KING OF PRUSSIA, PA — Vertex, Inc. (NASDAQ: VERX), a leading provider of tax technology solutions, reported a significant uptick in its first-quarter financial performance for 2024, highlighting strong revenue growth fueled by its cloud-based offerings.
President, CEO, and Board Chairperson David DeStefano expressed satisfaction with the quarter’s outcomes, noting substantial gains in profitability and cash flow. The company’s focus on cloud solutions has been a key driver, marking a strategic pivot towards high-demand, scalable services. This move is coupled with a boost from a recent successful convertible debt offering that fortified Vertex’s balance sheet, positioning it for continued investment and growth.
For the quarter ending March 31, 2024, Vertex announced total revenues of $156.8 million, marking an 18.1% increase year-over-year. Notably, software subscription revenues climbed to $131.8 million, up 18.8%, with cloud revenues jumping 28.3% to $61.8 million. The company’s Annual Recurring Revenue (ARR) also saw healthy growth, reaching $524.5 million, a 17.5% increase from the previous year.
A closer look at customer metrics reveals an Average Annual Revenue per direct customer (AARPC) of $121,720, up significantly from the previous year, showcasing Vertex’s ability to increase earnings from each client. Net Revenue Retention (NRR) stood at 112%, indicating that existing customers are spending more year-over-year.
Despite these positive indicators, the company did report a loss from operations of $1.6 million, an improvement over the prior year’s $8.9 million loss. However, non-GAAP measures paint a brighter picture, with operating income and net income standing at $31.7 million and $2.7 million, respectively, demonstrating effective management and operational efficiency.
Looking ahead, Vertex provided an optimistic outlook for the second quarter of 2024, expecting revenues between $159 million to $162 million and adjusted EBITDA between $31 million to $33 million. The full-year forecast anticipates revenues of $650 million to $660 million, with cloud revenue growth at 28%, and adjusted EBITDA ranging from $130 million to $135 million.
Chief Financial Officer John Schwab underscored the company’s confidence in its business trajectory and highlighted the strengthened balance sheet following the convertible debt offering. This financial cushion is expected to support both organic growth initiatives and potential acquisitions, signaling Vertex’s aggressive strategy to capitalize on the burgeoning demand for cloud-based tax solutions.
This strong start to 2024 reflects Vertex’s successful navigation of the shifting digital landscape, leveraging cloud technology to meet evolving market demands. With a solid financial foundation and strategic investments in growth areas, Vertex is well-positioned to enhance shareholder value and cement its leadership in the tax technology industry.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.