GICS Sector : Technology
VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers.Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors.It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Spain, the United Kingdom, and the United States.
VTEX reported a strong financial performance in Q3 2025, with subscription revenue reaching $58.4 million, up 8% in U.S. dollars and 7% FX neutral. The company's non-GAAP subscription gross margin expanded to 80%, driven by efficiency initiatives, particularly AI-powered automation and customer support. Non-GAAP net income was $10.6 million, up 41% year-over-year, with an EPS of $0.03, in line with analyst estimates. The company's free cash flow margin was 13%, with a free cash flow of $7.5 million.
Publication Date: Nov -21
VTEX's global expansion is making solid progress, with rising demand for enterprise-grade composable commerce solutions, especially in B2B. The company achieved significant wins, including a multibillion-dollar U.S. enterprise implementation and expanded its enterprise footprint in Brazil with wins such as H&M, Itau, and Picpay. As Geraldo Thomaz Jr., Founder and Co-CEO, highlighted, "We're doubling down on our four growth pillars: global expansion, B2B use case customers, retail media, and Agentic commerce."
The AI transformation is redefining how VTEX builds and delivers software, with a focus on AI-driven recommendation and intelligence search features. The company is investing decisively behind AI, not just as a feature, but as a full company transformation. VTEX is developing autonomous agents and AI copilots that automate key commerce workflows, aiming to increase efficiency and throughput.
VTEX's current valuation metrics indicate a P/E Ratio of 42.99, P/S Ratio of 2.96, and EV/EBITDA of 36.55. With analysts estimating next year's revenue growth at 12.2%, the current valuation appears to be pricing in a moderate growth trajectory. The company's strong margin expansion and AI-driven growth initiatives are expected to drive long-term value creation.
For Q4 2025, VTEX is targeting FX-neutral year-over-year subscription revenue growth of 5% to 10%, implying $65.8 million to $68.8 million. The company remains confident in its ability to reaccelerate growth over the coming quarters and years through commercial expansion and product innovation. With a strong balance sheet and disciplined growth strategy, VTEX is well-positioned for long-term success.
VTEX Customers Drive $1.0 Billion in Black Friday-Cyber Monday Sales
Dec -02
Acadian Asset Management LLC Sells 496,049 Shares of VTEX $VTEX
Nov -12
VTEX (VTEX) Q3 2025 Earnings Call Transcript
Nov -07
VTEX (VTEX) Meets Q3 Earnings Estimates
Nov -06
VTEX Reports Third Quarter 2025 Financial Results
Nov -06
VTEX Named a Challenger in the 2025 Gartner® Magic Quadrant™ for Digital Commerce
Nov -06
VTEX (VTEX) to Release Earnings on Thursday
Oct -30
VTEX to Announce Third Quarter 2025 Financial Results on November 6th, 2025
Oct -22
VTEX's subscription growth of 17.62% is driven by increasing adoption of e-commerce platforms, rising demand for omnichannel experiences, and growing need for businesses to digitize their operations. Additionally, VTEX's scalable and flexible solutions, strong partnerships, and expanding presence in emerging markets contribute to its rapid growth.
VTEX's 14.07% growth is driven by increasing adoption of e-commerce platforms, rising demand for omnichannel experiences, and growing need for digital transformation in the retail industry. Additionally, VTEX's scalable and flexible solutions, strong partnerships, and expanding presence in new markets contribute to its rapid growth.
A comprehensive e-commerce platform that enables businesses to create and manage their online stores, including product catalog management, order management, and payment processing.
A cloud-based order management system that streamlines order processing, inventory management, and fulfillment operations.
A platform that enables businesses to create and manage their own marketplaces, connecting buyers and sellers in a single platform.
A headless CMS that enables businesses to create, manage, and deliver content across multiple channels and devices.
A platform that enables businesses to connect and manage IoT devices, collecting and analyzing data to improve operational efficiency.
A platform that uses AI and machine learning to analyze customer behavior, preferences, and purchasing patterns.
VTEX's platform is highly customizable, making it difficult for substitutes to emerge. However, the rise of headless commerce and API-first commerce platforms poses a moderate threat.
VTEX's customers are primarily large enterprises, which have limited bargaining power due to their reliance on VTEX's platform for their e-commerce operations.
VTEX has a diverse supplier base, and its suppliers have limited bargaining power due to the company's strong market position and negotiating power.
The e-commerce platform market is highly competitive, and new entrants can easily disrupt the market with innovative solutions, posing a significant threat to VTEX's market share.
The e-commerce platform market is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry among competitors.
| Value | |
|---|---|
| Debt Weight | 1.68% |
| Debt Cost | 10.91% |
| Equity Weight | 98.32% |
| Equity Cost | 10.96% |
| WACC | 10.96% |
| Leverage | 1.70% |
Value: 6.6
Growth: 2.8
Quality: 7.1
Yield: 0.0
Momentum: 2.0
Volatility: 3.7
1-Year Total Return ->
Value: 6.1
Growth: 5.6
Quality: 3.2
Yield: 0.0
Momentum: 5.0
Volatility: 2.3
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Value: 4.2
Growth: 6.3
Quality: 3.5
Yield: 0.0
Momentum: 4.0
Volatility: 0.7
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Value: 4.2
Growth: 4.4
Quality: 3.4
Yield: 0.0
Momentum: 5.5
Volatility: 0.7
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Value: 6.0
Growth: 6.6
Quality: 3.9
Yield: 0.0
Momentum: 0.5
Volatility: 1.0
1-Year Total Return ->
Value: 1.5
Growth: 7.3
Quality: 6.5
Yield: 0.0
Momentum: 0.5
Volatility: 1.0
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