Slide 1: Business Overview Third Quarter 2023
Business Overview Third Quarter 2023 November 2023
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by VTEX (“we,” “us,” “our,” “VTEX” or the “Company”). This presentation may contain forward-looking statements relating to such matters as continued growth prospects for the Company, industry trends and product and technology initiatives. These stateme
Slide 3: VTEX provides a SaaS digital commerce platform for enterprise brands and retailers
VTEX provides a software-as-a-service digital commerce platform for enterprise brands and retailers 3
Slide 4: Building the infrastructure that enables brands to be relevant for the convenience-driven consumer
We are building the infrastructure that enables brands to be relevant for the convenience-driven consumer 04
Slide 5: 85% of our ARR comes from enterprise customers
85% of our ARR comes We are a SaaS commerce from enterprise platform for enterprises customers(1) Apparel Beauty Electronics Food Home Accessories & Health & Grocery Appliances Each generating at least $25K ARR, with an average of $138K in ARR(1) (1) As of December 31, 2022. Per active online store.
Slide 6: VTEX at a glance
VTEX at a glance Financial stats $15.0 B $186.3 M 74.6% GMV B2C Revenue Non-GAAP(1) (3Q23 LTM in USD) (3Q23 LTM in USD) subscription gross margin (3Q23 LTM) Company metrics > 2.6k > 3.4k 38 Number of customers Number of active online Countries with active (FY 2022) stores(2) online stores(2) (FY 202
Slide 7: A founder-led, future-driven culture of integrity
A founder-led, future-driven culture of integrity Employee headcount Integrity We honor our word 3Q22 1,405 Extraordinary Commitment We are in it for something 2Q23 bigger than ourselves 1,305 Authenticity 3Q23 We are free to be who we are 1,276 On the Playing Field We make ourselves responsible for
Slide 8: 10 years of continuous learning
Customers operating in all continents 10 years of $7.5 billion New solutions for customer engagement, like continuous Samsung is deployed In annual GMV Live Shopping and learning in 5 countries Conversational Commerce ARR over $100 M Omnichannel/ click and collect/ delivery from store International
Slide 9: VTEX is the gateway to the fastest-growing ecommerce market in the world
VTEX is the gateway to the fastest-growing ecommerce market in the world Ecommerce is LatAm is the VTEX is leading accelerating globally fastest-growing region ecommerce in LatAm +$2.4T Ecommerce Ecommerce Growth (19-22 CAGR) Penetration (2022) Brazil LatAm ex-BRA RoW in 4 years Latin America 37% 12
Slide 10: Addressing a massive market with significant room for further penetration
Addressing a massive market $8.1T Worldwide with significant ecommerce market (2026) room for further penetration $5.7T Worldwide ecommerce market (2022) $168bn LatAm $15.0bn GMV(1) ecommerce market (2022) Source: eMarketer (1) As of 3Q23 LTM in USD 10
Slide 11: Speed to Market
Current offerings High Born SMB force enterprises to Customization meets choose between Speed to Market deep customization Rapid time to revenue Limited customizability Born SaaS for Enterprises Speed to Market Low total cost Extensive out-of-the-box capabilities = speed or speed to market of ownersh
Slide 12: Unprecedented time to revenue with extensive out-of-the-box commerce capabilities
We deliver VTEX IO Development Platform unprecedented time to revenue with Online Store ERP VTEX an extensive set of Out-of-the-box Core out-of-the-box AI-powered Product commerce Physical Store Search Traditional Core Management CRM Commerce capabilities Pricing Promotions Content Login Cart Market
Slide 13: Complete platform to explore multiple ways to sell and fulfill
Our Complete Platform enables enterprises to explore multiple ways to sell and fulfill Distributed OMS Fulfillment Channels Sales Channels Native Marketplace 13
Slide 14: Our Composable Technology is flexible and extensible by design
Our Composable Technology is flexible and extensible by design API-first services Multi-tenant architecture VTEX IO Development Platform 14
Slide 15: Live and connected global ecosystem of partners
System Integrators We have a live and connected global Marketplace ecosystem of partners that lead to exponential growth Payment 3,000+ 40%+ Shipping Integrated solutions of GMV from Collaborative Commerce transactions 1,000+ System integrators 80%+ Fraud & Lending of GMV from customers that use 300
Slide 16: Our Competitive Advantages
Our Competitive Extensive out of the box solutions Collaborative commerce strategy Composable commerce technology Vibrant ecosystem Advantages... … Attract Customers at Different Stages of Maturity Greenfield Displacements FROM ENTERPRISE FROM SMB PLATFORMS PLATFORMS · Looking to start quickly · Prior
Slide 17: Ranked 2nd for B2C Digital Commerce in Gartner Critical Capabilities
We are ranked 2nd for 2023 Gartner Critical Capabilities for Digital Commerce B2C Digital Commerce, and B2C and B2B on the Same Platform Named a Visionary for the fourth consecutive year Source: Gartner 17
Slide 18: The age of standalone software is gone
The age of standalone software is gone – modern software is as valuable as the network it powers 18
Slide 19: Disciplined go-to-market and scaling strategy
Ecommerce Commerce We have a Software Ecosystem Lower win rate Higher win rate disciplined go- Almost all leads Approximately to-market and from the VTEX sales team half of leads from ecosystem or inbound scaling strategy Testing the Build cases Create Drive market by and start momentum towards gett
