VTEX, the composable and complete commerce platform, experienced a significant pre-market plummet of 13.19% on Wednesday. This sharp decline was driven by the company's mixed 2024 financial results and outlook, impacted by currency headwinds and softening consumer demand in key markets like Brazil.

The Brazilian tech firm's 2024 annual earnings report revealed a challenging environment for revenue growth. While VTEX achieved improvements in gross margins, operating income, and free cash flow, its revenue growth fell short of expectations. This was primarily due to weaker same-store sales in Brazil, where rising interest rates and currency devaluation dampened consumer spending, particularly in sectors like home appliances and electronics.

VTEX also faced significant currency headwinds from the US dollar's appreciation against most currencies, further pressuring its USD-reported results. Despite these challenges, the company remains optimistic about its strategy of transitioning from a single product company to a platform of solutions, aiming to increase customer stickiness and lifetime value. VTEX also reported strong momentum in signing new enterprise customers and maintained a stable annual revenue churn, indicating solid customer satisfaction and retention.