NASDAQ$VERX
Vertex Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Vertex's Q2 2022 earnings reflected strong financial performance with revenue growth and increased customer retention.
Vertex announced strong second-quarter results, with total revenues of $119.3 million, a 13.7% increase year-over-year, and software subscription revenues of $101.1 million, up 12.8% year-over-year. The company's ARR reached $398.1 million, up 18.4% year-over-year, while Net Revenue Retention was 110%.
- Total revenues increased by 13.7% year-over-year, reaching $119.3 million.
- Software subscription revenues grew by 12.8% year-over-year, totaling $101.1 million.
- ARR increased by 18.4% year-over-year, reaching $398.1 million.
- Net Revenue Retention was 110%, indicating strong customer retention and expansion.
Headline financials
Revenue & EPS history
Vertex · Revenue · Quarterly
$119M
Revenue by segment
Vertex · $18.2M total across 1 segment · Q2 2022
- Services$18.2M+18.6%100.0%
Forward guidance
For Q3 2022, Vertex expects revenues of $121.5 million to $124.0 million, representing 10% to 12% growth from Q3 2021, and Adjusted EBITDA of $16.5 million to $18.5 million. For the full year 2022, the company anticipates revenues of $480 million to $484 million, a 13% to 14% increase from 2021, with cloud revenue growth of 33% and Adjusted EBITDA of $72 million to $75 million.
Tailwinds
- Revenue growth of 10% to 12% is expected for Q3 2022 compared to Q3 2021.
- Full-year 2022 revenue is projected to increase by 13% to 14% compared to 2021.
- Cloud revenue growth is anticipated to be 33% for the full year 2022.
- Revenue for Q3 2022 is expected to be between $121.5 million and $124.0 million.
- Full-year 2022 revenue is forecasted to be between $480 million and $484 million.
Headwinds
- Adjusted EBITDA for Q3 2022 is expected to decrease by $3.4 million to $5.4 million from Q3 2021.
- Adjusted EBITDA for the full year 2022 is projected to decrease by $3 million to $6 million from 2021.
- Decreases in Adjusted EBITDA reflect ongoing investments in research and development.
- Decreases in Adjusted EBITDA reflect ongoing investments in selling and marketing expenses to drive growth.
- Decreases in Adjusted EBITDA reflect investments in internal infrastructure to drive future operating leverage.
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 Q2 2022
+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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