Sales tax software company Vertex ramped up spending this year, the company reported to the SEC. The figures are shown in the S-1 form filed as the company announced plans for an initial public offering.

 The number of shares and price for the offering have not yet been determined.

After a profitable 2019, Vertex sharply increased spending in the first quarter ended March 31. As a result of an 89-percent increase in operating expenses, the company reported a first-quarter loss or $28.1 million, compared to net income of $7.3 million for last year’s corresponding period. First-quarter revenue was $89.2 million, an increase of 19.6 percent from $74.6 million a year earlier.

For 2019, Vertex reported net income of $30.9 million, a turnaround from a loss of $6.1 million for 2018. Revenue for the most recently completed year was $321.5 million, up 18 percent from $274.2 million for 2018.

The offering will create Class A and Class B stock, the latter held by the founder’s family and their affiliates. Each Class A share is entitled to one vote while each Class B share is entitled to 10 votes per share and is convertible into one Class A share of common stock. The percentages each class will represent of total shareholding have not been established.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Monday, 06 July 2020
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