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Sep 30, 2024

SPS Commerce Q3 2024 Earnings Report

SPS Commerce reported strong Q3 2024 financial results, marking the 95th consecutive quarter of topline growth.

Key Takeaways

SPS Commerce reported revenue of $163.7 million, a 21% increase year-over-year. Net income was $23.5 million, or $0.62 per diluted share, while non-GAAP income per diluted share was $0.92.

Revenue reached $163.7 million, reflecting 21% growth compared to Q3 2023.

Recurring revenue also grew by 21% year-over-year.

Net income increased to $23.5 million, or $0.62 per diluted share, up from $16.8 million, or $0.45 per diluted share in Q3 2023.

Non-GAAP income per diluted share rose to $0.92, compared to $0.75 in the same period last year.

Total Revenue
$164M
Previous year: $136M
+20.7%
EPS
$0.92
Previous year: $0.75
+22.7%
Gross Profit
$112M
Previous year: $90.1M
+24.3%
Cash and Equivalents
$199M
Previous year: $239M
-16.9%
Free Cash Flow
$48.1M
Previous year: $38.1M
+26.1%
Total Assets
$1B
Previous year: $787M
+27.4%

SPS Commerce

SPS Commerce

SPS Commerce Revenue by Segment

Forward Guidance

SPS Commerce expects revenue to be in the range of $168.5 million to $169.5 million, representing 16% to 17% year-over-year growth. Net income per diluted share is expected to be in the range of $0.46 to $0.47, and non-GAAP income per diluted share is expected to be in the range of $0.83 to $0.84.

Positive Outlook

  • Revenue is expected to grow 16% to 17% year-over-year.
  • Net income per diluted share is expected to be in the range of $0.46 to $0.47.
  • Non-GAAP income per diluted share is expected to be in the range of $0.83 to $0.84.
  • Adjusted EBITDA is expected to be in the range of $48.0 million to $48.7 million.
  • Company expects continued growth

Challenges Ahead

  • Significant known and unknown risks and uncertainties could cause actual results to vary materially.
  • The Company does not present a reconciliation of the forward-looking non-GAAP financial measures.
  • Non-cash, share-based compensation expense is expected to be $12.8 million.
  • Depreciation expense is expected to be $5.1 million.
  • Amortization expense is expected to be $7.2 million.