VTEX Q1 2023 Earnings Call
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Okay.
Hello, everyone and welcome to the B picks earnings conference call for the quarter ended March 31st 2020 suites and courtyard Madness Investor Relations Director Therapeutics, our senior secured keeps presenting today are so much when your thunder ankle CEO and you've got to look at Microsoft as Chief Financial Officer. Additionally.
But do you know what I mean, yeah, founder and co CEO and.
Keeps trying to see the officers will be available during today's Q&A session I would like to remind you that management may make forward looking statements.
Matters as continued growth prospects for the company industry trends and product and technology initiatives. These statements are based on currently available information and our current assumptions expectations and projections about future events, while we believe that our worst country stations and projections are reasonable in view of the current available information that question not to place undue reliance on these.
Forward looking statements.
Certain risks and uncertainties are described under risk factors and the forward looking statements sections of <unk> form 20-F for the year ended December 31st 2022, and now there would be tax filings in the U S Security and Exchange Commission, which are available on our Investor Relations website.
I would like to remind you that during the course of this conference call we might discuss some non-GAAP measures a reconciliation of those measures to the nearest comparable GAAP measures can be found you know what first quarter 2023 earnings press release available on our Investor Relations website, now I will turn the call over to get out of it although the floor is yours.
Thank you Juliet welcome everyone and thanks for joining our first quarter 2023 earnings conference call.
Yes first quarter has been promising as we have experienced robust growth and successful implementation of our strategy in all regions.
Fortunately for US It does give me pause issue.
Landscape of Latin America, and enhances our presence globally.
It gives me great pleasure to share with you. The strides we have made establishing good fact is one of the leading worldwide digital commerce platforms.
Despite the persistent challenges presented by the macroeconomic environment, we achieved a strong performance in the first quarter, if gmg growing by 22% year over year, a reflection of the resilient performance of our customers.
Performance of our customers during this period allows us to surpass.
The new projection while at the same time, we delivered quarter over quarter subscription gross margin improvements.
In the first quarter of 2023, we added several new customers, who previously did not have an online store presence in the country. They started operating with us.
These include President.
So the <unk> and <unk>.
<unk> in Chile, and only more athletes in Colombia.
Also added customers that migrated from other platforms. This includes companies that went live in Q1, so check vocal pro Vega and Qunar Whiteboard in Canada easy in Colombia pharma and life in Ecuador.
In Italy, so in their filing Peru slowly.
And cornered up in the U S.
Going back to the first quarter 2023. In addition to attracting new customers. We also focus on strengthening our relationships with existing customers by supporting that expansion efforts.
The first quarter, several premium brands and with tailored chose to expand their operations with us by opening new stores and further integrating with us.
This concludes belcourt, who added the starting Nicaragua currently operating in six countries in Latin America.
Who are the two I think Greg Beecher C stores in Canada operating with US both <unk> and did you see in North America.
Who had the Netherlands currently operating in six countries in Europe .
Who added starting near corridor currently operating in five countries in Latin America.
Not all of who are the starting Singapore currently operating in 20 countries across the globe.
<unk> is now present in four countries, both <unk> and <unk> across the group.
The decision of these brands to expand their operations with US is a testament of the strength of our platform.
It's relevant value proposition and the trust we have built with our customers. We are excited to continue supporting them as they expand their reach into new geographies and leverage the assets of the future stores.
I would like to draw attention to a significant event in the first quarter of 2023, and then ask refuse Big show.
Which brings together the most influential players in the retail industry to set trends and discuss the future of retail.
The event was held in New York City and attracted over 6000 retailers and training 500 unique brands from over 90 countries.
During the event, we position detection as a challenger brand focusing on profitable growth for our customers highlighting our out of the box capabilities and raising awareness. Among participants also during the event, we announced the release of appropriate Terry White paper Tree, Inc.
<unk> to drive e-commerce growth by <unk> analyst.
Analyst in residence GA in June , which I would like to invite you all to take a look at it available at vertex homepage.
In the first quarter, Australia 23, we're excited to announce our partnership with comps Equifax company one of the most well known credit Bureau globally.
This partnership will allow us to offer our customers a word class anti fraud solutions further enhancing the security and reliability of our plasma for.
This partnership will also be monetize it through a profit sharing approach with minimum monthly fee.
Finally, we are pleased to formally announced that we have initiated the monetization process of ICB partner ecosystem.
