Business Wire | Nov 17, 2021 07:30AM EST

VTEX Reports Third Quarter 2021 Financial Results

Nov. 17, 2021

NEW YORK--(BUSINESS WIRE)--Nov. 17, 2021--VTEX (NYSE: VTEX), the enterprise digital commerce platform for premier brands and retailers, the leader in accelerating the digital commerce transformation in Latin America and now expanding globally, today announced results for the third quarter of 2021 ended September 30, 2021. VTEX results have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting."

Geraldo Thomaz Jr., founder and co-CEO of VTEX, commented, "We are pleased to announce that VTEX delivered another quarter of robust growth and consistent execution. We are excited to see VTEX's recent product launches and new partnerships, as well as strong sales momentum and encouraging backlog of new online stores undergoing implementation to join our platform." Mariano Gomide de Faria, founder and co-CEO of VTEX, added, "Consumer behavior shift towards online purchasing had staying power. This is just the tip of the iceberg, ecommerce in Latin America is still an untapped opportunity. We are living in a new era, a revolution, and we are here to accelerate it."

Third Quarter 2021 Operational and Financial Highlights

* GMV reached US$2.3 billion in the third quarter of 2021, representing a year-over-year increase of 7.2% in USD and 4.2% on an FX neutral basis. * Total revenues increased to US$31.9 million in the third quarter of 2021, from US$27.7 million in the third quarter of 2020, representing a year-over-year increase of 15.2% in USD and 12.3% on an FX neutral basis. * Subscription revenue represented 93.0% of total revenues and increased to US$29.6 million in the third quarter of 2021, from US$26.3 million in the third quarter of 2020, a year-over-year increase of 12.6% in USD and 9.7% on an FX neutral basis. * Non-GAAP subscription gross profit was US$20.2 million in the third quarter of 2021, compared to US$20.4 million in the second quarter of 2021. Non-GAAP subscription gross margin was 68.2% in the third quarter of 2021, compared to 68.8% in the second quarter of 2021. Non-GAAP subscription gross profit margin quarter-over-quarter compression reflects incremental investments in cybersecurity, privacy and compliance mostly related to our global expansion and becoming a public company. * Non-GAAP loss from operations was US$13.3 million during the third quarter of 2021, compared to Non-GAAP income from operations of US$6.3 million in the third quarter of 2020, primarily due to incremental personnel-related investments in sales and marketing, and research and development, as we have been investing to capture market share and benefit from the further penetration of ecommerce. * Non-GAAP negative free cash flow was US$10.4 million during the third quarter of 2021, compared to a positive US$11.6 million free cash flow in the third quarter of 2020, mainly driven by the increase in Non-GAAP loss from operations. * Our total headcount increased to 1,624 as of September 30, 2021, representing an increase of 91.7% year-over-year.

Third Quarter Product Innovation Highlights:

We innovate aligned with our guiding principles. VTEX key innovations deployed this quarter were:

* Zero friction onboarding: VTEX launched self-service onboarding for the seller's portal, reducing our customers' time to revenue. * Zero friction collaboration: We built the new seller's portal that enables partners of our customers, franchisers or SMB's to more easily sell into their marketplaces, making collaboration between the online store, the franchiser or the brick-and-mortar stores seamless. We certified our integration with Mercado Libre in Brazil, a significant milestone in our journey to become the center of a vast network that natively connects every part of the global digital commerce ecosystem. We enhanced our OMS' order progress flow system, reducing refresh time to seconds without external event dependencies, such as manual authorization, cancellation windows and anti-fraud. This fits grocery, food & beverage and pet shop companies' needs, among others, as it enables them to have faster communication between channels, avoid out of stock scenarios and deliver faster to their consumer's doorstep. * Single control panel for every order: We enhanced our in-store solution with an endless aisle approach that enables brick-and-mortar stores to sell products from other brick-and-mortar stores as well as from the ecommerce store. We've improved messaging between the different sales channels, tuned search filters and added social selling. We launched a new dashboard that tracks additional key performance indicators of our customers, such as their cart-to-checkout and payment conversion rates. * The development platform of choice for digital commerce: AWS partnership will enable us in the long-term to expand our presence in the global digital commerce segment by using AWS technologies and leveraging AWS' sales channels to build innovative, customer-centric capabilities for consumer packaged goods companies. The new global integration with Facebook aims to ensure better conversion rates in ecommerce by leveraging online campaigns with data intelligence and improving sales conversion natively on the platform. Subsequent to the third quarter 2021, we launched a partnership with Stripe to help brands and retailers to offer the most popular payment methods to their consumers regardless of their operating areas. The strategic partnership with McFadyen in Brazil and in the US will allow us to leverage not only their technical and architectural expertise, but also the depth and breadth of business planning their strategy practice can offer.

