Sep 30, 2023

Vertex Q3 2023 Earnings Report

Vertex reported strong Q3 2023 results with revenue growth and increased ARR.

Key Takeaways

Vertex announced strong financial results for the third quarter ended September 30, 2023. Total revenues were $145.0 million, up 14.9% year-over-year. Annual Recurring Revenue (ARR) was $484.9 million, up 17.8% year-over-year. Net loss was $(3.4) million, and Non-GAAP diluted EPS was $0.10.

Total revenues increased by 14.9% year-over-year, reaching $145.0 million.

Software subscription revenues grew by 14.0% year-over-year, totaling $121.3 million.

ARR increased by 17.8% year-over-year, reaching $484.9 million.

Average Annual Revenue per direct customer (AARPC) was $112,690.

Total Revenue
$145M
Previous year: $126M
+14.9%
EPS
$0.1
Previous year: $0.08
+25.0%
Annual Recurring Revenue
$485M
Previous year: $412M
+17.8%
Gross Profit
$85M
Cash and Equivalents
$57.8M
Free Cash Flow
$17M
Total Assets
$720M

Vertex

Vertex

Forward Guidance

For the fourth quarter of 2023, the Company currently expects revenues of $145 million to $147 million and Adjusted EBITDA of $27.5 million to $29.5 million. For the full-year 2023, the Company currently expects revenues of $562.5 to $564.5 million, cloud revenue growth of 25%, and Adjusted EBITDA of $96.3 to $98.3 million.