VERX - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to Vertex First Quarter 2024 Earnings Conference Call. Please note, this conference is being recorded. [Operator Instructions] And now I'll turn the conference over to Joe Crivelli, Vice President of Investor Relations.Mr. Crivelli, you may now begin.

Joseph Crivelli

Hello, and thanks for joining us to discuss Vertex's first quarter financial results. President, Vice Crivelli, Joe Investor Relations. I'm our CFO, are DeStefano, may forward-looking future President this and our Schwab, make results. expected about John and statements also we CEO; call, David with today.During us due differ may results financial to and uncertainties. risks Actual in These filings Securities remarks we with our to refer our will risks Commission.In are also Exchange non-GAAP the uncertainties today, and described and financial metrics. metrics to today's in GAAP press provided these is of reconciliation A release. turn Investor the and will over be for Relations is website.I'll call our now being recorded David. This call replay to available on

David DeStefano

Thanks, everyone, is our first of exceeded Welcome, shown good and Joe. we joining thank end EBITDA. the us. off start, financial you guidance XXXX quarter in very again, high for results. for Once to revenue a the adjusted as and

scenes, that is on bold the accelerate crystal executing tax a great was indirect their to have a provide up to performance continuous is and for touch investors.Revenue support software empowers growth seamlessly To remains going end-to-end they with customer as services to process.We're after into for quarter XX.X%. indirect and our digital have capabilities stay wherever being of and Vertex, Total a to continues achieve or subscription where the consistent complexities a this, fully vision dedicated confidently there.At transformation and enables get value run are strong. entire we solid differentiated then efficiently our traction in the first laser-focused XX.X% our clear company their result perform world-class have quarter. behind to us a plans compliance. delivering journey, able them to tax And deliver systems, consistently being success and our to on team customers commerce. infrastructure integrate navigate This customers that somewhere value-added We business, throughout in unified We the revenue in indirect our solutions their data. need quarter approach for tax cloud point. keep was results every manage built connect This we at Our we to customers what global engine their in we help between. to compliance execution their locally,

XXX%, bodes count, percentage quarter was Average year-over-year a annual cash revenue for X XX% year NRR This cloud free standpoint. million, of customer $XXX,XXX. revenue. continues target for from addition, Scaled up last last in year.In customer lowest which was to addition, the In revenue XX.X%, year's million is cash slightly Adjusted the flow is we $XX.X first This also quarter, $XXX points XX.X% of of growth per that customers XX% expected. to up the well year-over-year. EBITDA as Earnings is this year. compared month by investments delivering to positive from or quarter, production flow in EBITDA XX% will note XX.X% of and in deliver when first best-in-class opportunities, proactive ahead targeted rest that first indirect be represents Vertex's delivered They was of our to leverage was that flow.This typically our $XXX in ARR of increased debt XX%.I'm the cash recognized grew build in growth or debt full which year's our free proud annual full organic our quarter, our business raised for financial quarter.I'll the up Convertible which consistent decisive of agile, operate to million prospects. strategy leadership GRR and technology growth invest enable the extremely falls within as growth well markets about cash first ability acquisitions. $XXX,XXX and we positive were investors year-over-year enthusiastic seizing to as tax we XX% capital high-teens and our and over can appreciate convertible the range revenue Vertex, was our adjusted whether our XX% quarter. business. space revenue incredibly which us through was the profitably last

sheet Our been quarter. notable financial flexibility stronger.Now and the our has to in balance wins never turning

with that tax Our market handling results confirm indirect the is underpenetrated many tax still indirect their companies for and software are solutions. needs homegrown

quarter, a this in bringing force.In this example discussed, investments to to catalyst partnership global as built system.As we it provider of growth XXXX; Vertex: them highlights of happen is deliver SAP's was evaluate purchasing we to the of support seeing was first ERP their expansion, homegrown off. the persistent we were replace conversions highlight for as go-to-market for some was front, to solution our end with as market was S/XHANA result in are pillars a partnership mid-X-figure tax will continue the previously migrating growth and business regulations in referred will case, were deal pressure a the their more how have which logo and to for of project. tax digital rules won with grow.I pays This to indirect the X and new power sales their customer This that a manually the have time SAP of opportunity new to building the from wave tax this deal we that updating transformation management traction with solutions. as customers ECC ongoing deal tailwinds aligned key is we pressures Vertex In that departments, the believe our of transformations solutions as we one the SAP This as determine investment. they digital decision by tightly sales SAP As part a will team. mainstream regulatory to wins and sales particular direct partnership well of anticipated on the an

