Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks bey ...

For Immediate Releases Chicago, IL – August 9, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Vertex Pharmaceuticals Incorporated (VRTX) , CRISPR Therapeutics' (CRSP) and Moderna (MRNA) . Here are highlights from Friday's Analyst Blog: Here's How to Play Vertex ( VRTX Quick Quote - Free Report) Stock After Q ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $161.1 million, representing a 15.3% year-over-year increase [5][11] - Adjusted EBITDA was $38.5 million, with an adjusted EBITDA margin of 23.9%, reflecting a significant increase of 75.2% year-over-year [11][13] - Free cash flow reached a record $36.9 million, up from $4 million in Q1 2024 [5][11] - Net Revenue Retention (NRR) was 110%, down 1 percentage point from the previous year [5][11] - Average Annual Revenue per Customer (AARPC) increased by 13% year-over-year to $123,560 [6][11] Business Line Data and Key Metrics Changes - Software subscription revenue grew by 15.8% to $136.4 million, while services revenue increased by 12.8% to $24.7 million [11] - Cloud revenue was $66.3 million, up 29.6% year-over-year, exceeding full-year guidance [11] - Annual Recurring Revenue (ARR) including Systax was $548.4 million, up 17.3% year-over-year [6][11] Market Data and Key Metrics Changes - The company noted a strategic slowdown in implementation services, impacting overall revenue growth [6][11] - The second quarter saw strong new logo revenue, with June being the best month of the year for cross-sell and upsell activities [5][6] Company Strategy and Development Direction - The acquisition of ecosio for $69 million aims to enhance e-invoicing capabilities and address global reporting compliance challenges [3][4] - The company is focusing on integrating AI capabilities to improve tax categorization processes and enhance its tax content database [4][5] - The strategic direction emphasizes sustaining profit-driven growth and expanding market opportunities through technology leadership [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for the second half of 2024, narrowing full-year revenue guidance to the upper range [5][14] - The company anticipates continued strong execution and visibility into upcoming opportunities, despite a temporary impact from integration expenses related to ecosio [6][14] - Management acknowledged slower-than-expected migration of SAP ECC customers to HANA S4, affecting customer metrics [6][34] Other Important Information - The company ended Q2 2024 with $325.5 million in unrestricted cash and no bank debt, indicating strong liquidity [11] - The ecosio acquisition is expected to contribute approximately $15 million in revenue in the first full year after closing [11][14] Q&A Session Summary Question: How would you break down the lower cross-sell and upsell activity? - Management indicated that the softness was due to a strong Q4 in the previous year, leading to depleted budgets and a slower start to cross-sell and upsell activities [16][18] Question: What factors contributed to the decline in NRR? - The decline was primarily driven by lower cross-sell and upsell activity, which was expected after a strong previous quarter [19][20] Question: Can you provide details on the ecosio acquisition? - The acquisition is purely regulatory with no open bidding process, and it is expected to enhance the company's capabilities in e-invoicing and compliance [22][23] Question: What is the growth rate of ecosio? - While specific growth rates were not disclosed, management noted that ecosio has shown impressive growth, which was a key factor in the acquisition [30] Question: How do you view the current SAP ecosystem and upgrade cycles? - Management noted that larger companies are moving first, while mid-sized companies are taking a more cautious approach, impacting expected upticks in revenue [34][35] Question: What are the strategic priorities for the next 12 months? - The focus will be on successfully integrating recent acquisitions and leveraging AI to enhance customer experience and platform capabilities [49][50]

Vertex (VERX) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 15.38%. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.15, delivering a surprise of 15.38%. Over the last four quarters, the company has surp ...

KING OF PRUSSIA, Pa., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) ("Vertex" or the "Company"), a global provider of tax technology solutions, today announced the acquisition of ecosio, a leading B2B integration provider specializing in electronic data interchange (EDI) and e-invoicing. The closing is pending customary Austrian regulatory approval. The acquisition advances a shared vision to accelerate global commerce and deliver a single, scalable platform for automating business transacti ...

KING OF PRUSSIA, Pa., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) ("Vertex" or the "Company"), a global provider of tax technology solutions, today announced the acquisition of ecosio, a leading B2B integration provider specializing in electronic data interchange (EDI) and e-invoicing. The closing is pending customary Austrian regulatory approval. The acquisition advances a shared vision to accelerate global commerce and deliver a single, scalable platform for automating business transacti ...

