SPS Commerce Q2 2020 Earnings Report
Key Takeaways
SPS Commerce reported revenue of $75.6 million for Q2 2020, a 10% increase from Q2 2019. Net income was $11.2 million, or $0.31 per diluted share, compared to $8.8 million, or $0.24 per diluted share in Q2 2019. Non-GAAP income per diluted share was $0.37, compared to $0.30 in Q2 2019.
Revenue for the second quarter of 2020 reached $75.6 million, reflecting a 10% increase compared to the same period in 2019.
Recurring revenue experienced substantial growth, increasing by 11% compared to the second quarter of 2019.
Net income for the second quarter of 2020 amounted to $11.2 million, translating to $0.31 per diluted share.
Non-GAAP income per diluted share was $0.37, compared to $0.30 in the second quarter of 2019.
SPS Commerce
SPS Commerce
SPS Commerce Revenue by Segment
Forward Guidance
For the third quarter of 2020, revenue is expected to be in the range of $76.6 million to $77.1 million. Third quarter net income per diluted share is expected to be in the range of $0.19 to $0.20. Non-GAAP income per diluted share is expected to be in the range of $0.32 to $0.33.
Positive Outlook
- Revenue is expected to be in the range of $76.6 million to $77.1 million.
- Net income per diluted share is expected to be in the range of $0.19 to $0.20.
- Non-GAAP income per diluted share is expected to be in the range of $0.32 to $0.33.
- Adjusted EBITDA is expected to be in the range of $20.5 million to $21.0 million.
- Full year revenue is expected to be in the range of $304.1 million to $305.3 million, representing approximately 9% growth over 2019.
Challenges Ahead
- The dynamics of the current situation continue to impact our business and we continue to monitor the uncertainty around the duration and magnitude of the pandemic.
- Taking into account the possibility of continued pressure on retailers.
- Prolonged store closures.
- Potential bankruptcies, all of which would negatively impact our business.
- Impact that a second wave of infections may have on economic activity.