NASDAQ$VERX
Vertex Inc · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Vertex's Q4 2020 financial results demonstrated strong growth in total revenues and software subscriptions, alongside continued investment in scaling the team and expanding global capabilities.
Vertex announced strong fourth-quarter financial results, with total revenues up 15.7% year-over-year to $99.5 million. Software subscription revenues also saw a significant increase, rising 15.1% year-over-year to $83.9 million. The company's annual recurring revenue (ARR) reached $316.4 million, marking a 13.6% increase year-over-year.
- Total revenues increased by 15.7% year-over-year, reaching $99.5 million.
- Software subscription revenues grew by 15.1% year-over-year, amounting to $83.9 million.
- Annual Recurring Revenue (ARR) increased by 13.6% year-over-year, totaling $316.4 million.
- Operating income was $2.5 million, while net income was $0.2 million.
Headline financials
Revenue & EPS history
Vertex · Revenue · Quarterly
$99.5M
Revenue by segment
Vertex · $15.6M total across 1 segment · Q4 2020
- Services$15.6M—100.0%
Forward guidance
For the first quarter of 2021, the Company currently expects revenues of $94.5 million to $96.5 million, representing growth of 5.9% to 8.1%. Adjusted EBITDA of $15.5 million to $17.5 million, representing an increase of $0.2 million to $2.2 million. For the full-year 2021, the Company currently expects revenues of $401 million to $405 million, representing growth of 7.0% to 8.1%. Adjusted EBITDA of $68 million to $72 million, representing a decrease of $6.4 million to $10.4 million. 2021 Adjusted EBITDA anticipates $2 million in increased operating expenses related to the acquisition of Tellutax in January 2021.
Tailwinds
- Revenues of $94.5 million to $96.5 million, representing growth of 5.9% to 8.1% for Q1 2021.
- Adjusted EBITDA of $15.5 million to $17.5 million, representing an increase of $0.2 million to $2.2 million for Q1 2021.
- Revenues of $401 million to $405 million, representing growth of 7.0% to 8.1% for FY 2021.
- Acquired edge-computing startup, Tellutax, on January 25, 2021, enabling the next generation of tax technology solutions to be delivered seamlessly at the point of need with increased scalability and simplified management.
- Announced the hiring of Sal Visca as Chief Technology Officer, an executive who is a recognized innovator and leader of global technology teams in e-commerce, business intelligence and enterprise management software.
Headwinds
- Adjusted EBITDA of $68 million to $72 million, representing a decrease of $6.4 million to $10.4 million for FY 2021.
- 2021 Adjusted EBITDA anticipates $2 million in increased operating expenses related to the acquisition of Tellutax in January 2021.
- Potential effects on our business of the COVID-19 pandemic.
- Our ability to attract new customers on a cost-effective basis and the extent to which existing customers renew and upgrade their subscriptions.
- Our ability to sustain and expand revenues, maintain profitability, and to effectively manage our anticipated growth.
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 Q4 2020
+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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro