Business
Vertex Announces First Quarter 2025 Financial Results
KING OF PRUSSIA, Pa., May 07, 2025 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), a leading global provider of indirect tax
About this update from Vertex, Inc.
[{"type":"text","content":"KING OF PRUSSIA, Pa., May 07, 2025 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), a leading global provider of indirect tax solutions, today announced financial results for its first quarter ended March 31, 2025. “Vertex continued to perform well in the first quarter, setting us up for a strong 2025,” said David DeStefano, Vertex’s President, Chief Executive Officer and Chairperson of the Board. “Our financial results were in line with our expectations for the quarter, and we made solid progress on key strategic initiatives including e-invoicing and artificial intelligence. We remain very optimistic for our financial outlook for 2025 and our long-term market opportunity in the indirect tax automation space, despite recent geopolitical and market events.” DeStefano added, “Our investment in Kintsugi AI that we announced last week gives us a front-row seat as this exciting AI startup finds new and creative ways to apply the power of Artificial Intelligence to the challenges of automating sales tax compliance for small and mid-size businesses. We believe our IP sharing agreement, which is a part of our investment, will enhance our own R&D efforts and have the potential to expedite time-to-market for our new AI-driven products.” First Quarter 2025 Financial Results Total revenues of $177.1 million, up 12.9% year-over-year.Software subscription revenues of $150.8 million, up 14.4% year-over-year.Cloud revenues of $80.2 million, up 29.6% year-over-year.Annual Recurring Revenue (“ARR”) was $618.5 million, up 17.9% year-over-year. This included $6.6 million added to ARR due to the inclusion of Systax’s ARR, as a result of the acquisition of the remaining ownership interests of Systax during the second quarter of 2024, and $8.1 million added to ARR due to the ecosio acquisition during the third quarter of 2024. Excluding the impact of both Systax and ecosio, ARR growth was 15.1%.Average Annual Revenue per direct customer (“AARPC”) was $126,534 at March 31, 2025, compared to $121,720 at March 31, 2024, and $122,706 at December 31, 2024.Net Revenue Retention (“NRR”) was 109%, compared to 112% at March 31, 2024, and 109% at December 31, 2024.Gross Revenue Retention (“GRR”) was 95%, consistent with both March 31, 2024 and December 31, 2024.Income from operations of $4.5 million, compared to loss of $(1.6) mill...