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]

Now, let's get back to our question. Could this smaller biotech follow in the footsteps of its bigger partner? Their paths are a bit different: Vertex focused on CF for a number of years, building a billion-dollar business that's allowed it to fund programs in other areas. CRISPR Therapeutics has been applying its technology across treatment areas in preclinical and clinical studies for some time. CRISPR Therapeutics could start reporting product revenue soon. Vertex remains an excellent investment, but inv ...

A conference call replay will be available approximately one hour after the call by dialing 1-412-317-6671 and referencing passcode 10190684, or via the Company's Investor Relations website. The replay will expire on August 21, 2024 at 11:59 p.m. Eastern Time. KING OF PRUSSIA, Pa., July 11, 2024 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX), a leading global technology provider of indirect tax solutions, today announced that it will release second quarter 2024 financial results before the market opens on W ...

KING OF PRUSSIA, Pa., July 11, 2024 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX), a leading global technology provider of indirect tax solutions, today announced that it will release second quarter 2024 financial results before the market opens on Wednesday, August 7, 2024. A conference call to discuss the results will be held at 8:30 a.m. Eastern Time that same day. Vertex, Inc. is a leading global provider of indirect tax solutions. The Company's mission is to deliver the most trusted tax technology ena ...

AndreyPopov Since my last look in December, Vertex's (NASDAQ:VRTX) stock performance has mirrored SPY, up 18%. My focus back then followed Vertex's VX-548 Phase 2 data in diabetic peripheral neuropathy (DPN), in which the oral selective inhibitor of the NaV1.8 sodium channel was on par with the popular and blockbuster neuropathy drug, Lyrica. The company's potential in DPN, among other prospects, including their existing fortress within the cystic fibrosis market, prompted a "buy" rating. In the days preced ...

