Earnings call transcript Q2 2023

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Julia Vater Fernandez

Hello, everyone, and welcome to the VTEX Earnings Conference Call for the Quarter Ended June 13, 2023. I am Julia Vater Fernandez, Investor Relations Director for VTEX.

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

Additionally, Mariano Gomide de Faria, Founder and Co-CEO; and Andre Spolidoro, Chief Statutory Officer, will be available during today's Q&A session.

I would like to remind you that management may make forward-looking statements related to such matters as continued growth prospects for the company, industry trends, and product and technology initiatives. on projections information about based assumptions, our are and expectations, future statements currently and available current These events.

are the While expectations we forward-looking information, statements. of on and assumed to you corporate projections are undue believe reasonable in these that reliance cautioned not our place view

Commission, and bit Securities for Certain ended the uncertainties Factors December in are filings of U.S. sections which XX, the described and Statements our Exchange VTEX website. another within on year and the risks Risk XXXX, Investor are Forward-Looking available Form XXF Relations

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Geraldo Thomaz

products few XXXX of significant second Investor Call. proper Day, Thank excellent our anniversary events that gather In new for joining and that celebration we events From you, reception our us past over we everyone, thanks have forward. Julia. the customer Earnings Conference and and Tax exciting of Day months, after successful announced on the quarter the IPO. have Welcome, our the first of our X attendees time per to launch XX,XXX commercial day, the with milestones witnessed second

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into Now let's delve specifics.

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Ricardo Camatta Sodre

QX VTEX's excited am I'm Thank share XXXX I share company's our financial to robust. pleased you, Hi again, performance to was you. with Geraldo. that, top-line results once everyone,

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exceeded revenue to VTEX surpassing attract platform our our USD upper new and This basis. guidance, QX in end XX.X% demonstrates Our ability outcome and base. FX-neutral expectations, customer and of million the an the our blue-chip increase of resilience to XX.X% $XX.X on a YoY reflecting customers the reaching of

our assist in market. to are reassured outperforming continuing customers to that We observe we are the

our on FX-neutral of USD, in reached from and subscription million Double-clicking YoY XX.X% on in second an the million topline, quarter basis. quarter last the XXXX, year, same of $XX.X $XX.X increase our revenue in a XX.X%

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would in to the move August FYXXXX, program like for and I year. approved the update on I you Before last share QX outlook to repurchase

move per price consideration $XX.X X-year and decision Today, June we Board As timing purchased program investors our of at balance $X.XX relevant to shares confidence dollars million. shares into authorization pleased this was VTEX's average to VTEX's The remaining the other an and if company's factors. the the market in long-term $X.X management, million XX, nearly another delivering of taking repurchase commitment million. our Directors to share. of our are A inform Shares, We've conditions of our be our at XXXX, Common shareholders. approved quantity has to financial that reflects X.X for under share of This on discretion any, repurchased, and value the up position will Class

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on a FX-neutral are revenue of We growth the currently for third of $XX.X YoY million the in targeting million XXXX, basis to range the $XX.X middle in of XX% implying quarter an the range.

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second improvements strategy YoY growth, XXXX. for continue margin we our executing half of in profitable anticipate operating non-GAAP As on relevant in the we income

cost profitability unique VTEX's enabling architecture. of total growth around in proposition, to and customers confident ownership are simplifying by reducing commerce their We value centered achieve our and sustainable

stores, focused enables customers us to deliver omnichannel and e-commerce to opportunities delivering We execute innovative to our on providing customers, integration excellence valued We conditions, with profitability market rapid seek. growth to and solutions, the sustained and on employees our physical investors. drive that capitalizing emerging success partners, remain of continue for will adapting the that

We With excited the now. open Thank that, it are up about for ahead. you. let's questions opportunities

Operator

of JP first our line [Operator from comes Instructions]. Morgan. Santos from Marcelo the And question

