Earnings call transcript Q4 2022

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Operator

Good afternoon. Thank you for attending today's VTEX 2022 Financial Results Conference Call. My name is Megan, and I'll be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to Julia Fernanderz with VTEX.

Julia Fernandez

Lipase, everyone, and welcome to the VTEX Earnings Conference Call for the quarter ended December 31, 2022; I'm Julia Fernandez, Investor Relations Director for Vtex.

today Ricardo do Sodre, presenting and Thomaz, executives and Co-CEO; Chief senior are Carmo Geraldo Founder Our Financial Officer.

de initiatives. Officer, growth the and during statements related Gomide Polit, prospects you that would of Mariano Faria, such make Co-CEO; remind and and product Additionally, forward-looking may and like Chief to Strategy trends Q&A matters will company, today's available to industry management be technology session. I Founder Andres as continued

information available and current statements are currently These future on and expectations about our projections based assumptions, events.

the assumptions, While that you and believe place in are forward-looking we reasonable not risks in view cautioned the our undue information, expectations available Certain projections these on uncertainties statements. statement the U.S. the current are on are reliance to of and XX, our of and of are website. December ended Investor factors which Form year and and Bite other filings risk XXXX, Relations available Exchange Commission, the forward-looking Vtex XX-F Securities within sections described

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

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

Geraldo do Carmo Thomaz

for industry. call. earnings Thank a you, the Julia. Welcome, near and everyone, joining our XXXX was conference volatility with and quarter XXXX for fourth thanks full uncertainty

than our smoothly. reached ability America XXXX, customers' exceeding Latin our GMV navigate e-commerce challenges the business while environment by market demonstrated performance XX%, single and despite and In digits growth grew more the to So XX%. model resiliency the ever-changing performance the in

addition our to customer indicating that versus sales to to the existing curve market. significantly performed and XX% basis customers outperformance FX-neutral on an increased the above new overall same-store contributed adds, VTEX in

gain operational XXXX and As performance efficiencies market to to We scale. gross optimize improve drive margin our we we focus forward, aim clear. our growth expenses move is for consistently above as

goal on grow to of provide reliable solution continue our the a GMV. solely customers products a focus their their to range expanding while our we sales is to site at our enable can to comprehensive strengthen time, customers Our business to so they same

Our is in made the solid global and evolving with expansion journey steps U.S. Europe.

announced going also such customers as and countries year. We Africa India that this other to South

growth, aiming revenue our reach We continue the business global results to expect our have on were consistent leader for and of America. performance delighted resilient position that we're tangible backbone our quarter common. a to GMV to and expectations, our below the and of report deliver although to Latin the last we regional expanded Reflecting XXXX, seen has become as beyond solidified

percentage Specifically, billion almost basis, XX in quarter. in $X our U.S. an in the QX, the by year-over-year on reaching GMV FX-neutral XX% and dollars increased mark

strength, business our our and evidenced by as company's of countries stores challenging have customers, environments. our number and demonstrates This our GMV around impacted year season. challenges more of It's retail maintained entire QX volumes the Friday holiday That's for sales our the macroeconomic customer. resiliency and solid Throughout quarter-over-quarter. XXXX by with industry improving we the strong relationship faced Despite business to of during trend, to lower-than-expected than sales XXXX. due same-store the established this that QX long-term being ability worth with growing performance and Black noting the navigate per history,

over the customers X,XXX X,XXX In of a we were total countries. across XX honored trust to of with XXXX, have stores

progress. an X.X in operations averaged Our top improvement significant stores XX making XXX customers we kept the customer countries, per in in XXXX. X.X In stores customer from fourth per commercial XXXX with quarter,

started in online and on in in Peru, also customers and Poland respective are an in established in us. Colombia added We've [indiscernible] countries are presence [indiscernible] quarter them who previously position not expand customers This regions. migrated proud such [indiscernible] they Chile, and markets, reach This several These boarded includes day to that Argentina, Rebook Brazil, retailers. QX, they their companies and several Brazil, well first on brands Mexico. did as in are new we have strengthen that as and in to will platforms. includes with help premier In of Super operating added brands in from we board our We excited attracted went these the have live have our other us XXXX, and

