Vtex · NYSE:VTEX
Vtex — Q2 2021 Earnings Presentation
39 slides from Vtex's earnings presentation, Aug 17, 2021
Slide 1: Business Overview Second Quarter 2021
Business Overview Second Quarter 2021 August 2021
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 that enables brands to be relevant for convenience-driven consumers
We are building the infrastructure that enables brands to be relevant for the convenience-driven consumer. 04
Slide 5: 84% of our ARR comes from enterprise customers
We are a SaaS commerce 84% 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 $127K in ARR(1). (1) As of December 31, 2020. Per active online sto
Slide 6: VTEX at a glance
Financial stats VTEX at $9.1 B $114 M 68% a glance GMV B2C (2Q21 LTM in USD) Revenue (2Q21 LTM in USD) Non-GAAP(1) subscription gross margin (2Q21 LTM) Company metrics > 2.0k Number of > 2.5k Number of active online 32 Countries with active customers stores(2) online stores(2) (FY 2020) (FY 2020) (F
Slide 7: 10 years of continuous learning
10 years of continuous $7.5 billion learning In annual GMV ARR over Samsung $100 M is deployed in 5 countries International expansion Omnichannel/ LatAm click and collect/ delivery from store The first omnichannel operation Smart checkout Cencosud implements 15 offices & cloud-native micro VTEX across
Slide 8: A founder-led, future-driven culture of integrity
A founder-led, future-driven culture of integrity Employee headcount Integrity We honor our word Extraordinary Commitment 2Q20 We are in it for something 790 bigger than ourselves 2Q21 Authenticity We are free to be who we are 1,486 On the Playing Field We make ourselves responsible for success 08 *
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 Ecommerce Ecommerce Growth (2020) Penetration +$3T in Brazil LatAm ex-BRA RoW 5 years 6% +$3T in 14% 10 years 8% 28% 13%
Slide 10: Addressing a massive market with significant room for further penetration
Addressing $6.4T Worldwide a massive ecommerce market (2024) market with significant room for further penetration $4.3T Worldwide ecommerce market (2020) $85bn LatAm ecommerce market $9.1bn GMV(1) (2020) Source: eMarketer Source: Insider Intelligence (1) As of June 30, 2021 LTM 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 capabilities
We deliver VTEX IO Development Platform unprecedented Online time to revenue with Store VTEX ERP Out-of-the-box Core an extensive set of out-of-the-box In Store AI-powered Search Product Management Traditional Core commerce Point of Sale Commerce CRM capabilities. Pricing Promotions Content Login Ca
Slide 13: Collaborative Commerce approach enables multiple ways to sell and fulfill
Our Collaborative Commerce approach enables enterprises to explore multiple ways to sell and fulfill. Web 3rd party fulfillment Mobile Distributed OMS Physical stores Physical location 1st party fulfillment Field sales Native Marketplace Dropship partners Live commerce 3rd party sellers Marketplaces 13
Slide 14: 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: Network effect of a unique ecosystem of partners
Payment We leverage the network effect of a Shipping unique ecosystem of partners. Fraud & Lending 1,000+ 10%+ Integrated solutions of GMV from Collaborative Commerce transactions 200+ Marketplace System integrators 50%+ of GMV from customers using 100+ Collaborative Commerce integrations POS & Marke
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: 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: Modern software is as valuable as the network it powers
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
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 More than half of leads sales team from ecosystem or in-bound Testing the Build cases Create Drive market by and start momentum towards getting a first
Slide 20: We lead LatAm's commerce ecosystem
