Adam Hotchkiss

Joshua Reilly

Alexander Sklar

Christopher Quintero

Daniel Jester

Jacob Roberge

Patrick Walravens

Robert Oliver

Steven Enders

Andrew DeGasperi

Samad Samana

Will Jellison

Alex Klar

Brad Reback

Brent Bracelin

Chris Quintero

George Kurosawa

Jake Roberge

Matthew Stotler

Natalie Howe

Pat Walravens

Rob Oliver

- Vertex lowered its full-year revenue outlook by **$12 million** at the midpoint, attributing the change to softer entitlements, reduced true-up revenues, and an elongation in ERP migration cycles leading to slower demand volume.  **[1806837_2139094_1]** 
- The company is in an investment cycle, with R&D expense currently at **21% of revenues** (up from 18%-19%), driven by acquisitions like ECOS (**$4M-$5M per quarter**) for e-invoicing country coverage and SmartCat (**$9M for the year**) for AI capabilities.  **[1806837_2139094_6]** **[1806837_2139094_10]**  Vertex anticipates margin expansion to resume in the **back half of next year (mid-2026)** as these investment cycles conclude.  **[1806837_2139094_10]** 
- Strategic growth opportunities include e-invoicing, identified as a **$100 million revenue opportunity by 2028**, where Vertex is investing in **100% country coverage**.  **[1806837_2139094_9]** **[1806837_2139094_10]**  The company is also leveraging AI for product categorization (SmartCat) and data analytics, with SmartCat being its first chargeable AI product.  **[1806837_2139094_5]** **[1806837_2139094_6]** 
- Vertex maintains a strong Gross Revenue Retention (GRR) of **95%** and Net Revenue Retention (NRR) of **108%**, with **70%** of new revenue generated from existing customers through a land-and-expand strategy.  **[1806837_2139094_8]**

Vertex Discusses Revenue Outlook, Investment Cycle, and Strategic Growth Initiatives

- Vertex lowered its **full-year revenue outlook by approximately $12 million** at the midpoint, citing softer customer entitlements, lower true-up revenues, and elongated deal cycles.  **[1806837_2138869_1]** 
- The company maintains a **Gross Revenue Retention (GRR) of 95%** and **Net Revenue Retention (NRR) of 108%**, viewing the current slowdown in customer growth through revenue bands as a timing issue expected to re-accelerate in **2026 or 2027**.  **[1806837_2138869_2]** **[1806837_2138869_8]** 
- Vertex is in an **investment phase**, with R&D expenses elevated to around **21% of revenues** due to strategic acquisitions like ECOS (e-invoicing) and SmartCat (AI), and expects **margin expansion to ramp up in the second half of 2026**.  **[1806837_2138869_6]** **[1806837_2138869_10]** 
- Significant growth opportunities include the **e-invoicing market**, a legislated compliance requirement that mandates third-party involvement and is projected to be a **$100 million revenue opportunity by 2028**, alongside strategic AI integration for large enterprises.  **[1806837_2138869_5]** **[1806837_2138869_9]**

Vertex Discusses Lowered Full-Year Outlook, Investment Cycle, and Growth Initiatives

- Vertex **lowered its full-year revenue outlook by approximately $12 million** at the midpoint, citing softer entitlements, true-up revenues, and elongated ERP migration cycles.  **[1806837_2138834_1]** 
- Despite the lowered outlook, the company maintains a strong Gross Revenue Retention (GRR) of **95%** and a Net Revenue Retention (NRR) of **108%**, with **70% of new revenue** derived from existing customers.  **[1806837_2138834_2]** **[1806837_2138834_8]** 
- The company is in an **investment phase**, with R&D expenses at **21% of revenues**, focusing on **e-invoicing**, which is anticipated to be a **$100 million revenue opportunity by 2028**, and new AI capabilities like the SmartCat product.  **[1806837_2138834_6]** **[1806837_2138834_9]** **[1806837_2138834_10]** 
- Management expects **margin acceleration to commence next year**, with the benefits from current investments in e-invoicing and AI projected to be realized around the **end of Q2 next year**.  **[1806837_2138834_6]** **[1806837_2138834_10]**

Vertex Lowers Full-Year Outlook Amid Investment Phase

- Vertex lowered its **full-year revenue outlook by approximately $12 million** at the midpoint, attributing the adjustment to softer entitlements, lower true-up revenue, and elongated deal cycles due to slower ERP migrations.  **[1806837_2138914_1]** 
- The company is in an investment phase, with R&D expenses at **21% of revenues**, focusing on e-invoicing country coverage and AI capabilities.  **[1806837_2138914_6]** 
- Vertex expects **margin expansion to accelerate in the second half of 2026** as current investment cycles, particularly for e-invoicing, conclude.  **[1806837_2138914_10]** 
- E-invoicing is identified as a significant growth driver, representing a **$100 million revenue opportunity by 2028**, due to its mandated third-party compliance requirement.  **[1806837_2138914_9]**

Vertex (VERX)