NASDAQ$VERX

Vertex Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Vertex delivered double-digit revenue growth and solid operating results.

Vertex's Q3 2022 financial results showed a 14% year-over-year increase in total revenues, reaching $126.2 million. Software subscription revenues grew by 15.3% to $106.4 million, and cloud revenues increased by 31.3% to $43.8 million. The company's ARR reached $411.5 million, a 16.6% increase year-over-year. Net loss was $(1.1) million, and Non-GAAP diluted EPS was $0.08.

  • Total revenues were $126.2 million, up 14.0% year-over-year.
  • Software subscription revenues were $106.4 million, up 15.3% year-over-year.
  • Cloud revenues were $43.8 million, up 31.3% year-over-year.
  • Annual Recurring Revenue (ARR) was $411.5 million, up 16.6% year-over-year.

Headline financials

Total Revenue

$126M

Previous: $111M+14.0%
EPS (adj)

$0.08

Previous: $0.08+0.0%
Annual Recurring Revenue

$412M

Previous: $353M+16.6%
Capital Expenditures

-$43M

Previous: -$23.9M-79.8%
Free Cash Flow

-$44.1M

Previous: -$27.8M-58.4%
Net Income

-$1.14M

Previous: -$3.95M+71.1%
Operating Income

-$871K

Previous: -$3.61M+75.9%
Gross Profit

$75.6M

Previous: $66.8M+13.2%
Cash & Equivalents

$72.4M

Previous: $47.5M+52.4%
Total Assets

$677M

Previous: $646M+4.9%

Revenue & EPS history

Vertex · Revenue · Quarterly

$126M

Q3 2022+14%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Vertex · $126M total across 2 segments · Q3 2022

  • Software subscriptions
    $106M
  • Services
    $19.9M+7.7%

Forward guidance

For the fourth quarter of 2022, the Company currently expects: Revenues of $124 million to $127 million, representing growth of 11% to 14% from the fourth quarter of 2021; and Adjusted EBITDA of $15.4 million to $19.4 million, representing a decrease of $3.9 million from the fourth quarter of 2021 at the low end of the range.

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 2022

Historical avgQ3 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

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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