VTEX (NYSE:VTEX) Posts Quarterly Earnings Results

VTEX (NYSE:VTEX – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.03), Zacks reports. The company had revenue of $63.38 million for the quarter, compared to the consensus estimate of $63.19 million. VTEX had a return on equity of 12.98% and a net margin of 11.98%.

Here are the key takeaways from VTEX’s conference call:

  • VTEX cut its outlook as Brazil’s weak consumption and intense marketplace promotions pressured GMV-linked revenue. It expects Q4 FX-neutral subscription revenue to decline at a low-single-digit rate and full-year growth to be approximately flat.
  • The company said global expansion, B2B, ads, and AI grew at double-digit rates on an FX-neutral basis, while churn and win rates remained broadly stable. Management sees these growth drivers and a growing enterprise pipeline as support for a more stable growth profile over time.
  • Profitability and cash generation remained strong: non-GAAP operating income rose 27% year over year, free cash flow increased 77%, and subscription gross margin expanded to 81.1%. VTEX maintained full-year operating and free cash flow margin targets in the low 20s.
  • AI tools boosted engineering output, with merged pull requests per engineer up 100% from the Q1 baseline and cost per merge down about 46%, but higher AI-related R&D spending weighed on operating margin. Management is investing the productivity gains in platform transformation and new products, while saying the progress has not yet translated into revenue acceleration.

VTEX Stock Performance

VTEX stock traded down $0.07 during mid-day trading on Friday, hitting $3.96. 1,361,815 shares of the company’s stock traded hands, compared to its average volume of 822,110. The company has a debt-to-equity ratio of 0.02, a current ratio of 2.91 and a quick ratio of 2.91. The firm has a 50 day simple moving average of $3.82 and a two-hundred day simple moving average of $3.77. VTEX has a fifty-two week low of $2.84 and a fifty-two week high of $4.60. The stock has a market cap of $674.29 million, a price-to-earnings ratio of 26.37, a P/E/G ratio of 0.54 and a beta of 1.05.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Jefferies Financial Group restated a “buy” rating and set a $5.10 target price on shares of VTEX in a report on Thursday, August 27th. Weiss Ratings reiterated a “hold (c-)” rating on shares of VTEX in a research note on Thursday, October 29th. Morgan Stanley downgraded shares of VTEX from an “overweight” rating to an “equal weight” rating and set a $4.00 price objective for the company. in a research report on Friday, August 28th. Itau BBA Securities downgraded shares of VTEX from an “outperform” rating to a “market perform” rating and set a $4.50 price objective for the company. in a research report on Tuesday, August 25th. Finally, Wall Street Zen lowered shares of VTEX from a “buy” rating to a “hold” rating in a research note on Saturday. Two research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, VTEX currently has a consensus rating of “Hold” and a consensus target price of $4.60.

View Our Latest Analysis on VTEX

Key Stories Impacting VTEX

Here are the key news stories impacting VTEX this week:

Insider Buying and Selling at VTEX

In other news, insider André Spolidoro sold 15,000 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $4.04, for a total value of $60,600.00. Following the transaction, the insider directly owned 301,431 shares of the company’s stock, valued at $1,217,781.24. This represents a 4.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Alejandro Scannapieco sold 11,994 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $3.67, for a total transaction of $44,017.98. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 81,074 shares of company stock worth $321,901. Corporate insiders own 40.93% of the company’s stock.

About VTEX

(Get Free Report)

VTEX (NYSE: VTEX) is a global digital commerce technology company that provides software for businesses to create, operate and expand online sales channels. Its platform supports business-to-consumer, business-to-business and marketplace commerce, helping companies manage digital storefronts, catalogs, pricing, promotions, payments and customer experiences.

The company’s offerings include commerce management, an order management system, marketplace capabilities and tools designed to support headless and omnichannel retail strategies.

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Earnings History for VTEX (NYSE:VTEX)

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