We have successfully concluded agreements with key players such as in switch Omnichannel 360, Fintech as a service that will help our customers to implement digital financial service quickly and efficiently.
Though we do not foresee a significant contribution to revenue.
The immediate future these partnerships and other initiatives to establish a strong groundwork for monetizing our ecosystem in the long term revenue growth for vertex.
Let me now share with you some such a story of our customers that demonstrate the capabilities of our platform and the remarkable outcomes they have achieved.
I'm thrilled to share Samsung recent success in creating data observed ability operations using the tax value. This project has allowed <unk> to improve its operational efficiency by more intelligently centralizing and integrating information from multiple channels.
Project was initiated just two weeks before black Friday to penetrate you and has produced remarkable results for digital commerce operation in Brazil.
Relying on <unk> backend services, and API, Samsung implemented various solutions, including <unk> in place all the fee or the hook and custom console dashboards also an alert mechanism via telegraph.
The result was a more proactive operation informing decision, making and then enhanced the customer experience with better delivery quality and faster response times.
Six months after implementation Samsung saw a decrease in response time from four hours to 40 minutes.
With this success so assume conscious continues developing innovative launch strategy and automation to improve inventory tracking and predict post purchase flow ensuring peace of mind for themselves to partners and customers.
Overall this project has been a game changer for Telcel and set a new operational excellence standards.
<unk>, a leading telecommunications company in Latin America chose fee tax compostable architecture as the digital commerce blocker from Peru to simplify the current architecture and achieved a fast time to market with our out of the box features.
So the business requirements, including marketplaces.
<unk> one of the Brazil's largest online wide platform selected <unk> to improve its front end capability and ensure a frictionless migration quality subscribers. As a result, Devino now has an internal marketplace and has increased its revenue channels by.
Selling new products, such as wine assessments.
Hi, static where brand operating in Saudi Arabia, and the United Arab Emirate chose <unk> for our hedge less implementation capabilities and flexibility to co two specific product requirements with our platform. They now have a catalog that enable woot language product translations.
And the shipyard dot com payment tool, which provides a better customer experience for the users.
You download Easter a large wholesale supermarket brand in Argentina, customize it to shake out with different payment options with pretax. Furthermore, the customer incorporated a shopping cart roof feature during the checkout process, enabling the implementation of <unk> chasing rules for approving.
Canceling or modifying all languages. This has assisted the consumers in adhering to the requirements necessary for completing the <unk> leading to an increase in conversion rates with this key improvements vitol has increased their orders by more than 140%.
Banco Provincia publicly listed banking, Argentina selected <unk> as the technology partner due to our ability to handle complex architectural requirements, including adding sellers and implementing multiple internal and external integrations with tax previous experience with similar customers.
Such as bulk winter may does a suitable charged for Banco provincia with Vitesse health bulk of rofin to successfully launch at Spotify, becoming a highly successful marketplace in Argentina with a daily record of more than 10000 largest.
Although the journey is ongoing Banco provincia plans to double the number of salads in the Porto and expand the cataloging various industries with the Texas system.
The continued drive to enhance the platform, we will enable our growth and success.
Although asta fruit a grocery chain with wasn't terrible.
And two distribution centers in Brazil chose Zix omni channel strategy to leverage sales opportunities with our features such as shipping from store and pick up in stores or improve the logistics and logistics and customize it the web user experience.
Jeff respect and online pet retailer in the USA.
Operating <unk> modules chose <unk> to strengthen its customer experience and increased sales using our large shopping feature.
Our customers has experienced a significant increase in the conversion rates during live events.
Doubling the average sales volume during the sessions.
I also want to share an update on the CRA, adding a case.
A major Brazilian fashion group with over 800 physical stores recasting the re platform to be tax in only three months.
Focusing the pluses on growth and website performance. The report are forming process provided our customers with a fully customizable storefront faster user experience improve a checkout experience and a first party apps and multiple channels integration.
As a result, the company saw already a 30% increase in the average order value and a 40% decrease in above about donuts cards.
To include the operational update I would like to inform you that our ESG framework has been made available in our investor relation website, highlighting all the initiatives <unk> implemented and supported in this regards with tax.
In leading by example, and driving positive change in the world to ethical and responsible actions.
We see ourselves at agents of transformation in the E Commerce field working towards a more sustainable society.
In our desired future with declare and are committed to become the leader in diversity within the technology sector value the importance of fostering a culture that embraces multiple perspectives and creating a safe and respectable environments for all members of our ecosystem.