attracting addition our strengthening relationship to efforts. supporting with expansion customers we on new focused In their also existing customers, by

us retailers in Peru to currently quarter, brands Latin fourth a who with the Brazil X new countries includes in This operating chose America. Latin Belcorp, Tavera operating who stores in integrating with stores and operation expand X opening Electrolux, in us. added America. countries their During in by Mexico in currently store and premier added further and

omnichannel integrated platform the added with into to who customers. in XXX brand's and and provide more testament value relevant to their currently who expand Samsung, strength, This BXB stores both in us; and our operations physical Brazil a we is our decision of trust Carrefour, operating proposition BXB Brazil. operations than us with BXC the

to are new the asset physical supporting consumers and store excited and base. We continue in them geographies reaching leveraging

giving Friday during compared were and such a both highest year-over-year States, in scalability, which countries on week. a while an security growth accomplishments XX% in and XXX% countries November mention increase an X the season. of the piece USD increase with dependability and countries quarter, reliability I demonstrating the dollar achieved basis. of of proud all expansion volumes would in to Mexico the tangible this the like network, particularly the billion, Vtex top hard Black and among Friday our joined XXXX event provides GMV Black which United Monday as mind The with of during And international of results. GMV detected customers our of Cyber time to November. significant $X.XX FX-neutral XX% of briefly the We

and outstanding Instagram, XX%. to greater MercadoLibre, increases peace and deeper customers excited and Facebook, e-banks, across that Stripe America entered AV, rates avoid Latin to into a PayPal, sale, approval with Asia expand and added for retailers maintain [indiscernible In Vtex into Europe. anti-fraud where ClearSales markets of approval global we rate North our deals as one we it company partnership provide flexibility Nova QX, Nova, us with we and into America, false [indiscernible], expansion with customers was in partnerships trust We mind many sale, than with year new give as average global TikTok. XXXX and AWS, to agreement the the positive. announce Brazil Pacific, a were Clear will specialized customization partnership others. in by digital and plugin ambitions. among According entered solutions more clear With and a such

already fully to with Vtex to achieved account its you share benefit results. revenues. retailers customers to is expand partnership and and customized success platform from capability global exceptional A some This has our accelerate how I'm examples rate partnership VTEX. optimization acceptance board for through around kitchen globe, customers the Shifting demonstrate our new have of continued laundry leading and our global and its approach on to the Nevadvanced a capability. with eager available story, company brands that customer teams appliance

was high-end factor launching Our successfully VTEX a branch U.S. in global brand the appliance contracts signed home in crucial by Europe.

allow page in approach checkout framework solution leveraging composable now EMEA Our with APIs to customer all new store the checkout with the customers customized in components. Vtex which more is a have flexibility tax by utilizing

with in crucial user its experiences can particularly that, adopted the high-end study for they and regulatory The that framework. Motorola experience the the [indiscernible] fully region provided in was to leveraged content brand for from With successful tailored to in website contract home new e-commerce end build . tools implementation, VTEX without online The approach need the the global front India. now shopping by appliance headless they with localization scratch. a during starting quickly local its its compliance create select launch

On were live their top team that needing went XPLs, new They the has banners challenges customer including parties easy of layout, a customize third for logistics. that extremely technical easy and enable all helpful Motorola vendors. in also third-party third-party the actions non-packaging. VTEX extremely Motorola was to of with highlighted helping different multiple without that, to addressing homepage integration

Motorola process and increased first an its result, checkout a intuitive which navigation, has conversion a rates. As website benefited from has

adaptability. attract presence across Romania. functionalities us experience Vtex new customers our content what can relevant Europe, with shopping There including who show its offers live that delivery defined with their new continue platform device, any online features Europe new new and by the accessed user-friendly The customers come physical along more to and to speed experience also in and still loading a to that one We mobile integrated onshore, provide in including solution. the a page customer retailers largest text product of introducing from is already operations and with is features world's onshore to enhance website online in went be relaunch in consumers first-class new helping with stores the to pickup more fresh and leveraging are by user-generated improvements QX complements in for locations. delivery

