Have you been paying attention to shares of Vertex (VERX) ? Shares have been on the move with the stock up 28.9% over the past month. The stock hit a new 52-week high of $55.52 in the previous session. Vertex has gained 104.7% since the start of the year compared to the 29.2% move for the Zacks Computer and Technology sector and the 34.2% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed ...

Shares of Vertex, Inc. (VERX) , a leader in tax compliance and automation software, have skyrocketed 105% year to date (YTD). This impressive rally has placed Vertex among the top performers in the broader technology sector, vastly outperforming both the Zacks Internet - Software industry and The Technology Select Sector SPDR Fund (XLK) ETF, which posted gains of 32.6% and 22%, respectively.YTD Price Return PerformanceImage Source: Zacks Investment ResearchWhile such a rally raises questions about the stock ...

Vertex Pharmaceuticals (NASDAQ: VRTX ) reported better than expected earnings on the 4th of November with the stock surging over 5%. The company beat both revenue and earnings estimates, while raising its 2024 guidance, as sales increased 12% on a year-over-year basis. The short-lived rallyBrendan, a Pennsylvanian by birth:-Completed a Ph.D. at Stanford University in the field of organic synthesis (2009). -Worked for a major pharmaceutical company (Merck, 2009-2013).-Worked in biotech including start-ups (T ...

Vertex (VERX) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-t ...

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 growth stock that can live up to its true potential can be a tough task.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 task of finding cutting-edge growth stocks is mad ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

My previous investment thought on Vertex, Inc. (NASDAQ: VERX ) (published on 21 st Aug) was a buy rating because I was bullish on the growth potential, backed by the ongoing ECC to S/4HANA migration trend and the newI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ulti ...

Table of Contents Title of each class Trading symbol Name of each exchange on which registered Class A Common Stock, Par Value $0.001 Per Share VERX The Nasdaq Stock Market LLC 1 v UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For th ...

For the quarter ended September 2024, Vertex (VERX) reported revenue of $170.44 million, up 17.5% over the same period last year. EPS came in at $0.16, compared to $0.10 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $165.53 million, representing a surprise of +2.96%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being $0.14.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Financial Data and Key Metrics Changes - Vertex reported revenue of $170.4 million in Q3 2024, representing a 17.5% year-over-year increase [10][34] - Adjusted EBITDA was $38.6 million, reflecting a 45.1% year-over-year increase and an adjusted EBITDA margin of 22.7% [11][42] - GAAP net income was $7.2 million, or $0.04 per diluted share [11] - Free cash flow for the quarter was $18.4 million, with a trailing 12-month free cash flow margin of 13.8% [43][44] Business Line Data and Key Metrics Changes - Software subscription revenue grew by 20.6% to $146.3 million, while services revenue increased by 1.8% to $24.2 million [36] - Cloud revenue reached $71 million, up 29.9% year-over-year, with ecosio contributing approximately $1 million to this growth [10][37] - Annual recurring revenue (ARR) was $576.8 million, with ecosio adding $8.1 million and Systax adding $5.9 million [37] Market Data and Key Metrics Changes - Net revenue retention (NRR) was 111%, up from 110% in the previous quarter, while gross revenue retention (GRR) remained at 95% [12][38] - Average annual revenue per customer (AARPC) for Vertex standalone was $132,422, up 17.5% year-over-year [38] Company Strategy and Development Direction - The acquisition of ecosio is expected to enhance Vertex's offerings in e-invoicing and indirect tax solutions, particularly in international markets [6][7] - Vertex aims to leverage its extensive tax content database to address the complexities of indirect taxes, which are critical for enterprises [15][16] - The company anticipates a super cycle of ERP conversions and a wave of e-invoicing regulations to drive future growth [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position as a market leader and highlighted the importance of maintaining strong customer relationships [48][49] - The regulatory pressures and the upcoming ERP migration projects are expected to continue driving demand for Vertex's solutions [54][60] - Management noted that the company is well-prepared for upcoming e-invoicing mandates in countries like France and Germany [56] Other Important Information - Vertex's strong customer engagement was demonstrated through record attendance at customer events and positive feedback on new AI capabilities [8][9] - The company has over $279 million in unrestricted cash and cash equivalents, providing a solid liquidity position [44] Q&A Session Summary Question: Can you characterize the current set of ERP migration projects driving your business? - Management noted that visibility into good activity for Q3 and Q4 was raised due to ongoing ERP migration programs, particularly with Oracle and SAP [54] Question: Are there specific countries enacting e-invoicing mandates in 2025? - Management highlighted that France and Germany are in the queue for e-invoicing mandates, and Vertex is actively preparing for these changes [56] Question: How do you expect the SAP migration cycle to play out? - Management indicated that while the migration cycle has been slower than expected, there is potential for increased demand as more companies begin their transitions [58][59] Question: What is the impact of the partner ecosystem beyond SAP and Oracle? - Management reported solid activity with partners like Microsoft, Workday, and Shopify, indicating a broadening of the partner ecosystem [61] Question: How long does it typically take for Vertex to be brought into ERP migration projects? - Management explained that tax considerations typically lag a few quarters behind the initial migration decisions, but Vertex is involved early in the process [66] Question: What are the early use cases for AI technology? - Management discussed the development of smart categorization tools to help customers manage tax categories effectively, minimizing audit risks [70] Question: What percentage of customers will be impacted by e-invoicing rules? - Management stated that most multinational customers will be affected, especially as larger economies adopt e-invoicing mandates [75] Question: What are the assumptions for ecosio's revenue in 2025? - Management indicated that the initial guidance assumes ecosio will run at its normal pace with minimal synergy activity in the first year [95]