Vertex Q2 2024 Earnings Report
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
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.