Q4 2024 Vertex Inc Earnings Call Transcript
Key Points
- Vertex Inc (VERX) reported a 15.2% year-over-year increase in revenue for Q4 2024, reaching $178.5 million.
- Cloud revenue growth for the full year was 28.6%, with cloud revenue now exceeding on-premise revenue for the first time.
- The company achieved a Gross Revenue Retention (GRR) of 95%, within their targeted range of 94% to 96%.
- Vertex Inc (VERX) has a strong pipeline fueled by Oracle cloud and SAP S4 HANA migration cycles, indicating future growth potential.
- The company has a robust competitive position with a 47-year heritage in the indirect tax software industry, offering sustainable competitive advantages.
- Net Revenue Retention (NRR) decreased to 109% from 113% in the previous year, attributed to a challenging comparison with a strong Q4 2023.
- The company is making significant investments in e-invoicing and AI, which will impact margins in 2025.
- Adjusted EBITDA margin is expected to decrease in 2025 due to strategic investments, despite core business leverage.
- There is a slower start to revenue growth in Q1 2025, with guidance indicating a 12.6% growth at the midpoint.
- The company faces challenges in expanding its e-invoicing coverage to meet global demand, requiring accelerated investment.
Good morning and welcome to the Vertex Incorporated fourth quarter 2024 earnings conference call (Operator Instructions) Please note this event is being recorded
I would now like to turn the conference over to Joe Crivelli Vice President of Investor Relations. Please go ahead.
Hello and thanks for joining us to discuss Vertex's 4th quarter financial results. I'm Joe Crevelli, Vice President, Investor relations. David DiStefano, our President and CEO, and John Schwab, our CFO, are also with us today. During this call, we may make forward-looking statements about expected future results. Actual financial results may differ due to risks and uncertainties. These risks and uncertainties are described in our filings with the Securities and Exchange Commission.
Our remarks today will also include references to non-gap financial measures. A reconciliation of these non-gap metrics to GAAP is also provided in today's press release.
This call is being recorded and will be available
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