Vertex, Inc. (NASDAQ:VERX) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET

Company Participants

Joe Crivelli - Vice President, Investor Relations

David DeStefano - President and Chief Executive Officer

John Schwab - Chief Financial Officer

Conference Call Participants

Matt Stotler - William Blair

Adam Hotchkiss - Goldman Sachs

Joshua Rilley - Needham

Daniel Jester - BMO Capital Markets

Steve Enders - Citi

Andrew DeGasperi - Berenberg

Brad Sills - Bank of America

Operator

Greetings. Welcome to Vertex's First Quarter 2023 Earnings Conference Call. Please note, this conference is being recorded. At this time, all participants are in listen-only mode. [Operator Instructions] 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 financial results for the first quarter ended March 31, 2023. I'm Joe Crivelli, Vice President, Investor Relations. David DeStefano, Vertex's President and CEO; and John Schwab our CFO, are also on the call today. As a reminder, during this call, we may make forward-looking statements related to expected future results. Our actual results may differ materially from our projections, due to risks and uncertainties.

These risks and uncertainties are described in our filings with the Securities and Exchange Commission. Today's remarks will also include references to non-GAAP financial measures. Additional information, including reconciliation between non-GAAP financial information to the GAAP financial information is provided in the 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. 2023 is off to an exciting start. Through the focused efforts of our global team, we delivered great execution across all areas of the business. In the first quarter, we saw widespread contribution of our revenue growth balanced across new logos and cross-sells, as well as software and services in-spite of the uncertain macro environment.

We also saw continued positive momentum in the metrics we use to track our success. Annual recurring revenue grew 17.3% in the quarter, GRR and NRR remain at consistently healthy levels of 96% and 110%, respectively. Average annual revenue per customer was $104,370 at the end of the first quarter, up 16.4% year-over-year, and the number of scaled customers are those generating over $100,000 of annual revenue grew 13%. This resulted in revenue of $132.8 million, and adjusted EBITDA of $20.2 million.