VERX - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to Vertex’s Third Quarter 2020 Conference Call.

As a reminder, today’s call is being recorded and your participation implies consent to such recording. [Operator Instructions] With that, I would like to turn the call over to Ankit Hira, Investor Relations. Thank you, sir.

You may begin please.

Ankit Hira

you. Thank and call joining ending for XXXX. everyone financial for September you conference results the thank morning, us for Vertex’s XX, Good third quarter

the David Vertex Schwab. On we CFO, and John CEO, today, call DeStefano have

are we expected statements. call, call, future our forward-looking may results Before disclaimer forward-looking statements of and Q&A This allow for provide including me a therefore begin, related regarding portion include the forward-looking the statements. to to company the

to differ forward-looking filings. Our earnings of from to materially a actual references due risks that number other Today’s and projections uncertainties are may include also statements to The uncertainties. SEC results will release and our risks financial our non-GAAP subject remarks described and in are measures.

with take financial third is financial the at an before to This overview of Relations I John Q&A. non-GAAP information David. the the ir.vertexinc.com. replay press available release. Investor over With through will will Additional we to to review provided you call the webcast will financials proceed call begin information, information will be that, our via website of David conference highlights. quarter for reconciliation turn GAAP in a now Vertex, Vertex’s including followed through between by then

David DeStefano

of have testament I of teams how Vertex the on our with Thanks, key in and profitability. And We new I you hybrid challenging that that approach all think they Ankit quarter proud sustainable strength meet are ability growth know customers maintained are in am metrics, and will reflects when share customers serve line for year-over-year delivering cloud complexity. welcome which everyone. customers, so of complex to today. the their to has among both and pleased our a results am and focus IT our adoption cloud third is they they across top these Thank to of performance the saw to joining ready, which And business our us drive we strong where I times. our their accelerated double-digit resilience solution their existing our supporting growth roadmap. delivered and

new metrics, operational improvements speak are a they Our our as transformation clear momentum business many a that companies, and will bottom in to macro line their year-over-year the in to initiatives. is these of and From normal operations increased reflects a models John accelerating moment. our customers’ to perspective, in operations which adapting complexity several discipline it’s led tax scale digital supporting and for

areas, the and underscore to value the in Vertex that customers challenges solutions results financial fueled we believe and Throughout results help ecosystem. our challenging have strong unique maintained strong everyday meet as our brings sales this Our our and to ahead. and in such our our year, and We success growth. their our them partner confidence investments customer investments these validate marketing, key

R&D investment to add We also the and beyond, systemic while indirect abroad, and and economy growth plays to continue positioning financial we economic central to to that still into what tax also and drivers U.S. I QX here on us a in the improves future delivering globally. performance role capitalize strong as for the opportunities foresee in jurisdictions despite uncertainties, the accelerate in the strategy. our macroeconomic believe aligns want opportunity continue which we to create now recovery

the notable quarter. Now, would like to highlights share from I some

tax to revenues. extend regions of had customers continue existing We investments with and their a business and complexities across our to business us omni-channel customer manage strategies we expanding models they as expand their multiple existing accelerating First, number applications.

retail operations. been improvement expanded leveraging who now for the of their solutions the world’s have of one companies, and home with have our purchasing leader relationship use e-commerce for believe and their our of use We expanded we solutions supporting operations. quarter, our continue in to be This world’s will largest online and omni-channel their brick-and-mortar in accelerates as to stores we the the companies some in manage offline biggest consumer’s tax

retailer order stores global in a and mobile its helping thousands also countries. for of across customer expand payment applications dozens are We of

