Quarter 2021 Overview Business
BusinessOverviewFourthQuarter 2021February 2022
SAFE HARBORThis presentation has been prepared by VTEX (“we,” “us,” “our,” “VTEX” or the “Company”).This presentation may contain forward-looking statements relating to such matters as continued growth prospects for the Company, industry trends and product and technology initiatives.These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions,expectations and projections are reasonable in view of currently available information, you are cautioned not to place undue reliance on these forward-looking statements. Forward-lookingstatements regarding VTEX involve known and unknown risks, uncertainties and other factors that may cause VTEX’s actual results, performance or achievements to be materially different fromany future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described under “Risk Factors” and“Cautionary Statement Regarding Forward-Looking Statements” sections of VTEX’s registration statement on Form F-1 and certain of VTEX’s other filings with the U.S. Securities and ExchangeCommission. You should read this information together with the sections of VTEX’s prospectus entitled “Selected Financial and Other Information” and “Management’s Discussion and Analysisof Financial Condition and Results of Operations,” our audited consolidated financial statements and our unaudited interim condensed consolidated financial statements and their respectivenotes, which are available on our investor relations website (https://www.investors.vtex.com/).Unless required by law, VTEX undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.his presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and other data about our industry. This data involves a numberof assumptions and limitations, and you are cautioned not to give undue weight to such data and estimates. In addition, projections, assumptions and estimates of our future performance andthe future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. Neither we nor our affiliates, advisors or representatives makes anyrepresentation as to the accuracy or completeness of that data or undertake to update such data after the date of this presentation. In addition to financial information prepared in accordancewith generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in theperiod-to-period comparison, of our performance. We believe that these non-GAAP financial measures provide supplemental information that is meaningful when assessing our operatingperformance because they exclude the impact of certain amounts that our management and board of directors do not consider part of core operating results when assessing our operationalperformance, allocating resources, preparing annual budgets, and determining compensation. The non-GAAP measures have limitations, including that they may not be directly comparable toother companies, and you should not consider them in isolation or as a substitute for or superior to our GAAP financial information. See the Appendix to this presentation for a reconciliation ofnon-GAAP financial measures to their nearest GAAP equivalentAll of the information included in this presentation is updated as of December 31, 2021.Except as may be required by applicable law, we assume no obligation to publicly update or revise our statements. Numbers have been calculated using whole amounts rather than roundedamounts. This might cause some figures not to total due to rounding.02
VTEX provides asoftware-as-a-servicedigital commerceplatform for enterprisebrands and retailers.03
We are buildingthe infrastructurethat enables brandsto be relevant for theconvenience-drivenconsumer.04
82% of ourARR comesfrom enterprisecustomers(1).We are a SaaS commerceplatform for enterprises.ApparelAccessoriesHomeAppliancesEach generating at least 25K ARR, with an averageof 129K in ARR(1).(1) As of December 31, 2021. Per active online store.05ElectronicsFood& GroceryBeauty& Health
