Loading...
•
Mar 31, 2025
Vertex Q1 2025 Earnings Report
Vertex reported a solid performance in Q1 2025 with revenue growth and profitability improvements.
Key Takeaways
Vertex delivered strong Q1 2025 results with a 12.9% increase in revenue, notable growth in cloud and subscription services, and a rise in net income. The company also maintained robust customer retention metrics and strategic investments in AI and acquisitions.
Total revenue rose to $177.1 million, driven by 14.4% growth in software subscriptions and 29.6% in cloud revenue.
Net income increased to $11.1 million, up from $2.7 million in the prior year.
Annual Recurring Revenue reached $618.5 million, boosted by acquisitions and organic growth.
Free cash flow turned negative at -$12.25 million due to increased capital expenditures.
Revenue by Segment
Forward Guidance
Vertex expects continued growth in Q2 and full-year 2025, with revenue and EBITDA gains supported by strategic investments and secular tailwinds.
Positive Outlook
- Q2 2025 revenue expected to be between $182M and $187M.
- Full-year 2025 revenue guidance of $760M to $768M.
- Cloud revenue expected to grow 28% for FY2025.
- Adjusted EBITDA forecasted between $161M and $165M for FY2025.
- Strategic investment in Kintsugi AI aimed at accelerating AI product development.
Challenges Ahead
- $1M to $2M in deferred Q1 expenses will impact Q2 EBITDA.
- Adjusted EBITDA margin declined to 21.0% from 23.4% YoY.
- Free cash flow turned negative due to higher capital expenditures.
- Reduced Net Revenue Retention from 112% to 109% YoY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...