Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- VTEX (NYSE:VTEX) shares plummeted 18% as the company reported fourth-quarter and full-year results that fell short of expectations. The composable commerce platform, known for its enterprise customer additions and operational efficiency, faced challenges due to foreign exchange (FX) volatility and a softening in Gross Merchandise Volume (GMV) from existing customers. Despite these headwinds, VTEX highlighted its continued robust sales momentum in acquiring new enterprise customers globally.
The company’s GMV saw a marginal year-over-year (YoY) increase of 0.2% in USD terms for the fourth quarter of 2024, reaching $5.4 billion. However, when adjusted for FX neutrality, the growth was more robust at 10.9%. Total (EPA:TTEF) revenue for the quarter inched up 1.3% YoY to $61.5 million, while on an FX neutral basis, it rose 12.3%. Subscription revenue, which constitutes the bulk of VTEX’s income, grew 2.1% YoY to $59.5 million, with non-GAAP subscription gross profit also improving slightly.
For the full year, VTEX reported a GMV of $18.2 billion, a 10.4% increase in USD and 16.2% on an FX neutral basis. Total revenues for the year climbed 12.5% YoY to $226.7 million, or 18.1% on an FX neutral basis. Subscription revenue for the year reflected a 14.4% rise in USD, highlighting the company’s strong recurring revenue model.
Despite these gains, the market’s reaction was colored by the company’s cautious outlook. VTEX expects FX neutral YoY subscription revenue growth of 13% to 15% for the first quarter of 2025 and 14% to 17% for the full year 2025, with the anticipation of more muted same-store sales in the short term, particularly in Brazil.
Keybanc analyst Maddie Schrage noted, "VTEX reported 4Q results and 2025 guidance below expectations due to weaker SSS amid a softer consumer spending environment and notable FX headwinds." Schrage also mentioned the strategic partnership with Accenture (NYSE:ACN) through Logic, which aims to empower U.S. enterprises to modernize eCommerce capabilities.
Itaú BBA’s Thiago Kapulskis commented on the softer 2025 guidance and the impact of the Brazilian market, maintaining an outperform rating but with a revised year-end 2025 target price of USD 8 per share.
VTEX’s transition to U.S. GAAP reporting from the fiscal year commencing on January 1, 2025, is part of its efforts to enhance financial transparency and comparability with industry peers. The company will seek shareholder approval for this transition at the annual shareholders meeting on April 25, 2025.
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