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Vertex Announces First Quarter 2021 Financial Results KING OF PRUSSIA , PA – May 13 , 2021 : Vertex , Inc. ( NASDAQ : VERX ) ( " Vertex " or the " Company " ) , a global provider of tax technology solutions , today announced financial results for its first quarter ended March 31 , 2021 . MVERTEX " Our strong start to 2021 reflects the trust our customers have in us to help them navigate today's complex and dynamic commerce landscape . The entire team is laser focused on our mission to enable every business to transact , comply and grow with confidence , " said David DeStefano , Vertex President and Chief Executive Officer . " As tax revenues continue to be a key part of our global economic recovery , the mission - critical role of our solutions to enable growth and reduce tax compliance friction will only continue . The investments we are making in our people and technology keep us well positioned to seize these opportunities with innovative and differentiated solutions . " First Quarter 2021 Financial Results ● Total revenues of $ 98.2 million , up 10.1 % year - over - year . Software subscription revenues of $ 83.3 million , up 9.9 % year - over - year . Annual Recurring Revenue of $ 320.1 million , up 12.6 % year - over - year . Operating income of $ 2.1 million , compared to an operating loss of $ ( 28.2 ) million for the same period prior year . Non - GAAP operating income of $ 15.4 million , up 23.6 % year - over - year . Net income of $ 2.3 million , compared to a net loss of $ ( 29.1 ) million for the same period prior year . Non - GAAP net income of $ 11.0 million , compared to $ 11.6 million for the same period prior year . Net income ( loss ) per basic Class A and Class B share was $ 0.02 , compared to $ 0.00 and $ ( 0.24 ) , respectively , for the same period prior year . Net income ( loss ) per diluted Class A and Class B share was $ 0.01 , compared to $ 0.00 and $ ( 0.24 ) , respectively , for the same period prior year . Non - GAAP diluted EPS was $ 0.07 , compared to $ 0.09 for the same period prior year . Adjusted EBITDA of $ 18.2 million , up 18.9 % year - over - year . Adjusted EBITDA margin of 18.5 % , up 140 basis points year - over - year . Vertex Chief Financial Officer John Schwab said , " We continue to execute and have delivered another strong quarter of performance . We remain confident in the strength of our business model , and plan to continue investing in our sustainable , long - term growth as CFOs and CIOs around the world face increased business and regulatory complexity . We believe the investments we are making to accelerate go - to - market , expand our partnerships , deliver new products , and enable great customer experiences are adding positive momentum to our business . " Definitions of certain key business metrics and the non - GAAP financial measures used in this press release and reconciliations of such measures to their nearest GAAP equivalents are included below under the headings " Definitions of Certain Key Business Metrics " and " Use and Reconciliation of Non - GAAP Financial Measures . " Recent Business Highlights Acquired Taxamo , a cloud - based pioneer in tax and payment automation for global e - commerce and marketplaces on May 12 , 2021. The purchase price for Taxamo was approximately $ 200 million in an all cash transaction . This acquisition supports and accelerates our growth strategies across ecommerce platforms and marketplaces in the enterprise and mid - market in Europe and North America , and among our existing global customers . The acquisition is a strategic opportunity that we believe will provide accretive revenue growth . Acquired the assets of 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 . - 1