Core Insights - Vertex's 2025 Mid-Year U.S. Rates and Rules Report indicates a significant increase in sales tax rate changes, with 408 updates issued through June 30, 2025, representing a 24% rise compared to the first half of 2024 [1][2][3] Trends in Taxation - Local jurisdictions are primarily responsible for the majority of sales tax updates, with only one state raising its sales tax rate this year, suggesting potential future increases as local governments face budget pressures [2][4] - The rise of digital taxation is notable, with states like Maryland implementing a 3% sales tax on data and IT services, reflecting a legislative push to capture revenue from the digital economy [5] - E-invoicing compliance is becoming a global focus, particularly outside the U.S., where VAT remains a key revenue source, although domestic adoption is unlikely due to high compliance rates among U.S. taxpayers [6] Changes in Sales Tax Rates - Louisiana increased its sales tax rate from 4.55% to 5%, marking a nearly 10% increase, with only three other state sales tax rate changes since 2020 [6] - County rate changes rose significantly by 42%, from 36 in the first half of 2024 to 51 in the first half of 2025, while district rate changes increased by 23%, from 26 to 32 [6] - New taxing jurisdictions surged, with new taxing counties growing from 1 to 7, new taxing cities doubling from 30 to 60, and new district taxes spiking by 82%, from 77 to 140 [6] - City sales tax rate increases outpaced decreases at a ratio of approximately 6:1, indicating a trend towards higher local taxes despite an overall decline in the volume of city tax rate changes [6]

Company Overview - Vertex, Inc. is a leading global provider of indirect tax solutions, focusing on delivering trusted tax technology for global businesses to transact, comply, and grow with confidence [3]. - The company offers tailored solutions for major lines of indirect tax, including sales and consumer use, value added, and payroll [3]. - Vertex is headquartered in North America and has offices in South America and Europe, empowering leading brands to simplify compliance complexities [3]. Upcoming Financial Results - Vertex, Inc. will release its second quarter 2025 financial results before the market opens on August 6, 2025 [1]. - A conference call to discuss these results is scheduled for 8:30 a.m. Eastern Time on the same day [1]. Participation Details - Interested participants can join the conference call by dialing 1-412-317-6026 approximately ten minutes before the start time [2]. - A listen-only webcast will also be available on the Company's Investor Relations website [2]. - A replay of the conference call will be accessible one hour after the call, expiring on August 20, 2025, at 11:59 p.m. Eastern Time [2].

Company Overview - Vertex, Inc. is a leading global provider of indirect tax solutions, focusing on delivering trusted tax technology for global businesses to transact, comply, and grow with confidence [3] - The company offers tailored solutions for major lines of indirect tax, including sales and consumer use, value added, and payroll [3] - Vertex is headquartered in North America, with additional offices in South America and Europe, aiming to simplify the complexity of continuous compliance for leading brands [3] Upcoming Events - David DeStefano, CEO, and John Schwab, CFO of Vertex, will participate in a fireside chat at the 20th Annual Needham Technology, Media, & Consumer Conference [1] - The event is scheduled for May 12, 2025, at 9:30 AM Eastern Time [1] - Live webcasts and replays of the presentations will be available on Vertex's investor relations website [2]

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]