Slide 20: Multiple vectors for ongoing growth
Ecosystem development Multiple vectors for ongoing growth Geographic expansion Innovation and platform expansion Grow GMV with existing customers New customer additions
Slide 21: Financial Overview
Financial Overview 21
Slide 22: Driven by a scalable and global future
We are driven by a scalable and global future With an attractive unit economics: LTV/CAC(1) above 6x Logo Expansion Land-and-Expand Global Expansion Number of Stores(2) NRR(3) FX Neutral % Revenue 21% CAGR (19-22) FX Neutral CAGR 78% (4) 57% 38% // // // Pre-Covid Impacted by NRR normalization NRR r
Slide 23: We are proud of our customers' journeys
We are proud of our customers' journeys Our customers continued growing at a healthy pace, on top of the growth they experienced in 2020 Average Revenue by Customer: Top 100 vs Top 25 Number of customers with revenue >US$250k USD (Thousands) Top 100 Customers CAGR 17-22: 27% Top 25 Customers CAGR 17
Slide 24: Customers growing, opening new stores and expanding to new countries
Top 100 Customers are Circle sizes in proportion to the years’ growing, opening Avg. ARR / Top 100 Customers 2022 new stores in the 34 countries same country 5.9 stores / customer and expanding to # Countries new countries 2017 ARR 73.2 M 25% CAGR 17-22 13 countries 2.2 stores / customer ARR 23.9 M
Slide 25: Diversified revenue mix
Diversified revenue mix We are diversified across verticals. Our software works well for many different industries We are also diversified across customer tenure. We create long-term relationships between VTEX and our customers We have a fragmented and diversified customer base Customer verticals Custome
Slide 26: Competitors sell software & services, VTEX sells growth
Competitors sell Subscription Revenue software & services, VTEX Platform clients are charged: VTEX sells growth Fixed Fee Business model VTEX offers a comprehensive subscription solution that provides access to our homogeneous multi-tenant SaaS platform Variable Monthly We grow with our customers and
Slide 27: Strong land and expand model driving results
Strong land and expand model driving results Revenue cohort, FX neutral (US$ millions) Cohort analysis on a FX neutral basis. We define a yearly cohort of customers as the group of customers that received the first invoice of our VTEX platform in the prior year to remove customers ramp-up effect fro
Slide 28: Directional P&L breakdown by existing vs. new stores
Directional P&L breakdown by existing vs. new stores High margin existing stores’ P&L, growing at VTEX’s net revenue retention Investment in new stores’ P&L, while impacting margin in short-term, yields returns aligned with our LTV/CAC Our global expansion outside of Latam has an estimated impact of
Slide 29: Solid growth and SaaS metrics with an attractive business model
Solid growth and SaaS metrics with an attractive business model: we grow by enabling our customers to grow GMV Revenue Subscription Gross Profit (Non-GAAP) US$ billions US$ millions US$ millions 12.7 107.6 157.6 9.7 125.8 80.8 4.0 36.2 50.6 26.9 3.0 38.8 2021 2022 3Q22 3Q23 2021 2022 3Q22 3Q23 2021 2
Slide 30: Subscription gross margin continues expanding
Subscription gross margin continues expanding VTEX is growing fast with an optimized and agile organizational structure Non-GAAP subscription gross profit(1) Non-GAAP operating expenses(1) G&A As % of subscription revenue As % of revenue(2) R&D S&M 96% 89% 83% 74% 75% 76% 72% 71% 68% 67% $81 $108 $27
Slide 31: Non-GAAP loss from operations YoY margin improved
Non-GAAP loss from operations YoY margin improved driven by revenue growth & efficiency gains (15.5)% 2.7% 10.4% 3.7% 1.1% 1.1% 3.4% 3Q22 Δ Gross Δ Δ Δ Δ 3Q23 Non-GAAP profit S&M R&D G&A Others Non-GAAP Loss from Income from operation operation 31
Slide 32: Massive TAM, Latam leadership, blue-chip customer base
Massive TAM Latam leadership growing globally Blue-chip customer base Robust technology with speed to market and customization Strong VTEX ecosystem Powerful business model 32
Slide 33: Appendix
Appendix 33
Slide 34: Subscription gross profit reconciliation
Subscription gross profit reconciliation (US$ millions) Subscription gross profit 2020 2021 2022 Q3 2022 Q2 2023 Q3 2023 Subscription revenue 93.4 118.5 148.5 36.5 44.8 47.5 Subscription gross profit 65.6 80.1 107.1 26.8 33.6 36.1 Shared base compensation 0.1 0.7 0.5 0.2 0.1 0.1 Non-GAAP subscription g
Slide 35: Non-GAAP income (loss) from operations
Non-GAAP income (loss) from operations (US$ millions) Operating Income 2020 2021 2022 Q3 2022 Q2 2023 Q3 2023 Income (loss) from operation 6.5 (65.9) (49.9) (11.3) (7.1) (3.5) Share-based compensation expense 3.3 19.6 12.8 4.8 4.7 4.6 Amortization and adjustment related to acquisitions 0.8 2.0 2.1 0
Slide 36: Operating expenses reconciliation
Operating expenses reconciliation (US$ millions) Sales & Marketing 2020 2021 2022 Q3 2022 Q2 2023 Q3 2023 S&M expense (23.8) (63.5) (67.8) (16.2) (14.4) (15.1) Share-based compensation expense 1.0 5.5 2.9 1.3 1.1 1.0 Amortization and adjustment related to acquisitions 0.4 1.1 1.2 0.3 0.3 0.3 Offering
Slide 37: FX neutral measures reconciliation
FX neutral measures reconciliation FX Neutral As As Reported Measures Reported Percentage Percentage (in USD millions) 3Q23 3Q22 3Q23 3Q22 Change Change Subscription revenue 47.5 36.5 30.2% 45.3 36.5 24.2% Services revenue 3.1 2.2 37.6% 2.9 2.2 30.5% Total revenue 50.6 38.8 30.6% 48.3 38.8 24.5% Gro
Slide 38: Thank you
Thank you investors@vtex.com www.investors.vtex.com 38