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Dec 31, 2024
Vertex Q4 2024 Earnings Report
Vertex reported strong revenue growth but a net loss in Q4 2024.
Key Takeaways
Vertex delivered strong revenue growth in Q4 2024, with total revenue increasing by 15.2% year-over-year to $178.5 million. Software subscriptions contributed $152.6 million, while cloud revenues grew 27.0% to $76.9 million. However, the company posted a net loss of $67.8 million due to increased operating expenses and acquisition-related costs. Non-GAAP net income was $25.5 million, with an adjusted EBITDA of $38.1 million.
Total revenue grew by 15.2% year-over-year to $178.5 million.
Net loss was $67.8 million, compared to net income of $15.3 million in Q4 2023.
Annual Recurring Revenue (ARR) reached $603.1 million, up 17.7%.
Adjusted EBITDA improved to $38.1 million, with a margin of 21.3%.
Vertex
Vertex
Vertex Revenue by Segment
Revenue by Segment
Services Revenue
CapyFin.com Forward Guidance
Vertex expects continued revenue growth in 2025, driven by strong cloud revenue performance and strategic investments in AI-based solutions.
Positive Outlook
- Revenue for Q1 2025 projected between $175 million and $178 million.
- Full-year 2025 revenue expected between $760 million and $768 million.
- Cloud revenue projected to grow by 28% year-over-year.
- Adjusted EBITDA forecasted to range between $161 million and $165 million.
- Increased investment in AI-driven Smart Categorization and e-invoicing solutions.
Challenges Ahead
- Macroeconomic uncertainty may impact customer spending on tax solutions.
- Increased R&D investments may temporarily pressure margins.
- Continued competition in the indirect tax software space.
- Costs related to recent acquisitions could impact short-term profitability.
- Regulatory changes in tax laws may introduce compliance challenges.