Next, grade I bringing and services is us. of their companies delivery, businesses leasing, highlight that set how need growing of customers whole a exponentially would new to transformation in to food as grow like realizing are tax logistics, digital entertainment automation. fastest they economy enterprise Many the also education new

delivery on is we first-to-market grocery integration This longstanding our partnership where ERP large to and to deliver to processes consumer’s enhance Oracle with leverage specifically of digital cloud-to-cloud implementing store Oracle complexities the to our tax. solutions with also are is They chain example helping bring use transformation. to door infrastructure. their a Another tackle procurement its cloud enable as and of our Oracle part cloud solutions

our Third, ecosystem. we continue partner expand to

and many infrastructure, communication platform seeing enable providers and support solutions the payments, are customer in of transformation base. are their our We adopting and supporting infrastructure who growing services to cloud digital

quarter Alliance solutions. This of provide expanded services leverage approach BDO service with to we we firms. builds their their Concur and firms integration with our leading new members with the we expense local a enabling This new started consulting announced customers acquire relationship and with program, a provider Acumatica, invoice owned introduced leading supporting in OroCommerce, our the accounting, expanding exclusive opportunity partnerships independently regional to SAP CPA.com for efforts. platforms integrations new our In further BDO one relationship management. accounting we the and direct to channel certified and and of through that nationwide e-commerce our sales segment, from upon USA of And to cloud integration mid-market, ERP BXB the the association member

continue addition, we expand global to footprint. our In

to in VAT change continues of Europe the pace As more complex expected, get and increasing.

emerge seeing new We are opportunities there.

complexity new in tax is solutions to we is services. Brazil, tax applications For in mobile expanded for our automate and grow increase environment example, the company responded leveraging auto regulatory coverage one continues to complex most building delivering connected Also, which compliance of experiences those who content car a is environments. luxury to have through digital the and

world largest in is Our expand there one additional Brazil. work to into the enabling of states in companies the

In continue changes related in food the COVID-XX enhanced world. industries. for addition, around to retail, tax and we content North beverage the significantly and to we America, leasing, And support VAT

them interesting breadth proof-of-concept completed merchants. world’s one machine are largest functionality important of am in sustaining this investments thrilled a compliance, of our product I and change extending we enable and a Finally, the continue quickly and in new and we and commerce is onboard learning quarter, solutions. innovating of our innovation. believe With very software new to it marketplaces with tax to categorization the pace to involving We

work of ahead, proud positions to the for uncertainties well up availability, believe showed and partners to customers. to environment our I are that and marketplace commercial well but incredibly customers, capitalize as social come. all working from that on months enterprise am communities. bring how resulting Now, source resilience past over positioned are we a rely have new We global to believe employees great whole partners the major to there in our a to both continue indirect tax adapting also and automation teams and our X,XXX Vertex serve We on are supporting I regulatory, beat months, to in and in technology without to business, us of transformations, demand continues economic, taxation economy realize and geopolitical as the especially leadership demonstrating global enterprise revenue. the missing our a customers these

practices partners prospects In their our event is investments. help the to fact and where this bring technology we first best annual Vertex of week, together customer ever customers, on hosted trends, connect virtual our we regulatory maximize conference, value and them which innovation to

we being address Xx in year. enables Xx customer of attendees saw tax audience a this and the is over having tremendous financial physical the destination. their we with expand strategies X,XXX them enterprise the with also John attendance will to us I to for to quarter in would growing provide over grade customers. Exchange and year and conversations results than and One able discuss affirm partners of the to for and complexities benefits end-to-end turn continues are new everyday. them to the well we our them, first-time it were of value reach half to The interest nearly capabilities now bigger are to guidance delivering virtual those relationships in customers business. to being and We our

John Schwab

at you, Thank to results am XXXX morning everyone. good reach XX.X% Today, $XX.X then grew and full grew going year I year-over-year David and third our third and XX.X% to $XX.X Subscription revenues year-over-year revenue to quarter quarter QX guidance. million. Total provide million. discuss

