Gold bars to be exempt from tariffs, White House clarifies
Investing.com -- VTEX (NYSE:VTEX) reported second-quarter results that missed subscription revenue guidance, prompting the company to lower its outlook for the remainder of 2025 due to challenges in Brazil and Argentina.
The e-commerce platform provider’s subscription revenue grew 11.2% in constant currency terms, falling short of its 12.5%-15.5% guidance range and 2.8 percentage points below consensus estimates.
Total (EPA:TTEF) GMV (Gross Merchandise Value) increased 13.6% to $4.8 billion, within guidance, but the company’s take-rate decreased 5.9 basis points year-over-year to 1.21%.
This led to overall revenue growth of 9.0% in constant currency, 5.0 percentage points below analyst expectations.
VTEX reduced its third-quarter subscription revenue growth guidance to 6%-9%, down from the previous 12.5%-15.5% range. Full-year 2025 guidance was also cut to 9%-12% from 14%-17%.
The company attributed the lowered outlook to a deceleration in Brazil and negative growth in Argentina, despite strong performance in US and European markets.
With Brazil and Latin America representing approximately 90% of VTEX’s revenue, challenges in these regions significantly impact overall results.
On a positive note, subscription gross margin improved to 79.9%, 0.9 percentage points above consensus and 1.8 percentage points higher year-over-year.
Non-GAAP EBIT margin reached 14.5%, exceeding consensus by 2.5 percentage points.
The margin improvements were substantial enough for VTEX to increase its full-year 2025 EBIT guidance by 10%, despite lowering revenue growth expectations.
VTEX shares closed at $5.92 on Thursday, with analysts maintaining a price target of $7.30, representing 23% upside potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.