I would like to express my gratitude to our 1300 30 nines detects employees, who are dedicated to making our declared future a reality as well as to our customers partners and investors.
Before I turn the call to Ricardo I'm happy to inform you that we will be hosting the <unk> the largest e-commerce event in Latin America and third globally on June kicked in 16, So Paulo I'm excited to invite you to come and experience the <unk> culture and witnessed the strength of our ecosystem.
Magnificent events.
Additionally on June 6th we will be holding a Q&A session for investors, where Martina and I would add to all this question and exchange ideas.
If you are interested in participating on this session contact Julia and she will provide all the details we will be delighted to have him to join us.
I will now hand, the call over to Ricardo to discuss our financial performance for the quarter.
Thank you hi, everyone I am pleased to share the tax Q1, 2023 financial results with you. Despite the challenging macroeconomic environment. Our company's top line performance remained robust as highlighted by Geraldo, Our Q1, <unk> achieved 22% year over year growth in U S dollars and <unk>.
1% on an FX neutral basis, our Q1 revenue exceeded our expectations and surpassed the upper end of our guidance, reaching $42 $3 million and reflecting a year over year growth of 22% U S dollars and 22% on an FX neutral basis.
This outcome clearly demonstrates the resiliency of our blue chip customer base and we are reassured to observe that we have continued to assist our customers in outperforming the market.
Double clicking on our topline our subscription revenue, which is $39 $8 million in the first quarter of 2023 from $32 $6 million in the same quarter last year, a year over year increase of 22% in U S dollars and 22% on an FX neutral basis, our services revenue reached $2 5 million and the <unk>.
First quarter of 2023 from $2 1 million in the same quarter last year, a year over year increase of 21% in U S dollars and 28% on an FX neutral.
Even with seasonality being a headwind this quarter, our subscription gross margin was slightly better than last quarters.
Our non-GAAP subscription gross profit was $29 4 million compared to $22 7 million in the first quarter of 2022.
non-GAAP subscription gross margin was 73, 9% in the first quarter of 2023 compared to 73, 5% in the last quarter and 69, 6% in the same quarter of 2022.
The 430 basis points year over year margin expansion shows the commitment of our team to keep improving our margins.
This margin improvement was driven mainly by the migration of noncore services to more efficient hosting providers and the optimization and operational leverage of our support cost we have more than proud of what we have achieved in this front and we are excited about what is to come.
We delivered a year over year improvement of 190 basis points on our overall gross margin in Q1.
We are working on a few implementations in the U S and Europe , where we have proactively invested on our services offering to ensure successful go lives.
By design this impacted our services gross margin and therefore, our overall gross margin experienced a slightly decline quarter over quarter.
While this commercial decision may have a small impact on our gross margin in the short term it will position us better in newer regions in the medium to long term, enabling us to implement new customers is mostly and successfully.
Our non-GAAP total operating expenses reached $31 9 million in the first quarter of 2023 from $29 1 million in the prior quarter and $35 9 million in the same period last year.
The year over year improvement reflects the organization restructuring we made over the past couple of quarters.
As a result of the better than expected margin improvements with the top line coming at a robust pace. Our non-GAAP operating income improved from a negative 39, 5% margin in the same quarter last year to a negative nine 7% margin in first quarter 2023. This represents 30 <unk>.
<unk> points improvement year over year.
As of the three months ended March 31, 2023, <unk> had a negative five points euro million dollars free cash flow compared to a positive $2 5 million in the prior quarter and a negative $16 1 million free cash flow in the first quarter of 2022.
Before I move to the outlook for the second quarter and fiscal year 2023, I would like to update you on the share repurchase program approved in August of last year.
As of March 31, 2023, the remaining balance under this authorization was nearly $12 million.
We repurchased four 6 million shares at an average price of $3 $91 per share.
We expect to continue executing our plan based on the evaluation of market conditions and applicable legal requirements.
Looking ahead, while macroeconomic conditions remain uncertain. We are pleased with the resiliency of our results. We are confident in our ability to navigate these uncertainties and remain committed to supporting our customers through every step of their journey.
We are currently targeting revenue in the 45 zero million to $45 $8 million range for the second quarter of 2023, implying a year over year growth of 19% on FX neutral basis in the middle of the range.
