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KING OF PRUSSIA, Pa. - Vertex (NASDAQ:VRTX), Inc. (NASDAQ:VERX) reported first quarter results that topped analyst expectations, as the tax software provider saw solid growth in cloud revenues.
The company’s shares rose 0.26% in premarket trading following the release.
Vertex posted adjusted earnings per share of $0.15 for Q1, beating the consensus estimate of $0.13. Revenue came in at $177.1 million, slightly above analyst projections of $176.87 million and up 12.9% YoY.
Cloud revenues were a bright spot, growing 29.6% YoY to $80.2 million. Total (EPA:TTEF) software subscription revenues increased 14.4% to $150.8 million.
"Vertex continued to perform well in the first quarter, setting us up for a strong 2025," said David DeStefano, President and CEO of Vertex. He noted the company made "solid progress on key strategic initiatives including e-invoicing and artificial intelligence."
For the second quarter, Vertex expects revenue between $182-187 million, compared to the $184.8 million consensus estimate. The company maintained its full-year 2025 revenue outlook of $760-768 million.
Chief Financial Officer John Schwab said the guidance "reflects the strength of our business, which is underpinned by persistent secular tailwinds and a largely underpenetrated enterprise market opportunity for indirect tax automation."
Vertex ended the quarter with annual recurring revenue of $618.5 million, up 17.9% YoY. The company’s net revenue retention rate was 109%, down slightly from 112% a year ago.
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