a the were accordingly.Another platforms get advantage more won integrated sophisticated in environment an connecting single this Workday, competitively enabled early In customer consulting the move land and for revenue as management our as our new reporting to certificate risk that expand gave a solution a enjoy we the new driver SAP. look we quarter with with with the a consumer the track us their customer firm was company. but of an made time the the solutions how solution. that addition solution an one handling After cybersecurity and for including outgrew infrastructure sustainable over to we company it's center.One cloud calculation case meet the first of addition. In clear familiar as had for and which in tax the for customers' tools credibility of billion. PLUS company a industrial also acquired, revenue hundreds to to experience able us selected recent where a of case, with as case, space a systems old and a solution in Oracle, decades. and indirect Salesforce entitlements a it solution.Due licensed manufacturer great Vertex several that extremely Vertex was both SAP our had cloud well transformation and were well the JD team customers, accelerator at cloud-native system, the calculation ideal another to using indirect our homegrown growth and They of Vertex our $XX saw transformation and tax. of homegrown expand biggest machinery. quarter equation.A of ways currently past company pressure customer's as America for SAP global compliance to to North by tax opportunity tax upgrade a the because new the with logo S/XHANA They audit move products systems.We infrastructure reevaluate its and and growth Edwards also billing chosen this also customer increased the of Their the things Vertex our due solution parent the needed accelerated compliance grown boost through part tailor our underwent uses led was expand we presented cloud. to mid-X-figure is in to our sources acquisitions NRR the and value existing Europe. our won The PLUS fueled record a their line.We QX proven doing solutions referral acquisitions, It's though business multiple mid-X-figure new being and of was tax customer systems, our tax Vertex to with deal multiple a complex, to Even They the their had competitors, an win SAP initiative the tools

To business research risk. platform, tax new capabilities a unique calculations process, collaborating their DXXX.Finally, customer When corporate marketplace customer our ] and Also their equity for drive implementation the solution, indirect the competitive get for as can systems.Other their Vertex while cost Microsoft seamlessly solution quarter, with company conducted differentiated business the and evaluated expertise X its we with expanded had to In the they tax billing an consulting Vertex.Our the integrating indirect support operations its modes was total delivered team divestitures modern first want ultimately as The with industry. of indirect legacy of journey, private an fundamental They Workday and tax commerce they to growing options in turn, internal a we In needed competitor. indirect being Salesforce While strategy well. solutions, of pair selected [ their didn't Vertex prevailed. They a with to processes, that on first relationship cloud we of unmatched financials.Their current in didn't by industry to accounting and consolidated a integrate tax medical But new customer a with this of first spun ownership things the international a to such and the Commerce adoption compliance. front, further a with our PeopleSoft minimizing RFP a Similarly, win in Vertex. quarter, their was deal with looked changes new in a optimize provider. M&A, onto implementation Cloud, by and the an they of also contract industry, long-time our that tax we SAP diagnostics lower in for the cloud nice security over customer single needed. company is being Big part sold firm X of that our streamline their solutions went tax offering.This, go the advanced course our migrating landed out firm. to case, parent. them

e-invoicing. to and quick our We e-invoicing we remain the our customer to cloud frustration, led the noted of near XX model of pricing agreement. we piece.As direction continuous to word one in cost transaction-based solution, addressing competitors' to Vertex.A quarter, we massive on as a changed term, portal how out compliance delivering in of e-invoicing months address back with to Pagero Ultimately, to alignment the which after of partner committed opted Our a provides are strategy overruns. came through process, bidding the continue utilize is single just war, we last which a after compliance commercial for

and players evaluating partnerships However, options space. in this we our also additional are with developing

in will We on I and are XXXX quarters.As thrilled investments share in us how am from our serve of back opportunity and growth the the with market I on this our to the more they coming through the position customers, we us. have XXXX better look helping front made in strategic

well content reward for our John? investors.John nice increasing Our financials. tax product growth, has the run cash and revenue expertise will through solid us and positioned portfolio, now go-to-market flow scalable infrastructure of a database, you to take profitability

