Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries SPS Commerce Reports First Quarter 2024 Financial Results By: SPS Commerce, Inc. via GlobeNewswire April 25, 2024 at 16:05 PM EDT Company delivers 93rd consecutive quarter of topline growth Revenue and recurring revenue growth of 19% year-over-year MINNEAPOLIS, April 25, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced financial results for the first quarter ended March 31, 2024. Financial Highlights First Quarter 2024 Financial Highlights Revenue was $149.6 million in the first quarter of 2024, compared to $125.9 million in the first quarter of 2023, reflecting 19% growth.Recurring revenue grew 19% from the first quarter of 2023.Net income was $18.0 million or $0.48 per diluted share, compared to net income of $15.3 million or $0.41 per diluted share in the first quarter of 2023.Non-GAAP income per diluted share was $0.86, compared to non-GAAP income per diluted share of $0.67 in the first quarter of 2023.Adjusted EBITDA for the first quarter of 2024 increased 20% to $44.4 million compared to the first quarter of 2023.Share repurchases in the first quarter of 2024 totaled $20 million. “SPS’ vast network and go-to-market strategy are unique differentiators of our business model, evidenced by our strong channel partnerships and longstanding customer relationships,” said Chad Collins, CEO of SPS Commerce. “Ongoing investments in supply chain management, coupled with SPS’ competitive position underscore our conviction in the growth opportunity ahead of us.” “SPS Commerce delivered a strong start to the year and the 93rd consecutive quarter of revenue growth,” said Kim Nelson, CFO of SPS Commerce. “As we capitalize on ongoing opportunities across our addressable markets, we continue to invest in our solutions and customer experience to strengthen our competitive position across the largest network of trading partners in the retail supply chain.” Guidance Second Quarter 2024 Guidance Revenue is expected to be in the range of $150.9 million to $151.7 million.Net income per diluted share is expected to be in the range of $0.45 to $0.46, with fully diluted weighted average shares outstanding of 37.9 million shares.Non-GAAP income per diluted share is expected to be in the range of $0.75 to $0.76.Adjusted EBITDA is expected to be in the range of $43.4 million to $44.1 million.Non-cash, share-based compensation expense is expected to be $11.7 million, depreciation expense is expected to be $4.7 million, and amortization expense is expected to be $4.6 million. Fiscal Year 2024 Guidance Revenue is expected to be in the range of $619.9 million to $621.9 million, representing 15% to 16% growth over 2023.Net income per diluted share is expected to be in the range of $1.99 to $2.02, with fully diluted weighted average shares outstanding of 37.9 million shares.Non-GAAP income per diluted share is expected to be in the range of $3.28 to $3.32.Adjusted EBITDA is expected to be in the range of $185.1 to $186.7 million, representing 17% to 18% growth over 2023.Non-cash, share-based compensation expense is expected to be $56.1 million, depreciation expense is expected to be $19.5 million, and amortization expense is expected to be $18.1 million. The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. Quarterly Conference Call To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q1 2024 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com. About SPS Commerce SPS Commerce is the world’s leading retail network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service and accessible experts so our customers can focus on what they do best. To date, more than 120,000 companies in retail, grocery, distribution, supply, and logistics have chosen SPS as their retail network. SPS has achieved 93 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com. SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries. SPS-F Use of Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations. Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release. Adjusted EBITDA Measures: Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from foreign currency on cash and investments held, investment income, and other adjustments as necessary for a fair presentation. Net income is the comparable GAAP measure of financial performance. Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue. Non-GAAP Income Per Share Measure: Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from foreign currency on cash and investments held, other adjustments as necessary for a fair presentation, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments. Forward-Looking Statements This press release may contain forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the second quarter and full year of 2024, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2023, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. SPS COMMERCE, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except shares) March 31,2024 December 31,2023ASSETS(unaudited) Current assets Cash and cash equivalents$234,637 $219,081 Short-term investments 56,174 56,359 Accounts receivable 55,724 50,160 Allowance for credit losses (3,589) (3,320)Accounts receivable, net 52,135 46,840 Deferred costs 63,647 62,403 Other assets 13,695 16,758 Total current assets 420,288 401,441 Property and equipment, net 34,971 36,043 Operating lease right-of-use assets 7,285 7,862 Goodwill 248,813 249,176 Intangible assets, net 99,289 107,344 Other assets Deferred costs, non-current 20,601 20,347 Deferred income tax assets 7,483 505 Other assets, non-current 1,117 1,126 Total assets$839,847 $823,844 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable$12,303 $7,420 Accrued compensation 32,990 41,588 Accrued expenses 10,744 8,014 Deferred revenue 73,701 69,187 Operating lease liabilities 4,478 4,460 Total current liabilities 134,216 130,669 Other liabilities Deferred revenue, non-current 6,473 6,930 Operating lease liabilities, non-current 8,425 9,569 Deferred income tax liabilities 7,536 8,972 Other liabilities, non-current 232 229 Total liabilities 156,882 156,369 Commitments and contingencies Stockholders' equity Common stock 39 39 Treasury stock (148,892) (128,892)Additional paid-in capital 557,998 537,061 Retained earnings 277,048 259,045 Accumulated other comprehensive gain (loss) (3,228) 222 Total stockholders’ equity 682,965 667,475 Total liabilities and stockholders’ equity$839,847 $823,844 SPS COMMERCE, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited; in thousands, except per share amounts) Three Months EndedMarch 31, 2024 2023Revenues$149,576 $125,868Cost of revenues 51,487 42,964Gross profit 98,089 82,904Operating expenses Sales and marketing 36,432 29,083Research and development 16,009 12,563General and administrative 25,907 20,677Amortization of intangible assets 4,338 3,851Total operating expenses 82,686 66,174Income from operations 15,403 16,730Other income, net 3,132 1,276Income before income taxes 18,535 18,006Income tax expense 532 2,717Net income$18,003 $15,289 Net income per share Basic$0.49 $0.42Diluted$0.48 $0.41 Weighted average common shares used to compute net income per share Basic 37,049 36,427Diluted 37,686 37,155 SPS COMMERCE, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited; in thousands) Three Months EndedMarch 31, 2024 2023 Cash flows from operating activities Net income$18,003 $15,289 Reconciliation of net income to net cash provided by operating activities Deferred income taxes (7,070) (5,147)Depreciation and amortization of property and equipment 4,694 4,626 Amortization of intangible assets 4,338 3,851 Provision for credit losses 1,408 1,206 Stock-based compensation 20,018 11,780 Other, net (431) 502 Changes in assets and liabilities Accounts receivable (6,759) (6,220)Deferred costs (1,651) (1,679)Other assets and liabilities 3,030 602 Accounts payable 5,098 (4,849)Accrued compensation (9,518) (4,417)Accrued expenses (674) 721 Deferred revenue 4,129 5,818 Operating leases (551) (452)Net cash provided by operating activities 34,064 21,631 Cash flows from investing activities Purchases of property and equipment (3,533) (5,261)Purchases of investments (44,412) (34,329)Maturities of investments 45,000 35,000 Net cash used in investing activities (2,945) (4,590)Cash flows from financing activities Repurchases of common stock (16,540) — Net proceeds from exercise of options to purchase common stock 1,260 2,184 Net proceeds from employee stock purchase plan activity 391 241 Net cash provided by (used in) financing activities (14,889) 2,425 Effect of foreign currency exchange rate changes (674) (55)Net increase in cash and cash equivalents 15,556 19,411 Cash and cash equivalents at beginning of period 219,081 162,893 Cash and cash equivalents at end of period$234,637 $182,304 SPS COMMERCE, INC.NON-GAAP