brick-and-mortar fastest-growing store platform report partner capabilities The increasing speed and grocery efficiency boosting does a according industry its retailers to transformation It for by go-to its by sales for type services. fast integrating operational third-party product with of and a as operations flexibility sector this added inventory being and with has costs. offering no onboarding itself e-commerce Tax digital leveraging omnichannel selection sales this from our the sellers is Statista. undergoing through wider by the established time-saving and features

handle streamlining retailers optimal in-store pickup resulting e-commerce distribution channels provide multiple multiple sources Additionally, to and such inventory This various allows channels as assembling brands locations, grocery enable to pickup order offer complex stores centers other system leveraging in brick-and-mortar while options to delivery Vtex curbside and distributed and by fulfillment management fulfillment. fast scenarios, from operations. orders commerce

customer and For example, with the delivery XX for to they them since conversion highly improving with from grocery been trust and customer. [indiscernible] factions, to increase is the future the different satisfaction a their delivery operating rates, us capability, Vita's time solution helping and conglomerate speed Vtex large sort products sales show categories improvement, new brands promotions home can range models The XXXX to with of a search accelerating operation. has company and to level. tools Vtex customized consume best

multinational XXXX French in in a corporation operate these Carrefour, leading retail, Along to Vtex selected in specializing Brazil. lines,

market service. Latin to Carrefour XXX Brazil markets grocery per us order and presence The improve significantly its products. has worldwide, a other offering both supermarkets, XX marketplace with XXX and omnichannel among and management, including The American countries. grocery in in select strong performance second company stores, largest now

purchases clients to vast their recently, in the seamless control search SKUs lead the including ability to the possible for to enhancements which asset previous options, due omnichannel services This and the OMS Carrefour undoubtedly catalog delivery scalability multiple integrated base migration their POS Physical personalized of was in cheer improved the and capability experience XXXX, of the integrated home based of orchestrate These operational system, Collect efficiency Careful improve allows others. of and increase Click by More & and physical VTEX, QX customer database. for made our stores among leverage volume strategies, in offered an stores number an will on with Carrefour.

the and live live Our Vtex engagement boosting or application that for brands our shopping This engaging X-to-X live opportunities customers many is is and comes new a one retailers events. of conversion customers our create starting, performance process more feature to planning, experience platform of feature to the streaming to base. to shopping live and Attracting opening utilize rates. streamlining native shopping managing enables growth by monitoring up

XXX XXX events XX% with had a we there in events were increase quarter-over-quarter, quarter, This XXXX. and

customers, investors. update the as financial discuss dedicated I the employees X,XXX to operational my I now to our our to for the are as to would making declared and to gratitude well future hand will conclude To who performance call our over a like to express Vtex Ricardo reality partners quarter.

Ricardo Sodre

to financial be the XXXX. Thank performance quarter you, our It's here pleasure to you for a fourth on update everyone. Hi, Geraldo. of

year-over-year XX% XX% by in Geraldo, highlighted dollars FX GMV our reached neutral. QX U.S. in and performance As

U.S. fourth million, of increase XXXX U.S. year-over-year This in same quarter FX revenue $XX.X of XX% quarter a in and to million in XX% and million in neutral. year-over-year dollars for increase quarter, us Subscription the XX% FX in XXXX. year, the dollars a dollars reached $XX.X a a achieve basis. neutral. in revenue $XXX.X Showing XX% U.S. $XX.X from on helped last in XX% tax-neutral This increased our revenue of XX% a million and growth of

day in market confidence and week weak of give our Black growth tax projections. the Friday future Although active our overall below our versus Colombia, given performance expectations, the the during in market us free cancellation performance

retention stores stable a annual analyzing increased from year. see net on basis, revenue revenue number representing retention of net the in million last we to XXXX, compared existing FX-neutral an revenue When XXX% $XXX.X basis. to on Our a

Although the exit revenue year than still the pace volatile, given higher macro was annual net this uncertainty, retention average. for

