Brazil's VTEX Q3 revenue rises 6.3%, slightly beats estimates
Overview
Brazil commerce platform's Q3 revenue grew 6.3% yr/yr, slightly beating analyst expectations
Q3 free cash flow rose 77% yr/yr to $13.3 mln
Company repurchased 2.8 mln shares for $10.8 mln in Q3
Outlook
Company targets Q4 subscription revenue to decrease at low-single digit percentage rate FX-neutral
Company expects Q4 gross profit to grow at approximately flat percentage rate FX-neutral
Result Drivers
AI AND PLATFORM INNOVATION - Co said accelerated software development and AI-driven features, including FastStore, contributed to improved customer conversion rates
STRATEGIC GROWTH DRIVERS - Global Expansion, B2B, Ads and AI segments grew faster than overall business, per co
ENTERPRISE AND INTERNATIONAL EXPANSION - Co cited new enterprise wins and increased contract value outside Brazil as drivers of growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $63.40 mln | $63.32 mln (5 Analysts) |
Q3 Adjusted Free Cash Flow | $13.30 mln | ||
Q3 Adjusted Income from Operations | $12.10 mln | ||
Q3 GMV | $5.50 bln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for VTEX is $4.75, about 13.4% above its November 4 closing price of $4.19
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
Nov 4 - Expedia Q3 revenue beats on B2B strength, lifts outlook
Nov 3 - Shopify Q3 revenue rises 32%, GMV hits $119 bln
Nov 4 - Mercado Libre Q3 revenue slightly beats on Commerce segment strength
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)