John Schwab

was period-over-period up and good In of upper and everyone. year's second our quarter, quarter to Thanks, XX.X% to and end revenue guidance quarterly guidance. for XX.X% first financial and results year million, now morning, the of last compared David, increased $XXX.X I'll the our first first quarter full million. revenue provide the review quarter exceeding XXXX. $XXX.X Subscription

will strong year.Annual was recurring remains million year. at which guidance represents remainder NRR, fourth was And our This retention full grew ARR, in revenue at XXXX.For referring XX% range our the our full $XX revenue XXX%, This be quarter for Net the million. per which X at revenue, And points of XX.X% XX% GRR retention is quarter discussion, end up Gross up our of $XXX,XXX year-over-year is million based revenue growth, direct in XX.X% targeted of slightly up account $XXX,XXX XX%. percentage annual within quarter or income revenue the at statement on the XXXX, from $XX.X ahead of to $XXX.X I in is customer year-over-year. the for Our AARPC, first services last metrics. cloud or end. compared revenue XX.X% to was first quarter. to quarter to average was of or the customer non-GAAP

cash fourth year same year. period. the our period subscription $XX.X higher exceeding And In quarter, negative Adjusted was and revenue are exceeded compared compared in margin flow research to that the last With positive last spend from the noted of free XXXX free first of EBITDA XXXX.Turning the these first the positive first XX.X% increase $XX.X capitalized to a $XX.X expenses R&D first annual development $X.X revenue end the million the cash in an gross $X.X in capitalized first even expense was year. calendar than quarter.Normally, flow.Our in remaining our in represents of was fourth was expense XX.X% million results general services to to $XX.X million the million, revenue the $XX.X expenses. offering, expense compared $XX.X XX.X% $X.X and have reconciled saw year's to XX.X% the quarter Gross and guidance. was the year-over-year percentage the items, in and from another total quarter, compared of year our or first and and our $X quarters gross our first quarter and compared quarter were quarter, million We cash in All flow flows press year. in for compares XX.X% an by period.Selling increase margin was future and of guidance.As XX.X% improvement quarter was the morning.Gross EBITDA typically we $X included, lower million million compared $XXX.X But operating start quarter was quarter. of first margin taxes metrics seasonally was first million due software in the of $XX.X release to last the are XX.X%. quarterly million million in Year. year's approximately which XX.X% expenses adjusted our outperformance when $XX.X to improvement we first launched in that of costs the driven and convertible of are first $XX.X last of XXXX. and to April, cash from million, XX.X% R&D year's a in on administrative million margin cash XX.X% costs or bonus first was This quarter, payroll in revenues, a elevated year-over-year $XX.X of approximately XX.X% for XX% these to prior quarter driven profit compared they revenue last marketing $XX.X sales operating New by marketing quarters EBITDA excluding on Gross was the last flow profit and was a gross debt would payments, million and delayed high quarter last in million quarter issued are R&D in and was to to that quarter GAAP a million expense the million million, year's of non-GAAP down prior in as expensed first earnings with this of adjusted XX.X% was to

by with seasonality cash the unrestricted our anticipate our cash and million standard $XX.X cash and equivalents. will trends.We ended free We the first are encouraged that quarter flow performance follow in

of stand million. the was securities I'll million. million cash note $XX.X our offering, Our $X.X with $XXX totaled balances convertible debt approximately proceeds and investment that and at total debt now our investment bank

turning For availability additional liquidity, our $XXX under guidance. unused we existing also have now line of million credit.And of to

For at XX% year.This range XXXX, midpoint strengthen year-over-year represent over a fuel third to the million, cash and million a approximately of to total also solid adjusted million row $XX $XXX range of represent further improvement XX% $XX of EBITDA would with margins growth and quarter $XX our EBITDA we the in the of balance sheet. ongoing will second million, quarter adjusted prior would represent the our an the over revenue midpoint, would XX% or in million increase in $XXX which at to the flow expect

