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Sep 30, 2020
Vertex Q3 2020 Earnings Report
Vertex reported strong third quarter results with solid revenue growth and accelerated cloud adoption.
Key Takeaways
Vertex announced its Q3 2020 financial results, reporting a total revenue of $94.6 million, which is up by 14.8% year-over-year. The company's software subscription revenue reached $79.8 million, reflecting a 12.3% increase year-over-year. The Annual Recurring Revenue (ARR) was $306.5 million, up 15.4% year-over-year. However, the GAAP operating loss was $50.0 million, and the GAAP net loss was $21.0 million.
Total revenue was $94.6 million, an increase of 14.8% year-over-year.
Software subscription revenue reached $79.8 million, up 12.3% year-over-year.
Annual Recurring Revenue (ARR) was $306.5 million, reflecting a 15.4% increase year-over-year.
Net Revenue Retention Rate (NRR) was 108%.
Revenue by Segment
Forward Guidance
For the fourth quarter of 2020, Vertex expects total revenue in the range of $93 million to $95 million, representing growth of 8.0% to 10.4%, and Adjusted EBITDA to be in the range of $18.5 to $19.5 million, representing an increase of 8.0% to 13.8%. For the full year 2020, the company expects total revenue in the range of $368 million to $370 million, representing annual growth of 14.5% to 15.1%, and Adjusted EBITDA in the range of $78.0 million to $79.0 million, representing annual growth of 14.9% to 16.3%.
Positive Outlook
- Total revenue in the range of $93 million to $95 million representing growth of 8.0% to 10.4% for Q4 2020
- Adjusted EBITDA to be in the range of $18.5 to $19.5 million, representing an increase of 8.0% to 13.8% for Q4 2020
- Total revenue in the range of $368 million to $370 million, representing annual growth of 14.5% to 15.1% for full year 2020.
- Adjusted EBITDA in the range of $78.0 million to $79.0 million, representing annual growth of 14.9% to 16.3% for full year 2020.
- Delivered new and expanded tax content to increase coverage in Brazil and support VAT COVID-19 changes around the world.
Challenges Ahead
- Certain non-GAAP measures included in our financial outlook were not reconciled to the comparable GAAP financial measures because the GAAP measures are not accessible on a forward-looking basis.
Historical Earnings Impact
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