Vertex, Inc., a leading global provider of indirect tax solutions, has announced its financial results for the third quarter of 2024, showcasing strong performance and a promising outlook for the future. The company's President, Chief Executive Officer, and Chairperson of the Board, David DeStefano, highlighted the quarter's achievements, including revenue exceeding guidance, mid-teens organic revenue growth, and robust Adjusted EBITDA and cash flow generation.

Unlocking the Power of Indirect Tax Solutions for Global Businesses

Driving Revenue Growth Through Innovative Offerings

Vertex's third-quarter results demonstrate the company's ability to capitalize on the growing demand for comprehensive indirect tax solutions. The acquisition of Austrian e-invoicing and EDI company, ecosio, has further strengthened Vertex's global cloud platform, providing end-to-end workflow for determination, calculation, reporting, and compliance for e-invoicing mandates and Value-Added Tax. This strategic move positions Vertex as a leader in addressing the anticipated surge in e-invoicing regulations and the expected supercycle of ERP conversions, which the company believes will drive profitable growth for the foreseeable future.The company's focus on innovation and customer-centric solutions has been a key driver of its success. Vertex's new global cloud platform has generated significant excitement from customers, as it offers a seamless and comprehensive solution for managing indirect tax compliance across multiple jurisdictions. This platform's ability to streamline workflows and ensure regulatory compliance is particularly valuable in the face of the evolving tax landscape, where businesses must navigate an increasingly complex web of regulations.

Delivering Robust Financial Performance

Vertex's financial results for the third quarter of 2024 showcase the company's ability to translate its innovative offerings into tangible business success. The company reported revenue above the high end of its quarterly guidance, with mid-teens organic revenue growth, demonstrating its strong market position and the growing demand for its solutions.Furthermore, Vertex's GAAP earnings were positive, and the company delivered strong Adjusted EBITDA and significant cash flow from operating activities, as well as free cash flow. These metrics underscore the high quality of Vertex's earnings and its ability to generate sustainable profitability.

Expanding Global Reach and Capabilities

Vertex's strategic acquisition of ecosio has not only strengthened its global cloud platform but has also expanded the company's geographic footprint and capabilities. The integration of ecosio's expertise in e-invoicing and EDI solutions has enhanced Vertex's ability to serve customers across a wider range of international markets, positioning the company as a comprehensive provider of indirect tax solutions on a global scale.This expansion aligns with Vertex's mission to deliver the most trusted tax technology, enabling global businesses to transact, comply, and grow with confidence. By leveraging its enhanced global reach and comprehensive suite of solutions, Vertex is well-positioned to capitalize on the anticipated surge in e-invoicing regulations and the expected supercycle of ERP conversions, driving profitable growth and solidifying its position as a leader in the indirect tax solutions market.

Navigating Challenges and Maintaining Resilience

While Vertex's performance has been impressive, the company acknowledges the potential risks and challenges it may face. The company's forward-looking statements highlight factors such as the ability to maintain and grow revenue from existing and new customers, the successful integration of acquired businesses, and the ability to adapt to technological changes and regulatory shifts.Vertex's management team has demonstrated its ability to navigate these challenges, as evidenced by the company's strong financial results and its strategic investments in innovation and global expansion. By proactively addressing potential risks and maintaining a focus on delivering high-quality solutions, Vertex is well-positioned to continue its trajectory of profitable growth and solidify its position as a trusted partner for global businesses navigating the complex world of indirect tax compliance.