Citing strong same-store sales from existing customers and new customer additions, ecommerce platform provider VTEX posted total revenues of $45.5 million during the fourth quarter, a 22.5% increase from the same period a year earlier.
Subscription revenue represented $42.7 million or 93.9% of total revenues for the quarter, up from $34.5 million for the same period a year earlier. Gross merchandise value (GMV) reached $3.9 billion during the quarter, up 34.4% from a year earlier.
For calendar year 2022, VTEX posted total revenues of $157.6 million, up from $125.8 million in 2021, a 25.3% increase. Subscription revenue totaled $148.5 million or 94.2% of total revenues, up from $118.5 million in 2021, a 25.3% increase. GMV totaled $12.7 billion in 2022, a 31.3% year-over-year increase.
“In 2022, VTEX outperformed industry growth with strong same-store sales from our existing customers and new customers additions,” VTEX co-chief executive and founder Mariano says in a statement. “In 2023, despite ongoing macro uncertainties, we aim to continue outperforming the market while improving margins.”
Among the operational highlights 2022, VTEX grew its customer base to 2,600, up from a 2,400 in 2021. The number of customers with annual revenue above $250,000 increase to 94, up from 76 a year earlier. In addition, the number of stores operating on the VTEX platform increased to more than 3,400 in 38 countries in 2022. The company’s top 100 customers have an average of 5.9 stores per customer, up from 4.8 in 2021. In addition, active stores with more than $25,000 in annual recurring revenue (ARR) represented 85% of VTEX’s revenue reached an average ARR per store of $138,2000.
Revenue from existing stores totaled $113.8 million in 2022. The net revenue retention rate NRR for existing stores on a FX neutral basis was 105.3% in 2022, and was “impacted by macro conditions and continuous physical stores reopening, on top of a NRR of 105.1% in the fiscal year 2021, also impacted by physical stores reopening,” according to VTEX.
FX Neutral is neutralization of the impact of foreign currency exchanges on the calculation of a company’s net sales growth for a specific year.
Same-store-sales increased 17.2% in 2022, compared to 11.8% in 2021, VTEX adds.
Revenues from new stores totaled $21.3 million in 2022 up from $19.4 million in 2021 and included $4.1 million from VTEX’s acquisition of Workarea, a cloud-commerce platform, for an undisclosed sum in February 2021. The acquisition expanded VTEX’s customer base in the United States and Canada and added $1 billion in annual GMV with new customers such as Reformation, Sleep Number and The Bouqs Co.
Brazil continues to be VTEX’s largest market, representing 55% of total revues in 2022, compared 53% a year earlier. While Latin America, excluding Brazil, remains VTEX’s second largest market, it represented 35% of total revenues, compared 38% in 2021. The remaining countries VTEX does business in globally represent 10% of the company’s total revenues, up from 9% in 2021.
“2022 marked a significant milestone in our global expansion journey with advancements in the US and Europe and successful customer deployments in India and South Africa among others,” Gomide de Faria says. “Despite the increase in sales cycle time, the progress we made this year gives us greater confidence in being well positioned to continue capturing market share.”
Looking ahead for 2023, VTEX is currently targeting first quarter revenue of $41 million to $41.5 million, implying a year-over-year (YoY) growth of 19% in US dollars, and 19% on an FX neutral basis in the middle of the range.
For the full year 2023, VTEX expects FX neutral YoY revenue growth of 15% to 19%, implying a range of $183 million to $189 million, based on February average FX rates.