Vertex, Inc. (NASDAQ:VERX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Vertex, Inc. provides tax technology solutions for retail, communication, leasing, retail trade, wholesale trade, technology, and manufacturing industries in the United States and internationally. With the latest financial year loss of US$12m and a trailing-twelve-month loss of US$31m, the US$3.4b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Vertex's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable. Check out our latest analysis for Vertex Vertex is bordering on breakeven, according to the 11 American Software analysts. They expect the company to post a final loss in 2023, before turning a profit of US$5.9m in 2024. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 119% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected. We're not going to go through company-specific developments for Vertex given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period. Before we wrap up, there's one aspect worth mentioning. The company has managed its capital prudently, with debt making up 21% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company. There are key fundamentals of Vertex which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Vertex, take a look at Vertex's company page on Simply Wall St. We've also put together a list of essential factors you should further research:
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