[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's total assets increased to $1.11 billion, primarily driven by acquisitions which boosted goodwill and intangible assets. Revenue for the first quarter of 2025 grew 21% year-over-year to $181.5 million, resulting in a net income of $22.2 million. Cash flow from operations was strong at $40.0 million, though overall cash decreased due to significant investment in business acquisitions and share repurchases [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $1.11 billion, an increase from $1.03 billion at year-end 2024. This growth was primarily fueled by a significant rise in goodwill to $533.9 million and net intangible assets to $252.3 million, resulting from recent acquisitions. Cash and cash equivalents decreased substantially from $241.0 million to $94.9 million, reflecting cash used for investing and financing activities. Total liabilities increased slightly to $188.1 million, while total stockholders' equity grew to $920.9 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $94,921 | $241,017 | | Accounts receivable, net | $63,390 | $52,035 | | Goodwill | $533,940 | $399,180 | | Intangible assets, net | $252,280 | $181,294 | | **Total assets** | **$1,109,050** | **$1,031,230** | | Total current liabilities | $153,424 | $146,684 | | **Total liabilities** | **$188,129** | **$176,540** | | **Total stockholders' equity** | **$920,921** | **$854,690** | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the three months ended March 31, 2025, revenues increased by 21.4% to $181.5 million compared to the same period in 2024. Gross profit rose 27.1% to $124.6 million. Net income grew 23.3% to $22.2 million, with diluted earnings per share (EPS) increasing to $0.58 from $0.48 year-over-year Q1 2025 vs. Q1 2024 Performance (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $181,549 | $149,576 | +21.4% | | Gross Profit | $124,635 | $98,089 | +27.1% | | Income from operations | $25,956 | $15,403 | +68.5% | | Net income | $22,196 | $18,003 | +23.3% | | Diluted EPS | $0.58 | $0.48 | +20.8% | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased from $854.7 million at the end of 2024 to $920.9 million as of March 31, 2025. The increase was primarily driven by $22.2 million in net income and $13.1 million in stock-based compensation. This was partially offset by $40.0 million in common stock repurchases. Additionally, treasury stock was used as part of an acquisition consideration - Key activities impacting stockholders' equity in Q1 2025 included net income of **$22.2 million**, stock repurchases of **$40.0 million**, and the reissuance of treasury stock valued at **$37.7 million** for an acquisition[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash provided by operating activities was $40.0 million, an increase from $34.1 million in Q1 2024. Investing activities used $147.8 million, primarily due to a $141.6 million business acquisition. Financing activities used $39.0 million, largely for $40.0 million in stock repurchases. These activities resulted in a net decrease in cash and cash equivalents of $146.1 million, ending the period with $94.9 million Summary of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,983 | $34,064 | | Net cash used in investing activities | ($147,786) | ($2,945) | | Net cash used in financing activities | ($38,954) | ($14,889) | | **Net decrease in cash** | **($146,096)** | **$15,556** | | **Cash at end of period** | **$94,921** | **$234,637** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant financial events, including two major business acquisitions (Carbon6 and SupplyPike) that substantially increased goodwill and intangible assets. Revenue is primarily recurring (95%) and domestic (85%). The company actively repurchased shares and managed its stock-based compensation plans. EPS calculations and other financial details are also elaborated [Note B – Business Acquisitions](index=8&type=section&id=Note%20B%20%E2%80%93%20Business%20Acquisitions) SPS Commerce acquired Carbon6 Technologies, Inc. in February 2025 for a total consideration of $209.3 million, comprising $141.6 million in cash and $67.7 million in stock. This acquisition added approximately $129.6 million to goodwill. The company also finalized the purchase accounting for the July 2024 acquisition of SupplyPike, which had a total consideration of $205.8 million and added $138.1 million to goodwill - On February 4, 2025, the company acquired Carbon6 for **$209.3 million**, consisting of **$141.6 million** in cash and **378,100 shares** of SPS common stock valued at **$67.7 million**[30](index=30&type=chunk) - The acquisition of SupplyPike in July 2024 for **$205.8 million** was finalized, with goodwill determined to be **$138.1 million**[35](index=35&type=chunk)[38](index=38&type=chunk) Unaudited Pro Forma Financial Information (in thousands) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $185,730 | $158,120 | | Net income | $28,382 | $13,111 | [Note C – Revenue](index=11&type=section&id=Note%20C%20%E2%80%93%20Revenue) Total revenue for Q1 2025 was $181.5 million. Recurring revenues accounted for 95% of the total at $172.3 million, a 23% increase from Q1 2024. Fulfillment services remain the largest revenue stream at $152.6 million. Geographically, 85% of revenue was generated from customers within the United States Revenue by Product Type (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Recurring revenues:** | | | | Fulfillment | $152,631 | $121,853 | | Analytics | $13,702 | $14,014 | | Other | $5,996 | $3,817 | | **Total Recurring** | **$172,329** | **$139,684** | | One-time revenues | $9,220 | $9,892 | | **Total revenue** | **$181,549** | **$149,576** | - Domestic revenue (U.S.) constituted **85%** of total revenue in Q1 2025, up from **83%** in Q1 2024[40](index=40&type=chunk) [Note H – Goodwill and Intangible Assets, Net](index=14&type=section&id=Note%20H%20%E2%80%93%20Goodwill%20and%20Intangible%20Assets%2C%20Net) Goodwill increased to $533.9 million as of March 31, 2025, from $399.2 million at year-end 2024. The increase is primarily due to a $129.6 million addition from a business acquisition and a $3.9 million remeasurement from a prior acquisition. Net intangible assets, mainly subscriber relationships and developed technology, grew to $252.3 million with a weighted average remaining amortization period of 7.1 years - Goodwill increased by **$134.8 million** during the quarter, primarily from business acquisitions[56](index=56&type=chunk) - Net intangible assets increased to **$252.3 million** from **$181.3 million** at the end of 2024, with future amortization expense for the remainder of 2025 estimated at **$29.5 million**[57](index=57&type=chunk)[58](index=58&type=chunk) [Note J – Stockholders' Equity](index=16&type=section&id=Note%20J%20%E2%80%93%20Stockholders%27%20Equity) The company continued its share repurchase activity, buying back 281,001 shares for $40.0 million in Q1 2025 under its 2024 program. As of March 31, 2025, $60.0 million remained available for future repurchases under this program, which expires in July 2026. Additionally, 378,100 treasury shares were re-issued as part of the Carbon6 acquisition Share Repurchase Activity - Q1 2025 | Metric | Value | | :--- | :--- | | Number of shares repurchased | 281,001 | | Total share repurchased cost | $40.0 million | | Average cost per share | $142.35 | - As of March 31, 2025, **$60.0 million** was available for future repurchases under the 2024 program[62](index=62&type=chunk) [Note K – Stock-Based Compensation](index=17&type=section&id=Note%20K%20%E2%80%93%20Stock-Based%20Compensation) Stock-based compensation expense for Q1 2025 was $13.9 million, a decrease from $20.0 million in Q1 2024. The expense was allocated across cost of revenues and operating expenses. As of March 31, 2025, there was $102.3 million of unrecognized stock-based compensation expense, expected to be recognized over a weighted average period of 2.6 years Stock-Based Compensation Expense (in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cost of revenues | $3,111 | $4,082 | | Sales and marketing | $2,427 | $4,444 | | Research and development | $2,017 | $3,242 | | General and administrative | $6,312 | $8,250 | | **Total** | **$13,867** | **$20,018** | - Unrecognized stock-based compensation expense totaled **$102.3 million** as of March 31, 2025, to be recognized over a weighted average of **2.6 years**[65](index=65&type=chunk) [Note N – Net Income Per Share](index=20&type=section&id=Note%20N%20%E2%80%93%20Net%20Income%20Per%20Share) For the first quarter of 2025, both basic and diluted net income per share were $0.58. This was calculated using a net income of $22.2 million and weighted average basic shares of 38.0 million and diluted shares of 38.2 million. This is an increase from Q1 2024, which had a basic EPS of $0.49 and diluted EPS of $0.48 Net Income Per Share Calculation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (in thousands) | $22,196 | $18,003 | | Weighted average shares, basic (in thousands) | 37,990 | 37,049 | | Weighted average shares, diluted (in thousands) | 38,163 | 37,686 | | **Basic EPS** | **$0.58** | **$0.49** | | **Diluted EPS** | **$0.58** | **$0.48** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 21% revenue growth to increases in both the number of recurring revenue customers, largely from