Vertex (VERX) Earnings Call Presentation

Company Overview - Vertex aims to accelerate global commerce and empower businesses to transact, comply, and grow with confidence by delivering a global, best-in-class, end-to-end indirect tax platform[12, 15] - The company boasts a 95% gross retention rate and serves over 60% of the Fortune 500[17] - Vertex has demonstrated strong growth with a 33.5% cloud subscription Compound Annual Growth Rate (CAGR) from 2020 to 2024 and a 17.5% Annual Recurring Revenue (ARR) CAGR during the same period[17] - Scaled customer count, defined as those driving over $100,000 in annual revenue, grew by 69% from 2020 to 2024[17, 18] Market and Solutions - The global indirect tax revenue is $4.4 trillion, which is 3.1 times greater than corporate income tax revenue[22] - Vertex offers a comprehensive ecosystem of solutions, including determination, compliance, integration, and audit & planning applications[28, 29] - The company's tax content database includes over 1 billion tax rates and rules, updated continually, covering 20,000+ global jurisdictions and supporting 195 countries[30] Financial Performance - Vertex has shown consistent long-term revenue growth, with a 15% CAGR from 2016 to 2024[54] - Annual Recurring Revenue (ARR) has grown at a 17.5% CAGR from 2020 to 2024, reaching $603 million[59] - Cloud subscription revenue has increased at a 33.5% CAGR from 2020 to 2024, reaching $276 million[61] - Adjusted EBITDA increased from $78.4 million in 2020 to $151.9 million in 2024, with the Adjusted EBITDA margin increasing from 20.9% to 22.8% over the same period[64]