Slide 1: Business Overview Third Quarter 2024
Business Overview Third Quarter 2024 November 2024
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 enterprises
VTEX provides a software-as-a-service digital commerce platform for enterprise brands and retailers 3
Slide 4: We are the backbone for connected commerce
We are the backbone for connected commerce 4
Slide 5: 86% of our ARR comes from enterprise customers
86% 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 $134K in ARR(1) (1) As of FY 2023. Per active online store 5
Slide 6: VTEX at a glance
VTEX at a glance Financial stats $18.2 B $225.9 M 78.1% GMV B2C Revenue Non-GAAP(1) (3Q24 LTM in USD) (3Q24 LTM in USD) subscription gross margin (3Q24 LTM) Company metrics 2.6k 3.5k 43 Number of customers Number of active online Countries with active (FY 2023) stores(2) online stores(2) (FY 2023) (
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 3Q23 1,276 Extraordinary Commitment We are in it for something 2Q24 bigger than ourselves 1,339 Authenticity 3Q24 We are free to be who we are 1,409 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 continuous Samsung In annual GMV engagement, like Live Shopping, Pick and is deployed learning in 5 countries Pack, Sales App, Shipping Network, and more ARR over $100 M Omnichannel/ click and collect/ Internat
Slide 9: Addressing a massive market with significant room for further penetration
Addressing a massive market $8.0T Worldwide with significant ecommerce market (FY 2027) room for further penetration $5.8T Worldwide ecommerce market (FY 2023) $145bn LatAm $18.2bn GMV(1) ecommerce market (FY 2023) Source: eMarketer (1) As of 3Q24 LTM USD 9
Slide 10: 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 11: Unprecedented time to revenue with 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 12: Our Complete Platform enables 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 12
Slide 13: 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 13
Slide 14: 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 6,000+ 40%+ VTEX IO extensions of GMV from Collaborative Shipping created by third parties Commerce transactions 1,000+ 80%+ SIs and ISVs of GMV from customers that use Fr
Slide 15: 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 16: VTEX named a Leader by IDC and Gartner Customers' Choice
VTEX was named a Leader by IDC among 25 B2C Vendors and the sole vendor recognized as a Customers' Choice in the 2024 Gartner® Voice of the Customer for Digital Commerce 16
Slide 17: The age of standalone software is gone
The age of standalone software is gone – modern software is as valuable as the ecosystem and connections it powers 17
Slide 18: We have a 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 19: 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 20: Financial Overview
Financial Overview 20
Slide 21: 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 Number of Stores(2) NRR FX Neutral(3) % Revenue FX Neutral YoY 37% 21% 23% 25% 6% 4% 12% 17% 15% Brazil LatAm ex-BRA RoW Number of Stores Growth, YoY S
Slide 22: 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$250k USD (Thousands) Top 100 Customers CAGR 17-23: 28% Top 25 Customers CAGR 17
Slide 23: Customers are growing, opening new stores and expanding to new countries
Top 100 Customers are Circle sizes in proportion to the years’ growing, opening Avg. ARR / Top 100 Customers 2023 new stores in the 39 countries same country 6.0 stores / customer and expanding to # Countries new countries 2017 ARR 97.6 M 26% CAGR 17-23 13 countries 2.2 stores / customer ARR 23.9 M
Slide 24: Diversified revenue mix
Diversified revenue mix We are diversified across verticals. Our software works well for many different industries We are also diversified across customer tenure. We create long-term relationships between VTEX and our customers We have a fragmented and diversified customer base Customer verticals Custome
Slide 25: Competitors sell software & services, VTEX sells growth
Competitors sell Subscription Revenue software & services, VTEX Platform clients are charged: VTEX sells growth Fixed Fee Business model VTEX offers a comprehensive subscription solution that provides access to our homogeneous multi-tenant SaaS platform Variable Monthly We grow with our customers and
Slide 26: Strong land and expand model driving results
Strong land and expand model driving results Revenue cohort, FX neutral (US$ millions) 2023 2022 2021 2020 2019 2018 Pre-2018 Pre-2018 2018 2019 2020 2021 2022 2023 Cohort analysis on a FX neutral basis. Cohort means a group of customers that received the first invoice of our VTEX platform in the pr
Slide 27: 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 28: 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 Subscription Revenue Subscription Gross Profit (Non-GAAP) US$ billions US$ millions US$ millions 145.1 190.3 16.5 148.5 107.6 12.7 42.3 53.9 36.2 4.0 4.4 47.5 2022 2023 3Q23 3Q24 2022 2023 3
Slide 29: Growing fast, unlocking efficiency with steady costs
VTEX is growing fast, unlocking efficiency with steady costs and an optimized, 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 89% 78% 79% 76% 76% 66% 72% 67% 63% 61% $108 $145 $36 $42 $42 $1
Slide 30: Non-GAAP income from operations YoY margin expansion
Non-GAAP income from operations YoY margin expansion driven by revenue growth, coupled with gross margin and R&D efficiencies 3.4% 4.1% 0.7% 4.8% 1.7% (1.0)% 13.8% 3Q23 Δ Gross Δ Δ Δ Δ 3Q24 Non-GAAP profit S&M R&D G&A Others Non-GAAP loss from income from operation operation 30
Slide 31: Massive TAM, Latam leadership growing globally, blue-chip customer base
Massive TAM Latam leadership growing globally Blue-chip customer base Robust technology, low total cost of ownership and rapid revenue generation Strong VTEX ecosystem Powerful business model 31
Slide 32: Appendix
Appendix VJ vex ssable and Complete
Slide 33: Subscription gross profit reconciliation
Subscription gross profit reconciliation (US$ millions) Subscription gross profit 2021 2022 2023 Q3 2023 Q2 2024 Q3 2024 Subscription revenue 118.5 148.5 190.3 47.5 54.0 53.9 Subscription gross profit 80.1 107.1 144.9 36.1 42.1 42.3 Shared base compensation 0.7 0.5 0.2 0.1 0.0 0.1 Non-GAAP subscription
Slide 34: Income (loss) from operations reconciliation
Income (loss) from operations reconciliation (US$ millions) Operating Income 2021 2022 2023 Q3 2023 Q2 2024 Q3 2024 Income (loss) from operation (65.9) (49.9) (14.6) (3.5) 1.7 2.9 Share-based compensation expense 19.6 12.8 19.7 4.6 4.3 4.2 Amortization related to acquisitions 2.0 2.1 2.6 0.6 0.4 0.4
Slide 35: Operating expenses reconciliation
Operating expenses reconciliation (US$ millions) Sales & Marketing 2021 2022 2023 Q3 2023 Q2 2024 Q3 2024 Sales & Marketing expense (63.5) (67.8) (59.5) (15.1) (17.3) (16.4) Share-based compensation expense 5.5 2.9 4.4 1.0 0.9 1.1 Amortization related to acquisitions 1.1 1.2 1.2 0.3 0.3 0.3 Offering
Slide 36: FX neutral measures reconciliation
FX neutral measures reconciliation (US$ millions) As As FXN FXN Reported Reported 3Q24 3Q23 % Change 3Q24 3Q23 % Change Subscription revenue 53.9 47.5 13.4% 57.9 47.5 21.9% Services revenue 2.1 3.1 (31.9)% 2.2 3.1 (29.6)% Total revenue 56.0 50.6 10.6% 60.1 50.6 18.7% Gross profit 41.7 35.6 17.2% 45.4
Slide 37: Thank you
Thank you investors@vtex.com www.investors.vtex.com 37