Vertex, Inc. Reports 16.5% Revenue Growth to $666.8 Million for Fiscal Year 2024

Vertex, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $666.8 million, a 16.5% increase from $572.4 million in 2023. The growth was primarily driven by a 17.9% rise in software subscription revenues, which amounted to $567.1 million, attributed to cross-selling new products to existing customers and expanded usage. However, the company also reported a net loss of $52.7 million, compared to a loss of $13.1 million in the previous year, largely due to increased operating expenses and a substantial income tax expense of $54.6 million.

In terms of operational metrics, Vertex's Annual Recurring Revenue (ARR) increased by 17.7% to $603.1 million, with an average annual revenue per customer of $122,706, up from $118,910 in 2023. The company served 4,915 direct customers as of December 31, 2024, reflecting a growing customer base. Despite the increase in customer count, the Net Revenue Retention Rate (NRR) decreased to 109% from 113% in the prior year, indicating a slight decline in revenue growth from existing customers.

Strategically, Vertex made several key acquisitions in 2024, including the purchase of ecosio GmbH for $169 million, aimed at enhancing its e-invoicing capabilities. Additionally, the company acquired tax-specific artificial intelligence capabilities for approximately $6.1 million and completed the acquisition of the remaining 20% equity interest in Systax for $9.6 million. These acquisitions are expected to bolster Vertex's product offerings and market position, particularly in the growing e-invoicing sector.

The company also reported an increase in its employee headcount, which stood at over 1,900 as of December 31, 2024. This growth is part of Vertex's strategy to expand its operational capabilities and support its increasing customer base. The company anticipates continued revenue growth in 2025, driven by investments in its product portfolio and the expansion of its global footprint, particularly in regions with emerging e-invoicing regulations.

Looking ahead, Vertex plans to invest further in research and development, particularly in its AI initiatives, to enhance its software solutions and address the complexities of tax compliance. The company remains optimistic about its growth prospects, citing a strong pipeline and favorable market conditions as key drivers for future performance.