Vertex Inc · Q4 2021 earnings

Briefing

Vertex reported a revenue increase of 12.2% year-over-year, ARR growth of 17.0% year-over-year, and net revenue retention rate of 108%.

Vertex announced its Q4 and full year 2021 financial results, revealing a 12.2% increase in total revenues for the fourth quarter, reaching $111.7 million. The company's ARR grew by 17.0% year-over-year to $370.2 million, and the net revenue retention rate was 108%.

• Total revenues increased by 12.2% year-over-year, reaching $111.7 million.
• Software subscription revenues grew by 11.1% year-over-year, totaling $93.3 million.
• Cloud revenues increased by 38.9% year-over-year, amounting to $34.7 million.
• ARR reached $370.2 million, a 17.0% increase year-over-year.

Headline financials

Revenue & EPS history

For the first quarter of 2022, the Company currently expects revenues of $112.5 million to $113.5 million, representing growth of 15% to 16% from the first quarter of 2021; and Adjusted EBITDA of $16.0 million to $17.0 million, representing a decrease of $1.0 million to $2.0 million from the first quarter of 2021. For the full-year 2022, the Company currently expects revenues of $479 million to $483 million, representing growth of 13% to 14% from the full-year 2021; Cloud revenue growth of 33% from the full-year 2021; and Adjusted EBITDA of $72 million to $75 million, representing a decrease of $3 million to $6 million from the full-year 2021, reflecting additional spend in research and development, as well as selling and marketing expenses to drive growth.