$XX the we As not the in of the guidance an to midpoint. growth representing believe the in years, And representing cloud continue total past revenue growth have we revenue full based And XX% first million, midpoint.Adjusted changed million increase full at the million year at $XXX expect that to on million of year, will range of accelerate $XXX to XX% approximately XXXX. EBITDA our in our results. for the we $XXX accordingly, range $XXX annual of quarter to in million,

when year quarter results.David will some expect to full comments our We David? up reevaluate we second August open now for guidance closing in Q&A. we before make announce our

David DeStefano

want performance in very public have Thanks, first for our a in public quarters. reiterate and to with John. Vertex I'm the XX that went company pleased we now been I quarter. mid-XXXX,

We us are financial guidance can during revenue proud enabled base recurring on. to time, that investors depend has that that of strong our provide

EBITDA the only from was the through and XXXX exceeded the of are of made XXth that revenue time was investments when XXth XXXX record. of achieved quarter many growth during to other helping end our companies struggled.The first time we the guidance, we end high build guidance a and high our us time adjusted SaaS track this XXXX exceeded The on we

and success now with existing mature accounts. of expansion driving customer customer great is results the organization Our

in world-class throughout continue finding add shareholders And [ are the that, we years X results the opportunities call for great past deliver our eye channel fully new those operator, traction us, largely go including underpenetrated the execution. behind team new gaining are have for products the to with and to all XXXX.With broader organization, and Our ] the when is over new place on in I'm open in for the differentiating several ball we us job Vertex have partner space. launched questions. we compete the ahead customers deeper investments we business.With again team, go-to-market can and And enterprise our developed confident please for and

Operator

first question [Operator Instructions] from Our from Quintero Stanley. Chris Morgan comes

Christopher Quintero

SAP pipeline the conversion ask David, you, the channel. I about for Maybe within wanted rates to

You mentioned the willingness that ECC years. migrations next now over greater recently through. the some benefited those occur with of got yet seemingly X that And migration from will efforts you haven't you've to SAP push

So just with curious what that seeing you're into here? pipeline large close turning deals

David DeStefano

Chris. sure, Yes,

for the and I typical and we've of infrastructure line, they push will we're for longest the their smaller activity. can they're got think there'll seeing is, ERP delay flood go need And that really we're to to is play companies over evolve before seen then because companies The long first largest continue going out. pretty of they've other what which as migrations be that go seeing years. they'll as to time sort a behavior

Christopher Quintero

flow to there? on And you cash the have that for given usually you and thoughts John, is the wanted the that if that like and year, about to mentioned? then how think are do blockers low for any conversion rate get for you then ask long-term conversion about any I there point of And free that rest should we QX

John Schwab

the for Thanks, question. Chris,

investment one cash adjusted [ as -- What cash XX% were me of Let ] conversion XX% XX% XX% we the free coming when first. rate from cycle to flow the were EBITDA. about saw to -- public, of we before our started last EBIT flow adjusted was take we

good flow. over years free of done We terms have first time. X of did pointed there as out, were expect flow a time our quarter, the last some back is that. very that we've in you cash in first quarter, cash We generator We free we'll the which a in certainly that get the

kind of positive will still to to to that of continue that how it that a that goes.We couple expect conversion rate. good period. that, will But get and XX% XX%, of So take very terms ramp very the through us in years

real the very made cash good see we've start like investment cycle is behind from come And into is us. the The to you feel business significantly. can we strides. again, the going So results, as to

Operator

question from comes from next Our Daniel BMO Jester Capital.

