Vertex Inc (VERX) 2024 Q3 法說會逐字稿

Good day and welcome to the Vertex Inc third quarter, 2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance? Please signal a conference specialist by pressing the star key followed by zero.

大家好，歡迎參加 Vertex Inc 2024 年第三季財報電話會議。所有參與者將處於只聽模式。您需要幫助嗎？請按星號鍵然後按零通知會議專家。

After today's presentation, there will be an opportunity to ask questions to ask a ask a question. You may press star then one on your telephone keypad to withdraw your question. Please press star. Then two. Please note this event is being recorded.

今天的演講結束後，將有機會提問。您可以按下電話鍵盤上的星號鍵然後按一鍵來撤回您的問題。請按星號。然後是兩個。請注意，該事件正在被記錄。

I would now like to turn the conference over to Joe Crivelli, Vice President, Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係副總裁喬·克里維利 (Joe Crivelli)。請繼續。

Hello and thanks for joining us to discuss Vertex Inc third quarter financial results. I'm Joe Crivelli, Vice President, Investor Relations, David DiStefano, our President and CEO and John Schwab. Our CFO are with us. Also, today during this call, we may make forward-looking statements about expected future results. Actual financial results may differ due to risks and uncertainties. These risks and uncertainties are described in our filings with the Securities and Exchange Commission.

您好，感謝您加入我們討論 Vertex Inc 第三季財務表現。我是投資者關係副總裁 Joe Crivelli、我們的總裁兼執行長 David DiStefano 和 John Schwab。我們的財務長和我們在一起。此外，今天在本次電話會議中，我們可能會對預期的未來結果做出前瞻性陳述。由於風險和不確定性，實際財務結果可能有所不同。這些風險和不確定性在我們提交給美國證券交易委員會的文件中有所描述。

In our remarks. Today, we will also refer to non-GAAP financial metrics. A reconciliation of these metrics to GAAP is provided in today's press release.

在我們的評論中。今天，我們也將參考非 GAAP 財務指標。今天的新聞稿提供了這些指標與 GAAP 的對照表。

This call is being recorded and will be available for replay on our investor relations website. I'll now turn the call over to David.

本次電話會議正在錄音，並將在我們的投資者關係網站上重播。現在我將電話轉給大衛。

Welcome everyone and thank you for joining us in the third quarter of 2024. Vertex Inc delivered very strong financial results while advancing our long term strategic and financial priorities from a financial standpoint, we delivered strong revenue growth adjusted EBITDA and free cash flow, and we were GAAP earnings positive for the fourth quarter in a row.

歡迎大家，感謝您在 2024 年第三季加入我們。Vertex Inc 在推進我們的長期策略和財務重點的同時，從財務角度來看，實現了非常強勁的財務業績，我們實現了強勁的收入增長調整後 EBITDA 和自由現金流，並且連續第四個季度實現 GAAP 盈利。

In addition, we achieved a significant strategic goal in late August. When we completed our announced acquisition of Ecosio A fast growing E&E invoicing company based in Austria. We are very excited to have a Ecosio as part of the Vertex Inc family. We believe our combined solution will be a springboard for sustained growth in international markets where value added tax is the main source of indirect tax revenue for governments.

此外，我們在8月底實現了一項重大戰略目標。當我們完成宣布對總部位於奧地利的一家快速發展的電子電氣發票公司 Ecosio 的收購時。我們非常高興 Ecosio 成為 Vertex Inc 家族的一部分。我們相信，我們的綜合解決方案將成為國際市場持續成長的跳板，而增值稅是政府間接稅收的主要來源。

Our combined Vertex Inc E-invoicing solution is powered by our global tax content and built on our data platform. This allows our customers to effectively manage the entire indirect tax workflow from tax determination and compliance to planning and audit defense through a single platform. This creates tremendous value for our Vertex Inc community at a customer event in Germany in September. We previewed our offering with 40 key customers and prospects as well as representatives from our partner ecosystem. The excitement was clear with one of our largest customers telling us we have changed the competitive landscape.

我們整合的 Vertex Inc 電子發票解決方案以我們的全球稅務內容為支撐，並建立在我們的資料平台上。這使得我們的客戶能夠透過單一平台有效地管理從稅務確定和合規到規劃和審計防禦的整個間接稅工作流程。這為我們 9 月在德國舉行的客戶活動中的 Vertex Inc 社群創造了巨大的價值。我們向 40 位主要客戶和潛在客戶以及合作夥伴生態系統的代表預覽了我們的產品。我們的一位最大客戶告訴我們，我們改變了競爭格局，這種興奮之情溢於言表。

This was then topped by the experience I had at our annual customer conference. Last week. At this event, we enjoyed record customer and partner attendance. We previewed several exciting new AI capabilities including our recently released copilot and us soon to be released smart categorization offering.

而我在我們的年度客戶會議上的經驗則更是錦上添花。上個星期。在本次活動中，我們的客戶和合作夥伴的出席率創下了歷史新高。我們預覽了幾項令人興奮的全新 AI 功能，包括我們最近發布的副駕駛和即將發布的智慧分類產品。

We also highlighted ways we are enhancing our support offerings based on customer input and unveiled significant enhancements to our global partner enablement program.

我們也強調了根據客戶意見增強我們的支援服務的方法，並公佈了我們全球合作夥伴支援計畫的重大改進。

The strong relationships we maintained drives our ongoing success and we never forget that our customers total experience matters that shows up at customer events throughout the year.

我們維持的牢固關係推動著我們不斷取得成功，我們永遠不會忘記，客戶的整體體驗非常重要，這一點在全年的客戶活動中都有所體現。

I left both events extremely energized and convinced that we have the right strategy to help our enterprise customers and prospects tackle the compliance challenges of today and tomorrow.

參加完這兩次活動後，我感到非常振奮，並堅信我們擁有正確的策略來幫助我們的企業客戶和潛在客戶應對當前和未來的合規挑戰。

Now turning to the financials revenue was $170.4 million in the second quarter, 17.5% year over year software subscription growth was 20.6% and cloud revenue growth was 29.9%. This includes a $1 million revenue contribution from Ecosio, John will discuss the organic financial results in a moment.

現在談到財務，第二季的營收為 1.704 億美元，年增 17.5%，軟體訂閱成長 20.6%，雲端收入成長 29.9%。其中包括來自 Ecosio 的 100 萬美元收入貢獻，約翰稍後將討論有機財務結果。

The earnings power of our financial model is demonstrated by adjusted EBITA of $38.6 million in the third quarter, which represents an adjusted EBITTA margin of 22.7% adjusted EBITA margin has expanded in every single quarter since we completed our multiyear growth investment program in mid 2023 demonstrating the quality of our earnings free cash flow was $18.4 million in the third quarter. In addition, GAAP net income was $7.2 million or $0.04 per diluted share.

我們財務模型的獲利能力體現在第三季的調整後 EBITA 為 3,860 萬美元，這意味著調整後的 EBITTA 利潤率為 22.7%，自 2023 年中期完成多年增長投資計劃以來，調整後的 EBITA 利潤率每個季度都在擴大，證明了我們盈利自由現金流的質量，第三季度為 1840 萬美元。此外，GAAP 淨收入為 720 萬美元，即每股攤薄收入 0.04 美元。

I'll now share some additional key performance indicators note that these figures are Vertex Inc only and do not include the impact of SYSTAX or Ecosio which John will cover in a moment.

我現在將分享一些額外的關鍵績效指標，請注意，這些數據僅限於 Vertex Inc，並不包括 John 稍後將介紹的 SYSTAX 或 Ecosio 的影響。

NRR was 111% which is up from 110% in the second quarter and equal to 111% in last year's third quarter. GRR was 95% in the third quarter which maintains our targeted best in class range of 94% to 96%.

NRR 為 111%，高於第二季的 110%，與去年第三季的 111% 持平。第三季的 GRR 為 95%，維持了我們目標最佳範圍 94% 至 96%。

Annual recurring revenue was $563 million. Up 16.1% from last year's third quarter.

年經常性收入為 5.63 億美元。較去年第三季成長16.1%。

Cloud revenue growth was 28.5% in line with our stated target for the year scaled customer count which represents customers delivering annual revenue. Over $100,000 grew 13% year over year and average revenue per customer was $131,400. Up 16.6% from $112,690 in last year's third quarter.

雲端收入成長了 28.5%，符合我們規定的年度規模客戶數量目標，該目標代表了客戶帶來的年度收入。100,000 美元以上客戶的收入年增 13%，每位客戶的平均收入為 131,400 美元。比去年第三季的 112,690 美元成長 16.6%。

My leadership team and I are laser focused on executing our strategy as we believe we have room to continue to grow revenue, further improve profitability. And free cash flow and build on our market leading customer metrics. This is because we are in a unique segment of the software market. Indirect taxes are incredibly complex. For example, we now maintain over $1 billion effective rates and rules in our differentiated tax content database. This content fuels all our solutions.

我和我的領導團隊全神貫注於執行我們的策略，因為我們相信我們有繼續增加收入、進一步提高獲利能力的空間。以及自由現金流並建立在我們市場領先的客戶指標之上。這是因為我們處於軟體市場的一個獨特領域。間接稅極為複雜。例如，我們現在在差異化稅收內容資料庫中維護超過10億美元的有效稅率和規則。這些內容為我們所有的解決方案提供支援。

Indirect taxes impact every single transaction and every single company in every jurisdiction around the world. And yet so many enterprises are still calculating and reporting indirect taxes based on legacy internally developed software and systems that were built decades ago for these companies. Things like ERP conversions, mergers and acquisitions and audit pressure from taxing authorities cause their legacy systems to be inadequate to support their increasingly complex and sophisticated business. This in turn makes switching to an expert provider like Vertex Inc an absolute necessity. In addition, we have two multiyear tailwinds coming our way that will accelerate the migration from homegrown to our cloud solutions.

間接稅影響著世界各地每個司法管轄區的每一筆交易和每一家公司。然而，許多企業仍然基於幾十年前為其構建的舊式內部開發軟體和系統來計算和報告間接稅。ERP 轉換、併購以及稅務機關的審計壓力等因素導致他們的原有系統不足以支援日益複雜和精密的業務。反過來，這使得轉換到像 Vertex Inc 這樣的專業提供者成為絕對必要的。此外，我們面臨兩個多年的順風，這將加速我們從本土解決方案向雲端解決方案的遷移。

The first of these has received a lot of attention from Wall Street lately, the coming super cycle of ERP conversions that is partly driven by legacy ERP systems that will be end of life by leaders in the space.

其中第一個最近受到了華爾街的極大關注，即即將到來的 ERP 轉換超級週期，這在一定程度上是由傳統 ERP 系統推動的，這些系統將被該領域的領導者終止使用。

And the second is the reason we bought a Vertex Inc last quarter. The coming wave of E-invoicing regulations that will make countries with vat regimes for indirect tax, fertile hunting ground for Vertex Inc 's global indirect tax platform net net. We believe the opportunities that are in front of us are sizable and will fuel revenue growth and profitability for years to come.

