https://assets.capyfin.com/instruments/678fdc13234e27009c5d614a.png avatar
Vertex
🇺🇸 NASDAQ:VERX
View Company
OverviewEarningsDividends
•
Mar 31, 2022

Vertex Q1 2022 Earnings Report

Vertex's first quarter performance in 2022 showed revenue acceleration and strategic investments driving growth and market leadership.

Key Takeaways

Vertex announced strong first quarter results with a 17% increase in total revenues year-over-year, driven by software subscriptions and cloud revenues. The company saw continued growth in ARR and NRR rates, and refinanced its credit facility to increase operational flexibility.

Total revenues increased by 17.0% year-over-year, reaching $115.0 million.

Software subscription revenues grew by 16.6% year-over-year, totaling $97.1 million.

Cloud revenues experienced substantial growth, increasing by 42.1% year-over-year to $38.3 million.

ARR increased by 18.9% year-over-year, reaching $380.6 million.

Total Revenue
$115M
Previous year: $98.2M
+17.0%
EPS
$0.08
Previous year: $0.07
+14.3%
Annual Recurring Revenue
$381M
Previous year: $320M
+18.9%

Vertex

Vertex

Vertex Revenue by Segment

Forward Guidance

For the second quarter of 2022, the Company currently expects revenues of $116.0 million to $117.5 million, representing growth of 11% to 12% from the second quarter of 2021; and Adjusted EBITDA of $16.0 million to $18.0 million, representing a decrease of $1.2 million to $3.2 million from the second quarter of 2021.

Positive Outlook

  • Revenues of $116.0 million to $117.5 million, representing growth of 11% to 12% from the second quarter of 2021
  • Cloud revenue growth of 33% from the full-year 2021
  • Revenues of $479 million to $483 million, representing growth of 13% to 14% from the full-year 2021
  • Ongoing investment in research and development
  • Ongoing investment in selling and marketing expenses to drive growth

Challenges Ahead

  • Adjusted EBITDA of $16.0 million to $18.0 million, representing a decrease of $1.2 million to $3.2 million from the second quarter of 2021
  • Adjusted EBITDA of $72 million to $75 million, representing a decrease of $3 million to $6 million from the full-year 2021
  • The Company is unable to reconcile forward-looking Adjusted EBITDA to net income (loss)
  • The Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact net income (loss) for these periods but would not impact Adjusted EBITDA
  • Actual results may differ materially

Company Overview

Full financial data and analysis

View Vertex