Q1 2024 Vertex Inc Earnings Call Transcript
Key Points
- Vertex Inc (VERX) exceeded the high end of financial guidance for revenue and adjusted EBITDA in Q1 2024.
- Total revenue increased by 18.1% and software subscription growth was 18.8% in the first quarter.
- Cloud revenue growth reached 28.3%, slightly ahead of the target for the full year.
- Adjusted EBITDA was $36.5 million, up 80% from the previous year's first quarter.
- Vertex Inc (VERX) delivered positive free cash flow in Q1, which is typically the lowest quarter for cash production.
- Despite positive results, the company faces ongoing challenges in integrating multiple systems for new clients due to complex environments.
- The company's gross revenue retention (GRR) was at the lower end of the targeted range (94% to 96%).
- There are uncertainties in the regulatory environment that could impact future performance.
- The company is still evaluating its options and developing partnerships in the e-invoicing space, indicating potential instability or lack of a definitive strategy.
- Vertex Inc (VERX) is dependent on the continuation of ERP migrations, such as SAP's ECC support phase-out, which could affect long-term sustainability if delayed or altered.
Greetings, and welcome to Vertex first-quarter 2024 earnings conference call. Please note this conference is being recorded. (Operator Instructions)
And now, I'll turn the conference over to Joe Crivelli, Vice President of Investor Relations. Mr. Crivelli, you may now begin.
Hello, and thanks for joining us to discuss Vertex's first-quarter financial results. I'm Joe Crivelli, Vice President, Investor Relations. David DeStefano, 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 financial results may differ due to risks and uncertainties. These risks and uncertainties are described in our filings with the Securities and Exchange Commission.
And in our remarks today, we will also refer to non-GAAP financial metrics. A reconciliation of these metrics to GAAP is provided in today's press release. The call is being recorded and will be available for replay on our investor relations
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