Vertex with Solid Q2 Numbers and Strategic Acquisitions

Vertex achieved robust financial results and significant strategic advancements in the second quarter of 2024. The company announced the acquisition of the Austrian firm ecosio, which specializes in electronic invoicing and electronic data interchange (EDI). This acquisition, valued at $69 million in cash plus a multi-year revenue-based earn-out component, enables Vertex to better meet the needs of its global enterprise customers and unlock new market opportunities. The non-uniform dissemination of invoicing regulations presents a challenge for compliance with global reporting requirements, especially as several large economies are set to introduce new mandates soon. With the acquisition of ecosio, Vertex can leverage new opportunities in the electronic invoicing sector. Ecosio's scalable, fully cloud-based platform was particularly compelling to Vertex, along with its ability to handle electronic invoices in multiple countries and quickly expand with the introduction of new mandates. Another significant development was the launch of AI-based tax categorization capabilities aimed at simplifying and accelerating the manual and time-consuming tax categorization processes. This technology will enable Vertex customers to automate the tax categorization of their items across various global jurisdictions, ensuring tax accuracy. Financially, Vertex had a strong second quarter: revenue increased by 15.3% to $161.1 million, with software subscriptions up by 15.8% and the cloud business growing by nearly 30%. Adjusted EBITDA stood at $38.5 million, with an adjusted EBITDA margin of 23.9%. The company has raised its annual revenue forecast to the upper end of the prior range and announced a significant increase in the adjusted EBITDA forecast. The acquisitions and strategic investments underscore Vertex's efforts to provide its customers with excellent solutions in the area of indirect tax reporting and compliance.