RECONCILIATION(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)Adjusted EBITDA Three Months EndedMarch 31, 2024 2023 Net income$18,003 $15,289 Income tax expense 532 2,717 Depreciation and amortization of property and equipment 4,694 4,626 Amortization of intangible assets 4,338 3,851 Stock-based compensation expense 20,018 11,780 Realized gain from foreign currency on cash and investments held (304) (137)Investment income (2,879) (1,127)Adjusted EBITDA$44,402 $36,999 Adjusted EBITDA Margin Three Months EndedMarch 31, 2024 2023 Revenue$149,576 $125,868 Net income 18,003 15,289 Margin 12% 12% Adjusted EBITDA 44,402 36,999 Adjusted EBITDA Margin 30% 29% Non-GAAP Income per Share Three Months EndedMarch 31, 2024 2023 Net income$18,003 $15,289 Stock-based compensation expense 20,018 11,780 Amortization of intangible assets 4,338 3,851 Realized gain from foreign currency on cash and investments held (304) (137)Income tax effects of adjustments (9,554) (5,909)Non-GAAP income$32,501 $24,874 Shares used to compute net income and non-GAAP income per share Basic 37,049 36,427 Diluted 37,686 37,155 Net income per share, basic$0.49 $0.42 Non-GAAP adjustments to net income per share, basic 0.39 0.26 Non-GAAP income per share, basic$0.88 $0.68 Net income per share, diluted$0.48 $0.41 Non-GAAP adjustments to net income per share, diluted 0.38 0.26 Non-GAAP income per share, diluted$0.86 $0.67 Contact: Investor RelationsThe Blueshirt GroupIrmina Blaszczyk & Lisa LaukkanenSPSC@blueshirtgroup.com415-217-4962 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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SPS Commerce Reports First Quarter 2024 Financial Results By: SPS Commerce, Inc. via GlobeNewswire April 25, 2024 at 16:05 PM EDT Company delivers 93rd consecutive quarter of topline growth Revenue and recurring revenue growth of 19% year-over-year MINNEAPOLIS, April 25, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced financial results for the first quarter ended March 31, 2024. Financial Highlights First Quarter 2024 Financial Highlights Revenue was $149.6 million in the first quarter of 2024, compared to $125.9 million in the first quarter of 2023, reflecting 19% growth.Recurring revenue grew 19% from the first quarter of 2023.Net income was $18.0 million or $0.48 per diluted share, compared to net income of $15.3 million or $0.41 per diluted share in the first quarter of 2023.Non-GAAP income per diluted share was $0.86, compared to non-GAAP income per diluted share of $0.67 in the first quarter of 2023.Adjusted EBITDA for the first quarter of 2024 increased 20% to $44.4 million compared to the first quarter of 2023.Share repurchases in the first quarter of 2024 totaled $20 million. “SPS’ vast network and go-to-market strategy are unique differentiators of our business model, evidenced by our strong channel partnerships and longstanding customer relationships,” said Chad Collins, CEO of SPS Commerce. “Ongoing investments in supply chain management, coupled with SPS’ competitive position underscore our conviction in the growth opportunity ahead of us.” “SPS Commerce delivered a strong start to the year and the 93rd consecutive quarter of revenue growth,” said Kim Nelson, CFO of SPS Commerce. “As we capitalize on ongoing opportunities across our addressable markets, we continue to invest in our solutions and customer experience to strengthen our competitive position across the largest network of trading partners in the retail supply chain.” Guidance Second Quarter 2024 Guidance Revenue is expected to be in the range of $150.9 million to $151.7 million.Net income per diluted share is expected to be in the range of $0.45 to $0.46, with fully diluted weighted average shares outstanding of 37.9 million shares.Non-GAAP income per diluted share is expected to be in the range of $0.75 to $0.76.Adjusted EBITDA is expected to be in the range of $43.4 million to $44.1 million.Non-cash, share-based compensation expense is expected to be $11.7 million, depreciation expense is expected to be $4.7 million, and amortization expense is expected to be $4.6 million. Fiscal Year 2024 Guidance Revenue is expected to be in the range of $619.9 million to $621.9 million, representing 15% to 16% growth over 2023.Net income per diluted share is expected to be in the range of $1.99 to $2.02, with fully diluted weighted average shares outstanding of 37.9 million shares.Non-GAAP