Vertex, Inc. (VERX) Stock Forecast & Price Target

Vertex Inc. has demonstrated robust growth in cloud revenue, reaching approximately $86 million, which reflects a reported year-over-year increase of about 30%, with organic growth of 26% bolstered by the addition of Ecosio’s contributions. The company is forecasting subscription revenue growth of 14% for the current year, indicating a slight adjustment from earlier estimates but maintaining a stable outlook for the following year. Vertex's potential for top-line outperformance of around 5% could further enhance its revenue performance and drive an increase in its valuation multiple.

Vertex Inc's revised full-year revenue guidance indicates a decrease of approximately $12 million, resulting in a midpoint forecast of $752 million, which corresponds to a projected growth rate of 12.8% for 2025. The company's 3Q revenue growth guidance of 12.5% year-over-year falls 2.5 percentage points below consensus estimates, with expectations for 4Q growth further decreasing to 11.5%. Moreover, recent results from the second quarter were weaker than anticipated, largely due to reduced usage growth and a slowdown within the SAP ecosystem, significantly impacting the overall financial outlook.