Business Outlook

Online commerce penetration in Latin America continues to increase, demonstrating that the 2020 acceleration in online consumption appears sustainable, even as brick-and-mortar retail stores gradually reopen throughout the region and we lap our toughest comps quarter. Consumer behavior shift towards online purchasing has demonstrated staying power.

Our Q3 2021 FX Neutral year-over-year revenue growth of 12.3% already accelerated to over 20% by the end of the quarter, and it came on top of 140% year-over-year growth in Q3 2020. We expect our revenue growth to continue accelerating during Q4 of 2021, as in Q4 2020 brick-and-mortar stores were already starting to reopen.

Seasonal trends in 2021 are expected to remain similar as in previous years. We expect to continue seeing strong new stores' growth, as our encouraging backlog undergoes implementation. While supply chain challenges may impact commerce during Q4 2021, we are focused on supporting our customers on a successful Black Friday, Cyber Monday and the holiday shopping season.

In view of the aforementioned trends and VTEX's performance during the nine months ending September 30, 2021, we currently expect to deliver growth at healthy levels. We are targeting revenue in the US$35.3 million to US$37.3 million range for the fourth quarter of 2021, implying a 27% YoY FXN growth rate in the middle of the range. Although Latam currencies devalued 6.7% during Q3 2021, we are confirming our target of US$124 million to US$126 million range for the fiscal year ended December 31, 2021, assuming current period FX rates.

Importantly, we will continue to invest to grow our business as we work towards enhancing our leadership position in Latin America and explore new opportunities outside the region.

The business outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond VTEX's control. See the cautionary note regarding ''Forward-Looking Statements'' below. Fluctuations in VTEX's operating results may be particularly pronounced in the current economic environment. There can not be assurance that VTEX will achieve these results.

The following table summarizes certain key financial and operating metrics for the three and nine months ended September 30, 2021 and 2020.

Three months Nine months ended ended September 30, September 30,

(in millions of US$, except as otherwise 2021 2020 2021 2020indicated)

GMV 2,284.8 2,131.7 6,760.2 4,954.9

GMV growth YoY FXN (1) 4.2% 190.2% 37.0% 137.4%

Revenue 31.9 27.7 88.7 69.6

Revenue growth YoY FXN (1) 12.3% 139.5% 29.9% 102.8%

Non-GAAP Subscription gross profit (2) 20.2 19.2 56.7 47.8

Non-GAAP Subscription gross profit margin (2) 68.2% 73.1% 67.5% 72.7%

Non-GAAP income (loss) from operations (3) (13.3) 6.3 (32.2) 10.5

Total number of employees 1,624 847 1,624 847

(1)

Calculated by using the average monthly exchange rates for the applicable months during 2020, adjusted by inflation in countries with hyperinflation, and applying them to the corresponding months in 2021, as applicable, so as to calculate what our results would have been had exchange rates remained stable from one year to the next.

(2)

Corresponds to our subscription revenues minus our subscription costs.

(3)

Reconciliation of non-GAAP income (loss) from operations to income (loss) from operations can be found in tables below.

Conference Call and Webcast

The conference call may be accessed by dialing +1-844-200-6205 (Conference ID - 614545) and requesting inclusion in the call for VTEX.