Part I - Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Vertex reported strong Q1 2024 financial performance, achieving net income and improved operating cash flow [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Key financial metrics for Q1 2024 show significant revenue growth and a return to profitability Financial Metric | Financial Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $156,781 | $132,751 | +18.1% | | **Gross Profit** | $95,792 | $81,004 | +18.3% | | **Loss from Operations** | $(1,565) | $(8,929) | +82.5% | | **Net Income (Loss)** | $2,684 | $(18,132) | N/A | | **Net Income (Loss) per Share, diluted** | $0.02 | $(0.12) | N/A | Balance Sheet Item | Balance Sheet Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $755,802 | $759,927 | | Cash and cash equivalents | $56,134 | $68,175 | | **Total Liabilities** | $505,672 | $506,946 | | Deferred revenue, current | $296,845 | $290,143 | | **Total Stockholders' Equity** | $250,130 | $252,981 | Cash Flow Activity | Cash Flow Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $24,566 | $3,491 | | **Net cash used in investing activities** | $(19,535) | $(14,297) | | **Net cash used in financing activities** | $(1,153) | $(1,531) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes provide insights into revenue streams, stock-based compensation, and a significant post-quarter convertible notes offering Revenue Source | Revenue Source | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Growth | | :--- | :--- | :--- | :--- | | Software licenses | $69,994 | $62,808 | +11.4% | | Cloud subscriptions | $61,836 | $48,206 | +28.3% | | **Total Software Subscriptions** | **$131,830** | **$111,014** | **+18.8%** | | Services | $24,951 | $21,737 | +14.8% | | **Total Revenues** | **$156,781** | **$132,751** | **+18.1%** | - Total stock-based compensation expense for Q1 2024 was **$16.3 million**, an increase from **$11.4 million** in Q1 2023, distributed across various departments[86](index=86&type=chunk) - Subsequent to the quarter end, on April 26, 2024, the company closed a private offering of **$345 million** in 0.750% Convertible Senior Notes due 2029, with net proceeds of approximately **$333.7 million**[93](index=93&type=chunk)[98](index=98&type=chunk) - The company's effective income tax rate was **245.0%** for Q1 2024, resulting in a tax benefit of **$4.5 million**, contrasting with a **(111.4)%** rate and **$9.6 million** tax expense in Q1 2023 due to tax benefits from stock-based awards[89](index=89&type=chunk)[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth driven by software subscriptions, improved profitability, and positive trends in key business metrics [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Revenue growth, particularly in software subscriptions, led to improved gross profit and a significant reduction in operating loss, resulting in net income - The **18.8%** increase in software subscriptions revenue was primarily driven by cross-selling to existing customers and expanded use, with new customer revenue accounting for **5.6%** of total software subscriptions revenue in Q1 2024[146](index=146&type=chunk) - Cost of software subscriptions revenues increased **20.7%** YoY, mainly due to higher personnel costs and a **$2.9 million** increase in depreciation and amortization of capitalized software and acquired intangible assets[148](index=148&type=chunk) - Selling and marketing expenses rose **13.3%** YoY, driven by a **$5.8 million** increase in payroll and related expenses, partially offset by decreased advertising and promotional spending[151](index=151&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial cash, an undrawn credit line, and significantly enhanced capital from a recent convertible notes offering Cash Flow Summary | Cash Flow Summary | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $24,566 | $3,491 | | Net cash used in investing activities | $(19,535) | $(14,297) | | Net cash used in financing activities | $(1,153) | $(1,531) | - The company believes its existing cash, line of credit, and expected access to capital markets are sufficient to meet its operating and capital requirements for the next 12 months and beyond[159](index=159&type=chunk) - In April 2024, the company closed a private offering of **$345.0 million** in Convertible Senior Notes, significantly enhancing its capital resources[161](index=161&type=chunk)[174](index=174&type=chunk) [Key Business Metrics](index=56&type=section&id=Key%20Business%20Metrics) Key business metrics demonstrate strong growth in Annual Recurring Revenue and Net Revenue Retention, alongside significant improvements in non-GAAP profitability Metric | Metric | As of March 31, 2024 | As of March 31, 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $524.5 million | $446.5 million | +17.5% | | Average Annual Revenue Per Customer (AARPC) | $121,720 | $104,370 | +16.6% | | Net Revenue Retention Rate (NRR) | 112% | 110% | +2 p.p. | | Gross Revenue Retention Rate (GRR) | 95% | 96% | -1 p.p. | Non-GAAP Metric | Non-GAAP Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Adjusted EBITDA | $36.7 million | $20.2 million | | Adjusted EBITDA Margin | 23.4% | 15.2% | | Free Cash Flow | $4.5 million | $(10.6) million | | Free Cash Flow Margin | 2.9% | (8.0)% | [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from variable-rate debt and foreign currency risk from international operations, partially hedged by forward contracts - A **100 basis point** increase in the bank prime or SOFR rates is projected to increase annual interest expense by **$0.4 million** on outstanding borrowings[207](index=207&type=chunk) - Approximately **4%** of revenues in Q1 2024 were denominated in currencies other than the U.S. Dollar, with increased exposure to the Brazilian Real due to the Systax acquisition[208](index=208&type=chunk)[209](index=209&type=chunk) [Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no material changes to internal controls over financial reporting - The principal executive officer and principal financial officer concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective at a reasonable assurance level[211](index=211&type=chunk) Part II - Other Information [Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in ongoing legal proceedings against a competitor, alleging unfair competition and trade secret misappropriation - The company filed a complaint against Avalara, Inc. alleging unfair competition and trade secret misappropriation, seeking both injunctive relief and monetary damages[215](index=215&type=chunk) [Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) Key risks include increased indebtedness from recent convertible notes, potential impacts on cash flow, and stock price volatility from associated hedging activities - In April 2024, the company incurred an additional **$345.0 million** in debt through the issuance of Convertible Senior Notes, which significantly increases its total indebtedness[218](index=218&type=chunk) - The company's indebtedness could limit its ability to obtain additional financing, require a substantial portion of cash flow for debt service, and reduce flexibility in business planning[220](index=220&type=chunk) - The Capped Call Transactions entered into in connection with the notes offering expose the company to credit risk from financial institution counterparties, and their hedging activities could affect the value of the Class A common stock[232](index=232&type=chunk)[233](index=233&type=chunk)[235](index=235&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - There were no unregistered sales of equity securities or use of proceeds to report for the period[236](index=236&type=chunk) [Other Information](index=71&type=section&id=Item%205.%20Other%20Information) Director Eric Andersen terminated a Rule 10b5-1 trading arrangement during the quarter, with no other similar changes reported - Director Eric Andersen terminated a Rule 10b5-1 trading plan on March 4, 2024[239](index=239&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required certifications and Inline XBRL documents