Vertex, Inc. (NASDAQ:VERX) Q2 2023 Earnings Conference Call August 9, 2023 8:30 AM ET

Company Participants

Joe Crivelli - Vice President, Investor Relations

David DeStefano - President & Chief Executive Officer

John Schwab - Chief Financial Officer

Conference Call Participants

Joshua Rilley - Needham & Company

Chris Quintero - Morgan Stanley

Adam Hotchkiss - Goldman Sachs

Daniel Jester - BMO Capital Markets

Matt Stotler - William Blair

Andrew DeGasperi - Berenberg

Alex Sklar - Raymond James

Steve Enders - Citi

Patrick Walravens - JMP Securities

Brad Reback - Stifel

Operator

Greetings. Welcome to Vertex's Second Quarter 2023 Earnings Conference Call. Please note this conference is being recorded. At this time, all participants are in listen-only mode.

At this time I'll now turn the conference over to Joe Crivelli, Vice President of Investor Relations. Mr. Crivelli you may now begin.

Joe Crivelli

Hello, and thanks for joining us to discuss Vertex's second quarter financial results. I'm Joe Crivelli, Vice President, Investor Relations. David DeStefano, Vertex's President and CEO; and John Schwab our CFO, are joining me on the call today. As a reminder, during this call, we may make forward-looking statements about expected future results. Our 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.

Please note that our remarks today will also include references to non-GAAP financial measures. A reconciliation of these non-GAAP metrics to GAAP is also provided in today's press release. This conference call is being recorded and will be available for replay via webcast on our Investor Relations website.

I'll now turn the call over to David.

David DeStefano

Thanks, Joe. Welcome everyone and thank you for joining us. Our team continues to execute our strategy with excellence resulting in strong second quarter financial results and furthering our competitive differentiation. I'm very excited about where we are as a company. We've made growth investments over the past three years to accelerate go-to-market success, deliver new products and advance our capabilities through acquisitions and organizational modernization. We're seeing a return from these investments starting to take hold.

The second quarter demonstrated our anticipated steady progression of increased revenue growth and margin improvement. We added $21 million of recurring revenue in the second quarter alone the highest we've reported as a public company, driving a 17.5% increase year-over-year in ARR. GRR remained consistent at 96%, while NRR climbed to 111%, which represents another record high for Vertex.