Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: September 30, 2024 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) Delaware 4 ...

[SPS Commerce Third Quarter 2024 Financial Results](index=1&type=section&id=SPS%20Commerce%20Reports%20Third%20Quarter%202024%20Financial%20Results) [Third Quarter 2024 Financial Highlights](index=1&type=section&id=Financial%20Highlights) SPS Commerce achieved its 95th consecutive quarter of revenue growth, with Q3 2024 revenue increasing 21% to $163.7 million and net income rising 40% Q3 2024 Key Financial Metrics (YoY Comparison) | Metric | Q3 2024 | Q3 2023 | Growth | | :--- | :--- | :--- | :--- | | Revenue | $163.7M | $135.7M | 21% | | Recurring Revenue | - | - | 21% | | Net Income | $23.5M | $16.8M | 40% | | Net Income per Diluted Share | $0.62 | $0.45 | 38% | | Non-GAAP Income per Diluted Share | $0.92 | $0.75 | 23% | | Adjusted EBITDA | $48.4M | $40.5M (from recon) | 19% | - The company has now achieved **95 consecutive quarters of topline growth**, demonstrating consistent performance[1](index=1&type=chunk)[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized digital transformation and supply chain resilience as key growth drivers, alongside a balanced growth approach - CEO Chad Collins stated that evolving retail dynamics continue to drive digital transformation, and customers prioritize supply chain resilience and efficient collaboration[3](index=3&type=chunk) - CFO Kim Nelson noted the company's commitment to a balanced growth approach and its comprehensive product portfolio that helps customers navigate supply chain complexity[3](index=3&type=chunk) [Future Outlook and Guidance](index=1&type=section&id=Guidance) [Fourth Quarter 2024 Guidance](index=1&type=section&id=Fourth%20Quarter%202024%20Guidance) SPS Commerce projects Q4 2024 revenue between $168.5 million and $169.5 million, with adjusted EBITDA ranging from $48.0 million to $48.7 million Q4 2024 Guidance | Metric | Expected Range | | :--- | :--- | | Revenue | $168.5M - $169.5M | | YoY Revenue Growth | 16% - 17% | | Net Income per Diluted Share | $0.46 - $0.47 | | Non-GAAP Income per Diluted Share | $0.83 - $0.84 | | Adjusted EBITDA | $48.0M - $48.7M | [Fiscal Year 2024 Guidance](index=2&type=section&id=Fiscal%20Year%202024%20Guidance) The company raised its full-year 2024 guidance, forecasting revenue between $635.4 million and $636.4 million and adjusted EBITDA between $185.0 million and $185.7 million Fiscal Year 2024 Guidance | Metric | Expected Range | | :--- | :--- | | Revenue | $635.4M - $636.4M | | YoY Revenue Growth | 18% - 19% | | Net Income per Diluted Share | $2.03 - $2.04 | | Non-GAAP Income per Diluted Share | $3.41 - $3.42 | | Adjusted EBITDA | $185.0M - $185.7M | | YoY Adjusted EBITDA Growth | 17% - 18% | [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of September 30, 2024, total assets reached $1.003 billion, driven by increased goodwill, with total liabilities at $173.9 million Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 (unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $198,842 | $219,081 | | Goodwill | $423,508 | $249,176 | | Total assets | $1,003,300 | $823,844 | | Total liabilities | $173,935 | $156,369 | | Total stockholders' equity | $829,365 | $667,475 | [Condensed Consolidated Statements of Income](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Q3 2024 revenues grew 21% to $163.7 million, with net income reaching $23.5 million, while nine-month revenues totaled $466.9 million Income Statement Summary - Three Months Ended Sep 30 (in thousands) | Metric | 2024 | 2023 | Growth | | :--- | :--- | :--- | :--- | | Revenues | $163,686 | $135,661 | 20.7% | | Gross Profit | $112,062 | $90,140 | 24.3% | | Income from Operations | $25,571 | $20,599 | 24.1% | | Net Income | $23,460 | $16,842 | 39.3% | Income Statement Summary - Nine Months Ended Sep 30 (in thousands) | Metric | 2024 | 2023 | Growth | | :--- | :--- | :--- | :--- | | Revenues | $466,858 | $391,945 | 19.1% | | Gross Profit | $311,729 | $258,916 | 20.4% | | Income from Operations | $64,139 | $54,363 | 18.0% | | Net Income | $59,495 | $46,813 | 27.1% | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operations for the nine months ended September 30, 2024, was $116.8 million, with $110.2 million used in investing activities Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $116,836 | $99,512 | | Net cash used in investing activities | ($110,227) | ($93,448) | | Net cash provided by (used in) financing activities | ($27,697) | $10,005 | | Net (decrease) increase in cash | ($20,239) | $15,809 | | Cash and cash equivalents at end of period | $198,842 | $178,702 | [Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP measures like Adjusted EBITDA and non-GAAP income per share to offer additional insights into financial and business trends - Adjusted EBITDA is defined as net income adjusted for items including income tax, depreciation, amortization, stock-based compensation, and other specific adjustments[11](index=11&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[13](index=13&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=12&type=section&id=NON-GAAP%20RECONCILIATION) Q3 2024 Adjusted EBITDA was $48.4 million with a 30% margin, while non-GAAP income per diluted share was $0.92 Adjusted EBITDA Reconciliation - Q3 2024 vs Q3 2023 (in thousands) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $23,460 | $16,842 | | Adjustments (Taxes, D&A, Stock Comp, etc.) | $24,941 | $23,661 | | Adjusted EBITDA (Non-GAAP) | $48,401 | $40,503 | | Adjusted EBITDA Margin | 30% | 30% | Non-GAAP Income Per Share Reconciliation - Q3 2024 vs Q3 2023 | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net income per share, diluted (GAAP) | $0.62 | $0.45 | | Non-GAAP adjustments per share, diluted | $0.30 | $0.30 | | Non-GAAP income per share, diluted | $0.92 | $0.75 |

MINNEAPOLIS, Oct. 10, 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 third quarter ended September 30, 2024, after the market close on Thursday, October 24, 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 ...

Acquisition expands company's product portfolio with automated invoice deduction management and prevention Company to host conference call today at 8:30 a.m. ET MINNEAPOLIS, Aug. 01, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced the acquisition of SupplyPike, an automated invoice deduction management and prevention solution. SupplyPike is a first of its kind SaaS solution that provides ongoing monitoring and management of invoice ...

Acquisition expands company's product portfolio with automated invoice deduction management and prevention Company to host conference call today at 8:30 a.m. ET MINNEAPOLIS, Aug. 01, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced the acquisition of SupplyPike, an automated invoice deduction management and prevention solution. SupplyPike is a first of its kind SaaS solution that provides ongoing monitoring and management of invoice ...

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 ...