NASDAQ$VERX

Vertex Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Vertex's Q4 2022 financial results were announced, showcasing revenue growth and strong profitability.

Vertex announced strong Q4 2022 results with revenue growth of 17.4% year-over-year. The company delivered positive free cash flow and saw acceleration in revenue growth. Investments in strategic acquisitions and product development are driving growth opportunities.

  • Total revenues increased by 17.4% year-over-year, reaching $131.1 million.
  • Software subscription revenues grew by 18.9% year-over-year, amounting to $110.9 million.
  • ARR increased by 16.5% year-over-year, reaching $431.1 million.
  • Net Revenue Retention rate was 110%, up from 108% in the prior year.

Headline financials

Total Revenue

$131M

Previous: $112M+17.4%
EPS (adj)

$0.08

Previous: $0.08+0.0%
Annual Recurring Revenue

$431M

Previous: $370M+16.5%
Net Income

-$5.31M

Previous: -$600K-784.8%
Operating Income

-$3.38M

Previous: -$14.00-24164185.7%

Revenue & EPS history

Vertex · Revenue · Quarterly

$131M

Q4 2022+17.4%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Vertex · $20.2M total across 1 segment · Q4 2022

  • Services
    $20.2M+10.0%

Forward guidance

For the first quarter of 2023, the Company currently expects revenues of $131 million to $133 million, and Adjusted EBITDA of $19 million to $21 million. For the full-year 2023, the Company currently expects revenues of $550 to $556 million, Cloud revenue growth of 27%, and Adjusted EBITDA of $92 to $96 million.

Tailwinds

  • Revenues of $131 million to $133 million for Q1 2023
  • Adjusted EBITDA of $19 million to $21 million for Q1 2023
  • Revenues of $550 to $556 million for full year 2023
  • Cloud revenue growth of 27% for full year 2023
  • Adjusted EBITDA of $92 to $96 million for full year 2023

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 2022

Historical avgQ4 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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