Vertex (VERX) Wells Fargo 8th Annual TMT Summit Conference summary

Business overview and market drivers

• Provides integrated tax compliance solutions for transaction taxes, serving large global enterprises facing complex, multi-jurisdictional requirements.

• Demand is driven by business model changes, regulatory shifts, and technology upgrades, often prompting companies to move from in-house to third-party solutions.

• Regulatory changes, especially in indirect tax, are frequent and create ongoing compliance challenges, fueling adoption.

• Technology migrations, such as SAP ECC to S/4HANA, are significant catalysts for new business.

E-invoicing and Ecosio acquisition

• Acquired Ecosio, a $12M ARR business, to address growing e-invoicing mandates in over 50 countries.

• E-invoicing is becoming mandatory in major economies, creating a large greenfield opportunity.

• 2025 will focus on expanding country coverage and building referenceability; material revenue impact expected from 2026 onward.

• Early adoption phase underway, targeting existing large enterprise customers.

Technology partnerships and cloud transition

• Leading provider of tax technology in the SAP ecosystem, with certified solutions and strong referenceability.

• SAP S/4HANA migration expected to accelerate in 2025–2027, providing a steady pipeline of opportunities.

• Cloud transition is ongoing: 50% of revenue is now cloud-based, with most new customers choosing cloud.

• Cloud migrations typically yield a 30–40% uplift in contract value.