Slide 1: Business Overview First Quarter 2023
Business Overview First Quarter 2023 May 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. 03
Slide 4: Building infrastructure for 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
We are a SaaS commerce 85% of our platform for enterprises. ARR comes from enterprise Apparel Home Electronics Food Beauty Accessories Appliances & Grocery & Health customers(1). Each generating at least $25K ARR, with an average of $138 in ARR(1). (1) As of December 31, 2022. Per active online stor
Slide 6: VTEX at a glance
Financial stats VTEX at $13.3 B $165.2 M 73.4% a glance GMV B2C (1Q23 LTM in USD) Revenue (1Q23 LTM in USD) Non-GAAP(1) subscription gross margin (1Q23 LTM) Company metrics > 2.6k Number of > 3.4k Number of active online 38 Countries with active customers stores(2) online stores(2) (FY 2022) (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 1Q22 Extraordinary Commitment 1,765 We are in it for something bigger than ourselves 4Q22 1,347 Authenticity We are free to be who we are 1Q23 1,339 On the Playing Field We make ourselves responsible for
Slide 8: 10 years of continuous learning
10 years of continuous Customers operating in all continents learning $7.5 billion New solutions for Samsung customer engagement, like is deployed In annual GMV Live Shopping and in 5 countries Conversational Commerce ARR over $100 M Omnichannel/ International expansion click and collect/ delivery f
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 in Ecommerce Ecommerce Brazil LatAm ex-BRA RoW Growth (19-22 CAGR) Penetration (2022) 4 years Latin America 12% +
Slide 10: Addressing a massive ecommerce market with significant room for further penetration
Addressing $8.1T Worldwide a massive ecommerce market (2026) market with significant room for further penetration. $5.7T Worldwide ecommerce market (2022) $168bn LatAm ecommerce market $13.3bn GMV(1) (2022) Source: eMarketer Source: Insider Intelligence (1) As of 1Q23 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 owners
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 In Store Point of Search Traditional Core Management CRM Sale Commerce capabilities. Pricing Promotions Content Login Ca
Slide 13: Collaborative Commerce enables multiple ways to sell and fulfill
Our Collaborative Commerce approach enables enterprises to explore multiple ways to sell and fulfill. Distributed OMS Fulfillment Channels Sales Channels Native Marketplace 13 13
Slide 14: Our Composable Commerce technology is flexible and extensible by design
Our Composable Commerce technology is flexible and extensible by design. API-first services Multi-tenant architecture VTEX IO low-code development 14 14
Slide 15: A 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+ 35%+ of GMV from Collaborative Shipping Integrated solutions Commerce transactions 1,000+ System integrators 75%+ Fraud & Lending of GMV from customers using 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 PLATFORMS FROM SMB PLATFORMS · Looking to start quickly · Prior
Slide 17: We are recognized as a global leader
Source: IDC, 2020 We are Leader recognized SAP Salesforce Adobe as a global HCL Episerver Kibo Commerce Oracle BigCommerce Major Players commercetools leader. 2Checkout Skava Elastic Path Microsoft Shopify Softline Spryker TrueCommerce Sitecore Contenders Participants Leader in IDC MarketScape: Worl
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: A disciplined go-to-market and scaling strategy
We have a Ecommerce Commerce Software Ecosystem disciplined go- to-market and Lower win rate Higher win rate scaling strategy. All leads from the VTEX Approximately half of leads sales team from ecosystem or inbound Testing the Build cases Create Drive market by and start momentum towards getting a
Slide 20: Multiple vectors for ongoing growth
Multiple vectors for Ecosystem development ongoing growth. Geographic expansion Innovation and platform expansion Grow GMV with existing customers New customer additions 20
Slide 21: Financial Overview
Financial Overview ‘erprise Digital Commerce Platform