Our XX.X% growth annual or million. a ARR, $XXX.X This recurring year-over-year. to grew revenue, represents

and new services related or growth Our revenues driven the services from million subscription implementation customers. to revenue XX.X% in grew $XX.X with our associated by existing

well We grew existing quarter in both third over XXXX. solutions as Cloud new of continue quarter third by the sales customers. the among cloud-based growth as of see to our XX% XXXX strong our in customers

continue for the to growth. believe and drive presents company cloud a to opportunity ARR unique the We shift that additional revenues to

be focus made XX% of made sales an continued existing to to up of for new sales the up and software of XXXX. continues area customers All XX% Our company. in quarter sales it the third new of logos the

which Our continued software retention our our XXX%, net demonstrates rate to customer’s solutions. and revenue is commitment

in gross $XX.X a continued expenses, are On point From profit last unless XX.X% customer the release the retention revenue our year. with XX.X% otherwise as a prior remainder period was basis, was as note difference issued quarter, basis areas. the all periods. please In our is on investment reflects and software the as to representing in XX gross consistent basis income well results margins non-GAAP standpoint, This our per well our discussing our XX%, last earnings change in with investment our compares press results a gross operating results that margin support gross an our share compared subscription infrastructure the margin. prior overall as and reconciled million was and $XX by XX.X% our in functions. GAAP service of which in remained of a same Our third profit were as that driven This evening. tax cloud gross the year. customer in gross in million The are XX.X% references research with stated, at statement,

Our business margin the to increased in in XX.X% prior our XX.X% year. from services

marketing levels was productivity of implementation of – to XX.X% for increase $XX.X see software existing and as customers’ the and solutions We was of XXX the of increased and decrease demand driven the basis due needs. year-over-year, Sales development expense or for million, our address strong on points primarily end-to-end well data projects. expenses new $XX.X quarter Research year-over-year, revenue, and points by and in from services solutions marketing third million was revenues, new a total customer in XX.X% a spend reduction basis to an restrictions. these as or analysis travel reflecting to COVID-XX XXX continue compliance of expense which

period $XX diluted loss million net $X.XX GAAP was Adjusted XX.X% for and share margin Class Our compared the period of of net per up compensation. B versus relate process net reengineering Class other per expense EBITDA last third B the The leverage. The share million for $XX.X A consistent and of A and income future year. Class million, the same quarter income $XX.X was administrative year. diluted same respectively of million net infrastructure, $XX.X Class XX.X% same increases last non-GAAP that was million continue Class revenue year-over-year, of period B information of same was and GAAP and higher $XX.X share for with charges was Non-GAAP income EBITDA period per net income to XXXX. last Class to XX.X% to the Class basic year. of to last while in to the income was quarter XX.X% Non-GAAP GAAP Class of year. GAAP $X.XX by $XX.X and $X.XX income technology adjusted diluted of same for revenue per diluted A was the or respectively to non-GAAP compared driven million non-GAAP B drive $X.XX net compared third operating levels year. significant net compared most share net basic stock-based were A of our and and initiatives period general loss last

flow We raising proceeds XX.X from generated equivalents, XXXX. loan $XXX $XX.X of in which we approximately underwriting price cash completion net – for expenses. of quarter cash where balance to to quarter public million, million flow cash cash of $XXX $XX Turning increase share, million the and sheet of used was free statement, million fees, at the finished repay $XXX initial million offering and shares of per sold with primarily an we an offering, and our term reflecting $X.X the our in million IPO from our

for Turning in representing $XX range the $XX expect growth revenue increase to guidance to of of quarter an and now $XX.X million, X% to we fourth total $XX.X in to million, to of the of EBITDA million of XXXX, XX.X% the annual X% range XX.X%. million representing adjusted

year the million, $XXX range representing XX.X%. revenue representing EBITDA of Turning of range of XXXX, expect annual to now million, in $XX in XX.X% to million for the to of $XXX total the full annual and XX.X% to to XX.X% growth adjusted guidance million of $XX growth we

stock outstanding. average Class as share. shares outstanding, Class underlying weighted follows. had of price outlook stock had equivalents $X.XX and our XX,XXX,XXX shares our A common outstanding of of details September exercise XXX,XXX,XXX modeling a are B Additional we At XXXX, We with XX, XX,XXX,XXX per

to tax open on rate please business. we the that, open performance on pleased the you the expected up Operator, we be effective Q&A? now up questions. the for that are progress of line XX%. for we our it happy Overall, will strategic is to Our And are made with initiatives with

Operator

first Thank comes Brad you. Instructions] question from of proceed. Please Bank with Sills Our [Operator America.