Marcelo Santos

questions. X have I

making management please less more more versus like I mean discuss expectations shorter? Could expected. now? in regarding what is revenues or are is Where on second you PX or the this better headcount. what the or just just is source, wanted changes I more change you please was first the is more further could the you discuss what cycle stores located? this And you color The sales came came decline volume bit? from than a question

Mariano Gomide de Faria

into your to VTEX's sustainability Marcelo. have deeper and address reasons in outstanding It's opportunity for question, great the the Thanks go this of behind market achievement. to the performance to the

and the by This can ACV VTEX joining overperformance proposition both live. market our the the backlog of of and growth So new the ownership new customers under their of attributed demonstrates total commerce on to be demands. profitability projects signed on current reducing and foremost, our coming attractiveness and simplifying customers platform, our and first achieving architecture the sustainable to value cost going

Ricardo Camatta Sodre

press an in mentioned earnings results have positive stabilization cycle projects as encouraging go-live the sales of we in our current also release, our quarter, Additionally, had implementation. a seen on our through the which under impact of

performance base. contributed our factor was our Another resilient customer that to existing

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a our a relentless set platform TCO us with Our and commitment to customers composable delivering complete to on focus and our providing to low value apart. continue

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guidance in Looking remain growth ahead, we our prospects. grounded confident in and our

Our in outline to to over and for about we execution, achieving it question, the our second are strategy I'll talk headcount. our with confident is targets. Mariano pass aligned the And

Mariano Gomide de Faria

our has when the quarter. headcount, So pretty to previous about remained compared stable the headcount

current levels foresee We demand well are our any the align with don't are experiencing, that regard. in we this staffing substantial and confident changes we

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around of the X,XXX, we quarter foresee and around XXXX, have that X,XXX, first Considering that quarter level. we second personnel, in

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Operator

Our next UBS. question comes from Lucas from Chaves

Lucas Chaves

here. my From side

is, and new and your Investor solutions The Day customer for first mentioned products one also engagement. today you during

And competitors new please one pricing? general the you how are take of the you pricing forward? do or the or you launches? The going on seeing see And can clients second comment So on reception by competition. on product rate it more aggressive is

Mariano Gomide de Faria

this, get Mariano. to Pleased

competition. don't change a We the market on brutal First the see on dynamics.

the kind in same are seeing We the market operating price. of

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Operator

Clark Sandler. next from comes Piper Our Jefferies question from

Clark Jefferies

Hello.

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Mariano Gomide de Faria

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Ricardo Camatta Sodre

the Mario. Perfect, for on question, Clark And second your question.

Regarding opportunity optimistic are the approaching. it’s are we that we seeing buyback, that more

the year a opportunities our growth. high-growth program So for And and delivering we our our to accelerate shareholders. constantly long-term confidence for a to buyback in approving commitment our value to company, financial position reflects resources to as invest another look company’s

attractive allocation capital next and the year. position for strong our the buyback year’s opportunity allocation, as considering an cash terms this we in have capital we of next clarity program the X view Now

from announcing that relatively important are the aligned are is to the buyback program Finally, current share-based note compensation current our that we it with that we dilution seeing. is

So hopefully, the that question. answers

Operator

comes from the Our of Bank America. from next line Brendan] question [Luca of

Unidentified Analyst

I have here. X

market been any could versus operate so the there second, we've us the on it regions it how in improvement Or you second for does you if outlook difficult? of first e-commerce quarter? follow-up the quarter at seen looking a an give competition. far And remain Has you're First, in? main the in what

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Ricardo Camatta Sodre

question growth. the take bit and on growth, little Happy first e-commerce market the we overall here. on market the can comment talk Ricardo about then to I'll regions. a

while So e-commerce we the consistently to on GMV outperform the to industry. the performers perform as digits, strong in continue continues top a basis and grow single market as

to crucial. adapt resilient stay ability and has Our been

Our very dedication strong, and to of remains continuously our partners and are to the game. we stay refining customers offering ahead

are drove There that reasons market QX. the in few a overperformance versus our

and simplifying commerce The I we mentioned to customers architecture. net our profitability helping questions, to new we them in first and GMV ownership attracting being one, most added reducing their and We new relevant total that adding are new was as successful we Marcelo's to because achieve growth tax, platform. sustainable believe by are customers the cost of

the existing continued by that stores growth range. the in same-store experience, sales quarters. enterprise as previous seamlessly one resilient to performing it's we important And mentioned is our are in existing the base second show our shopping large digital integrating customers in physical customer that market teens mention The the the into their to

this among led store shopping rates, conversion physical the digital of an inventories, expanded with fee to the many and stockouts, experience has integration in And other faster increase deliveries, benefits.