acquisitions, and the average revenue per user (ARPU). Operating expenses increased across the board due to higher headcount, while amortization expense nearly doubled due to recent acquisitions. Adjusted EBITDA margin remained stable at 30%. The company's liquidity position remains strong, though cash decreased significantly due to the cash outlay for the Carbon6 acquisition and share repurchases [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Revenues grew 21% YoY, driven by an 11% increase in ARPU to approximately $13,850 and a 21% increase in recurring revenue customers to 54,150, with recent acquisitions being a primary driver of customer growth. Operating income increased 69% to $26.0 million. Adjusted EBITDA grew 22.5% to $54.4 million, with the margin holding steady at 30%. Non-GAAP diluted income per share increased to $1.00 from $0.86 in the prior-year period - Revenue growth was driven by an **11% increase** in ARPU to **~$13,850** and a **21% increase** in recurring revenue customers to **~54,150**[88](index=88&type=chunk) - The number of recurring revenue customers increased significantly due to acquisitions, including **~50** from Traverse Systems, **~200** from SupplyPike, and **~8,500** from Carbon6[88](index=88&type=chunk) Non-GAAP Financial Measures Reconciliation (in thousands) | Measure | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $22,196 | $18,003 | | Adjusted EBITDA | $54,373 | $44,402 | | **Adjusted EBITDA Margin** | **30%** | **30%** | | Non-GAAP Income | $38,013 | $32,501 | | **Non-GAAP Income per Share, diluted** | **$1.00** | **$0.86** | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company's main liquidity sources were $94.9 million in cash and cash equivalents and $63.4 million in net accounts receivable. Cash from operations increased to $40.0 million in Q1 2025. However, cash used in investing activities surged to $147.8 million due to a business acquisition, and cash used in financing increased to $39.0 million from higher share repurchases. The company believes existing cash and operational cash flow are sufficient to meet capital needs for the next twelve months - Principal sources of liquidity as of March 31, 2025, were cash and cash equivalents of **$94.9 million** and net accounts receivable of **$63.4 million**[102](index=102&type=chunk) - The increase in cash used in investing activities was primarily due to **$141.6 million** used for a business acquisition[105](index=105&type=chunk) - The increase in cash used in financing activities was primarily due to a **$23.5 million** year-over-year increase in share repurchases[106](index=106&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There were no changes to the company's critical accounting policies or estimates during the first quarter of 2025. The most critical policies relate to revenue recognition, internally developed software, and business combinations - No changes were made to critical accounting policies or estimates in Q1 2025. Key policies include revenue recognition, internally developed software, and business combinations[100](index=100&type=chunk)[101](index=101&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate and foreign currency exchange risks. A hypothetical 50-basis point change in interest rates would have a $0.1 million impact on investment income. Due to international operations, the company holds assets and incurs expenses in foreign currencies, primarily the Australian dollar, Canadian dollar, and Euro. A hypothetical 10% unfavorable change in all foreign currency exchange rates would result in a $1.1 million impact on cash and cash equivalents held in those currencies - A hypothetical **50-basis point** change in interest rates would impact investment income by **$0.1 million**[112](index=112&type=chunk) - A hypothetical **10%** unfavorable change in foreign currency exchange rates would impact cash and cash equivalents by **$1.1 million**[115](index=115&type=chunk) - The company has not used forward contracts or currency borrowings to hedge foreign currency risk but may do so in the future[116](index=116&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025. There were no material changes to internal control over financial reporting during the quarter. The recently acquired Carbon6 business is currently being integrated and is excluded from the assessment of internal controls, as permitted by SEC guidance - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[117](index=117&type=chunk) - The internal controls of the newly acquired Carbon6 business are being incorporated and are currently excluded from the internal control assessment[119](index=119&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any