VTEX (VTEX) Q1 2025 earnings summary

Executive summary

• Achieved solid Q1 2025 results with 15% FX-neutral subscription revenue growth, strong margin expansion, and robust cash generation despite macroeconomic volatility and a seasonally softer quarter.

• VTEX reported continued global expansion, serving 2,400 customers and 3,400 active online stores across 43 countries, with a strong presence in Latin America and diversified customer base.

• Recognized as a leader by IDC and as Customers' Choice by Gartner for digital commerce platforms in 2025 for the second consecutive year.

• Notable new customer wins and expansions across multiple geographies, including Americanas, Manchester City FC, and J.W. Pepper.

• Key enterprise customer go-lives and platform expansion support confidence in sustainable, profitable growth.

Financial highlights

• GMV for Q1 2025 was $4.3B, up 8% in USD and 17% FX-neutral year-over-year.

• Q1 2025 subscription revenue reached $52.6M, up 4.4% in USD and 15% FX-neutral year-over-year.

• Total revenue was $54.2M, up 2.9% in USD and 13.2% FX-neutral year-over-year.

• Non-GAAP operating income was $5.3M (10% margin), up from $2.9M YoY; non-GAAP net income was $5.3M (10% margin), up from $2.4M YoY.

• Gross profit rose to $41M (76% margin); non-GAAP subscription gross margin improved to 79% from 77.1% YoY.

• Free cash flow was $6.6M (12% margin), up from $1.6M YoY.

Outlook and guidance

• Targeting Q2 2025 FX-neutral subscription revenue growth of 12.5%-15.5% ($57.0M-$58.5M).

• Full-year 2025 FX-neutral subscription revenue growth expected at 14.0%-17.0% ($238M-$244M), with non-GAAP operating income and free cash flow margins in the mid-teens.

• Management highlights multiple growth vectors: new customer additions, GMV growth with existing customers, innovation, platform and geographic expansion, and ecosystem development.

• Cautions on macroeconomic uncertainty and GMV volatility but remains confident in market positioning and operational leverage.