The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at https://www.investors.vtex.com/.

An archive of the webcast will be available for one week following the conclusion of the conference call.

Definition of Selected Operational Metrics

"GMV" means the total value of customer orders processed through our platform, including value-added taxes and shipping. Our GMV does not include the value of orders processed by our SMB customers or B2B transactions.

"FX Neutral" or "FXN" means a way of using the average monthly exchange rates for each month during the previous year, adjusted by inflation in countries with hyper-inflation, and applying them to the corresponding months of the current year, so as to calculate what results would have been had exchange rates remained stable from one year to the next.

"Customers" means companies ranging from small and medium-sized businesses to larger enterprises that pay to use VTEX's platform.

"Stores" or "Active Stores" means the number of unique domains generating gross merchandise value. Each customer might have multiple stores.

Special Note Regarding Non-GAAP financial metrics

For convenience of investors, this document presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP Free Cash Flow and FX Neutral measures.

We understand that Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP Free Cash Flow and FX Neutral measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations presented in accordance with IFRS. Additionally, our calculations of Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Free Cash Flow and FX Neutral measures may be different from the calculation used by other companies, including our competitors, and therefore, our measures may not be comparable to those of other companies.

Reconciliation of Non-GAAP measures

The following table presents a reconciliation of our Non-GAAP subscription gross profit to subscription revenue for the following periods:

Calculated by using the average monthly exchange rates for the applicable months during 2020, adjusted by inflation in countries with(1) hyperinflation, and applying them to the corresponding months in 2021, as applicable, so as to calculate what our results would have been had exchange rates remained stable from one year to the next.

(2) Corresponds to our subscription revenues minus our subscription costs.

(3) Reconciliation of non-GAAP income (loss) from operations to income (loss) from operations can be found in tables below.

Conference Call and Webcast

The conference call may be accessed by dialing +1-844-200-6205 (Conference ID - 614545) and requesting inclusion in the call for VTEX.

The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at https://www.investors.vtex.com/.

An archive of the webcast will be available for one week following the conclusion of the conference call.

Definition of Selected Operational Metrics

"GMV" means the total value of customer orders processed through our platform, including value-added taxes and shipping. Our GMV does not include the value of orders processed by our SMB customers or B2B transactions.

"FX Neutral" or "FXN" means a way of using the average monthly exchange rates for each month during the previous year, adjusted by inflation in countries with hyper-inflation, and applying them to the corresponding months of the current year, so as to calculate what results would have been had exchange rates remained stable from one year to the next.

"Customers" means companies ranging from small and medium-sized businesses to larger enterprises that pay to use VTEX's platform.

"Stores" or "Active Stores" means the number of unique domains generating gross merchandise value. Each customer might have multiple stores.

Special Note Regarding Non-GAAP financial metrics

For convenience of investors, this document presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP Free Cash Flow and FX Neutral measures.

We understand that Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Non-GAAP Free Cash Flow and FX Neutral measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations presented in accordance with IFRS. Additionally, our calculations of Non-GAAP subscription gross profit, Non-GAAP Income (Loss) from Operations, Free Cash Flow and FX Neutral measures may be different from the calculation used by other companies, including our competitors, and therefore, our measures may not be comparable to those of other companies.

Reconciliation of Non-GAAP measures

The following table presents a reconciliation of our Non-GAAP subscription gross profit to subscription revenue for the following periods:

Three months Nine months ended ended September 30, September 30,

(in millions of US$, except as otherwise 2021 2020 2021 2020indicated)

Subscription revenue 29.6 26.3 83.9 65.7

Subscription cost (9.7) (7.1) (27.9) (18.0)

Subscription gross profit 19.9 19.2 56.0 47.7

Share-based compensation 0.3 0.0 0.6 0.1

Non-GAAP subscription gross profit 20.2 19.2 56.7 47.8

Non-GAAP subscription gross margin 68.2% 73.1% 67.5% 72.7%

The following table presents a reconciliation of our Non-GAAP expenses to expenses for the following periods:

