VTEX (NYSE: VTEX), the composable and complete commerce platform, witnessed a pre-market plunge of 6.51% on Wednesday, as the company's 2024 financial results and outlook were impacted by currency headwinds and softening consumer demand in key markets like Brazil.

The Brazilian tech firm recently reported its 2024 annual earnings, which showcased a mixed performance. While VTEX achieved improvements in gross margins, operating income, and free cash flow, its revenue growth fell short of expectations, particularly due to weaker same-store sales in Brazil and significant foreign exchange devaluation.

According to the earnings call transcript, VTEX attributed the softness in Brazil to rising interest rates and currency devaluation, which dampened consumer spending in sectors like home appliances and electronics. Additionally, the company faced currency headwinds from the US dollar's appreciation against most currencies, further pressuring its USD-reported results.

Despite these challenges, VTEX 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. The company also reported strong momentum in signing new enterprise customers and maintained a stable annual revenue churn, indicating solid customer satisfaction and retention.