Vertex, Inc. Business Overview and Performance

Vertex, Inc. is a leading provider of tax, accounting, and compliance solutions for businesses. Founded in 1978, the company has a rich history of innovation and growth.

Vertex has a strong presence in the tax and accounting industry, with a wide range of solutions that help businesses manage their tax obligations and comply with regulations. The company's solutions are used by over 15,000 customers worldwide.

Vertex's performance has been impressive, with significant revenue growth over the years. In 2020, the company reported revenue of $533 million, a 10% increase from the previous year.

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Vertex, Inc. reported a total revenue of $177.1 million for Q1 2025, representing a 12.9% year-over-year increase.

This growth was driven by strong performance in its recurring revenue streams, with subscription revenue growing by 14.4% YoY to $150.8 million. Cloud revenue also showcased significant momentum, increasing by 29.6% YoY to $80.2 million.

Here's a breakdown of Vertex's revenue streams:

The company's annual recurring revenue (ARR) grew 17.9% YoY to $618.5 million, with organic ARR growth excluding acquisitions at 15.1%. Vertex ended the quarter with over $270.4 million in unrestricted cash and cash equivalents, plus $300 million of unused availability under its line of credit.

The financial metrics of Vertex Inc. are a key indicator of the company's health and performance. The stock price is currently at $25.70.

The market capitalization of Vertex Inc. is a significant factor in its overall value. It's not explicitly stated in the provided article sections, but we can infer that the market capitalization is substantial given the company's revenue and growth.

The revenue of Vertex Inc. is a crucial metric for understanding its financial performance. In Q1 2025, the company reported total revenue of $177.1 million.

Here's a breakdown of the company's revenue streams:

The company's Adjusted EBITDA margin is a strong indicator of its profitability. In Q1 2025, it reached 21.3%.

The annual recurring revenue (ARR) of Vertex Inc. is a key metric for understanding its subscription-based business. In Q1 2025, it grew 17.9% YoY to $618.5 million.

The company's net recurring revenue (NRR) is also a significant metric, indicating strong retention and expansion within its existing customer base. In Q1 2025, it remained strong at 109%.

The gross recurring revenue (GRR) of Vertex Inc. is another important metric, indicating customer retention. In Q1 2025, it stood at 95%, within the company's targeted best-in-class range of 94% to 96%.

The average annual revenue per customer (AARPC) for Vertex Inc. is a key metric for understanding its customer base. In Q1 2025, it increased 14.1% YoY to $140,943.

The company's scaled customer count is a significant metric, indicating its success in the underpenetrated enterprise market. In Q1 2025, it grew 15% YoY.

The company's gross margins have improved significantly, reaching 75% in Q1 2025. This is up from 72.5% in the prior year's first quarter.

The operating expenses of Vertex Inc. have increased, with research and development expense rising to $16.5 million, or 21.1% of revenue when including capitalized software spend.

The company's operating cash flow was $14.8 million in Q1 2025, while its free cash flow was negative $12.3 million. However, the company ended the quarter with over $270.4 million in unrestricted cash and cash equivalents, plus $300 million of unused availability under its line of credit.

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Ratings are a crucial part of financial analysis, and there are several types to be aware of.

A super rating is the result of a weighted average of rankings based on Global Valuation, EPS Revisions, and Visibility.

The composite rating is calculated by averaging rankings based on Fundamentals, Valuation, Financial Estimates Revisions, Consensus, and Visibility. At least 4 of these 5 ratings must be covered for the calculation to be performed.

The company's performance is assessed through various metrics, including Capital Efficiency, Quality of Financial Reporting, and Financial Health. At least 2 of these 3 ratings must be covered for the calculation to be performed.

A super composite rating is the result of a weighted average of rankings based on Fundamentals, Global Valuation, EPS Revisions, and Visibility.

The composite rating is also based on an average of rankings, but this time it's Fundamentals, Valuation, Financial Estimates Revisions, Consensus, and Visibility. The company must be covered by at least 4 of these 5 ratings for the calculation to work.

Each rating has its own set of criteria, and it's essential to review the associated descriptions to understand the methodology behind the calculations.

Vertex, Inc. has a seasoned leadership team in place, with a mix of experience and fresh perspectives. David DeSteffano has been serving as CEO since 2016, bringing over 62 years of age and a wealth of knowledge to the role.

