VTEX (VTEX) AI Stock Analysis

• Market Cap: $827.93M
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 84.6
• Beta (1Y): 0.67
• Revenue Growth: 4.51%
• EPS Growth: 208.14%
• Country: US
• Employees: 1,368
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 101,296,490
• 10 Day Avg. Volume: 832,230
• 30 Day Avg. Volume: 1,132,862
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 4.47
• Enterprise Value/Gross Profit: 5.92
• Enterprise Value/Ebitda: 60.92
• 1Y Price Target: $6.50
• Price Target Upside: 42.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $5.00 ▲(9.41% Upside)

VTEX's overall stock score is driven by its strong financial performance and resilient earnings call, highlighting global expansion and operational efficiency. However, the high P/E ratio and mixed technical indicators suggest caution. The absence of a dividend yield and challenges in key markets like Argentina and Brazil also weigh on the score.

Positive Factors

Global Expansion

Expanding partnerships in the U.S. and Europe, where growth is twice as fast, strengthens VTEX's market position and supports long-term growth.

Operational Efficiency

Significant improvements in operational efficiency and margins indicate strong cost management and profitability, enhancing financial stability.

Innovation and Strategic Initiatives

Strategic investments in innovation and AI reinforce VTEX's competitive advantage and position in the market, driving future revenue growth.

Negative Factors

Challenges in Argentina

Continued macroeconomic challenges in Argentina impact VTEX's revenue growth and market stability, posing risks to regional performance.

Brazil Market Dynamics

Shifts in customer base and pricing in Brazil limit revenue growth, affecting VTEX's ability to capitalize on one of its key markets.

Subscription Revenue Below Guidance

Underperformance in subscription revenue against FX-neutral guidance suggests challenges in meeting growth expectations, impacting financial forecasts.

VTEX Business Overview & Revenue Model

Company Description

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 was founded in 2000 and is headquartered in London, the United Kingdom.

How the Company Makes Money

VTEX generates revenue through a combination of subscription fees and transaction fees. The company operates a SaaS (Software as a Service) model, where merchants pay a recurring fee for access to its platform, which varies based on usage and service tiers. Additionally, VTEX earns revenue from transaction fees applied to sales processed through its platform. Significant partnerships with major brands and retailers enhance its market presence and contribute to revenue growth. The company's focus on providing integrated solutions that cover the entire e-commerce ecosystem also helps attract new customers and retain existing ones, bolstering its earnings.

VTEX Financial Statement Overview

Summary

VTEX's financial performance is commendable, with strong revenue growth, improved profitability, and efficient cash flow management. The balance sheet is stable with low leverage, enhancing financial stability. The company is well-positioned for future growth with its strong operational and financial metrics.

Income Statement

VTEX has shown impressive revenue growth with a TTM growth rate of 98.5%, indicating strong market demand and expansion. The gross profit margin is robust at 74.17%, reflecting efficient cost management. The net profit margin has improved significantly to 6.70%, showcasing enhanced profitability. EBIT and EBITDA margins have also improved, indicating better operational efficiency.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.013, suggesting minimal leverage and financial risk. Return on equity (ROE) has improved to 6.03%, indicating better returns for shareholders. The equity ratio is healthy, reflecting a solid capital structure.

Cash Flow

VTEX has demonstrated strong cash flow performance with a free cash flow growth rate of 12.71%. The operating cash flow to net income ratio is 0.38, indicating good cash generation relative to earnings. The free cash flow to net income ratio is high at 0.96, suggesting efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.47M	226.71M	201.52M	157.62M	125.77M	98.68M
Gross Profit	174.04M	167.29M	140.57M	104.79M	76.18M	63.83M
EBITDA	16.91M	14.40M	-4.03M	-50.41M	-64.42M	7.06M
Net Income	13.36M	12.00M	-13.69M	-52.42M	-60.51M	-825.00K
Balance Sheet
Total Assets	365.57M	366.78M	341.14M	357.67M	414.97M	140.01M
Cash, Cash Equivalents and Short-Term Investments	210.79M	214.81M	209.41M	238.56M	298.20M	75.53M
Total Debt	3.84M	3.31M	4.10M	6.79M	9.27M	12.51M
Total Liabilities	115.31M	110.98M	100.81M	83.00M	87.78M	64.26M
Stockholders Equity	250.22M	255.75M	240.29M	274.66M	327.18M	75.62M
Cash Flow
Free Cash Flow	33.25M	25.19M	3.79M	-29.56M	-54.74M	9.52M
Operating Cash Flow	34.19M	27.26M	4.26M	-29.22M	-52.99M	11.16M
Investing Cash Flow	-3.02M	-20.01M	38.42M	-43.38M	-166.78M	-6.10M
Financing Cash Flow	-33.06M	-14.03M	-38.43M	-19.58M	283.68M	24.96M

VTEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.57
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTEX, the sentiment is Positive. The current price of 4.57 is above the 20-day moving average (MA) of 4.43, above the 50-day MA of 4.44, and below the 200-day MA of 5.50, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 88.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTEX.

VTEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	76 Outperform	$710.35M	86.61	9.45%	―	22.14%	-45.14%
VTEX	71 Outperform	$827.93M	84.62	5.33%	―	4.51%	208.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$688.02M	―	-32.50%	―	14.79%	27.52%
DOMO	51 Neutral	$616.41M	―	48.46%	―	>-0.01%	9.72%
RSKD	51 Neutral	$730.86M	―	-10.16%	―	7.96%	5.67%
BMBL	49 Neutral	$589.74M	―	-75.71%	―	-5.06%	-2318.18%

VTEX Corporate Events

VTEX Reports Strong Q2 2025 Results Amid Global Expansion

On August 7, 2025, VTEX reported its financial results for the second quarter of 2025, showcasing a resilient performance despite challenging market conditions in Brazil and Argentina. The company achieved a subscription revenue of $57.2 million, marking an 11.2% growth on an FX neutral basis, and a non-GAAP income from operations of $8.5 million, reflecting a 14.4% margin. VTEX’s strategic investments in AI and operational efficiency have led to a 10% increase in their guidance for non-GAAP income from operations and free cash flow. The company also highlighted its expanding global presence with new partnerships in the US and Europe, including iconic brands like KitchenAid and Road Runner Sports, reinforcing its position as a trusted global partner in enterprise commerce.

VTEX Reports Modest Revenue Growth in H1 2025

VTEX has released its financial statements for the six months ending June 30, 2025, showing a slight increase in total revenue compared to the previous year. The company reported a total revenue of $112.955 million, up from $109.167 million in the same period of 2024. Despite a decrease in services revenue, subscription revenue grew, contributing to an overall gross profit increase. The financial results indicate a stable financial position with a slight increase in total assets and equity, reflecting VTEX’s ongoing growth and resilience in the competitive e-commerce market.