Vertex, Inc. (NASDAQ: VERX), a prominent global provider of indirect tax solutions, has reported its financial performance for the third quarter ending September 30, 2024. The company’s President, Chief Executive Officer, and Chairperson of the Board, David DeStefano, highlighted robust quarterly results, with revenues surpassing expectations and showing mid-teens organic growth.
During the quarter, Vertex completed the acquisition of Austrian e-invoicing and EDI company, ecosio, unveiling a global cloud platform enabling end-to-end workflow for determination, calculation, reporting, and compliance. Vertex anticipates a positive trajectory propelled by upcoming e-invoicing regulations and an anticipated supercycle of ERP conversions, fostering sustainable growth.
– Total revenues reaching $170.4 million, up by 17.5% year-over-year.
– Software subscription revenues climbing to $146.3 million, a 20.6% increase year-over-year.
– Cloud revenues surged to $71.0 million, reflecting a 29.9% rise year-over-year.
– Annual Recurring Revenue (ARR) hit $576.8 million, up by 19.0% year-over-year, with notable contributions from Systax and ecosio acquisitions.
– Non-GAAP operating income escalated to $33.4 million compared to $22.8 million in the same period last year.
– Net income improved to $7.2 million from a net loss of $(3.4) million recorded in the prior year.
– Adjusted EBITDA increased to $38.6 million, with an impressive margin of 22.7%.
The company’s future outlook for the fourth quarter of 2024 includes estimated revenues of $175 million to $178 million and an anticipated Adjusted EBITDA ranging from $33 million to $37 million. For the full year 2024, Vertex expects revenues between $663.3 million and $666.3 million, aiming for a Cloud revenue growth of 29%, and targets an Adjusted EBITDA of $146.9 million to $150.9 million.
John Schwab, Chief Financial Officer, noted the company’s improved 2024 guidance attributed to strong third-quarter results and the impact of the ecosio acquisition. The anticipated contribution from ecosio is expected to lift fourth quarter revenue and be slightly dilutive to Adjusted EBITDA.
Vertex encourages investors to consider the reconciliation of its non-GAAP financial metrics in tandem with GAAP financial measures, providing a comprehensive evaluation of the company’s financial performance and growth strategies.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Vertex’s 8K filing here.
Vertex Company Profile
Vertex, Inc, together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools.
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