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 $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.38%. A quarter ago, it was expected that this company would post earnings of $0.14 per share when it actually produced earnings of $0.15, delivering a surprise of 7.14%.Over the last four quarters, the company has surpas ...

Financial Performance - Total revenues for Q1 2025 were $177.1 million, representing a 12.9% year-over-year increase[4] - Software subscription revenues reached $150.8 million, up 14.4% year-over-year[4] - Cloud revenues grew to $80.2 million, marking a 29.6% year-over-year increase[4] - Annual Recurring Revenue (ARR) was $618.5 million, up 17.9% year-over-year, with a 15.1% growth excluding acquisitions[4] - Net income for Q1 2025 was $11.1 million, compared to $2.7 million in the same period last year[4] - Non-GAAP net income was $24.5 million, with a diluted earnings per share (EPS) of $0.15[4] - Adjusted EBITDA for Q1 2025 was $37.2 million, with an adjusted EBITDA margin of 21.0%[4] - Total revenues for Q1 2025 reached $177,062 thousand, a 12.9% increase from $156,781 thousand in Q1 2024[34] - Software subscriptions revenue increased to $150,761 thousand, up 14.4% from $131,830 thousand year-over-year[34] - Gross profit for Q1 2025 was $112,994 thousand, compared to $95,792 thousand in Q1 2024, reflecting a gross margin improvement[34] - Non-GAAP gross profit for Q1 2025 was $132,772,000, up from $113,735,000 in Q1 2024, representing a 16.7% increase[38] - Non-GAAP gross margin improved to 75.0% in Q1 2025, compared to 72.5% in Q1 2024[39] - Non-GAAP net income increased to $24,494,000 in Q1 2025, compared to $23,431,000 in Q1 2024, reflecting a 4.5% growth[40] - Adjusted EBITDA for Q1 2025 was $37,219,000, slightly up from $36,743,000 in Q1 2024, with an adjusted EBITDA margin of 21.0%[42] - Non-GAAP operating income remained stable at $31,339,000 in Q1 2025, compared to $31,737,000 in Q1 2024[40] - Non-GAAP diluted EPS for both Q1 2025 and Q1 2024 was $0.15[40] Cash Flow and Assets - Free cash flow for Q1 2025 was $14,805 thousand, down from $24,566 thousand in Q1 2024, primarily due to increased capital expenditures[36] - Cash and cash equivalents at the end of Q1 2025 were $270,395 thousand, down from $296,051 thousand at the end of Q4 2024[32] - Free cash flow for Q1 2025 was $(12,250,000), a decline from $4,502,000 in Q1 2024, resulting in a free cash flow margin of (6.9)%[42] Expenses - Research and development expenses increased to $16,534,000 in Q1 2025 from $13,472,000 in Q1 2024, marking a 22.8% rise[39] - Selling and marketing expenses rose to $41,818,000 in Q1 2025, up from $35,674,000 in Q1 2024, indicating a 17.5% increase[39] Guidance and Outlook - The company expects Q2 2025 revenues to be between $182 million and $187 million[11] - Full-year 2025 revenue guidance is projected between $760 million and $768 million, with cloud revenue growth expected at 28%[11] - The company is optimistic about its long-term market opportunity in indirect tax automation despite recent geopolitical events[2] Balance Sheet - Total current assets decreased to $504,962 thousand as of March 31, 2025, from $536,333 thousand as of December 31, 2024[32] - Total liabilities decreased to $953,654 thousand as of March 31, 2025, compared to $987,439 thousand as of December 31, 2024[32] - The company reported a change in fair value of acquisition contingent earn-outs of $(14,700) thousand in Q1 2025, indicating adjustments related to acquisitions[34]

Core Insights - Vertex, Inc. reported strong financial performance in Q1 2025, with total revenues of $177.1 million, reflecting a year-over-year increase of 12.9% [5] - The company is optimistic about its financial outlook for 2025, driven by strategic initiatives in e-invoicing and artificial intelligence [2][5] - Vertex's investment in Kintsugi AI is expected to enhance its R&D efforts and expedite the development of AI-driven products [2] Financial Performance - Total revenues for Q1 2025 were $177.1 million, up 12.9% from $156.8 million in Q1 2024 [5] - Software subscription revenues reached $150.8 million, a 14.4% increase year-over-year [5] - Cloud revenues grew significantly by 29.6% to $80.2 million [5] - Annual Recurring Revenue (ARR) was $618.5 million, up 17.9% year-over-year, with a growth of 15.1% excluding acquisitions [5] - Net income for Q1 2025 was $11.1 million, compared to $2.7 million in Q1 2024 [5][34] Key Metrics - Average Annual Revenue per direct customer (AARPC) increased to $126,534 from $121,720 a year ago [5] - Net Revenue Retention (NRR) was 109%, down from 112% a year ago [5] - Gross Revenue Retention (GRR) remained stable at 95% [5] - Adjusted EBITDA for Q1 2025 was $37.2 million, with an adjusted EBITDA margin of 21.0% [5][39] Guidance and Outlook - For Q2 2025, Vertex expects revenues between $182 million and $187 million, and Adjusted EBITDA between $35.5 million and $39.5 million [6][7] - The company anticipates continued financial momentum throughout 2025, supported by favorable market conditions for indirect tax automation [7]