Brad Sills

returns of their real with in Thanks guys. quarter. to of to cloud? are Hey, tax filings customers It in and saw cloud. more operations sounds I you my ask Great. regarding nice the What for some Where the question. and cloud? taking conversations like are this they the there results wanted the kind department migrating about

David DeStefano

Thanks Brad.

Brad Sills

you. thank Yes,

David DeStefano

Yes, great you. connect with to

they progress department, the tax So, to it our updates the has and cloud. looking their to IT will IT it to in roadmap to because in in with the strategy their tax be about leaders – control aligned corporate of resides continual has where starts conversation see their ultimately so infrastructure, the team, product, but to are own because typically can we the the make to the get ultimately to they and enhancements continue moving

look in that seeing migrate people they journey logos they accelerated customers COVID make dialogue win more are continue additional existing as existing through they and as want has certainly both So, those our with as of have or us, preponderance we to are that already with new that that well And solutions from. with offerings adds conversations. their they to ready to we have more

Brad Sills

you please? marketing mentioned That’s international great. and Thanks are so with Brazil other some us with regard much. And then remind on strength where you investment content in international, could content regions, you to and sales and in

David DeStefano

Yes, sure.

So, we the our investment us allowed to expand into made Brazil base this down dramatically. the tax in CESS earlier has which content – acquisition year,

to going had the to team Additionally, able we of forward market, some that be be to to bringing products the for will CESS tax we are the multinational. expand Brazilian our that

offer coordinate Brazil we how VAT can like to So into excited now CESS where teams we our down invoice to product are very multinationals at U.S. tax sales about. the we looking with are to that start market working their bring validation

expand elsewhere, changes as ongoing content In our though to continue all COVID Europe continue content to needs. customer’s as globally we of time. add our the well the and We between all

Brad Sills

so Thanks much, David. Great.

David DeStefano

Yes, good talking Brad. you to

Operator

Our comes question. Please Samana Samad next with question from your proceed Jefferies. with

Samad Samana

growth the especially questions. about as how David Hi, high level stayed? kind good taking the has out we the are quarter. middle you, have that strong that than the least halfway for we November, we think know my with But It’s now better in for is ARR maybe to morning. Thanks ARR the confidence Maybe of And, see level first XXXX, guiding you as of fourth expected. good anecdotally not results. I for are to at the growth through strong we of you discuss look And XXXX. or guys can you tracking

David DeStefano

comments. The Thanks, have into pipeline. is, a Samad. more appreciate started the little visibility to And truth our we gain

see pandemic pipeline were look forecast QX. as I where of you the in in now in rest QX, positive think we QX, forward encouraging. as signs our and into the thus continue the And we July, are out we we in were of to mindful that far we built came

obviously, also Europe. are, though that the lockdowns occurring are We recent mindful, with in

in need of many lead where the, be crisis, we going here say where thoughtful jurisdictions of that’s suggests commentary some accelerate increase. continue happening and indirect indirect across is, and because of we investing And regardless, investments. expanding still of increasing some we fundamentals to sales in the abroad, we that XXXX. certainly to R&D believe, opportunity marketing and the opportunities this around out product to the only at tax to it in our lead terms of as current this about some will lines, of in And we come both the it’s our out need What will point, I all as XXXX, will that doing our U.S. is how well tax, of in as capacity, our are

Samad Samana

we then a am a quarter some indirect in got and this lot of the frequently view some light differentiated how like Vertex around competitive I get in your frankly, pretty is we maybe give from differentiates environment with, especially environment, just some your And you you competitive maybe general is M&A changes content how still space. in and us in tax competitors? the if it question And Great. your with curious the even can of on

David DeStefano

Sure, Samad.

opportunities fundamental. with the one somebody When time on is where solution of is add we are teams we a couple we typically and focus that those sales go the and look can And starts moving forward, that’s longer is the our partner team things. opportunities the that’s those at sufficient. enough then see value and competitor no in that good we number what solution our it replacing, So, all fact really in-house in-house unearthing is

able our IT are on which team you sale, we both area move requires to working team being differentiate the the brings important in the reference tax large in working The as buyer. experience, team. skill through forward, our that’s that complex and that, as to base a with so our We Then brand sales partner enjoy brand, terms the of well tax years have integrations IP really XX underlying organizations, forward. jurisdictional in is and that going embedded the deep deepest content and content have you complex us database we And then there. suite win over for to for that all as have years, that to we gives partner large really the we the integrations penetration worked enjoy say we database, accumulated product that have the