For the full year 2023, considering the current performance of the company, we are increasing the bottom of the range now targeting the full year to end between 16% and 19% on FX neutral year over year basis, implying a range of $185 million to a $190 million based on year to date.
Average FX rates.
In conclusion, we remain committed to our customers' digital transformation journey and supporting them with the appropriate set of tools and products. Despite the uncertain times. We are currently facing our customer base continues to show its resiliency.
We are grateful for our customers unwavering Trust EBITDAX platform, which is evident through our consistently low annual revenue churn. These errors resulted in a robust business model for the tax that will continue to generate growth in a sustainable and ambitious manner.
As we continue executing on our strategy for profitable growth, we anticipate a substantial year over year expansion in our non-GAAP operating income margins in the second quarter of 2023, followed by incremental improvements in the second half of the year.
Our commitment to delivering value for our customers partners and shareholders has never been stronger and we are excited about the opportunities ahead.
With that let's open it up for questions now thank you.
And at this time, if you would like to ask a question Press Star then the number one on your telephone keypad.
Our first question comes from the line of Marcelo Santos with Jpmorgan. Your line is open.
Hi, good evening, Thanks for taking my questions. The first question I wanted to understand that if it goes if you could give some more color on the GMB growth. It was a good growth from the first quarter, but it was a sequential deceleration. So if you could explain the moving parts here.
That would be very interesting and the second question is about the competitive environment.
One Brazilian software company launched a new brand called week targeting mid size companies.
Is that something that.
Somehow crosses your path or that you have seen somehow impacting maybe the low end of your clients or is.
Totally.
Thank you.
Hello, Hello, Marcello disease Geraldo speaking.
Talk to you.
So about the gym to grow within the that we are outperforming the general market.
Although the pace of the gym the growth is lower than.
Let's see last year.
Mainly because of the same store sales same store sales.
Decelerate, a little bit we still growing more than the average market and and we attribute that to the fact that we have.
More robust customers and also that the platform allows these customers to succeed.
I think the greatest in the latest example of that is the fact that we we have this capability that allow our customers to deliver from physical stores delivered from physical stores is very good for most of our customers, especially passionate customers. They have that ruptured they have more inventory available.
At the website.
It allows also the sales person that can start to sell products that are not available at the currently at the physical store.
So did our collaboration between the online and offline world in a very seamless way.
And this is growing a lot that you take this capability is ramping up very fast.
In the last two years, we almost more than double the volume of wood.
What we call collaborative orders on omni channel.
It was less than half of.
Two years ago.
So busy.
This is our explanation for our growth.
<unk> more than the market recently.
About the competition with weak although like E. Commerce platform, we have several competitors all the time, there's always a new set of competitors.
I do believe wake is positioned to compete with our <unk>.
Tier two customers.
We're going to do our work as we should do and we're going to serve our customers. The best way possible. So we plan to continue to serve them well.
Perfect. Thank you very much.
And our next question comes from the line of Clarke Jeffries with Piper Sandler Your line is open.
Hello, Thank you for taking the question.
I wanted to follow up on.
Just sort of question around GNP growth specifically.
Specifically.
Was it in line with your expectations and what it seems most curious to me is the deceleration in <unk> growth, but the actual acceleration in subscription growth was there a reason or a dynamic in which we typically see a typical economic model was changing such that.
GMB growth coming down it didn't result in a an equal drawdown in subscription.
Yes, Hi, Clark Riccardo here. Thank you for the question very good question.
So on the <unk> growth.
You know what.
We saw was as your automation for the existing stores existing customers.
Same store sales was.
Slightly below.
So but.
But we did see new customers coming onboard.
Especially true some upselling initiatives.
That was above what we expected.
So this helps to explain also your second part of the question.
Because of these slightly.
Better mix or.
Higher mix of new customers that have a slightly higher implied take rate because they paid a fixed fee, but in the beginning didn't bring a lot of the GMT.
Has improved this this performance.
On the on the revenue side.
So that has mentioned a bit more the GMB growth, we estimate revenue growth hopefully that answers the question.
Yes, absolutely and then I think a follow up to that is.
Really around.
Some of the commentary around maybe subsidizing or maybe being flexible on price for the services and implementation.
Customers in the U S and in Europe .
And these are kind of kind of over here.
It is pretty sure the success of their lives.
So as a result of this strategy move we are creating strong relationships with recent sinus customers, ensuring a high quality integration and onboarding experience another V and advancing our expansion into these new deals with a reputation. Okay says this is quite important for our future.