Three months Nine monthsSales & Marketing ended ended September 30, September 30,

(in millions of US$, except as otherwise 2021 2020 2021 2020indicated)

Sales & Marketing expense (19.3) (5.3) (46.1) (16.4)

Share-based compensation expense 2.6 0.1 4.9 0.2

Amortization of intangible related to 0.3 0.1 0.8 0.4acquisitions

Offering expenses ("IPO") (1) 0.2 - 0.2 -

Non-GAAP Sales & Marketing expense (16.2) (5.1) (40.1) (15.8)

Research & Development

Three months ended September 30,

Nine months ended September 30,

(in millions of US$, except as otherwise indicated)

2021

2020

2021

2020

Research & Development expense

(14.2)

(4.5)

(33.3)

(12.2)

Share-based compensation expense

3.3

0.1

6.1

0.4

Amortization of intangible related to acquisitions

0.2

0.0

0.5

0.2

Offering expenses ("IPO") (1)

0.1

-

0.1

-

Non-GAAP Research & Development expense

(10.6)

(4.4)

(26.6)

(11.6)

Three months Nine monthsResearch & Development ended ended September 30, September 30,

(in millions of US$, except as otherwise 2021 2020 2021 2020indicated)

Research & Development expense (14.2) (4.5) (33.3) (12.2)

Share-based compensation expense 3.3 0.1 6.1 0.4

Amortization of intangible related to 0.2 0.0 0.5 0.2acquisitions

Offering expenses ("IPO") (1) 0.1 - 0.1 -

Non-GAAP Research & Development expense (10.6) (4.4) (26.6) (11.6)

General & Administrative

Three months ended September 30,

Nine months ended September 30,

(in millions of US$, except as otherwise indicated)

2021

2020

2021

2020

General & Administrative expense

(9.9)

(3.3)

(25.0)

(8.8)

Share-based compensation expense

3.0

0.5

6.1

0.7

Offering expenses ("IPO")

0.9

-

0.9

-

Non-GAAP General & Administrative expense

(6.0)

(2.9)

(18.0)

(8.2)

Three months Nine monthsGeneral & Administrative ended ended September 30, September 30,

(in millions of US$, except as otherwise 2021 2020 2021 2020indicated)

General & Administrative expense (9.9) (3.3) (25.0) (8.8)

Share-based compensation expense 3.0 0.5 6.1 0.7

Offering expenses ("IPO") 0.9 - 0.9 -

Non-GAAP General & Administrative expense (6.0) (2.9) (18.0) (8.2)

(1)

Offering expenses ("IPO") for Sales and Marketing and Research and Development are travel-related expenses exclusively for the Event Day.

The following table presents a reconciliation of our Non-GAAP income (loss) from operations to income (loss) from operations for the following periods:

(1) Offering expenses ("IPO") for Sales and Marketing and Research and Development are travel-related expenses exclusively for the Event Day.

The following table presents a reconciliation of our Non-GAAP income (loss) from operations to income (loss) from operations for the following periods:

Three months Nine months ended ended September 30, September 30,

(in millions of US$, except as otherwise 2021 2020 2021 2020indicated)

Income (loss) from operations (24.4) 5.5 (52.8) 8.6

Share-based compensation expense 9.3 0.6 18.0 1.3

Amortization of intangibles related to 0.5 0.1 1.3 0.6acquisitions

Offering expenses ("IPO") 1.3 - 1.3 -

Non-GAAP income (loss) from operations (13.3) 6.3 (32.2) 10.5

The following table presents a reconciliation of our Non-GAAP free cash flow to net cash provided (used) by operating activities for the following periods:

Three months Nine months ended ended September 30, September 30,

(in millions of US$, except as otherwise 2021 2020 2021 2020indicated)

Net cash provided (used) by operating (10.2) 12.0 (31.8) 8.3activities

Acquisitions of property and equipment (0.2) (0.4) (1.2) (1.2)