Slide 22: We are 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 FX Neutral Number of Stores(2) NRR(3) FX Neutral % Revenue CAGR 21% CAGR 19-22 19-22 Brazil LatAm ex-BRA RoW (4) 78% 57% 38% // // // Pre-Covid Impacte
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 USD (Thousands) Number of customers with revenue >US$250k Top 100 Customers CAGR 17-22: 27% Top 25 Customers CAGR 17
Slide 24: Top customers are growing and opening new stores
Top 100 Customers are growing and opening new stores in the same country and expanding to different countries Circle sizes in proportion to the years’ 2022 Avg. ARR(1) / Top 100 Customers 34 countries 5.9 stores / customer # Countries ARR 73.2 M 2017 25% CAGR 17-22 13 countries 2.2 stores / customer
Slide 25: Diversified revenue mix
Diversified revenue mix We are diversified across verticals. Our software works well for many different industries We are also diversified across customer tenure. We create long-term relationships between VTEX and our customers We have a fragmented and diversified customer base Customer verticals Custome
Slide 26: Business model
Competitors sell software and services We sell growth Platform clients are charged: Business model VTEX offers a comprehensive subscription solution that provides access to our Fixed Fee homogeneous multi-tenant SaaS platform. We grow with our customers and make ourselves responsible for their succes
Slide 27: Strong land and expand model driving results
Strong land and expand model driving results Revenue cohort, FX neutral (US$ 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
Solid growth and SaaS metrics With an attractive business model: we grow by enabling our customers to grow GMV Revenue US$ billions US$ millions 57% CAGR 50% CAGR 46% CAGR 42% CAGR 19-22 (FX neutral) 19-23 (FX neutral) 19-22 (FX neutral) 19-23 (FX neutral) 12.7 3.3 42.3 157.6 2.0 125.8 34.7 9.7 61.3
Slide 30: Subscription gross margin continues to grow
Subscription gross margin continues to grow Leaner and agile organizational structure to capture the ecommerce market opportunity Non-GAAP subscription gross profit(1) Non-GAAP operating expenses(1) As % of subscription revenue As % of revenue(2) G&A R&D S&M 104% 96% 89% 73% 74% 72% 70% 76% 68% 64% $
Slide 31: Non-GAAP income (loss) from operations bridge
Non-GAAP income (loss) from operations bridge YoY margin increase was mostly driven by VTEX revenue growth (39.5)% 2.0% 17.5% 9.7% 2.4% (1.8)% (9.7)% 1Q22 1Q23 Non-GAAP Non-GAAP Loss from Δ Gross Δ Δ Δ Δ Income from operation profit S&M R&D G&A Others operation 31
Slide 32: Massive TAM, Latam leadership growing globally, 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 The Enterprise Digital Commerce Platform
Slide 34: Subscription gross profit reconciliation (US$ millions)
Subscription gross profit reconciliation (US$ millions) Subscription gross profit 2020 2021 2022 Q1 2022 Q4 2022 Q1 2023 Subscription revenue 93.4 118.5 148.5 32.6 42.7 39.8 Subscription gross profit 65.6 80.1 107.1 22.6 31.2 29.4 Shared base compensation 0.1 0.7 0.5 0.1 0.2 0.0 Non-GAAP subscription g
Slide 35: Non-GAAP income (loss) from operations (US$ millions)
Non-GAAP income (loss) from operations (US$ millions) Operating Income 2020 2021 2022 Q1 2022 Q4 2022 Q1 2023 Income (loss) from operation 6.5 (65.9) (49.9) (16.7) (3.0) (9.7) Share-based compensation expense 3.3 19.6 12.8 2.5 4.6 5.1 Amortization of intangibles related to acquisitions 0.8 2.0 2.1 0
Slide 36: Operating expenses reconciliation (US$ millions)
Operating expenses reconciliation (US$ millions) Sales & Marketing 2020 2021 2022 Q1 2022 Q4 2022 Q1 2023 Sales & Marketing expense (23.8) (63.5) (67.8) (17.9) (12.4) (14.8) Share-based compensation expense 1.0 5.5 2.9 0.7 1.1 1.3 Amortization of intangibles related to acquisitions 0.4 1.1 1.2 0.3 0
Slide 37: FX neutral measures reconciliation
FX neutral measures FX Neutral As As Reported reconciliation Measures Reported Percentage Percentage in USD millions 1Q23 1Q22 1Q23 1Q22 Change Change Subscription revenue 39.8 32.6 22.0% 39.7 32.6 21.9% Services revenue 2.5 2.1 20.7% 2.7 2.1 27.7% Total revenue 42.3 34.7 22.0% 42.4 34.7 22.2% Subsc
Slide 38: Thanks!
Thanks! investors@vtex.com www.investors.vtex.com 38