And so how would It’s of still all just add matters we really win. combination And the approach the that’s lastly then hybrid greatly. that. I

While enterprise the sell the we and solution to for at important team that of an will the we having first in lead we meet at market. IT differentiator everything they still capability remains elements where cloud do, enterprises large on-premise still are

Samad Samana

one a Great. And as a just book what new quarter? percentage John, deals for quick cloud of the housekeeping was you in

John Schwab

in over last It’s quarter. Yes, new XX%. last just of was how with about the consistent deals, in the – was it terms cloud

Samad Samana

you quarter. again congrats solid on the and thank Great,

David DeStefano

bet. very much, Thanks You Samad.

Operator

Our question. next question comes Stifel. from your Brad Reback with proceed Please with

Brad Reback

Great, ‘XX line? the what into thanks bottom growth gets Thanks. as the of of beyond. come that you and to in percent accelerate fall left out left be definitely do and behind sales as the the efficiencies gets to the business reinvested with at look very you much. off about COVID line that and think How David, you versus will marketing we

David DeStefano

Yes, sure.

mid-market the Latin support in So, Europe to both overseas as strategy in to to into our opportunity intend time both over capacity sales with, we America. expand start and think is as around our there and to channel well I more

– some to efficiencies, to looking is into definitely of then you continue you our dollars to opportunity really that is R&D, noting we there the is. to our those are focus we additionally, So, where those as capacity expand for excess Europe, as But new put product which enhance footprint. in note want to for expand I the think great are

innovation, will am at that with We into And we the bringing at that continue XXXX co-design of innovation to by. and this I very and co-partner products we have got encouraged of a our look end year number be lastly, customers. then out

We tax could things some proof-of-concept interesting learning have machine some the lead developments that done with think categorization around and future. in to exciting recently some I a POC,

R&D where of – be to continue element big continues will we So, those to a dollars go.

Brad Reback

much. very Excellent. Thanks

David DeStefano

you, talking Good Yes. Brad. to

Operator

Group. comes Our JMP Walravens next proceed your question with Pat with from question. Please

Pat Walravens

many this I add Thank And my the investors this is Great. on-premise guys. deal? versus us hear business to sometimes work just over about what economics a reminder me play about let deal how still you you. Can remind investors at the congratulations, And about rate big you maybe out? And solutions, going should enterprises cloud how then in but these how definitely years transitioning think also need a to for cloud? non-premise

David DeStefano

the and So of part connect with first take let about John take I that to good second Pat and will the part the economic, you.

around So, tranche of us I first, new along who we are NRR think units. existing think are we our where them at footprint is about And the with our customers three it in to typically our existing – to the to into Again, Because are bringing we of receptivity are our cloud that’s pull XX% – we market the their – cloud logos. our what offering, customers. our new cloud cloud. come bringing reflective looking and and base expanding think trying distinct then I leave new in will see tranches, you XX% cloud I are we with first we there in think because logos first, leave we

sales let’s from tax. few ago to where to use and us bought VAT, want into consumer’s years they tax So, a expand add now want they say they

first. cloud lead will We

be into with operation, or the supporting an or our in we where got sometimes brick-and-mortar even the – mobile as strategy, may cloud on them offering. into that the they cloud are be with e-commerce unit that the premise, move stores could have existing with unit are strategy, it though go we they but to their then omni-channel we new we on-premise their And able will retain

the those to that on-premise probably piece XXX% then So, it and that’s customers – really and just is, how are you cloud slowest. existing are the last moving the moving them

it companies still breaks that XX% the the in just percentage footprint expanding much lower are the probably journey starting the existing of is into XX% their sort logos, that XX% So, moving new us and services for cloud. a that on-premise to of out in it’s existing their from then