income per diluted share is expected to be in the range of $3.28 to $3.32.Adjusted EBITDA is expected to be in the range of $185.1 to $186.7 million, representing 17% to 18% growth over 2023.Non-cash, share-based compensation expense is expected to be $56.1 million, depreciation expense is expected to be $19.5 million, and amortization expense is expected to be $18.1 million. The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. Quarterly Conference Call To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q1 2024 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com. About SPS Commerce SPS Commerce is the world’s leading retail network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service and accessible experts so our customers can focus on what they do best. To date, more than 120,000 companies in retail, grocery, distribution, supply, and logistics have chosen SPS as their retail network. SPS has achieved 93 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com. SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries. SPS-F Use of Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations. Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release. Adjusted EBITDA Measures: Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from foreign currency on cash and investments held, investment income, and other adjustments as necessary for a fair presentation. Net income is the comparable GAAP measure of financial performance. Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue. Non-GAAP Income Per Share Measure: Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from foreign currency on cash and investments held, other adjustments as necessary for a fair presentation, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments. Forward-Looking Statements This press release may contain forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the second quarter and full year of 2024, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2023, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. SPS COMMERCE, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except shares) March 31,2024 December 31,2023ASSETS(unaudited) Current assets Cash and cash equivalents$234,637 $219,081 Short-term investments 56,174 56,359 Accounts receivable 55,724 50,160 Allowance for credit losses (3,589) (3,320)Accounts receivable, net 52,135 46,840 Deferred costs 63,647 62,403 Other assets 13,695 16,758 Total current assets 420,288 401,441 Property and equipment, net 34,971 36,043 Operating lease right-of-use assets 7,285 7,862 Goodwill 248,813 249,176 Intangible assets, net 99,289 107,344 Other assets Deferred costs, non-current 20,601 20,347 Deferred income tax assets 7,483 505 Other assets, non-current 1,117 1,126 Total assets$839,847 $823,844 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable$12,303 $7,420 Accrued compensation 32,990 41,588 Accrued expenses 10,744 8,014 Deferred revenue 73,701 69,187 Operating lease liabilities 4,478 4,460 Total current liabilities 134,216 130,669 Other liabilities Deferred revenue, non-current 6,473 6,930 Operating lease liabilities, non-current 8,425 9,569 Deferred income tax liabilities 7,536 8,972 Other liabilities, non-current 232 229 Total liabilities 156,882 156,369 Commitments and contingencies Stockholders' equity Common stock 39 39 Treasury stock (148,892) (128,892)Additional paid-in capital 557,998 537,061 Retained earnings 277,048 259,045 Accumulated other comprehensive gain (loss) (3,228) 222 Total stockholders’ equity 682,965 667,475 Total liabilities and stockholders’ equity$839,847 $823,844 SPS COMMERCE, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited; in thousands, except per share amounts) Three Months EndedMarch 31, 2024 2023Revenues$149,576 $125,868Cost of revenues 51,487 42,964Gross profit 98,089 82,904Operating expenses Sales and marketing 36,432 29,083Research and development 16,009 12,563General and administrative 25,907 20,677Amortization of intangible assets 4,338 3,851Total operating expenses 82,686 66,174Income from operations 15,403 16,730Other income, net 3,132 1,276Income before income taxes 18,535 18,006Income tax expense 532 2,717Net income$18,003 $15,289 Net income per share Basic$0.49 $0.42Diluted$0.48 $0.41 Weighted average common shares used to compute net income per share Basic 37,049 36,427Diluted 37,686 37,155 SPS COMMERCE, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited; in