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Jun 30, 2024
Vertex Q2 2024 Earnings Report
Vertex's Q2 2024 results highlighted strong financial performance, marked by GAAP profitability for the third consecutive quarter, record cash flow, and the highest Adjusted EBITDA margin since becoming a public company. Strategic initiatives, including a convertible debt offering and acquisitions, positioned the company for sustained profitable growth.
Key Takeaways
Vertex reported a strong second quarter in 2024, marked by a 15.3% increase in total revenues to $161.1 million, GAAP profitability, and record cash flow. The company completed strategic acquisitions and a debt offering to support future growth.
Total revenues increased by 15.3% year-over-year, reaching $161.1 million.
Software subscription revenues grew by 15.8% year-over-year, amounting to $136.4 million.
ARR increased by 17.3% year-over-year, totaling $548.4 million, which included $6.1 million from Systax.
Net income was $5.2 million, a significant improvement from the $(6.9) million net loss in the same period last year.
Vertex
Vertex
Vertex Revenue by Segment
Revenue by Segment
Software Subscriptions Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
For Q3 2024, Vertex expects revenues between $164 million and $167 million, and Adjusted EBITDA between $33 million and $35 million. For the full year 2024, the company expects revenues between $654 million and $660 million, cloud revenue growth of 28%, and Adjusted EBITDA between $139 million and $145 million.
Positive Outlook
- Revenue guidance for Q3 2024 is set between $164 million and $167 million.
- Adjusted EBITDA for Q3 2024 is projected to be between $33 million and $35 million.
- Full-year 2024 revenue is expected to range from $654 million to $660 million.
- Cloud revenue growth for the full year is anticipated to be 28%.
- Adjusted EBITDA for the full year is forecasted to be between $139 million and $145 million.
Challenges Ahead
- Inability to reconcile forward-looking Adjusted EBITDA to net income (loss) due to unpredictable items.
- Potential impact from stock-based compensation expense.
- Influence of depreciation and amortization of capitalized software costs and acquired intangible assets.
- Effect of severance expense and acquisition contingent consideration.
- Impact of litigation settlements and transaction costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income