Wed, May 7, 8:38 PM (8 days ago)
**Vertex, Inc. (VERX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $177.1 million, up 12.9% YoY. - **Net Income:** $11.1 million, up 314.7% YoY. - **Adjusted EBITDA:** $37.2 million, up 1.4% YoY. - **Gross Profit Margin:** 63.8%, up 2.7% YoY. - **Operating Expenses:** $108.5 million, up 11.5% YoY. **Profit Margins:** - **Gross Margin:** 63.8%. - **Operating Margin:** 2.6%. - **Net Margin:** 6.4%. **Cash Flow:** - **Operating Cash Flow:** $14.8 million, down 39.7% YoY. - **Investing Cash Flow:** -$17.8 million, down 8.6% YoY. - **Financing Cash Flow:** -$20.7 million, down 1,691.2% YoY. - **Free Cash Flow:** -$12.3 million, down 270.2% YoY. **Earnings Changes:** - **EPS (Basic):** $0.07, up 250% YoY. - **EPS (Diluted):** $0.07, up 250% YoY. **Quarterly Performance:** - **Revenue Growth:** Driven by software subscriptions (14.4% YoY) and services (5.4% YoY). - **Cost Management:** Software subscriptions cost decreased by 2.0% YoY, while services cost increased by 25.0% YoY. - **Operating Expenses:** Increased due to strategic investments in R&D, sales & marketing, and G&A. **Trends & Uncertainties:** - **Positive Trends:** Strong revenue growth, improved net income, and strategic investments. - **Uncertainties:** Foreign currency exchange risks, interest rate fluctuations, and legal proceedings. **Future Operations Impact:** - **Growth Opportunities:** Expansion of cloud-based subscriptions, new product initiatives, and strategic acquisitions. - **Challenges:** Managing increased operating expenses, foreign currency risks, and legal uncertainties. **Key Metrics:** - **ARR:** $618.5 million, up 17.9% YoY. - **NRR:** 109%, down from 112% YoY. - **GRR:** 95%, unchanged YoY. - **AARPC:** $126,534, up from $121,720 YoY. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $270.4 million. - **Credit Agreement:** $300 million revolving facility, no outstanding borrowings. - **Debt:** $345 million in Convertible Senior Notes due 2029. **Recent Developments:** - Strategic investment in Kintsugi AI, Inc. for $15 million. - Continued focus on AI technologies and strategic acquisitions.