PART I - FINANCIAL INFORMATION
|
3
|
|
|
Item 1 - Financial Statements
|
3
|
|
|
Condensed consolidated interim Balance Sheets
|
4
|
|
|
Condensed consolidated interim Statements of Profit or Loss
|
6
|
|
|
Condensed consolidated interim Statements of Changes in Shareholder’s Equity
|
7
|
|
|
Condensed consolidated interim Statements of Cash Flows
|
8
|
|
|
Notes to condensed consolidated interim Financial Statements
|
9
|
|
|
Item 2 – Management’s discussion and analysis of financial condition and results of operations
|
28
|
|
|
PART II - OTHER INFORMATION
|
43
|
|
|
Item 1 - Signatures
|
43
|
June 30, 2022
|
December 31, 2021
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
29,667
|
121,006
|
||||||
Restricted cash
|
694
|
1,183
|
||||||
Marketable securities and short-term investments
|
225,113
|
177,191
|
||||||
Trade receivables
|
32,669
|
34,682
|
||||||
Recoverable taxes
|
5,053
|
6,881
|
||||||
Deferred commissions
|
396
|
263
|
||||||
Prepaid expenses
|
4,806
|
7,911
|
||||||
Other current assets
|
-
|
399
|
||||||
Total current assets
|
298,398
|
349,516
|
||||||
Non-current assets
|
||||||||
Trade receivables
|
5,530
|
6,143
|
||||||
Deferred tax assets
|
18,771
|
12,572
|
||||||
Prepaid expenses
|
345
|
343
|
||||||
Recoverable taxes
|
2,223
|
556
|
||||||
Deferred commissions
|
1,705
|
1,246
|
||||||
Other non-current assets
|
902
|
435
|
||||||
Right-of-use assets
|
5,623
|
5,183
|
||||||
Property and equipment, net
|
4,570
|
4,711
|
||||||
Intangible assets, net
|
32,393
|
33,644
|
||||||
Investment in joint venture
|
544
|
621
|
||||||
Total non-current assets
|
72,606
|
65,454
|
||||||
Total assets
|
371,004
|
414,970
|
LIABILITIES
|
June 30, 2022
|
December 31, 2021
|
||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
30,168
|
29,537
|
||||||
Loans and financing
|
2,396
|
2,087
|
||||||
Taxes payable
|
3,733
|
5,035
|
||||||
Lease liabilities
|
1,493
|
1,105
|
||||||
Deferred revenue
|
16,531
|
16,598
|
||||||
Derivative financial instruments
|
-
|
133
|
||||||
Accounts payable from acquisition of subsidiaries
|
1,552
|
4,260
|
||||||
Other current liabilities
|
158
|
133
|
||||||
Total current liabilities
|
56,031
|
58,888
|
||||||
Non-current liabilities
|
||||||||
Accounts payable and accrued expenses
|
482
|
1,977
|
||||||
Loans and financing
|
-
|
1,192
|
||||||
Taxes payable
|
160
|
160
|
||||||
Lease liabilities
|
4,931
|
4,886
|
||||||
Accounts payable from acquisition of subsidiaries
|
-
|
2,163
|
||||||
Deferred revenue
|
15,581
|
16,204
|
||||||
Deferred tax liabilities
|
2,240
|
2,045
|
||||||
Other non-current liabilities
|
420
|
266
|
||||||
Total non-current liabilities
|
23,814
|
28,893
|
||||||
EQUITY
|
||||||||
Issued capital
|
19
|
19
|
||||||
Capital reserve
|
395,034
|
390,466
|
||||||
Other reserves
|
604
|
652
|
Accumulated losses
|
(104,508
|
)
|
(63,955
|
)
|
||||
Equity attributable to VTEX’s shareholders
|
291,149
|
327,182
|
||||||
Non-controlling interests
|
10
|
7
|
||||||
Total shareholders’ equity
|
291,159
|
327,189
|
||||||
Total liabilities and equity
|
371,004
|
414,970
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
|||||||||||||
Subscription revenue
|
36,649
|
29,652
|
69,230
|
54,310
|
||||||||||||
Services revenue
|
2,065
|
1,217
|
4,151
|
2,483
|
||||||||||||
Total revenue
|
38,714
|
30,869
|
73,381
|
56,793
|
||||||||||||
Subscription cost
|
(10,166
|
)
|
(9,461
|
)
|
(20,162
|
)
|
(18,176
|
)
|
||||||||
Services cost
|
(2,842
|
)
|
(2,757
|
)
|
(5,449
|
)
|
(4,865
|
)
|
||||||||
Total cost
|
(13,008
|
)
|
(12,218
|
)
|
(25,611
|
)
|
(23,041
|
)
|
||||||||
Gross profit
|
25,706
|
18,651
|
47,770
|
33,752
|
||||||||||||
Operating Expenses
|
||||||||||||||||
General and administrative
|
(7,431
|
)
|
(7,806
|
)
|
(14,352
|
)
|
(15,029
|
)
|
||||||||
Sales and marketing
|
(21,318
|
)
|
(15,697
|
)
|
(39,218
|
)
|
(26,732
|
)
|
||||||||
Research and development
|
(15,409
|
)
|
(10,669
|
)
|
(29,334
|
)
|
(19,092
|
)
|
||||||||
Other losses
|
(474
|
)
|
(868
|
)
|
(465
|
)
|
(1,317
|
)
|
||||||||
Loss from operation
|
(18,926
|
)
|
(16,389
|
)
|
(35,599
|
)
|
(28,418
|
)
|
||||||||
Financial income
|
4,696
|
2,136
|
8,988
|
2,548
|
||||||||||||
Financial expense
|
(10,122
|
)
|
(3,490
|
)
|
(19,135
|
)
|
(5,257
|
)
|
||||||||
Financial result, net
|
(5,426
|
)
|
(1,354
|
)
|
(10,147
|
)
|
(2,709
|
)
|
||||||||
Equity results
|
268
|
139
|
487
|
235
|
||||||||||||
Loss before income tax
|
(24,084
|
)
|
(17,604
|
)
|
(45,259
|
)
|
(30,892
|
)
|
||||||||
Income tax
|
||||||||||||||||
Current
|
(574
|
)
|
(297
|
)
|
(1,001
|
)
|
(504
|
)
|
||||||||
Deferred
|
3,193
|
2,432
|
5,705
|
3,466
|
||||||||||||
Total income tax
|
2,619
|
2,135
|
4,704
|
2,962
|
||||||||||||
Net loss for the period
|
(21,465
|
)
|
(15,469
|
)
|
(40,555
|
)
|
(27,930
|
)
|
||||||||
Attributable to controlling shareholders
|
(21,464
|
)
|
(15,469
|
)
|
(40,553
|
)
|
(27,927
|
)
|
||||||||
Non-controlling interest
|
(1
|
)
|
-
|
(2
|
)
|
(3
|
)
|
|||||||||
Loss per share
|
||||||||||||||||
Basic loss per share
|
(0.112
|
)
|
(0.090
|
)
|
(0.212
|
)
|
(0.163
|
)
|
||||||||
Diluted loss per share
|
(0.112
|
)
|
(0.090
|
)
|
(0.212
|
)
|
(0.163
|
)
|
Issued
capital
|
Capital
reserve
|
Other
reserves
|
Accumulated
losses
|
Total equity
attributable to
VTEX’s
shareholders
|
Non-
controlling
interests
|
Total
shareholders'
equity
|
||||||||||||||||||||||
At January 1, 2021
|
17
|
78,945
|
104
|
(3,444
|
)
|
75,622
|
126
|
75,748
|
||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
(27,927
|
)
|
(27,927
|
)
|
(3
|
)
|
(27,930
|
)
|
|||||||||||||||||
Foreign cumulative conversion adjustment
|
-
|
-
|
304
|
-
|
304
|
-
|
304
|
|||||||||||||||||||||
Transactions with owners of the Company
|
||||||||||||||||||||||||||||
Exercise of stock options
|
-
|
927
|
-
|
-
|
927
|
-
|
927
|
|||||||||||||||||||||
Issue of ordinary shares as consideration for a business combination
|
-
|
1,469
|
-
|
-
|
1,469
|
-
|
1,469
|
|||||||||||||||||||||
Capital contribution
|
-
|
1,000
|
-
|
-
|
1,000
|
-
|
1,000
|
|||||||||||||||||||||
Buyback of shares
|
-
|
(407
|
)
|
-
|
-
|
(407
|
)
|
-
|
(407
|
)
|
||||||||||||||||||
Share-based compensation
|
-
|
3,995
|
-
|
-
|
3,995
|
-
|
3,995
|
|||||||||||||||||||||