第二個是我們上個季度收購 Vertex Inc 的原因。即將到來的電子發票法規浪潮將使實行增值稅間接稅制度的國家成為 Vertex Inc. 全球間接稅平台淨利潤的沃土。我們相信，我們面前的機會是巨大的，並將推動未來幾年的收入成長和獲利能力。

I'll now highlight some notable wins in the quarter. It was an exciting quarter on the new business front with new logos. So I'll start there. We landed a very high profile new logo deal with a major electric vehicle manufacturer. This new scaled customer moved to Vertex Inc from a competitive solution that didn't support their business effectively. This customer's operating environment is unique in that they use a custom homegrown ERP system. In turn, this introduces a level of complexity and customization that gives Vertex Inc a major edge over competitors. The result was nearly seven figures of new recurring revenue for Vertex Inc across a comprehensive solution set including sales use and vat tax calculation, sales tax returns, address cleansing and exemption certificate management.

現在我將重點介紹本季的一些顯著勝利。這是一個令人興奮的季度，新業務領域有著新的標誌。因此我就從那裡開始。我們與一家大型電動車製造商達成了一項非常引人注目的新標誌協議。這家新擴大規模的客戶從無法有效支援其業務的競爭解決方案轉向了 Vertex Inc。該客戶的營運環境很獨特，因為他們使用客製化的自主研發 ERP 系統。反過來，這引入了一定程度的複雜性和客製化，使 Vertex Inc 在競爭中佔據巨大優勢。結果是，Vertex Inc 透過一套全面的解決方案（包括銷售使用和增值稅計算、銷售稅申報、地址清理和免稅證書管理）獲得了近七位數的新經常性收入。

As an example of a company that switched from a homegrown solution in the third quarter, we won a mid-six figure new contract with one of the largest fast food restaurant chains in the world. This company decided to move to a vended solution due to an oracle cloud transformation. We had several exciting wins in Europe during the quarter as well.

作為第三季從自主開發解決方案轉換而來的公司的一個例子，我們與世界上最大的快餐連鎖店之一贏得了一份六位數中間的新合約。由於 Oracle 雲端轉型，該公司決定轉向銷售解決方案。本季我們在歐洲也取得了幾項令人興奮的勝利。

Our integrated Vertex Inc Ecosia solution won the day for an e invoicing opportunity with a SAS software company based in Germany. This customer wanted to get ahead of the upcoming E- invoicing mandate in Germany and conducted an RFP and evaluated several competitors in the space while this was a modest five figure new business win. It evidenced the strength of our E-invoicing solution as we prevailed over several of the most formidable competitors in the space.

我們整合的 Vertex Inc Ecosia 解決方案贏得了與德國 SAS 軟體公司合作的電子發票機會。該客戶希望在德國即將出台的電子發票強制規定中取得領先，並進行了 RFP 並評估了該領域的幾家競爭對手，而這是一個價值五位數的新業務勝利。這證明了我們的電子發票解決方案的實力，因為我們戰勝了該領域幾家最強大的競爭對手。

We want a six figure new logo deal for vat calculation and compliance with a leading Swiss agricultural company. This customer previously used a homegrown tax calculation solution. But the level of complexity of their business as well as an upgrade to their commodities trading platform, moved them to look at vended solutions. BTEX prevailed with a global solution including capabilities for Brazil.

我們希望與一家領先的瑞士農業公司達成六位數的新標誌協議，用於增值稅計算和合規。該客戶之前曾使用過自主研發的稅務計算解決方案。但其業務的複雜程度以及商品交易平台的升級，促使他們考慮自動販賣解決方案。BTEX 憑藉包括針對巴西的能力在內的全球解決方案而獲得成功。

And we want a six figure deal with an international materials manufacturer based in Austria. This company is planning for an SAPS four Honda migration in 2025. This company selected Vertex Inc in part due to SYSTAX as they have extensive operations in Brazil. In addition, we had a strong referral from one of our top accounting partners.

我們想與一家總部位於奧地利的國際材料製造商達成六位數的交易。該公司計劃在 2025 年實現 SAPS 四款本田車型的移植。該公司之所以選擇 Vertex Inc，部分是因為 SYSTAX，因為後者在巴西擁有廣泛的業務。此外，我們還得到了一位頂級會計合夥人的強力推薦。

Now turning to wins with existing customers. One of the largest technology companies in the world expanded its entitlements with Vertex Inc in the third quarter. This led to an annual entitlement increase across a comprehensive solution including sales use and value added tax, communications, tax content, retail tools and S AP accelerators. This was the largest entitlement ever done in our 46 year history and increase well into the seven figures that was necessitated by the growth of our customers' business.

現在轉向贏得現有客戶。全球最大的科技公司之一在第三季擴大了與 Vertex Inc 的權益合作。這導致了包括銷售使用和增值稅、通訊、稅收內容、零售工具和 S AP 加速器在內的綜合解決方案的年度權益增加。這是我們 46 年歷史上最大的一筆授權，並且由於我們客戶業務的成長而增加至七位數。

A cloud transformation project led a global pharmaceutical company to expand its relationship with Vertex Inc the company purchased additional entitlements for the areas of the business that we did not previously serve across a very comprehensive solution that included calculation for sales use and vat tax as well as FTX tools, Sap accelerator exemption certificate manager, address cleansing and other add ons. The net result was a high six figures of new revenue for Vertex Inc, nearly doubling our cloud business. With this long standing customer, an international industrial manufacturer expanded with Vertex Inc to consolidate systems and become more efficient.

一個雲端轉型專案促使一家全球製藥公司擴大了與 Vertex Inc 的關係，該公司為我們之前未提供過服務的業務領域購買了額外的權利，該解決方案包括銷售使用和增值稅計算以及 FTX 工具、Sap 加速器豁免證書管理器、地址清理和其他附加組件。淨結果是 Vertex Inc 的新收入達到了六位數的高位，幾乎使我們的雲端業務翻了一番。透過與這家長期客戶的合作，一家國際工業製造商與 Vertex Inc 合作擴大了業務範圍，以整合系統並提高效率。

The company which had grown to acquisition was using Vertex Inc for sales tax calculation and compliance in certain segments of his business as well as competitors and manual processes and others. By standardizing on Vertex Inc, the company can improve accuracy and efficiency. As a result, we now provide the customer with a comprehensive solution set including tax mapping tools, address cleansing and exemption certificate management. Alongside the original sales tax CALC and compliance solution.

已發展到被收購的公司正在使用 Vertex Inc 來計算和遵守其業務的某些部分以及競爭對手和手動流程等的銷售稅。透過對 Vertex Inc 進行標準化，該公司可以提高準確性和效率。因此，我們現在為客戶提供一套全面的解決方案，包括稅務映射工具、地址清理和豁免證書管理。與原有的銷售稅 CALC 和合規解決方案結合。

The last two customer expansions are very notable because they demonstrate the reality that when we land a new logo, it's very unlikely that the company is implementing our solutions across all the operating units of its business, whether they only have challenges in one part of the business initially or they subsequently make acquisitions. There are always opportunities to expand our software footprint as we prove out our capabilities and earn their confidence. This is an essential element of our long term success.

最後兩個客戶擴展非常引人注目，因為它們表明了這樣一個現實：當我們推出新標誌時，該公司不太可能在其業務的所有營運部門實施我們的解決方案，無論他們最初只在業務的某個部分遇到挑戰，還是隨後進行收購。當我們證明我們的能力並贏得他們的信任時，總是有機會擴大我們的軟體足跡。這是我們長期成功的關鍵因素。

I really appreciate how excited investors are about the upcoming transition in the SAP ecosystem from ECC to S four Hana could mean for Vertex Inc in the third quarter, an existing customer that is a global manufacturers of semiconductor equipment executed an enterprise wide transformation. As part of this process, they expanded their use of Vertex Inc O series globally to support vat compliance obligations that previously have been managed natively within their ERP.

我非常感激投資者對 SAP 生態系統即將從 ECC 到 S four Hana 的轉變感到興奮，這可能對 Vertex Inc 來說意味著在第三季度，這家現有客戶（一家全球半導體設備製造商）進行了企業範圍的轉型。作為此過程的一部分，他們在全球範圍內擴展了 Vertex Inc O 系列的使用範圍，以支援先前在其 ERP 中本地管理的增值稅合規義務。

And while I don't think this example is necessarily typical of what we will see across our customer base for this customer. The transition led mid six figures of new revenue. A more than tenfold year over year increase across increased entitlements for sales tax. The addition of consumer use tax and the licensing of a cross section of S AP tools.

儘管我認為這個例子不一定能代表我們在整個客戶群中看到的該客戶的情況。此次轉型帶來了六位數左右的新收入。銷售稅額度較上年同期增加十倍以上。增加消費者使用稅和 S AP 工具橫斷面的許可。

And finally, I will highlight that one of the world's largest equipment rental companies expanded with Vertex Inc in conjunction with a company wide cloud transformation project. The customer moved from a legacy on prem offering to our O series cloud offering and selected us for best of breed, leasing sales tax and consumers use tax capabilities. This resulted in mid six figures of new revenue for Vertex Inc a fourfold year over year increase with this customer in closing, it was a great quarter for Vertex Inc with strong financial results and positive momentum on the new business front with both new and existing customers. Our business is executing as we expected and best of all, we have plenty of runway to continue to drive revenue growth and earnings leverage. John will now take you through the financials. John.

最後，我要強調的是，世界上最大的設備租賃公司之一與 Vertex Inc 合作進行了全公司範圍的雲端轉型專案。客戶從傳統的本地部署產品轉向我們的 O 系列雲端產品，並選擇我們作為最佳的選擇，提供租賃銷售稅和消費者使用稅服務。這為 Vertex 公司帶來了六位數中間段的新收入，隨著該客戶的完成，收入同比增長了四倍，對於 Vertex 公司來說，這是一個出色的季度，財務業績強勁，新老客戶的新業務方面都呈現積極的勢頭。我們的業務正在按照預期執行，最重要的是，我們有足夠的空間來繼續推動營收成長和獲利槓桿。約翰現在將帶您了解財務狀況。約翰。

Thanks David and good morning, everyone. I'll now review our third quarter financial results and provide guidance for the fourth quarter and full year 2024 in the third quarter, revenue was $170.4 million. Up 17.5% year over year O Ecosio contributed $1 million of revenue during the quarter after it was acquired at the end of August. Accordingly, on an organic basis, revenue was $169.4 million and revenue growth was 16.8% exceeding the high end of our revenue guidance for the quarter true revenue which represents a catch up payment, typically billed as part of the renewal process when customers exceed their entitlements was about $2 million higher than expected in the third quarter. This is a benefit to having large and growing customers that are seeing value from our software. And true up revenue positively impacts ARR growth when the renewal process is completed.

謝謝大衛，大家早安。我現在將回顧我們第三季的財務業績，並為第四季和 2024 年全年提供指引。O Ecosio 在 8 月底被收購後，在本季度貢獻了 100 萬美元的收入，年增 17.5%。因此，從有機基礎上看，收入為 1.694 億美元，收入增長 16.8%，超過了我們本季度收入預期的高端，實際收入代表了補繳款項，通常在客戶超出其權益時作為續約過程的一部分進行計費，比第三季度的預期高出約 200 萬美元。對於那些不斷成長的大型客戶來說，這是一個好處，因為他們看到了我們軟體的價值。當續約過程完成時，實際收入會對 ARR 成長產生正面影響。

Subscription revenue increased 20.6% period over period to $146.3 million.