This returning COVID of quarters reopening. XXX%, approaching XXXX indicates physical is attracting with around stores, platform that representing comps VTEX growth, tough recitation existing store and after XX% by million revenue. driven base, sales many historical our in to our continue by stores of impacted levels being historical the net new rates same-store revenue On our adding $XX.X we of top of

last prior anticipated healthy year current year the measured over Although year time. LTV this efficiency still divided unit sales by economics, that marketing as the in expenses resulted and [indiscernible] year CAC from sales our revenues and store we over remained from decreased lower non-GAAP Our as the new

decrease is accounting invested fact due efficiency regions our XX% XXXX, the marketing of as is for and such a portion to during sales The we and in Europe U.S. sales that the expenses. where lower, higher

pushing of made adjustments part said, previous efficiency marketing experienced XXXX, during initial quarters. to our the and metric implementation sales the in XXXX, the which mentioned not our as in meaningful revenues elongations expectations, also impacted ratio. our ramp-up times, sales also customers' of towards already our in out that With and further end we improve have and expenses we Additionally, this

of with XXX continue are and from announce excited year-over-year a the to reached that year customers above high market, Among XX% XX in traction their gain the We XXXX. XXX in we to number of of XXXX, respectively. we in $XXX,XXX stores increase end of XX revenue customers, from per XX%, number representing reached new in a

this the this of in the product improvement which our demonstrated suitability even demanding within consistently segment. believe have of the we most strongest for is We metric, validation customers

grew revenues outside accounting world our for XX%. of Latin expanding Brazil, XX% FX-neutral continue with while rest X-year our the XX%, geographical CAGR, In grew the We total revenues. reach of of excluding Brazil a America,

the off-line excluding in in with that Regarding rebalancing of and operations. their relevant our rest growth growth FX fully by grew year-over-year fiscal this Latin XX%. XX%. Brazil of world XXXX, which grew and America the Latin between year Brazil Brazil, XX%, XXXX neutral stores and online operational were customers grew a was America, influenced a ex share The larger in generated

mix. although Argentina immense and lower to especially its and it, to starts as cleaner given fully rates growth countries Mexico Mexico Additionally, not larger reflect comps. saw rates growth macro in potential. a year-over-year XXXX gaining situation, like America holds growth gain the are continues a momentum XXXX, experiencing share have Latin do significant

quarter in Non-GAAP $XX.X XXXX. was of moving $XX.X XX.X% fourth the fourth Non-GAAP same compared Now gross to was P&L. of down profit the XX.X% to the our compared of quarter million million quarter XXXX. subscription in gross in XXXX margin subscription

the The team our keep XXX to margins. bps of year-over-year commitment margin improving our expansion shows

gross services an in improving XX non-GAAP expansion, margin, continue higher gross also resulting bps our even margin year-over-year. non-GAAP We

has last materialize quarter's event declining only Our the Friday margin, steady Colombia, mainly XX not to is our as bps. us which subscription non-GAAP remained infrastructure to increased scaling expected. compared This in EVA performance did GSA handle XX.X% to sales during week, in Black due gross

plans. XXXX in improvements anticipate this, as quote to our Despite further implement we we and migrations optimization continue

last second following operating further quarters restructuring quarter same Our current fourth results quarter from the of implemented year. in the million expenses XXXX reflect and third of the and in XXXX. quarter the non-GAAP the million and total organizational in million prior margin we the optimizations fourth $XX.X The in $XX.X XXXX $XX.X of decreased to period

It's the margin non-GAAP that in margin same As a the important our X.X% to a sustainable. XX.X% improvements improved represents is gross operating margin and showing yet improvement year-over-year. to remember control breakeven from income expenses result percentage quarter not of better-than-expected positive fourth a the with achieved line in in negative last year This quarter operational points XXXX. top resilience the a the QX XX.X

which during a positive fourth trend our performance. experiences our seasonal contributed As to the industry current quarter, has

the With will we that income. we positive by that non-GAAP achieve operating of to mind, quarter sustainably fourth in reaffirm able XXXX, be

As cash $X.X a the flow had of months fourth free million Vtex free flow XX, prior a flow cash free XXXX, in compared and positive December XXXX. quarter cash quarter ended X negative million of to the the $XX.X negative a in

P&L quarter strong result generation this our strong operational driven by Our cash primarily performance. was

repurchase in On we share the program, August XXXX. approved of

slightly this purchased million an $X.XX As share average the remaining share. X.X of for shares than is We balance of per million. authorization December available price under less XX, $XX almost repurchases at XXXX,

expect conditions legal and on plan the to applicable based requirements. continue We evaluation executing our of market

moving P&L audience business remind the QX think of Before to perspective, our outlook, as year XXXX X like combination to that I'd from full we a P&Ls. and our about a

Our stores existing and P&L P&L. new stores our

You'll find Slide this represented SMB existing platform excluding stores almost XX in our of revenues. XX% total our Vtex quarter revenue, presentation. earnings fourth reference of

new stores revenues. couple comments. a represented platform of our P&L for breakdown our like XXXX excluding While our total approximately SMB revenue, make XX% I of XXXX would Comparing to and also

margin higher improvement noteworthy improvements gross existing reached than that This stores year-over-year and margin our had stores percentage year-over-year XXX in new showing XXXX. XX improvement X and gross it's stores reaching both points margin the overall profiles approximately year, XX%, percentage from with in bps gross their new existing margin. gross significant points

optimized in our expenses XXXX. discussed, previously we As

well as we clean margin already in don't new see XXXX by operating operational XXs and even from from as XX% margin have points. yet losses though we XX stores how increased stores percentage And XXXX existing improved year full for can a in P&L, low

points this year-over-year an result, margin margin exiting to percentage As improvement breakeven. of the since we year year more operational a had with operational come with our we are XX approaching sustainable overall a

help with macroeconomic the we uncertain. and remain Vtex cost stores business ability to to longer see to ramp-up new time remain note in meaningful outperform deliver As these challenges, the control times to platform forward the implement we the average in from impact increase customers. outlook, and confident customers mostly Compared historical to conditions move an is important revenue, related our our to sales that we to expenses time our to cycle new an continue allocated and our Despite it market which leverage. operational averages, our

uncertain given targeting the range. the are of range the Also, questions the million and $XXX XXXX, $XX.X a quarter million U.S. the currently revenue a to middle the FX million XX%, open up based growth on of of let's macro the Implying volatility for full we XX% Considering range XX% growth and $XX.X between revenue XXXX. in basis persistent to in dollars rates. conditions, now. million in it target year February an year-over-year $XXX that, on FX-neutral an for first of macroeconomic for we neutral implying year-over-year With FX

Operator

the Instructions] Marcelo [Operator JPMorgan. with Santos line comes question Our of from first

Marcelo Santos

first I GMV wanted revenue and growth. My bit more a explore the between question gap to

previous there in was think than some in quarter, more already I the I dollar. U.S. widened points gap think, XX that to,

to parts understand And wanted is the selling expense. second just question here. So the regarding the moving

what $XX is results declined is the you its is going to, line. maybe else -- there lowest describe was a and cut the sustainable most sorry. XXXX, just to please that a the quarter Could think It bit XXXX of the is forward? of I first million think, level since level headcount I noteworthy around

Ricardo Sodre

the the question. one. thanks take for first Marcelo, I'll

that crucial our to take strong is seasonally rates dilutes X/X a release, fees. while of from mentioned quarter's X/X take remaining a the revenue GMV. take from the on fixed So natural the implied portion because lower fixed the revenue the note rate, fixed QX and in customers' comes from from in our have it is Considering the is GMV rate fee revenue. company's Q&A as earnings to derived of we the comes it that last fees

customers It is below simply These revenue take mentioned this the come comparing mix. quarter we are lower the XXXX, our take seeing a take For although like-for-like quarter important line that price adding in of we fourth implied regarding following implied mostly the On XXXX. by changes instance, our pressure was as driven mention in the table. in XXXX point, function of figures. quarter fourth model when larger are fourth who rate of of is rate of and the to the remarks, to rate prepared mix, with variable base not pricing a with

well the as inflation through in Finally, are component contracts most fee it's fixed noting our countries. that of passing worth we to

managed as outside is do are in beginning countries we so in to more well. of developed to achieve LatAm While economies, challenging in to Brazil some have Brazil and this in implement

to For the it question, I'll pass over second Mariano.

Mariano Gomide de Faria

So are keep cuts generate of -- world, what side. to momentum States we of did saw momentum LatAm. The we to on a you expect strong opposite a we can Europe. we opportunity? the expect XXXX so in good write-off coming XXXX contracts the second and in the the from in and pipeline the United see of and expenses Brazil the question, rest And not good do seeing out good do In in any that from kind adjustment we

lean and seeing uncertainty So in this market. are the team, a are seeing we opportunities we that more the can we absorb with more of

decrease any expect terms operations our performance. sales of in don't we So of

Operator

Merrill next line question with Bank Mendes Our comes of Fred Lynch. from of the America

Frederico Mendes

of well. becoming the But as one And the let's the first second the on for the and Vtex the why questions more the two focusing reasons. count. on not of obviously, And your clear impact growth mean changing is a strategy, in team. trying that the very the one, lot fast. is it's -- second, also profitable. strategy on you same then the world say, just have is I reduction attention Obviously, bit just called I head

ecosystem, this the relationship especially Just the wondering when the how implementation the with do of you're doing is who profitability the guys discussion of towards distribution shift the increasing

Geraldo do Carmo Thomaz

We the model, we medium- to our disciplined This like and made, achieving operational -- is and long-term short-, the potential. given are opposite. it's we question. one How are maintaining Geraldo adjustment you and growth Fred. you? achieve like actually the So objectives Thank said, getting don't are for missing feel we're opportunities the answer. Mariano

see naturally the lean current The although us on long-term will and I and the the growth this adapt and And say generate We in our that we growth being is current to conditions. team rate strong in quickly adjusted uncertain value the considering times. agile demand, we'll term. to enable would be potential face long we macroeconomic very that investments see to our for below continue

see and You Mariano that little bit the a we're our sales we team current continuing the R&D for And adjusting investing team, they're are during today, the very year. strong said, demand. eventually growing and as team the

winning stabilize end, the we're have deploy we capture capture outstanding in market market so -- positioned enable to come will that in market stronger to share us. think I we opportunity of once continue to the us are front well out this can and the additional we

Frederico Mendes

Perfect. Very Geraldo. clear

Operator

with of comes line from Sandler. Piper Our Jeffries Clarke next the question

Clarke Jeffries

Is contemplated trend the it on say existing is deployment that contribution, it's is year with of behind safe looking reference XXX, the guidance, guidance. rate expect sort than of dynamic where then the times, XXXX is in that that XXX? Ricardo, of higher around factor store exit above And sort being the most to to a new lines one store be of you to revenue do meaning First this? the all contribution. really important at this

Ricardo Sodre

fair assumption. say it's Yes, your to for your thanks question. Clark,

is the may which average our inflation high factors see a continue relevant XXXX but ramp-up and remarks, These expect potentially to of and implementation to XXXX, is new result part year full in the stores. that XXXX. consumption, uncertainty. our we reflected times, and growth environment growth may impacted the combined in a to As a in see the more contributed sales impact our same-store we of which store rates interest macro This of than in lower growth longer times But X and continue which as guidance. during the impact our prepared stable revenue mentioned, we impact also impact we existing from revenue mentioned consumer

come Having necessary is said out that, we we the situation made resolved. this once to macro believe have adjustments stronger

we as We the our mentioned, which scenario. are that growth to are impacted have structure long-term and capturing share, above the well-invested growth, by believe rates support Geraldo is current market a macro we

Clarke Jeffries

a then the considering was initiatives half one and and done, on to full mean the those trends year there's the were follow-up. second Certainly. And said new you Great especially continue if existing cost higher expect the the a I'm to it. higher store Do on cohort, XX-plus sure see margins all year? reduction rate in cohort, number, percent margins that in annualize next we to that

other stores existing handle any kind expect margins you dynamics new all Would that of for in that then to SMB of store margins? sense and maintain And of XX% in revenue on be terms terms services? and

Ricardo Sodre

No, Clark. Yes, that's a good question.

