KING OF PRUSSIA, Pa. - Vertex (NASDAQ:VRTX), Inc. (NASDAQ:VERX), a prominent provider of indirect tax solutions, today announced its preliminary financial results for the first quarter ended March 31, 2024. The company expects to report revenues between $155.5 million and $157.5 million for the period, marking a significant increase from the $132.8 million recorded in the same quarter of the previous year.
This anticipated revenue represents a growth of approximately 17% to 19%. Additionally, Vertex projects its Annual Recurring Revenue (ARR) to range from $523.5 million to $525.5 million, up from $446.5 million at March 31, 2023, indicating an increase of about 17% to 18%.
The company's Net Revenue Retention (NRR) is expected to be between 111% and 113%, slightly up from 110% the previous year. However, its Gross Revenue Retention (GRR) is projected to be between 94% and 96%, which is a slight decrease from the 96% reported at the end of March 2023.
In a notable turnaround from the prior year, Vertex anticipates declaring a net income for the quarter ranging from $2.4 million to $3.1 million, compared to a net loss of $18.1 million for the same period in 2023. Adjusted EBITDA is also expected to show a robust increase, with projections placing it between $35.5 million and $37.5 million, up from $20.2 million in the first quarter of the previous year.
This improvement in Adjusted EBITDA includes approximately $4 million attributable to delayed expenses and a higher percentage of capitalized research and development (R&D) costs.
Vertex plans to release its full financial results for the first quarter of 2024 on Wednesday, May 8, 2024, before the market opens. Following the release, a conference call will be held at 8:30 a.m. Eastern Time to discuss these results in detail.
The preliminary financial figures provided by Vertex are based on management's good faith estimates and are subject to completion of financial closing procedures. These results are forward-looking statements, and actual results may differ materially upon finalization.
This financial update is based on a press release statement from Vertex, Inc.
InvestingPro Insights
As Vertex, Inc. (NASDAQ:VERX) announces promising preliminary financial results for Q1 2024, analysts and investors may be keen to understand the broader financial context of the company. According to InvestingPro data, Vertex has a market capitalization of approximately $4.64 billion, indicating a substantial presence in its sector.
Despite the lack of profitability over the last twelve months, the company's revenue has seen a growth of 16.43%, with the latest quarterly increase being an even higher 18.14%. These figures align with the company's positive revenue projections in the recent announcement.
The InvestingPro Tips highlight that analysts are optimistic about Vertex's potential, with net income expected to grow this year and four analysts having revised their earnings upwards for the upcoming period. This aligns with the company's own expectations of turning a net profit in the quarter, suggesting that Vertex is on a trajectory that could reassure investors of its financial health.
Still, it should be noted that the company is currently trading at a high Price / Book multiple of 18.33, which may suggest a premium valuation.
Investors looking for more in-depth analysis and additional InvestingPro Tips can find them at Investing.com/pro/VERX. There are 9 additional tips available, which could provide further insights into Vertex's financial position and future prospects. For those interested in a more comprehensive investment tool, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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