The company's finance team is led by John Schwab, who took on the Director of Finance/CFO position in 2019 at the age of 57. This experience will undoubtedly help guide the company's financial decisions.

A key area of focus for Vertex, Inc. is technology and research and development, with two individuals holding the Chief Tech/Sci/R&D Officer title. Ben Askin has been in this role since 2019, although his age is not publicly disclosed. Salvatore Visca took on the same role in 2021 at the age of 59.

Stefanie Thompson has been the company's Treasurer since 1992, an impressive 29 years of service. Her long-term commitment to the company is a testament to its stability and growth.

The Executive Committee is a crucial part of any organization, and at Vertex Inc., it's no exception. David DeStefano is the President and Chief Executive Officer of Vertex Inc., a position he's held since October 31, 2016.

The team is led by David DeStefano, who has been at the helm since 2016. He's a seasoned leader with a wealth of experience in the field.

Here's a look at the current members of the Executive Committee:

John Schwab serves as the Director of Finance and Chief Financial Officer, a position he's held since December 31, 2019.

The composition of the board of directors is a crucial aspect of a company's leadership and management. David DeSteffano serves as the Chairman, a position he has held since June 28, 2020.

The board consists of seven members, each with a unique title and level of experience. Amanda Radcliffe and Stefanie Thompson have been board members since 1992, demonstrating their long-term commitment to the company.

Amanda Radcliffe and Stefanie Thompson are two of the longest-serving board members, with over 30 years of experience each. Eric Andersen has been a board member since December 31, 2007.

The board members bring a diverse set of skills and expertise to the table. J. Richard Stamm, for example, has a wealth of experience, having been a board member since December 31, 2018.

Here is a list of the board members and their titles:

A top employee is someone who consistently delivers high-quality work, takes initiative, and demonstrates a strong work ethic. They are the backbone of any successful organization.

Research shows that top employees are 2-3 times more productive than average employees, resulting in significant cost savings and increased efficiency.

They are also highly adaptable and can pivot to new priorities and tasks with ease. This flexibility allows them to stay ahead of the curve and make meaningful contributions to the team.

Studies have shown that top employees are more likely to be engaged and motivated, with a 25% higher level of job satisfaction compared to their average counterparts.

Vertex holds a dominant and highly respected position in the tax technology market, particularly within the realm of indirect tax.

Their market leadership is built on several key differentiators, including unrivaled tax content, a comprehensive solution suite, and scalability and enterprise-grade capabilities.

Vertex offers a broad and deep portfolio of solutions covering the entire tax lifecycle, from transaction-level tax determination to corporate income tax and payroll tax.

This end-to-end capability allows businesses to leverage a single, integrated platform for their diverse tax management needs, fostering efficiency and data consistency.

Some of the key industries that Vertex has cultivated a profound understanding of include retail, manufacturing, telecommunications, and financial services.

Their solutions are tailored to meet unique business needs and regulatory requirements in these industries, providing a high level of accuracy and compliance.

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Industry Analytics is a crucial aspect of understanding the dynamics of any industry. It helps businesses make informed decisions by providing valuable insights into market trends and consumer behavior.

The global e-commerce market size is projected to reach $6.5 trillion by 2023, with online sales growing at a rate of 14.5% per annum. This rapid growth is driven by increasing internet penetration and changing consumer preferences.

In the retail industry, data analytics plays a vital role in optimizing supply chain management and inventory control. Companies like Amazon and Walmart use advanced analytics to predict demand and adjust their inventory levels accordingly.

The use of data analytics in the healthcare industry has led to improved patient outcomes and reduced costs. For instance, hospitals can use analytics to identify high-risk patients and provide personalized treatment plans.

In the finance industry, data analytics is used to detect fraud and prevent money laundering. Advanced algorithms can analyze large datasets to identify suspicious transactions and prevent financial losses.

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Vertex holds a dominant and highly respected position in the tax technology market, particularly within the realm of indirect tax.

Their market leadership is built on several key differentiators, including unrivaled tax content, a comprehensive solution suite, and scalability and enterprise-grade capabilities.

Vertex's proprietary tax content database is the gold standard in the industry, with a vast repository of taxability rules, rates, and regulations continuously updated by a dedicated team of tax professionals.