John Schwab

– I shift an think billing. economics to them. that that have just on-prem year Yes, of let’s and around for to that on-prem and assume the that like. billings Pat, year that think for first year point of of around on that looks about follow-up example, we what your one we them $XXX,XXX. you given year for sort When comes In think at I beginning The applications as XX% a build are example one to tax going two, around roughly – year renewal the billing sales first in that

to price going is to to – and what that every thereafter our revenue going it’s subject be renewal that’s increases. be year your So

we about at little $XX,XXX at a year, to straight starts page think typically thereafter year at comes same every We about $XX,XXX think roughly and subject cloud also in $XX,XXX about the per one As and in year bit that across prices. differently. but cloud, it those we think

from the for opportunity companies point, been of shift those period to and sell they that a we we that’s coming – to see opportunity as ARR product buying but existing in there product existing be are more do a see on-prem suite that into that move those opportunities are have from there. for also your as time over, currently increase an us, So that decide to could that

kind shift it twofold view we as opportunity that happens. there as a So, of

Pat Walravens

thank helpful. Okay, you. That’s

John Schwab

much. very You bet. Thanks

Operator

Merwin Instructions] [Operator question Chris Please proceed. Sachs. with comes Goldman from Our next

Chris Merwin

Okay, thanks questions. my for very taking much

all particularly XX% out on logos. growth, new large on enterprise investing think new your drive on one think to I logo hand, called from the existing driving I your you very down I XX% from you focused market. sales within expansion And know of much hand, then other are customers. the customers,

new expansion this in So, in changing or split you new of business of that future? terms is going the and Thanks. between the see mix right the do forward, logos

David DeStefano

and question, good with good Chris Yes, to you. connect

expand logos. a continue channel we quarter, increase all one new space past the I the as certified this can BDO adding new with we whether we to expanded Acumatica get relationships, addressable in think into be as or it that integration, those in like

that it’s with the gets environment access to time, that certainly like would opportunities and new continue expand. continues relationship to complexity regulatory, And business cpa.com continues accelerate, that to so, technology out expect the us And that there exclusive over enjoy to we more between now, that is And logos. as relationship are demand I increasing.

space. new our And that so therefore market that distinguish prop increase the we prop our increase continue where value value of that in I at in greater, that will to to can think logos make upper end middle and to continue opportunity the,

Chris Merwin

wondering the you. of the and office transformation an solutions you obviously talk on migration Thanks. large more like and pipeline projects at looking looking this Thank to like they for a was of and a a standalone then transformation ARP seems basis And bit lots really or or cloud? to are follow-up, prioritizing broadly COVID about it their you within just as efforts tax the are if you your across system are digital I enterprises great. the bundle they Okay, bigger that CFO, can finding customers, spending category, accelerated priorities go automation through

David DeStefano

solution the ARP both system in work the cloud really House adoption, with enjoy will they Coupa, or procurement new doing. in a cloud, we are relationship I just certainly mean, system In or have procurement it and been like great in happens a adding like their which Yes, SAP we see with therefore no ways. what longer Ariba. They

moving Office And cloud that there CFO, S/X opportunities. going whatever is there from see will Oracle And growth the those the to there. of HANA so create are the transformations new then we larger obviously, or are will or on where infrastructure and

our Workday for like create to and well. transition opportunities as people Acumatica continue Additionally, with us relationships

niche unit, a a omni-channel it and be cloud where create with or us – So, or new business in a broad will that CFO. leader really either we across wholesale for be opportunity just strategy a of driving e-commerce a office see point business the as might within the might a our board change

Chris Merwin

you. Thank Great.

David DeStefano

you, Good to talking Chris.

