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Mar 31, 2021
Vertex Q1 2021 Earnings Report
Vertex's first quarter results for 2021 showed revenue growth and improved profitability.
Key Takeaways
Vertex announced strong first quarter results with a 10.1% increase in total revenues year-over-year, reaching $98.2 million. The company also reported a significant improvement in operating income and net income compared to the same period last year.
Total revenues increased by 10.1% year-over-year, reaching $98.2 million.
Software subscription revenues grew by 9.9% year-over-year, amounting to $83.3 million.
Annual Recurring Revenue (ARR) increased by 12.6% year-over-year, totaling $320.1 million.
The company acquired Taxamo, a cloud-based tax automation provider, and Tellutax, an edge-computing startup.
Vertex
Vertex
Forward Guidance
For the second quarter of 2021, Vertex expects revenues in the range of $99.0 million to $100.0 million, representing growth of 8.5% to 9.6% from the second quarter of 2020, and Adjusted EBITDA in the range of $15.5 million to $16.5 million, representing a decrease of $6.0 million to $5.0 million from the second quarter of 2020.
Positive Outlook
- Revenues in the range of $99.0 million to $100.0 million, representing growth of 8.5% to 9.6% from the second quarter of 2020.
- Full-year 2021 revenue is expected to be in the range of $410 million to $414 million, representing growth of 9.4% to 10.5% from the full-year 2020.
- The Taxamo acquisition is expected to contribute $0.5 million to revenues in the second quarter of 2021.
- The Taxamo acquisition is expected to contribute $9.0 million to revenues for the full-year 2021.
- Expect Taxamo to have a more significant impact on 2022 revenues due to the timing of the acquisition and the tailwinds from new and pending marketplace facilitator VAT regulations.
Challenges Ahead
- Adjusted EBITDA in the range of $15.5 million to $16.5 million, representing a decrease of $6.0 million to $5.0 million from the second quarter of 2020.
- Full-year 2021 Adjusted EBITDA is expected to be in the range of $66 million to $70 million, representing a decrease of $12.4 million to $8.4 million from the full-year 2020 due to the acceleration of our growth investments.
- The Taxamo acquisition is expected to decrease Adjusted EBITDA by $0.5 million in the second quarter of 2021.
- The Taxamo acquisition is expected to decrease Adjusted EBITDA by $2.0 million for the full-year 2021 primarily attributable to integration costs.
- Certain non-GAAP financial measures included in our financial outlook were not reconciled to the comparable GAAP financial measures because the GAAP financial measures are not accessible on a forward-looking basis.