Q3 2024 VTEX Earnings Call
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Speaker Change: Hello everyone and welcome to the VTex Ernest Conference Call for the Quarter ended September 30, 2024. I'm Julia Vater from Annes, VP of Investor Relations for VTex.
Our senior executives presented today are Jidaldo Thomaz, one of your founders and co-CEO and Ricardo Cometasovre, Chief Financial Officer. Additionally, Mariano Romia de Farella, founder and co-CEO and a director of Chief Strategy's Officer will be available due into the day's Q&A session. I would like to remind you that management may forward looking statements related to such matters as contained growth prospects for the company in the street trends and product and technology initiatives.
Speaker Change: These statements are based on quarantine-level information and I will current assumptions, expectations and projections for future events.
Speaker Change: Well, we believe that our assumptions expectation and projections are reasonable in view of the current available information. You have caution not to place a new reliance on these four-looking statements.
Speaker Change: Certain risks and emergencies are described on the risk factors and forward-looking statements sections of BXform 20F for the year and December 31st, 2003 and other BX filings within the U.S. Security Center Exchange Commission which are available on our web site.
Finally, I would like to remind you that during the course of this conference call, we might discuss some non-gab measures. Our resolution of those measures to the nearest comparable Gab measures come to an hour or third quarter to the end of the four, are it personally available on our investor relations website.
Speaker Change: Now, let me turn the call over to Geraldo, Geraldo and the Floriziers.
Geraldo: We are proud to report that our product innovation and expanded platform capabilities continue to be key drivers of growth, further strengthening our competitive modes.
Geraldo: For our complete and composable approach, we are deepening relationships with existing customers while also attracting high-profile brands and retailers, driving both top-line growth and profitability.
Geraldo: VTAC made strong strides towards profitable growth.
Geraldo: During a period of macro uncertainty, we continue delivering strong subscription revenue growth while also optimizing our cost basis.
Geraldo: resulting in a gross profit growth of 28% in FX neutral this quarter.
Significant progress is also noticeable on a rule of 40 basis, with VTACs achieving 32% this quarter, up from 28% in the same period last year.
Geraldo: We may be slightly more than a handful of quarters away from reaching the 40% target presented on our Investor Day last year.
Finally, as macro uncertainty may begin to clear, we have streamlined Vitex to fully capitalize on the attractive market opportunities ahead.
Geraldo: We're proud to serve some of the most influential brands and retailers, fostering trusted relationships and supporting their success, which ultimately pushes us toward our vision to become the backbone for connected commerce.
On top of our existing customers' robust performance, adding new customers further strengthens our growth engine. New contract signatures have remained robust.
This quarter, we're excited to highlight the successful GoLive of Fast Shopping Brazil, one of the big accounts we were implementing throughout the year.
The solid sales momentum in our most mature market, compounded by the progress in the U.S. and Europe,
Geraldo: and the near products such as B2B Offering and Vitex Ad Network give us confidence in our long-term profitable growth potential.
Geraldo: On Q3 2024, beyond FastShop's Gold Live in Brazil, we've extended our customer base with new wins, including...
Geraldo: Beko in Austria, Bemol, Champion Relogios, Ferramentas Negrão, FKM Consumo, Gramomania and George B. Scott in Brazil.
Confama and Rimax in Colombia, Carida and Farmacia Universal in Peru, and U.S. Electrical Services in the U.S.
Geraldo: Our existing customers are also deepening their partnership with VDEX.
Colgate launched a new store in Switzerland, expanding its footprint across Switzerland, Brazil and the U.S. Hearst added two new stores, Harper Bazaar and Prevention, bringing their store count to five across the U.S.
Geraldo: Keanu Hair Cosmetic launched a new store in the UK, now serving the UK, Belgium, France and the Netherlands.
Geraldo: Mazda expanded into Belgium, now operating in three countries across Europe. And Samsung added two new stores in Uruguay, now operating in three countries in Latin America.
Geraldo: We're grateful for the trust of our customers.
Geraldo: who would look forward to serving with excellence.
Speaker Change: The decision to entrust Vitex reflects the value of our product and the deep relationship we forge as we collaboratively shape the future of commerce.
Speaker Change: And talking about collaboratively shaping the future of commerce, this year we hosted several key events to strengthen our brand presence across various geographies, including the U.S., Brazil, and Barcelona.
Speaker Change: Featured pro-invent, players such as Amazon, Decathlon, Grupo Coppel, HEB, L'Oreal, Mondelez, Tik Tok and many others.
Speaker Change: with Apple co-founder Steve Bozniak, redlining as the keynote speaker.
Speaker Change: Like our other events this year, Vitex Connect LATAM was instrumental in boosting brand awareness and recognition, driving lead generation and potential future conversion in our sales funnel.
Speaker Change: This quarter, we also launched Vitek's Vision 4 edition, an initiative designed to align our product roadmap with customer needs and showcase the robustness of our platform-to-prospects.
Reinforcing our position as the leading composable and complete commerce platform, let's highlight some of the key announcements.
Speaker Change: On the retail media side, in this edition, we expanded the Vitex Ad Network Media Kit portfolio with new ad formats.
Speaker Change: Sponsored products now appear in Search, Autocomplete Suggestions and Product Galleries, boosting visibility and customer engagement with a seamless experience.
Speaker Change: We'd also simplify the process of advertisers to measure and visualize campaign performance, offering deeper insights and facilitating data-driven decisions.
Speaker Change: Advertisers can now easily export campaign data, search terms, and product insights, providing comprehensive reports with just a few clicks.
Speaker Change: Additionally, we announced upcoming features such as ads with product recommendations powered by Cinerise and sponsored banners targeting shoppers at the discovery phase.
Speaker Change: The Vitex Ad Network already counts with leading publishers such as FastShop, Drogaria Pacheco São Paulo, and Zona Sul, among others.
Speaker Change: We've also introduced new data models for catalog, promotion, and external marketplace data to the Vitex data pipeline.
Speaker Change: The product is now compatible with any preferred data warehouse, BI tools, and CRM systems, making it easier than ever to deliver VTX Commerce data where it's needed most.
Speaker Change: These new models offer a unified view of commerce operations, allowing businesses to optimize their strategies seamlessly.
Speaker Change: These are just a few of the exciting updates in the Vitex Vision Fall Edition. I encourage everyone to visit our website at vision.vitex.com for the complete list of the releases, enhancements, and product innovations.
Speaker Change: Although a small financial investment, this strategic acquisition significantly enhances VITEC's ability to offer a comprehensive, end-to-end customer experience platform tailored to the personalized needs of today's consumers.
Speaker Change: Vitek's customers will now benefit from AI-driven, intuitive customer support options that boost efficiency and drive sustainable business success through a more connected and seamless commerce journey.
Speaker Change: When is AI capabilities allow us to deliver more than software?
Speaker Change: Through AI, we will deliver measurable business outcomes of increased customer engagement and satisfaction while optimizing outdated and inefficient call center operations.
Speaker Change: Finally, this acquisition aligns perfectly with our vision to be the backbone for connected commerce, shaping the future of digital commerce by empowering brands and retailers to deliver personalized omnichannel experience at every touchpoint.
Speaker Change: Now turning to the heart of our company, our customers, I'd like to share some success stories.
Speaker Change: Bemol, one of the Brazil's largest retailers, with 39 stores, 48 pharmacies, and 5 distribution centers.
Speaker Change: Successfully migrated its entire operation to Vitex, including its B2C franchise module and headers app.
Speaker Change: taking a scalable, efficient platform to unified operations, streamline sales and introduce innovative financial solutions like Bemol Store Credit, Bemol Value Bonus, Credito Bemol and Bemol PIX.
Speaker Change: During the phased rollout, the website already experienced a 12% boost in conversion rates and a 33% increase in average revenue per session.
Speaker Change: After fully migrating all traffic to VTECs, organic traffic rose by 8%, supported by a 56% faster loading performance in mobile devices with limited processing power and internet connectivity.
Speaker Change: These advancements not only improve the user experience, but also reinforce Bemol's expansions across Brazil.
Speaker Change: With Vitex, Permol is now positioned to further growth, capitalizing on a scalable architecture and strong financial integrations to provide a superior omnichannel experience.
Speaker Change: Colgate-Palmolive, the global leader in oral skin and pet care, continues its expansion with Vitex.
Speaker Change: Following the successful B2B implementations of PCA Skin Professional and Colgate Oral Professional in the US, Colgate has now expanded its digital strategy to international markets.
Speaker Change: recently launched Oral Professional in Switzerland and its European B2B site on Vitex.
Speaker Change: Colgate's headless global architecture, powered by Vitex, enables a seamless rollout, demonstrating the platform's adaptability and scalability across diverse markets and business models.