Operator

Morgan comes your Our next question. Zlotsky Stan with Please from with Stanley. proceed question

Stan Zlotsky

so good much you. and guys. Thank Great Perfect. from morning, hear to you

David DeStefano

Stan. morning, Good

Stan Zlotsky

John, my in was right I XX%, end, wanted saw to growth comparison your in that QX? XX% plus cloud something, is clarify From that apples-to-apples you mentioned the believe we just the I

John Schwab

is over No, no, I at the want growth look the was to prior that think what year. you

saw that’s that growth XX% from QX. of That’s we seen amount QX That to plus the the there. year out in increase similar terms quarter are our from in cloud you cloud. of have It’s very same today. was growth we where that XX% So the in last

David DeStefano

would you total if it in XXXX, about could sales, so. end Stan, just or on about represented XX% build I that, think new in In cloud I if what probably tell of XXXX, a is, sales. we seeing the this we in XX%. just over XX%. leader crossed about saw It cloud year, our in over little sales cloud And are new now become new the be you

moving a of the into seeing So, cloud. we natural sales new are our progression

year to a from said ago. was think I quarter-over-quarter the John referring what just he comparison

Stan Zlotsky

Sorry one more. John, maybe just

that’s the quarter-on-quarter you a So in number or that year that QX this just mentioned growth XX% year-on-year a is number?

John Schwab

year-over-year, quarter That’s last year. same

Stan Zlotsky

in was year-on-year QX XX% then or quarter-on-quarter? a And

John Schwab

cloud how based. third new much came in, of in The quarter the XX% sales were that the is just

Stan Zlotsky

okay. Understood, it. Got

John Schwab

Yes, thank the you confusion, for Stan, asking. sorry for for you thank but

Stan Zlotsky

are you slightly maybe ERP That sense. us how joint a their infrastructure more it. working support with and just you then customers? lot more of high-level And a relationship could Oracle question, your remind to makes with guys Got

David DeStefano

Yes.

have provider to have payroll. – OEM we proud years, for an say we Oracle like been XX we of have the are their are partner we So

are a been now with cloud we revenue And have – partner We and since marketing the running first mid us and progression that are XXs in the sales and sales we for or in OCI tax their integration nice seeing with way their process. jointly them there. that early leading market their selected teams actually are on platform the the cloud-to-cloud they

Stan Zlotsky

much. so you Thank perfect. Okay,

David DeStefano

Dan. Thanks,

Operator

proceed. Please Suri with from question Blair. Bhavan next Our comes William

Bhavan Suri

echo me there for back maybe sort seeing there. solid the guys you accounting to these overall and let and the on you, office software sort congrats finance of the to all and of touch work etcetera. controller, Treasury, just gents ton tax, are quickly, David I really a is CFO, my provider, the start expand Hey, of want

As would love obviously about guys plan lots understand that’s convergence you How have How the there other of compliance, of how about etcetera? you got half think to there? because areas to think you a customers, of is around of happen starting horizontally? potentially think XXX sort maybe broadening about that into of of do sort to I Fortune do expansion, X-year but you about guys the Treasury, the grow, governance think space? sort you room

David DeStefano

appreciate are Yes, grow. to it. And you opportunity there is right,

customers, our goes our want might third look company, within continue we we a have are of Fortune us of to expand then in there just and what are we when diverse we engine where but there that And process up our half over natural operations footprint, footprint made our often the to may adjacencies are one about element divisions, rules XXX many look of we of we at, our just tax business way tax we of footprint indirect progression obvious They core their – indirect or their our continue existing beyond First business, those indirect lot gives to all, their and to business. things we think area. expand because you where times and actively many it’s as are end-to-end obvious have a at. a what that. of for know, time And expand sold certainly

Bhavan Suri

then announcements – guess wait tactically. And more let’s guess, will then. little time I touch a product for I I and over Great.

people am for there we ones bringing monetization are Vertex I maybe… metrics? So talked are bring for in sort are clear. you was How have people might people? the there is Hopefully about with should in the not Vertex deals, that not direct deals, Oracle, bring capabilities the I about of accounting partnerships like that where sales partnerships. with like symbiotic sure to partnerships there and the you They integrators, those Vertex? Are but compensated sales and and systems sales any bring compensation guys SAP partnerships are think actually might firms guys

David DeStefano

in directly understand sales sales I Vertex is your think question, OCI I are we being Oracle that platform opportunity If their new teams connected generate. the to their about are with excited the they

their development of benefit aligned. are I We longstanding sure bringing roadmap we went sales they enjoy they are with same provider for where are the reasons have here we them the obviously creating in the direct know them. with same the HANA and why the the partnership first on what there we relationship when their product done, with it for relationship in around we this team the don’t is in for SAP success. direct the at bringing economic So to particulars one our have don’t the obviously platform cloud It’s we but currently, have actively Waldorf SAP were make product U.S. but teams rewarded to do is, and a reason. we looked I

Bhavan Suri

super was questions, taking That Thanks it. Got for helpful. my gents.