Daniel Jester

we this that your raise the other of kind out adjust the year. guidance can called point a you contrast visibility can of is compare XXXX? level today you sense and your just the or not of the full process Maybe in to confidence to guidance pipeline full and typical get Maybe so year your year at periods,

David DeStefano

remains Yes, I solid. the think pipeline

like the Microsoft, consistent encouraging. progress of solution in for other in stuff I'm rollout TCS there positive Microsoft. a seeing of that's ERP the focused our NetSuite markets very -- space. solutions again, seeing SAP think Microsoft, nice got Workday, and differentiated We've traction other Oracle SAP some we're the way remains our really I And the really then us. and very is with

year. Our us win consistent of rates we gives remain And for rest that that's I really going one forward the strong a be to look confidence think the there. as

Daniel Jester

be And in An today? then expand landscape that would you this there interested great. that that maybe little more areas organic viewing [ a in? you ] bit update remarks kind you're about the touched in you of opportunities you're how on prepared the see, Maybe can briefly --

David DeStefano

going be capital. we've good e-invoicing, thoughtful our being here. The Yes, funding discussions acceleration certain of news sort focused source raised sure. to we and of and our opportunistically be in sight disciplined lose continue is approach. to we're like to there. had we number for to areas watch we're with on of Obviously, not shareholder a Obviously, but good flexibility that of partnership strategy to opportunities thinking continue additional our in the be, strategic in where want us We to gives there we've new and need

flexibility that if our in So feeling in the space comes confident very forward. opportunity right I'm overall solution with

Operator

from And our from Needham. Joshua comes question Reilly next

Joshua Reilly

XX months. a number come you've new last out XX with products So of over to the

wins you on much I Any the attribute get you customer think -- year-over-year growth? stronger products be helping net it -- would I how new X product and can with How update just competitive think much the was innovations of course an How versus business? anecdotes on that these normal points. the it to NRR? new much are good to

David DeStefano

Yes. Sure, Josh.

the pretty products, out And when We've is record rollout been for in this over roll much all we track Josh, new new follows it the time. out years. same So proven doing product XX pattern.

need tail. typically ability a progress. go couple the your need get see live You and to It with you that product, They to we're then reference do early takes adopters. sort that, that need get of and to you of years to seeing

we encouraged a couple by of embraced pattern.So XX I'm following the uptick. products show of ones years the forward, Edge to same accelerator starting an XX ago released months solution, some So that SAP The like team more released by the last market. the we've in and are I are tools has really have the of the SAP the nicely brought been think what to

new of would success a I say focused and and combination. throughput forward the want it's good us It's a We've a combination from -- forward team. really really to of to investment NRR that we're we're customer organization. the of in emphasize do for started put already which I because pleased we seeing nice for we NRR it's really where relative position rest go XXXX. some the in the As as growth, year there, the offerings,

Joshua Reilly

kind second in be normal we considering for investors there be to need And terms anything after of of is per the unchanged made that you half you then of of know of EBITDA should business the left course balance while investments QX, the guys during the guidance year? for the kind

David DeStefano

team that. think continued demand space. up how wind really with I cycle. go-to-market relative in the we We've R&D about focus to talked comfortable the is our I'm

we're leverage positioned our implementation, the And to other forward. We're think side as we're there. we implementation. continuing of on through G&A go work through and to well we're ERP drive our I So continuing the

Operator

Adam Hotchkiss from Goldman comes Our Sachs. next question from

Adam Hotchkiss

curious revenue the I about guess, the be on hear on-prem side. David, acceleration actually I'd first to in

while. success step bit think and from been to but competitors it's as was differentiator like in over of we been back a the you channel hearing all there, we've think cloud about for that I first the a that a XX% I time up for on-prem. for talk And

So about and at to aren't to I'm how that's you relationships just that more how continued wondering your for if and cloud new customers ready business support yet think all? for move driving you,

David DeStefano

question It's a Sure. good there, Adam.

few I think things.

lead cloud do first we remember, all, we in do. everything of First

logos share of to remain expand new XX-plus oftentimes of XX% time, is our customers, our percent -- enjoyed cross-sell over -- of of more cloud. All LTV logos in going the of largest new they're all But historical our some about on-prem. long with with which that market, we've wallet

some is So we thing that while customers. remain software is, of exceptionally we really has, most of appreciate in hosted think committed the to is largest to that.And that's an that especially individual important the I the on-prem, other stay rally cloud environment the customer

