NASDAQ$VERX

Vertex Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Vertex reported strong Q3 2023 results with revenue growth and increased ARR.

Vertex announced strong financial results for the third quarter ended September 30, 2023. Total revenues were $145.0 million, up 14.9% year-over-year. Annual Recurring Revenue (ARR) was $484.9 million, up 17.8% year-over-year. Net loss was $(3.4) million, and Non-GAAP diluted EPS was $0.10.

  • Total revenues increased by 14.9% year-over-year, reaching $145.0 million.
  • Software subscription revenues grew by 14.0% year-over-year, totaling $121.3 million.
  • ARR increased by 17.8% year-over-year, reaching $484.9 million.
  • Average Annual Revenue per direct customer (AARPC) was $112,690.

Headline financials

Total Revenue

$145M

Previous: $126M+14.9%
EPS (adj)

$0.10

Previous: $0.08+25.0%
Annual Recurring Revenue

$485M

Previous: $412M+17.8%
Capital Expenditures

-$35.4M

Previous: -$43M+17.7%
Free Cash Flow

-$38.8M

Previous: -$44.1M+12.1%
Net Income

-$3.4M

Previous: -$1.14M-197.9%
Operating Income

-$2.02M

Previous: -$871K-131.7%
Gross Profit

$88.2M

Previous: $75.6M+16.6%
Cash & Equivalents

$49.5M

Previous: $72.4M-31.6%
Total Assets

$720M

Previous: $677M+6.3%
R&D Expense

$16.8M

No prior period

Revenue & EPS history

Vertex · Revenue · Quarterly

$145M

Q3 2023+14.9%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Vertex · $23.7M total across 1 segment · Q3 2023

  • Services
    $23.7M+19.5%

Forward guidance

For the fourth quarter of 2023, the Company currently expects revenues of $145 million to $147 million and Adjusted EBITDA of $27.5 million to $29.5 million. For the full-year 2023, the Company currently expects revenues of $562.5 to $564.5 million, cloud revenue growth of 25%, and Adjusted EBITDA of $96.3 to $98.3 million.

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 2023

Historical avgQ3 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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