Dec 31, 2022

Vertex Q4 2022 Earnings Report

Vertex's Q4 2022 financial results were announced, showcasing revenue growth and strong profitability.

Key Takeaways

Vertex announced strong Q4 2022 results with revenue growth of 17.4% year-over-year. The company delivered positive free cash flow and saw acceleration in revenue growth. Investments in strategic acquisitions and product development are driving growth opportunities.

Total revenues increased by 17.4% year-over-year, reaching $131.1 million.

Software subscription revenues grew by 18.9% year-over-year, amounting to $110.9 million.

ARR increased by 16.5% year-over-year, reaching $431.1 million.

Net Revenue Retention rate was 110%, up from 108% in the prior year.

Total Revenue
$131M
Previous year: $112M
+17.4%
EPS
$0.08
Previous year: $0.08
+0.0%
Annual Recurring Revenue
$431M
Previous year: $370M
+16.5%

Vertex

Vertex

Forward Guidance

For the first quarter of 2023, the Company currently expects revenues of $131 million to $133 million, and Adjusted EBITDA of $19 million to $21 million. For the full-year 2023, the Company currently expects revenues of $550 to $556 million, Cloud revenue growth of 27%, and Adjusted EBITDA of $92 to $96 million.

Positive Outlook

  • Revenues of $131 million to $133 million for Q1 2023
  • Adjusted EBITDA of $19 million to $21 million for Q1 2023
  • Revenues of $550 to $556 million for full year 2023
  • Cloud revenue growth of 27% for full year 2023
  • Adjusted EBITDA of $92 to $96 million for full year 2023