Vertex (VERX) investor relations material

Company overview and market position

• Provides global transaction compliance and indirect tax solutions, serving over 60% of the Fortune 1000 and major European firms.

• Headquartered in Pennsylvania, operates worldwide, with a 47-year history and a focus on compliance, e-invoicing, and value-added tax.

• Deeply embedded in customer infrastructure, integrating with multiple ERP and point-of-sale systems across various countries.

• Business model is revenue band-based, growing with customer expansion rather than seat count.

Strategic priorities and AI transformation

• Top priorities include strengthening core business, capitalizing on global e-invoicing mandates, and accelerating AI adoption.

• AI initiatives target both internal operations (software development, customer service, sales, marketing) and customer-facing products.

• Smart Categorization uses AI to automate product classification, initially for retail, expanding to medical devices and other sectors.

• AI Copilot enhances user experience within core products, while standalone AI products offer new monetization opportunities.

• AI-driven efficiency improvements have led to a 44% increase in software development velocity.

Product innovation and customer engagement

• Product roadmap is informed by direct customer engagement, user groups, and analysis of AI tool interactions.

• Long-term customer relationships foster co-development and adaptation to evolving tax legislation.

• Recent enhancements include certificate management and deeper integration of e-invoicing with VAT compliance.