In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. SPS Commerce (SPSC) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. While there are numerous reasons why the stock of this provider of supply chain software services to businesses is a great growth pick right now, we have hig ...

Company Overview - SPS Commerce, Inc. (NASDAQ:SPSC) reported Q2 2024 financial results, surpassing revenue and earnings consensus estimates [2] - The company operates in the supply chain software market, focusing on the supply chain process for retailers [3] - SPS Commerce's primary revenue source is its fulfillment software system [3] Financial Performance - Over the trailing twelve months, free cash flow was $121.5 million, with capital expenditures at $18.6 million [16] - The company ended the quarter with $271.8 million in cash and equivalents, and no debt [29] - Earnings per share (diluted) have trended higher in recent quarters due to improving revenue growth [27] Market Insights - The supply chain management software market was valued at $27.2 billion in 2022 and is projected to reach $85.3 billion by 2033, representing a CAGR of 11.1% [4] - The growth is driven by the need for higher supply chain visibility, exacerbated by disruptions from the COVID-19 pandemic and geopolitical events [4] Competitive Landscape - Major competitors in the industry include Manhattan Associates, Epicor Software, and JDA Software Group [10] - Compared to Manhattan Associates, SPS Commerce shows a lower forward EV/Sales multiple of 12.0x against a median of 15.1x for its peers [17] Investment Outlook - The company announced a $100 million stock repurchase program, effective August 23, 2024, indicating confidence in its cash flow [18] - Despite showing revenue growth strength, concerns exist regarding the valuation of SPSC, especially as its revenue growth appears to be declining [35] - The market is valuing SPSC at a forward EV/Sales multiple of approximately 12.0x, with an estimated NTM revenue growth rate of 16.7% [18]

Revenue and recurring revenue growth of 18% year-over-year Financial Highlights "As the retail industry continues to evolve, SPS is uniquely positioned to help suppliers, large and small, digitize their trading partner connections to achieve efficiencies and scalability," said Chad Collins, CEO of SPS Commerce. "The mission-critical nature of our solutions fuels consistent demand for our product portfolio, and we remain confident in the growth opportunity ahead of us as e-commerce and omnichannel retail con ...

SPS Commerce, Inc. (NASDAQ:SPSC) Q2 2024 Earnings Conference Call July 25, 2024 4:30 PM ET Company Participants Irmina Blaszczyk - Investor Relations Chad Collins - Chief Executive Officer Kimberly Nelson - Executive Vice President & Chief Financial Officer Conference Call Participants Scott Berg - Needham Dylan Becker - William Blair Jeff Van Rhee - Craig-Hallum Mark Schappel - Loop Capital Markets George Kurosawa - Citi Joseph Vruwink - Baird Operator Good day and welcome to the SPS Commerce Second Quarte ...

SPS Commerce (SPSC) came out with quarterly earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. SPS Commerce, which belongs to the Zacks Business - Services industry, posted revenues of $153.6 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.05%. This compares to year-ago revenues of $130.42 million. The company has topped consens ...

Revenue Growth - Revenue increased by 18% to $153.6 million in Q2 2024 compared to $130.4 million in Q2 2023, driven by a 5% increase in recurring revenue customers to 44,950 and a 13% increase in wallet share to $12,850[120][131] - Recurring revenue customers increased by 5% to 44,950 in Q2 2024, with 1,000 customers added from the TIE Kinetix acquisition and 50 from the Traverse Systems acquisition[120][131] - Wallet share increased by 13% to $12,850 in Q2 2024, driven by higher product usage among recurring revenue customers[120][131] - Recurring revenues accounted for 94% of total revenues in the six months ended June 30, 2024, up from 93% in the same period in 2023[131] Profitability - Net income rose by 23% to $18.0 million in Q2 2024 from $14.7 million in Q2 2023, with income from operations increasing by 36% to $23.2 million[120] - Adjusted EBITDA grew by 16% to $44.2 million in Q2 2024 compared to $38.2 million in Q2 2023[126] - Adjusted EBITDA for the six months ended June 30, 2024, increased to $88.6 million from $75.2 million in the same period in 2023[133] Cost and Expense Analysis - Cost of revenues increased by 17% to $52.0 million in Q2 2024, primarily due to a $4.7 million rise in personnel-related costs[122] - Research and development expenses grew by 8% to $14.4 million in Q2 2024, mainly due to a $1.5 million increase in personnel-related costs[123] Tax and Financial Impact - Income tax expense increased significantly to $9.2 million in Q2 2024 from $4.2 million in Q2 2023, driven by higher pre-tax income and reduced deductible benefits[125]

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. Other adjustments included the expense impact from disposals of certain capitalized internally developed software. Net income is the comparable GAAP measure of financial performance. Fiscal Year 2024 Guidance • Rev ...

Revenue and recurring revenue growth of 18% year-over-year MINNEAPOLIS, July 25, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Financial Highlights "As the retail industry continues to evolve, SPS is uniquely positioned to help suppliers, large and small, digitize their trading partner connections to achieve efficiencies and scalability," said Chad C ...

MINNEAPOLIS, July 11, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced that it will issue its financial results for the second quarter ended June 30, 2024, after the market close on Thursday, July 25, 2024. SPS Commerce will host a call to discuss the results at 3:30 p.m. Central Time (4:30 p.m. Eastern Time) on the same day. To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior ...

Company Overview - SPS Commerce, Inc. is a leader in retail supply chain cloud services, connecting trading partners globally to optimize supply chain operations for retail partners [2] - The company has over 120,000 customers in sectors including retail, grocery, distribution, supply, and logistics [2] - SPS Commerce has achieved 93 consecutive quarters of revenue growth, indicating strong financial performance [2] Upcoming Events - Management will present at the William Blair 44th Annual Growth Stock Conference on June 5, 2024, at 1:20 PM C.T. [1] - A webcast of the presentation will be available on the company's investor relations website [1]