Sep 30, 2024

Vertex Q3 2024 Earnings Report

Vertex's third quarter performance in 2024 was marked by revenue exceeding guidance, mid-teens organic revenue growth, GAAP earnings positivity, strong Adjusted EBITDA, and significant cash flow from operating activities and free cash flow.

Key Takeaways

Vertex reported strong Q3 2024 results with revenue above guidance, mid-teens organic growth, GAAP profitability, and significant cash flow. The acquisition of ecosio was completed, expanding the company's global cloud platform for e-invoicing and VAT compliance.

Total revenues reached $170.4 million, reflecting a 17.5% year-over-year increase.

Software subscription revenues grew to $146.3 million, a 20.6% increase year-over-year.

ARR increased by 19.0% year-over-year to $576.8 million, with organic growth at 16.1% excluding acquisitions.

Net income was $7.2 million, a significant improvement from the $(3.4) million net loss in the prior year.

Total Revenue
$170M
Previous year: $145M
+17.5%
EPS
$0.16
Previous year: $0.1
+60.0%
Annual Recurring Revenue
$577M
Previous year: $485M
+19.0%
Gross Profit
$105M
Previous year: $85M
+23.1%
Cash and Equivalents
$286M
Previous year: $57.8M
+395.4%
Free Cash Flow
$26.5M
Previous year: $17M
+56.1%
Total Assets
$1.19B
Previous year: $720M
+65.4%

Vertex

Vertex

Forward Guidance

For Q4 2024, Vertex expects revenues of $175 million to $178 million and Adjusted EBITDA of $33 million to $37 million. For the full year 2024, the company expects revenues of $663.3 million to $666.3 million, cloud revenue growth of 29%, and Adjusted EBITDA of $146.9 million to $150.9 million.

Positive Outlook

  • Revenues of $175 million to $178 million for Q4 2024.
  • Adjusted EBITDA of $33 million to $37 million for Q4 2024.
  • Revenues of $663.3 million to $666.3 million for the full year 2024.
  • Cloud revenue growth of 29% for the full year 2024.
  • Adjusted EBITDA of $146.9 million to $150.9 million for the full year 2024.