Mission Statement, Vision, & Core Values (2024) of Vertex, Inc. (VERX)

An Overview of Vertex, Inc. (VERX)

General Summary of Vertex, Inc.

Vertex, Inc. (VERX) was founded in 1978 and has grown to become a leading provider of tax technology solutions. The company specializes in delivering software and services that automate tax compliance and management processes for businesses of various sizes. Vertex's primary offerings include cloud-based tax solutions that integrate seamlessly with other enterprise systems.

As of 2024, Vertex has reported an annual recurring revenue (ARR) of $576.8 million, a significant increase from $484.9 million in 2023, marking a year-over-year growth of 19.0% . This growth is attributed to the expansion of existing customer usage and the acquisition of new customers, alongside the inclusion of revenues from recent acquisitions like Systax and ecosio.

Company's Financial Performance in Latest Financial Reports

For the three months ended September 30, 2024, Vertex, Inc. reported total revenues of $170.4 million, compared to $145.0 million for the same period in 2023, reflecting a growth of 17.5%. The nine-month revenue figures showed a total of $488.3 million for 2024, up from $417.5 million in 2023, achieving a 17.0% increase.

The company's net income for the three months ended September 30, 2024, was $7.2 million, compared to a loss of $(3.4) million in 2023. For the nine-month period, net income stood at $15.1 million, a recovery from a loss of $(28.4) million in the previous year.

Adjusted EBITDA for the three months reached $38.6 million, representing a margin of 22.7%, while for the nine months, it was $113.9 million with a margin of 23.3%. The company’s strong performance is attributed to its core software subscription services, which generated $414.5 million in revenue for the nine months ended September 30, 2024, up from $350.1 million in 2023.

Introduction to Vertex, Inc. as an Industry Leader

Vertex, Inc. is recognized as one of the leading companies in the tax technology sector, providing comprehensive solutions that meet the evolving needs of businesses worldwide. The company has established a robust partner ecosystem, integrating with major ERP and CRM platforms, which enhances its competitive positioning in the market. Vertex's commitment to innovation, particularly in artificial intelligence and cloud technologies, positions it well for sustained growth and market leadership.

As of September 30, 2024, the company boasts a net revenue retention rate of 111% and a gross revenue retention rate of 95%, indicating strong customer loyalty and the ability to grow existing customer revenues . With a strategic focus on expanding its service offerings and enhancing customer engagement, Vertex, Inc. continues to solidify its status as a frontrunner in the tax compliance industry.

Mission Statement of Vertex, Inc. (VERX)

Company's Mission Statement

Vertex, Inc. (VERX) is dedicated to transforming the way businesses manage tax compliance and reporting. Their mission statement encapsulates their commitment to providing innovative software solutions that simplify complex tax processes, enhance compliance, and empower businesses to focus on growth. This mission serves as a guiding principle for the company's strategic objectives and operational initiatives as they navigate the evolving landscape of global commerce and compliance.

Core Component 1: Innovation

Innovation stands at the forefront of Vertex's mission. The company emphasizes developing cutting-edge technologies that streamline tax compliance and reporting. In 2024, Vertex reported a revenue of $170.4 million for the third quarter, marking a 17.5% increase from $145.0 million in Q3 2023. This growth is attributed to their ongoing investment in product development, particularly in cloud-based solutions that cater to the diverse needs of their clientele.

Vertex's commitment to innovation is further demonstrated through their acquisition of ecosio GmbH, a company specializing in electronic data interchange (EDI) and e-invoicing, enhancing Vertex's capabilities in automating tax processes.

Core Component 2: Quality

Quality is a critical component of Vertex's mission statement. The company is committed to delivering high-quality products and services that meet the rigorous standards expected by their clients. In the first nine months of 2024, Vertex achieved an Adjusted EBITDA of $113.9 million, up from $68.8 million in the same period of 2023. This significant increase underscores their focus on maintaining quality while expanding their service offerings.

The company's software solutions are designed to reduce errors and ensure compliance, which is vital in the complex regulatory environment businesses face today. Vertex's ongoing customer satisfaction surveys indicate a high level of trust in their solutions, reinforcing their commitment to quality as a core value.

Core Component 3: Customer Empowerment

Empowering customers is a fundamental aspect of Vertex's mission. The company aims to provide tools and insights that enable businesses to take control of their tax compliance processes. With a customer base that includes over 12,000 organizations globally, Vertex's solutions are tailored to meet the specific needs of diverse industries.

In the nine months ending September 30, 2024, Vertex reported total revenues of $488.3 million, reflecting a commitment to enhancing customer experience through comprehensive support and training. This focus on customer empowerment not only drives revenue growth but also fosters long-term partnerships that are essential for sustained success in the competitive tax technology landscape.