Core Insights - Vertex, Inc. reported strong financial results for Q2 2024, highlighting its earnings power and operational efficiency, with significant growth in revenues and cash flow [2][3] - The company completed a $345 million convertible debt offering and made strategic acquisitions to enhance its technology and service offerings [2][3] Financial Performance - Total revenues reached $161.1 million, a 15.3% increase year-over-year [3] - Software subscription revenues were $136.4 million, up 15.8% year-over-year [3] - Cloud revenues grew by 29.6% to $66.3 million [3] - Annual Recurring Revenue (ARR) was $548.4 million, reflecting a 17.3% year-over-year increase, with a notable contribution from the acquisition of Systax [3] - Net income was $5.2 million, compared to a net loss of $(6.9) million in the same period last year [3] - Adjusted EBITDA was $38.5 million, with an adjusted EBITDA margin of 23.9%, up from 15.7% year-over-year [3][29] Strategic Initiatives - The company acquired tax-specific AI technology to improve tax mapping management [2] - Vertex announced its intent to acquire ecosio GmbH, enhancing its e-invoicing capabilities [2] Financial Outlook - For Q3 2024, Vertex expects revenues between $164 million and $167 million and adjusted EBITDA of $33 million to $35 million [4] - For the full year 2024, the revenue guidance is narrowed to $654 million to $660 million, with cloud revenue growth projected at 28% [5]

Shares of the rare disease drugmaker are already up more than 40% over the past year. Except for the last several days, the past 12 months have been pretty good for stocks across the board and especially successful for Vertex Pharmaceuticals (VRTX -3.55%). Shares of the biotech stock surged by 42% during the 12 months ended Aug 5. Now that it's already risen a great deal, investors are wondering if they've missed the boat on this stock. Can Vertex Pharmaceuticals stock keep rising in the years ahead or is i ...

Core Viewpoint - Vertex Pharmaceuticals reported a net loss of $3.6 billion in Q2, primarily due to a significant acquisition charge, but the underlying business remains strong with product revenue growth [1][4][6]. Financial Performance - The company posted a net loss of $3.6 billion based on GAAP and a non-GAAP loss of $3.3 billion [1]. - Product revenue increased by 6% year over year, driven by the performance of Trikafta/Kaftrio [3]. - Excluding the acquisition-related charge of approximately $4.4 billion, Vertex's profit for Q2 would have been around $800 million [4]. Acquisition Impact - The loss was largely attributed to the $5 billion acquisition of Alpine Immune Sciences, which closed in May [4]. - The acquisition adds the experimental drug povetacicept to Vertex's pipeline, targeting IgA nephropathy and potentially other autoimmune diseases [5]. Future Outlook - Vertex raised its full-year product revenue guidance to between $10.65 billion and $10.85 billion, up from a previous range of $10.55 billion to $10.75 billion [6]. - The company anticipates revenue from the recently launched gene editing therapy Casgevy, which has received regulatory approvals in multiple regions [8]. Upcoming Catalysts - Vertex has significant upcoming catalysts, including FDA decisions on vanzacaftor and suzetrigine, with PDUFA dates set for January 2025 [9][10]. - The company is also set to begin late-stage studies for suzetrigine in treating diabetic peripheral neuropathy this quarter [11].

Core Insights - The 2024 Mid-Year Sales Tax Rates and Rules report highlights a significant increase in local tax rate changes, with a 67% year-over-year rise in city-level sales tax adjustments [1][5] - The report indicates a growing complexity in tax compliance for businesses due to the proliferation of fees and the ongoing trend of cities leveraging sales taxes [2][4] Local Tax Trends - In the first half of 2024, there were 159 authorized sales tax rate changes at the city level, compared to 95 in the same period of 2023, marking a dramatic increase [5] - The establishment of new taxing cities (30) and district taxes (77) in early 2024 reflects a trend where local governments are more agile in implementing new taxes compared to state-level changes [5] - Local governments are raising sales tax rates significantly, with three times more county-level increases than decreases and twelve times more city increases than decreases [5] Fee Proliferation - The number of various fees implemented by states has surged from approximately 400 two years ago to around 1,400 today, indicating a growing trend in specialized fees [5] Global Tax Trends - Globally, while most nations are avoiding increases in VAT rates, there is an expected rise in environmental taxes, particularly carbon-related fees in the EU [7] - The global focus on digital VAT initiatives is complicating international operations for businesses [8] Implications for Tax Management - The increasing complexity in business structures and the rise of new fees necessitate a more agile and technologically advanced approach to tax management [8] - Indirect tax teams must update software systems, streamline invoicing processes, and navigate a complex compliance landscape across multiple jurisdictions [9]