Core Viewpoint - Vertex Pharmaceuticals experienced a significant stock decline after missing Wall Street's revenue and earnings estimates for Q1, but this sell-off presents a buying opportunity for investors [1][2]. Financial Performance - Vertex reported Q1 revenue of $2.77 billion, a 3% increase year over year, but below the expected $2.83 billion [2]. - Adjusted earnings per share were $4.06, missing the consensus estimate of $4.29 [2]. Operational Updates - The company announced a temporary pause in the multiple ascending dose portion of its phase 1/2 study for mRNA therapy VX-522 due to a tolerability issue [3][5]. - Vertex attributed weaker-than-expected financial results partly to illegal copycat products in Russia, although it believes this issue is isolated to that market [3]. Guidance and Future Outlook - Vertex raised the lower end of its full-year revenue guidance for 2025 to between $11.85 billion and $12 billion, up from a previous lower end of $11.75 billion [4]. - The management remains optimistic about the investment thesis despite the setbacks with VX-522 [5]. Product Developments - Vertex's new cystic fibrosis therapy, Alyftrek, is receiving positive feedback from physicians and patients, with expectations for a switch from existing CF drugs [7]. - The company received a positive opinion from the CHMP for Alyftrek, aiming for European Commission approval in the second half of 2025 [8]. - Vertex's new non-opioid pain drug, Journavx, is expected to see increased sales volume in the coming months, despite minimal sales reported in Q1 [10]. Pipeline Prospects - Vertex plans to file for regulatory approvals for zimislecel in treating severe Type 1 diabetes next year, pending positive study results [11]. - The company may also seek U.S. accelerated approval for povetacicept in treating IgA nephropathy in the first half of 2026, contingent on favorable interim data [11]. Risk Management - Vertex's CFO indicated that the company has low exposure to tariffs due to its geographically diverse supply chain and manufacturing primarily in the U.S. [12]. Investment Sentiment - Despite the revenue and earnings miss, Vertex is viewed as a strong investment opportunity, with expectations for significant returns driven by the adoption of Alyftrek and the potential success of Journavx [13][14].

Core Insights - Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) reported Q1 earnings that were decent but fell short of analyst estimates for both revenue and earnings [1] Financial Performance - The company experienced positive earnings surprises, which statistically have shown strong predictive power of stock price movements in the short term [1] Analyst Background - Dilantha De Silva, an experienced equity analyst with over 10 years in the investment industry, focuses on small-cap stocks often overlooked by Wall Street analysts [1]

Shares of Vertex Pharmaceuticals (VRTX -11.91%) were sinking 11.9% as of 10:18 a.m. ET on Tuesday. The sharp decline came after the company announced its 2025 first-quarter results on Monday evening.Vertex reported Q1 revenue of $2.77 billion, up 3% year over year. It posted adjusted earnings of $1.24 billion, or $4.76 per share, up from $1.05 billion, or $4.06 per share, in the prior-year period. However, both top- and bottom-line numbers missed the consensus Wall Street estimates. In addition, Vertex reve ...

Core Viewpoint - Vertex's Q1 2024 financial results showed slower growth compared to previous quarters, with revenue rising only 3% year-over-year, impacted by a decline in sales in Russia due to intellectual property issues [2][3]. Financial Performance - Total revenue for Q1 2024 was $2.69 billion, increasing to $2.77 billion in Q1 2025, reflecting a 3% growth but missing expectations [1]. - Adjusted earnings per share fell from $4.76 to $4.06, a 15% decrease, also missing expectations [1]. - Trikafta/Kaftrio revenue grew by 2%, from $2.48 billion to $2.54 billion, while other revenue increased by 9%, from $207 million to $225 million [1]. Challenges and Costs - Research and development expenses surged by approximately $190 million compared to the previous year, contributing to the decline in adjusted earnings [3]. - Overhead costs rose by 16%, further impacting the company's profitability [3]. - An asset impairment charge of $379 million was recorded due to the decision not to advance the VX-264 program for type 1 diabetes [3]. Management Outlook - CEO Dr. Reshma Kewalramani expressed optimism about the business's future, highlighting the launch of new treatments and ongoing success in existing markets [4]. - The company is focusing on the new Journavx treatment for acute pain and continued growth in cystic fibrosis and sickle cell disease treatments [4]. Market Reaction - Following the earnings report, Vertex's shares dropped about 3% in after-hours trading, as investors had anticipated stronger growth [5]. - The stock had previously increased by approximately 25% since late December, leading to a pullback after the earnings miss [5]. Future Guidance - Vertex raised the lower end of its full-year 2025 revenue forecast by $100 million, now projecting a range of $11.85 billion to $12 billion, aligning with analyst expectations [6]. - Investors are advised to monitor potential impacts from tariffs or trade barriers, as current guidance does not account for significant cost impacts from anticipated tariffs [7].

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KING OF PRUSSIA, Pa., April 30, 2025 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), a global provider of indirect tax technology solutions, today announced it has completed a strategic investment in Kintsugi, a San Francisco-based, AI-native startup focused on automating sales tax compliance for small and mid-size businesses (SMBs). Terms of the agreement include a $15 million minority investment representing a 10 percent ownership interest, as well as IP sharing and a commerci ...

Core Viewpoint - Vertex (VERX) is positioned well to continue its trend of beating earnings estimates, with a history of positive surprises in recent quarters [1][5]. Earnings Performance - In the most recent quarter, Vertex reported earnings of $0.15 per share, exceeding the expected $0.14, resulting in a surprise of 7.14% [2]. - For the previous quarter, Vertex's earnings were $0.16 per share against an expectation of $0.14, leading to a surprise of 14.29% [2]. Earnings Estimates - There has been a favorable change in earnings estimates for Vertex, indicated by a positive Zacks Earnings ESP (Expected Surprise Prediction) of +11.70%, suggesting increased analyst optimism about its near-term earnings potential [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat, with historical data showing that nearly 70% of stocks with this combination produce a positive surprise [6][8]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate than earlier predictions [7].