the so disclosure from the disclosure So percentage. like right? that geographical or overall the Europe, given so while rest so, quarter. U.S. way we the the nothing company. slightly with aligned Brazil made grew outgrowing that meaningful sales too the pretty of remember, if we an annual mid-XXs below that, XXXX, grew long, that XX% and are On we basis, on to have average, breakdown, quarter we XXXX was the range world, And in in give the you cycles this happens

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give we detailed yearly basis. again, So disclosure a on

So over pass the I quarter. competition, explain on second And basis think this is question a the here what we to it about for I'll qualitative can in Mariano.

Mariano Gomide de Faria

a seeing not let's region. be different competition, for we landscape about specific more are by competition. And So

We are seeing in Europe, in all any Brazil. names and LatAm, They are the U.S., new same. not

increasing the our competition are of us As But same market we public the the of States. we Oracle the of is for new BXB are further competitor that all The an notice in no, only was kind a now stays in penetration no BXB, United the seeing yes, major BXB of new environment, commerce kind of the in out space, names mainly in with moving market. kind but names. the

Operator

Schrage And our next Matti the of KeyBanc. line from question comes from

Matti Schrage

sales come to hear back have kind to I'm normalized that levels. cycles happy of

Just assumes And wondering question in sales of on if go-lives and second your wondering if marketing too? wondering the new recovery, still ramp pull could color back kind then guidance level spend? of and seen if merchants your we're seeing give that's on some if recovered your this is some Or my you guys sales speeds cycles.

Ricardo Camatta Sodre

for question. your Thanks

on right? not seeing. the normal sales sales we we we trend stabilization gone They levels. an and in are but prepared to both cycle. So the that's slightly have remarks back They cycle, encouraged So have of are above, the and the seeing what stabilization, in with we encouraged disease earnings historical release mentioned still that seen are

are are that in well. the seeing we cycle, trend as Now including overall go-lives we the we So similar mentioned, as right? ramp-ups, a and there

is this see. So encouraged to

the going to well as continued So yet on new in cycle right, from stabilization. sales QX guidance we normal, guidance, And XX% XXXX levels current guidance at existing line as guidance to was from with look QX from stabilization back not both customers, sale continued if now the a built customers XX%. of FX-neutral same-store the and XX% to assume the but into increased XX% and and notice XXXX you will that quarter as XX% you to our QX last same what's while quarters, XX% previous to to FX-neutral QX, have back the

Having said conditions uncertain. that, market remain

volatility current although For the we promotional are would sales. I holiday hard to events finally, in market that of shopping the same-store we the therefore, the and under And have some the well-positioned predict GMV capture QX, customers market are is retail behavior our we instance, that from digital confident opportunity, say it given setup. seen to

base new should growth seeing and Our that supporting continued sales forward. customer existing we to customer are good continue going the has momentum our outperform market,

Operator

Thank presenters the you. closing remarks. floor back turn to with I'd further to our questions, over no for And like

Geraldo Thomaz

have collective commerce a team, us hiking effort propelled transformation. customers, dedicated and The into new loyal of our partners

base and customer a consistently testament VTEX showcased the customers experienced annual strength the churn The consistent highlights we the as have remarkable Our to low us. serving resiliency has trust place revenue in our unwavering of reliability platform.

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Operator

conclude Thank once Thank gentlemen, you joining. call. and all again, you. today's And for ladies that does

disconnect. now may You

VTEX (VTEX) 8 Aug 232023 Q2 Earnings call transcript