Speaker Change: We're thrilled to support Colgate's continued expansion in the U.S. and Europe, underscoring their commitment to digital commerce innovation.
Speaker Change: Decathlon, a global leader in sporting goods retailers with over 1,700 stores across 64 countries.
Speaker Change: leveraged VTech sales app in Brazil to enhance omni-channel strategy and create a seamless shopping experience across both physical and digital stores.
Speaker Change: By integrating their sales channels, Decathlon allows customers to purchase items not in local stocks by accessing a unified inventory across all stores.
Speaker Change: The Vitex Tales app enables personalized customer interactions, real-time stock visibility, and flexible checkout, ensuring a faster, more agile shopping experience.
Speaker Change: This innovation has helped Decathlon maintain its commitment to delivering high quality customer-centric service, driving operational efficiency and increasing conversion rates to a fully unified commerce platform.
Speaker Change: Fast Shop, the leading Brazilian retailer with 36 years of history, 85 stores and 15 distribution centers selected Vitex to migrate from its legacy platform due to high cost and lack of flexibility.
Speaker Change: FlashShop has now significantly lowered its total cost of ownership and gained access to our robust and deep ecosystem of third-party solutions, enhancing its customer experience and happily expanding into new channels like B2B.
Speaker Change: All operations, including physical stores, online storefronts, marketplace, and B2B will now be integrated into a single unified platform.
Speaker Change: They've also developed a custom app for in-store sales team delivering personalizing shopping experience.
Speaker Change: This strategic shift strengthens FastShop's premium customer journey, offering a seamless omni-channel experience with exclusive service and a strong loyalty program, FastPrime.
Speaker Change: We are thrilled to see immediate improvement in site performance and sales conversions and look forward to supporting them with agility and flexibility in all future developments.
Speaker Change: Hearst, one of the largest global diversified information and media companies, has leveraged VTEC's extensive native capabilities, multi-site architecture, and VTEC's I.O. developer
Speaker Change: plowed to successfully integrate with the prestige beauty retailer Sephora, becoming part of Hearst's expanding digital marketplace.
Speaker Change: Now, available across leading lifestyle publications like Woman's Health, Cosmopolitan, Harper's Bazaar, Men's Health, and Prevention.
Speaker Change: Hearst's integration with Sephora marks a new era transforming the buying experience for consumer media business.
Speaker Change: Readers can now seamlessly purchase products that are mentioned or featured in published content from their favorite national magazines and websites, making every touchpoint a sales opportunity.
Speaker Change: Women's Health, a trusted publication contributing to the well-being of women everywhere, has expanded its reach by instantly enabling readers to become customers.
Speaker Change: Now, with just a click, over 8,500 products with Sephora Diverse Assortment are available, offering customization and rewards through its popular Beauty Insider Loyalty Program.
Speaker Change: We're excited to accompany HEARTS in this journey that marks a major advancement for the media industry, delivering a seamless experience with shoppable interfaces for effortless product discovery and purchase.
Speaker Change: Closing this session, I would like to extend my sincere gratitude to the 1,409 Vitexers.
Speaker Change: It takes a collective effort, and together we're reshaping the future, establishing VTACS as the backbone for connected commerce.
Speaker Change: We have an ambitious goal and united we will seize every opportunity.
Speaker Change: I will now hand the call over to Ricardo.
Ricardo Cometasovre: Thank you, Geraldo. Hi, everyone. I'm pleased to share VTAC's Q3 2024 financial results.
Ricardo Cometasovre: This quarter, our GMB reached $4.4 billion, marking a year-over-year growth of 10% in U.S. dollars and 17% in FX neutral.
Ricardo Cometasovre: with same sources remaining in the teens range.
Speaker Change: Our revenue stood at $56.0 million, representing a year-over-year increase of 11% in U.S. dollars and 19% on an FX neutral basis.
Speaker Change: Subscription revenue reached $53.9 million, representing an increase of 13% in US Dollars and 22% in FX Neutral.
Speaker Change: Primarily driven by good momentum in new contract signatures, solid performance from existing customers, and cross-selling of add-on services.
Speaker Change: Services revenue total $2.1 million, a buy design reduction given that the evolution of our ecosystem has allowed our new customers in the U.S. and Europe to rely less on direct services from VTACs.
Speaker Change: which in many cases were sold at a loss to onboard our initial larger customers in these regions.
Speaker Change: Now, going to our costs and expenses.
