VTEX

Hello everyone and welcome to Vitex earnings conference call for the first quarter of 2025. I'm Julia Vara-Fernandez, VP of investor relations. Joining me today are Gerardo Colas Jr., our co-founder and co-CEO, and Ricardo Camata Sodré, our chief financial officer. Also joining us for the Q&A session are Mariana Gubilla de Faria, co-founder and co-CEO, and Andres Polidoro, chief strategy officer. Before we begin, please note that today's remarks may include forward-looking statements. These statements are based on our current assumptions and projections, and actual results might differ. Additional information regarding risks and certainties is detailed in our Form 20-F for the year end of December 31, 2024, and other filings with the SEC. All of which are available on our investor relations website. During this call, we may also reference certain non-GAAP financial measures. Reconciliation to the most comparable GAAP figures can be found in our Q1 2025 earnings press release, also available on our investor relations website. With that, let me turn the call over to Gerardo. Gerardo, the floor is yours.

Thank you, Julia. Welcome everyone, and thanks for joining our first quarter 2025 earnings conference call. We delivered a solid start to the year despite the ongoing macroeconomic volatility. Subscription revenue grew 15% in FX neutral in the first quarter. As we look ahead, the recent growth lives of key enterprise customers, combined with the continued progress in our product innovation and platform expansion initiatives, reinforce our confidence in the sustainability of our profitable growth strategy. In the seasonally softer quarter, we also delivered profitable growth and significant margin expansion. Our gross profit reached $41 million, a 22% growth in FX neutral, and .7% percentage points margin increase year over year. Additionally, our non-GAAP operating income increased to $5.3 million, a 85% growth and .2% percentage points margin increase year over year. This strong operating income was supported by even stronger free cash flow generation of $6.6 million. Finally, our non-GAAP net income reached $5.3 million in the first quarter and $34.5 million over the last 12 months. I'll let Ricardo further expand on this financial shortly. Vitex continues to solidify its position as the platform of choice for global CIOs and CEOs, seeking operational efficiency and commercial agility. Enterprises choose Vitex for more than software, but for outcomes, accelerate the time to market, increase in revenue, improve margin, and reduce complexity. Looking ahead, we're building a future for Vitex that goes even beyond that, a future where Vitex intelligent agents evolve into digital workers, autonomously managing core workflows across service, demand generation, and merchandising for our customers. We're not just adapting to the future of commerce, we're building it. Now, let me highlight a few commercial achievements of the quarter. In the first quarter, we've successfully brought several new customers live, including Magazine and LG in Argentina, Americanas Apoio e Entrega, Moda Colmeia, Oscar Calçados, and Urban Performance in Brazil, LS10 in Colombia, AutoCash in Ecuador, La Sirela in Spain, Perel in Procarga in Mexico, and GS1 US and GW Bepler in the US. We also strengthen relationships with existing customers. Vermont launched the new vertical, Vermont Pharma, now operating two stores in Brazil. Colgate launched a new store in Germany, expanding its Vitex presence across the Americas and Europe. Crocs launched the new store in Chile, now present in five Latin American markets with Vitex. Hurst launched Oprah Daily Shop in the US, expanding its Vitex presence to six stores. Levi's added Colombia, now present in six Latin American markets. And Mondelez launched the new B2B store in Spain and in Ecuador, expanding its Vitex footprint into Europe. Another note worth developing this quarter, though not yet large, is that Manchester City Football Club has joined the Vitex platform. The club is currently implementing Vitex as the foundation of its official digital commerce strategy. We're supporting Manchester City in reimagining and streamlining its digital commerce experiences to deliver a seamless and intuitive journey for fans. This initiative will enable supporters to access purchase CT-related experiences through a unified and efficient checkout process, whether online or via mobile. To build our own momentum in contract signatures and reinforce brand trust, we launched the Give You All campaign, featuring cricket icon Javinder Cadeja as the Vitex ambassador. The campaign resonated strongly with CEOs and CTOs in the US, who have approximately half affinity for CUSC cricket, helping us connect with an influential and professionally relevant audience. We also hosted the second edition of Vitex Connect in New York City, our flagship event for senior commerce executives held immediately following NIR. This year, we expanded the event scope and quality, welcoming CEOs, CIOs, and senior executives from leading retailers. Simone Biles delivered the keynote fireside chat, joined by Brazilian gymnastics champion, Rebecca Andrade. The event showcased our leadership in digital commerce and strengthened our relationship with partners and decision makers. In addition to its increasing impact, the event was executed with greater cost efficiency, supported by over 14 sponsors. Vitex Connect New York served as a strategic platform to deepen relationship with our partners and has Vitex visibility among top industry stakeholders and engage directly with key decision makers within the NRF office. By gathering the industry's most influential voices and integrating global recognizing figures, we continue to elevate Vitex's position at the forefront of digital commerce transformation. We are also proud to share that Vitex was once again recognized as a customer choice in the 2025 Garter Voice of Customers for Digital Commerce report for the second year in a row. This recognition is especially meaningful because it is based entirely on our customers' review, underscoring our platform's impact and reliability. This recognition based solely on real customer reviews highlight our ability to deliver exceptional product capability, ease of use, reliable support, and measurable business impact. In the landscape, we're choosing the right commerce partners. It's mission critical. Being named customer choice for the second year in a row reinforces Vitex's position as the trusted, scalable, and innovation-driven platform of choice for global enterprises. Before moving on to our customer success stories, I'd like to revisit the concept that I introduced earlier. Vitex is evolving from a single platform into a comprehensive suite of commerce products designed with serious interoperability at its core. This transformation underpins our positioning as the commerce suite of choice for both CIOs and B2B commerce and retail media. In the first quarter of 2025, we accelerated our retail media strategy with the acquisition of New Tail, a leading Brazil retail advertising space. This added over 400 advertisers and brands to our network, including Casas Bahia, Pavell, Caboom, and Leroy Borey, and positioned Vitex as a leading -to-end retail media platform. With Vitex ads, we now offer a unified high-performance solution that combines our composable commerce infrastructure with New Tail's media innovation. Advertisers gain access to hyper-target inventory, detailed performance insights, and intelligent placements, enabling smarter targeting and stronger returns across the full commerce journey. We're building the next generation of scalable data-driven retail media, and we're here to lead and consolidate the space. With that said, let's go into a couple of customer stories to put in a tangible way how we are working side by side with our customers to get meaningful business impact. Americanas, one of Brazil's most iconic and influential retail giants, chose Vitex to simplify operations and drive efficiency with innovative solutions, replacing some of the in-house development systems. Through Vitex, -the-box features and collaborations with specialized partners, we delivered a comprehensive customer solution tailored to Americanas' needs. This included robust omnichannel capabilities, marketplace integrations, and advertising tools. The solution streamlined processes, accelerated time to market, and significantly lowered the total cost of ownership. In addition to Vitex native capabilities, Americanas is also leveraging the strength of the Vitex ecosystem by integrating partner solutions, replacing certain legacy systems with more scalable alternatives. Following a detailed system analysis and close collaboration, we co-designed and streamlined future-ready architecture that enhances operation efficiency, supports rapid scalability, and aligns seamlessly with Americanas' long-term strategic objectives. The Americanas wing underscored the continued depth of opportunity within Brazil, a market where Vitex already had a strong presence,

yet

still holds significant runaways for growth. It demonstrates that even in more developed geographies, there are remaining sizable, high-impact digital transformation opportunities for us to capture over the coming years. A leading frozen food retailer in Spain partnered with Vitex to modernize its digital commerce and bridge the gap between its physical stores and online presence. Taking greater flexibility, and the brand chose Vitex for its ability to manage complex catalogs and store-level logistics with ease. Vitex also enabled smooth integration with the customer's new loyalty program, creating a more intuitive and personalized customer journey. With marketplace capabilities and omnichannel features now fully implemented, they are delivering a seamless, connected shopping experience across every touchpoint. SanCosur, one of Latin America's largest retail groups, transformed its post-purchase experience in Brazil by implementing WANI by Vitex to automate -of-stock products to be nutritious via WhatsApp. Initially, launched with Presumique and Vitex, the solution enables real-time customer approval and delivers a 9% increase in the average order value of impacted orders. By streamlining communication and driving operational efficiency, SanCosur is delivering a smarter, more scalable digital experience across its spreads. I'm also pleased to highlight the significant customer success that demonstrates the versatility and power of our platform. TW Pepper, one of the leading sheet music retailers in the U.S., has successfully transformed its digital commerce operation with Vitex. Facing industry-specific challenges such as complex product discovery and event-use and shopping, the company leveraged Vitex Composable Architecture and native headless CMS to build tailored experiences for educators and worship leaders. This empowered their business teams to accelerate content updates and reduce reliance on developing resources. Rather than a full rebuild, we adopted a strategic approach, retaining critical legacy workflows while modernizing the core commerce journey through target integrations and specialized tools for digital licensing, personalization, and complex checkout flows. Today, JW Pepper operates on a flexible, scalable platform that supports a diverse customer base and adapts easily to seasonal demand patterns. This case underscores our ability to deliver impactful digital transformation and specialize in high-complexity industry while preserving business continuity and maximizing ROI. Nestle, one of the world's largest food and beverage beverages companies, drove strong results with Vitex ads to power retail media campaigns across key partners' channels. Confronted with limited visibility into retail sales performance, Nestle turned to Vitex ads for real-time insights directly from retailer products. This data-driven approach enabled rapid campaign optimization and stronger performance across categories. In its latest major campaign, Nestle achieved a .2% return on ad spend in the chocolate category. Beyond immediate impact, the initiatives unlocked valuable strategic insights for future activations. With Vitex ads, Nestle streamlined collaboration with retail buttons and showcased how real-time data can drive smarter decisions and stronger outcome in a highly competitive market. Procarga, a leading distributor and manufacturer of lifting solutions in Mexico, selected G-Tex to accelerate its digital transformations. Aiming to enhance the buying experience for B2B distributors and expand into B2C, the company is adopting a dual-channel strategy powered by Vitex. The new solution, built on Vitex's composable architecture, delivers a modern self-service, colorless experience focused on efficiency and scalability. It features custom UX UI, ERP integrations, and mobile-ready access, ensuring a seamless journey across all channels. These initiatives marked a strategic move for Procarga, strengthening customer engagement and driving growth across Mexico's industrial retail markets. Now, I'd like to take a moment to express my gratitude to our 1,320 Vitex team members, whose extraordinary contributions propelled us forward as the backbone for connected commerce. I'd also like to thank our valued customers, partners, and investors. I will now hand the call to Ricardo.

Thank you, Geraldo. Hi, everyone. I'm pleased to share Vitex's Q1 2025 financial results. Before diving into the numbers, as a reminder, this is our first quarter reporting under USGAP. We published a reconciliation presentation in a Form 6K on April 15, and a comparison of 2023 and 2024 financials under USGAP is available on our investor relations website. With that said, let's go to our quarterly numbers. GMV for the quarter reached $4.3 billion, growing 8% E over E in US dollars and 17% on an FX neutral basis. This led to subscription revenue reaching $52.6 million, compared to $50.4 million in Q1 of last year, a 4% increase in US dollars, and 15% on an FX neutral basis. Now, moving down the P&L, we are pleased to announce the positive operational leverage achieved, even with the inherently softer seasonality observed in all quarters. Our non-GAP subscription gross margin reached 79% this quarter, up 191 basis points E over E from 77% in Q1 2024. This expansion reflects our continued focus on operational efficiency, with the most notable gains coming from customer support optimization efforts. Leveraging AI power automation, we were able to improve service quality while significantly reducing support related costs. Our total gross margin, which includes services, rose to 76%, up 371 basis points E over year compared to 72% in Q1 2024. Our total gross margin improvement was mostly driven by the lower mix of services revenue in our total revenue, as we are relying more on our ecosystem to provide implementation services, and by the subscription gross margin gains I just mentioned. On the expense side, we maintain strong discipline. Non-GAP operating expenses came in at $35.9 million, slightly up from $35.2 million in the same quarter last year, an increase of less than 2% E over year. This reflects stable sales and marketing and G&A expenses, while the increase in R&D was strategic, supporting our continuing investment in product development and innovation. This disciplined approach led to a significant improvement in profitability, with Non-GAP operating income reaching $5.3 million in Q1 2025, up from $2.9 million in Q1 2024, an increase of over 80% E over year in US dollars. This translates into a 4% point margin expansion, bringing our Non-GAP income margin to 10% for the quarter. These results highlight the strength of our operating model and the consistent evolution of our financial profile. As we evolve on our profitability growth strategy, Non-GAP net income has become an increasingly relevant metric. In Q1 2025, Non-GAP net income reached $5.3 million and 10% margin, up from $2.4 million in the same period last year, more than doubling E over year and a .2% improvement in margin. As mentioned by Geraldo, on a trading 12-month basis, Non-GAP net income totaled $34.5 million, reflecting the ongoing strengthening of our profitability profile as we continue executing with discipline and scaling efficiently. Aligned with our Non-GAP operating income, as of the three months ended March 31, 2025, we had a positive $6.6 million free cash flow compared to $1.6 million free cash flow in the same quarter of the prior year, reaching a free cash flow margin of 12% and a 9% margin improvement E over year. In the first quarter of 2025, regarding the one-year share repurchase program authorized by our Board of Directors on December 3, 2024, DTEK's repurchased total of $2.7 million Class A common shares at an average price of $5.56 per share, representing an aggregate amount of $15 million. Considering the current and the previous year's share repurchase programs, the total executed amounted to $15.2 million shares with an average price of $4.86 dollars per share and a total cost of $74.3 million. As we move forward with our business outlook, we continue to navigate a macroeconomic environment market by volatility in the same-source sales and GMV growth, increasing the uncertainty of projection. That said, we remain confident in DTEK's profitable growth trajectory. DTEK is well positioned to capture an attractive market opportunity, and we remain encouraged by our leading market positioning, platform expansion, and operational leverage. Considering these, we are currently targeting Aftract Neutral E over year subscription revenue growth of 12.5 to .5% for the second quarter of 2025, implying a $257.0 to $58.5 million range. For the full year 2025, as we continue executing our profitable growth strategy, we continue to target FX Neutral E over year subscription revenue growth of 14.0 to 17.0%, implying a range of $238 to $244 million based on the average of April FX rate. We are targeting non-GAAP operating income and free cash flow margins of meeting. To wrap up, in Q1, we deliver solid subscription revenue growth. As indicated by our guidance, we remain confident in the strength and sustainability of our profitable growth strategy in Q2 and for the full year 2025, supported by the new enterprise customer's goal eyes and our ongoing platform expansion. We will stay focused on discipline execution, leveraging our strong fundamentals and resilient business model as we continue to gain global traction as a backbone for connected commerce. We remain committed to delivering lasting value for our customers, partners, and shareholders. With that, let's open it up for questions now. Thank you.

Thank you. We will now begin the question and answer session. If you have dialed in and would ask a question, please press star one on your telephone keypad to raise your hand and join the queue. We'll take our first question from Marcelo Santos at JP Morgan. And Mr. Santos, your line is open. You may have yourself muted.

Sorry, I was muted. Thank you for taking my questions. I have actually two. The first is if you could comment a bit on subscription gross profit. You almost touched the target model of 79%, close to the 80% in a seasonally weak quarter. It is a sustainable gain going forward and what are the main sources of the gain? And the second question is regarding headcount reduction. What are the main areas that are seeing headcount reduction at the company? Thank you.

Hi, Marcelo. Ricardo Sodre here. Thanks for the question. So on gross margin, we are pleased with the continued progress in our margin profile this quarter. In Q1 2025, as you mentioned, we deliver 190 basis point improvement in subscription gross margin and 370 basis point improvement in the overall gross margin on a -over-year basis. These gains are particularly meaningful given the seasonality that's softer and maturing the first quarter, making the expansion both sequentially and -over-year a strong validation of the scalability and the resilience of our business model. These performance reflects discipline execution on multiple fronts. A key driver has been the optimization of our customer support operations, as mentioned in the prepared remarks, where we are seeing tangible benefits from the strategic use of AI. These enhancements are allowing us to both elevate service quality and materially reduce support related costs, delivering a meaningful impact on gross margin. Another important contributor is the continued maturity of our global ecosystem of system integrator partners. As our partner network scales and becomes more autonomous, we are increasingly shifting implementation services to these third parties. This is a strategic priority and we've been advancing over several quarters and it not only supports margin expansion on a total gross margin, not on a subscription gross margin, but on a total gross margin. It also reinforces our asset-wide highly scalable operating model. On getting closer to the target, we just posted 79% subscription gross margin. The target is 80%. We are going towards and approaching this target, but not yet there. Our margin expansion reflects the successful execution of our long-term discipline strategy. We remain focused on further strengthening our profitability profile while delivering value to our customers. If you could repeat the second question,

please. The second was about headcount reduction. There was a sequential headcount reduction of .5% if I'm not mistaken. I just wanted to know what are the main areas that are seeing this headcount cut?

I can address here, Mariano here. Actually, we see stability on the headcount, very, very like small changes. The only kind of a meaningful change was in support area, but this is not like a trend. We see stability on headcount.

Okay. Thank you very much.

We'll go next to Maria Infantazzo at ETOW. Maria, your line is open. Please go ahead. And you may have yourself muted. Hearing no response, we'll move next to Luca Brendam at Bank of America.

Hi. Good afternoon, everyone. Thank you for taking my questions. I have two here on my side. The first one, in terms of the cost and expenses, we saw a significant increase in R&D, and I wanted to understand if there are specific new projects or a reason for this increase, or if it's according to what was already expected for the company. And also, on second, if you could give us an update on the expansion for the US, if you're seeing any differences, or if you're continuing to see the same momentum we were having previously. Thank you.

Hello. Hello. Thank you. I'll get the first one. If Mariano wants to get to the second one, I'll move to him the microphone. So about our R&D expense increase, and in the first quarter of 2025, our long-gap R&D expenses increased by .3% Euro per year, consistent with our stated strategy to invest in what we see as the greatest long-term differentiator, the product. This increase reflects our deliberate commitment to deepen and broaden our commerce platform. We continue to invest in expanding the Daff and completeness of our product suite, reinforcing our competitive advantage, both in B2C, but most recently B2B as well, and support the scalable growth across multiple geographies that you can see, and multiple customer segments. And as we shared in prior quarters, we've been helping out high in a measured and disciplined way, aligned with our product roadmap and strategic priorities. So this quarter growth also reflects a normalization high activity, following periods of slower onboarding cycles, as well as the continued advancements of critical innovation initiatives. So R&D remains central to our ability to win and retain enterprise customers, and also to unlock new cross-sell and upsell opportunities through products like the one that I mentioned, B2B, Vitex ads, and others. So it's not only necessary, but it's strategic. Beyond that, like every other company, this and software company in the world, we are investing highly in changing the way we design software, we build software with AI. And this is only changing the way we design and build software internally, but it will change, and it's changing the way we interface with our customers, with interface with our partners, and also it also informs the services and products that we will deliver in the near future. All of this requires a disciplined but extensive investment in R&D.

I can answer about the US sales. The sales motion is evolving in line with our expectation and with our long-term strategy. So we are focusing on lending and expanding high value enterprise customers, building durable relationships and delivering innovation that really drives measurable business impact. So we have a few high impact signed logos that will be announced through the year, which we believe will further enrich the Vitex narrative and strengthen market perception. Wings like Manchester City Football Club now under implementation highlight the global relevance and scalability of the Vitex platform. These customers are not only large in GMV potential, many ranges hundreds of millions and even billions of dollars, but they also demonstrate our growing ability to serve as a strategic partner in complex and high stakes. So not a significant change, just a growing momentum in our brand in the deals that are being deployed.

Very clear. Thank you for the answers.

We'll go next to Leonardo Olmos at UBS.

Hi, good night everyone. So we've got a couple questions. So first, the micro situation in the US with the tariffs, if you could discuss a little bit what's the sentiment with the companies you discuss, how they're feeling about their IT budgets and their willingness to prioritize front end type of solutions or back end or cloud migration. So how are you pitching to clients in this context? I think I'll give to this question. Thank you.

Hi Leo, thanks. So speaking about macro more broadly and then we can talk about the US and tariffs. So we see Vitex well positioned to drive the evolving global trade landscape despite the shifting trade tariffs, currency fluctuations and supply chain realignments. If you look at our robust performance in Q1, highlighted by the 17% growth, fuel-varying and effect neutral on the GMV side and a healthy subscription revenue growth of 15%, it underscores Vitex resilience and adaptability during this dynamic market condition. The current macroeconomic environment has prompted many enterprises to reassess their supply chains and seek more agile cost-effective solutions. Although these increase and create volatility and impacts that are hard to predict and forecast, so far Latin America has been less impacted than other regions. Historically, challenging economic periods prompt enterprises to reassess their technology infrastructure, emphasizing cost-efficiency, flexibility and rapid time to market. Vitex commerce platform is uniquely positioned to meet these demands, offering a comprehensive solution that supports operational agility and resilience. With this context in mind, we are pleased with Q1 performance, particularly in the context of ongoing macroeconomic volatility. Our results came in the top of the subscription revenue guidance range, with margins improving significantly, reflecting consistent execution across the business and aligning with the expectations we outlined last quarter. When we issue our outlook, we also took a balanced view, factoring in persistent consumption headwinds alongside the operational momentum we are seeing across the company. That balance perspective remains intact. Having said that, if we look at April, since there has been more movements in this macroeconomic front in April, April has exhibited increased volatility with stronger performance in the first half, followed by a softer second half. The shifting Easter seasonality from Q1 last year to Q2 this year has made it more difficult to extrapolate underlying trends, adding uncertainty around the timing of customer goal lives and the trajectory of consumption. Against this backdrop, we are maintaining our full-year guidance range. While Q1 results were solid on the top of the guidance, we believe it's prudent to keep our outlook unchanged, given the evolving conditions observed early in Q2. Regarding Q2 guidance, we are maintaining the same midpoint of 14%. We issued four Q1 guidance. The slightly wider range of three percentage points for Q2 versus two percentage points previously for Q1 reflects increased uncertainty from this heightened global market volatility and less visibility into future GMV performance. If we were to adjust for the Easter calendar shift, which fell in Q1 last year and Q2 this year, the underlying trends suggest both quarters, Q1 and Q2, would reflect a similar growth profile, reinforcing the stability of our underlying performance. More specific on the US and tariff impacts, we have a small market share in the US. We are less exposed to these macroeconomic movements. It's more micro story than a macro story, but we remain very close in observing these shifts and we continue to focus on what we can control, meaning adding value to our existing customers by helping them accelerate their sales efficiency, attracting new customers, and continue to evolve with product innovation and platform expansion initiatives, while keeping a disciplined approach to cost and expenses.

Thank you, Soudra. Glad I stayed with just one question. Very, very good answer. Have a good night.

Thank you,

all. We'll move next to Maria Clara Infantozzi at ETAL.

Hey, guys. Can you hear me?

Yes, we can, Maria. Yes.

Great. Thanks for taking my question. I was wondering if you could explore a bit about the subscription revenue build-up, especially for geography and per category. It came above our expectations in the top of the guidance and I was wondering if I could get more color on how the productivity gains of clients in Brazil are evolving and what are your expectations going forward, especially for Brazil as well. Thank you so much.

Great. Hi, Maria. Happy to start yours and others. Feel free to chime in. We don't open up a breakdown by geography or by category on a quarterly basis. We do this on an annual basis, but happy to share some qualitative color. As we mentioned when we publish Q4, talking about guidance for Q1 and for the year, we are taking a more measured approach on the same source sales, given higher interest rates in many geographies and heightened macro volatility. We are working very hard to implement the customers that we signed last year to put them live. These customers have a range of different categories. We mentioned a few customers that went live this quarter, a highlight of Americanas in Brazil. Brazil is helping the growth of the company with these new customers going live. Also, we know US and Europe most of the contribution comes from adding new customers to our platform and increasing our growth. So no relevant highlights or lowlights versus expectations, I would say, that we laid off last quarter.

Great. Thank you. If I could make another question related to the retail media business, can you please comment a bit more on the economics of this business and how it is embedded in the 2025 guidance? Thank you.

Thank you, Maria. The business itself is very unmaterial right now, but we're very confident that we're doing the right things to make a material business inside of the text in the future. The business is connecting our existing customers, let's call it the publishers, to advertisers so they can have a new media to advertise, the media that we call retail media. Retail media is advertising using the first part of data of the publishers, at the motions, at our customers at Vitex. This is a network business, and we're very strong on one side of the network. Because we're strong in one side of the network, we are ramping up very fast the other side of the network, the advertisers. After the acquisition of New Tail, we can say that we have almost 400 advertisers already announcing and doing advertising in our network. This, combined with our hundreds of publishers, can give us a competitive edge and very good positioning to help and to monetize all the inventory that retail can sell to the industry, to the manufacturers, to their suppliers.

Great. Thank you so much for the answers.

That concludes our Q&A session. I will now turn the conference back over to Geraldo Tomaz for closing remarks.

Thank you for the great questions. To close, I want to reiterate the confidence we have in the trajectory we're building at Vitex. We started the year with solid execution, growth, profitability, and free cash flow in a seasonally soft quarter. This performance reflects not just the short-term winds, but the strength of the foundations we've laid over the past year, built on discipline, resiliency, and clear strategic direction. We're gaining meaningful traction across regions, winning and expanding with enterprise customers who choose Vitex not just for technology, but for outcomes, faster time to market, improved margins, and simpler operations, among many other reasons. As we continue to evolve from a platform into a comprehensive color suite, we laid the groundwork for a future shaped by intelligent automation. We're confident that Vitex will remain at the forefront of digital commerce transformation. We're excited by what's ahead. We'll continue to execute with focus, scale with discipline and purpose, and deliver long-term value for our customers, partners, employees, and shareholders. We're just getting started. Thank you again for your time and partnerships. We look forward to speaking with you in our next earnings call. Have a great

week. And that concludes today's conference call. Thank you for your participation. You may now disconnect.