NASDAQ$VERX

Vertex Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Vertex reported strong financial results in Q2 2023, marked by high-teens revenue growth and a significant year-over-year increase in adjusted EBITDA.

Vertex announced strong Q2 2023 financial results, featuring high-teens revenue growth and a notable increase in adjusted EBITDA. Total revenues reached $139.7 million, up 17.1% year-over-year. The company's net revenue retention increased to 111%, and it delivered record average annual revenue per customer.

  • Total revenues increased by 17.1% year-over-year, reaching $139.7 million.
  • Software subscription revenues grew by 16.6% year-over-year, amounting to $117.8 million.
  • Cloud revenues increased by 27.3% year-over-year, totaling $51.2 million.
  • Net Revenue Retention (NRR) was 111%, compared to 110% in the same period last year.

Headline financials

Total Revenue

$140M

Previous: $119M+17.1%
EPS (adj)

$0.08

Previous: $0.06+33.3%
Annual Recurring Revenue

$468M

Previous: $398M+17.5%
Capital Expenditures

-$21.9M

Previous: -$27.8M+21.4%
Free Cash Flow

-$28.8M

Previous: -$33.3M+13.8%
Net Income

-$6.9M

Previous: -$5.52M-24.9%
Operating Income

-$4.07M

Previous: -$4.3M+5.2%
Gross Profit

$85.8M

Previous: $71.1M+20.6%
Cash & Equivalents

$41.9M

Previous: $85.6M-51.1%
Total Assets

$725M

Previous: $690M+5.1%

Revenue & EPS history

Vertex · Revenue · Quarterly

$140M

Q2 2023+17.1%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Vertex · $21.9M total across 1 segment · Q2 2023

  • Services
    $21.9M+20.2%

Forward guidance

For Q3 2023, Vertex expects revenues of $141 to $143 million and adjusted EBITDA of $24 to $26 million. For the full year 2023, the company expects revenues of $556 to $562 million, cloud revenue growth of 27%, and adjusted EBITDA of $93 to $97 million.

Tailwinds

  • Revenue is expected to be between $141 million and $143 million for Q3 2023.
  • Adjusted EBITDA is projected to be between $24 million and $26 million for Q3 2023.
  • Full-year 2023 revenue is anticipated to be between $556 million and $562 million.
  • Cloud revenue growth is expected to be 27% for the full year 2023.
  • Adjusted EBITDA is forecasted to be between $93 million and $97 million for the full year 2023.

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 2023

Historical avgQ2 2023

+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

Earnings price reactions
QuarterReport dateReaction (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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