To to pursue reputation of cases, it is what makes us strong.
But why are these decision may in fact, I was servicing the gross margin the short term it it will position us better in a newer regions as you as in Europe in the mid and long term. Additionally, it is important to clarify that this commercial decision should not compromise our ability to reach a sustainable breakeven by the fourth.
<unk>.
Of <unk> and we have mentioned in previous earnings call. So.
We are on track.
Instead of it will enable us to pursue a much greater market opportunity. So.
We are optimistic by by taking these decision and we are looking forward for the results of it.
Thank you very much.
And our next question comes from the line of Frank <unk> Davidson. Your line is open.
[noise] Hi, Hi, good afternoon, Thanks for taking my questions here.
I was hoping to follow up on the gross margin class on.
On the other side of the the best.
Cut some side.
Yeah, I also had some nice uptake from your infrastructure improvements.
Just wondering.
Perhaps out there.
How should we think about that I should go through in a year.
Thank you. Thank you very much for the questions. This is geraldo via thank you.
So.
At the time of the IPO, we were gross margin was getting smaller than is perfectly what.
And we will grow your loss.
The with bringing customers and we were investing a new capabilities very fast.
Because of the pandemic, we needed to be much faster than efficient.
<unk> I would say that the most since you would see consistent improve.
Improvements in our gross margin experience I guess, one here a little bit more than one year ago.
And this is a deliberate effort off of R. M D and <unk>.
Of course optimizations, an hour two boards processes. This this is related mostly to how we architecture are hosting capabilities, how how we we make them more efficient how we we we we removed from windows distances to learn.
For instance, as we move to more bonded processors.
<unk>.
It is a area, where there's a lot of improvements should be done and while the grove.
B lower and all and there is more bandwidth from the orange decide for us to focus on the improvements. So to answer. Your question is yes, we continue to invest in the improvement of our.
Gross margin.
We talked you cannot expect that.
Even though like we almost.
<unk> the subscription version book by 400 basis points, writing in the in the.
A year over year, you won't expect that the rhythm, but you would expect marginal improvements yes.
Alright. Thank you that does some good color appreciate it.
And then for my second question I was hoping to get some color on the costs associated with the hindsight around your eyes and do business on the six Kaylee filed a notice of the cost.
Double a year over year can be sticking out those interest is that.
Hi, <unk>.
Got it here.
It should take that one so on the on the sixth game, we don't disclose the break out of the expenses.
Four large and taken out of the versus the overall <unk>, we do have some disclosure on the stock.
Stock based compensation for the management team there, but that's not the full picture of the expenses for <unk>.
But what I could say is that larger and take it either has been before me.
Similar base to to detect Oh say bolson revenue growth perspective, as well as on the operating margin perspective.
So it's not exactly the same but it's similar so they are going through the same trends.
We are seeing it that'd be tax.
The overall numbers right underneath the numbers the details are pretty different because they are in the business and detect more enterprise.
But the overall numbers.
Similar so it's not a boost to all results, but it's also a detriment to our results.
Thanks for the clarification appreciate it.
And our next question comes from the line of Caesar Medina with Morgan Stanley . Your line is open.
Hi, Thanks for taking my question on the commentary on the release you mentioned that you haven't seen additional exaggeration on on sale cycles.
I'm I'm I'm Dot, France could you comment on how this is impacting failed.
<unk> timed your backlog on more important things you're experiencing outside of Brazilian that I'm I'm I'm developed markets. Thank you.
So, yes, <unk> fraudulent answer here Mariano so the sales cycle is not changing it is the maturity of each region tanning Salon shake.
The the sales cycle, but the sale cyclizine each region, we are seeing a kind of a kind of let's say commoditization of let's say or the same cycle. So we are not expecting not a good surprise or or even a worst surprise based on the sales cycle.
The international expansion how are your clue.
Hi, I'm just outside of.
Brazil reacting I mean, the Mac uncertainty.
Perfect. So I can say some words about our international expansion like for example, we shifted our approach.
Towards a more technical sales strategy early last year, and we have been focused on building a kind of appeals cease and engaging declines on a more technical wait. This is only possible because of the VX platform features and capabilities the out of the box capabilities allow us to prove to our clients by doing.
Instead of selling it and these approach of not teach the Sally but speech the product is making the difference we are seeing the conversion rate answering to these kind of approach so it.
Of course, it's making it harder for our competitors to replicate our proof of concept approach and.