訂閱收入環比成長 20.6%，達到 1.463 億美元。

Services revenue grew 1.8% to $24.2 million.

服務收入成長1.8%至2420萬美元。

The slower services revenue growth this quarter reflects the impact of our previously discussed effort to direct more implementation opportunities to our channel partners who are an important referral source for new software opportunities. In essence, we are trading near term implementation services revenue for longer term recurring software revenue, cloud revenue was $71 million in the third quarter. Up 29.9% from last year's third quarter. And ahead of our guidance for the year, Ecosio added about one point to cloud revenue growth.

本季服務收入成長放緩反映了我們之前討論過的努力的影響，即將更多的實施機會引導到我們的通路合作夥伴，他們是新軟體機會的重要推薦來源。本質上，我們正​​在用短期實施服務收入換取長期經常性軟體收入，第三季的雲端收入為 7,100 萬美元。較去年第三季成長29.9%。並且，Ecosio 的年度雲端收入成長超出了我們的預期，成長了約一個百分點。

Annual recurring revenue or ARR was $576.8 million. At quarter end Ecosio added $8.1 million to ARR and SYSTAXadded $5.9 million excluding these amounts. Organic. ARR was at 16.1% net revenue retention or NRR was 111% up one point sequentially and equal to last year's third quarter.

年經常性收入或ARR為5.768億美元。截至季末，Ecosio 為 ARR 增加了 810 萬美元，而 SYSTAX 則增加了 590 萬美元（不包括這些金額）。有機的。ARR 淨收入保留率為 16.1%，或 NRR 為 111%，比上一季上升一個點，與去年第三季持平。

Our gross revenue retention or GRR remained at 95% at quarter end within our targeted range of 94 to 96%.

我們的總收入保留率或 GRR 在季度末保持在 95% 左右，處於我們 94% 至 96% 的目標範圍內。

Our average annual revenue per customer or AARPC for Vertex Inc standalone was $132,422. Up 17.5% from last year's third quarter including the impact of Ecosio and SYSTAX AAR PC was $118,800.

Vertex Inc 單獨的每位客戶或 AARPC 平均年收入為 132,422 美元。較去年第三季成長 17.5%（包括 Ecosio 和 SYSTAX AAR PC 的影響）達到 118,800 美元。

For the remainder of the income statement discussion, I will be referring to non-GAAP metrics. These non-GAAP metrics are reconciled to our GAAP results in this morning's earnings press release, gross profit for the third quarter was $126.2 million and gross margin was 74%.

對於損益表討論的剩餘部分，我將參考非 GAAP 指標。這些非 GAAP 指標與我們今天早上的收益新聞稿中的 GAAP 結果一致，第三季的毛利為 1.262 億美元，毛利率為 74%。

This compares with gross profit of $103.4 million and a 71.3% gross margin in the same period last year, gross margin on subscription software revenue was 80.5% compared to 78.3% in last year's third quarter and 80.4% in the second quarter of 2024.

相較之下，去年同期的毛利為 1.034 億美元，毛利率為 71.3%，訂閱軟體收入的毛利率為 80.5%，而去年第三季為 78.3%，2024 年第二季為 80.4%。

And gross margin on services revenue was 35% compared to 35.3% in last year's third quarter and 36.8% in the second quarter of 2024.

服務收入的毛利率為 35%，而去年第三季為 35.3%，2024 年第二季為 36.8%。

Turning now to operating expenses in the third quarter, research and development expense was $12.9 million compared to $15.4 million last year.

現在來看看第三季的營運費用，研發費用為 1,290 萬美元，而去年同期為 1,540 萬美元。

With capitalized software spend included R&D spend was $30.1 million in the third quarter, which represents 17.7% of revenue selling and marketing expense was $38.5 million or 22.6% of total revenues. An increase of $7.5 million and approximately 24.1% from the prior year period.

如果將資本化的軟體支出包括在內，第三季的研發支出為 3,010 萬美元，佔收入的 17.7%；銷售和行銷費用為 3,850 萬美元，佔總收入的 22.6%。比去年同期增加 750 萬美元，約 24.1%。

And our general and administrative expense was $35.8 million up $4.9 million from last year.

我們的一般及行政開支為 3,580 萬美元，比去年增加了 490 萬美元。

This was about $5 million higher than both the second quarter of 2024 and a year ago quarter due to timing of expenses that shifted from the first half to the second half of 2024.

由於費用發生時間從 2024 年上半年轉移到下半年，這一數字比 2024 年第二季和去年同期均高出約 500 萬美元。

Just the IBI was $38.6 million an increase of $12 million or 45.1% year over year and exceeding the high end of our quarterly guidance by $3.6 million in the third quarter, operating cash flow was $41.4 million and free cash flow was $18.4 million. We believe that we can continue to deliver strong positive free cash flow on an on on an ongoing basis. I'll note that the fourth quarter is historically our strongest free cash flow quarter of the year on a trailing 12 month basis, we have generated $88.7 million of free cash flow for an EBITDA to free cash flow conversion rate of 60.8%. We believe over the long term we can increase this to 65 to 70%.

光是 IBI 就達到 3,860 萬美元，比去年同期增加了 1,200 萬美元或 45.1%，並且比我們第三季預期的高端高出 360 萬美元，營運現金流為 4,140 萬美元，自由現金流為 1,840 萬美元。我們相信，我們能夠持續不斷地提供強勁的正自由現金流。我要指出的是，從歷史上看，第四季度是我們過去 12 個月中自由現金流最強勁的季度，我們產生了 8,870 萬美元的自由現金流，EBITDA 至自由現金流的轉換率為 60.8%。我們相信，從長遠來看，我們可以將這一比例提高到 65% 至 70%。

Our trailing 12-month free cash flow margin was 13.8%. The highest level since the fourth quarter of 2020 we ended the third quarter with over $279 million of unrestricted cash and cash equivalents and investment securities totaled $7.5 million for additional liquidity. We also have $300 million of unused availability under our recently amended line of credit.

我們過去 12 個月的自由現金流利潤率為 13.8%。截至第三季末，我們擁有超過 2.79 億美元的無限制現金和現金等價物，以及總計 750 萬美元的投資證券，達到了 2020 年第四季以來的最高水平，以提供額外的流動性。在我們最近修改的信用額度下，還有 3 億美元尚未使用的可用資金。

Now, turning to guidance all of which now includes our expectations for a Ecosio for the fourth quarter of 2024 we expect total revenue in the range of $175million to $178 million which would represent 13.9% year over year growth at the midpoint, Ecosio is expected to contribute approximately $3 million to the fourth quarter revenue and services revenue growth is expected to be flat in the fourth quarter. Reflecting our strategy of directing additional services opportunities to our implementation partners and adjusted EBITDA is expected to be in the range of $33million to $37 million which would represent a year over year increase of approximately $3 million at the midpoint.

現在，轉向指引，其中包括我們對 2024 年第四季 Ecosio 的預期，我們預計總收入在 1.75 億美元至 1.78 億美元之間，中間值代表同比增長 13.9%，Ecosio 預計將為第四季度收入貢獻約 300 萬美元，預計第四季度服務收入增長將持平。反映了我們向實施合作夥伴提供更多服務機會的策略，調整後的 EBITDA 預計在 3,300 萬美元至 3,700 萬美元之間，中間值較上年同期增加約 300 萬美元。

This results in full year 2024 guidance of total revenue in the range of $663.3 million to $666.3 million, representing annual revenue growth of 16.1% at the midpoint. And adjusted EBITDA in the range of $146.8 million to $150.8 million (sic - see press release, "$146.9 million and $150.9 million"), representing a year over year increase of $48 million at the midpoint and a full year adjusted EBITDA margin of 22.4%.

這意味著 2024 年全年總收入將在 6.633 億美元至 6.663 億美元之間，中間值年收入成長率為 16.1%。調整後的 EBITDA 在 1.468 億美元至 1.508 億美元之間（原文如此 - 請參閱新聞稿「1.469 億美元和 1.509 億美元」），比去年同期增加 4,800 萬美元，全年調整後的 EBITDA 利潤率為 22.4%。

And full year cloud revenue growth is expected to be 28% to assist you in forward modeling. Ecosio 12 month revenue for 2025 is expected to be approximately $16 million in addition, Osia is expected to be dilutive to adjust the di by approximately $3million to $4 million per quarter through 2025.

預計全年雲端收入成長率為 28%，以幫助您進行前瞻性建模。Ecosio 預計 2025 年 12 個月的營收約為 1,600 萬美元，此外，Osia 預計到 2025 年每季將調整攤薄收益約 300 萬美元至 400 萬美元。

David will now make some closing comments before we open up for Q&A David.

在我們開始問答環節之前，大衛將做一些結束語。

Thanks John. I continue to be very pleased with the performance of the entire Vertex Inc team. 2024 has been a tough year for many SAAS companies, but Vertex Inc continues to execute on our opportunity and deliver extremely strong financial results.

謝謝約翰。我對整個 Vertex Inc 團隊的表現感到非常滿意。 2024 年對於許多 SAAS 公司來說都是艱難的一年，但 Vertex Inc 繼續抓住機會並取得極其強勁的財務業績。

I love where Vertex Inc Inc is positioned right now. We believe we are the undisputed market leader in the enterprise sector. We are proud to serve large sophisticated companies that expand, make acquisitions, enter new markets and ultimately grow their business with us. We maintain long standing trusted relationships with the best technology providers, implementers and accounting and consulting firms in the business. We provide a world class customer experience so that we retain these customers year after year. This is reflected in our best in class gross revenue retention. Our recent HD certification and trustradius recognition further reaffirm our commitment to continuously enhancing the quality of support provided.

我喜歡 Vertex Inc Inc 現在的定位。我們相信我們是企業領域無可爭議的市場領導者。我們很榮幸能夠為那些擴張、收購、進入新市場並最終與我們一起發展業務的大型成熟公司提供服務。我們與業內最好的技術提供者、實施者以及會計和諮詢公司保持著長期信任的關係。我們提供世界級的客戶體驗，以便年復一年地留住這些客戶。這體現在我們一流的總收入保留率上。我們最近獲得的 HD 認證和 trustradius 認可進一步證實了我們致力於不斷提高所提供支援的品質的承諾。

And we have a financial model that delivers mid to high 10s revenue growth year in and year out along with strong profitability and free cash flow.

我們擁有一個財務模型，可以年復一年地實現 15% 到 10% 左右的收入成長，同時實現強勁的獲利能力和自由現金流。

Most importantly, we have multiple tailwinds in our business that we believe will propel us to new heights in the coming years if you haven't already done. So, please mark your calendars for our upcoming Investor Day on March 19th, 2025 in Center city Philadelphia. During the event, we will provide an update on our long term financial targets as well as a deep dive on our strategic plan. I'm also excited to give investors exposure to other members of the Vertex Inc leadership team, a group of experts that I'm extremely proud of and who are the ones piloting this business to the great financial results you've seen since we were public in 2020 with that operator. Please open the call for questions.

