Vtex · NYSE:VTEX
Vtex — Q4 2021 Earnings Presentation
39 slides from Vtex's earnings presentation, Feb 24, 2022
Slide 1: Business Overview Fourth Quarter 2021
Business Overview Fourth Quarter 2021 February 2022
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 software-as-a-service digital commerce platform
VTEX provides a software-as-a-service digital commerce platform for enterprise brands and retailers. 03
Slide 4: We are building the infrastructure that enables brands to be relevant
We are building the infrastructure that enables brands to be relevant for the convenience-driven consumer. 04
Slide 5: 82% of our ARR comes from enterprise customers
We are a SaaS commerce 82% 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 $129K in ARR(1). (1) As of December 31, 2021. Per active online sto
Slide 6: VTEX at a glance
Financial stats VTEX at $9.7 B $125.8 M 68.2% a glance GMV B2C (2021 in USD) Revenue (2021 in USD) Non-GAAP(1) subscription gross margin (2021) Company metrics > 2.4k Number of > 3.2k Number of active online 38 Countries with active customers stores(2) online stores(2) (FY 2021) (FY 2021) (FY 2021)
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 4Q20 Extraordinary Commitment 1,032 We are in it for something bigger than ourselves 3Q21 1,624 Authenticity We are free to be who we are 4Q21 1,727 On the Playing Field We make ourselves responsible for
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 +$3.2T in Ecommerce Ecommerce Brazil LatAm ex-BRA RoW Growth (2021) Penetration 5 years Latin America 11% +$3.7T in 7.4 1
Slide 10: Addressing a massive ecommerce market with significant room for further penetration
Addressing $7.4T Worldwide a massive ecommerce market (2025) market with significant room for further penetration $4.9T Worldwide ecommerce market (2021) $139bn LatAm ecommerce market $9.7bn GMV(1) (2021) Source: eMarketer Source: Insider Intelligence (1) As of FY 2021 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: We deliver unprecedented time to revenue with 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: Our 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 Distributed OMS Mobile Physical stores Physical 1st party location fulfillment Field sales Dropship partners Native Marketplace 3rd party sellers Live Shopping, Conversational
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: We leverage the network effect of a unique ecosystem of partners
Payment We leverage the network effect of a Shipping unique ecosystem of partners. Fraud & Lending 2,000+ 20%+ Integrated solutions of GMV from Collaborative Commerce transactions 500+ Marketplace System integrators 65%+ of GMV from customers using 200+ 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: 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: We have 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 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: 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(1) FX Neutral % Revenue CAGR 28% CAGR 19-21 19-21 Brazil LatAm ex-BRA RoW (4) 96% 134% 2-year average 84% 46% Histor
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$250k USD (Thousands) Top 100 Customers CAGR 17-21: 23% Top 25 Customers CAGR 17
Slide 24: Top Customers are growing and opening new stores
Top 100 Customers are growing and opening new stores in the same country and expanding to different countries Circle sizes in proportion to the years’ 2021 Avg. ARR / Top 100 Customers 34 countries 4.8 stores / customer # Countries ARR 56.8 M 24% CAGR 2017 17-21 13 countries 2.2 stores / customer ARR
Slide 25: Diversified revenue mix
Diversified revenue mix We are diversified across verticals. Our software works well for many different industries We are also diversified across customer tenure. We create long-term relationships between VTEX and our customers We have a fragmented and diversified customer base Customer verticals Custome
Slide 26: Business model: we sell growth
Competitors sell software and services We sell growth Platform clients are charged: Business model VTEX offers a comprehensive subscription solution that provides access to our Fixed Fee homogeneous multi-tenant SaaS platform. We grow with our customers and make ourselves responsible for their succes
Slide 27: Strong land and expand model driving results
Strong land and expand model driving results Revenue cohort, FX neutral (US$ 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 75% CAGR 63% CAGR 59% CAGR 52% CAGR 19-21 (FX neutral) 19-21 (FX neutral) 19-21 (FX neutral) 19-21 (FX neutral) 9.7 2.9 125.8 37.1 2.5 7.5 98.7 29.1 19.9 6
Slide 30: Subscription gross margin continues to grow
Subscription gross margin continues to grow We increased our investments to capture the ecommerce market opportunity Non-GAAP subscription gross margin(1) Non-GAAP loss from operations(1) As % of subscription revenue As % of revenue(2) G&A R&D S&M 103% 96% 93% 70% 68% 68% 70% 65% 59% 54% $66 $81 $18
Slide 31: Non-GAAP income (loss) from operations bridge
Non-GAAP income (loss) from operations bridge Margin expansion as a result of 4Q seasonality and VTEX’s operating leverage 2.9% 1.7% 6.3% (0.6)% (29.3)% 2.0% (41.6)% 3Q21 Δ Gross Δ Δ Δ Δ 4Q21 Non-GAAP profit S&M R&D G&A Others Non-GAAP Income Income (loss) from (loss) from operation operation 31
Slide 32: Investment highlights summary
Massive TAM Latam leadership growing globally Blue-chip customer base Robust technology with speed to market and customization Strong VTEX ecosystem Powerful business model 32
Slide 33: Appendix
Appendix 33 The Enterprise Digital Commerce Platform
Slide 34: Subscription gross profit reconciliation (US$ millions)
Subscription gross profit reconciliation (US$ millions) Subscription gross profit 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Subscription revenue 58.3 93.4 24.7 29.7 29.6 34.5 118.5 Subscription gross profit 42.5 65.6 15.9 20.2 19.9 24.1 80.1 Shared base compensation 0.0 0.1 0.1 0.2 0.3 0.1 0.7 Non
Slide 35: Non-GAAP income (loss) from operations (US$ millions)
Non-GAAP income (loss) from operations (US$ millions) Operating Income 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Income (loss) from operation (1.8) 6.5 (12.0) (16.4) (24.4) (13.1) (65.9) Share-based compensation expense 0.7 3.3 3.2 5.5 9.3 1.6 19.6 Amortization of intangibles related to acquisi
Slide 36: Operating expenses reconciliation (US$ millions)
Operating expenses reconciliation (US$ millions) Sales & Marketing 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Sales & Marketing expense (20.2) (23.8) (11.0) (15.7) (19.3) (17.5) (63.5) Share-based compensation expense 0.2 1.0 0.7 1.6 2.6 0.6 5.5 Amortization of intangibles related to acquisition
Slide 37: FX neutral measures reconciliation
FX neutral measures FX Neutral As As Reported reconciliation Measures Reported Percentage Percentage in USD millions 4Q21 4Q20 4Q21 4Q20 Change Change Subscription revenue 34.5 27.7 24.8% 35.0 27.7 26.4% Services revenue 2.6 1.4 80.3% 2.7 1.4 89.4% Total revenue 37.1 29.1 27.5% 37.7 29.1 29.5% Subsc
Slide 38: FX neutral measures reconciliation
FX neutral measures FX Neutral As As Reported reconciliation Measures Reported Percentage Percentage in USD millions 2021 2020 2021 2020 Change Change Subscription revenue 118.5 93.4 26.9% 120.7 93.4 29.2% Services revenue 7.3 5.3 37.6% 7.4 5.3 39.4% Total revenue 125.8 98.7 27.5% 128.1 98.7 29.8% S
Slide 39: Thanks!
Thanks! investors@vtex.com www.investors.vtex.com 39