty there Regarding level going is the rate sector one microeconomic deeper. globally in will

e-commerce, Given impact e-commerce. America, especially the the softly increasing in Latin of low of penetration penetration level of could some help

as will are more and through year. moving here, have move there couple on these pieces So the we a clarity we

Now, the to customers, consumer behavior customers up customers, GMV, specifically the right, your ramp question, could GMV right. moving new and impact on our our of to more existing post-COVID

we are for QX the undergoing a time in the example, many with year, mentioned as prepare were And natural two first going COVID. FX year the of in America we growth wave is some same a Latin countries last in year. COVID lockdown. to year, CAGR see recovery and were second a year GMV in QX So of the this most half in XX%. countries XXXX, the Therefore comp we wave remarks, of this QX toughest in of the two in facing neutral through with Considering expect second CAGR lower

QX CAGR QX. For then comp in to in XX% in two reduce will instance, and XX% year QX these XX%

Now continue on to new sign customers And said, we at the be healthy implementation, of on and contracts new time macroeconomic the implementation new ramp as given the contracts impacted conditions. pace. up I the could

of as So that well. being mindful we are

Clarke Jeffries

a my new signing. it I second if And can How phase Stratton been with the Got the U.S. in just functionality of it. at learnings of question exploratory in a new level think Yes. purchase you’re heard in is streaming, still Maybe any for question, do of as to and an point & change you North in clarify existing no America contract part North kind to U.S. of at implement the that address share hiring been Briggs you second this maybe customer, heard before. is maybe that just customers, I same and sort that pipeline I America. kind willingness by of that used to a is the Motorola about how live There’s pace has as interest the the or locale? correctly feel terms market

Mariano Gomide de Faria

here. Hi, Mariano

up we seeing engaging So I delaying, the are ramp some the test, the on a retailers and and brand let’s trend that. replatform is implementation said, the But we they for to so say fundamental maybe are as of on changes recognizing how phase, like strong manufacturers first question in willingness operation. the no on

new COVID, for we is is So anything saw XX% as in the as in in United it markets that not investing you on willingness but live shopping, XXX% in the urgency of almost was XXXX, before, is platforms it because States The change zero. in mentioned, didn’t digital. of that And, like XXXX, market Asia.

a that we as trend. see So big

and these already the than last in have We shopping. XXX investing been the these than XX life more in have We launch countries the we two clients life shopping, years. on using product more do in a

that clients. as it an for we see and our and opportunity So for for us a channel is open new sure

Clarke Jeffries

appreciate Really you. Thank it.

Operator

[Operator Instructions] from you. KeyBanc Thank We a now Markets. have of Will question Capital Carlson

open. is line Your

Will Carlson

Hey Beck. for Josh guys, it’s Will on

really kind in I how their a maybe you’re Thanks. little heard color a also of would delay give at And how if you of certain a more about aspects little to then mention you bit of bit if I going on modernizing compared and ways, think looking on be you’re seeing off online could the react physical. sub-verticals they’re in just just could awesome. to social seeing color that it’d trends just but that talk COVID, certain of a mobile, specifically kind something little be that bit helpful you yes, this as customers stores. to

Mariano Gomide de Faria

Yes. Mariano here again.

So what There social, two. not in now. cause limit that new channels and channels in years, are social, the the paid manufacturers price. the social of they Retailers boom of brand the said paid becomes much more but social marketplaces social a the pay very customers are paying channels. actually now than acquisition it expansion is are the let’s will and for the in five was and That expensive divide last but

of like also social, believe that retailers And emerge channels, seen Those brands personal So the are channels and channels, like will like we an shopper. in right. are channels is organic I more a invest. like shopping, conversational

by engagement. kind having the and the stores So central a the much by sales operation as are online trend bigger people the physical social piece of merging we a seeing of

WhatsApp, penetration believe follow markets the Chat. in forefront also digital the these believe but America will we that we will be the So engagement, emerge States United because are, of will that with Apple economy Latin of Business in the we

try it of is investing the but social, conversion to very So center we is they’re doing. What in to rates. simple still right, in mobile. is to are didn’t on Mobile, simplify now the companies what replicate It way was approach an the what it high, are now results increase of seeing and desktop experience, this They change. more is we it. investing a really

as now. retail disruptor, what a in social the and the are as XXXX, is of see It implementation, speed as survival channels so is of the of for we likely can a was speed XXXX that the mode sure because XXXX. that that’s to and it it So the in see the and urgency more new COVID. between the it will this not change percentage XXXX seeing selling what About to we right, is of right recover projects, the was is pace

on expecting and conservative our the have pace the accounts business. are we that implementation we of So being in

Geraldo Thomaz Jr.

be accentuated in bit might And Josh, think to may be fact the a little a thinking that recession future. little this expecting bit. by to stop Mariano, maybe let the everybody me add a they’re And

backlog. slightly seeing in bigger we’re our aging of that, because So a

And phase eventually because is so people products, building the economy. deploying this of are of in also it the expecting last COVID. downturn hurry, because they’re And products, is some in

Will Carlson

Thanks guys. Super helpful.

Operator

team. Thank are questions. no I’d to it the you. like further hand There to back

Geraldo Thomaz Jr.

Thank you joining us again. for once

you with here sharing be to progress. honored our are We

enterprise for attractiveness VTEX in momentum increasing an brands witnessing worldwide. We’re

capital. improving being set We’re committed over deploy margins foundations year progressively disciplined the on how while time. growth to we for to maximizing come, while continuing over sustainable growths the We’ve

company VTEX. stronger a opportunity than now and ever we’re for the long-term We’re in confident

Looking everyone. forward to keeping our on progress. for afternoon Good you updated

Thank you. may disconnect. You now

VTEX (VTEX) 13 May 222022 Q1 Earnings call transcript