最重要的是，我們的業務面臨多重順風，我們相信，如果您還沒有這樣做的話，這些順風將在未來幾年推動我們達到新的高度。因此，請在您的日曆上標記我們即將於 2025 年 3 月 19 日在費城中心舉行的投資者日。活動期間，我們將提供有關我們的長期財務目標的最新資訊以及我們的策略計劃的深入探討。我也很高興讓投資者認識 Vertex Inc 領導團隊的其他成員，我對這群專家感到非常自豪，他們帶領這項業務取得了自 2020 年我們與該運營商上市以來您所看到的出色財務業績。請打開電話來回答問題。

We will now begin the question-and-answer session to ask a question. [Operators Instructions]

我們現在開始問答環節來問一個問題。[操作說明]

The first question comes from Joshua Reilly with Needham & Company Inc. Please go ahead.

第一個問題來自 Needham & Company Inc. 的 Joshua Reilly。

All right. Thanks for taking my questions and a nice execution here in the quarter. There's been a lot of talk obviously about this super cycle of P migration projects. Is there any way you can characterize the current set of projects driving your business today versus a few years ago? And is that what you're seeing that there is an acceleration of these migration projects or do you even see more of an acceleration in leads coming in 2025.

好的。感謝您回答我的問題，並感謝您在本季的出色表現。顯然，人們已經對 P 移民專案超級週期進行了大量討論。您能描述一下目前推動您業務發展的專案與幾年前有何不同嗎？您是否看到這些遷移項目正在加速推進，或者您是否看到 2025 年遷移線索的數量正在加速增加。

Josh, thanks for the question. You know, I think, you know, as we raised our guidance in the second half of the year, it was because we had visibility to good activity for both Q3 and Q4. If you go back to the Q2 call and a lot of it was driven by activity we're seeing in both oracle oci and SAP S migration programs. I will say that that continues to be a source of our success. I can, I also believe that the regulatory pressures that we're seeing around the world are continuing to drive demand for us. So I think both of those will continue to play out in 2025.

喬希，謝謝你的提問。你知道，我認為，你知道，當我們在下半年提高我們的預期時，這是因為我們看到了第三季和第四季的良好活動。如果您回顧第二季的電話會議，您會發現很多都是由我們在 Oracle OCI 和 SAP S 遷移程序中看到的活動所驅動。我想說，這仍然是我們成功的來源。我可以，我也相信我們在世界各地看到的監管壓力正在繼續推動我們的需求。所以我認為這兩種情況都將在 2025 年繼續發揮作用。

Got it. And then just on on the E-invoicing opportunity, is there any country specifically in 2025 that are going to be, we should be aware of that are going to be enacting a mandate? And does that create a sense of urgency for you either in terms of the integration process or from a sales perspective getting out there in specific countries in Europe? Thank you.

知道了。然後就電子發票的機會而言，我們應該知道，到 2025 年是否有哪個國家會頒布法令？而這是否會讓您在整合過程方面，或是從進入歐洲特定國家的銷售角度產生一種緊迫感？謝謝。

Yeah, I'm thrilled with our partnership that we had started months before the acquisition that we actually launched our solution. So we are integrated from a go to market activity already. We have a solution that we're actively selling. So from that perspective, I think we're well prepared for all the mandates, you know, those kind of move Josh on a regular basis. France and Germany are both in the queue and something we're going to be watching coming out of, you know, as we get into 25 in terms of the adoption, you know, them going, those, both those countries going forward with mandates that they have in place. But our go to market activity is in full force here as we're starting in Q1 of 2025.

是的，我對我們的合作感到非常高興，我們在收購前幾個月就建立了合作夥伴關係，並真正推出了我們的解決方案。因此，我們已經整合了市場活動。我們有一個正在積極銷售的解決方案。所以從這個角度來看，我認為我們已經為所有的任務做好了充分的準備，你知道，這些任務會定期發生。法國和德國都在排隊之中，隨著第 25 個成員國通過法案，我們將密切關注這兩個國家的進展，這兩個國家都將按照各自的授權推進法案的通過。但從 2025 年第一季開始，我們的市場活動就將全面展開。

Thank you.

謝謝。

The next question comes from Steven Enders with Citi. Please go ahead.

下一個問題來自花旗的史蒂文·恩德斯（Steven Enders）。請繼續。

Okay, great. Thanks for thanks for these questions this morning. I guess I want to follow up on kind of the, the SAP ecosystem question. I understand that you know, that, that that cycle is, is coming or, you know, kind of kind of kind of here, but it's not like last quarter maybe was a little bit slower than expected and just would be great to kind of get your view on and how you expect kind of that migration cycle to play out from here and kind of how you're thinking about that becoming a contributor to net new moving forward.

好的，太好了。感謝您今天早上提出這些問題。我想跟進一下 SAP 生態系統的問題。我明白，你知道，那個週期即將到來，或者，你知道，有點在這裡，但這並不意味著上個季度可能比預期的要慢一點，只是很高興能聽聽你的看法，以及你預計從現在開始的遷移週期將如何展開，以及你如何看待它成為未來淨新增量的貢獻者。

Yeah, sure, Steve. Thank you for the question. It did. You're right. We did highlight in the first half of the year. It did play out a little slower. I think we see, you know, if you read some of the third party reports like Gartner and others, they all talk about you know, current adoption or migrations have moved a little slower than, than some of the vendors expected. So I think that's going to create more of a backwards fill of demand as we move forward in 2025 and 2026.

是的，當然，史蒂夫。感謝您的提問。確實如此。你說得對。我們確實在上半年取得了突出成績。進程確實有點慢。我想我們看到，如果你讀過一些第三方報告，例如 Gartner 和其他公司，他們都提到，目前的採用或遷移速度比一些供應商預期的要慢。因此，我認為，隨著 2025 年和 2026 年的到來，這將產生更多的需求反向填補。

Remember, the mid, the midsized companies can move a little quicker on this. The large enterprises sometimes take a little longer so they'll start earlier, but there's fewer of them. And I think that's kind of what we've seen as we look at our demand cycle. So it's been solid, but it's why I'm encouraged that we have, you know, one way to grow here in 2025 and beyond because of that's still going to play out with more, you know, more activity I would assume as we move forward. I mean, it's a little different, there's a little more urgency or a little more likelihood in the US from a perspective of the adoption of, of sales tax engines. And we're seeing that very clearly in Europe, it's slightly different from that perspective.

請記住，中型公司在這方面可以行動得更快一些。大企業有時候會稍微長一點，所以開始得早，但是數量比較少。我認為這就是我們在觀察需求週期時所看到的情況。所以這是穩固的，但這就是為什麼我很高興我們在 2025 年及以後有一種方法可以實現增長，因為我認為隨著我們前進，這種方法將發揮更大的作用，開展更多的活動。我的意思是，情況有點不同，從採用銷售稅引擎的角度來看，美國的情況更緊迫或更有可能。我們在歐洲清楚地看到了這一點，從這個角度來看情況略有不同。

There are more to make sure market for that, for the Determination Engines.

對於決心引擎來說，還有更多東西可以確保市場。

Got you. Okay. That's that, that, that's helpful context around that. And then I want to ask on, on the partner ecosystem, I guess beyond SAT and Oracle, just kind of what are you seeing with those other, you know, partnerships that you've been focusing on, on broadening out? And I'm going to be getting to hear an update there.

明白了。好的。就是這樣，這就是有關這一點的有用背景資訊。然後我想問一下，關於合作夥伴生態系統，我想除了 SAT 和 Oracle 之外，您還看到了哪些您一直關注並正在拓展的其他合作夥伴關係？我將會在那裡聽到最新消息。

Yeah, sorry, didn't mean to interrupt you there, Steve the Microsoft and work day activity. Shopify would be the three ID highlight done some really nice work with all three of them seeing good activity. The Microsoft team has been phenomenal to work with and we've really seen some interesting things there and then and workday stepped up in some nice ways as well. So I think activity across all those remains solid, our team is really focused on on execution, making sure we're delivering quality solutions and have the right go to market motion with their teams.

是的，抱歉，我不是故意打擾你的，史蒂夫，微軟和工作日的活動。Shopify 是三個 ID 的亮點，它們都做了一些非常出色的工作，並且三個 ID 都表現出了良好的活動性。與微軟團隊合作非常愉快，我們確實看到了一些有趣的事情，Workday 也在一些方面取得了不錯的進展。因此，我認為所有這些活動仍然穩固，我們的團隊真正專注於執行，確保我們提供高品質的解決方案，並與他們的團隊一起採取正確的市場行動。

Okay, perfect. Thanks for.

好的，完美。謝謝。

Taking the questions.

回答問題。

Yeah, sure.

是的，當然。

The next question comes from Chris Quintero with Morgan Stanley. Please go ahead.

下一個問題來自摩根士丹利的 Chris Quintero。請繼續。

Hey David, hey John Congrats on another stand a quarter here. I want to follow up on that whole p discussion really interesting to see you kind of call that out here. So what that really kind of about the timing? So when these migrations happen and your expectation around that, how long does that typically take before, you know, someone like a Vertex Inc and get brought into those big transformational projects?

嘿，大衛，嘿，約翰，恭喜你又在這裡站了四分之一。我想跟進整個討論，很高興看到您在這裡提出這一點。那麼時間安排到底是怎麼樣的呢？那麼當這些遷移發生時，您對此有何預期？

Yeah, Chris, that's a, that's a really good nuanced question about our space. Obviously, when a business is making a decision to migrate to one of the larger, you know, more modern cloud platforms, tax is not at the forefront of that. So it's going to be, you know, it's going to be several quarters following a decision by a company to actually say, hey, we want to go live, we're going to start a migration process. They're going to organize their consulting partners and all and they're going to start with some of the largest parts of the business and how they need to move through that cycle. Tax is going to come in well, before they go live because you have to prove out your invoice can work in every country you're doing business. So it's a mission critical part of the implementation. So it does get brought in, but it's typically going to lag few quarters, probably two quarters from when the customer starts the process. And those projects can be, you know, for the large enterprises, they're like maybe a three year go life cycle. The good news is we get full contract value once we once David Vertex Inc, even if they haven't gone live with the new solution because they're getting full value by testing it along the way to prove out the invoices will be valid in those new jurisdictions when they go live with the system. So it actually works quite well from that perspective, but you're always going to see a slight delay.

是的，克里斯，這是一個關於我們的空間的非常微妙的問題。顯然，當一家企業決定遷移到更大、更現代化的雲端平台時，稅收並不是首要考慮的問題。所以，你知道，這將會是公司做出決定後的幾個季度，實際上，公司會說，嘿，我們想要上線，我們將開始遷移過程。他們將組織他們的諮詢合作夥伴等，並從業務的一些最大部分開始，並研究如何完成整個週期。在發票正式生效之前，稅金將會及時繳納，因為你必須證明你的發票可以在你開展業務的每個國家使用。因此，這是實施過程中的關鍵任務部分。因此它確實會被引入，但通常會滯後幾個季度，可能比客戶開始該流程晚兩個季度。你知道，對於大型企業來說，這些專案的生命週期可能為三年。好消息是，一旦我們與 David Vertex Inc 合作，即使他們尚未啟用新解決方案，我們也可以獲得全部合約價值，因為他們通過一路測試來證明發票在啟用系統後在那些新司法管轄區內有效，從而獲得了全部價值。所以從這個角度來看它實際上運行得很好，但你總是會看到輕微的延遲。

Got it. Yeah. No, that makes a ton of sense, really, really helpful call there. And then.

知道了。是的。不，這很有道理，真的非常有用。進而。

I want to touch.

我想摸一下。

On a bit on A I know you made the Ryan Tech acquisition in June and you just launched a copilot offering at your conference. So, I was wondering what are some of the early use cases you're really targeting the technology for and what are maybe some key I examples that customers are finding or are you expecting to find by adopting this technology?

關於 A，我知道您在六月收購了 Ryan Tech，並且剛剛在您的會議上推出了副駕駛產品。所以，我想知道您真正針對這項技術的一些早期用例是什麼，以及客戶透過採用這項技術發現的一些關鍵範例是什麼，或者您期望發現哪些關鍵範例？

Yeah, I think from a smart categorization perspective for indirect tax department, one of the hardest projects they have to deal with is the constant mapping of products to tax categories as jurisdictions are changing the rules, their companies are launching new products. And again, in the enterprise market, you know, the skews can be in the millions for some of these larger enterprises and they're always having to stay current to make sure they're going to be taxed effectively in every jurisdiction. So the on creating a smart categorization tool that will help enable the customer to stay current and minimize future audit risk is going to be is compelling.

是的，我認為從間接稅部門的智慧分類角度來看，他們必須處理的最困難的項目之一是隨著司法管轄區不斷改變規則、公司不斷推出新產品，不斷將產品映射到稅收類別。再說一次，在企業市場中，對於一些較大的企業來說，偏差可能高達數百萬，並且他們必須始終保持最新狀態以確保他們在每個司法管轄區都能有效地納稅。因此，創建一個智慧分類工具來幫助客戶保持最新狀態並最大限度地降低未來的審計風險是令人信服的。

And I think that's the one where we've done. We've worked really hard with customers to bring our design partners, customers and partners are actually part of our design process. And we're doing that to build trust in the solution because if you think about it AI is a probabilistic technology and tax needs a deterministic answer. And so the importance of bringing them in as design partners is to build that confidence that the solution we're bringing is going to be validated by the market. And I think we're getting some really good feedback there going deeper. I think as we start to think about the data that we touch, you know, A I will be a compelling tool to bring data insights off of our data fabric and the data layer that we have on our cloud platform to help customers get more insights about their tax efficiency as well as you know, their overall business with some of the transactional data that we're that we get the benefit of touching.

我想這就是我們所做的事情。我們與客戶一起努力，將我們的設計合作夥伴帶到客戶和合作夥伴中，客戶和合作夥伴實際上是我們設計過程的一部分。我們這樣做是為了建立對解決方案的信任，因為如果你仔細想想，人工智慧是一種機率技術，而稅收需要一個確定性的答案。因此，引入他們作為設計合作夥伴的重要性在於建立信心，並相信我們帶來的解決方案將得到市場的驗證。而且我認為我們在深入研究後得到了一些非常好的回饋。我認為，當我們開始思考我們接觸的數據時，AI 將是一個引人注目的工具，可以從我們的數據結構和雲端平台上的數據層中獲得數據洞察，幫助客戶透過接觸一些交易數據，更多地了解他們的稅收效率和整體業務。

Awesome, super.

太棒了，太棒了。

Helpful David. Thank you.

樂於助人的大衛。謝謝。

The next question comes from Alexander Sklar with Raymond James. Please go ahead.

下一個問題來自 Raymond James 的 Alexander Sklar。請繼續。

Great. Thank you. I have a two part question first on theE- invoicing opportunity across your installed base. David maybe can you just help frame what percentage of your customers are going to be impacted by the current and some of those near term rules, any sense for how many of those have, haven't really purchased any E- invoicing solution today where it's really Greenfield for you versus maybe having to rip out another solution? Thanks.

偉大的。謝謝。我有兩個問題，首先是關於你們安裝基礎上的電子發票機會。戴維，您能否幫助估算一下，有多少比例的客戶會受到當前和一些近期規則的影響，有多少客戶目前還沒有真正購買過電子發票解決方案，這對您來說真的是全新解決方案，而不是可能需要放棄另一種解決方案？謝謝。

Yeah, sure. So the good news is we work with multinationals, which means they're doing business in lots of countries. There's over 50 countries that are currently deploying or have a mandate around E-invoicing. So it's going to impact most of our customers. Obviously, it varies by where they choose to do business where their operations are as the larger economies of the world highlighting France and Germany as two start to adopt that it will impact more of our customers.

是的，當然。好消息是我們與跨國公司合作，這意味著他們在許多國家開展業務。目前已有 50 多個國家正在部署或強制使用電子發票。所以這將影響我們的大多數客戶。顯然，這取決於他們選擇在何處開展業務，因為世界上較大的經濟體（尤其是法國和德國兩個國家）開始採用這種方式，將對我們的更多客戶產生影響。

So in those jurisdictions that are just adopting, it's a green field because the company hasn't had to deal with that for the mandates that are already in place. Take Brazil, which has been around for years. Our customers have been solving that problem at a local level. What's changed in the conversation is customers now want a global solution. So instead of having a provider in Brazil and Argentina, a different provider in Hungary and a third, you know, in Malaysia, they're saying, you know what we want an enterprise provider that can handle all the jurisdictions for doing business.

因此，在那些剛採用該標準的司法管轄區中，這是一個尚未開發的新領域，因為公司無需處理已經存在的強制規定。以巴西為例，它已經存在多年了。我們的客戶一直在本地層級解決這個問題。對話中發生的變化是，客戶現在想要一個全球性的解決方案。因此，他們不再需要在巴西和阿根廷設立供應商，也不需要在匈牙利設立不同的供應商，更不會在馬來西亞設立第三家供應商，而是說，我們想要一家​​能夠處理所有司法管轄區業務的企業供應商。

And what we've decided is not only do we want to bring that to market with our acquisition of a Ecosio but to pair it with our vat compliance solution. So it's a seamless end to end capability set is really the value prop that we see. So while there may be some disruption of a local provider like in Brazil, where we're replacing a Brazil only solution, we're giving the customer much more value in that process. So it's a, it's a pretty straightforward conversation we think for us.

我們決定，不僅要透過收購 Ecosio 將其推向市場，還要將其與我們的增值稅合規解決方案結合。因此，無縫的端到端功能集確實是我們看到的價值主張。因此，雖然像巴西這樣的當地供應商可能會帶來一些幹擾，但我們正在取代僅限巴西的解決方案，我們在此過程中為客戶提供了更多價值。所以，我們認為這是一場非常直接的對話。

Oh, okay, great color. And then John maybe just in the Ecosio , a follow up for you just on the, on the contribution you called out the$ 8 million of ARR and the $16 million of next 12 month revenue is the implication there that you think AR is kind of growth, we should think about it kind of north of 100% or is there a big services component there or there's kind of a volume component that maybe isn't captured in AR just any, any color in that bridge?

哦，好的，顏色很棒。然後約翰可能只是在 Ecosio 中，對您進行跟進，關於您提到的 800 萬美元的 ARR 貢獻和未來 12 個月的 1600 萬美元收入是否意味著您認為 AR 是一種增長，我們應該考慮它在 100% 以上，或者那裡有一個很大的服務組件，或者有一種數量組件可能沒有在 AR 橋上捕獲任何顏色的顏色？

Thanks. Thanks for the question. Yeah, Ecosio does have a services component of their business with the implementation and other activity that goes on with some of the work that they do, not only in E-invoicing but in some of the ed products that they have. So that is a little bit of the disparity between sort of the revenue amount and the the revenue amount and the AR amount. So that's, that's kind of standard and that's been in their business. So nothing unusual there. But no, we expect very good things from miso going forward.

謝謝。謝謝你的提問。是的，Ecosio 的業務中確實有一個服務組成部分，包括實施和進行與他們所做的一些工作相關的其他活動，不僅在電子發票方面，還在他們的一些教育產品方面。所以收入金額與應收帳款金額之間存在一點差異。所以，這是一種標準，而且這也是他們的業務範圍之內。因此這沒什麼不尋常的。但不，我們期待味噌的未來會很好。

Okay, great.

好的，太好了。

Thank you.

謝謝。

Thanks.

謝謝。

The next question comes from Daniel Jester with BMO capital markets. Please go ahead.

下一個問題來自 BMO 資本市場的 Daniel Jester。請繼續。

Great, good morning, everyone. Thanks for taking the question. It was great to hear about the, the new logo.

太好了，大家早安。感謝您回答這個問題。很高興聽到這個新標誌。

When that you highlighted or some of them as. I think about the growth algorithm going forward with sort of the things That you mentioned around E-invoicing and sort of the P super cycle. How should we be thinking about the mix of new logo, growth versus growth in your current customer base?

當您突出顯示其中的一些或將其作為。我考慮的是成長演算法，它將和您提到的電子發票以及 P 超級循環類似。我們應該如何考慮新標誌、成長以及現有客戶群的成長？

Yes, I appreciate the question Dan. So I think on theE- invoicing, obviously, we have the good fortune from 40 plus years of being in business of working with the largest enterprises in the world. They're going to have the largest E- invoicing volume in the world. So job one is to make sure we are making sure we're we're delivering high value to existing customers where we can expand wallet share. And again, that would that would, that's a significant opportunity for us.

是的，我很感謝丹提出的問題。因此我認為，在電子發票方面，我們顯然很幸運，因為我們有 40 多年的與世界上最大的企業合作的經驗。他們將擁有世界上最大的電子發票量。因此，首要任務是確保我們為現有客戶提供高價值，從而擴大錢包份額。再說一次，這對我們來說是一個重要的機會。

So from the E-invoicing side, that that is clearly one of our priorities. It will no doubt and we already have seen it help us land some new logo, but it's important to us. We serve our customers with that capability. The super cycle that you, that you highlight is certainly a bigger opportunity to expand logos as well as some of the expansion we're doing with Microsoft and Shopify and Workday. We're already seeing some nice new logo wins in that space. So that's how I would kind of look at it from that perspective.

因此從電子發票方面來看，這顯然是我們的優先事項之一。毫無疑問它會幫助我們獲得一些新的標誌，而且我們已經看到它了，但這對我們很重要。我們利用這種能力為客戶服務。您所強調的超級週期無疑是擴大品牌影響力的更大機會，同時也是我們與微軟、Shopify 和 Workday 合作進行的一些擴張的機會。我們已經看到該領域的一些不錯的新標誌獲勝。這就是我從這個角度看待這個問題的方式。

Great. Thank you. And then John maybe to you impressive margin expansion over the.

偉大的。謝謝。然後約翰可能會給你帶來令人印象深刻的利潤擴張。

Last couple quarters. As we think about 2025 I know you're probably not going to give us guidance today but any sort of sort of comments you would make about the trajectory of the margin profile of the business as we go into next year. Thank you.

最近幾季。當我們考慮 2025 年時，我知道您今天可能不會給我們指導，但您可以對明年業務利潤率走勢做出任何評論。謝謝。

Yeah, thanks for the question, Dan, listen, we feel good about the expansion we've seen since we kind of ended or kind of came to the end of the big, you know, the big growth activity that we went on from the IPO and that ended about mid last year. We have seen real nice margin expansion and we feel very good about it. I think we did make some investments here in the third quarter that we called out at the second quarter and we plan to make some additional investments in the fourth quarter as we wrap it up.

