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Mar 31, 2021

SPS Commerce Q1 2021 Earnings Report

SPS Commerce delivered strong financial results, marked by revenue growth and strategic investments.

Key Takeaways

SPS Commerce reported a strong first quarter in 2021, achieving its 81st consecutive quarter of topline growth. Revenue increased by 21% compared to the first quarter of 2020, with recurring revenue growing by 18%. The company's net income also saw a rise, and ongoing investments have expanded the addressable market and strengthened competitive differentiation.

Revenue reached $90.1 million, a 21% increase year-over-year.

Recurring revenue grew by 18% compared to Q1 2020.

Net income was $10.2 million, or $0.28 per diluted share.

Non-GAAP net income per diluted share was $0.43.

Total Revenue
$90.1M
Previous year: $74.2M
+21.4%
EPS
$0.43
Previous year: $0.38
+13.2%
Gross Profit
$60.1M
Previous year: $50.6M
+18.7%
Cash and Equivalents
$169M
Previous year: $184M
-8.2%
Free Cash Flow
$18.3M
Previous year: $10.7M
+71.4%
Total Assets
$550M
Previous year: $440M
+25.0%

SPS Commerce

SPS Commerce

Forward Guidance

SPS Commerce anticipates continued growth in the second quarter of 2021, with revenue expected to be in the range of $90.5 million to $91.5 million. The company also provided guidance for net income per diluted share and non-GAAP net income per diluted share.

Positive Outlook

  • Second quarter revenue is expected to be in the range of $90.5 million to $91.5 million.
  • Second quarter net income per diluted share is expected to be in the range of $0.20 to $0.21.
  • Second quarter Non-GAAP net income per diluted share is expected to be in the range of $0.39 to $0.40.
  • Adjusted EBITDA is expected to be in the range of $24.8 million to $25.5 million.
  • Full year revenue is expected to be in the range of $371.1 million to $373.6 million, representing 19% to 20% growth over 2020.