KING OF PRUSSIA, PA — Vertex, Inc. (NASDAQ: VERX) has announced robust financial results for the third quarter of 2024, highlighting significant revenue growth and strategic advancements. The company reported total revenues of $170.4 million, marking a 17.5% increase compared to the previous year, driven by a solid rise in software subscription and cloud revenues.
David DeStefano, Vertex’s President and CEO, expressed confidence in the company’s performance, stating, “The third quarter of 2024 was another great quarter for Vertex. Revenue was above the high end of our quarterly guidance, with mid-teens organic revenue growth. We were once again GAAP earnings positive with strong Adjusted EBITDA.”
A notable highlight for the quarter was Vertex’s acquisition of ecosio, an Austrian company specializing in e-invoicing and electronic data interchange (EDI). This move strengthens Vertex’s global cloud platform, enhancing its ability to manage end-to-end workflows for e-invoicing mandates and Value-Added Tax compliance. DeStefano noted the strategic importance of this acquisition, anticipating that upcoming e-invoicing regulations and a wave of ERP conversions will drive sustained growth for the company.
Financial results also revealed a strong Annual Recurring Revenue (ARR) of $576.8 million, reflecting a 19.0% year-over-year increase. The acquisition of ecosio contributed $8.1 million to this growth. Vertex also reported a net income of $7.2 million, a significant turnaround from a net loss in the same period last year, and an adjusted EBITDA of $38.6 million, resulting in a margin of 22.7%.
Looking ahead, Vertex has raised its financial guidance for 2024, forecasting fourth-quarter revenues between $175 million and $178 million, with an adjusted EBITDA of $33 million to $37 million. For the full year, the company expects revenues to reach up to $666.3 million, with a cloud revenue growth of 29%.
John Schwab, Chief Financial Officer, highlighted the positive outlook, attributing the increased guidance to strong third-quarter results and the strategic impact of the ecosio acquisition.
As Vertex positions itself for continued growth, its strategic acquisitions and expanding cloud capabilities underscore its commitment to driving innovation and delivering value to customers in an evolving regulatory landscape.
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