Vertex (VERX) Investor presentation summary

Strategic positioning and market overview

• Recognized as a global leader in indirect tax technology, serving complex enterprise needs with a proven growth record and high customer retention.

• Indirect tax market is vast and complex, with $4.4T in global revenue and thousands of jurisdictions and products.

• Secular growth drivers include digital transformation, regulatory changes, globalization, and increasing business complexity.

• End-to-end solutions span ERP, e-commerce, procurement, and compliance, integrated on a cloud platform.

• Comprehensive ecosystem supports every step of tax determination, compliance, and audit, with specialized tools for various industries.

Competitive advantages and technology

• Maintains a tax content database with over 1 billion rates and rules, supporting 195 countries and 20,000+ jurisdictions.

• AI enhances productivity, efficiency, and competitive advantage, with human-in-the-loop governance for accuracy.

• Deep integration into enterprise workflows increases switching costs and pricing power.

• Smart Categorization uses AI and LLMs to automate product classification, reducing errors and manual effort.

• AI-driven internal efficiencies span managed services, sales, tax research, customer support, and engineering.

Customer base and retention

• Serves 4,895 direct customers, including over 60% of the Fortune 500 and top companies in multiple industries.

• Top 50 customers have an average tenure of 20 years, with a 95% gross retention rate.

• Scaled customer count nearly doubled since 2020, with a 14% CAGR.