Q1 2026 Vertex Inc Earnings Call Transcript
Key Points
- Vertex Inc (VERX) delivered strong first-quarter results with revenue of $196.6 million and adjusted EBITDA of $44.1 million, both above the high end of guidance.
- The company has maintained a high customer retention rate, with gross revenue retention at 95% and stable net revenue retention.
- Vertex Inc (VERX) is strategically investing in growth areas such as e-invoicing and AI, including the acquisition of Brinta, which enhances their capabilities in Latin America.
- The company's cloud revenue grew by 20.7%, and the shift towards cloud-based solutions continues, with cloud revenue now approaching 60% of total subscription revenue.
- Vertex Inc (VERX) is leveraging AI to enhance its product offerings and internal operations, which is expected to improve efficiency and customer satisfaction.
- The macroeconomic environment remains mixed, with scrutiny on IT spending, which could impact future growth.
- Vertex Inc (VERX) has revised its medium-term growth expectations to low double digits, reflecting a more conservative outlook.
- The transition to cloud revenue is progressing slower than anticipated, with a need for acceleration to meet full-year targets.
- The company undertook a workforce reduction of approximately 9% to improve cost structure, which may impact employee morale.
- Vertex Inc (VERX) faces challenges in fully monetizing AI capabilities, with current AI products still in the early stages of adoption.
Good morning, and welcome to the Vertex First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's prepared remarks, and we ask that you please hold all questions until that time. I will then provide instructions for the question-and-answer session. As a reminder, this conference is being recorded. If you have any objections, please disconnect at this time.
I will now turn the call over to Joe Crivelli, Vice President of Investor Relations, for introductory remarks.
Hello, and thanks for joining us to discuss Virtex's first-quarter results. Chris Young, our President and CEO, and John Schwab, our CFO, are with us today.
As noted on Slide 2 during this call, we may make forward-looking statements about expected future results. Actual results may differ due to risks and uncertainties. These risks and uncertainties are described in our filings with the Securities and Exchange Commission. Our
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