Vertex Q4 2020 Earnings Report
Key Takeaways
Vertex announced strong fourth-quarter financial results, with total revenues up 15.7% year-over-year to $99.5 million. Software subscription revenues also saw a significant increase, rising 15.1% year-over-year to $83.9 million. The company's annual recurring revenue (ARR) reached $316.4 million, marking a 13.6% increase year-over-year.
Total revenues increased by 15.7% year-over-year, reaching $99.5 million.
Software subscription revenues grew by 15.1% year-over-year, amounting to $83.9 million.
Annual Recurring Revenue (ARR) increased by 13.6% year-over-year, totaling $316.4 million.
Operating income was $2.5 million, while net income was $0.2 million.
Vertex
Vertex
Forward Guidance
For the first quarter of 2021, the Company currently expects revenues of $94.5 million to $96.5 million, representing growth of 5.9% to 8.1%. Adjusted EBITDA of $15.5 million to $17.5 million, representing an increase of $0.2 million to $2.2 million. For the full-year 2021, the Company currently expects revenues of $401 million to $405 million, representing growth of 7.0% to 8.1%. Adjusted EBITDA of $68 million to $72 million, representing a decrease of $6.4 million to $10.4 million. 2021 Adjusted EBITDA anticipates $2 million in increased operating expenses related to the acquisition of Tellutax in January 2021.
Positive Outlook
- Revenues of $94.5 million to $96.5 million, representing growth of 5.9% to 8.1% for Q1 2021.
- Adjusted EBITDA of $15.5 million to $17.5 million, representing an increase of $0.2 million to $2.2 million for Q1 2021.
- Revenues of $401 million to $405 million, representing growth of 7.0% to 8.1% for FY 2021.
- Acquired edge-computing startup, Tellutax, on January 25, 2021, enabling the next generation of tax technology solutions to be delivered seamlessly at the point of need with increased scalability and simplified management.
- Announced the hiring of Sal Visca as Chief Technology Officer, an executive who is a recognized innovator and leader of global technology teams in e-commerce, business intelligence and enterprise management software.
Challenges Ahead
- Adjusted EBITDA of $68 million to $72 million, representing a decrease of $6.4 million to $10.4 million for FY 2021.
- 2021 Adjusted EBITDA anticipates $2 million in increased operating expenses related to the acquisition of Tellutax in January 2021.
- Potential effects on our business of the COVID-19 pandemic.
- Our ability to attract new customers on a cost-effective basis and the extent to which existing customers renew and upgrade their subscriptions.
- Our ability to sustain and expand revenues, maintain profitability, and to effectively manage our anticipated growth.