Vertex Q4 2024 Earnings Report
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
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.