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- **Record Profitability**: Non-GAAP net income up 41% YoY to $10.6 million, with operating margin expanding to 16%.
- **AI-Driven Efficiency**: 80%+ customer support automation cuts costs by 10% of revenue, enabling 80%+ subscription gross margin.
- **Global B2B Expansion**: 50% of U.S./EMEA deals are B2B, with multi-billion-dollar enterprise migration underway.
- **Cash Strength**: $200M cash on hand and $7.5M free cash flow, supporting AI innovation and share buybacks.
- **Market Resilience**: U.S./EMEA growth twice Latin America’s rate, offsetting Brazil’s cautious macro environment.

**【CEO Summary Section】**
- **Revenue Growth and Margin Expansion**: Q3 2025 non-GAAP net income reached $10.6 million, a 41% year-over-year increase. Non-GAAP operating margin expanded to 16%, up 230 basis points YoY, driven by AI-powered support automation reducing customer service costs by up to 10% of revenue.
- **AI-Driven Transformation**: Subscription gross margin exceeded 80% for the first time, with AI automating 80% of customer support interactions. VTEX is transitioning to an AI-native platform, integrating AI agents for workflow automation and data monetization (e.g., retail media campaigns with Globo).
- **Global Expansion and B2B Growth**: 50% of new U.S. and EMEA deals are B2B, including a multi-billion-dollar U.S. enterprise migration. Brazil wins include H&M, Itaú, and PicPay, while Latin America maintains stable win rates despite cautious macro conditions.

**【CFO Financial Commentary】**
- **Topline Performance**: GMV reached $5.0 billion (13% YoY), with subscription revenue of $58.4 million (8% YoY). Brazil performed in line with expectations, while Argentina underperformed due to credit constraints.
- **Profitability and Cash Flow**: Total gross margin expanded 270 basis points YoY to 77.5%. Free cash flow was $7.5 million (13% margin), with $200 million in cash and disciplined capital allocation for innovation and share buybacks ($18.8 million in Q3).
- **Expense Management**: Non-GAAP operating expenses grew 7% YoY but declined 1% QoQ, with reinvestment in R&D for AI and B2B solutions.

**【Q&A Key Highlights】**
- **AI and R&D Investment**: R&D spending will increase in 2026 to build an AI-native platform, including AI agents for catalog management, promotions, and logistics. AI is reducing headcount in customer support while maintaining service quality.
- **Market Challenges**: Brazil faces high interest rates slowing consumer spending, while the U.S. and EMEA grow twice as fast as Latin America. Argentina remains a headwind due to credit paralysis.
- **B2B Momentum**: B2B revenue is still single-digit but growing rapidly in the U.S. and EMEA. VTEX’s composable platform allows brands to expand B2B operations (e.g., Electrolux spare parts sales to service networks).
- **Agentic Commerce**: VTEX positions itself as the backbone for AI-driven commerce protocols, routing demand to brand-owned channels and monetizing data through retail media.


VTEX (VTEX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

VTEX

VTEX fundamentals

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