Non-GAAP free cash flow (10.4) 11.6 (33.1) 7.1

The following table sets forth the FX neutral measures related to our reported results of the operations for the three months period ended September 30, 2021:

Three months ended September 30, As Reported FXN As FXN Reported

(in millions of US$, Percentage Percentageexcept as otherwise 2021 2020 change 2021 2020 changeindicated)

Subscription revenue 29.6 26.3 12.6% 28.9 26.3 9.7%

Services revenue 2.2 1.3 67.4% 2.2 1.3 62.2%

Total revenue 31.9 27.7 15.2% 31.0 27.7 12.3%

Subscription cost (9.7) (7.1) 37.5% (9.6) (7.1) 36.0%

Services cost (3.1) (1.7) 80.1% (3.0) (1.7) 74.2%

Total cost (12.8) (8.8) 45.8% (12.6) (8.8) 43.4%

Gross profit 19.1 18.9 1.0% 18.5 18.9 (2.2)%

Operating expenses (43.4) (13.4) 224.9% (41.6) (13.4) 211.3%

Income (loss) from (24.4) 5.5 n/a (23.2) 5.5operation n/a

This announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" nor a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited.

About VTEX

VTEX provides a software-as-a-service digital commerce platform for enterprise brands and retailers. Our platform enables our 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. Founded in Brazil, we have been a leader in accelerating the digital commerce transformation in Latin America and are expanding globally. Our platform is engineered to enterprise-level standards and functionality. As of December 31, 2020, we were trusted by more than 2,000 customers with over 2,500 active online stores across 32 countries to connect with their consumers in a meaningful way.

Forward-looking Statements

This announcement contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange of 1934, as amended. Statements contained herein that are not clearly historical in nature, including statements about the VTEX strategies and business plans, are forward-looking, and the words "anticipate," "believe," "continues," "expect," "estimate," "intend," "strategy," "project," "target" and similar expressions and future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may," or similar expressions are generally intended to identify forward-looking statements.

VTEX may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission, or the SEC, in press releases and other written materials and in oral statements made by its officers and directors. These forward-looking statements speak only as of the date they are made and are based on the VTEX's current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond VTEX's control. A number of factors and risks could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in VTEX filings with the SEC.

As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this announcement. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented as there is no guarantee that expected events, trends or results will actually occur. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.

This announcement may also contain estimates and other information concerning our industry that are based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.

VTEX

Condensed Consolidated Statements of Operations

(In thousands of U.S. dollars, unaudited)

Three months ended Nine months ended

September September September September 30, 30, 30, 30, 2021 2020 2021 2020



Subscription revenue 29,627 26,315 83,937 65,694

Services revenue 2,237 1,337 4,720 3,875

Total revenue 31,864 27,652 88,657 69,569



Subscription cost (9,735) (7,079) (27,911) (17,960)

Services cost (3,056) (1,696) (7,921) (5,033)

Total cost (12,791) (8,775) (35,832) (22,993)



Gross profit 19,073 18,877 52,825 46,576



Operating expenses

General and administrative (9,947) (3,336) (24,976) (8,841)

Sales and marketing (19,330) (5,250) (46,062) (16,356)

Research and development (14,179) (4,512) (33,271) (12,212)

Other income (losses) 14 (275) (1,303) (585)

Income (loss) from operations (24,369) 5,504 (52,787) 8,582



Financial income 2,575 1,298 5,119 2,918

Financial expense (3,141) (1,879) (8,394) (4,727)

Financial result, net (566) (581) (3,275) (1,809)



Equity results 162 36 397 27



Income (loss) before income (24,773) 4,959 (55,665) 6,800tax



Income tax

Current (1,107) (2,052) (1,611) (3,808)

Deferred 3,921 71 7,387 450



Net income (loss) for the (21,959) 2,978 (49,889) 3,442period



Attributable to controlling (21,959) 2,939 (49,886) 3,356shareholders

- 39 (3) 86Non-controlling interest



Earnings (loss) per share

Basic earnings (loss) per (0.119) 0,017 (0.280) 0,020share

Diluted earnings (loss) per (0.119) 0,016 (0.280) 0,019share

VTEX

Comprehensive Income (Loss)