It as align we a And that. our competitive you the support may be committed clearly and cloud recall, on-prem to we're same. So modified differentiator. is very pricing to to

gross in deliver margin actually it's we when that successful overall turned So profitability. to terms can our very out be of and

Adam Hotchkiss

say a number success. of partner But would into of large have of really I'd curious your then called excited side. you've year the any on you out future or drivers for as ones outperformed there's that X know you? And that drivers expectations I heading about, growth be you're the most one

David DeStefano

Oracle, channel around investments -- new we SAP year rolled out a of and and I'm with offering times and how made, inside really Microsoft. highlighted the we've just number TCS encouraged we the the but Obviously, this

some was coincided their they up NetSuite. well really -- ecosystem seen in. newer with nice are for Shopify the we've our well going traction also I lead is are well. upmarket both and we've a for of move to that we Shopify think partnership Some us. and And us, pay relationships across space It's seen -- really working as nice

Operator

Reback from from comes question next Our Brad Stifel.

Brad Reback

on David, weakness you Can on of side given consumer out on last on following broadly there maybe Shopify. the spending remind you how comment price that recently? some e-commerce us just up and the specifically

John Schwab

e-commerce an up recognize say as in what consistent Brad, revenue with base ratably. side I'll we on we Again, is and bands, would I and and our And set it advance the that the Yes, advance of is revenue rest bill start. from pricing is business. it in

So changed. that really hasn't

kind of expect and we adjust going So set then where there. it we operate, with is the we to from customer

Brad Reback

And then that obviously, good higher XX% dollars this the off years [ you really historically. specifically, a get start add -- cloud to absolute need there. than to to the you've on But ], year to somewhat added the

XX% informs ]? what maybe [ that on the So confidence

David DeStefano

Yes.

several think, the I Cloud we over the the fact And on new continue they're be again, you key as brought offerings, focus, just of to as the X, part we're to be all growth our -- revenue gives more focus. to cloud of going cloud everything past a our to growth leading know, number with us continues the a years, as and X. forward. drive out continues opportunities focused number that

absolutely overall, change see our off to XXXX and there. So that. any I in of no over that Pleased back it's increased guidance don't reason

Operator

Steve question next Enders Citi. our comes And from from

Steven Enders

and far of to timing But the on opportunities potentially opportunities partnership, on bulk when you've comments you seen about? what could the for you maybe the and just based volumes so -- about future. from update of of kind on the exploring different expect some appreciate kind e-invoicing Pagero I come the talk regulation

David DeStefano

we're it. very think inning comfortable haven't still We of relationship on working the because the moved adoption economies second Yes. with is I general, of in larger still. some of e-invoice yet. the performance in say, the don't that Europe true the first way into specifics or in I go would

that and as decision And we're good making is we for. probably uptick I And you'll that here a coming see think forward very we're in position 'XX importantly, we're for and there point 'XX opportunities really real, companies accelerate -- move that's where move more start the in so I as and away from to positioned think, what what's global solutions.

Steven Enders

now own of And terms ERP And being in that kind the it any I behind quarter? comment view billings us? in a impacted about you Was now prior are to of then fair think migration made maybe the of cash those is there your say or rear any mirror. internal collections headwinds catch-up

John Schwab

John. in again, we're cash is to saying, this flow-through just saw coming And and there. the come fourth continuing we I by that first start from Yes, nice the think we collections called out in see quarter. nice I'll quarter, listen,

can So we better.We go to to so. good we're do improve, in and It's feel getting shape. that's pretty continuing that, always

I that talked about end a the get trying quarter. think to by lot of we behind of the us second

And the worked so can you that Again, positioned. see how some out. we're like the well cash very results we of of flows from feel

pretty been that feel able that. good good we we've about feel how to So about move along. We

Operator

Sills America. Brad of from the next question And from Bank comes

Unknown Analyst

year? XXXX investing [indiscernible] I focusing the for This will business? on is ask in cross-selling in guys you guys where Natalie for Brad. the continue to strength if you the any really to that are wanted are on there's capabilities in And drive

