Vertex Q3 2020 Earnings Report
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%.
Vertex
Vertex
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.
- The company is unable to reconcile these forward looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because 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 GAAP measures for these periods but would not impact the non-GAAP measures.
- Such items may include stock-based compensation charges, public offering related charges, depreciation and amortization of capitalized software costs and acquired intangible assets, severance, IPO costs, income tax (benefit) expense from S to C Corporation conversion and other items.
- The unavailable information could have a significant impact on the Company’s GAAP financial results.
- Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially.