VTEX Reports Third Quarter 2021 Financial Results

VTEX Reports Third Quarter 2021 Financial Results

November 9, 2021

VTEX (NYSE: VTEX), the enterprise digital commerce platform for the largest brands and retailers, today announced results for the third quarter ended September 30, 2021.

VTEX Reports Third Quarter 2021 Financial Results

Third Quarter 2021 Financial Highlights

Total Revenue was US$32.0 million in the third quarter of 2021, an increase of 95.1% year-over-year in USD and 100.0% on an FX Neutral basis.

Subscription Revenue was US$30.0 million in the third quarter of 2021, an increase of 97.4% year-over-year in USD and 102.3% on an FX Neutral basis.

Non-GAAP Gross Profit was US$13.3 million in the third quarter of 2021, an increase of 122.9% year-over-year, implying a Non-GAAP Gross Margin of 41.6% compared to 36.0% in the third quarter of 2020.

Non-GAAP Loss from Operations was US$10.6 million in the third quarter of 2021, compared to a Non-GAAP Loss from Operations of US$5.1 million in the third quarter of 2020.

Non-GAAP Free Cash Flow was US$(11.7) million in the third quarter of 2021, compared to US$(5.2) million in the third quarter of 2020.

Key Business Highlights

VTEX launched self-service onboarding for the seller’s portal, reducing our customers' time to revenue.

Business Outlook

Online commerce penetration in Latin America continues to increase, demonstrating that the 2020 acceleration in online consumption appears sustainable, even as brick-and-mortar retail stores gradually reopen throughout the region and we lap our toughest comps quarter. Consumer behaviour shift towards online purchasing has demonstrated staying power. Our Q3 2021 FX Neutral year-over-year revenue growth of 12.3% already accelerated to over 20% by the end of the quarter, and it came on top of 140% year-over-year growth in Q3 2020. We expect our revenue growth to continue accelerating during the Q4 of 2021, as in Q4 2020 brick-and-mortar stores were already starting to reopen. Seasonal trends in 2021 are expected to remain similar as in previous years. We expect to continue seeing strong new stores’ growth, as our encouraging backlog undergoes implementation. While supply chain challenges may impact commerce during Q4 2021, we are focused on supporting our customers on a successful Black Friday, Cyber Monday and the holiday shopping season. In view of the aforementioned trends and VTEX’s performance during the nine months ending September 30, 2021, we currently expect to deliver growth at healthy levels. We are targeting revenue in the US$35.3 million to US$37.3 million range for the fourth quarter of 2021, implying a 27% YoY FXN growth rate in the middle of the range. Although Latam currencies devalued 6.7% during Q3 2021, we are confirming our target of US$124 million to US$126 million range for the fiscal year ended December 31, 2021, assuming current period FX rates. Importantly, we will continue to invest to grow our business as we work towards continuing to enhance our leadership position in Latin America and explore new opportunities outside the region. The business outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond VTEX’s control. See the cautionary note regarding ''Forward-Looking Statements'' below. Fluctuations in VTEX’s operating results may be particularly pronounced in the current economic environment. There can not be assurance that VTEX will achieve these results. The following table summarizes certain key financial and operating metrics for the three and nine months ended September 30, 2021 and 2020.