VTEX ata glanceFinancial stats 9.7 B 125.8 MGMV B2C(2021 in USD)Revenue(2021 in USD)68.2%Non-GAAP(1)subscription grossmargin (2021)Company metrics 2.4k 3.2kNumber of active onlinestores(2)(FY 2021)Number ofcustomers(FY 2021)(1) Please see appendix for reconciliation of non-GAAP metrics.(2) Active online stores means the number of unique domainsgenerating gross merchandise value.60638Countries with activeonline stores(2)(FY 2021)
10 years ofcontinuouslearning 7.5 billionIn annual GMVARR over 100 MSamsungis deployedin 5 countriesInternational expansionOmnichannel/click and collect/delivery from storeLatAmCencosud implementsVTEX across LatAmSmart checkout& cloud-native microservices architectureFounded inRio de Janeiro by recentlygraduated engineersThe first omnichanneloperation15 officesacross the worldCommerce platformprovider for Carrefourin Brazil 1 billionIn annual GMVVTEX continues investing in 2.4 billionNorth America& EuropeIn annual GMVEcommerce platformprovider for Walmartin Brazil20002008Whirlpool deploystheir marketplaceEstablishedrevenue sharingbusiness 02021
A founder-led,future-drivenculture of integrityIntegrityWe honor our wordEmployee headcount4Q20Extraordinary CommitmentWe are in it for somethingbigger than ourselves1,0323Q211,624AuthenticityWe are free to be who we are4Q211,727On the Playing FieldWe make ourselvesresponsible for success08*Includes CX employees
VTEX is the gateway to the fastest-growingecommerce market in the worldEcommerce isaccelerating globallyLatAm is thefastest-growing region 3.2T in5 yearsEcommerceGrowth (2021)4.20.52010.2020.2025Worldwide retail ecommerce sales ( trillion)EcommercePenetrationLatin America11%Central &Eastern Europe11%WesternEurope14%Middle East &Africa3%North America14%Asia-Pacific29%Worldwide19%7.4 3.7T in10 yearsVTEX is leadingecommerce in LatAm09Source: eMarketer; Insider IntelligenceBrazilLatAm ex-BRARoW2021Revenue breakdown (%) per region
7.4TAddressinga massivemarket withsignificantroom for furtherpenetrationWorldwideecommerce market(2025) 4.9TWorldwideecommerce market(2021) 139bn 9.7bnGMV(1)LatAmecommerce market(2021)Source: eMarketer(1) As of FY 2021Source: Insider Intelligence10
HighSpeed to MarketBorn SMBRapid timeto revenueLimitedcustomizabilityLow total costof ownershipLacksfeature depthCustomization meetsSpeed to MarketBorn SaaS for EnterprisesExtensive out-of-the-box capabilities speedCollaborative multiple go-to-market strategiesComposable customizable & fast evolvingBorn on-premiseHighly scalableLong implementationHighly flexible andcustomizableSlow to keep up withecosystem evolutionLowCurrent offeringsforce enterprises tochoose betweendeep customizationor speed to market.Low11CustomizationHigh
We deliverunprecedentedtime to revenue withan extensive set ofout-of-the-boxcommercecapabilities.VTEX IODevelopment PlatformOnlineStoreERPVTEXOut-of-the-box CoreAI-poweredSearchIn StorePoint ofSaleTraditional roductManagementLoginCartMarketplace& lacePOS1212
Our Collaborative Commerce approach enablesenterprises to explore multiple ways to sell and fulfill.3rd party fulfillmentWebDistributed OMSMobilePhysical stores1st partyfulfillmentPhysicallocationField salesDropship partnersNative Marketplace3rd party sellersLive Shopping,Conversational andSocial CommerceMarketplacesSales Channels1313Fulfillment Channels
Our ComposableCommerce technologyis flexible andextensible by design.API-first servicesMulti-tenant architectureVTEX IO low-code development1414
PaymentWe leverage thenetwork effect of aunique ecosystemof partners.ShippingFraud & Lending2,000 Integrated solutions500 System integrators200 Marketplaces150 Payment solutions80 Logistics companiesNote: ecosystem data as of 4Q2120% of GMV from CollaborativeCommerce transactionsMarketplace65% of GMV from customers usingCollaborative Commerce integrations20,000 Monthly active users accessingVTEX developer portal400 Deploys by 3rd parties inVTEX IO on average per day15POS &OmnichannelSearch &MerchandisingMarketingAutomation