Transactions with non-controlling interests
|
-
|
96
|
-
|
-
|
96
|
(123
|
)
|
(27
|
)
|
|||||||||||||||||||
-
|
7,080
|
-
|
-
|
7,080
|
(123
|
)
|
6,957
|
|
||||||||||||||||||||
At June 30, 2021
|
17
|
86,025
|
408
|
(31,371
|
)
|
55,079
|
-
|
55,079
|
||||||||||||||||||||
At January 1, 2022
|
19
|
390,466
|
652
|
(63,955
|
)
|
327,182
|
7
|
327,189
|
||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
(40,553
|
)
|
(40,553
|
)
|
(2
|
)
|
(40,555
|
)
|
|||||||||||||||||
Foreign cumulative conversion adjustment
|
-
|
-
|
(48
|
)
|
-
|
(48
|
)
|
-
|
(48
|
)
|
||||||||||||||||||
Transactions with owners of the Company
|
||||||||||||||||||||||||||||
Exercise of stock options
|
-
|
28
|
-
|
-
|
28
|
-
|
28
|
|||||||||||||||||||||
Issue of ordinary shares as consideration for a business combination
|
-
|
3
|
-
|
-
|
3
|
-
|
3
|
|||||||||||||||||||||
Share-based compensation
|
-
|
4,537
|
-
|
-
|
4,537
|
-
|
4,537
|
|||||||||||||||||||||
Transactions with non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
5
|
5
|
|||||||||||||||||||||
-
|
4,568
|
-
|
-
|
4,568
|
5
|
4,573
|
||||||||||||||||||||||
At June 30, 2022
|
19
|
395,034
|
604
|
(104,508
|
)
|
291,149
|
10
|
291,159
|
Six months ended
|
||||||||
June 30, 2022
|
June 30, 2021
|
|||||||
Loss for the period
|
(40,555
|
)
|
(27,930
|
)
|
||||
Adjustments on loss for the period
|
||||||||
Depreciation and amortization
|
2,205
|
1,814
|
||||||
Deferred income tax
|
(5,705
|
)
|
(3,466
|
)
|
||||
Loss on disposal of rights of use, property, equipment, and intangible assets
|
(126
|
)
|
1
|
|||||
Allowance for doubtful accounts
|
509
|
294
|
||||||
Share-based compensation
|
4,537
|
3,995
|
||||||
Provision for payroll taxes (share-based compensation)
|
(2,147
|
)
|
-
|
|||||
Adjustment of hyperinflation
|
2,079
|
876
|
||||||
Profit on investments in joint venture
|
(487
|
)
|
(235
|
)
|
||||
Fair value losses
|
7,970
|
(88
|
)
|
|||||
Other costs and foreign exchange, net
|
(487
|
)
|
27
|
|||||
Working capital adjustments
|
||||||||
Trade receivables
|
2,042
|
(6,553
|
)
|
|||||
Recoverable taxes
|
(162
|
)
|
(47
|
)
|
||||
Prepaid expenses
|
3,204
|
(2,450
|
)
|
|||||
Other assets
|
(164
|
)
|
28
|
|||||
Accounts payable and accrued expenses
|
1,086
|
9,422
|
||||||
Taxes payable
|
(645
|
)
|
206
|
|||||
Deferred revenue
|
(1,541
|
)
|
6,894
|
|||||
Other liabilities
|
368
|
(525
|
)
|
|||||
Cash used in operating activities
|
(28,019
|
)
|
(17,737
|
)
|
||||
Income tax paid
|
(603
|
)
|
(3,879
|
)
|
||||
Net cash used in operating activities
|
(28,622
|
)
|
(21,616
|
)
|
||||
Cash flows from investing activities
|
||||||||
Dividends received
|
146
|
-
|
||||||
Purchase of short-term investment
|
(110,991
|
)
|
-
|
|||||
Redemption of short-term investment
|
53,057
|
-
|
||||||
Redemption of marketable securities
|
-
|
3,316
|
||||||
Interest received
|
267
|
384
|
||||||
Dividend income from financial instruments
|
30
|
-
|
||||||
Payment of business acquired
|
(1,512
|
)
|
(4,449
|
)
|
||||
Acquisitions of property and equipment
|
(166
|
)
|
(1,065
|
)
|
||||
Net cash used in investing activities
|
(59,169
|
)
|
(1,814
|
)
|
||||
Cash flows from financing activities
|
||||||||
Derivative financial instruments
|
(718
|
)
|
-
|
|||||
Changes in restricted cash
|
575
|
69
|
||||||
Proceeds from the exercise of stock options
|
28
|
927
|
||||||
Net-settlement of share-based payment
|
(783
|
)
|
-
|
|||||
Capital increase
|
-
|
1,000
|
||||||
Buyback of shares
|
-
|
(2,423
|
)
|
|||||
Payment of loans and financing
|
(1,327
|
)
|
(9,653
|
)
|
||||
Interest paid
|
(36
|
)
|
(59
|
)
|
||||
Principal elements of lease payments
|
(574
|
)
|
(460
|
)
|
||||
Lease interest paid
|
(351
|
)
|
(351
|
)
|
||||
Net cash used in financing activities
|
(3,186
|
)
|
(10,950
|
)
|
||||
Net decrease in cash and cash equivalents
|
(90,977
|
)
|
(34,380
|
)
|
||||
Cash and cash equivalents, beginning of the period
|
121,006
|
58,557
|
||||||
Effect of exchange rate changes
|
(362
|
)
|
(579
|
)
|
||||
Cash and cash equivalents, end of the period
|
29,667
|
23,598
|
||||||
Supplemental cash flow information:
|
||||||||
Lease liabilities arising from obtaining right-of-use assets
|
1,020
|
156
|
||||||
Issue of ordinary shares as consideration for a business combination
|
3
|
1,469
|
||||||
Unpaid amount related to acquisition of non-controlling interest
|
-
|
27
|
||||||
Unpaid amount related to business combinations
|
-
|
9,810
|
||||||
Dividends receivable used to pay accounts from acquisition of subsidiaries
|
448
|
-
|
||||||
Transactions with non-controlling interests
|
5
|
-
|
1.
|
General information
|
Interest held by the Group (%)
|
|||||||
Company
|
Place of business/
country of
incorporation
|
Relationship
|
Principal
business
activity
|
June 30,
2022
|
December
31, 2021
|
June 30,
2021
|
|
VTEX (“VTEX”)
|
Cayman
|
Holding
|
Technology
Services
|
||||
VTEX Informatica S.A. (“VTEX ARG”)
|
Argentina
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
VTEX Brasil Tecnologia para E-
commerce LTDA. (“VTEX Brazil”)
|
Brazil
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
VTEX Publicidade e Eventos Ltda
(“VTEX DAY”)
|
Brazil
|
Subsidiary
|
Production
of events
|
100
|
100
|
100
|
|
Ciashop Soluções para Comércio
Eletrônico S.A. (“Ciashop”)
|
Brazil
|
Subsidiary
|
Technology
Services
|
-
|
-
|
100
|
|
Loja Integrada Tecnologia
Para Softwares S.A. (“Loja Integrada”)
|
Brazil
|
Subsidiary
|
Technology
Services
|
99.76
|
99.87
|
100
|
|
VTEX Chile SPA (“VTEX CHI”)
|
Chile
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
VTEX Colombia Tecnologia para
Ecommerce S.A.S. (“VTEX COL”)
|
Colombia
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
VTEX Commerce Cloud Solutions LLC
(“VTEX USA”)
|
USA
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
WebLinc Corporation (“WorkArea”)
|
USA
|
Subsidiary
|
Technology
Services
|
-
|
-
|
100
|
|
VTEX Ecommerce Platform Limited
(“VTEX UK”)
|
UK
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
EICOM Limited (“EICOM”)
|
UK
|
Subsidiary
|
Technology
Services
|
-
|
-
|
100
|
|
Soluciones Cloud en Ecommerce
S.R.L. de C.V. (“VTEX MEX”)
|
Mexico
|
Subsidiary
|
Technology
Services
|
99.99
|
99.99
|
99.99
|
|
EI Education S.A.P.I de C.V.