Additionally, we have been getting more and more to the tech team solution engineering.
Engaged on the first calls with our prospects.
I believe the Texas pioneering on <unk> and it is a big bat.
The U as in Europe , putting more engineering in front of the clients as early in the process as possible.
And we anticipate being able to disclose some of the customers we have signed contracts with over the coming quarters as they are heavy they'll go lives and we can say that's b two b demand.
It is in high Tech.
<unk> is a unique offer for me to be the digital commerce platform.
The distributor to order management plugged the marketplace ready platform makes a detector unique offering for the B two b industry. So we do feel optimistic that we are moving into the right direction and the consistency of our reputation of cases.
Go in life will create more and more of the brand that we want in the U S. In Europe and you can call for example, Gardner and I D C analysis, and and analysis and they will share with you the their perspective about detects so I believe.
The increase of those analysts companies.
On the coverage of <unk> it.
It is a good sign of our reputation increasing as well. So we we are we are optimistic or the the quarters in the years to come in the U as in Europe .
Perfect. Thank you so much for the color.
And again, if you would like to ask a question. Please press star and the number one on your telephone keypad. Our next question comes from the line have look at Brenden with Bank of America. Your line is open.
Hi, Good evening, everyone. Thank you for taking my question two questions here. The first one if you could just clarify a little bit on bills higher expenses to support the implementation costs.
Relate to just two clients that are yet to go alive word has this already been implemented before started to be implanted before with the previous clients.
And then the second question if you could give us some color on how you receive the e-commerce market, mainly in Brazil, but if you could also give a call is from how things are going into other regions compared to what we saw.
In the first quarter I first need some sort of recovery or if the market remains difficult.
Yep.
Hi, Lucas Ricardo here happy to answer the first one so on the investment that we're making on the services side <unk> connected with the implementation so new customers coming on board, it's not with the existing customers off of it.
It's very a very specific unhealthy cases that we have signed customers in U S and Europe to undergo a successful implementation and go lives and the second question. If you could repeat please.
If you could just tell us how we how we received the commerce market. So.
So far in the second quarter and the outlook going forward comparing it to the first quarter.
So they come as market, we are seeing a lot of retailers in the world suffering. These are kind of kind of let's call. The godly effect right Colby plus war plus inflation plus a heightened interest rate it as one of the kind of worst kind of people off a macro.
Conditions, we have in the market in the last 30 years. So all the retailers that needs to finance themselves in a new environment. They will suffer so you can see the blood bath and beyond and others retailers in the U S. In Europe , they will suffer and they will go chapter 11, they will go bankrupt.
That's not different in in Latin America, maybe Latin America is a little bit more resilient because the company. There are more used to crisis, but at the end of the day, it's something that is a pretty obvious in effect.
The money is much more expensive than used to be before.
That brings the client the customers to make more pragmatic decisions.
So in terms of the position where the tax it's.
A kind of a backbone for connected <unk>, where you can have your time to market.
Than other platforms.
We might see a demand commie that we need to be very cautious on being optimistic on these because a crisis is never good.
That might have asked.
Fact that allows us to surf a wave that client that wants to not use any more a custom software and use.
<unk> or any other platform to surf or more lean approach. So we can say like for good and for bad we can expect the same pace. So we are keeping seen our two quarter on a 45 to 45.8 million a year with a 19% effects.
Neutral and we keep seen plenty twenty-three in between 885 million to 190, Nina that's a 16% to 19% effects neutral sold.
We didn't change roughly the guidance that we have been doing in the less water.
Perfect very clear thank you for the answers.
And there are no further questions at this time, Toronto's harmless I'll turn the call back over to you.
To conclude you always call I would like to thank everyone, who join US today for our first quarter 2023 earnings conference call with triggered to share.
Successes from best quote, which includes will boost growth and successful implementation of strategies, Inc. All regions.
Reinforcing our leading position in the digital landscape of Latin America.
<unk> presence globally.
We have experienced an increase <unk> by 22% year over year, which research customers resilient performance even in challenging times.
We have also expanded our customer base, adding several new customers and strengthen relationships.
Just the ones.
I'm looking forward to keep you updated on new customers adds across the years, great things are about to come we continue to be excited about our path of being the best both for connected Congress. Thank you again for your continued support and we look forward to your participation on off.
Other days you may now disconnect.
And this concludes today's conference call you may now disconnect.
[noise].