David DeStefano

good to Bhavan. you, Yes, talking

Operator

comes question next Citi. Daniel Please Our with Jester from proceed.

Daniel Jester

Good my taking everyone. question. for Thanks Great. morning,

On called there. the in growth the remarks sort line, revenue strong you of services the out prepared

We several quarters for have seen growth now. strong there

improving translating guess, sort implementation, subscription of first that being to how how So, thinking of growth? sort driving I driven sort growth be that’s all, outsized implementation if and revenue? about this think by should of about then I over time of software as secondly, revenue And what’s

David DeStefano

the Dan, question. for connect and to good But, thanks

that’s jurisdictions. a returns who process outside accelerated components. growth, remit I to organization. can manage the certainly, the One move think and practice important is and our component And are looking actually dollars where have think with a departments send to I for all growing of looking COVID their our their what lot business. because services out us has tax and we And start two different we for that returns the customers and has outsourcing companies are they

continue in of remote team we they know, are cases, as we actually we think, customers fact the you customers that some addition, in I able then in them. are And working what working there. And servicing to to remote, good seen are growth the current environment, the services benefiting So, even is see are And from have our have services. implementation help are their they leveraging our our to gaps our teams now because remote. fill some services in for do

is be services growth our I a almost managed contract is say – the bundle, the to which the enjoy think we more two know our almost which revenue, from you nice it about practices strong distinct is you under you think recurring So, implementation services to driver. within a one growth really have and revenue it But as could and then ongoing continues as side.

Daniel Jester

would be where year Are are business, to on terms you you just third Got are new high or of improvement thought certainly you a where obviously quite of then like a it. we kind just ago, new back to that you. highlighted business And there, not guess quarter Thank in yet? the pre-COVID, levels you one, pre-COVID level trajectory? I we compared there

David DeStefano

in obviously predict, the hard COVID a wild thing because it’s equation. has a Yes, to been card

are revenue our mid-market what space. continue to across I the pleased as traction doing the get in think well channel as in we the overall, I am enterprise with we

further slowed they I a to I it accelerating think down think little lockdown. Europe, extreme but have really investment. But in from little had of would little, us been a an I more a like obviously hasn’t

piece So, of think I it. other the that’s

us I drivers complexity, and really position for complexity, tax for future. we planning growth be are our regulatory which third these technology I compounding want what fourth here and think a in and the make that we indirect complexity, R&D the fundamental are are getting with here us to business will acceleration we is of think to what be just spend quarter all in to the XXXX opportunity for with to where

Daniel Jester

Great. very Thanks much

David DeStefano

talking you, Good Dan. to

Operator

Thank call you. we end the turn the gentlemen, David and the session. closing for question-and-answer of DeStefano Ladies to like I would over to reached have comments. back

David DeStefano

In team of quarter solid am the across you. financial the summary, their company, Thank our proud strong which is third for reflected Vertex really performance. in I execution

this just you look and joining the We and time with to and again this connecting business, macroeconomic transact, changes global that We interest compounding we confidence taking focused regulatory Thank on growth technology hope spoke in the effect and helping remain uncertain for safe to in comply continue customers our and even ahead us in you soon. stay your environment. management. as and We place I creating about really on continue tax family significant forward rapid direct during in your Vertex see opportunities environments are again having and for today. grow call to healthy today’s

Operator

today’s concludes teleconference. This

at this thank a great your lines your and you disconnect for day. have may You time and participation

Vertex (VERX) 11 Nov 202020 Q3 Earnings call transcript