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Indirect tax software vendor Vertex saw a significant jump in cloud revenues for both the fourth quarter and year ended December 31. In its first full year as a publicly traded company, Vertex said fourth-quarter cloud revenue was up 70 percent year-over-year and 65 percent over 2019.

The company expects that growth to pull back to a “more normal” 35 percent increase for 2021. Vertex lost $78.9 million in the most recently ended year, compared to $31.5 million in net income for 2019. However, GAAP results last year reflected $147.9 million in stock-based compensation, a non-cash charge, last year. On a Non-GAAP basis, net income for 2020 was $47.9 million, down from $56.8 million the prior year. CFO John Schwab said Vertex remains committed to a hybrid motor. “We're not really pushing customers and accelerating customers to move over to the cloud,” he said during this week’s earnings webcast. He expects there will not be big jumps in the number of existing customers moving from on-premise systems. However, CEO David DeStefano noted “the overwhelming majority of our new logos are all cloud deals.”  The executive expects to make more acquisitions with the resources from last year’s IPO. Vertex will be looking to meet the demand of tax departments  for cross-border, customs and duties and other types of capabilities going forward.”

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