It's the an So the P&L stores annual existing new stores. making cut. disclosure between and on we are that splitting

margin. the that's year XXXX full So

this year, exiting XX% we the the are it as of margin, we made adjustments right? you as year. But because middle full mentioned, a the So right margin reflects in higher

operational good leverage We continue to see our a in model.

than have existing higher XXXX. be margin in would expected to in the XXXX it for So a stores

So that disciplined the forward. a but to given in help should way, operate operational leverage we'll moving continue us

Operator

line from of question Beck KeyBanc. Josh the next with Our comes

Unidentified Analyst

it's This My forward? of thinking where And have hit terms CAC you is to guys Maddie a first headcount, Josh. metric going do how the on for for think do the maybe in LTV we are compared And that about bottom for goal historical average? the to you at? question that is you you

Ricardo Sodre

take for the Happy the to thanks first question. one. Maddie,

LTV CAC believe level we above for we ourselves. Xx, So the in stay this is company a mentioned like and regarding a over continues as healthy prepared remarks, it to level

the internal since we churn. the time have at pretty look of payback returns also customers We rate of a our low and

cash advance we that in coming want rely flows from customers later to off So that don't in are are future. far the on the

the for believe pursue. do But CAC healthy us metric over Xx that a is LTV we to

on Sorry, the you repeat, second please? question, could

Unidentified Analyst

was there bottom headcount terms in be we've hit more implied? of might number or I the Yes. wondering reductions if just if the

Geraldo do Carmo Thomaz

say very a Street we find on Vtex. would that the wants for to bit is comfortable depending I might talent And can -- the very take that. R&D, Like on we when that that little join slide I with that we increase for have. headcount we're the

the For we But to we that's yes, sales with very demand actual the the -- a Eventually, that find. we is demand, of me variable would future projecting to we that, but now. in that and again. what marketing, it the the not this hit say bottom we eventually, I seems its adjust might bottom, right didn't wish are

Unidentified Analyst

then can was And you could I the of if give BXC secondarily, seeing any wondering if difference And you there? or an same there's AWS BXB my if just update is going? say if sort for the partnership on follow-up, as are then helpful. trends how Very headwinds guys

Mariano Gomide de Faria

Okay, Mariano here.

one the are the lot. foundations AWS Europe, And partner So they us is in of of United Vtex. States go-to-market and of helping a

resources are deals of We AWS and solution field and signed together So kind Vtex reps already AWS and modules solution. marketplace the of BXC some part offering will matching reps with BXB come. of the we are in and

BXB, trend States, in yes, States an we on incredible the on partnership on signatures are penetrated Europe, are contracts. seeing and and in solid on the United this we United our particularly incredible a company BXB They second the question are serving

signatures names public market. So BXB, we on some the released we seeing consistently BXB and on already the are quarter-over-quarter

Operator

Salles Our question UBS. comes with of line from the Andre next

Andre Salles

question One here. have regarding I competition

in changes more are more movement? here. substantial Are from seen business platforms, movements to We customers focused your especially Or in environment compensation in which target some seeing you is specific lower the clients? on this base smaller Brazil here Brazil, trying larger have other a in

Mariano Gomide de Faria

year, come we in the have Shopify or here, a end saw low end. high Latin can every you we in solution, do growth our market. American penetrating the trying to low any they expect. saw course, player kind thank And So we, from Mariano a kind Latin the of for on the SMB didn't what penetrate we huge America, of see we LogIntegrada, and new question, of But changes

consistent growth to from But continue some are we of are SMB there we from to a what flipping So we Yes, from track on the our the vendors business. expect company. kind Shopify. other of see

Operator

Thank at you. no this are There time. questions additional waiting

any the over to for pass management I'll back the remarks. team conference closing So

Geraldo do Carmo Thomaz

XXXX may have to to overcome about We're uncertain exceptional our the our our growth customers key regions. support macroeconomic in drive service we conclusion, delivering optimistic and some challenges and In operations expanding while committed in are XXXX and presented obstacles despite environment. ability

to the Thank that I'm the look We you, our forward earnings our new opportunities next progress us will and today. to for everyone, looking you about progress joining update call. you. forward bring. year in Thank

Operator

have Financial Call. day. Thank for a That Quarter concludes wonderful hope participation. Conference your I the VTEX Results you Fourth XXXX you

VTEX (VTEX) 2 Mar 232022 Q4 Earnings call transcript