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VTEX (VTEX)
NYSE:VTEX
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VTEX
(NYSE:VTEX)
Rating:62Neutral
Price Target:
$4.50
▲(11.11% Upside)
Positive Factors
AI Capabilities
VTEX's new AI capabilities improve their core DTC platform, leading to increased conversion and enhanced customer service.
International Expansion
Flagship clients are a key component for the acceleration of its international expansion and should be the entry point for even more clients.
Market Recognition
VTEX brand is gaining international recognition as their platform is getting ranked as a global eCommerce leader by independent parties.
Negative Factors
Financial Performance
The downside revision of -40%/-35% in net income for 2025/2026 is mostly driven by lower financial income, which derives from a lower cash position.
Growth Outlook
The company reduced its 2025 growth guidance to 9%-12% from an already soft outlook of 14%-17%.
Regional Performance
LatAm ex-Brazil historical growth makes analysts less confident with the international thesis, as it underperformed significantly compared to Brazil.
VTEX (VTEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$745.27M
Dividend YieldN/A
Average Volume (3M)1.31M
Price to Earnings (P/E)75.0
Beta (1Y)0.70
Revenue Growth4.51%
EPS Growth8241.83%
CountryUS
Employees1,368
SectorTechnology
Sector Strength92
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.04
Shares Outstanding101,550,026
10 Day Avg. Volume2,041,156
30 Day Avg. Volume1,306,229
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue4.51
Enterprise Value/Gross Profit6.08
Enterprise Value/Ebitda65.82
Forecast
1Y Price Target
$7.91Price Target Upside95.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
VTEX Business Overview & Revenue Model
Company DescriptionVTEX is a leading global digital commerce platform that empowers enterprises to orchestrate their entire commerce ecosystem. Founded in Brazil, VTEX serves a wide range of sectors including retail, manufacturing, and consumer goods, providing a comprehensive set of solutions for creating and managing online stores, integrating with third-party systems, and optimizing customer experiences. The platform offers a suite of e-commerce, marketplace, and order management capabilities designed to enable businesses to scale efficiently and innovate rapidly.
How the Company Makes MoneyVTEX primarily generates revenue through a subscription-based model, where businesses pay for access to its cloud-based digital commerce platform. This includes fees for the use of its e-commerce, marketplace, and order management solutions. The company also earns money from transactional fees, which are applied to the sales processed through its platform. Additionally, VTEX benefits from strategic partnerships with technology providers and system integrators, as well as offering professional services to help clients implement, customize, and optimize their digital commerce environments.
VTEX Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -32.16%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a resilient performance with significant achievements in global expansion and operational efficiency. Despite challenges in Argentina and market dynamics in Brazil, VTEX demonstrates strong financial discipline and profitability, underpinned by strategic initiatives in B2B commerce and retail media.Q2-2025 Updates
Positive Updates
Global Expansion Success
VTEX expanded its partnership with Whirlpool in the U.S. for the launch of the KitchenAid website and added new enterprise customers in the U.S. and Europe, with these markets growing twice as fast as the overall company.
Strong Financial Performance
Non-GAAP income from operations increased by 46% in FX neutral to $8.5 million, representing a 14.4% margin and a 3.3% point margin increase year-over-year.
Subscription Revenue Growth
Subscription revenue reached $57.2 million, representing an 11% year-over-year increase in FX neutral.
Operational and Gross Margin Improvements
Gross profit reached $45.3 million, up 15.2% in FX neutral, with non-GAAP subscription gross margin reaching 80% in Q2 2025, up 180 basis points year-over-year.
Innovation and Strategic Initiatives
Investments in B2B commerce, retail media, and AI-powered solutions are unlocking new revenue streams and reinforcing VTEX's position in the market.
Negative Updates
Challenges in Argentina
The early signs of recovery in Argentina seen in the first quarter did not continue, with Q2 reflecting a reversal to negative double-digit GMV growth in FX neutral.
Brazil Market Dynamics
A mix shift towards new and larger customers with lower implied take rates in Brazil resulted in a more limited contribution to revenue growth.
Subscription Revenue Below FX-Neutral Guidance
Subscription revenue was within guidance in U.S. dollars but below on an FX-neutral basis due to market conditions.