是的，感謝你提問，丹，聽著，自從我們結束或說結束了從 IPO 開始的大規模增長活動並在去年年中結束以來，我們對所看到的擴張感到很滿意。我們看到了真正良好的利潤率擴大，我們對此感覺非常好。我認為我們確實在第三季度進行了一些在第二季度宣布的投資，並且我們計劃在第四季度結束時進行一些額外的投資。

And I think about next year, you're right, Dan, not planning to give out guidance here. The one thing that I will call out though is we feel good about sort of what we've seen and the growth that we've seen in margin. But the acquisition of a Ecosio does bring a little bit of a, a little bit of a pullback from a, from a, you know, from an adjusted EBITA standpoint. I detailed that in my call. So that's the only thing that I would call out there that I would think about that would be any different than kind of, you know, that's out of the ordinary from our normal operating business. But thanks for the question.

我認為明年，你是對的，丹，不打算在這裡給予指導。不過，我要說的一件事是，我們對所看到的情況以及利潤率的成長感到滿意。但從調整後的 EBITA 角度來看，收購 Ecosio 確實會帶來一些回檔。我在通話中詳細說明了這一點。所以，這是我唯一要說的、我認為會有所不同的事情，你知道，這與我們的正常營運業務不同。但感謝您的提問。

Great, Thank You very much.

太好了，非常感謝。

The next question comes from Samad Samana with Jeffries. Please go ahead.

下一個問題來自 Jeffries 的 Samad Samana。請繼續。

Hey, good morning. Thanks. Thank you for taking my questions. So, you know, Dave and John, you guys are absolutely experts have done this for a long time. We've had a big election cycle year globally, not just in the US, obviously capped it last night here.

嘿，早安。謝謝。感謝您回答我的問題。所以，你們知道，戴夫和約翰，你們絕對是專家，並且已經做這件事很久了。今年是全球重要的選舉年，不僅是在美國，顯然昨晚的選舉也達到了高峰。

I'm just curious if you could remind us what you've seen in past post election cycles, whatever regulatory change comes, I'm sure there's always change. But how quickly that reverberates and maybe what impact that's had on your business historically and how that's changed. Maybe decision making time lines. Does it tend to create any type of air pocket? Does it accelerate decision making? Just remind us what you've experienced in past cycles?

我只是好奇，您是否可以提醒我們在過去選舉後週期中看到的情況，無論發生什麼監管變化，我相信總是會有變化。但其反響有多快，以及從歷史上看這對您的業務有何影響以及發生了怎樣的變化。也許是決策時間軸。它會產生任何類型的氣穴嗎？它能加速決策嗎？請提醒我們您在過去的周期中經歷過什麼？

Yes, I appreciate that question. And certainly it is timely given this morning's news. Obviously a federal election in the United States is not as impactful to Vertex Inc it may affect the macro economy, but it doesn't affect the tax legislation that we have to deal with. We have 10,000 state and local jurisdictions that are really driving the market opportunity that we have in the US. So we don't see a huge tax, wind or diversion if you would. It's more what's happening at the state and local level as we all know, the states are running, you know, struggling for revenue in an uneven economy and indirect tax is the primary source of revenue of corporate revenue for them.

是的，我很感謝這個問題。從今天早上的新聞來看，這無疑是及時的。顯然，美國聯邦選舉對Vertex Inc的影響並不大，它可能會影響宏觀經濟，但不會影響我們必須處理的稅收立法。我們有 10,000 個州和地方管轄區正在真正推動我們在美國所擁有的市場機會。因此，如果你願意的話，我們不會看到巨額的稅收、風能或轉移。眾所周知，這更多的是發生在州和地方層級的情況，各州在經濟不平衡的情況下苦苦掙扎以爭取收入，而間接稅是他們企業收入的主要來源。

So where we, what we see in terms of the urgency in response on that side, the beauty is our content database is so, but when rule and regulatory changes. It's usually about our tax research team which has proven adept to quickly modify some of the rules and content in our tax research database to adapt to those new rules. So it's not really a technology change that we have to react to. It's a content change. And our team has proven and certainly now leveraging more advanced technologies like we are increasingly adept at processing with speed and urgency.

因此，我們看到，在這方面反應的緊迫性，美妙之處在於我們的內容資料庫是如此，但是當規則和監管發生變化時。這通常與我們的稅務研究團隊有關，該團隊已證明能夠快速修改我們的稅務研究資料庫中的一些規則和內容以適應這些新規則。因此，這實際上不是一個我們需要做出反應的技術變化。這是內容的改變。我們的團隊已經證明並且現在確實正在利用更先進的技術，例如我們越來越擅長快速且緊急地處理。

So I feel very well positioned here. And then I think, I think again, I think globally as we look at elections and as they've shifted, it's still fundamentally around the global debt challenges that many jurisdictions are facing and how they're turning to VAT and now E-invoicing as the primary sources of opportunity to close some of those, those financial gaps. And so that all is a tailwind of opportunity for us.

因此我覺得自己在這裡處於非常有利的位置。然後我認為，我再想想，我認為從全球來看，當我們審視選舉及其變化時，它仍然從根本上圍繞著許多司法管轄區所面臨的全球債務挑戰，以及他們如何轉向增值稅和現在的電子發票作為彌補部分資金缺口的主要機會來源。所以這一切對我們來說都是機會的順風。

Great and then John maybe on, on it because you, I know you've gotten several questions on it already. But just when you think about that, what you're assuming for 2025 is the base case, can you maybe help us understand how much of that is assuming revenue synergies in the 1st year? Is that largely assuming that E Ecosio runs at its current run rate and that you'll get more synergies or acceleration in year two, maybe just help us understand the progression of ecozone. And what you're assuming in that in, in that initial guidance.

太好了，然後約翰也許可以繼續討論這個問題，因為我知道你已經問了幾個問題了。但是當您考慮到這一點時，您對 2025 年的假設是基本情況，您能否幫助我們了解其中有多少是假設第一年的收入協同效應？這主要是假設 E Ecosio 以其當前的運行速度運行，並且您將在第二年獲得更多的協同效應或加速，也許只是幫助我們了解生態區的進展。以及您在初步指導中所做的假設。

Yeah, in the initial guidance that assumes that Ecosio is running at its normal, its normal pace with what it has, it assumes very little synergy activity going on from the work that we'll be doing with them together. So we'll see how that plays out. But again, they have some real nice growth aspirations there in their business and we're excited about that.

是的，在初步指導中，我們假設 Ecosio 以正常速度運行，並假設我們與他們共同開展的工作幾乎不會產生協同作用。我們將看看結果如何。但再說一次，他們對業務有著真正美好的成長願望，我們對此感到興奮。

But that's, that's how we think about it. Again, we think the opportunity as David more fully described really is out there and it really plays out, you know, late in the next year and the following years with the mandates coming and companies really looking for that end to end solution that we can offer.

但這就是我們的想法。再次，我們認為，正如大衛更全面地描述的那樣，機會確實存在，而且它將在明年年末和接下來的幾年裡真正發揮作用，隨著授權的出台，公司將真正尋求我們可以提供的端到端解決方案。

Great, appreciate it. Thanks guys.

非常好，很感謝。謝謝大家。

Thanks so much.

非常感謝。

The next question comes from Jake Roberge with William Blair. Please go ahead.

下一個問題來自 William Blair 的 Jake Roberge。請繼續。

Yeah, thanks for taking the questions and congrats on the great quarter. Yeah, just wanted to follow up on the Ecosio deal as well. I know there are a few geographies that a Ecosio doesn't cover from an E-invoicing perspective today. So just kind of moving forward, be curious how you're thinking of the building versus buying in that space to kind of get the fully covered solution.

是的，感謝您回答這些問題，並祝賀本季取得如此出色的成績。是的，我也想跟進一下 Ecosio 的交易。我知道從目前的電子發票角度來看，Ecosio 尚未覆蓋一些地區。因此，繼續前進，您會好奇您如何考慮建造建築物而不是在那個空間購買以獲得完全覆蓋的解決方案。

Yeah, Jake, I appreciate that question. That's really what part of the investment that John was referring to that we're going to be putting into the business over the next couple of years is really about making sure we build out the content for coverage member that's content, regulatory content is our core business, leveraging technology to deliver it.

是的，傑克，我很感謝這個問題。這實際上就是約翰提到的我們在未來幾年將要投入到業務中的投資部分，實際上是為了確保我們為覆蓋成員建立內容，而監管內容是我們的核心業務，並利用技術來提供這些內容。

But it's what we do really well and we've been doing for years. And so we see the GAAP there and we understand the GAAP there that exists between what they currently cover and where we need to cover and our focus will be on making sure they have the investment, they need to get the country's coverage in areas where they don't currently have it. But that's a content issue. It's not really something that we need to go by. So I don't see another necessarily an acquisition to achieve that as much as it's just applying our expertise in content development and the great eco team together to deliver on those extra countries.

但這是我們真正擅長的事情，而且我們已經做了很多年。因此，我們看到了那裡的 GAAP，我們了解那裡的 GAAP 存在於他們目前覆蓋的範圍和我們需要覆蓋的範圍之間，我們的重點是確保他們有投資，他們需要在目前沒有覆蓋的地區獲得國家的覆蓋。但這是一個內容問題。這其實並不是我們需要遵循的事情。因此，我認為不一定需要透過其他收購來實現這一目標，我們只需運用我們在內容開發方面的專業知識和優秀的生態團隊共同努力，即可在這些額外的國家實現目標。

Okay, very helpful and then great to hear that you're starting to see some good momentum behind the S A opportunity. Is there any sense of how much sap migrations are actually impacting the model today? From the new logos you're landing like is that that already having a meaningful impact on new logo growth or new logos still largely being driven by kind of how historically landed the new logos just trying to see if we're starting to see that migration ramp up more.

好的，非常有幫助，很高興聽到您開始看到 S A 機會背後的一些良好勢頭。是否有任何跡象表明 SAP 遷移實際上對當今模型產生了多大影響？從您所看到的新標誌來看，這已經對新標誌的成長產生了有意義的影響，或者新標誌仍然在很大程度上受到歷史上新標誌的產生方式的驅動，只是想看看我們是否開始看到遷移進一步增加。

It's a really fair question and I wish I had a good, I really appreciate the question and I wish I had a simple rubric to give you it So we've kind of proven that out. Obviously, this, the announced migration started only a year ago. It's June of 2023 in terms of the end-of-life announcement. So, I think we're still in the earlier days of it to give you a good quantifiable. We're certainly seeing uplift in momentum. I don't, it's hard for me to reconcile that right now because I just don't know if I can give you enough data that I, that I could stand behind. I'd like to make sure we've got enough data to support that. But we, you know, the pipeline is certainly being influenced by it. But the regulatory environment has been very dynamic of late record changes in 2024 and sales tax rates and that has created demand opportunity for us as well. So that's why I'm I'm just being a little cautious in my answer there, but there's no doubt it's playing out to our favor.