Our CompetitiveAdvantages.Extensive out of the box solutionsCollaborative commerce strategyComposable commerce technologyVibrant ecosystem Attract Customers at Different Stages of MaturityDisplacementsGreenfieldFROM ENTERPRISE PLATFORMS··Looking to start quicklyLimited experience. Need toevolve as they learn··Prioritizing a solution that canscale as they grow·Looking to innovate and evolve·Looking to upgrade to amore robust solution·Facing scalability issues given legacystructures’ limitations·Facing challenges givenlack of feature depth onSMB-focused platformsLooking for an ecosystem tominimize building solutions ontheir own·16FROM SMB PLATFORMSSearching for new go-to-marketstrategies to drive sales growth
Source: IDC, 2020We arerecognizedas a erceEpiserverMajor PlayersKibo CommerceHCLcommercetoolsElastic rueCommerceSitecoreContendersParticipantsLeader in IDC MarketScape:Worldwide B2C Digital Commerce Platforms17
The age of standalonesoftware is gone –modern software isas valuable as thenetwork it powers.18
We have adisciplined goto-market andscaling strategyEcommerceSoftwareCommerceEcosystemLower win rateHigher win rateAll leadsMore thanhalf of leadsfrom the VTEXsales teamTesting themarket bygetting a firstreferencecustomerfrom ecosystemor in-boundBuild casesand startrecruitingtalent19Createmomentumby increasingsales and ently
Multiple vectors forongoing ation andplatform expansionGrow GMV withexisting customersNew customeradditions20
FinancialOverview21
We are driven by ascalable and global futureWith an attractive unit economics: LTV/CAC(1) above 6xLogo ExpansionLand-and-ExpandGlobal ExpansionNumber of Stores(2)NRR(1) FX Neutral% Revenue28% CAGRBrazil19-21LatAm ex-BRARoW(4)FX NeutralCAGR19-2196%134%2-year average84%46%16%32%25%Number of Stores Growth, YoYHistoricalNRR rateBenefitted bylockdownsImpacted bystores reopening33%90%12%Same Store Sales (FX Neutral)(1) LTV/CAC means lifetime value to customer acquisition costs. LTV is calculated as gross profit from new sales divided by the subscription churn rate of thelast twelve months, and CAC as total sales and marketing expenses incurred during the four quarters preceding the quarter in which the calculation is made.22(2) Active online stores: number of unique domains generating gross merchandise value in Vtex Platform.(3) Calculated by using the average monthly exchange rates for the applicable months during 2020, adjusted by inflation in countries with hyperinflation, andapplying them to the corresponding months in 2021, as applicable, so as to calculate what our results would have been had exchange rates remained stablefrom one year to the next.
We are proud of ourcustomers' journeysOur customers continued growing at a healthy pace,on top of the growth they experienced in 2020Average Revenue by Customer: Top 100 vs Top 25Number of customers with revenue US 250kUSD (Thousands)Top 100 CustomersTop 25 CustomersSSS Top 100SSS Top 25CAGR 17-21: 23%CAGR 17-21: %13%Note: Same Store Sales (SSS) for Top 100 and Top 25 Customers calculated in FX Neutral.2017Stores46Stores / Customer 2.62320182019202020211395.31905.33135.44245.6
Top 100 Customers are growing and opening new storesin the same country and expanding to different countriesCircle sizes in proportion to the years’Avg. ARR / Top 100 Customers2021# Countries34 countries4.8 stores /customerARR 56.8 M24% CAGR17-21201713 countries2.2 stores /customerARR 23.9 M24
Diversified revenue mixWe are diversified across verticals. Our software works well for many different industriesWe are also diversified across customer tenure. We create long-term relationships between VTEX and our customersWe have a fragmented and diversified customer baseCustomer verticalsCustomer tenureCustomer concentration% of VTEX platform revenue% of 2021 VTEX platform revenue% of 2021 VTEX revenueOthersToys & HobbiesDepartment stores 1 yearLargest customersHome, Furn. & Decor.1-3 yearsTop 2-10 customersElectronics3 yearsOther customersHome appliancesGroceryBeauty & HealthApparel & Accessories20212021202125
Competitors sell software and servicesWe sell growthPlatform clients are charged:Business modelVTEX offers a comprehensive subscriptionsolution that provides access to ourhomogeneous multi-tenant SaaS platform.Fixed FeeWe grow with our customers and makeourselves responsible for their success, bycharging most of our revenues fromtransaction-based fees.Variable Monthly Take Rate26
