NASDAQ$VERX
Vertex Inc · Q1 2021 earnings
Q1 2021 earnings · · Investor relations
Briefing
Vertex's first quarter results for 2021 showed revenue growth and improved profitability.
Vertex announced strong first quarter results with a 10.1% increase in total revenues year-over-year, reaching $98.2 million. The company also reported a significant improvement in operating income and net income compared to the same period last year.
- Total revenues increased by 10.1% year-over-year, reaching $98.2 million.
- Software subscription revenues grew by 9.9% year-over-year, amounting to $83.3 million.
- Annual Recurring Revenue (ARR) increased by 12.6% year-over-year, totaling $320.1 million.
- The company acquired Taxamo, a cloud-based tax automation provider, and Tellutax, an edge-computing startup.
Headline financials
Revenue & EPS history
Vertex · Revenue · Quarterly
$98.2M
Revenue by segment
Vertex · $23.7M total across 1 segment · Q3 2023
- Services$23.7M+19.5%100.0%
Forward guidance
For the second quarter of 2021, Vertex expects revenues in the range of $99.0 million to $100.0 million, representing growth of 8.5% to 9.6% from the second quarter of 2020, and Adjusted EBITDA in the range of $15.5 million to $16.5 million, representing a decrease of $6.0 million to $5.0 million from the second quarter of 2020.
Tailwinds
- Revenues in the range of $99.0 million to $100.0 million, representing growth of 8.5% to 9.6% from the second quarter of 2020.
- Full-year 2021 revenue is expected to be in the range of $410 million to $414 million, representing growth of 9.4% to 10.5% from the full-year 2020.
- The Taxamo acquisition is expected to contribute $0.5 million to revenues in the second quarter of 2021.
- The Taxamo acquisition is expected to contribute $9.0 million to revenues for the full-year 2021.
- Expect Taxamo to have a more significant impact on 2022 revenues due to the timing of the acquisition and the tailwinds from new and pending marketplace facilitator VAT regulations.
Headwinds
- Adjusted EBITDA in the range of $15.5 million to $16.5 million, representing a decrease of $6.0 million to $5.0 million from the second quarter of 2020.
- Full-year 2021 Adjusted EBITDA is expected to be in the range of $66 million to $70 million, representing a decrease of $12.4 million to $8.4 million from the full-year 2020 due to the acceleration of our growth investments.
- The Taxamo acquisition is expected to decrease Adjusted EBITDA by $0.5 million in the second quarter of 2021.
- The Taxamo acquisition is expected to decrease Adjusted EBITDA by $2.0 million for the full-year 2021 primarily attributable to integration costs.
- Certain non-GAAP financial measures included in our financial outlook were not reconciled to the comparable GAAP financial measures because the GAAP financial measures are not accessible on a forward-looking basis.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2021
+0.5%
Avg return
Earnings day
+0.3%
Avg return
5 days after
+4.2%
Avg return
30 days after
50%
12 / 24 earnings
Positive
+32.1%
Q4 2023
Best reaction
-20.9%
Q4 2020
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -5.2% | +6.8% | +3.9% | |
| Q4 2025 | -13.8% | -14.3% | -10.6% | |
| Q3 2025 | -8.5% | -14.8% | -13.6% | |
| Q2 2025 | -18.0% | -24.4% | -27.3% | |
| Q1 2025 | -3.1% | -3.3% | +6.1% | |
| Q4 2024 | -19.0% | -24.4% | -16.6% | |
| Q3 2024 | +17.4% | +12.8% | +28.8% | |
| Q2 2024 | -1.4% | -1.5% | -2.5% | |
| Q1 2024 | +1.3% | +5.1% | +13.7% | |
| Q4 2023 | +32.1% | +17.9% | +25.0% | |
| Q3 2023 | +21.3% | +23.7% | +27.6% | |
| Q2 2023 | +8.2% | +9.9% | +23.1% | |
| Q1 2023 | -5.9% | -7.0% | +8.7% | |
| Q4 2022 | +20.2% | +21.2% | +48.4% | |
| Q3 2022 | +11.3% | +3.1% | -7.0% | |
| Q2 2022 | +10.1% | +10.4% | +13.6% | |
| Q1 2022 | -19.7% | -5.5% | -13.2% | |
| Q4 2021 | +1.1% | -5.6% | +16.0% | |
| Q3 2021 | +1.4% | +1.1% | -14.2% | |
| Q2 2021 | -0.2% | +3.0% | +1.7% | |
| Q1 2021 | +13.5% | +20.4% | +16.7% | |
| Q4 2020 | -20.9% | -16.6% | -34.3% | |
| Q3 2020 | -10.2% | -8.8% | -1.2% | |
| Q2 2020 | +0.7% | -2.0% | +8.4% | |
| Q1 2020 | — | — | — | |
| Q4 2019 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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