thousands) Three Months EndedMarch 31, 2024 2023 Cash flows from operating activities Net income$18,003 $15,289 Reconciliation of net income to net cash provided by operating activities Deferred income taxes (7,070) (5,147)Depreciation and amortization of property and equipment 4,694 4,626 Amortization of intangible assets 4,338 3,851 Provision for credit losses 1,408 1,206 Stock-based compensation 20,018 11,780 Other, net (431) 502 Changes in assets and liabilities Accounts receivable (6,759) (6,220)Deferred costs (1,651) (1,679)Other assets and liabilities 3,030 602 Accounts payable 5,098 (4,849)Accrued compensation (9,518) (4,417)Accrued expenses (674) 721 Deferred revenue 4,129 5,818 Operating leases (551) (452)Net cash provided by operating activities 34,064 21,631 Cash flows from investing activities Purchases of property and equipment (3,533) (5,261)Purchases of investments (44,412) (34,329)Maturities of investments 45,000 35,000 Net cash used in investing activities (2,945) (4,590)Cash flows from financing activities Repurchases of common stock (16,540) — Net proceeds from exercise of options to purchase common stock 1,260 2,184 Net proceeds from employee stock purchase plan activity 391 241 Net cash provided by (used in) financing activities (14,889) 2,425 Effect of foreign currency exchange rate changes (674) (55)Net increase in cash and cash equivalents 15,556 19,411 Cash and cash equivalents at beginning of period 219,081 162,893 Cash and cash equivalents at end of period$234,637 $182,304 SPS COMMERCE, INC.NON-GAAP RECONCILIATION(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)Adjusted EBITDA Three Months EndedMarch 31, 2024 2023 Net income$18,003 $15,289 Income tax expense 532 2,717 Depreciation and amortization of property and equipment 4,694 4,626 Amortization of intangible assets 4,338 3,851 Stock-based compensation expense 20,018 11,780 Realized gain from foreign currency on cash and investments held (304) (137)Investment income (2,879) (1,127)Adjusted EBITDA$44,402 $36,999 Adjusted EBITDA Margin Three Months EndedMarch 31, 2024 2023 Revenue$149,576 $125,868 Net income 18,003 15,289 Margin 12% 12% Adjusted EBITDA 44,402 36,999 Adjusted EBITDA Margin 30% 29% Non-GAAP Income per Share Three Months EndedMarch 31, 2024 2023 Net income$18,003 $15,289 Stock-based compensation expense 20,018 11,780 Amortization of intangible assets 4,338 3,851 Realized gain from foreign currency on cash and investments held (304) (137)Income tax effects of adjustments (9,554) (5,909)Non-GAAP income$32,501 $24,874 Shares used to compute net income and non-GAAP income per share Basic 37,049 36,427 Diluted 37,686 37,155 Net income per share, basic$0.49 $0.42 Non-GAAP adjustments to net income per share, basic 0.39 0.26 Non-GAAP income per share, basic$0.88 $0.68 Net income per share, diluted$0.48 $0.41 Non-GAAP adjustments to net income per share, diluted 0.38 0.26 Non-GAAP income per share, diluted$0.86 $0.67 Contact: Investor RelationsThe Blueshirt GroupIrmina Blaszczyk & Lisa LaukkanenSPSC@blueshirtgroup.com415-217-4962
Company delivers 93rd consecutive quarter of topline growth Revenue and recurring revenue growth of 19% year-over-year MINNEAPOLIS, April 25, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced financial results for the first quarter ended March 31, 2024. Financial Highlights First Quarter 2024 Financial Highlights Revenue was $149.6 million in the first quarter of 2024, compared to $125.9 million in the first quarter of 2023, reflecting 19% growth.Recurring revenue grew 19% from the first quarter of 2023.Net income was $18.0 million or $0.48 per diluted share, compared to net income of $15.3 million or $0.41 per diluted share in the first quarter of 2023.Non-GAAP income per diluted share was $0.86, compared to non-GAAP income per diluted share of $0.67 in the first quarter of 2023.Adjusted EBITDA for the first quarter of 2024 increased 20% to $44.4 million compared to the first quarter of 2023.Share repurchases in the first quarter of 2024 totaled $20 million. “SPS’ vast network and go-to-market strategy are unique differentiators of our business model, evidenced by our strong channel partnerships and longstanding customer relationships,” said Chad Collins, CEO of SPS Commerce. “Ongoing investments in supply chain management, coupled with SPS’ competitive position underscore our conviction in the growth opportunity ahead of us.” “SPS Commerce delivered a strong start to the year and the 93rd consecutive quarter of revenue growth,” said Kim Nelson, CFO of SPS Commerce. “As we capitalize on ongoing opportunities across our addressable markets, we continue to invest in our solutions and customer experience to strengthen our competitive position across the largest network of trading partners in the retail supply chain.” Guidance Second Quarter 2024 Guidance Revenue is expected to be in the range of $150.9 million to $151.7 million.Net income per diluted share is expected to be in the range of $0.45 to $0.46, with fully diluted weighted average shares outstanding of 37.9 million shares.Non-GAAP income per diluted share is expected to be in the range of $0.75 to $0.76.Adjusted EBITDA is expected to be in the range of $43.4 million to $44.1 million.Non-cash, share-based compensation expense is expected to be $11.7 million, depreciation expense is expected to be $4.7 million, and amortization expense is expected to be $4.6 million. Fiscal Year 2024 Guidance Revenue is expected to be in the range of $619.9 million to $621.9 million, representing 15% to 16% growth over 2023.Net income per diluted share is expected to be in the range of $1.99 to $2.02, with fully diluted weighted average shares outstanding of 37.9 million shares.Non-GAAP income per diluted share is expected to be in the range of $3.28 to $3.32.Adjusted EBITDA is expected to be in the range of $185.1 to $186.7 million, representing 17% to 18% growth over 2023.Non-cash, share-based compensation expense is expected to be $56.1 million, depreciation expense is expected to be $19.5 million, and amortization expense is expected to be $18.1 million. The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. Quarterly Conference Call To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q1 2024 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com. About SPS Commerce SPS Commerce is the world’s leading retail network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service and accessible experts so our customers can focus on what they do best. To date, more than 120,000 companies in retail, grocery, distribution, supply, and logistics have chosen SPS as their retail network. SPS has achieved 93 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com. SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries. SPS-F Use of Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations. Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release. Adjusted EBITDA Measures: Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from foreign currency on cash and investments held, investment income, and other adjustments as necessary for a fair presentation. Net income is the comparable GAAP measure of financial performance. Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue. Non-GAAP Income Per Share Measure: Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from foreign currency on cash and investments held, other adjustments as necessary for a fair presentation, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments. Forward-Looking Statements This press release may contain forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the second quarter and full year of 2024, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2023, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. SPS COMMERCE, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except shares) March 31,2024 December 31,2023ASSETS(unaudited) Current assets Cash and cash equivalents$234,637 $219,081 Short-term investments 56,174 56,359 Accounts receivable 55,724 50,160 Allowance for credit losses (3,589) (3,320)Accounts receivable, net 52,135 46,840 Deferred costs 63,647 62,403 Other assets 13,695 16,758 Total current assets 420,288 401,441 Property and equipment, net 34,971 36,043 Operating lease right-of-use assets 7,285 7,862 Goodwill 248,813 249,176 Intangible assets, net 99,289 107,344 Other assets Deferred costs, non-current 20,601 20,347 Deferred income tax assets 7,483 505 Other assets, non-current 1,117 1,126 Total assets$839,847 $823,844 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable$12,303 $7,420 Accrued compensation 32,990 41,588 Accrued expenses 10,744 8,014 Deferred revenue 73,701 69,187 Operating lease liabilities 4,478 4,460 Total current liabilities 134,216 130,669 Other liabilities Deferred revenue, non-current 