Strong land and expand model driving resultsRevenue cohort, FX neutral (US millions)Cohort analysis on a FX neutral basis. We define a yearly cohort of customers as the group of customers that received thefirst invoice of our VTEX platform in the prior year to remove customers ramp-up effect from our cohort analysis.27
Directional P&L breakdown by existing vs. new storesHigh margin existing stores’ P&L, growing at VTEX’s net revenue retentionInvestment in new stores’ P&L, while impacting margin in short-term, yields returns aligned with our LTV/CACOur global expansion outside of Latam has an estimated impact of 25% of our total expenses (35% of S&M, 15% of R&D, and 10% of G&A)2021A2021 Existing stores2021 New stores(VTEX platform SMB others services)( 80% of VTEX rev., excl. SMB)( 20% of VTEX rev., excl. SMB)61% 68% 35%Sales & Marketing(45)% (2)% (190)%Research & Development(30)% (30)% (30)%General & Administrative(19)% (20)% (20)%Operating margin(33)% 15% (205)%% of revenue, non-GAAPGross margin(1)(1) Services revenue and services cost are included only in the “New Stores” P&L, as our services aremostly related to white glove PMO service to guide new stores implementations by 3rd party SIs.28
Solid growth and SaaS metricsWith an attractive business model: we grow by enabling our customers to growGMVRevenueUS billionsUS millions75% CAGR63% CAGR59% CAGR52% CAGR19-21 (FX neutral)19-21 (FX neutral)19-21 (FX neutral)19-21 (FX 3.844%29.198.7130%16%43%YoY growth FX neutral (%)Note: we calculate FX Neutral measures by using the average monthly exchange rates for each month duringthe previous year and applying them to the corresponding months in the current year, so as to calculate whatour results would have been had exchange rates remained stable from one financial year to the next.95%30%45%YoY growth FX neutral (%)2978%30%
Subscription gross margin continues to growWe increased our investments to capture the ecommerce market opportunityNon-GAAP subscription gross margin(1)Non-GAAP loss from operations(1)As % of subscription revenueAs % of revenue(2)G&AR&DS&M103%96%70%68%65%68%70%59%54% 66 81 18 2093% 53 24 17 33Non-GAAP Operating expenses ( mm)Non-GAAP Subscription gross profit ( mm)(1) Non-GAAP metrics. See appendix for reconciliation.(2) The total percentage of total expenses over net revenue presented in the chart includes other revenues (expenses). 12030 34
Non-GAAP income (loss) from operations bridgeMargin expansion as a result of 4Q seasonality and VTEX’s operating n-GAAPIncome(loss) fromoperationΔ ncome(loss) fromoperation
Massive TAMLatam leadership growing globallyBlue-chip customer baseRobust technology with speedto market and customizationStrong VTEX ecosystemPowerful business model32
Appendix33
Subscription gross profit reconciliation(US millions)Subscription gross profit20192020Q1 2021Q2 2021Q3 2021Q4 20212021Subscription revenue58.393.424.729.729.634.5118.5Subscription gross profit42.565.615.920.219.924.180.1Shared base compensation0.00.10.10.20.30.10.7Non-GAAP subscription gross 68.8%68.2%69.9%68.2%Non-GAAP subscription gross margin34
Non-GAAP income (loss) from operations(US millions)Operating Income20192020Q1 2021Q2 2021Q3 2021Q4 20212021Income (loss) from re-based compensation expense0.73.33.25.59.31.619.6Amortization of intangibles related to (33.9)%(41.6)%(29.3)%(34.3)%Offering expenses ("IPO")Non-GAAP income (loss) from operationsNon-GAAP income (loss) from operations margin35
Operating expenses reconciliation(US millions)Sales & Marketing20192020Q1 2021Q2 2021Q3 2021Q4 20212021Sales & Marketing hare-based compensation expense0.21.00.71.62.60.65.5Amortization of intangibles related to (38.9)%(44.9)%(50.9)%(44.6)%(45.1)%Offering expenses ("IPO") (1)Non-GAAP Sales & Marketing expenseNon-GAAP Sales & Marketing expense marginResearch & Development20192020Q1 2021Q2 2021Q3 2021Q4 20212021Research & Development are-based compensation expense0.31.11.11.73.3(0.2)5.9Amortization of intangibles related to ing expenses ("IPO") (1)Non-GAAP Research & Development expenseNon-GAAP Research & Development expense al & Administrative20192020Q1 2021Q2 2021Q3 2021Q4 20212021General & Administrative 01.21.93.01.07.1Amortization of intangibles related to acquisitions--0.00.00.00.00.0Offering expenses ("IPO")----0.9-0.9Non-GAAP General & Administrative AAP General & Administrative expense 9.0)%Share-based compensation expense(1) Offering expenses ("IPO") for Sales and Marketing and Research and Developmentare travel-related expenses exclusively for the Event Day.36
