
Vertex, Inc. (VERX) Stock Forecast & Price Target
Vertex, Inc. (VERX) Analyst Ratings
Bulls say
Vertex Inc. demonstrated a robust financial performance with a total revenue increase of 12.7% year-over-year and a notable cloud revenue growth of 30% year-over-year, indicating strong demand for its tax technology solutions. The company's subscription gross margin improved by 90 basis points to 81.4%, reflecting enhanced efficiency and profitability within its software subscription model. Additionally, the adjusted EBITDA margin expanded to 23%, signaling effective resource management despite significant investments in AI and eInvoicing initiatives.
Bears say
Vertex Inc. has exhibited declining performance metrics, with a notable decrease in Net Revenue Retention (NRR) to 105%, down from 107% in the previous quarter and 109% year-over-year, primarily due to lower entitlement growth and customer attrition linked to M&A activity and competitive pressures. The company's direct customer count remained flat year-over-year, with attrition among smaller average revenue per user (ARPU) customers further contributing to concerns about growth sustainability. Adding to the negative outlook, the company lowered its revenue guidance for FY25 by approximately $5 million from consensus estimates, reflecting the potential for revenue declines in a severe economic recession coupled with a transition from on-premise to cloud solutions.
This aggregate rating is based on analysts' research of Vertex, Inc. and is not a guaranteed prediction by Public.com or investment advice.
Vertex, Inc. (VERX) Analyst Forecast & Price Prediction
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