Stock Track | VTEX Reports Solid Q3 2024 Results, Raises Full-Year Guidance

Stock Track11-06

VTEX, a leading composable and complete commerce platform, reported strong financial results for the third quarter of 2024, driving a 7.11% after-hours plunge in its stock price on November 5, 2024.

The company's total revenue grew 10.6% year-over-year to $56 million, fueled by a 13.4% increase in subscription revenue to $53.9 million. While revenue slightly missed analyst estimates of $57.3 million, VTEX's earnings per share of $0.02 surpassed expectations and marked a significant improvement from a loss of $0.01 in the same quarter last year.

VTEX's strong financial performance was underpinned by robust customer growth and platform adoption. The company onboarded new customers across various regions, including Beko in Austria, Fast Shop in Brazil, and US Electrical Services in the US. Additionally, existing customers like Colgate, Hearst, and Samsung expanded their operations with VTEX, further driving growth.

The company's gross profit increased by 17.2% year-over-year to $41.7 million, reflecting improved operational efficiency and cost management. Furthermore, VTEX's non-GAAP operating income surged to $7.7 million from $1.7 million in Q3 2023, demonstrating its commitment to profitable growth.

Encouraged by its strong sales momentum and operational leverage, VTEX raised its full-year 2024 revenue growth guidance to 18.5%-19.5% on an FX neutral basis, implying a range of $230 million to $232 million. The company also expects non-GAAP operating income and free cash flow margins to reach the low teens.

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