SPS Commerce Q4 2024 Earnings Report

Key Takeaways

SPS Commerce reported an 18% increase in revenue for Q4 2024, reaching $170.9 million. Recurring revenue saw a 19% year-over-year growth. Net income declined to $17.6 million ($0.46 per diluted share) from $19.0 million ($0.51 per share) in Q4 2023. However, non-GAAP EPS increased to $0.89 from $0.75. Adjusted EBITDA rose by 18% to $49.6 million.

Total Revenue

$171M

Previous year: $145M

+17.9%

EPS

$0.89

Previous year: $0.75

+18.7%

ARR per Customer

$163M

Recurring Revenue Customers

45K

Gross Profit

$107M

Previous year: $90.9M

+18.2%

Cash and Equivalents

$241M

Previous year: $275M

-12.5%

Free Cash Flow

$34.3M

Previous year: $28.5M

+20.6%

Total Assets

$1.03B

Previous year: $824M

+25.2%

SPS Commerce Revenue

SPS Commerce EPS

SPS Commerce Revenue by Segment

Forward Guidance

SPS Commerce expects revenue growth between 19% and 20% in Q1 FY25, with non-GAAP EPS projected between $0.82 and $0.84. Adjusted EBITDA is anticipated to range from $49.5 million to $50.5 million.

Positive Outlook

Expected revenue growth of 19% to 20% for Q1 FY25.
Projected non-GAAP EPS between $0.82 and $0.84.
Strong recurring revenue trends continue.
Maintained a high customer retention rate.
Adjusted EBITDA projected to increase further.

Challenges Ahead

GAAP net income projected to decline slightly in Q1 FY25.
Stock-based compensation expected to remain high.
Amortization and depreciation costs increasing.
Foreign exchange fluctuations may impact financials.
Acquisition-related costs could affect short-term profitability.