We lead LatAm’s commerce ecosystem VTEX DAY 2019 numbers: Pres. Barack Obama live interview 22,000+ attendees 160+ speakers 14 rooms 180+ exhibitors 24 hours of event The biggest ecommerce event in LatAm and the 3rd globally. 20 20
Slide 21: 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 21
Slide 22: Financial Overview
Financial Overview ‘erprise Digital Commerce Platform
Slide 23: 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 FX Neutral YoY Growth +32% 2019 vs. 2020 (4) 95% 167% 71% Only 8% of our customers 44% 135% have two or
Slide 24: Top customers growing and opening new stores in the same country and abroad
Top 100 Customers are growing and opening new stores in the same country and expanding to different countries 2020 Circle sizes in proportion to the years’ Avg. ARR / Top 100 Customers 26 countries 3.7 stores / customer # Countries 2017 13 countries 2.2 stores / customer # Stores 24
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 % of revenue, non-GAAP 2020A 2020 Existing stores 2020 New store
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 87% CAGR 61% CAGR 19-21 (FX neutral) 19-21 (FX neutral) YoY growth YoY growth FX neutral 44% 135% 34% 178% 25% FX neutral 43% 95% 50% 118% 18% (%) (%) Note
Slide 30: GMV from customers with ARR >$25K
GMV from customers with ARR >$25K Customers with no relevant brick-and-mortar retail stores operations increased their GMV year-over-year by 50% on an FX neutral basis Existing stores New + existing stores All customers Customers with no relevant Customers with relevant with ARR >$25K brick-and-mort
Slide 31: Non-GAAP subscription gross margin and loss from operations
(1) (1) Non-GAAP subscription gross margin Non-GAAP loss from operations As % of subscription revenue As % of revenue(2) G&A R&D S&M Subscription Operating gross profit $42 $66 $16 $20 expenses $41 $53 $24 $29 ($mm) ($mm) (1) Non-GAAP metrics. See appendix for reconciliation. (2) The total percentage
Slide 32: Non-GAAP income (loss) from operations bridge
Non-GAAP income (loss) from operations bridge Compression as a result of incremental investments as we move aggressively to capitalize on the acceleration of ecommerce growth 32
Slide 33: Massive TAM, LatAm leadership, blue-chip customers
Massive TAM Latam leadership growing globally Blue-chip customer base Robust technology with speed to market and customization Strong VTEX ecosystem Powerful business model 33
Slide 34: Appendix
Appendix 34 The Enterprise Digital Commerce Platform
Slide 35: Subscription gross profit reconciliation
Subscription gross profit reconciliation (US$ millions) Subscription gross profit 2019 2020 Q1 2021 Q2 2021 LTM Q2 2021 Subscription revenue 58.3 93.4 24.7 29.7 108.3 Subscription gross profit 42.4 65.6 15.9 20.2 73.2 Shared base compensation 0.0 0.1 0.1 0.2 0.4 Non-GAAP subscription gross profit 42.5 6
Slide 36: Non-GAAP operating income reconciliation
Non-GAAP operating income reconciliation (US$ millions) Operating Income 2019 2020 Q1 2021 Q2 2021 Income (loss) from operation (1.8) 6.5 (12.0) (16.4) Share-based compensation expense 0.7 3.3 3.2 5.5 Amortization of intangible related to acquisitions 0.7 0.8 0.4 0.5 Non-GAAP income (loss) from oper
Slide 37: Operating expenses reconciliation
Operating expenses reconciliation (US$ millions) Sales & Marketing 2019 2020 Q1 2021 Q2 2021 Sales & Marketing expense (20.2) (23.8) (11.0) (15.7) Share-based compensation expense 0.2 1.0 0.7 1.6 Amortization of intangible related to acquisitions 0.2 0.4 0.2 0.3 Non-GAAP Sales & Marketing expense (1
Slide 38: FX neutral measures reconciliation
FX neutral measures FX Neutral As As Reported reconciliation Measures Reported Percentage Percentage in USD millions 2Q21 2Q20 2Q21 2Q20 Change Change Subscription revenue 29.7 23.9 23.9% 28.7 23.9 20.0% Services revenue 1.2 1.3 (9.0)% 1.2 1.3 (12.5)% Total revenue 30.9 25.3 22.1% 29.9 25.3 18.2% Su
Slide 39: Thanks!
Thanks! investors@vtex.com www.investors.vtex.com 39