(In thousands of U.S. dollars, unaudited)

Three months ended

Nine months ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Net income (loss) for the period

(21,959)

2,978

(49,889)

3,442

Items that are or may be reclassified subsequently to profit or loss:

Foreign cumulative conversion adjustment

21

408

325

(987)

Total comprehensive income (loss) for the period

(21,938)

3,386

(49,564)

2,455

VTEX

Comprehensive Income (Loss)

(In thousands of U.S. dollars, unaudited)

Three months ended Nine months ended

September September September September 30, 30, 30, 30, 2021 2020 2021 2020



Net income (loss) for the period (21,959) 2,978 (49,889) 3,442



Items that are or may bereclassified subsequently to profit or loss:

Foreign cumulative conversion 21 408 325 (987)adjustment



Total comprehensive income (21,938) 3,386 (49,564) 2,455(loss) for the period

VTEX

Condensed Consolidated Balance Sheet

(In thousands of U.S. dollars, unaudited)

September 30, 2021

December 31, 2020

ASSETS

Current assets

Cash and cash equivalents

321,629

58,557

Restricted cash

1,190

1,429

Marketable securities

-

16,969

Trade receivables

34,573

24,491

Recoverable taxes

5,577

4,071

Deferred commissions

150

438

Prepaid expenses

5,981

2,379

Derivative financial instruments

25

174

Other

331

223

Total current assets

369,456

108,731

Non-current assets

Deferred tax assets

9,479

2,174

Prepaid expenses

147

3,134

Recoverable taxes

538

674

Deferred Commission

1,130

389

Other

251

53

Right-of-use assets

5,031

5,076

Property and equipment, net

4,906

4,551

Intangible assets, net

34,685

15,093

Investment in joint venture

442

136

Total non-current assets

56,609

31,280

Total assets

426,065

140,011

VTEX

Condensed Consolidated Balance Sheet

(In thousands of U.S. dollars, unaudited)

September 30, 2021 December 31, 2020

ASSETS

Current assets

Cash and cash equivalents 321,629 58,557

Restricted cash 1,190 1,429

Marketable securities - 16,969

Trade receivables 34,573 24,491

Recoverable taxes 5,577 4,071

Deferred commissions 150 438

Prepaid expenses 5,981 2,379

Derivative financial instruments 25 174

Other 331 223



Total current assets 369,456 108,731



Non-current assets

Deferred tax assets 9,479 2,174

Prepaid expenses 147 3,134

Recoverable taxes 538 674

Deferred Commission 1,130 389

Other 251 53

Right-of-use assets 5,031 5,076

Property and equipment, net 4,906 4,551

Intangible assets, net 34,685 15,093

Investment in joint venture 442 136



Total non-current assets 56,609 31,280



Total assets 426,065 140,011

LIABILITIES

September 30, 2021

December 31, 2020

Current liabilities

Accounts payable and accrued expenses

37,407

20,709

Loans and financing

1,992

1,585

Taxes payables

3,592

6,790

Lease liabilities

1,023

850

Deferred revenue

20,298

14,170

Accounts payable from acquisition of subsidiaries

7,270

2,794

Others

-

159

Total current liabilities

71,582

47,057

Non-current liabilities

Loans and financing

1,914

4,774

Lease liabilities

4,802

5,303

Accounts payable from acquisition of subsidiaries

254

1,206

Deferred revenue

9,885

5,005

Deferred tax liabilities

2,141

731

Other

392

187

Total non-current liabilities

19,388

17,206

EQUITY

Issued Capital

19

17

Capital reserve

387,977

78,945

Other comprehensive income

429

104

Accumulated losses

(53,330)

(3,444)

