Vertex, Inc. (NASDAQ: VERX)

Vertex, Inc., is a leading provider of enterprise compliance technology for global commerce, specializing in automating and governing transaction-based compliance obligations. The company's software, data, and services help businesses manage indirect taxes such as sales tax, use tax, and value-added tax (VAT) across various jurisdictions. Vertex's solutions are designed to embed compliance automation directly into the systems and workflows that drive global commerce, enabling customers to determine transaction-level obligations, manage compliance data, support invoicing and reporting requirements, and maintain audit-ready records.

Vertex generates revenue through its comprehensive suite of software solutions, data services, and professional services. The company's primary products include tax determination solutions, compliance and reporting solutions, document management tools, and analytics and insights platforms. Vertex's customer base is diverse and includes over 4,800 direct customers, many of whom are part of the Fortune 500. These customers span various industries, including retail, technology, manufacturing, and digital marketplaces. The company's solutions are deployed in cloud and hybrid environments, supported by implementation and professional services tailored to unique business and operational requirements.

• Tax Determination Solutions: Vertex's tax determination solutions enable real-time calculation of indirect taxes and applicable fees for sale and purchase transactions. The solution includes a powerful indirect tax calculation engine that applies rules-based logic from the company's proprietary content database to determine taxability, identify precise taxing jurisdictions, and apply the appropriate amount of tax to each transaction in real-time. The solution supports determination for various tax types, including sales tax, consumer and seller use tax, VAT, communications tax, leasing tax, payroll tax, and lodging and occupancy tax. Additionally, Vertex AI powers intelligence across the platform, automating routine work, surfacing relevant insights, and guiding users toward better outcomes with less manual effort. The company also offers Smart Categorization, an AI-powered solution designed to reduce the manual effort required to map product SKUs to the correct tax categories across jurisdictions.

• Pre-Built Integrations: Vertex's solutions are supported by a suite of powerful, pre-built integrations that enable real-time coordination between the company's solutions and major business applications, such as Adobe/Magento, Coupa, Microsoft Dynamics, NetSuite, Oracle, Salesforce, SAP, SAP Ariba, Shopify, Workday, and Zuora. These integrations include mapping data fields, business logic, and configurations to improve the processing of transactions to and from Vertex's solutions. The majority of these integrations are designed, tested, and supported by Vertex, with additional partner-developed integrations available through a rigorous certification program.

• Industry-Specific Solutions: Vertex offers a range of solutions tailored to specific industries with unique indirect tax needs, such as retail, communications, and leasing. For example, the retail solution supports omnichannel transactions spanning store kiosks, eCommerce websites, catalog sales, and mobile device transactions. The communications solution supports the determination of taxes, surcharges, and fees affecting U.S. providers of communication services, including wireless, voice-over-IP, satellite, internet, and video and audio streaming services.

• Technology-Specific Solutions: Vertex provides tools and enhancements for specific technology ecosystems, such as SAP or Oracle. For instance, the Chain Flow Accelerator tool allows configuration of tax-specific flows within the SAP stack. Additionally, Vertex offers an SAP-specific tool set that provides customers the ability to maintain, analyze, and validate tax data in procure-to-pay as well as sales and billing systems, enhancing its usefulness for indirect taxes and other business applications.

• Document Management: Vertex's document management solutions automate the validation and storage of sales tax exemptions and reseller certificates, enabling enterprises to manage large quantities of documents to ensure accurate tax determination.

• Compliance and Reporting Solutions: Vertex's global compliance and reporting solutions enable the automation of signature-ready returns and remittance of indirect tax to appropriate jurisdictions. These solutions include workflow management tools, such as calendar and document management, and role-based security and event logging, which supports internal control over financial reporting and compliance with the Sarbanes-Oxley Act of 2002. The company also offers e-invoicing solutions that support the end-to-end lifecycle of compliant electronic invoices from creation and data enrichment through validation, submission, and clearance, where required, in accordance with jurisdictional mandates.

• Audit and Planning Solutions: Vertex's tax data management tools enable enterprises to unify transaction data from multiple business applications and sources. These solutions allow tax teams to view detailed transaction-level tax data, identify anomalies or errors, and establish necessary rules to address gaps in data and audit logs for any adjustments or corrections that have been made. Additionally, the company's analytics and insights tools improve data quality and provide data intelligence to optimize the end-to-end tax process and improve business outcomes.

• Services Solutions: Vertex offers implementation services to help customers realize the full benefit of their solutions at initial deployment. These services include configuration, data migration and implementation, and premium support and training. Customers can also license indirect tax returns outsourcing as a managed service for compliance in the U.S. and Canada, which includes indirect tax return preparation, filing and tax payment, and notice management.

Vertex holds a strong position within the enterprise compliance technology industry, serving a significant portion of the Fortune 500 and leading companies in various sectors. The company's competitive advantages include its comprehensive suite of solutions, deep tax content expertise, and robust integrations with major business applications. Vertex's solutions are designed to address the growing complexity of global regulations, cross-border trade, and jurisdictional differences, providing accurate tax determination and compliance support. The company's competitive landscape includes other tax-specific solutions from various vendors, as well as businesses utilizing native ERP capabilities, outsourced transaction tax compliance services, and in-house practices. Vertex's ability to deliver real-time tax determinations, ease of deployment and use, and lower total cost of ownership are key factors that differentiate it from competitors.

Vertex's customer base is diverse and includes many of the largest and most well-known companies in retail trade, wholesale trade, and manufacturing. The company serves the majority of the Fortune 500, as well as a majority of the top 10 companies by revenue in industries such as retail, technology, and manufacturing. Additionally, Vertex supports leading digital marketplaces and various professional service providers, including accounting firms and outsourcing firms. As of December 31, 2025, Vertex had 4,867 direct customers, with an Annual Recurring Revenue (ARR) per customer of $137,867. The company's solutions are used by enterprises with highly distributed global supply chains and distribution networks, creating complexity in managing cross-border taxation and country-specific compliance and reporting mandates. Vertex's customer base also includes many of Europe's largest companies in industries such as industrial and chemical manufacturing, pharmaceutical, medical device, and metals and mining.