legal claims or actions that would have a material adverse effect on its business, financial condition, or results of operations - There are no current legal proceedings expected to have a material adverse effect on the company[122](index=122&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes in the company's risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors have occurred since the last Annual Report on Form 10-K[123](index=123&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On February 4, 2025, the company issued 378,100 shares of common stock as partial consideration for the Carbon6 acquisition, exempt from registration under the Securities Act. During the quarter, the company also repurchased 281,001 shares for approximately $40.0 million, leaving $60.0 million available under the current repurchase program - On February 4, 2025, **378,100 shares** of common stock were issued to the sellers of Carbon6 as part of the acquisition consideration[124](index=124&type=chunk) Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 1-31 | — | — | $100,000,000 | | Feb 1-28 | 243,556 | $143.68 | $65,005,000 | | Mar 1-31 | 37,445 | $133.50 | $60,006,000 | | **Total** | **281,001** | **$142.33** | **$60,006,000** | [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, none of the company's directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans during Q1 2025[129](index=129&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, agreements, officer certifications, and interactive data files - A list of exhibits filed with the report is provided, including certifications and interactive data files[130](index=130&type=chunk)

[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) SPS Commerce reported strong Q1 2025 financial results and provided forward-looking guidance for the upcoming quarter and full fiscal year [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) SPS Commerce achieved its 97th consecutive quarter of revenue growth in Q1 2025, with revenue up 21% and strong profit gains - This marks the company's 97th consecutive quarter of revenue growth, underscoring the resilience of its business model and the mission-critical nature of its solutions[1](index=1&type=chunk)[3](index=3&type=chunk) Q1 2025 Key Financial Metrics (YoY) | Metric | Q1 2025 | Q1 2024 | Growth | | :--- | :--- | :--- | :--- | | Revenue | $181.5M | $149.6M | 21% | | Recurring Revenue Growth | 23% | N/A | N/A | | Net Income | $22.2M | $18.0M | 23% | | Diluted EPS | $0.58 | $0.48 | 21% | | Non-GAAP Diluted EPS | $1.00 | $0.86 | 16% | | Adjusted EBITDA | $54.4M | $44.4M | 22% | - The company repurchased **$40.0 million** of its common stock during the first quarter of 2025[4](index=4&type=chunk) - Management highlighted a large total addressable market of **$11 billion**, positioning the company to support trading relationships across retail, distribution, grocery, and manufacturing[3](index=3&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) The company provided Q2 and full fiscal year 2025 guidance, projecting continued strong growth in revenue and Adjusted EBITDA Second Quarter 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $184.5M - $186.2M (20%-21% YoY Growth) | | Net Income per Diluted Share | $0.41 - $0.44 | | Non-GAAP Income per Diluted Share | $0.87 - $0.90 | | Adjusted EBITDA | $53.0M - $54.5M | Fiscal Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $758.5M - $763.0M (19%-20% YoY Growth) | | Net Income per Diluted Share | $2.06 - $2.13 | | Non-GAAP Income per Diluted Share | $3.86 - $3.93 | | Adjusted EBITDA | $229.4M - $232.9M (23%-25% YoY Growth) | - The company does not provide a reconciliation for forward-looking non-GAAP financial measures to the most comparable GAAP measures, citing the impracticality of forecasting certain items without unreasonable effort[7](index=7&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated balance sheets, income statements, and cash flow statements for the reported periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1.11 billion as of March 31, 2025, with cash decreasing due to acquisitions and share repurchases Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $94,921 | $241,017 | | Total current assets | $251,835 | $381,907 | | Goodwill | $533,940 | $399,180 | | Intangible assets, net | $252,280 | $181,294 | | **Total assets** | **$1,109,050** | **$1,031,230** | | Total current liabilities | $153,424 | $146,684 | | **Total liabilities** | **$188,129** | **$176,540** | | **Total stockholders' equity** | **$920,921** | **$854,690** | [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) SPS Commerce reported Q1 2025 revenues of $181.5 