VTEX (VTEX) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformative year with strong enterprise customer additions, high gross retention, and product innovation, despite Q4 revenue coming below expectations due to FX volatility and softer consumer spending in Brazil.

• Deferred revenue increased 29% year-over-year, and the number of customers paying over $250,000 annually rose 23%, reflecting upmarket traction.

• Achieved $226.7M in FY 2024 revenue, up 12.5% year-over-year; FX neutral revenue up 18.1%.

• GMV grew to $18.2B in FY 2024, up from $16.5B in 2023.

• Expansion into a connected ecosystem with AI-powered solutions and strategic partnerships, such as with Accenture, enhanced the platform's value proposition.

Financial highlights

• Q4 2024 GMV was $5.4B, flat year-over-year in USD, but up 11% FX neutral; full-year GMV reached $18.2B, up 10.4% in USD and 16.2% FX neutral.

• Q4 revenue was $61.5M, up 1.3% in USD and 12.3% FX neutral; full-year revenue was $226.7M, up 12.5% in USD and 18.1% FX neutral.

• Subscription revenue for Q4 was $59.5M, up 2.1% in USD and 13.4% FX neutral; full-year subscription revenue was $217.7M, up 14.4% in USD and 20.2% FX neutral.

• Non-GAAP subscription gross margin reached 78.2% for FY 2024; Q4 2024 non-GAAP subscription gross margin was 78.9%.

• Free cash flow for 2024 increased to $25.2M from $3.8M in 2023; ended 2024 with $18.7M in cash and $196.1M in short-term investments.

Outlook and guidance

• Targeting FX neutral subscription revenue growth of 13%-15% for Q1 2025 ($51M-$52M) and 14%-17% for full-year 2025 ($235M-$241M).

• Non-GAAP operating income and free cash flow margins expected in the mid-teens.

• Guidance assumes continued consumption headwinds in Brazil, gradual recovery in Argentina, and longer ramp-up times for larger new customers.

• Plans to increasingly rely on system integrator partners for new customer implementations.

• Focus on expanding upmarket, growing large customer base, and international expansion.