Slide 1: Investor Presentation - August 2025
NASDAQ: VERX Investor Presentation - August 2025
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements Any statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerni
Slide 3: Company & Strategy Overview
Company & Strategy Overview Driving Durable Growth by Solving Indirect Tax Complexity 3
Slide 4: Our North Star: accelerate global commerce
Our North Star is to accelerate global commerce and empower businesses to transact, comply and grow with confidence… …by delivering a global, best-in-class, end-to-end indirect tax platform 4
Slide 5: Global Leader in Tax Technology
Global Leader in Tax Technology ✓ Established indirect tax industry leader with significant competitive advantages 17.5% 95% Annual Recurring Revenue CAGR Gross Retention Rate (2) ✓ Proven track record of driving durable growth at scale 2020-2024 (1) ✓ Attractive margins and strong profitability ✓ M
Slide 6: Indirect Taxes Encompass High Degree of Complexity
Indirect Taxes Encompass High Degree of Complexity BILLIONS of transactions THOUSANDS $4.4T of taxing jurisdictions THOUSANDS Global of products and services Indirect Tax InREAL-TIME Revenue(1) spanning OMNICHANNEL platforms ACROSS THE GLOBAL And 3.1X Greater Than SUPPLY CHAIN Corporate Income Tax R
Slide 7: Multiple Secular Growth Drivers
Multiple Secular Growth Drivers Benefiting from Constant State of Change Digital Business Regulatory Transformation Complexity Change Technology Refresh Globalization E-invoicing Cloud Adoption Product Expansion Real-time Reporting M&A Digital Services SaaS Omnichannel Duties & Fees IoT Supply Chain
Slide 8: Unmatched End-to-End Indirect Tax Solutions
Unmatched End-to-End Indirect Tax Solutions Business ERP e-Commerce Marketplaces Procurement Point of Sale Applications on the Vertex Cloud Platform Integration Determination Compliance Audit & Planning Report Access Determine Retain Comply Read Calculate Defend Pay Configure Plan File Integrated Da
Slide 9: A Complete Ecosystem of Comprehensive Solutions
A Complete Ecosystem of Comprehensive Solutions Applications Audit & Integration Determination Compliance Planning Vertex Solutions Services provide broad range Supports every step of the tax Streamlines returns and fillings Unlocks the value of data of administrative, operational, determination pro
Slide 10: Comprehensive Tax Content Database
Comprehensive Tax Content Database Key Competitive Advantage 1 Billion+ 20,000+ AI Capabilities Tax Rates and Rules Global Strengthened with Continually Updated (1) Jurisdictions (1) Humans In-the-Loop 195 100+ SSAE 18 Countries Tax Experts Certified Research Supported (1) Worldwide (1) Process Indu
Slide 11: Mission Critical Partner to Highly Attractive Customer Base
Mission Critical Partner to Highly Attractive Customer Base Best-in-Class Solutions to Highly Complex Needs Drive Embedded Customer Relationships 9 7 8 8 7 6 6 of the Top 10 of the Top 10 of the Top 10 of the Top 10 of the Top 10 of the Top 10 of the Top 10 Business Services Communications Financial
Slide 12: Enabling Clients to Successfully Navigate Complexity
Enabling Clients to Successfully Navigate Complexity Competitive Strengths Demonstrate Why Complex Customers Trust Vertex Enterprise Reliability & Scalability Product & Platform Leadership • Powerful solutions optimized for complexity • A many-to-one platform • Vast and dynamic global tax content da
Slide 13: ~70% Expanding Existing Customers
Consistent Growth Algorithm Drives Reliable Growth Sustainable Drivers leading to Long-term Revenue Growth of Mid to High Teens+ Growth Algorithm – New ARR ~70% Expanding Existing Customers ~30% 95% GRR 109% NRR Price Growth Cross-sell, Up-sell, Cloud Conversions ~25% ~25% ~50% New Logo Consistently
Slide 14: Average Revenue Per Customer
Long Runway for Significant Drivers Growth with Loyal Install Base Digital Transformation Average Revenue Per Customer (1) ~$300-400k(2) Business Complexity Multiple tax types $130k Compliance solutions $75k CTC/e-invoicing Data Mgt & tools AI innovations Regulatory Change 2020 Current Full Penetrat
Slide 15: A Vast Addressable Market for Our Solutions
A Vast Addressable Market Key Drivers for Our Solutions Expanding regulatory requirements $35B+ $30B Heightened need for $10 B+ determination & compliance $7 B $23 B $25 B+ Growth in overall trade and commerce Today 2028 Indirect Tax TAM E-Invoicing TAM E-invoicing mandate growth and expansion NOTE:
Slide 16: Investing for Accelerating Growth
Integration Determination Compliance Audit & Planning Investing for Tax Content E-invoicing Expansion Accelerating & Delivery Growth Continuing to Build-out Advantaged E2E Data Management Platform, Integrating AI Monthly Close Audit Automation Management 16
Slide 17: World Class Executive Leadership Team Delivering Results
