Brazil's VTEX Q2 revenue up on global expansion, slightly misses estimates
Brazil's VTEX Q2 revenue up on global expansion, slightly misses estimates
Overview
Brazil commerce platform's Q2 revenue grew 9.5% yr/yr, slightly missing analyst expectations
Non-GAAP income from operations and free cash flow both rose sharply yr/yr
Company repurchased 6.2 mln shares for $23.2 mln during Q2
Outlook
VTEX targets Q3 subscription revenue growth at approximately flat FX-neutral YoY rate
Company sees full-year 2026 subscription revenue up low-single digit percentage FX-neutral YoY
VTEX expects non-GAAP income from operations margin in the low-twenties percentage for Q3 and full year
Result Drivers
GROWTH DRIVERS - Co said Global Expansion, B2B, Ads, and AI segments grew 20% FX-neutral, helping offset sluggish overall revenue growth
ENTERPRISE SHIFT - Co said customer mix is shifting toward larger enterprise accounts, which influenced near-term growth
WEAK BRAZIL CONSUMPTION - Co cited weaker consumption trends in Brazil as a factor impacting results
Company press release: ID:nBw3xdhRda
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | $64.40 mln | $64.83 mln (5 Analysts) |
Q2 Free Cash Flow |
| $12.70 mln |
|
Q2 Adjusted Income from Operations |
| $13.80 mln |
|
Q2 GMV |
| $5.70 bln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for VTEX is $5.00, about 13.6% above its August 5 closing price of $4.40
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Aug 5 - Shopify Q2 revenue rises 34% on broad GMV growth
Aug 5 - MercadoLibre profit margins narrow even as Q2 revenue surges past $10 bln for first time
Aug 6 - Commerce.com Q2 revenue misses estimates
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Vtex
See all newsVtex Reports Results For The Quarter Ended June 30: Earnings Summary
Brazil's VTEX Q2 revenue up on global expansion, slightly misses estimates
Vtex Expected To Post Earnings Of 5 Cents A Share: Earnings Preview
Brazil's VTEX Q1 revenue slightly misses estimates
VTEX slightly beats Q4 revenue expectations