Vision Statement of Vertex, Inc. (VERX)

Vision Statement Overview

The vision statement of Vertex, Inc. (VERX) emphasizes the company’s commitment to delivering innovative solutions in tax compliance and automation. It seeks to empower businesses by simplifying their tax processes while ensuring compliance with ever-evolving regulations.

Innovation in Tax Solutions

Vertex aims to lead in tax technology by continuously enhancing its product offerings. The company focuses on integrating advanced technologies such as artificial intelligence and machine learning to improve the accuracy and efficiency of tax compliance. As of September 30, 2024, Vertex reported a revenue of $170.4 million for the quarter, a significant increase from $145.0 million in the same quarter of 2023. This growth reflects the effectiveness of its innovative strategies in capturing market demand.

Global Reach and Compliance

Vertex envisions expanding its global footprint, allowing businesses worldwide to navigate complex tax landscapes. The acquisition of ecosio GmbH in August 2024 for approximately $169.0 million underscores Vertex's strategy to enhance its electronic data interchange (EDI) and e-invoicing capabilities, thereby facilitating jurisdictionally compliant transactions.

Customer-Centric Approach

Vertex prioritizes customer satisfaction and aims to build long-term relationships by providing tailored solutions that meet specific business needs. The company has achieved an Annual Recurring Revenue (ARR) of $576.8 million as of September 30, 2024, marking a 19.0% increase from $484.9 million a year earlier. This growth is attributed to both existing customers expanding their usage and new customer acquisitions.

Commitment to Sustainability

Vertex's vision extends to sustainable business practices, ensuring that its solutions are not only efficient but also environmentally responsible. The company’s operations are designed to minimize waste and promote sustainability in tax compliance. Vertex is actively investing in research and development, with expenses amounting to $47.1 million for the nine months ended September 30, 2024, reflecting a commitment to developing sustainable solutions.

Financial Performance Metrics

These financial metrics illustrate Vertex's robust growth and operational efficiency, aligning with its vision to be the leading provider of tax solutions globally.

Core Values of Vertex, Inc. (VERX)

Integrity

Integrity is a foundational core value at Vertex, Inc. (VERX). It emphasizes honesty and transparency in all business dealings, fostering trust among employees, customers, and stakeholders.

Vertex has demonstrated its commitment to integrity through various initiatives, including transparent communication regarding financial performance. In the third quarter of 2024, the company reported total revenues of $170.4 million, reflecting a year-over-year increase from $145.0 million in Q3 2023. This transparency is crucial for maintaining stakeholder trust.

Innovation

Innovation is central to Vertex's strategy, driving the development of advanced tax solutions and enhancing customer experience. The company's acquisition of ecosio for $169.0 million in August 2024, aimed at integrating scalable global network capabilities, exemplifies this commitment.

Vertex also invested approximately $6.1 million to acquire AI capabilities from Ryan, LLC, which enhances its ability to manage tax complexity. The focus on innovation is reflected in the significant increase in cloud-based customer solutions, which reached a carrying value of $237.6 million as of September 30, 2024.

Customer Commitment

Customer Commitment is a core value that drives Vertex to prioritize client needs and deliver exceptional service. In 2024, Vertex achieved a gross profit of $110.5 million, showcasing its efficient operations and ability to meet customer demands.

Additionally, customer feedback mechanisms were enhanced, leading to an increase in customer satisfaction scores. Vertex's revenue from software subscriptions grew to $146.3 million in Q3 2024, up from $121.3 million in Q3 2023, indicating strong customer retention and demand.

Collaboration

Collaboration is essential in Vertex's culture, promoting teamwork across departments to drive results. The company has seen a significant improvement in inter-departmental initiatives, resulting in a 20% increase in project completion rates.

Vertex's collaborative efforts are also evident in its partnerships with other technology firms, enhancing its product offerings. This collaborative approach has contributed to an increase in total stockholders' equity to $259.0 million as of September 30, 2024.

Accountability

Accountability is a core value that Vertex embraces to ensure responsibility at all levels of the organization. This is reflected in the company's rigorous financial reporting practices and governance structures, which maintain compliance and ethical standards.

Vertex reported a net income of $7.2 million for Q3 2024, demonstrating effective financial management and accountability. The commitment to accountability is reinforced through regular performance reviews and transparent reporting of operational metrics.

Updated on 16 Nov 2024

Resources:

1. Vertex, Inc. (VERX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vertex, Inc. (VERX)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Vertex, Inc. (VERX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.