Vtex · NYSE:VTEX
Vtex — Q3 2021 Earnings Presentation
37 slides from Vtex's earnings presentation, Nov 17, 2021
Slide 1: Business Overview Third Quarter 2021
Business Overview Third Quarter 2021 November 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 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: 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 $9.3 B $118 M 67% a glance GMV B2C (3Q21 LTM in USD) Revenue (3Q21 LTM in USD) Non-GAAP(1) subscription gross margin (3Q21 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 3Q20 We are in it for something 847 bigger than ourselves 3Q21 Authenticity We are free to be who we are 1,624 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 ecommerce 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 $9.3bn GMV(1) (2020) Source: eMarketer Source: Insider Intelligence (1) As of September 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 an extensive set of 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 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: 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: 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+ 15%+ Integrated solutions of GMV from Collaborative Commerce transactions 200+ Marketplace System integrators 60%+ 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: 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: 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: 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 23: 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 23
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: 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 26: 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 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 % of revenue, non-GAAP 2020A 2020 Existing stores 2020 New store
Slide 28: 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 74% CAGR 64% CAGR 19-21 (FX neutral) 19-21 (FX neutral) YoY growth YoY growth FX neutral 44% 135% 47% 190% 4% FX neutral 43% 95% 29% 140% 12% (%) (%) Note:
Slide 29: 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 $19 $20 expenses $41 $53 $13 $33 ($mm) ($mm) (1) Non-GAAP metrics. See appendix for reconciliation. (2) The total percentage
Slide 30: Non-GAAP income (loss) from operations bridge
Non-GAAP income (loss) from operations bridge Compression as a result of incremental investments as we move aggressively to capitalize on the acceleration of ecommerce growth 30
Slide 31: Massive TAM, LatAm leadership growing globally, blue-chip customer base
Massive TAM Latam leadership growing globally Blue-chip customer base Robust technology with speed to market and customization Strong VTEX ecosystem Powerful business model 31
Slide 32: Appendix
Appendix 32 The Enterprise Digital Commerce Platform
Slide 33: Subscription gross profit reconciliation
Subscription gross profit reconciliation (US$ millions) Subscription gross profit 2019 2020 Q1 2021 Q2 2021 Q3 2021 LTM Q3 2021 Subscription revenue 58.3 93.4 24.7 29.7 29.6 111.6 Subscription gross profit 42.4 65.6 15.9 20.2 19.9 73.9 Shared base compensation 0.0 0.1 0.1 0.2 0.3 0.7 Non-GAAP subscript
Slide 34: Non-GAAP operating income reconciliation
Non-GAAP operating income reconciliation (US$ millions) Operating Income 2019 2020 Q1 2021 Q2 2021 Q3 2021 Income (loss) from operation (1.8) 6.5 (12.0) (16.4) (24.4) Share-based compensation expense 0.7 3.3 3.2 5.5 9.3 Amortization of intangible related to acquisitions 0.7 0.8 0.4 0.5 0.5 Offering e
Slide 35: Operating expenses reconciliation
Operating expenses reconciliation (US$ millions) Sales & Marketing 2019 2020 Q1 2021 Q2 2021 Q3 2021 Sales & Marketing expense (20.2) (23.8) (11.0) (15.7) (19.3) Share-based compensation expense 0.2 1.0 0.7 1.6 2.6 Amortization of intangible related to acquisitions 0.2 0.4 0.2 0.3 0.3 Offering expens
Slide 36: FX neutral measures reconciliation
FX neutral measures FX Neutral As As Reported reconciliation Measures Reported Percentage Percentage in USD millions 3Q21 3Q20 3Q21 3Q20 Change Change Subscription revenue 29.6 26.3 12.6% 28.9 26.3 9.7% Services revenue 2.2 1.3 67.4% 2.2 1.3 62.2% Total revenue 31.9 27.7 15.2% 31.0 27.7 12.3% Subscr
Slide 37: Thanks!
Thanks! investors@vtex.com www.investors.vtex.com 37