Speaker Change: Our non-GAAP gross margin reached 75%, up from 71% in the same quarter last year.
Speaker Change: The approximately 410 basis points year-over-year improvement was mainly driven by hosting cost efficiencies.
Speaker Change: resulting in our non-GAAP subscription gross margin increasing 230 basis points, reaching 79% in Q3 2024 from 76% in the same quarter last year.
Speaker Change: While work remains to fully reach our Investor Day subscription gross margin target model goal, future improvements may be more marginal. Moving now to P&L, this quarter we achieved a positive 14% non-gap operating income margin.
Speaker Change: marking a 10 percentage point improvement year-over-year.
Speaker Change: Our non-GAAP total operating expenses were $34.2 million, slightly up from $34.1 million in the same quarter last year.
Speaker Change: As mentioned earlier, most of this margin expansion is driven by revenue growth, supported by a well-invested and efficient organizational structure.
Speaker Change: which will allow us to invest in R&D and sales and marketing to fully capitalize on market opportunities as they may emerge.
Speaker Change: Combining our operating income result with disciplined working capital management resulted in our free cash flow in Q3 2024 reaching $7.7 million.
Speaker Change: representing a 14% margin and up from 5% margin in the same quarter last year.
Speaker Change: We are well positioned to continue delivering strong cash conversion and will remain focused on pursuing the most suitable high return opportunities for the long term.
Speaker Change: Notably, given our strong free cash flow, we managed to increase our cash and short-term investment position to $217 million, even after allocating capital in some inorganic opportunities.
Speaker Change: Looking ahead, we remain encouraged by our sales momentum and operational leverage.
Speaker Change: As macro uncertainty may begin to clear, we have streamlined VTACs to fully capitalize on current market opportunities.
Speaker Change: We reaffirm our commitment to delivering profitable growth by continuously focusing on maximizing revenue and long-term value.
Speaker Change: We will continue to evaluate our investment levels in alignment with demand, sales conversion rates, and return on investment with the Rule of Forty as our North Star.
Speaker Change: Moving on to guidance, from a revenue perspective, given the tougher comps in Q4 that will ease up in Q1, we are targeting FX-neutral year-over-year revenue growth of 14% to 17% for the fourth quarter of 2024.
Speaker Change: implying a $64.8 million to $66.8 million range.
Speaker Change: For the full year 2024, as we continue executing our profitable growth strategy, we are targeting FX-neutral year-over-year revenue growth of 18.5% to 19.5%.
Speaker Change: implying a range of $230 million to $232 million based on Q3's average FX rate.
Speaker Change: We are raising our non-GAAP operating income and free cash flow margin target to low teams. In conclusion, Vitex holds significant growth potential, supported by our progress toward profitable growth.
Speaker Change: We are seeing strong sales momentum with new customers, geographical and brand expansion from existing customers, and improved operational efficiency, positioning us to seize future opportunities.
Speaker Change: We remain optimistic about Brazil's potential, the vast opportunities in Latin America, and the large and attractive markets in the U.S. and Europe.
Speaker Change: We will continue pursuing discipline growth.
Speaker Change: making firm steps toward our ambition to become the global backbone for connected commerce.
Speaker Change: With that, let's open it up for questions now. Thank you.
Speaker Change: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. Your first question comes from a line of Marcelo Santos from J.P. Morgan. Your line is open.
Marcelo Santos: Hi, good evening. Thanks for taking my questions. The first question is if you could provide some additional color on the growth of subscription revenues. How is that going per region? You had some tougher situation in Argentina, so I just wanted to...
Speaker Change: if you could focus a bit there, but also talk about the other regions. And the second question is, do you see this margin level as sustainable, and are you happy with the growth margin combo? How would you consider that? Thank you.
Speaker Change: Hi Marcelo, Ricardo here. Thanks for your question.
Speaker Change: So
Ricardo Cometasovre: In Q3, we achieved a total revenue growth of 18.7% in FX Neutral. That's close to the midpoint of the guidance range of 18 to 20% that we provided last quarter. And that's also a two-year CAGR in FX Neutral of 22% for total revenue. And on your question, 23% for subscription revenue.
Speaker Change: It's important to note this two-year CAGR given that last year we were positively impacted by an acceleration of consumption in Argentina from August until November, and as mentioned in last year's earnings call.
Speaker Change: And I would also add that, you know, from organic revenue growth, it was very similar to the total revenue growth, as the WENI acquisition contributed only a negligible amount to our revenue and did it solely in the last month of the quarter.
