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Dec 31, 2023

SPS Commerce Q4 2023 Earnings Report

SPS Commerce reported strong results driven by continued expansion of their network and key role in retailers' and suppliers' omnichannel transformation.

Key Takeaways

SPS Commerce reported Q4 2023 revenue of $145.0 million, a 19% increase compared to Q4 2022. Net income was $19.0 million, or $0.51 per diluted share, compared to $15.9 million, or $0.43 per diluted share in the prior year. Non-GAAP income per diluted share was $0.75, compared to $0.63 in Q4 2022.

Revenue was $145.0 million, reflecting 19% growth compared to the fourth quarter of 2022.

Recurring revenue grew 19% from the fourth quarter of 2022.

Net income was $19.0 million or $0.51 per diluted share, compared to net income of $15.9 million or $0.43 per diluted share in the fourth quarter of 2022.

Non-GAAP income per diluted share was $0.75, compared to non-GAAP income per diluted share of $0.63 in the fourth quarter of 2022.

Total Revenue
$145M
Previous year: $122M
+18.8%
EPS
$0.75
Previous year: $0.63
+19.0%
Gross Profit
$95.9M
Previous year: $80.5M
+19.2%
Cash and Equivalents
$219M
Previous year: $163M
+34.5%
Free Cash Flow
$28.5M
Previous year: $17.6M
+62.0%
Total Assets
$824M
Previous year: $673M
+22.4%

SPS Commerce

SPS Commerce

SPS Commerce Revenue by Segment

Forward Guidance

SPS Commerce anticipates revenue in the range of $145.9 million to $146.7 million for Q1 2024. Net income per diluted share is expected to be in the range of $0.26 to $0.27, and non-GAAP income per diluted share is expected to be in the range of $0.72 to $0.73.

Positive Outlook

  • Revenue is expected to be in the range of $145.9 million to $146.7 million.
  • Net income per diluted share is expected to be in the range of $0.26 to $0.27.
  • Non-GAAP income per diluted share is expected to be in the range of $0.72 to $0.73.
  • Adjusted EBITDA is expected to be in the range of $42.1 million to $42.7 million.
  • Revenue is expected to be in the range of $616.5 million to $619.0 million, representing 15% growth over 2022.

Challenges Ahead

  • Non-cash, share-based compensation expense is expected to be $20.1 million.
  • Depreciation expense is expected to be $4.7 million.
  • Amortization expense is expected to be $4.7 million.
  • Net income per diluted share is expected to be in the range of $1.75 to $1.78.
  • Non-GAAP income per diluted share is expected to be in the range of $3.11 to $3.13.