這是一個非常公平的問題，我希望我能提出一個很好的問題，我真的很欣賞這個問題，我希望我能有一個簡單的評分標準給你，這樣我們就證明了這一點。顯然，這項宣布的遷移僅在一年前就開始了。就壽命終止公告而言，是 2023 年 6 月。所以，我認為我們還處於早期階段，無法提供您一個很好的量化數據。我們確實看到了勢頭的提升。我不知道，現在我很難接受這一點，因為我不知道我是否可以給你足夠的數據來證明這一點。我想確保我們有足夠的數據來支持這一點。但你知道，我們的管道肯定受到了它的影響。但最近監管環境非常動態，2024 年的記錄變化和銷售稅率也為我們創造了需求機會。所以這就是為什麼我在回答時要稍微謹慎一些，但毫無疑問這對我們有利。

Yeah, makes a lot of sense. Well, thanks for taking the questions and congrats on the results.

是的，很有道理。好吧，感謝您回答問題，並對所取得的成績表示祝賀。

Yeah, great. Thank you. We're real pleased.

是的，很棒。謝謝。我們真的很高興。

The next question comes from Rob Oliver with baird. Please go ahead.

下一個問題來自貝爾德的羅布·奧利弗 (Rob Oliver)。請繼續。

Great, good morning, Dave. I know you called out that semiconductor capital equipment deal as mid six figures and you noted you were hesitant to extrapolate out that that would be, you know, sort of the, the forward leading indicator on all deals. However, the fact that you called it out I'm just curious, you know, what you saw in that deal that drove such an appreciably higher contract value than is your norm and how you may either, you know, drive the sales efforts or take the from that sort of deal to, to hopefully repeat that in other kind of riven migrations.

太好了，早上好，戴夫。我知道您提到半導體資本設備交易的價格為六位數中段，並且您指出，您不願意推斷這將是所有交易的前瞻性領先指標。然而，事實上你提到了這一點，我只是很好奇，你知道，你在這筆交易中看到了什麼，使得合約價值比你的正常水平高出這麼多，以及你如何推動銷售工作或從這種交易中獲益，希望在其他類型的遷移中重複這一點。

Yeah, I appreciate that question. And it is a nuanced point that you're, you're hitting on. So obviously, when a customer is using us member, typically we're in a customer, they're using us for a portion of their business depending upon how long we've been working with. Maybe, you know, 1,020 years, we might have been covering all their business. But when they're making this migration, typically they just want to replace and solve the problem, they've been solving the good news is when they make these migrations, it's all about the tax content and they trust our tax content on the current platform. So making the move, it's a pretty logical one.

是的，我很感謝這個問題。這是您正在探討的一個細微觀點。因此很明顯，當客戶使用我們的會員時，通常我們是客戶，他們會將我們用於部分業務，這取決於與我們合作的時間長短。也許，1,020 年來，我們可能已經涵蓋了他們的所有業務。但是當他們進行這種遷移時，通常他們只是想替換並解決問題，他們一直在解決的好消息是，當他們進行這些遷移時，一切都與稅收內容有關，他們信任我們當前平台上的稅收內容。因此採取這項措施是非常合乎邏輯的。

They're going to stay with us and just , you know, go to the new platform with us. So that works really well for our, what happened in that situation was the customer said, you know what, as long as we're doing this, let's rethink some of the other areas where we don't use Vertex Inc and let's broaden the relationship. And so I think the team with our building out of our customer success function and some of the proven delivery of our other products that we've created since we first sold them, created an opportunity to tell a much broader value prop to them.

他們會繼續和我們在一起，和我們一起進入新的平台。所以這對我們來說真的很有效，在那種情況下發生的事情是客戶說，你知道嗎，只要我們這樣做，讓我們重新考慮一些我們不使用 Vertex Inc 的其他領域，讓我們擴大關係。因此，我認為，我們的團隊透過建立客戶成功功能以及自首次銷售以來創建的一些經過驗證的其他產品，創造了一個向他們傳達更廣泛的價值主張的機會。

And that is absolutely something we're going to leverage as you use the word learning to, to try to go into other accounts. I just don't think I have enough data to highlight that we're, you're going to see that kind of an uplift on all of our, our existing ECC customers. And that's why I just want to caveat it. But yeah, it was an exciting thing and there's a lot of learning that we took from that, that, you know, that gives us encouragement as the team goes forward.

當您使用學習這個詞時，我們絕對會利用這一點，嘗試進入其他帳戶。我只是認為我沒有足夠的數據來強調我們，你會看到我們所有現有的 ECC 客戶都出現了這種提升。這就是為什麼我只是想提出警告。但確實，這是一件令人興奮的事情，我們從中學到了很多東西，這給了我們鼓勵，讓我們團隊繼續前進。

Okay. That's very helpful. Thank you. And then John just a quick one for you. I think by our math, the lower a direct customer would have been up organically if not for the deal, but just wanted to make sure we weren't missing anything there. And then just a quick follow up to that, just anything to call out relative to the Peguero deal. Unwind and any impact that might have on the model. Thank you.

好的。這非常有幫助。謝謝。然後約翰，我跟你講一個簡單的問題。我認為，根據我們的計算，如果沒有這筆交易，直接客戶的收入自然會較低，但我們只是想確保我們不會遺漏任何東西。然後只是快速跟進一下，只是任何與 Peguero 交易有關的事情。放鬆並消除可能對模型產生的任何影響。謝謝。

Yeah, nothing to call out on the Peguero unwind. That sort of all flushed itself through us back in the second quarter, first or second quarter. So I don't think anything there and really from an AAR PC standpoint again, as you think about some of the new customers and some of the new ads we've put in with both SYSTAX and with a Ecosio . Typically, they're coming on at a little bit of a smaller revenue size than our traditional customer. And so that does have a little bit of an impact in bringing that down a touch. But good call out Rob. Thank you for the question.

是的，沒有什麼可以對 Peguero 的放鬆做出回應。這一切都在第二節，或是在第一節或第二節的時候在我們心中湧現。因此，我認為那裡沒有什麼，而且從 AAR PC 的角度來看，當您想到一些新客戶以及我們在 SYSTAX 和 Ecosio 上投放的一些新廣告時。通常來說，他們的收入比我們的傳統客戶少一點。因此，這確實會對降低這一數字產生一點影響。但羅布說得好。感謝您的提問。

All very helpful. Thanks guys. Appreciate It.

一切都非常有幫助。謝謝大家。非常感謝。

The next question comes from Adam Hodgkiss with Goldman Sachs. Please go ahead.

下一個問題來自高盛的亞當·霍奇基斯。請繼續。

Great. Thanks so much for taking the questions, David. I guess just to take a step back. I know you talked a lot about tax complexity and breakage of more manual systems as a driver of businesses to vended tax solutions. I'm just curious, you know, we talk a lot about E-invoicing and the p upgrade cycle. But could you just maybe flush out any other notable accelerative tax complexity catalyst that you're watching or is it really just about the steady drumbeat of tax complexity increases we've talked about for a number of years.

偉大的。非常感謝您回答這些問題，大衛。我想只是退一步而已。我知道您談了很多關於稅收複雜性以及更多手動系統的崩潰作為企業採用自動售稅解決方案的驅動力。我只是很好奇，你知道，我們討論了很多關於電子發票和 p 升級週期的問題。但是，您能否指出您正在關注的任何其他值得注意的加速稅收複雜性的催化劑，或者這實際上只是我們多年來一直在談論的稅收複雜性不斷增加的穩定跡象。

Yeah, I mean, it really is the latter. It's just this again, it's the primary source of corporate revenue for, for governments and these governments are struggling for where they're going to get revenue to make their budget. So it's not politically savvy using given the election process to raise rates, let's just say from 8 to 9 or, or you know, whatever a state needs to do to increase its revenues. So they, they come up with more rules like bag fees and delivery fees in Minnesota and Colorado and other states that are creating real jurisdictional execution pressure for a business that says, wait a minute, this is just too complex for us to keep up with this pace and that drives the change, the follow the follow up.

是的，我的意思是，確實是後者。再次說明一下，它是政府的主要企業收入來源，而這些政府正在苦苦掙扎如何獲得收入來制定預算。因此，考慮到選舉過程，提高稅率（例如從 8 提高到 9），或者無論一個州需要做什麼來增加其收入，這在政治上都是不明智的。因此，他們制定了更多的規則，例如明尼蘇達州、科羅拉多州和其他州的袋子費和送貨費，這些規則給企業帶來了真正的司法執行壓力，企業說，等一下，這太複雜了，我們無法跟上這個步伐，這就推動了變革，隨之而來的是後續行動。

That is the audit pressure that then that is also happening as these regulatory changes are, you know, companies are finding out they thought they were as accurate as they, as they needed to be and they weren't and that will then trigger ACO or something saying, hey, wait a minute, you know, the reserves we're setting up for, for settlements is unacceptable. We're tying up working capital. Let's go, let's get a vended solution that we have confidence in. And so that's, that's really been the thing that there's no unique jurisdiction we're watching. I think the big regulatory trend you hit on is the E-invoicing. That's a, that's a new dynamic completely.

這就是審計壓力，隨著這些監管變化而發生的，你知道，公司發現他們認為他們的數據已經達到了他們需要的準確度，但事實並非如此，這將觸發 ACO 或類似的東西，說，嘿，等一下，你知道，我們為結算設立的準備金是不可接受的。我們正在佔用營運資金。開始吧，讓我們得到一個我們有信心的銷售解決方案。所以，事實上，我們所關注的並沒有獨特的管轄權。我認為您提到的重大監管趨勢是電子發票。這是一個全新的動態。

Okay. Great. That's really helpful. And then could you just give us a deeper sense of how how much what you offer in E- invoicing is actually impacting traditional indirect tax rfps that you're in. You know, we've seen across the space, this focus on unified software platforms. So I'm just wondering, you know, whether your rps are impacted, if, if a company is going after an indirect tax solution, you know, how much are they asking? And and really diligence in what you have in the E-invoicing space versus those two things being separate.

好的。偉大的。這真的很有幫助。然後您能否更深入地介紹一下您在電子發票方面提供的服務實際上對您所參與的傳統間接稅 rfp 有多大影響。你知道，我們已經看到整個領域都專注於統一軟體平台。所以我只是想知道，如果一家公司正在尋求間接稅解決方案，您的 rps 是否會受到影響，他們要價多少？並且真正勤勉於電子發票領域所擁有的一切，而不是將這兩件事分開。

Yeah. You know, it's, it's changing now that we're bringing our value prop into the market. I think it's creating a, it's really interesting when I was in Germany, I highlighted the 40 plus customers and partners we met with in that in that session and it was really interesting customers were starting to make connections across the entire platform of seeing the value of an upstream determination engine in vat and how that supports the accuracy that you'll have on your invoice to then do your E_invoicing that you have to, that you're required to do now and then have it all flow across that single solution into your back compliance.

是的。你知道，隨著我們把價值主張帶入市場，情況正在改變。我認為它正在創造一個，這真的很有趣，當我在德國時，我重點介紹了我們在那次會議上遇到的 40 多個客戶和合作夥伴，非常有趣的是，客戶開始在整個平台上建立聯繫，看到增值稅上游確定引擎的價值，以及它如何支持您在發票上的準確性，然後進行您必須的電子發票，您現在需要做的，然後讓所有這些都通過後合規性的。

And that value prop was really resonating wonderfully with a number of customers and prospects we were talking about. But I think it's a new phenomenon because the regulatory environment in E-invoicing is accelerating. And so companies are starting to wake up to, hey, this is a different world and as the bigger economies are adopting it, it's becoming even more dynamic for them. And I think that's, that's why we've timed this very, I believe and I'm optimistic we need to execute, but we've timed it very well.