Company Guidance
During the VTEX earnings call for Q2 2025, the company raised its guidance for non-GAAP income from operations and free cash flow by over 10%, despite a challenging market environment in Brazil and Argentina. Subscription revenue reached $57.2 million, representing an 11% increase year-over-year on an FX-neutral basis, although it was below guidance on an FX-neutral basis. Gross profit was $45.3 million, up 15.2% on an FX-neutral basis, with a 3.5 percentage point margin increase year-over-year. The company reported a non-GAAP income from operations of $8.5 million, marking a 46% increase on an FX-neutral basis and a 14.4% margin. VTEX's GMV reached $4.8 billion, growing 9% year-over-year in U.S. dollars and 14% on an FX-neutral basis. Despite macroeconomic challenges, VTEX emphasized its resilient business model, operational leverage, and successful global expansion, particularly in the U.S. and Europe, where growth was twice as fast as the overall company.VTEX Financial Statement Overview
Summary
VTEX demonstrates strong financial health with consistent revenue growth and improved profitability metrics. The balance sheet is robust, with low leverage and a strong equity base, while cash flows indicate effective cash management. However, slow revenue growth and significant cash outflows from financing activities are areas for improvement.Income Statement
VTEX has shown consistent revenue growth over the past years, with a significant improvement in profitability margins. The TTM data indicates a gross profit margin of 74.2% and a net profit margin of 6.7%, which are strong indicators of operational efficiency. Notably, the revenue growth rate from 2024 to TTM is modest at 0.7%, suggesting stable but slow expansion. The EBIT and EBITDA margins are also positive, reflecting improved operational performance.70
Positive
Balance Sheet
The balance sheet of VTEX reflects a strong equity position with an equity ratio of 69.1% TTM, indicating financial stability. The debt-to-equity ratio is low at 0.013, suggesting minimal reliance on debt financing. The return on equity for the TTM is 6.2%, indicating a reasonable return on shareholders' investments. The company has maintained a healthy cash position relative to its liabilities, supporting its financial robustness.75
Positive
Cash Flow
VTEX has shown improvement in cash flow generation with a TTM free cash flow of $29.5 million, a growth of 17% from the previous year. The operating cash flow to net income ratio is 2.01, indicating efficient conversion of net income to cash. The free cash flow to net income ratio is 1.93, demonstrating strong cash generation capabilities. Despite these strengths, the cash flow from financing activities reflects significant outflows, which could impact future liquidity.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 228.23M | 226.71M | 201.52M | 157.62M | 125.77M | 98.68M |
| Gross Profit | 169.27M | 167.29M | 140.57M | 104.79M | 76.18M | 63.83M |
| EBITDA | 15.65M | 14.40M | -4.03M | -50.41M | -64.42M | 7.06M |
| Net Income | 15.30M | 12.00M | -13.69M | -52.42M | -60.51M | -825.00K |
Balance Sheet | ||||||
| Total Assets | 355.70M | 366.78M | 341.14M | 357.67M | 414.97M | 140.01M |
| Cash, Cash Equivalents and Short-Term Investments | 205.28M | 214.81M | 209.41M | 238.56M | 298.20M | 75.53M |
| Total Debt | 3.20M | 3.31M | 4.10M | 6.79M | 9.27M | 12.51M |
| Total Liabilities | 109.82M | 110.98M | 100.81M | 83.00M | 87.78M | 64.26M |
| Stockholders Equity | 245.84M | 255.75M | 240.29M | 274.66M | 327.18M | 75.62M |
Cash Flow | ||||||
| Free Cash Flow | 29.50M | 25.19M | 3.79M | -29.56M | -54.74M | 9.52M |
| Operating Cash Flow | 30.80M | 27.26M | 4.26M | -29.22M | -52.99M | 11.16M |
| Investing Cash Flow | 3.81M | -20.01M | 38.42M | -43.38M | -166.78M | -6.10M |
| Financing Cash Flow | -28.92M | -14.03M | -38.43M | -19.58M | 283.68M | 24.96M |
VTEX Technical Analysis
Negative
4.05
Price Trends
6.04
Negative
5.82
Negative
5.91
Negative
Market Momentum
-0.61
Positive
20.83
Positive
4.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTEX, the sentiment is Negative. The current price of 4.05 is below the 20-day moving average (MA) of 5.38, below the 50-day MA of 6.04, and below the 200-day MA of 5.91, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 20.83 is Positive, neither overbought nor oversold. The STOCH value of 4.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTEX.
VTEX Risk Analysis
VTEX disclosed 1 risk factors in its most recent earnings report. VTEX reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VTEX Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.73B | 593.71 | -0.13% | ― | 21.92% | 95.91% | |
63 Neutral | $1.47B | ― | -5.41% | ― | 5.96% | 50.29% | |
62 Neutral | $745.27M | 74.99 | 5.33% | ― | 4.51% | 8241.83% | |
61 Neutral | $375.42M | ― | -55.85% | ― | 4.06% | 57.50% | |
59 Neutral | $598.04M | 289.58 | 5.20% | ― | 30.92% | ― | |
50 Neutral | $654.23M | ― | -75.71% | ― | -5.06% | -2318.18% | |
49 Neutral | C$3.38B | 0.24 | -4.75% | 7.64% | 9.15% | -16.14% |
* Technology Sector Average
Performance Comparison
VTEX
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4.62
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DSP
Viant Technology
9.42
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BMBL
Bumble
6.38
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-2.74%
OLO
Olo
10.22
4.67
84.14%
MLNK
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19.86
-1.81
-8.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.