Equity attributable to VTEX's shareholders

335,095

75,622

Non-controlling interests

-

126

Total shareholders' equity

335,095

75,748

Total liabilities and equity

426,065

140,011

LIABILITIES September 30, December 31, 2021 2020

Current liabilities

Accounts payable and accrued expenses 37,407 20,709

Loans and financing 1,992 1,585

Taxes payables 3,592 6,790

Lease liabilities 1,023 850

Deferred revenue 20,298 14,170

Accounts payable from acquisition of 7,270 2,794subsidiaries

Others - 159



Total current liabilities 71,582 47,057



Non-current liabilities

Loans and financing 1,914 4,774

Lease liabilities 4,802 5,303

Accounts payable from acquisition of 254 1,206subsidiaries

Deferred revenue 9,885 5,005

Deferred tax liabilities 2,141 731

Other 392 187



Total non-current liabilities 19,388 17,206



EQUITY

Issued Capital 19 17

Capital reserve 387,977 78,945

Other comprehensive income 429 104

Accumulated losses (53,330) (3,444)



Equity attributable to VTEX's shareholders 335,095 75,622

Non-controlling interests - 126



Total shareholders' equity 335,095 75,748



Total liabilities and equity 426,065 140,011

VTEX

Condensed Consolidated Statements of Cash Flows

(In thousands of U.S. dollars, unaudited)

Nine months ended

September 30, 2021

September 30, 2020

Net income (loss) of the period

(49,889)

3,442

Adjustments on income (loss) for the period

Depreciation and amortization

2,840

1,803

Deferred income tax

(7,385)

(450)

Loss on disposal of property, equipment, and intangible assets

50

95

Allowance for doubtful accounts

412

662

Share-based compensation

6,845

1,317

Provision for payroll taxes (share-based compensation)

9,991

-

Adjustment of hyperinflation

1,481

335

Profit on investments in joint venture

(397)

(27)

Fair value gain

(366)

(925)

Other gains (losses), net

(433)

(2,618)

Working capital adjustments

Trade receivables

(9,876)

(7,100)

Recoverable taxes

(1,370)

(886)

Prepaid expenses

(615)

(2,799)

Other assets

(161)

(60)

Accounts payable and accrued expenses

10,209

7,127

Taxes payable

1,190

4,987

Deferred revenue

9,697

6,393

Other liabilities

458

(1,470)

Cash provided (used) in operating activities

(27,319)

9,826

Income tax paid

(4,511)

(1,572)

Net cash provided (used) in operating activities

(31,830)

8,254

Cash flows from investing activities

Redemption of marketable securities

16,857

-

Interest received

981

1,013

Payment of business, net of cash acquired

(5,182)

(3,176)

Acquisitions of intangible

(364)

-

Acquisitions of property and equipment

(1,235)

(1,175)

Net cash provided (used) in investing activities

11,057

(3,338)

Cash flows from financing activities

Changes in restricted cash

239

780

Proceeds from the exercise of stock options

3,220

154

Net-settlement of share-based payment

(1,781)

-

Capital increase

1,000

126,976

Capital increase - proceeds from initial public offering, net of transaction costs

296,318

-

Buyback of shares

(2,423)

(103,414)

Payment of loans and financing

(10,349)

(1,932)

Interest paid

(84)

(150)

Principal elements of lease payments

(671)

(199)

Lease interest paid

(513)

(575)

Net cash provided by financing activities

284,956

21,640

Net increase in cash and cash equivalents

264,183

26,556

Cash and cash equivalents, beginning of the period

58,557

29,762

Effect of exchange rate changes

(1,111)

3,056

Cash and cash equivalents, end of the period

321,629

59,374

Supplemental cash flow information:

Lease liabilities arising from obtaining right-of-use assets

155

34

Issue of ordinary shares as consideration for a business combination

1,469

-

Unpaid amount related to acquisition of non-controlling interest

27

-

Unpaid amount related to business combinations

8,471

-

View source version on businesswire.com: https://www.businesswire.com/news/home/20211117005413/en/

CONTACT: Julia Vater Fernndez Investor Relations Director investors@vtex.com