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M VERTEX Vertex Announces Third Quarter 2021 Financial Results November 10 , 2021 KING OF PRUSSIA , Pa . , Nov. 10 , 2021 ( GLOBE NEWSWIRE ) -- Vertex , Inc. ( NASDAQ : VERX ) ( " Vertex " or the " Company " ) , a global provider of tax technology solutions , today announced financial results for its third quarter ended September 30 , 2021 . " The shift to e - commerce has accelerated , becoming a preferred method for consumers and a profitable option for businesses . We are driving our strategy to advance global commerce by increasing the adoption of our cloud - based solutions and making key acquisitions that will position us for future growth , " said David DeStefano , Vertex Chief Executive Officer . " This quarter we extended our end - to - end solution platform with advanced capabilities to support the ever - increasing complexity facing today's major omnichannel businesses . " Third Quarter 2021 Financial Results • Total revenues of $ 110.7 million , up 17.0 % year - over - year . • Software subscription revenues of $ 92.3 million , up 15.7 % year - over - year . • Cloud revenues of $ 33.3 million , up 45.6 % year - over - year . • Annual Recurring Revenue ( " ARR " ) of $ 352.9 million , up 15.1 % year - over - year . Average Annual Revenue per customer ( " AARPC " ) was $ 82,900 at September 30 , 2021 , compared to $ 80,500 at June 30 , 2021 . • Net Revenue Retention ( " NRR " ) rate was 106 % in the third quarter of 2021 , consistent with the second quarter of 2021 . • Loss from operations of $ ( 3.6 ) million , compared to a loss from operations of $ ( 50.0 ) million for the same period prior year . Non - GAAP operating income of $ 18.3 million , compared to $ 19.8 million for the same period prior year . • Net loss of $ ( 3.9 ) million , compared to a net loss of $ ( 21.0 ) million for the same period prior year . • Net loss per basic and diluted Class A and Class B share of $ ( 0.03 ) , compared to $ ( 0.15 ) per basic and diluted Class A and Class B share for the same period prior year . • Non - GAAP net income of $ 13.2 million and Non - GAAP diluted EPS of $ 0.08 . • Adjusted EBITDA of $ 21.4 million , compared to $ 22.5 million for the same period prior year . Adjusted EBITDA margin of 19.3 % , compared to 23.8 % for the same period prior year . • Over 4,258 customers at September 30 , 2021 . Vertex Chief Financial Officer John Schwab said , " The global Vertex team delivered solid performance this quarter with continued growth in annual recurring revenues , including a number of significant expansion opportunities with existing accounts demonstrating our ability to support customers as their businesses grow . " Definitions of certain key business metrics and the non - GAAP financial measures used in this press release and reconciliations of such measures to the most directly comparable GAAP financial measures 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 LCR - Dixon tools and expertise to extend our end - to - end global tax management solution with optimized tax automation and intelligence solutions for SAP customers . • Launched the global Vertex Cloud VAT Compliance solution with advanced features to support the changing tax environment across Europe and other countries that require the digitalization of value - added tax ( " VAT " ) and goods and services tax ( " GST " ) . • Expanded partnership with Acumatica with the Vertex Cloud Indirect Tax solution achieving the " Fulfilled by Acumatica " certification designation . Financial Outlook For the fourth quarter of 2021 , the Company currently expects : • Revenues in the range of $ 108 million to $ 110 million , representing growth of 8.5 % to 10.6 % from the fourth quarter of 2020 ; and Adjusted EBITDA in the range of $ 15 million to $ 17 million , representing a decrease of $ ( 2.1 ) million to $ ( 4.1 ) million from the fourth quarter of 2020 . ● For the full - year 2021 , the Company currently expects : • Revenues in the range of $ 422 million to $ 424 million , representing growth of 12.6 % to 13.2 % from the full - year 2020 ; • Organic cloud revenue growth in excess of 40 % from the full - year 2020 ; and