Vertex(US:VERX)2025-05-07 11:20Financial 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]