While Rubrik grew sales by 55% in the last quarter, it trades at 79 times free cash flow (FCF), and is still distributing an immense volume of stock-based compensation, so interested investors should build their stakes in it over time in small batches.The company has become the No. 1 player in this niche, holding a "leader" designation from research firm Gartner. It also has earned an incredible +80 Net Promoter Score from its customers, which ranks it among the top 1% of enterprise software companies.Integ ...

Core Viewpoint - Shares of SPS Commerce have declined by 24% following the release of third-quarter earnings, which, despite showing a 16% increase in sales and a 23% rise in adjusted earnings per share, did not meet Wall Street's revenue expectations [1][6] Financial Performance - SPS Commerce reported a 16% increase in sales and a 23% rise in adjusted earnings per share for the third quarter [1] - The company has achieved 99 consecutive quarters of top-line growth [4] Market Reaction - The market reacted negatively to the earnings report due to sales falling short of analysts' expectations [6] - The stock is currently trading at 21 times free cash flow, close to its all-time low valuation, and is down 63% from its all-time high [5][6] Future Guidance - Management has projected organic sales growth of only 7% to 8% for 2026, which is significantly lower than the 18% annualized revenue growth rate observed over the past five years [2] Competitive Position - SPS Commerce is recognized as the leading provider in cloud-based supply chain services for retailers, third-party logistics providers, and suppliers [3] - The company emphasizes its broad adoption and unique value proposition in AI-driven data use cases [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - SPS Commerce reported mixed third-quarter financial results, with earnings per share of $1.13 exceeding the analyst consensus estimate of $1.00, while quarterly sales of $189.904 million fell short of the expected $191.797 million [1] - The company issued fourth-quarter guidance for adjusted EPS between $0.98 and $1.02, below market estimates of $1.05, and projected sales of $192.700 million to $194.700 million, compared to expectations of $199.897 million [2] - SPS Commerce has cut its FY25 sales guidance below estimates, indicating potential challenges ahead [1] Company Performance - The CEO of SPS Commerce highlighted the ongoing prioritization of collaboration and automation among retailers and trading partners, despite global trade and economic uncertainties [3] - The company's shares experienced a decline of 1.2%, closing at $103.89 [3] Analyst Reactions - Following the earnings announcement, analysts adjusted their price targets for SPS Commerce, with Needham maintaining a Buy rating but lowering the target from $160 to $110 [6] - Stifel downgraded SPS Commerce from Buy to Hold, reducing the price target from $150 to $80 [6] - Cantor Fitzgerald downgraded the stock from Overweight to Neutral, lowering the price target from $135 to $80 [6]

