Vertex(VERX) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2024 were $178.5 million, representing a year-over-year increase of 15.2%[5] - Annual Recurring Revenue (ARR) was $603.1 million, reflecting a 17.7% increase year-over-year, with a 15.0% growth excluding acquisitions[5] - For full-year 2024, total revenues were $666.8 million, a 16.5% increase from the previous year[5] - Total revenues for the year ended December 31, 2024, increased to $666.776 million, up from $572.387 million in 2023, representing a growth of 16.5%[32] - Total revenues for Q4 2024 were $178,456,000, compared to $154,914,000 in Q4 2023, marking a 15.1% increase[43] Revenue Breakdown - Software subscription revenues reached $152.6 million, up 16.8% year-over-year, while cloud revenues grew by 27.0% to $76.9 million[5] - Software subscriptions revenue for Q4 2024 was $152.597 million, compared to $130.695 million in Q4 2023, reflecting a year-over-year increase of 16.7%[32] Profitability Metrics - Net loss for Q4 2024 was $(67.8) million, compared to a net income of $15.3 million in the same period last year[5] - Non-GAAP operating income for Q4 2024 was $32.5 million, an increase from $28.2 million in the prior year[5] - Adjusted EBITDA for Q4 2024 was $38.1 million, with an adjusted EBITDA margin of 21.3%, up from 20.7% year-over-year[5] - Non-GAAP net income per diluted share for Q4 2024 was $(0.43), compared to $0.09 in Q4 2023[32] - Non-GAAP net income for the year ended December 31, 2024, was $100,984,000, compared to $63,699,000 in 2023, marking a 58.5% increase[37] Cash Flow and Investments - Free cash flow for the year ended December 31, 2024, was $77,708,000, a significant increase from $6,099,000 in 2023[37] - Cash provided by operating activities for the year ended December 31, 2024, was $164,821,000, significantly higher than $74,332,000 in 2023[44] - The company expects Q1 2025 revenues to be between $175 million and $178 million, with adjusted EBITDA guidance of $33 million to $36 million[10] - Vertex plans to invest an additional $4 million in ecosio and $10 to $12 million in R&D for AI-based products and other technologies[7] Balance Sheet Highlights - Total assets as of December 31, 2024, were $1.167 billion, compared to $759.927 million in 2023, showing a significant increase of 53.5%[31] - Total liabilities increased to $987.439 million as of December 31, 2024, from $506.946 million in 2023, reflecting a rise of 94.4%[31] - The company’s cash and cash equivalents increased to $296.051 million as of December 31, 2024, compared to $68.175 million in 2023, representing a growth of 334.5%[31] - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $326,066,000, a substantial increase from $89,151,000 at the end of 2023[35] Research and Development - Research and development expenses for the year ended December 31, 2024, rose to $66.666 million, up from $58.212 million in 2023, indicating a 14.1% increase[32] - Stock-based compensation expense for the year ended December 31, 2024, was $47,425,000, compared to $33,919,000 in 2023, a 39.7% increase[40] Future Outlook - The company reported a net loss of $(67.798) million for Q4 2024, compared to a net income of $15.334 million in Q4 2023[32] - Free cash flow for Q4 2024 was $17,897,000, down from $28,843,000 in Q4 2023, a decrease of 37.9%[44] - Free cash flow margin for Q4 2024 was 10.0%, down from 18.6% in Q4 2023[44]