FX neutral measuresreconciliationAs ReportedFX NeutralMeasuresAsReportedin USD ChangeSubscription revenue34.527.724.8%35.027.726.4%Services revenue2.61.480.3%2.71.489.4%Total revenue37.129.127.5%37.729.129.5%Subscription cost(10.5)(9.8)6.4%(10.3)(9.8)4.9%Services cost(3.3)(2.0)63.1%(3.3)(2.0)62.8%Total cost(13.8)(11.9)16.0%(13.6)(11.9)14.8%Gross profit23.417.235.4%24.117.239.6%Operating expenses(36.5)(19.3)89.0%(36.4)(19.3)88.2%Income (loss) fromoperations(13.1)(2.1)537.0%(12.3)(2.1)494.6%37
FX neutral measuresreconciliationAs ReportedFX NeutralMeasuresAsReportedin USD ChangeSubscription .339.4%Total revenue125.898.727.5%128.198.729.8%Subscription cost(38.4)(27.8)38.1%(38.4)(27.8)38.3%Services cost(11.2)(7.1)59.0%(11.1)(7.1)56.9%Total cost(49.6)(34.9)42.3%(49.5)(34.9)42.0%Gross profit76.263.819.4%78.563.823.1%Operating me (loss) fromoperations(65.9)6.5n/a(63.2)6.5n/aServices revenue38
Thanks!investors@vtex.comwww.investors.vtex.com39
VTEX is the gateway to the fastest-growing ecommerce market in the world Source: eMarketer; Insider Intelligence Ecommerce Penetration 11% 14% 3% 14% 29% 19% 11% 3.2T in 5 years 3.7T in 10 years Worldwide retail ecommerce sales ( trillion) Ecommerce Growth (2021) Ecommerce is accelerating globally VTEX is leading ecommerce in LatAm
August 2, 2021 15 August 2, 2021 16 August 2, 2021 17 August 3, 2021 18 August 4, 2021 19 August 5, 2021 20 August 6, 2021 21 August 9, 2021 22 August 9, 2021 23 August 9, 2021 24 August 10, 2021 25 August 11, 2021 26 August 12, 2021 27 August 13, 2021 28 August 16, 2021 29 August 16, 2021 30 August 16, 2021 31
3 % vs. September Quarter 2019 September Quarter Guidance (As of July 14, 2021) September Quarter Outlook Expect September quarter pre-tax margin, adjusted1 in the mid-single digits at the mid-point of guidance ranges Total Revenue, adjusted1 expected to improve another 2 billion versus June quarter 2021 on 10% capacity growth as business and international demand continues to recover
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Enclose your check or money order made payable to “United States Treasury.” Be sure to enter your EIN, “Form 941,” and the tax period (“1st Quarter 2021,” “2nd Quarter 2021,” “3rd Quarter 2021,” or “4th Quarter 2021”) on your check or money order. Don’t send cash. Don’t stapl
TROPICAL BATTERY ANNUAL REPORT 2020 2nd Quarter Financial Year 2021 vs 2nd Quarter Financial Year 2020 REVENUE 7.5% OPERATING EXPENSES 11.6% EBIDTA 49.6% NET INCOME AFTER TAX 314.4% Tropical Battery Compant Limited Interim Report 2nd Quarter Period Ended March 31, 2021 2nd Quarter Interim Report to our Shareholders 1 Unaudited Financial Statements:
Selected Unaudited 2021 First Quarter Financial Data. May 2021 2 . approximate 450 all-suite tower and is targeted to open in the later part of 2021 or early 2022. The addition of Raffles furtherexpands GEG’s portfolio of . up 1% year-on-year and flat quarter-on-quarter Q1 Group Adjusted EBITDA of 859 million, up 204% year-on-year .
STATISTICS SOUTH AFRICA 2 P0441 Gross domestic product, Fourth quarter 2021 Key findings for the fourth quarter of 2021 Real gross domestic product (measured by production) increased by 1,2%1 in the fourth quarter of 2021, following a decrease of 1,7% in the third quarter of 2021. Figure 1 - Growth in GDP (%)
Personal saving was 4.12 trillion in the first quarter, compared with 2.25 trillion in the fourth quarter. The personal saving rate—personal saving as a percentage of disposable personal income—was 21.0 percent in the first quarter, compared with 13.0 percent in the fourth quarter. Source Data for the Advance Esti