SPS Commerce (SPSC) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +14.14%. A quarter ago, it was expected that this provider of supply chain software services to businesses would post earnings of $0.9 per share when it actually produced earnings of $1, delivering a surprise of +11.1 ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $189.9 million, representing a 16% increase year-over-year, marking the 99th consecutive quarter of revenue growth [12] - Recurring revenue grew 18% year-over-year, with approximately 54,950 recurring revenue customers, an increase of 450 from the previous quarter [12] - Adjusted EBITDA increased 25% to $60.5 million compared to $48.4 million in Q3 of the previous year [12] - Total cash and investments at the end of the quarter were $134 million, with a share repurchase of $30 million [12] Business Line Data and Key Metrics Changes - The fulfillment business grew 20% year-over-year, while revenue recovery was approximately $3 million below expectations due to seasonality and changes in Amazon's inventory policy [4][5] - The company completed its combined go-to-market strategy ahead of schedule, positioning itself to unlock the potential of the revenue recovery product category [5] Market Data and Key Metrics Changes - The company reported a net increase of 450 customers in Q3, driven by strong retail relationship management programs [4] - The revenue recovery business represents a $750 million addressable market across 1P U.S. sellers, indicating significant cross-selling opportunities [5] Company Strategy and Development Direction - SPS Commerce aims to capitalize on long-term growth opportunities driven by an evolving retail ecosystem, with strategic acquisitions made over the past two years to expand its product portfolio [6][7] - The company is focused on enhancing trading partner collaboration to improve supply chain efficiencies, positioning itself as the industry's most broadly adopted retail cloud services platform [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty and spend scrutiny affecting customer groups, but remains optimistic about the evolving retail ecosystem driving supply chain efficiencies [9] - For Q4 2025, the company expects revenue in the range of $192.7 million to $194.7 million, representing approximately 13% to 14% year-over-year growth [14] Other Important Information - Dan Juknis, the Chief Revenue Officer, will retire at the end of the year, with Eduardo Rossini joining as Chief Commercial Officer to enhance customer relationships and lifecycle management [10][11] Q&A Session Summary Question: Insights on revenue recovery seasonality and impact on fiscal 2026 guidance - Management noted that visibility on shipment volumes into Amazon warehouses became apparent late in Q3, leading to lower-than-expected revenue recovery [20] - The impact of revenue recovery on Q4 guidance was similar to Q3, with ongoing invoice scrutiny and delayed purchases also affecting revenue [21][22] Question: Expectations for the new Chief Commercial Officer - The new CCO is expected to refine the go-to-market strategy and enhance cross-selling opportunities, leveraging his experience with mid-market ERPs [24][25] Question: Impact of invoice scrutiny on customer spending - Management indicated that spend scrutiny is primarily driven by suppliers absorbing costs and seeking cost savings, affecting customer sentiment [44] Question: Performance comparison between SupplyPike and Carbon6 - Management expressed confidence in the long-term potential of the revenue recovery opportunity, with strong interest from fulfillment customers [46] Question: Initial guidance for 2026 and macro environment assumptions - The initial guidance reflects current dynamics, with optimism for business opportunities in 2026 despite challenges faced in 2025 [50] Question: Customer acquisition and churn rates - The company reported a net increase of 1,100 customers in the first three quarters, with expectations for flat to slightly down net customer adds in Q4 due to timing [58]

Financial Position - As of September 30, 2025, the company reported cash and cash equivalents of $133.7 million and net accounts receivable of $67.4 million[91]. - Total contractual obligations as of September 30, 2025, amounted to $27.6 million, with $19.6 million due within one year[96]. - The company believes its cash and cash flows will be sufficient to meet working capital and capital expenditure requirements for at least the next twelve months[98]. Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $132.9 million, an increase from $116.8 million in the same period of 2024[92]. - There were no changes in critical accounting policies or estimates during the nine months ended September 30, 2025[90]. Investing Activities - The company used $161.5 million in investing activities during the nine months ended September 30, 2025, compared to $110.2 million in 2024[92]. Financing Activities - Cash used in financing activities increased to $80.2 million in the nine months ended September 30, 2025, primarily due to a $52.0 million increase in share repurchases year-over-year[95]. Revenue Metrics - The company defines recurring revenue as active contracts during the reporting period, excluding non-recurring components[82]. - Annual Revenue Per User (ARPU) is calculated by dividing annualized recurring revenues by the average number of recurring revenue customers[84]. Growth Strategy - The company plans to continue growing by penetrating the supply chain management market and selectively pursuing acquisitions[81].

Exhibit 99 Contact: Investor Relations The Blueshirt Group Irmina Blaszczyk & Lisa Laukkanen SPSC@blueshirtgroup.com 415-217-4962 SPS Commerce Reports Third Quarter 2025 Financial Results Company delivers 99th consecutive quarter of topline growth Third quarter 2025 revenue grew 16% and recurring revenue grew 18% from the third quarter of 2024 Appoints new Chief Commercial Officer as longtime Chief Revenue Officer intends to retire Announces new Share Repurchase Program MINNEAPOLIS, October 30, 2025 (GLOBE ...

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