Speaker Change: So, continuing on your question on the subscription revenue, right, we deliver robust year-over-year growth of 22% in FX Neutral.
Speaker Change: even against these challenging comps in Argentina where last year's pre-devaluation consumption behavior affected the baseline.
Speaker Change: And as mentioned last quarter, Argentina remained a couple percentage points headwind to our growth this quarter.
Speaker Change: And as noted in the Q4 outlook, we expect this headwind to reduce by December when Argentina FX devaluation happened last year and consumption started adjusting.
Speaker Change: and our ex-Argentina performance underscores the strong underlying performance of the company on a more recurring basis.
Speaker Change: And I'll also add that as we rely more on the VITACS ecosystem of partners, we experience a by-design reduction in our services offering.
Speaker Change: This decision negatively impacts our services revenue and positively impacts our gross margin and bottom line, as in many instances these services were sold at a loss.
Speaker Change: So, the strategic by-design decision.
Speaker Change: To increase our services offering last year was a consequence of the first couple bigger implementations we were doing in the U.S. and Europe. And now, as the ecosystem matures and already did larger implementations, we are confident to lower the services offering, minimizing the impact on our margins.
Speaker Change: So looking ahead, as we lap the tough comps, the strong performance of existing stores and our robust sales momentum are fundamental factors that instill confidence in our ability to deliver solid profitable growth.
Speaker Change: So I believe that answers the first question. Marcelo, could you please repeat the second question?
Marcelo Santos: The second question is about the sustainability of margins and if you are happy with the growth-margin combo.
Marcelo Santos: Yeah, perfect. I'm happy to start on this one and others with which to complement.
Speaker Change: We are at 78.5% in this quarter, so we still have 1.5 percentage points to get there.
Speaker Change: from the overall gross margin we are at 74% and change and the target is 75% so so we are you know moving towards that that level
Speaker Change: And then when we look at the operating margin, we reached 14% this quarter, while our goal is 20%.
Marcelo Santos: So, you know, these incremental margins will come as we scale and drive revenue leverage over time. So we are a high growth company and we continue to prioritize this revenue growth.
Marcelo Santos: and we are committed to profit of growth with additional well-aligned hires in R&D and sales marketing as we see fit.
Speaker Change: So as this momentum continues, we will certainly, you know, update you all on the on the progress. But we feel like we have a well-invested structure at the moment. And we'll continue to, you know, improve on margins going forward.
Speaker Change: Perfect, thank you very much.
Speaker Change: Your next question comes from a line of Cesar Medina from Morgan Stanley. Your line is open.
Cesar Medina: Hi, thanks for taking my call. Quick question, can you provide more context on what you highlighted as a strong new contract signature momentum? And I'm asking this because it seems as if...
Speaker Change: bookings that you reported in the quarter accelerated. So it would be great to have some color in terms of what's going on, where is this coming from, what type of sectors, and more importantly, you know, the mix of regions where you are getting this acceleration. Thank you.
Speaker Change: So, I can take this one and Sodre, if you please join adding anything. So, thanks for the question. Mariano here.
Speaker Change: Our technical sales model successfully
Speaker Change: Vitekspop as the partner for the sustainable growth and profitable growth.
Speaker Change: In Brazil, to be more narrow on the analysis, we see strong B2C growth potential as more players are now open to migrate to VTECs moving away from the legacy platforms or homegrown.
Speaker Change: In that sense, this quarter we had two lives that is an evidence of these movements like Fast Shop and Bemol, big retailers based on homegrown and custom legacy migrating for VTECs.
Speaker Change: And there are only a couple, these are only an example of a couple of the clients under implementation. But as you know, we just comment the client that goes live.
Speaker Change: On the B2B side, also grows as companies modernize their front-end and channels approach, which gives us a huge opportunity to keep growing in redefining the commerce landscape in Brazil and Latin America.
Speaker Change: In the United States and Europe, our portfolio is expanding across categories. Omnichannel Marketplace customers including Hearst in the US and OBI in Europe.
Speaker Change: We also have HMARC in the U.S., OCEAN in Europe, and this quarter we can celebrate good lives from Colgate-Palmolive and Kuhn, both in B2B models across the U.S. and Europe.
Speaker Change: Colgate now operates both B2C and B2B in the U.S. while KIRN is live in four European countries.
Speaker Change: further expanding their retail footprint with Vitex.
Speaker Change: So, these milestones, coupled with industry recognition, have significantly strengthened our brand presence and our pipeline. We are confident in our path forward, building on execution, reputation, and customer success histories to capture the market opportunity that's ahead of us.
Speaker Change: And just to further complement from a financial perspective, Cesar,
Cesar Medina: The increase in deferred revenue is consistent with the strong contract signature momentum mentioned in the prepared remarks and by Mariano just now. Now having said that, it's important to note that there was also some increase in the deferred revenue duration.
Cesar Medina: Therefore, adjusting by average duration, the increase in deferred revenue was a bit more modest than what is presented in our balance sheet, without any duration adjustment, but still a pretty solid improvement.
Speaker Change: Got it. Thank you so much.
Speaker Change: Your next question comes from the line of Leonardo Olmos from UBS. Your line is open.
Leonardo Olmos: Hi everyone
Leonardo Olmos: Just one question from my side. Can you talk a little bit about system integrators? Can you talk about your current relationship with them? How has it been evolving? What types of strategy are you thinking about for 2025? And if you have one or more competitors, they're growing relevance in terms of there's distribution in system integrators.
Leonardo Olmos: Thank you.
Leonardo Olmos: Yep, so Vitek's ecosystem matures. We are seeing
Speaker Change: As you can see on our numbers and the server's revenue of VTX, it's not increasing as the revenue. That's a sign that our ecosystem of SIs are maturing in all regions.
Speaker Change: So, VTECS needs to provide direct service has declined.
Speaker Change: and DFO, since the Q1, you can notice that we gradually reduce our direct roles in our implementations resulting in a lower contribution.
Speaker Change: and can be a strength or leverage for us to deploy projects all over the world.
Speaker Change: Our focus remains on subscription revenue.
Speaker Change: the core of our product-driven business model and a key driver of profitability. Leveraging a mature ecosystem of system integrity enables us to have this global reach, global support and a profitable growth.
Speaker Change: So subscription revenue is the true indicator of the business health and in Q3, it grew 22% FX neutral. Pair with our increasing gross profit, we've rose 28% in FX neutral this quarter.
Speaker Change: Did that answer your question?
Speaker Change: Yes, yes, and great news. Just a small part of my question, if you could maybe double click on it, the competitors part that I asked, is there any competitor that is advancing with SIs or any other form? Thank you.
Speaker Change: So competition, the competitive environment has remained stable. While we always receive questions about peers potentially expanding from long tail or SMB segments or some enterprise competitors displaying increased aggressiveness in one region or another region, we haven't observed any significant shifts.
Speaker Change: Our overall annual revenue share remains consistent in the mid-single-digit range and we continue to gain market share globally. Nevertheless, we are monitoring the competitive environment, ensuring our value prop and technology stack.
Speaker Change: to remain highly competitive, but just summarizing, we didn't see any kind of major shift in the competitive landscape.
Speaker Change: Great, all right. A lot of great news. Thank you very much. Have a good night.
Speaker Change: Again, if you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: And there are no further questions so this does conclude our question and answer session. I will now turn the call over to Geraldo Thomaz, Founder and Co-CEO of VTechs for closing remarks.
Geraldo Thomaz: I would like to reaffirm our commitment to delivering profitable growth and our objective of returning to the Rule of 40. This quarter's progress reflects the dedication of our team at VITECS.
Geraldo Thomaz: Once we set our goals, we work relentlessly to achieve them, no matter the scale of our ambitions.
Speaker Change: With over 20 years of history, we can confidently say that Fitech grows stronger each year, and this year is no exception.
Speaker Change: We are honored to support some of the world's leading brands and retailers as we redefine commerce together.
Speaker Change: bridging the gap between physical and digital channels and strengthening an industry with immense potential ahead. Our purpose is to keep our customers ahead of the curve, adaptable and resilient in the face of constant change.
Speaker Change: With strong sales momentum and continual platform innovation, Vitek is well-positioned for sustained growth and to solidify its role as an e-commerce leader on a global basis.
Speaker Change: We have a long invigorating journey ahead of us and we are here to seize it as we remain fully committed to deliver value to our customers, investors, and stakeholders.
Speaker Change: and as we continue our journey to becoming the backbone for connected commerce.
Speaker Change: Thank you everyone for being part of this journey. We look forward to keeping you updated at our next earnings call. You may disconnect now. Have a wonderful week.
Speaker Change: This concludes today's conference call. Thank you for your participation. You may now disconnect.