Vertex, Inc. (VERX) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event has been recorded. I would now like to turn the conference over to Mr. Joe Crivelli, Investor Relations from Vertex. Please go ahead. Hello, and thanks for joining us to discuss Vertex's first quarter financial results. 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 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-GAAP financial measures. A reconciliation of these non-GAAP metrics to GAAP is also provided in today's press release. This call is being recorded and will be available for replay on our Investor Relations website. I'll now turn the call over to David. Welcome, everyone, and thank you for joining us. Vertex executed well in the first quarter, getting 2025 off to a strong start. The consistency of our business, which we highlighted during our investor day in March, continued as expected. In addition, last week we announced an equity investment in Kintsugi, a fast-growing startup focused on applying AI technology to indirect tax in the small business sector. I'll discuss this in a moment. In the first quarter, revenue was $177.1 million, up 12.9% year-over-year. Subscription revenue grew 14.4%, and cloud revenue growth was strong at 29.6% in the first quarter. An adjusted EBITDA was $37.8 million, representing an EBITDA margin of 21.3%. This was above the high end of our guidance range for the quarter and sets us up well for 2025. In ...