David DeStefano

Yes. our few to critical a I that market that's that about compliance. looking still continuing what advance. part of calls. There's continue a portal of both on talked is to past to all AI, highlighted We've that's for. cloud the the compliance we've a areas our this we focus. Obviously, to single couple and think e-invoicing expand way we're reporting have going through the

there. We nice opportunity to progress. some continue really see We're making

bringing doing be work some to team done in that pretty emerging to forward. Our disciplined we're really in nice what continue tech there. going And has we're

those highlight. would are So I X areas

Operator

Sklar question Raymond James. next from Alex comes our from And

Alexander Sklar

to just you've of wanted on the I kind e-invoicing momentum and up international Dave, talked. broader follow

on win the mix international business opportunity going us And the of of matured ago? just to international Can You opportunities talked as your that year X prepared about from to that kind accelerate pipeline I'm curious marketplace you relative forward? kind kind in the today you update go-to-market motion, of the nice remarks. of coming

David DeStefano

international Europe, part is in business, small we're of a excited about Yes. we're our Obviously, and particularly very doing. what

fact, in customer for space, a it. In and in EU really that is can particular, have momentum and I'll the that customers be up we that building of in the Europe of to coming great partners next conference lined over are -- for the week, our number about prospects excited team session.So turnout

base, our brand for to vector space e-invoicing Europe in will years accelerate. evolve of continues a be to and small it growth working Obviously, come. giving that opportunity will the for to And think So it's watch us to we still only expand it, a but around think pipeline. I off it as grow continue us I

Alexander Sklar

maybe you, And then just more for one there. color Great Okay. Dave.

see terms brought was with in pipeline? that of those I migration brought earlier in changed the across -- cycle? being you're the in Just has your terms discussions into just anything maybe prevalent in remarks when SAP you're how catalyst, of want when the prepared being to suggest that

David DeStefano

really that's us, exciting Yes, for development Alex. a

sales to and had to who in talked than relief. working earlier their ] process have relationship we've we've with we a SAP getting [ past. the sales with work doing the reps that are us appreciated us allow We're their with quota in As have actually teams they're really about, differentiated partnering much the with

in there's value. customer deliver process.And a So to this win-win able for nice importantly, all we're more higher

will going And rates so seeing with well. think years. win we're several earlier really going further us differentiate it that SAP all accelerators to we're allow in and tools forward, the past It I see we've visibility and that the -- positions created the us over to

Operator

Instructions] Patrick comes from [Operator question Our from next Citizens. Walravens

Austin Cole

trends? different those to those are like This address is high and greatest economies those from where Walravens. that fast-growing kind Europe, of in regions at to opportunities see where coming love and regulatory especially compliance there I'd level each are on a in Vertex? your Austin you U.S. Pat to the tax opportunities for the on of guys Brazil then And positioned tailwinds get trends different more India, for are take products -- satisfy and there Cole in best are

David DeStefano

of a the Austin, record was number last here changes year U.S. in

those little think But now, age fertile Europe know, remains piece a happening U.S., in changes, up XX important obviously it highlighted an regulatory I legislation So and is for as bit an change. outside things is regulatory vote the -- all of the this through regulatory to e-invoicing of all changes. the direct about And look part that. importance portal line we've our up around compliance revenue.And going seismic for May those seeking on way that's you a more this cloud e-invoicing we is new we've of important to That be tailwinds. in so coming VAT been digital right highlighting in consistent forward the are the one. think reason market being around and product linking, when ways response to persistent set, Governments

important I the products. Generative fueling management doing increasingly next-generation think broad over data for some AI, for we're about to thinking -- investment businesses of is that that's with and that are insights going data and time, become

Operator

And back I this conference Joe question-and-answer would to remarks. our to concludes closing like session. Crivelli turn the over some for

Joseph Crivelli

you, us Thank today. for everybody, joining

additional team, If to day, schedule you with we Have have a you with forward an please investors@vertexinc.com. great your at of e-mail weeks. time any you'd the send and follow-up questions in look to speaking rest if me like the or coming

Operator

now much very you conference today's Thank The has for concluded. attending presentation.

a now may You Have disconnect. day. great

Vertex (VERX) 8 May 242024 Q1 Earnings call transcript