This depth and accuracy are critical for businesses operating in multiple jurisdictions with complex tax landscapes, ensuring compliance and minimizing risk.

Vertex offers a broad and deep portfolio of solutions covering the entire tax lifecycle, from transaction-level tax determination to corporate income tax and payroll tax.

Their solutions are built to scale with business growth and adapt to evolving tax regulations, making them a reliable choice for businesses of all sizes.

Here are some key aspects of Vertex's market position:

These differentiators have allowed Vertex to serve as a critical strategic partner for businesses seeking to navigate the intricate and ever-changing world of tax compliance and strategy.

A SIC code is a numerical classification system used to identify industries and businesses. It's a way to categorize companies based on their primary activity.

The SIC code is used by the government and other organizations to track and analyze economic data. For example, Vertex Inc. has a SIC code of 737, which falls under the broader category of 73.

SIC codes can be useful for businesses and researchers who want to understand market trends and competition. They can also help identify potential partners or suppliers.

The SIC code for Vertex Inc. is specifically 737, which indicates that the company is primarily engaged in computer programming and software development.

As we take a closer look at Vertex, Inc., it's interesting to see who holds the reins within the company. Amanda Radcliffe is the largest shareholder, owning 32.7% of the company's equities.

Amanda Radcliffe's stake in the company is substantial, with a valuation of 821 million euros.

Stefanie Thompson and Stefanie W Lucas are also significant shareholders, with 32.51% and 1.564% stakes respectively.

Here's a breakdown of the top shareholders:

Constance A Thompson, on the other hand, holds a much smaller stake, with only 0.0889% of the company's equities.

Vertex, Inc. is a company with a diverse range of job openings.

The company has multiple internship opportunities, including Customer Experience Intern, Sales Enablement Intern, Inside Sales Intern, and Full Stack Developer Intern, all of which are located in the United States and offer a salary range of $22.00 to $24.00.

Some of the job openings have specific salary ranges, such as Principal SAP Technical Consultant, which is located in the United States and offers a salary range of $131,600.00 to $171,100.00.

The company also has job openings for senior-level positions, including Senior Director - e-Invoicing and Compliance Services, which is located in the United Kingdom, and Global E-invoicing Regulatory Intelligence Senior Manager, which is located in both the United States and São Paulo, Brazil, with salary ranges of $157,900.00 to $205,400.00 and $157,900.00 to $205,400.00 respectively.

Here is a list of some of the job openings mentioned:

Vertex, Inc. has a strong presence in the United States, with sales reaching 613 million in 2024.

The company's sales in the United States have been steadily increasing, with a growth rate of over 70% from 2020 to 2024.

In contrast, Vertex, Inc.'s sales outside of the United States have also been growing, reaching 53.34 million in 2024.

Here's a breakdown of Vertex, Inc.'s geographical sales:

Vertex, Inc.'s sales outside of the United States have been increasing at a slower rate than those in the United States, but the company is still expanding its global presence.

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Vertex, Inc. is navigating a stable operating environment, but the company is closely monitoring certain factors and potential challenges. Macroeconomic volatility is one such challenge, with Vertex noting that it has not observed any direct impact on buyer behavior or sales cycles, but is keeping a close eye on the pipeline.

The resilience of tax compliance, even during economic downturns, due to government audit and enforcement actions, is a mitigating factor. This means that Vertex's business can withstand some economic fluctuations.

Vertex has acknowledged some attrition among lower-ARPU customers, particularly in the "direct" customer segment. However, the company emphasizes that its primary focus is on scaled customers, and GRR remains strong, indicating that this attrition does not significantly impact overall revenue retention.

The company is also anticipating a slower build for e-invoicing in 2025, with significant revenue acceleration expected in 2026 as more countries implement mandates and Vertex onboards sufficient customers.

Vertex's financial momentum is expected to build throughout the balance of 2025, with growth reaccelerating due to ongoing cloud migration and cross-selling of new offerings. The company has reiterated its full-year 2025 guidance, signaling confidence in continued growth.

Here are some key challenges and outlook points to keep in mind:

Vertex expects financial momentum to build throughout the balance of 2025, with growth reaccelerating due to ongoing cloud migration and cross-selling of new offerings. The company is targeting a 110% net retention rate by year-end.