million, up 21.4%, with significant increases in gross profit and net income Income Statement Summary for Q1 (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenues | $181,549 | $149,576 | | Gross profit | $124,635 | $98,089 | | Income from operations | $25,956 | $15,403 | | **Net income** | **$22,196** | **$18,003** | | Diluted EPS | $0.58 | $0.48 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, operating cash flow increased, but overall cash decreased due to significant outflows from investing activities and share repurchases Cash Flow Summary for Q1 (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,983 | $34,064 | | Net cash used in investing activities | ($147,786) | ($2,945) | | Net cash used in financing activities | ($38,954) | ($14,889) | | **Net (decrease) increase in cash** | **($146,096)** | **$15,556** | | Cash at end of period | $94,921 | $234,637 | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains the company's use of non-GAAP financial measures and provides detailed reconciliations to their most comparable GAAP equivalents [Use and Definition of Non-GAAP Financial Measures](index=3&type=section&id=Use%20and%20Definition%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and non-GAAP income per share for financial analysis, excluding non-cash and non-recurring items - Management uses non-GAAP measures like Adjusted EBITDA for comparing performance across periods, for planning, and for determining executive and senior management incentive compensation[13](index=13&type=chunk) - Adjusted EBITDA is defined as net income adjusted for income tax, depreciation, amortization, stock-based compensation, investment gains/losses, and other specific items[15](index=15&type=chunk) - Non-GAAP income per share adjusts net income for stock-based compensation, amortization of intangibles, and other items, along with their corresponding tax impacts[17](index=17&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) For Q1 2025, GAAP Net Income was reconciled to Non-GAAP Adjusted EBITDA and Non-GAAP Income, primarily adjusting for stock-based compensation and amortization Reconciliation of Net Income to Adjusted EBITDA for Q1 2025 (in thousands) | Description | Amount | | :--- | :--- | | **Net income (GAAP)** | **$22,196** | | Income tax expense | $5,967 | | Depreciation and amortization | $4,957 | | Amortization of intangible assets | $8,588 | | Stock-based compensation expense | $13,867 | | Other adjustments | ($1,199) | | **Adjusted EBITDA (Non-GAAP)** | **$54,373** | Reconciliation of Net Income to Non-GAAP Income for Q1 2025 (in thousands) | Description | Amount | | :--- | :--- | | **Net income (GAAP)** | **$22,196** | | Stock-based compensation expense | $13,867 | | Amortization of intangible assets | $8,588 | | Other adjustments | $647 | | Income tax effects of adjustments | ($7,285) | | **Non-GAAP income** | **$38,013** | | **Non-GAAP income per share, diluted** | **$1.00** |

Core Insights - SPS Commerce reported a 21% increase in revenue for Q1 2025, reaching $181.5 million compared to $149.6 million in Q1 2024, marking the 97th consecutive quarter of revenue growth [1][6][10] - Recurring revenue grew by 23% year-over-year, indicating strong demand for the company's cloud services in retail supply chain management [1][6] - The company maintains a positive outlook for the full year 2025, expecting revenue growth of 19% to 20% compared to 2024, with projected revenue between $758.5 million and $763.0 million [7][10] Financial Performance - Net income for Q1 2025 was $22.2 million, or $0.58 per diluted share, up from $18.0 million, or $0.48 per diluted share in Q1 2024 [6][23] - Non-GAAP income per diluted share increased to $1.00 from $0.86 in the same period last year [6][29] - Adjusted EBITDA rose by 22% to $54.4 million, reflecting strong operational performance [6][28] Market Position - SPS Commerce operates a network of over 50,000 suppliers and logistics companies, positioning itself uniquely in a total addressable market of $11 billion [3][10] - The company's solutions are designed to enhance collaboration across the global retail supply chain, underscoring the critical nature of its services [3][10] Guidance - For Q2 2025, revenue is expected to be between $184.5 million and $186.2 million, representing a year-over-year growth of 20% to 21% [7] - Full-year guidance includes a net income per diluted share forecast of $2.06 to $2.13, with non-GAAP income per diluted share expected to be between $3.86 and $3.93 [7]

