NASDAQ$VERX

Vertex Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Vertex reported solid performance with continued growth in annual recurring revenues and expansion opportunities, also acquired LCR-Dixon.

Vertex announced financial results for the third quarter ended September 30, 2021. Total revenues were $110.7 million, up 17.0% year-over-year. The company acquired LCR-Dixon and launched the global Vertex Cloud VAT Compliance solution.

  • Total revenues of $110.7 million, up 17.0% year-over-year.
  • Software subscription revenues of $92.3 million, up 15.7% year-over-year.
  • Cloud revenues of $33.3 million, up 45.6% year-over-year.
  • Annual Recurring Revenue (“ARR”) of $352.9 million, up 15.1% year-over-year.

Headline financials

Total Revenue

$111M

Previous: $94.6M+17.0%
EPS (adj)

$0.08

Previous: $0.15-46.7%
Annual Recurring Revenue

$353M

Previous: $307M+15.1%
Capital Expenditures

-$23.9M

Previous: -$15M-59.5%
Free Cash Flow

-$27.8M

Previous: -$36M+22.7%
Net Income

-$3.95M

Previous: -$21M+81.2%
Operating Income

-$3.61M

Previous: -$50M+92.8%
Gross Profit

$66.8M

Previous: $46.6M+43.2%
Cash & Equivalents

$47.5M

Previous: $270M-82.4%
Total Assets

$646M

Previous: $515M+25.4%

Revenue & EPS history

Vertex · Revenue · Quarterly

$111M

Q3 2021+17%vs Q3 2020
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Revenue by segment

Vertex · $18.4M total across 1 segment · Q3 2021

  • Services
    $18.4M+24.4%

Forward guidance

For the fourth quarter of 2021, the Company currently expects revenues in the range of $108 million to $110 million, representing growth of 8.5% to 10.6% from the fourth quarter of 2020; and Adjusted EBITDA in the range of $15 million to $17 million, representing a decrease of $(2.1) million to $(4.1) million from the fourth quarter of 2020.

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 Q3 2021

Historical avgQ3 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

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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