VTEX (VTEX) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformative year with strong enterprise customer growth, high gross retention, robust operational milestones, and the launch of new AI-powered products like VTEX Ads, Data Pipeline, Shield, and Weni by VTEX.

• Deferred revenue increased 29% year-over-year, reflecting strong contract momentum, especially in Brazil, with notable contributions from the U.S. and Europe.

• Strategic partnerships and high-profile customer wins (e.g., Walmart, Sony, Heineken, Leroy Merlin, ASICS, Coca-Cola Andina Paraguay) showcased global reach and impact.

• Number of customers with ARR above $250k grew 23% YoY, reinforcing the platform's position as a global commerce suite for enterprises.

• Land-and-expand model and global expansion continue to drive growth and customer diversification.

Financial highlights

• FY 2024 revenue was $226.7M, up 12.5% YoY in USD and 18.1% FX neutral; subscription revenue was $217.7M, up 14.4% YoY in USD and 20.2% FX neutral.

• Q4 2024 revenue was $61.5M (+1.3% YoY USD, +12.3% FX neutral); Q4 subscription revenue was $59.5M (+2.1% YoY USD, +13.4% FX neutral).

• FY 2024 GMV reached $18.2B, up 10.4% YoY in USD and 16.2% FX neutral.

• Non-GAAP operating margin improved to 13.0% in 2024 from 3.8% in 2023; Q4 2024 non-GAAP operating income was $12.4M (20% margin).

• Free cash flow for 2024 was $25.2M, up from $3.8M in 2023.

Outlook and guidance

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

• 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 for larger new customers.

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

• Continued investment in new stores and global expansion, with ~35% of total expenses outside LatAm.