World Class Executive Leadership Team Delivering Results David DeStefano John Schwab Sal Visca Chris Jones Chief Executive Officer Chief Financial Officer Chief Technology Officer Chief Commercial Officer Chirag Patel Uwe Sydon Ann Hollins Jeff Foucher Michael Bernard Chief Strategy Officer Senior V
Slide 18: Financial Overview & Outlook
Financial Overview & Outlook Well-Positioned for Durable Growth 18
Slide 19: Consistent Long-term Revenue Growth
Consistent Long-term Revenue Growth Sustained Revenue Momentum Since Strategic Shift 11% CAGR 2005 – 2024 15% CAGR 2016 – 2024 $666.8 $572 $492 $426 $375 $322 $272 $225 $245 $188 $207 $154 $165 $174 $130 $134 $144 $100 $109 $121 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 20: Well-Positioned for Durable Growth
Well-Positioned for Durable Growth 85% of revenue derived from long-term subscriptions Highly Recurring Revenue Model Mission critical (1), best-in-class offering with 94-96% GRR (1) Consistent and Durable Runway for existing customer penetration + underlying transaction growth Growth at Scale Multi
Slide 21: Resilient Recurring Revenue
Resilient Recurring Revenue Annual Recurring Revenue (ARR) 17.5% CAGR 2020 – 2024 $603 $513 $431 Recurring revenue model with $370 multiple levers for growth $316 2020 2021 2022 2023 2024 Cloud Subscription Revenue Cloud revenue growth 33.5% CAGR of 29% in 2024 2020 – 2024 $276 $215 $169 $127 $87 20
Slide 22: Increasing Earnings Leverage
Increasing Earnings Leverage Reaping the Rewards of Prudent Investments for Growth $20 0.00 Earnings Leverage Phase $18 0.00 Adjusted EBITDA ($M) and margin 35. 00% $16 0.00 $14 0.00 Growth Investment Stage $151.9 30. 00% $12 0.00 $10 0.00 $100.8 25. 00% $80 .00 $78.4 $78.0 $78.7 $60 .00 22.8% 20.9%
Slide 23: Increasing Free Cash Flow Generation
Increasing Free Cash Flow Generation Earnings Leverage Phase Free Cash Flow and Conversion ($M)(1) $80 .00 Growth Investment Stage 63. 00% $70 .00 63.3% $77.7 60.2% 53. 00% $60 .00 51.2% 43. 00% $50 .00 33. 00% $40 .00 23. 00% $30 .00 $49.6 $46.9 4.3% 6.1% 13. 00% $20 .00 3.0 0% $10 .00 $3.4 $0. 00
Slide 24: Consistency of New ARR Fuels Our Growth Algorithm
Consistency of New ARR Fuels Our Growth Algorithm Reliable, Resilient Growth Composition Existing Existing Customers Customer vs. New Logo 100% 100% 33% 29% 30% 22% 28% 28% 24% 25% 25% 24% 24% 24% ~30% ~25% 78% 27% 27% 27% 26% 25% 25% 71% 72% 72% 67% 70% ~25% 49% 50% 50% 49% 49% 50% ~70% ~50% 2020 2
Slide 25: Selectively Targeting Accretive, Bolt-on M&A
Selectively Targeting Accretive, Bolt-on M&A Acquisition Criteria e-Invoicing Acquisition: M&A growth is supplemental to • e-Invoicing / Continuous Transaction Control (CTC) • Vertex/ecosio solution enables seamless current long-term projections is a key indirect tax pain point for global customers
Slide 26: Investing in Growth through R&D
Investing in Growth through R&D Continuing to Enhance the Platform through Innovation Annual Research and Development Investment ($M) Expensed Capitalized $123.1 $100.7 $66.7 $83.9 $72.9 $48.5 $66.2 $43.8 $31.5 $26.6 $52.2 $56.4 $39.6 $41.4 $40.1 2020 2021 2022 2023 2024 17.7% 17.1% 17.1% 17.6% 18.5
Slide 27: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Strategically Focused on Indirect Tax Lifecycle Capital Allocation Priorities Other Organic Targeted Debt Return of Capital e-Invoicing Investments M&A Repayment to Shareholders Additional country coverage R&D/New Product Development Opportunistic Convert 202
Slide 28: Key Takeaways
Key Takeaways Highly attractive recurring revenue model, sticky customer relationships Durable growth algorithm delivering mid-high teen revenue growth Proven earnings leverage from disciplined investment cycle Disciplined capital allocation prioritizing targeted growth investment and bolt-on M&A 20
Slide 29: Q&A
Q&A YANERTEX’
Slide 30: Thank You
THANK YOU YANERTEX’
Slide 31: Appendix
= Appendix YANERTEX’
Slide 32: Adjusted EBITDA and Adjusted EBITDA margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA margin Reconciliation (1) ($ in Thousands) Adjusted EBITDA 2020 2021 2022 2023 2024 Net Income (Loss) (75,081) (1,479) (12,304) (13,093) (52,729) Interest expense (benefit), net 3,111 984 2,048 4,164 (4,137) Income tax expense (benefit) (32,788) (2,447) 2,174 (8,5
Slide 33: Free Cash Flow and Free Cash Flow Conversion Reconciliation
Free Cash Flow and Free Cash Flow Conversion Reconciliation (1) ($ in Thousands) Free Cash Flow: 2020 2021 2022 2023 2024 Cash provided by operating activities 59,543 90,289 63,848 74,332 164,821 Redemption of Converted SARs 22,889 - - - - Property and equipment additions (20,955) (31,706) (45,532)
Slide 34: Research & Development Expense Reconciliation
Research & Development Expense Reconciliation (1) ($ in Thousands) Non-GAAP Research and Development 2020 2021 2022 2023 2024 Expense: Research and development expense 54,340 44,018 41,877 58,212 66,666 Stock-based compensation expense (14,694) (2,620) (1,798) (5,994) (9,548) Transaction costs - - -