(“Escuela”)
|
Mexico
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
Suiteshare Tecnologia da Informação
S.A. (“Suiteshare”) (ii)
|
Brazil
|
Subsidiary
|
Technology
Services
|
-
|
100
|
100
|
|
Peru Tecnologia para ECOMMERCE
S.A.C. (“VTEX PERU”)
|
Peru
|
Subsidiary
|
Technology
Services
|
100
|
100
|
100
|
|
VTEX Platform España, S.L. ("VTEX
ESP") (i)
|
Spain
|
Subsidiary
|
Technology
Services
|
100
|
-
|
-
|
|
Vtex Ecommerce Platform Limited -
Sede Secondaria (“VTEX ITA”)
|
Italy
|
Branch
|
Technology
Services
|
100
|
100
|
-
|
|
Vtex Ecommerce Platform Limited
London - Sucursala Bucuresti (“VTEX
ROM”)
|
Romania
|
Branch
|
Technology
Services
|
100
|
100
|
-
|
|
Vtex Ecommerce Platform Limited –
Sucursal em Portugal (“VTEX PORT”)
|
Portugal
|
Branch
|
Technology
Services
|
100
|
100
|
-
|
(i)
|
VTEX ESP was created in March/2022 to fulfill the Group’s operational needs.
|
(ii)
|
Suiteshare was merged into VTEX Brazil in March/2022.
|
2.
|
Basis of Presentation and Consolidation
|
The accounting policies described in detail below have been consistently applied to all periods presented in these unaudited condensed consolidated interim financial statements, unless otherwise stated. The financial statements are
applicable for the group consisting of VTEX and its subsidiaries. The accounting policies have been consistently applied by the Group.
|
a.
|
Basis for preparation of the unaudited condensed consolidated interim financial statements
|
The unaudited condensed consolidated interim financial statements of VTEX Group for the six-month period ended June 30, 2022, have been prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International
Accounting Standards Board (“IASB”).
|
The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in an annual consolidated financial statement. Accordingly, this report is to be read in conjunction with the
Group’s annual consolidated financial statements for the year ended December 31, 2021, and any public announcements made by the Group during the interim reporting period.
|
The accounting policies adopted are consistent with those of the previous financial year, except for the income tax estimation (see note 6) and the adoption of new and amended standards as set out below.
|
The unaudited condensed consolidated interim financial statements are presented in U.S. dollars (“USD”, “US$”, or “$”), which is the Company’s functional and presentation currency. All amounts are rounded to the nearest thousands, except
when otherwise indicated.
|
b. | New standards, interpretations, and amendments adopted by the Group |
In 2022 the Company has adopted the following new interpretation and amendments: (i) Amendments to IAS 16 - Property, Plant and Equipment; (ii) Amendments to IFRS 3 - Business Combinations; and (iii) Annual Improvements to IFRS Standards
2018–2020.
|
These interpretations and amendments had no impact on the unaudited condensed consolidated interim financial statements of the Group.
|
c. |
Critical estimates and accounting judgments |
Management has made judgments and estimates that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Accounting
estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are recognized
prospectively.
|
In preparing these unaudited condensed consolidated interim financial statements, the significant judgments and estimates made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those set at the consolidated financial statements for the year ended December 31, 2021. No retrospective adjustments were made. |
3. |
Cash and cash equivalents
|
June 30, 2022
|
December 31, 2021
|
||||||||
Cash and cash bank deposits
|
24,501
|
120,928
|
|||||||
Time deposits and other investments
|
2,262
|
-
|
|||||||
Investment funds
|
2,904
|
78
|
|||||||
Cash and cash equivalents
|
29,667
|
121,006
|
4.
|
Marketable securities and short term investments
|
June 30, 2022
|
December 31, 2021
|
||||||||
Short-term investments
|
225,113
|
177,191
|
|||||||
Marketable securities and short-term investments
|
225,113
|
177,191
|
4.1.
|
Short-term investments
|
|
The following table shows the changes in the balances:
|
2022
|
|||||
Opening balance on January 1
|
177,191
|
||||
Additions
|
110,991
|
||||
Redemption
|
(53,057
|
)
|
|||
Losses
|
(9,147
|
)
|
|||
Exchange differences
|
(865
|
)
|
|||
Closing balances on June 30
|
225,113
|
5.
|
Trade receivables
|
|
Trade receivables are as follows:
|
June 30, 2022
|
December 31, 2021
|
||||||||
Trade receivables
|
39,393
|
41,972
|
|||||||
Loss allowances
|
(1,194
|
)
|
(1,147
|
)
|
|||||
Total trade receivables
|
38,199
|
40,825
|
|||||||
Current
|
32,669
|
34,682
|
|||||||
Non-current
|
5,530
|
6,143
|
|
The changes in loss allowances for trade receivables are as follows:
|
2022
|
|||||
Opening balance on January 1
|
(1,147
|
)
|
|||
Addition, net
|
(509
|
)
|
|||
Write-off
|
427
|
||||
Exchange differences
|
35
|
||||
Closing balances on June 30
|
(1,194
|
)
|
June 30, 2022
|
December 31, 2021
|
||||||||
Current
|
35,564
|
38,456
|
|||||||
Overdue:
|
|||||||||
From 1 to 30 days
|
1,586
|
1,251
|
|||||||
From 31 to 60 days
|
572
|
847
|
|||||||
From 61 to 90 days
|
345
|
439
|
|||||||
From 91 to 120 days
|
271
|
113
|
|||||||
From 121 to 300 days
|
1,055
|
866
|
|||||||
Total
|
39,393
|
41,972
|
6.
|
Current and deferred tax
|
6.1.
|
Deferred tax assets
|
June 30, 2022
|
December 31, 2021
|
||||||||
Loss allowances for financial assets
|
146
|
75
|
|||||||
Bonus provision
|
1,073
|
750
|
|||||||
Lease
|
402
|
366
|
|||||||
Share-based compensation
|
2,729
|
3,224
|
|||||||
Hyperinflationary adjustments
|
63
|
89
|
|||||||
Tax loss (i)
|
12,055
|
6,445
|
|||||||
Others (ii)
|
2,303
|
1,623
|
|||||||
Total deferred tax assets
|
18,771
|
12,572
|
6.2.
|
Deferred tax liabilities
|
June 30, 2022
|
December 31, 2021
|
||||||||
Acquisition of subsidiaries
|
1,547
|
1,687
|
|||||||
Temporary differences
|
559
|
283
|
|||||||
Others
|
134
|
75
|
|||||||
Total deferred tax liabilities
|
2,240
|
2,045
|
6.3.
|
Income tax expense
|
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
||||||||||||||
Current tax
|
|||||||||||||||||
Current tax on profits for the period
|
(574
|
)
|
(297
|
)
|
(1,001
|
)
|
(504
|
)
|
|||||||||
(574
|
)
|
(297
|
)
|
(1,001
|
)
|
(504
|
)
|
||||||||||
Deferred income tax
|
|||||||||||||||||
Decrease in deferred tax
|
3,193
|
2,432
|
5,705
|
3,466
|
|||||||||||||
3,193
|
2,432
|
5,705
|
3,466
|
||||||||||||||
Income tax
|
2,619
|
2,135
|
4,704
|
2,962
|
7.
|
Leases
|
7.1.
|
Amounts recognized in the balance sheet
|
|
June 30, 2022
|
December 31, 2021
|
|||||||
Right-of-use asset
|
|||||||||
Office buildings
|
5,623
|
5,183
|
|||||||
Total
|
5,623
|
5,183
|
|
June 30, 2022
|
December 31, 2021
|
|||||||
Lease liabilities
|
|||||||||
Current
|
1,493
|
1,105
|
|||||||
Non-current
|
4,931
|
4,886
|
|||||||
Total
|
6,424
|
5,991
|
2022
|
|||||
Right-of-use asset
|
|||||
Opening balance on January 1
|
5,183
|
||||
New lease agreements
|
947
|
||||
Remeasurement
|
131
|
||||
Hyperinflation adjustment
|
1
|
||||
Depreciation
|
(620
|
)
|
|||
Write off
|
(352
|
)
|
|||
Exchange differences
|
333
|
||||
Closing balances on June 30
|
5,623
|
||||
Lease liabilities
|
|||||
Opening balance on January 1
|
5,991
|
||||
New lease agreements
|
947
|
||||
Remeasurement
|
73
|
||||
Interest added
|
351
|
||||
Principal elements of lease payment
|
(574
|
)
|
|||
Interest payment
|
(351
|
)
|
|||
Write off
|
(423
|
)
|
|||
Exchange differences
|
410
|
||||
Closing balances on June 30
|
6,424
|
7.2.
|
Amounts recognized in the statement of profit or loss
|
Three months ended
|
Six months ended
|
||||||||||||||||
|
June 30, 2022
|
June 30, 2021
|
June 30, 2022
|
June 30, 2021
|
|||||||||||||
|
|||||||||||||||||
Depreciation charge of office
buildings
|
317
|
265
|
620
|
509
|
|||||||||||||
Interest expense (included in
finance expense)
|
175
|
175
|
351
|
351
|
|||||||||||||
Total
|
492
|
440
|
971
|
860
|
8.
|
Property and equipment, net
|
|
Details of the Group’s property and equipment balance are shown in the tables below:
|
June 30, 2022
|
December 31, 2021
|
||||||||
Leasehold improvements
|
2,979
|
2,826
|
|||||||
Machinery and equipment
|
298
|
279
|
|||||||
Furniture and fixture
|
788
|
710
|
|||||||
Computer and peripherals
|
4,316
|
3,987
|
|||||||
Accumulated depreciation
|
(3,811
|
)
|
(3,091
|
)
|
|||||
Property and equipment, net
|
4,570
|
4,711
|
9.
|
Intangible assets, net
|
|
Details of intangible assets and changes in the Group’s intangible assets balances are presented below:
|
June 30, 2022
|
December 31, 2021
|
||||||||
Software
|
4,342
|
4,090
|
|||||||
Trademark
|
221
|
207
|
|||||||
Intellectual property
|
2,673
|
2,541
|
|||||||
Customer contracts
|
9,408
|
9,337
|
|||||||
Goodwill
|
21,916
|
22,374
|
|||||||
Others
|
526
|
493
|
|||||||
Accumulated amortization
|
(6,693
|
)
|
(5,398
|
)
|
|||||
Intangible assets, net
|
32,393
|
33,644
|
10.
|
Accounts payable and accrued expenses
|
|
The breakdown of accounts payable and accrued expenses is as follows:
|
June 30, 2022
|
December 31, 2021
|
||||||||
Trade payables
|
12,083
|
12,668
|
|||||||
Accounts payable to related parties
|
24
|
27
|
|||||||
Social charges
|
5,123
|
7,048
|
|||||||
Profit-sharing
|
7,056
|
7,203
|
|||||||
Provision for vacation and benefits
|
6,298
|
4,333
|
|||||||
Other
|
66
|
235
|
|||||||
Total accounts payable and accrued expenses
|
30,650
|
31,514
|
|||||||
Current
|
30,168
|
29,537
|
|||||||
Non-current
|
482
|
1,977
|
11.
|
Loans and financing
|
11.1.
|
Breakdown of loans and financing
|
|
|
|
June 30,
|
December 31,
|
||||||||||
Interest rate |
Country |
Maturity |
2022 | 2021 | ||||||||||
BNDES (i)
|
6.5% p.a.
(Brazilian Reais)
|
Brazil
|
Mar/2023
|
572
|
891
|
|||||||||
Itaú (ii)
|
100% CDI+ 2.65 p.a.
(Brazilian Reais)
|
Brazil
|
May/2023
|
1,824
|
2,388
|
|||||||||
Total
|
2,396
|
3,279
|
||||||||||||
Current
|
2,396
|
2,087
|
||||||||||||
Non-current
|
-
|
1,192
|
11.2.
|
Changes in loans and financing
|
2022
|
|||||
Opening balance on January 1
|
3,279
|
||||
Payment of loans
|
(1,327
|
)
|
|||
Interest charged
|
36
|
||||
Interest paid
|
(36
|
)
|
|||
Basis adjustment on the fair value hedge (i)
|
178
|
||||
Exchange differences
|
266
|
||||
Closing balances on June 30
|
2,396
|
(i)
|
In June 2019, the subsidiary VTEX BRA designated the loan in euros with Itaú bank as a fair value hedge. Losses on the financial instrument that are measured at fair value have been recognized as a financial expense.
|
12.
|
Taxes payable
|
The breakdown of taxes payable is as follows: |
June 30, 2022
|
December 31, 2021
|
||||||||
Income tax payable
|
922
|
524
|
|||||||
Other taxes payable
|
2,971
|
4,671
|
|||||||
Total taxes payable
|
3,893
|
5,195
|
|||||||
Current
|
3,733
|
5,035
|
|||||||
Non-current
|
160
|
160
|
13.
|
Contingencies
|
The Group is party to civil and labor lawsuits involving loss risks. Provisions for losses resulting from lawsuits are estimated and updated by the Group, based on analysis from the Group’s legal advisors. |
The breakdown of existing contingencies classified as probable by the Group, based on the evaluation of its legal advisors, which are recognized as a liability, is as follows: |
June 30, 2022
|
December 31, 2021
|
||||||||
Civil
|
5
|
17
|
|||||||
Labor
|
46
|
16
|
|||||||
Tax
|
82
|
53
|
|||||||
Total
|
133
|
86
|
The breakdown of existing contingencies classified as possible by management, based on the evaluation of its legal advisors, for which no provision was recognized is as follows: |
June 30, 2022
|
December 31, 2021
|
||||||||
Civil
|
118
|
123
|
|||||||
Labor
|
-
|
189
|
|||||||
Tax
|
279
|
10
|
|||||||
Total
|
397
|
322
|
14.
|
Shareholders’ equity
|
14.1.
|
Share Capital
|
June 30, 2022
|
December 31, 2021
|
||||||||
Number of ordinary nominative shares
|
191,366,837
|
191,028,642
|
|||||||
Par value
|
0.0001
|
0.0001
|
|||||||
Total share capital
|
19
|
19
|
15.
|
Revenue from services provided
|
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
||||||||||||||
Subscriptions
|
40,025
|
32,482
|
75,700
|
59,291
|
|||||||||||||
Taxes on subscriptions
|
(3,376
|
)
|
(2,830
|
)
|
(6,470
|
)
|
(4,981
|
)
|
|||||||||
Revenue from subscriptions
|
36,649
|
29,652
|
69,230
|
54,310
|
|||||||||||||
Services provided
|
2,257
|
1,377
|
4,510
|
2,748
|
|||||||||||||
Taxes on services
|
(192
|
)
|
(160
|
)
|
(359
|
)
|
(265
|
)
|
|||||||||
Revenue from services
|
2,065
|
1,217
|
4,151
|
2,483
|
|||||||||||||
Revenue from subscription and services
|
38,714
|
30,869
|
73,381
|
56,793
|
16.
|
Earnings (loss) per share
|
Basic earnings (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the year. |
Diluted earnings per share are computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. |
The following table contains the loss per share of the Group for the three and six-months periods ended June 30, 2022 and 2021: |
Three months ended
|
Six months ended
|
||||||||||||||||
Basic loss per share
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
|||||||||||||
Loss attributable to the stockholders of the Group
|
(21,464
|
)
|
(15,469
|
)
|
(40,553
|
)
|
(27,927
|
)
|
|||||||||
Weighted average number of outstanding common shares (thousands)
|
191,281
|
172,630
|
191,223
|
170,828
|
|||||||||||||
Basic loss per share
|
(0.112
|
)
|
(0.090
|
)
|
(0.212
|
)
|
(0.163
|
)
|
In the three and six months ended June 30, 2022, the Company was in a loss position and therefore diluted loss per share is equal to basic loss per share.
|
17.
|
Share-based compensation
|
17.1.
|
Share-based compensation: VTEX
|
VTEX provides share-based compensation to selected directors and employees as a stock-option plan.
|
Under both stock-option plan and RSUs, usually the options have a term of 5 or 6 years as of the grant date. They are exercisable as long as the director or employee fulfills the worked periods after the options are granted.
|
Set out below are summaries of options granted under the plan:
|
|
Number of
options
(thousands)
|
Weighted
Average
Exercise
Price
|
Remaining
Contractual
Terms in Years
|
Weighted
Average Grant
Date Fair Value |
|||||||||||||
At January 1, 2022
|
8,809
|
4.78
|
5.37
|
1.58
|
|||||||||||||
Granted during the period
|
764
|
7.25
|
-
|
3.41
|
|||||||||||||
Forfeit during the period
|
(1,186
|
)
|
5.09
|
-
|
2.01
|
||||||||||||
Exercised during the period (i)
|
(25
|
)
|
1.06
|
-
|
0.37
|
||||||||||||
At June 30, 2022
|
8,362
|
4.98
|
5.01
|
1.69
|
Stock options exercisable as of June 30, 2022
|
3,645
|
3.62
|
4.37
|
1.00
|
●
|
Strike Price - Average price weighted by the quantity granted;
|
●
|
Target Asset Price – The trading price closest to the granting date of the options or the trading price derived from an independent valuation report;
|
●
|
Risk-Free Interest Rate - US Treasury interest rate, according to the contractual term;
|
●
|
Volatility - According to comparable peer entities listed on the stock exchange.
|
●
|
Target Asset Price - USD 7.32 per share (December 31, 2021 - 10.72 per share)
|
●
|
Risk-Free Interest Rate - 2.08% (December 31, 2021: 1.14%)
|
●
|
Volatility - 50.75% (December 31, 2021: 51.89%)
|
●
|
Expected dividend: None
|
|
Number of RSUs
(thousands)
|
Weighted Average Grant Date Fair Value
|
|||||||
At January 1, 2022
|
3,001
|
7.70
|
|||||||
RSU granted
|
1,341
|
7.10
|
|||||||
Forfeit during the period
|
(623
|
)
|
8.03
|
||||||
Settled (i)
|
(418
|
)
|
5.95
|
||||||
At June 30, 2022
|
3,301
|
7.61
|
17.2.
|
Share-based compensation: Loja Integrada
|
●
|
Strike Price - Average price weighted by the quantity granted;
|
●
|
Target Asset Price – The trading price closest to the granting date of the options or the trading price derived from an independent valuation report;
|
●
|
Risk-Free Interest Rate - Future CDI, according to the contractual term;
|
●
|
Volatility - According to comparable peer entities listed on the stock exchange.
|
●
|
Target Asset Price - Not applicable for the period (December 31, 2021 - 13.06 per share)
|
●
|
Risk-free interest rate in Brazilian Reais - Not applicable for the period (December 31, 2021: 8.81%)
|
●
|
Volatility - Not applicable for the period (December 31, 2021: 47.69%)
|
●
|
Expected dividend: None
|
|
Number of
options
(thousands)
|
Weighted
Average
Exercise
Price
|
Remaining
Contractual
Terms in Years
|
Weighted
Average Grant
Date Fair Value
|
|||||||||||||
At January 1, 2022
|
23.57
|
12.37
|
6.35
|
5.47
|
|||||||||||||
Granted during the period
|
-
|
-
|
-
|
-
|
|||||||||||||
Forfeit during the period
|
(6.73
|
)
|
12.06
|
-
|
6.09
|
||||||||||||
Exercised during the period
|
-
|
-
|
-
|
-
|
|||||||||||||
At June 30, 2022
|
16.84
|
13.65
|
5.86
|
5.73
|
|||||||||||||
|
Number of RSUs
(thousands)
|
Weighted Average Grant Date Fair Value
|
|||||||
At January 1, 2022
|
83.03
|
11.22
|
|||||||
RSU granted
|
198.10
|
7.84
|
|||||||
Forfeit during the period
|
(59.97
|
)
|
11.07
|
||||||
Settled (i)
|
(31.00
|
)
|
10.63
|
||||||
At June 30, 2022
|
190.16
|
8.18
|
17.3.
|
Amounts recognized in the statement of profit or loss
|
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
2022
|
June 30,
2021 |
June 30,
2022
|
June 30,
2021
|
||||||||||||||
Subscription cost
|
(80
|
)
|
(205
|
)
|
(167
|
)
|
(313
|
)
|
|||||||||
Services cost
|
6
|
(136
|
)
|
(20
|
)
|
(169
|
)
|
||||||||||
General and administrative
|
(639
|
)
|
(1,907
|
)
|
(1,628
|
)
|
(3,080
|
)
|
|||||||||
Sales and marketing
|
247
|
(1,586
|
)
|
(482
|
)
|
(2,315
|
)
|
||||||||||
Research and development
|
(458
|
)
|
(1,664
|
)
|
(1,101
|
)
|
(2,780
|
)
|
|||||||||
Total
|
(924
|
)
|
(5,498
|
)
|
(3,398
|
)
|
(8,657
|
)
|
18.
|
Financial Instruments
|
18.1.
|
Financial instruments by category
|
June 30, 2022
|
December 31, 2021
|
||||||||
Financial assets:
|
|||||||||
Cash and cash equivalents
|
29,667
|
121,006
|
|||||||
Restricted cash
|
694
|
1,183
|
|||||||
Trade receivables
|
38,199
|
40,825
|
|||||||
Total
|
68,560
|
163,014
|
|||||||
Financial liabilities
|
|||||||||
Trade payables
|
12,107
|
12,695
|
|||||||
Lease liabilities
|
6,424
|
5,991
|
|||||||
Loans and financing
|
2,396
|
3,279
|
|||||||
Accounts payable from acquisition of subsidiaries
|
-
|
1,470
|
|||||||
Total
|
20,927
|
23,435
|
(ii)
|
Financial instruments valued at fair value through profit or loss
|
|
Financial instruments are classified at fair value through profit or loss when this classification significantly reduces a possible measurement or recognition
inconsistency (sometimes referred to as “accounting mismatch”) that would occur due to the measurement of assets or liabilities or the recognition of their gains and losses on different bases. Gains/losses on financial instruments that are
measured at fair value through profit or loss are recognized as financial income or expense in the profit or loss for the period.
The Group has the following financial instruments valued at fair value through profit or loss:
|
Carrying amount
|
|||||||||
June 30, 2022
|
December 31, 2021
|
||||||||
Financial assets:
|
|||||||||
Short-term investments
|
225,113
|
177,191
|
|||||||
Total
|
225,113
|
177,191
|
Carrying amount
|
|||||||||
June 30, 20222
|
December 31, 2021
|
||||||||
Financial liabilities:
|
|||||||||
Derivative financial instruments (i)
|
-
|
133
|
|||||||
Accounts payable from acquisition of subsidiaries (”earn-out”)
|
1,552
|
4,953
|
|||||||
Total
|
1,552
|
5,086
|
(i)
|
The Group used to hedge the exposure of foreign currency risk related to loans obtained with related parties by contracting a Non-Deliverable Forward (“NDF”) derivative financial instrument raised through Itaú Bank . The instrument had a
total notional value of US$ 4.600 and was fully settled on March 15, 2022 for USD 718.
|
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
2022
|
June 30,
2021
|
June 30,
2022 |
June 30,
2021
|
||||||||||||||
Net gain (loss) on financial instruments
|
1,234
|
(639
|
)
|
1,155
|
(275
|
)
|
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
||||||||||||||
Net gain (loss) on marketable securities and short-term investments
|
(5,352
|
)
|
241
|
(9,147
|
)
|
122
|
a.
|
Fair value hierarchy
|
June 30, 2022
|
|||||||||||||
Level 1
|
Level 2
|
Level 3
|
|||||||||||
Assets
|
|||||||||||||
Short-term investments
|
225,113
|
-
|
-
|
||||||||||
Liabilities
|
|||||||||||||
Accounts payable from acquisition of subsidiaries (“earn-out”)
|
-
|
-
|
1,552
|
December 31, 2021
|
|||||||||||||
Level 1
|
Level 2
|
Level 3
|
|||||||||||
Assets
|
|||||||||||||
Short-term investments
|
177,191
|
-
|
-
|
||||||||||
Liabilities
|
|||||||||||||
Derivative financial instruments
|
-
|
133
|
-
|
||||||||||
Accounts payable from acquisition of subsidiaries (“earn-out”)
|
-
|
-
|
4,953
|
•
|
Level 1:
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial
assets held by the Group is the current bid price. These instruments are included in level 1.
|
•
|
Level 2:
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
|
•
|
Level 3:
If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.
|
•
|
the use of quoted market prices or dealer quotes for similar instruments
|
•
|
for interest rate swaps – the present value of the estimated future cash flows based on observable yield curves;
|
•
|
for foreign currency forwards - the present value of future cash flows based on the forward exchange rates at the balance sheet date;
|
2022
|
|||||
At January 1
|
4,953
|
||||
Acquisitions of subsidiaries
|
-
|
||||
Payments of principal/finance charges - earn-out
|
(736
|
)
|
|||
Earn-out adjustments
|
(2,667
|
)
|
|||
Exchange differences
|
2
|
||||
At June 30
|
1,552
|
b.
|
Fair values of other financial instruments (unrecognized)
|
Carrying amount
|
Fair value
|
||||||||
Financial liabilities
|
|||||||||
Loans and financing
|
2,396
|
2,410
|
|||||||
Total
|
2,396
|
2,410
|
18.2.
|
Financial risk management
|
19.
|
Subsequent events
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30, 2022
|
June 30, 2021
|
June 30, 2022
|
June 30, 2021
|
|||||||||||||
(in millions of U.S. Dollars, unless otherwise indicated)
|
||||||||||||||||
GMV
|
3,111.9
|
2,439.3
|
5,826.4
|
4,475.3
|
||||||||||||
GMV growth FX neutral (%)
|
21.0
|
%
|
25.4
|
%
|
24.1
|
%
|
64.8
|
%
|
For the three months ended
(unaudited)
|
|||||||||||||||||||||||||||
(in US$ millions)
|
June
30, 2020
|
September
30, 2020
|
December
31, 2020
|
March
31, 2021
|
June
30, 2021
|
September
30, 2021
|
December
31, 2021
|
March
31, 2022
|
June
30, 2022
|
||||||||||||||||||
Subscription revenue
|
23.9
|
26.3
|
27.7
|
24.7
|
29.7
|
29.6
|
34.5
|
32.6
|
36.6
|
||||||||||||||||||
Services revenue
|
1.3
|
1.3
|
1.4
|
1.3
|
1.2
|
2.2
|
2.6
|
2.1
|
2.1
|
||||||||||||||||||
Total revenue
|
25.3
|
27.7
|
29.1
|
25.9
|
30.9
|
31.9
|
37.1
|
34.7
|
38.7
|
||||||||||||||||||
Subscription cost
|
(5.8
|
)
|
(7.1
|
)
|
(9.8
|
)
|
(8.7
|
)
|
(9.5
|
)
|
(9.7
|
)
|
(10.5
|
)
|
(10.0
|
)
|
(10.2
|
)
|
|||||||||
Services cost
|
(1.7
|
)
|
(1.7
|
)
|
(2.0
|
)
|
(2.1
|
)
|
(2.8
|
)
|
(3.1
|
)
|
(3.3
|
)
|
(2.6
|
)
|
(2.8
|
)
|
|||||||||
Total cost
|
(7.5
|
)
|
(8.8
|
)
|
(11.9
|
)
|
(10.8
|
)
|
(12.2
|
)
|
(12.8
|
)
|
(13.8
|
)
|
(12.6
|
)
|
(13.0
|
)
|
|||||||||
Gross profit
|
17.8
|
18.9
|
17.2
|
15.1
|
18.7
|
19.1
|
23.4
|
22.1
|
25.7
|
||||||||||||||||||
Operating expenses
|
|||||||||||||||||||||||||||
General and administrative
|
(2.4
|
)
|
(3.3
|
)
|
(5.1
|
)
|
(7.2
|
)
|
(7.8
|
)
|
(9.9
|
)
|
(6.9
|
)
|
(6.9
|
)
|
(7.4
|
)
|
|||||||||
Sales and marketing
|
(5.4
|
)
|
(5.3
|
)
|
(7.5
|
)
|
(11.0
|
)
|
(15.7
|
)
|
(19.3
|
)
|
(17.5
|
)
|
(17.9
|
)
|
(21.3
|
)
|
|||||||||
Research and development
|
(3.6
|
)
|
(4.5
|
)
|
(6.8
|
)
|
(8.4
|
)
|
(10.7
|
)
|
(14.2
|
)
|
(11.9
|
)
|
(13.9
|
)
|
(15.4
|
)
|
|||||||||
Other income (losses)
|
(0.3
|
)
|
(0.3
|
)
|
0.1
|
(0.4
|
)
|
(0.9
|
)
|
0.0
|
(0.2
|
)
|
0.0
|
(0.5
|
)
|
||||||||||||
Income (loss) from operation
|
6.1
|
5.5
|
(2.1
|
)
|
(12.0
|
)
|
(16.4
|
)
|
(24.4
|
)
|
(13.1
|
)
|
(16.7
|
)
|
(18.9
|
)
|
|||||||||||
Financial result
|
1.6
|
(0.6
|
)
|
(1.3
|
)
|
(1.4
|
)
|
(1.4
|
)
|
(0.6
|
)
|
(1.4
|
)
|
(4.7
|
)
|
(5.4
|
)
|
||||||||||
Equity results
|
0.0
|
0.0
|
0.1
|
0.1
|
0.1
|
0.2
|
0.2
|
0.2
|
0.3
|
||||||||||||||||||
Income (loss)
before income tax
|
7.7
|
5.0
|
(3.3
|
)
|
(13.3
|
)
|
(17.6
|
)
|
(24.8
|
)
|
(14.3
|
)
|
(21.2
|
)
|
(24.1
|
)
|
|||||||||||
Income tax
|
(2.0
|
)
|
(2.0
|
)
|
(0.9
|
)
|
0.8
|
2.1
|
2.8
|
3.7
|
2.1
|
2.6
|
|||||||||||||||
Net loss for the period
|
5.7
|
3.0
|
(4.3
|
)
|
(12.5
|
)
|
(15.5
|
)
|
(22.0
|
)
|
(10.6
|
)
|
(19.1
|
)
|
(21.5
|
)
|
|||||||||||
Loss per share
|
|||||||||||||||||||||||||||
Basic and diluted income (loss) per share (US$)
|
0.03
|
0.02
|
(0.02
|
)
|
(0.07
|
)
|
(0.09
|
)
|
(0.12
|
)
|
(0.06
|
)
|
(0.10
|
)
|
(0.11
|
)
|
|
For the Three Months ended
(unaudited)
|
|||||||||||||||||||||||||||||||||||
|
June
30, 2020
|
September
30, 2020
|
December
31, 2020
|
March
31, 2021
|
June
30, 2021
|
September
30, 2021
|
December
31, 2021
|
March
31, 2022
|
June
30, 2022
|
|||||||||||||||||||||||||||
Total revenue
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||||||||||||
Subscription cost
|
(23.0
|
)%
|
(25.6
|
)%
|
(33.8
|
)%
|
(33.6
|
)%
|
(30.6
|
)%
|
(30.6
|
)%
|
(28.2
|
)%
|
(28.8
|
)%
|
(26.3
|
)%
|
||||||||||||||||||
Services cost
|
(6.6
|
)%
|
(6.1
|
)%
|
(6.9
|
)%
|
(8.1
|
)%
|
(8.9
|
)%
|
(9.6
|
)%
|
(8.9
|
)%
|
(7.5
|
)%
|
(7.3
|
)%
|
||||||||||||||||||
Total cost
|
(29.6
|
)%
|
(31.7
|
)%
|
(40.7
|
)%
|
(41.8
|
)%
|
(39.6
|
)%
|
(40.1
|
)%
|
(37.1
|
)%
|
(36.3
|
)%
|
(33.6
|
)%
|
||||||||||||||||||
Gross profit
|
70.4
|
%
|
68.3
|
%
|
59.3
|
%
|
58.2
|
%
|
60.4
|
%
|
59.9
|
%
|
62.9
|
%
|
63.7
|
%
|
66.4
|
%
|
||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||||||||||
General and administrative
|
(9.5
|
)%
|
(12.1
|
)%
|
(17.6
|
)%
|
(27.9
|
)%
|
(25.3
|
)%
|
(31.2
|
)%
|
(18.6
|
)%
|
(19.9
|
)%
|
(19.2
|
)%
|
||||||||||||||||||
Sales and marketing
|
(21.2
|
)%
|
(19.0
|
)%
|
(25.7
|
)%
|
(42.6
|
)%
|
(50.9
|
)%
|
(60.7
|
)%
|
(47.0
|
)%
|
(51.6
|
)%
|
(55.1
|
)%
|
||||||||||||||||||
Research and development
|
(14.4
|
)%
|
(16.3
|
)%
|
(23.5
|
)%
|
(32.5
|
)%
|
(34.6
|
)%
|
(44.5
|
)%
|
(32.1
|
)%
|
(40.1
|
)%
|
(39.8
|
)%
|
||||||||||||||||||
Other income (losses)
|
(1.0
|
)%
|
(1.0
|
)%
|
0.4
|
%
|
(1.7
|
)%
|
(2.8
|
)%
|
0.0
|
%
|
(0.6
|
)%
|
0.0
|
%
|
(1.2
|
)%
|
||||||||||||||||||
Income (loss) from operation
|
24.3
|
%
|
19.9
|
%
|
(7.1
|
)%
|
(46.4
|
)%
|
(53.1
|
)%
|
(76.5
|
)%
|
(35.4
|
)%
|
(48.1
|
)%
|
(48.9
|
)%
|
||||||||||||||||||
Financial result
|
6.2
|
%
|
(2.1
|
)%
|
(4.6
|
)%
|
(5.2
|
)%
|
(4.4
|
)%
|
(1.8
|
)%
|
(3.7
|
)%
|
(13.5
|
)%
|
(14.0
|
)%
|
||||||||||||||||||
Equity results
|
0.0
|
%
|
0.1
|
%
|
0.2
|
%
|
0.4
|
%
|
0.5
|
%
|
0.5
|
%
|
0.5
|
%
|
0.6
|
%
|
0.7
|
%
|
||||||||||||||||||
Income (loss) before income tax
|
30.5
|
%
|
17.9
|
%
|
(11.5
|
)%
|
(51.3
|
)%
|
(57.0
|
)%
|
(77.7
|
)%
|
(38.6
|
)%
|
(61.1
|
)%
|
(62.2
|
)%
|
||||||||||||||||||
Income tax
|
(8.1
|
)%
|
(7.2
|
)%
|
(3.2
|
)%
|
3.2
|
%
|
6.9
|
%
|
8.8
|
%
|
10.0
|
%
|
6.1
|
%
|
6.8
|
%
|
||||||||||||||||||
Net loss for the period
|
22.4
|
%
|
10.8
|
%
|
(14.7
|
)%
|
(48.1
|
)%
|
(50.1
|
)%
|
(68.9
|
)%
|
(28.6
|
)%
|
(55.0
|
)%
|
(55.5
|
)%
|
|
For the Three Months ended
(unaudited)
|
|||||||||||||||||||||||||||||||||||
|
June
30, 2020
|
September
30, 2020
|
December
31, 2020
|
March
31, 2021
|
June
30, 2021
|
September
30, 2021
|
December
31, 2021
|
March
31, 2022
|
June
30, 2022
|
|||||||||||||||||||||||||||
|
(in US$ millions)
|
|||||||||||||||||||||||||||||||||||
Income (loss) from operation
|
6.1
|
5.5
|
(2.1
|
)
|
(12.0
|
)
|
(16.4
|
)
|
(24.4
|
)
|
(13.1
|
)
|
(16.7
|
)
|
(18.9
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Share-based
compensation expense
|
0.4
|
0.6
|
2
|
3.2
|
5.5
|
9.3
|
1.6
|
2.5
|
0.9
|
|||||||||||||||||||||||||||
Amortization of
intangibles related to acquisitions
|
0.2
|
0.1
|
0.2
|
0.3
|
0.5
|
0.5
|
0.7
|
0.5
|
0.5
|
|||||||||||||||||||||||||||
Offering expenses
(“IPO”) (i)
|
-
|
-
|
-
|
-
|
-
|
1.3
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Non-GAAP Income
(Loss) from
Operations
|
6.8
|
6.3
|
0.1
|
(8.5
|
)
|
(10.4
|
)
|
(13.3
|
)
|
(10.9
|
)
|
(13.7
|
)
|
(17.5
|
)
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30, 2022
|
June 30, 2021
|
June 30, 2022
|
June 30, 2021
|
|||||||||||||
(in US$ thousands)
|
||||||||||||||||
Subscription revenue
|
36,649
|
29,652
|
69,230
|
54,310
|
||||||||||||
Services revenue
|
2,065
|
1,217
|
4,151
|
2,483
|
||||||||||||
Total revenue
|
38,714
|
30,869
|
73,381
|
56,793
|
||||||||||||
Subscription cost (1)
|
(10,166
|
)
|
(9,461
|
)
|
(20,162
|
)
|
(18,176
|
)
|
||||||||
Services cost (1)
|
(2,842
|
)
|
(2,757
|
)
|
(5,449
|
)
|
(4,865
|
)
|
||||||||
Total cost
|
(13,008
|
)
|
(12,218
|
)
|
(25,611
|
)
|
(23,041
|
)
|
||||||||
Gross profit
|
25,706
|
18,651
|
47,770
|
33,752
|
||||||||||||
Operating expenses
|
||||||||||||||||
General and administrative (1)
|
(7,431
|
)
|
(7,806
|
)
|
(14,352
|
)
|
(15,029
|
)
|
||||||||
Sales and marketing (1)
|
(21,318
|
)
|
(15,697
|
)
|
(39,218
|
)
|
(26,732
|
)
|
||||||||
Research and development (1)
|
(15,409
|
)
|
(10,669
|
)
|
(29,334
|
)
|
(19,092
|
)
|
||||||||
Other losses
|
(474
|
)
|
(868
|
)
|
(465
|
)
|
(1,317
|
)
|
||||||||
Loss from operation
|
(18,926
|
)
|
(16,389
|
)
|
(35,599
|
)
|
(28,418
|
)
|
||||||||
Financial result
|
(5,426
|
)
|
(1,354
|
)
|
(10,147
|
)
|
(2,709
|
)
|
||||||||
Equity results
|
268
|
139
|
487
|
235
|
||||||||||||
Loss before income tax
|
(24,084
|
)
|
(17,604
|
)
|
(45,259
|
)
|
(30,892
|
)
|
||||||||
Income tax
|
2,619
|
2,135
|
4,704
|
2,962
|
||||||||||||
Net loss for the period
|
(21,465
|
)
|
(15,469
|
)
|
(40,555
|
)
|
(27,930
|
)
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30, 2022
|
June 30, 2021
|
June 30, 2022
|
June 30, 2021
|
|||||||||||||
(in US$ thousands)
|
||||||||||||||||
Subscription cost
|
80
|
205
|
167
|
313
|
||||||||||||
Services cost
|
(6
|
)
|
136
|
20
|
169
|
|||||||||||
General and administrative
|
639
|
1,907
|
1,628
|
3,080
|
||||||||||||
Sales and marketing
|
(247
|
)
|
1,586
|
482
|
2,315
|
|||||||||||
Research and development
|
458
|
1,664
|
1,101
|
2,780
|
||||||||||||
Total
|
924
|
5,498
|
3,398
|
8,657
|
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
(in US$ thousands,
except percentages)
|
June 30,
2022
|
June 30,
2021
|
Variation
|
June 30,
2022
|
June 30,
2021
|
Variation
|
||||||||||||||||||
Subscription revenue
|
36,649
|
29,652
|
23.6
|
%
|
69,230
|
54,310
|
27.5
|
%
|
||||||||||||||||
Services revenue
|
2,065
|
1,217
|
69.7
|
%
|
4,151
|
2,483
|
67.2
|
%
|
||||||||||||||||
Total revenue
|
38,714
|
30,869
|
25.4
|
%
|
73,381
|
56,793
|
29.2
|
%
|
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
(in US$ thousands,
except percentages)
|
June 30,
2022
|
June 30,
2021
|
Variation
|
June 30,
2022
|
June 30,
2021
|
Variation
|
||||||||||||||||||
Subscription cost
|
(10,166
|
)
|
(9,461
|
)
|
7.5
|
%
|
(20,162
|
)
|
(18,176
|
)
|
10.9
|
%
|
||||||||||||
Services cost
|
(2,842
|
)
|
(2,757
|
)
|
3.1
|
%
|
(5,449
|
)
|
(4,865
|
)
|
12.0
|
%
|
||||||||||||
Total cost
|
(13,008
|
)
|
(12,218
|
)
|
6.5
|
%
|
(25,611
|
)
|
(23,041
|
)
|
11.2
|
%
|
Three months ended
|
Six months ended
|
|||||||||
(in US$ thousands, except
percentages)
|
June 30,
2022
|
June 30,
2021
|
Variation
|
June 30,
2022
|
June 30,
2021
|
Variation
|
||||
General and administrative
|
(7,431)
|
(7,806)
|
(4.8)%
|
(14,352)
|
(15,029)
|
(4.5)%
|
||||
Percentage of total revenue
|
19.2%
|
25.3%
|
-
|
19.6%
|
26.5%
|
- |
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
(in US$ thousands, except
percentages)
|
June 30,
2022 |
June 30,
2021
|
Variation
|
June 30,
2022
|
June 30,
2021
|
Variation
|
||||||||||||||||||
Sales and marketing
|
(21,318
|
)
|
(15,697
|
)
|
35.8
|
%
|
(39,218
|
)
|
(26,732
|
)
|
46.7
|
%
|
||||||||||||
Percentage of total revenue
|
55.1
|
%
|
50.9
|
%
|
-
|
53.4
|
%
|
47.1
|
%
|
-
|
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
(in US$ thousands, except
percentages)
|
June 30,
2022
|
June 30,
2021
|
Variation
|
June 30,
2022
|
June 30,
2021
|
Variation
|
||||||||||||||||||
Research and development
|
(15,409
|
)
|
(10,669
|
)
|
44.4
|
%
|
29,334
|
19,092
|
53.6
|
%
|
||||||||||||||
Percentage of total revenue
|
39.8
|
%
|
34.6
|
%
|
-
|
40.0
|
%
|
33.6
|
%
|
- |
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
June 30, 2022
|
June 30, 2021
|
Variation
|
June 30, 2022
|
June 30, 2021
|
Variation
|
|||||||||||||||||||
(in US$ thousands, except
percentages)
|
||||||||||||||||||||||||
Financial income
|
4,696
|
2,136
|
119.9
|
%
|
8,988
|
2,548
|
252.7
|
%
|
||||||||||||||||
Financial expense
|
(10,122
|
)
|
(3,490
|
)
|
190.0
|
%
|
(19,135
|
)
|
(5,257
|
)
|
264.0
|
%
|
||||||||||||
Financial result
|
(5,426
|
)
|
(1,354
|
)
|
300.7
|
%
|
(10,147
|
)
|
(2,709
|
)
|
274.6
|
%
|
As at June 30, 2022
(unaudited)
|
||||||||||||||||
Amortized Cost
|
Gross unrealized
gain
|
Gross unrealized
loss
|
Fair Value
|
|||||||||||||
Short-term investments
|
232,468
|
253
|
(7,608
|
)
|
225,113
|
|||||||||||
As at December 31, 2021
(unaudited)
|
||||||||||||||||
Amortized Cost
|
Gross unrealized
gain
|
Gross unrealized
loss
|
Fair Value
|
|||||||||||||
Short-term investments
|
176,774
|
540
|
(124
|
)
|
177,191
|
For the six months ended
|
||||||||
(in US$ thousands, except percentages)
|
June 30, 2022
|
June 30, 2021
|
||||||
Net cash used in operating activities
|
(28,622
|
)
|
(21,616
|
)
|
||||
Net cash used in investing activities
|
(59,169
|
)
|
(1,814
|
)
|
||||
Net cash used in financing activities
|
(3,186
|
)
|
(10,950
|
)
|
||||
Net decrease in cash and cash equivalents
|
(90,977
|
)
|
(34,380
|
)
|
●
|
(1) an increase in net loss to US$40.6 million for the six months ended June 30, 2022, compared to a net loss of US$27.9 million for the six months ended June 30, 2021,
primarily due to the expansion of our workforce; and (2) working capital adjustments which consisted mainly of an increase in accounts payable and accrual expenses in the amount of US$1.1 million for the six months ended June 30, 2022,
compared to an increase of US$9.4 million for the six months ended June 30, 2021, and a decrease in deferred revenue in the amount of US$1.5 million for the six months ended June 30, 2022, compared to an increase of US$6.9 million for the
six months ended June 30, 2021. This was partially offset by:
|
●
|
(1) a fair value gain of US$8.0 million for the six months ended June 30, 2022, compared to a loss of US$0.1 million for the six months ended June 30, 2021; and (2) working
capital adjustments which consisted mainly of a decrease in accounts receivable in the amount of US$2.0 million for the six months ended June 30, 2022, compared to an increase of US$6.6 million for the six months ended June 30, 2021, and a
decrease in prepaid expenses in the amount of US$3.2 million for the six months ended June 30, 2022, compared to an increase of US$2.4 million for the six months ended June 30, 2021.
|
Transaction
|
Interest rate risk (i)
|
Book value
|
||||
|
(in millions of US$)
|
|||||
Loans and financing
|
CDI and TJLP
|
2,396
|
||||
Accounts payable from acquisition of subsidiaries
|
CDI
|
1,552
|
|
VTEX
|
|
|
|
|
|
|
|
By: /s/ André Spolidoro Ferreira Gomes
|
|
|
|
Name: André Spolidoro Ferreira Gomes
|
|
Title: Chief Financial Officer
|