這項價值主張確實與我們所談論的許多客戶和潛在客戶產生了強烈的共鳴。但我認為這是一種新現象，因為電子發票的監管環境正在加速發展。因此，企業開始意識到，這是一個不同的世界，隨著更大的經濟體正在接受它，它對他們來說變得更加充滿活力。我認為這就是我們選擇這個時機的原因，我相信並且我樂觀地認為我們需要執行，但我們的時間安排得很好。

Thanks so much, really helpful David.

非常感謝，David，真的很有幫助。

The next question comes from Brad Reback with Stifel Nicolaus and Company. Please go ahead.

下一個問題來自 Stifel Nicolaus and Company 的 Brad Reback。請繼續。

Great. Thanks very much John. If I'm doing my math right. It seems like I'll call it core sustainable repeatable Vertex Inc grew about 18% on a subscription basis, which is a nice uptick sequentially.

偉大的。非常感謝約翰。如果我做的數學正確的話。看起來我會稱之為核心、可持續、可重複的 Vertex Inc 在訂閱基礎上增長了約 18%，這是一個連續的良好增長。

Should we think about this? Is the new go forward or continued variability around that level?

我們應該思考這個問題嗎？是新的進步還是繼續圍繞著這一水平變動？

Yes. Brad. Good question. You know, I wouldn't say we're ready to start kind of putting that as sort of the bar of things to advance from here. But I think we have seen good performance as of late. We've seen some nice, nice opportunity that's out there. Again. I think you said poor operating because you probably excluded some of the some of the true up activity that we saw in this quarter. And I think that's the fair thing to do. What I would say is, again, you've seen our guidance for the fourth quarter. Again, we did have a real strong fourth quarter last year.

是的。布拉德。好問題。你知道，我不會說我們已經準備好將其作為事情從現在開始前進的門檻。但我認為最近我們看到了良好的表現。我們看到了那裡存在的一些非常好的機會。再次。我認為您說營運不佳是因為您可能排除了我們在本季看到的一些真實活動。我認為這是很公平的做法。我想說的是，您再次看到了我們對第四季度的指導。去年我們第四季的表現確實非常強勁。

So, it's a little bit of a tougher comp there. But, you know, we feel good about sort of the momentum that we've seen in the business and how we've been able to grow and that AR growth that you've seen in the business being very solidly and consistently in there around that 116. Certainly, this past quarter, we feel good about that. I wouldn't say I'm ready to start raising the bar up to that high, the very high 10s that you're talking about.

因此，這裡的競爭有點激烈。但是，您知道，我們對業務中看到的勢頭以及我們如何能夠成長感到滿意，而且您所看到的業務中的 AR 成長非常穩固且持續地保持在 116 左右。當然，過去一個季度，我們對此感覺很好。我不會說我已經準備好將標準提高到那麼高，也就是您所說的 10 多分。

That's great. And then David circling back to an earlier question around sort of the growth algorithm and customer account. If I also do the kind of core Vertex Inc over the last couple of quarters, taking out a Ecosio and SYSTAXx, I get a fairly flat number and I understand there's a transition going on in the base. Do you think that we see in the coming quarters or years of meaningful acceleration there? Or should we think about really AR PC being the predominant driver of subscription as that transition happens in that install?

那太棒了。然後大衛又回到之前關於成長演算法和客戶帳戶的問題。如果我在過去幾個季度中也研究核心 Vertex Inc，取出 Ecosio 和 SYSTAXx，我會得到一個相當平穩的數字，而且我明白基礎正在轉變。您認為未來幾季或幾年我們會看到顯著的加速嗎？或者我們是否應該認為，隨著這種轉變發生在安裝中，AR PC 才是訂閱的主要驅動力？

Thanks.

謝謝。

Brad. Scaled customer growth is the number one priority for us just being really direct on that. That's where we focus because those are the customers that pay the bills today and they will buy more from us in the future. There is still some noise at the very bottom end of our market, that legacy cloud strategy that we talked about that's long since been, you know, set aside.

布拉德。擴大客戶成長是我們的首要任務，這一點我們非常重視。這就是我們關注的重點，因為這些是今天付帳的客戶，他們將來會向我們購買更多產品。在我們市場的最底端仍然存在一些噪音，我們所談論的傳統雲端策略早已被擱置一旁。

I am excited about the opportunities we're growing in Microsoft Netsuite Workday sales force and now E- invoicing to bring us into new logos. I don't think we're giving guidance on any of that just yet, but there's no doubt that's part of the strategy is to focus and broaden our tentacles into the right ecosystems that we can also expand new logos as well as continuing to drive scaled customer growth. That remains the priority though.

我很高興我們在 Microsoft Netsuite Workday 銷售團隊中不斷成長，而現在電子發票將為我們帶來新的標誌。我認為我們還沒有就這些方面給出指導，但毫無疑問，這是我們策略的一部分，我們將集中精力並將觸角伸向正確的生態系統，我們也可以擴展新的標識，並繼續推動規模化客戶成長。但這仍然是首要任務。

And I'm sorry if I missed it. What was the scaled customer growth in the quarter?

如果我錯過了，我很抱歉。本季的客戶規模成長是多少？

13%?

13%？

Perfect. Thank you.

完美的。謝謝。

Thanks. Brad.

謝謝。布拉德。

The next question comes from Brad Stills with Bank of America. Please go ahead.

下一個問題來自美國銀行的布拉德·史蒂爾斯。請繼續。

Hey, this is Natalie, how I'm for Brad. So, I wanted to talk a little bit about your cross-selling deals. You mentioned some pretty big wins there. And I, if I remember correctly, back in two Q, you mentioned, you anticipate seeing that activity pick up in the second half of the year. I guess I wanted to see how that was tracking with your expectations. And if you see any sort of change in that rate for the rest of the year.

嘿，我是娜塔莉，我是布萊德的粉絲。所以，我想稍微談談你們的交叉銷售交易。您提到了一些相當大的勝利。如果我沒記錯的話，在兩個季度中，您提到，預計今年下半年活動將會回暖。我想看看這是否符合你的期望。如果您發現今年剩餘時間內該比率有任何變化。

Natalie, you appreciate the question. Yes, it did track consistent with what we thought we had good visibility activity that was coming not unusual in our space, the enterprise space that the tax departments get budget, that's more available to them in the second half of the year.

娜塔莉，你很欣賞這個問題。是的，它確實與我們認為的良好可見性活動一致，這在我們的領域、稅務部門獲得預算的企業領域並不罕見，這在下半年對他們來說更容易獲得。

So it was a little slower. We called that out, you know, H1stly in the first half of the year, but had good visibility to that budget spend that was going to accelerate. And I think it's been baked into our guidance that we see that continuing solidly, you know, here in Q4.

所以速度比較慢。我們在今年上半年就指出了這一點，但我們很清楚地看到預算支出將會加速。我認為這已經融入我們的預期中，我們看到這一趨勢將在第四季度繼續穩步發展。

Okay. Got it. That's all for me. Thank you.

好的。知道了。對我來說這就是全部了。謝謝。

Thank you, Natalie.

謝謝你，娜塔莉。

The next question comes from Patrick Walravens with citizens JMP Securities. Please go ahead.

下一個問題來自公民 JMP Securities 的 Patrick Walravens。請繼續。

Oh, great. Thank you and let me add my congratulations. So David, I have two questions around Esio.

噢，太好了。謝謝您，請允許我向您表示祝賀。大衛，我對 Esio 有兩個問題。

So number one is how does and I think you did touch on this briefly but a little deeper how does having a solution for European E-invoicing drive demand for your core tax engine in Europe?

所以第一個問題是，我想您確實簡要地提到了這一點，但更深入一點地說，歐洲電子發票解決方案如何推動歐洲對核心稅務引擎的需求？

And then the second one is, can you touch a little bit on the data opportunity that because he opens up for Vertex Inc around continuous transaction processing?

然後第二個問題是，您能否稍微談談他在持續交易處理方面為 Vertex Inc 開闢的數據機會？

Sure. Thank you Pat for the question and the comment on the quarter. So yeah, so what E- invoicing is you're sending out invoice data, which is kind of like if you think about it, this almost makes it like a mini tax return. You're sending the government tax information at the point of the transaction. Normally, you didn't do that to, you didn't send them any tax information until the end of the quarter or the end of the month depending upon the filing process.

當然。感謝 Pat 提出的問題以及對本季的評論。是的，電子發票就是您發送發票數據，如果您仔細想想，這幾乎就像一份迷你報稅表。您在交易時發送政府稅務資訊。通常情況下，您不會這樣做，您直到季度末或月底才向他們發送任何稅務信息，具體取決於申報流程。

And so now the customers are starting to realize, I want to have more confidence in the accuracy of what I put on that invoice as the taxability that I'm going to owe because the governments are going to see it sooner than I'm than I'm used to. So because that comes from master data, which is controlled upstream in the business where the tax department doesn't have as much influence. The determination engine gives them a way to have more confidence in that taxability because they're leveraging then our content and our tax assessment on the invoice itself.

所以現在客戶開始意識到，我希望對我在發票上所寫的應納稅款的準確性更有信心，因為政府會比我習慣的更快看到它。因為它來自主數據，而主數據在業務的上游受到控制，稅務部門對業務的影響力不大。確定引擎使他們對納稅更有信心，因為他們可以利用我們的內容和發票本身的稅務評估。

And that's where I think we're seeing some interesting value prop conversations coming from number one, number two, relative to the data question, I think it's, you know, we're just going to be touching that much more data. And one of the things we've been focused on our cloud platform is expanding our data layer to support the end-to-end process.

我認為，這就是我們看到一些有趣的價值主張對話的地方，這些對話來自第一點和第二點，相對於數據問題，我認為，你知道，我們將會接觸更多的數據。我們在雲端平台上關注的重點之一是擴展我們的資料層以支援端到端流程。

What we have learned is that if tax departments have accuracy and transparency to their data throughout end-to-end workflow, it's the best place for them to ensure the accuracy and compliance that they need. And that's what really excites me about. What we're doing in the E- invoicing is just going to fuel the quality of that data transparency to give us a new value prop to talk about to our customers.

我們的經驗是，如果稅務部門在整個端到端工作流程中對其數據保持準確性和透明度，那麼這裡就是他們確保所需準確性和合規性的最佳場所。這才是真正讓我興奮的事。我們在電子發票方面所做的一切都是為了提高數據透明度的質量，為我們提供一個可以與客戶討論的新價值主張。

Great. Thank you.

偉大的。謝謝。

Yes, This concludes our question and answer session. I would like to turn the conference back over to Joe Carvelli for any closing remarks.

是的，我們的問答環節到此結束。我想將會議交還給喬·卡維利 (Joe Carvelli) 來做結束語。

Thank you everyone for joining us today.

感謝大家今天的參加。

As always, if you have followed up questions or would like to schedule additional time with the team, please reach out to me at investors at https://www.vertexinc.com/ Have a great rest of your day.

像往常一樣，如果您有後續問題或希望與團隊安排更多時間，請透過 https://www.vertexinc.com/ 與我聯繫，祝您今天過得愉快。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。