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 [3] - The company supports over 45,000 recurring revenue customers across various sectors including retail, grocery, distribution, supply, manufacturing, and logistics [3] - SPS Commerce has achieved 96 consecutive quarters of revenue growth, indicating strong financial performance [3] Upcoming Financial Results - SPS Commerce will issue its financial results for the first quarter ended March 31, 2025, after the market close on April 24, 2025 [1] - A conference call to discuss the results will be held at 3:30 p.m. Central Time on the same day [1] Accessing the Conference Call - Interested parties can access the call by dialing 1-833-816-1382 within the U.S. or 1-412-317-0475 from outside the U.S. [2] - A live webcast of the call will be available on the company's investor relations website [2]

MINNEAPOLIS, March 26, 2025 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced the release of its 2024 Environmental, Social, and Governance (ESG) Report, outlining the company’s ongoing commitment to sustainability, ethical business practices, and social responsibility. This inaugural report highlights the company’s key advancements in governance, employee experience, community engagement, and environmental stewardship. “At SPS Commerce, c ...

Company Overview - SPS Commerce (SPSC) shares increased by 5.2% to close at $129.43, following a period of 17.1% loss over the past four weeks, indicating a significant recovery backed by strong trading volume [1][2] Competitive Position - The company's recent stock price rise is attributed to a competitive product portfolio, enhanced collaboration with vendors, retailers, and grocers, as well as strategic acquisitions including Vision33's SAP Business One integration technology, Traverse Systems, and SupplyPike [2] Financial Performance Expectations - SPS Commerce is projected to report quarterly earnings of $0.85 per share, reflecting a year-over-year decline of 1.2%. Revenue is expected to reach $179.53 million, marking a 20% increase compared to the same quarter last year [3] Earnings Estimate Trends - The consensus EPS estimate for SPS Commerce has remained stable over the last 30 days, suggesting that the stock's price movement may not sustain without changes in earnings estimate revisions [4][5] Industry Context - SPS Commerce is part of the Zacks Business - Services industry, where another company, Crawford & Company B (CRD.B), experienced a 2.1% increase in stock price, closing at $10.56, despite a negative return of 11.3% over the past month [5][6]

Core Viewpoint - Growth stocks are appealing due to their above-average financial growth, but identifying those with true potential can be challenging [1] Group 1: Company Overview - SPS Commerce (SPSC) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company provides supply chain software services to businesses, making it a strong growth pick [3] Group 2: Earnings Growth - SPS Commerce has a historical EPS growth rate of 20.1%, with projected EPS growth of 11% this year, surpassing the industry average of 9.5% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for SPS Commerce is 22.6%, exceeding the industry average of 14.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 21.2%, compared to the industry average of 8% [6] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for SPS Commerce, with a 1.3% increase in the Zacks Consensus Estimate over the past month [8] Group 5: Investment Positioning - SPS Commerce holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10]

MINNEAPOLIS, Feb. 27, 2025 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced that management will present at the Morgan Stanley Technology, Media & Telecom Conference on Thursday, March 6, 2025, at 8:30 AM P.T. A webcast of the presentation will be available on the company’s investor relations website at http://investors.spscommerce.com/events.cfm. About SPS Commerce SPS Commerce is the world’s leading retail network, connecting trading pa ...

MINNEAPOLIS, Feb. 27, 2025 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ:SPSC), a leader in retail supply chain cloud services, today announced that management will present at the Morgan Stanley Technology, Media & Telecom Conference on Thursday, March 6, 2025, at 8:30 AM P.T. A webcast of the presentation will be available on the company's investor relations website at http://investors.spscommerce.com/events.cfm. About SPS Commerce SPS Commerce is the world's leading retail network, connecting trading par ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) (612) 435-9400 x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended: December 31, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from_______to_______ Commission file number 001-34702 SPS COMMERCE, INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdic ...