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 Geraldo Tolas 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 uncertainties 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 Geraldo. Geraldo, 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, an 85% growth and .3% percentage points margin increase year over year. The 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 modern software, but for outcomes. Accelerated time to market, increased revenue, improved margins, and reduced 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 and core across service, demand generation, and merchandising for our customers. We're not just adapting to the future of Congress, we're building it. Now, let me highlight a few commercial achievements of the quarter. In the first quarter, we successfully brought several new customers live, including Magazine and LG in Argentina, Americanas, Apoio e Entrega, Moda Comeia, O Skaf Calçados, and Urban Performance in Brazil, LS10 in Colombia, AutoCash in Ecuador, La Sirela in Spain, Perel in Procarga in Mexico, and GS1 in the US, and GW Bepler in the US. We also strengthen relationships with existing customers. Demol launched the new vertical, Demol Farma, now operating two stores in Brazil. Colgate launched the 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 the Oprah Daily Shop in the US, expanding its Vitex presence to six stores. Levi's added Columbia, 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 city 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 Radeja as the Vitex ambassador. The campaign resonated strongly with CEOs and CTOs in the US, where approximately half have 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's 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 NRS office. By gathering the industry's most influential voices and integrating global recognized 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 star 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 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 CEOs globally. We're doubling down on our two high impact product beds, B2B commerce and retail media. In the first quarter of 2025, we accelerated our retail media strategy with the acquisition of New Tail, a leader in Brazil retail advertising space. This added over 400 advertisers and brands to our network, including causes by Ia, Conveil, Caboom and Leroy Borel and positioned Vitex as a leading end to end retail media product. 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, detail 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. Americana is 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, out of the box features and collaborations with specialized partners, we deliver the comprehensive customer solution tailored to Americana's needs. This included robust omnichannel capabilities, marketplace integrations and advertising tools. The solution is streamlined processes, accelerated time to market and significantly lower the total cost of ownership. In addition to Vitex native capabilities, Americana 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 the streamlined future red architecture that enhances operation efficiency, support rapid scalability and align seamlessly with Americana's long term strategic objectives. The Americana's win underscored the continued depth of opportunity within Brazil, a market where Vitex already had a strong presence,

yet