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

Vertex Inc. demonstrated strong financial performance in its recent quarter, reporting cloud revenue of approximately $92.0 million, reflecting a year-over-year growth of 30%, which aligns with the previous quarter's growth rate. The company achieved an adjusted EBITDA margin expansion to 23% despite substantial investments in AI and e-invoicing initiatives, indicating effective cost management and operational efficiency. Furthermore, total revenue increased by 12.7% year-over-year, driven by consistent growth in both subscription and professional services revenues, alongside an increase in indirect customer count, which underscores the company's solid market position and growth trajectory.

Vertex Inc. faces a negative outlook primarily due to flat year-over-year customer counts and a decrease in customer numbers sequentially, signifying stagnation in customer acquisition. The company's revenue guidance has been revised down by approximately $12 million, indicating potential weakness in revenue growth driven by lower entitlement growth and slower deal cycles. Additionally, a decline in net revenue retention rates and the impact of retail bankruptcies leading to contract cancellations further contribute to concerns regarding Vertex's financial stability in the current economic climate.