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Brazil's VTEX Q3 revenue rises 6.3%, slightly beats estimates

By Reuters News


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.)

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