Vertex(US:VERX) Globenewswireยท2025-05-07 11:05Core 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]