6,473 6,930 Operating lease liabilities, non-current 8,425 9,569 Deferred income tax liabilities 7,536 8,972 Other liabilities, non-current 232 229 Total liabilities 156,882 156,369 Commitments and contingencies Stockholders' equity Common stock 39 39 Treasury stock (148,892) (128,892)Additional paid-in capital 557,998 537,061 Retained earnings 277,048 259,045 Accumulated other comprehensive gain (loss) (3,228) 222 Total stockholders’ equity 682,965 667,475 Total liabilities and stockholders’ equity$839,847 $823,844 SPS COMMERCE, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited; in thousands, except per share amounts) Three Months EndedMarch 31, 2024 2023Revenues$149,576 $125,868Cost of revenues 51,487 42,964Gross profit 98,089 82,904Operating expenses Sales and marketing 36,432 29,083Research and development 16,009 12,563General and administrative 25,907 20,677Amortization of intangible assets 4,338 3,851Total operating expenses 82,686 66,174Income from operations 15,403 16,730Other income, net 3,132 1,276Income before income taxes 18,535 18,006Income tax expense 532 2,717Net income$18,003 $15,289 Net income per share Basic$0.49 $0.42Diluted$0.48 $0.41 Weighted average common shares used to compute net income per share Basic 37,049 36,427Diluted 37,686 37,155 SPS COMMERCE, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited; in thousands) Three Months EndedMarch 31, 2024 2023 Cash flows from operating activities Net income$18,003 $15,289 Reconciliation of net income to net cash provided by operating activities Deferred income taxes (7,070) (5,147)Depreciation and amortization of property and equipment 4,694 4,626 Amortization of intangible assets 4,338 3,851 Provision for credit losses 1,408 1,206 Stock-based compensation 20,018 11,780 Other, net (431) 502 Changes in assets and liabilities Accounts receivable (6,759) (6,220)Deferred costs (1,651) (1,679)Other assets and liabilities 3,030 602 Accounts payable 5,098 (4,849)Accrued compensation (9,518) (4,417)Accrued expenses (674) 721 Deferred revenue 4,129 5,818 Operating leases (551) (452)Net cash provided by operating activities 34,064 21,631 Cash flows from investing activities Purchases of property and equipment (3,533) (5,261)Purchases of investments (44,412) (34,329)Maturities of investments 45,000 35,000 Net cash used in investing activities (2,945) (4,590)Cash flows from financing activities Repurchases of common stock (16,540) — Net proceeds from exercise of options to purchase common stock 1,260 2,184 Net proceeds from employee stock purchase plan activity 391 241 Net cash provided by (used in) financing activities (14,889) 2,425 Effect of foreign currency exchange rate changes (674) (55)Net increase in cash and cash equivalents 15,556 19,411 Cash and cash equivalents at beginning of period 219,081 162,893 Cash and cash equivalents at end of period$234,637 $182,304 SPS COMMERCE, INC.NON-GAAP RECONCILIATION(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)Adjusted EBITDA Three Months EndedMarch 31, 2024 2023 Net income$18,003 $15,289 Income tax expense 532 2,717 Depreciation and amortization of property and equipment 4,694 4,626 Amortization of intangible assets 4,338 3,851 Stock-based compensation expense 20,018 11,780 Realized gain from foreign currency on cash and investments held (304) (137)Investment income (2,879) (1,127)Adjusted EBITDA$44,402 $36,999 Adjusted EBITDA Margin Three Months EndedMarch 31, 2024 2023 Revenue$149,576 $125,868 Net income 18,003 15,289 Margin 12% 12% Adjusted EBITDA 44,402 36,999 Adjusted EBITDA Margin 30% 29% Non-GAAP Income per Share Three Months EndedMarch 31, 2024 2023 Net income$18,003 $15,289 Stock-based compensation expense 20,018 11,780 Amortization of intangible assets 4,338 3,851 Realized gain from foreign currency on cash and investments held (304) (137)Income tax effects of adjustments (9,554) (5,909)Non-GAAP income$32,501 $24,874 Shares used to compute net income and non-GAAP income per share Basic 37,049 36,427 Diluted 37,686 37,155 Net income per share, basic$0.49 $0.42 Non-GAAP adjustments to net income per share, basic 0.39 0.26 Non-GAAP income per share, basic$0.88 $0.68 Net income per share, diluted$0.48 $0.41 Non-GAAP adjustments to net income per share, diluted 0.38 0.26 Non-GAAP income per share, diluted$0.86 $0.67 Contact: Investor RelationsThe Blueshirt GroupIrmina Blaszczyk & Lisa LaukkanenSPSC@blueshirtgroup.com415-217-4962