Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zack ...

Core Viewpoint - SPS Commerce (SPSC) is experiencing significant selling pressure, having declined 9.8% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Stock Performance and Indicators - The stock's Relative Strength Index (RSI) is at 27.53, indicating it is oversold, which suggests a potential reversal in trend as selling pressure may be exhausting [3]. - A stock is generally considered oversold when its RSI falls below 30, which helps investors identify potential entry points for a rebound [2]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for SPSC has increased by 2.2%, indicating a positive trend in earnings revisions that typically correlates with price appreciation [3]. - SPS Commerce holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [3].

SPS Commerce (SPSC) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.84%. A quarter ago, it was expected that this provider of supply chain software services to businesses would post earnings of $0.76 per share when it actually produced earnings of $0.80, delivering a surprise of 5. ...

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 |

Core Viewpoint - SPS Commerce, Inc. will release its financial results for Q3 2024 on October 24, 2024, after market close, followed by a conference call to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for the third quarter ended September 30, 2024, will be announced after market close on October 24, 2024 [1]. - A conference call to discuss the results is scheduled for 3:30 p.m. Central Time on the same day [1]. Group 2: Accessing the Conference Call - Participants can join the call by dialing 1-833-816-1382 or 1-412-317-0475 for international calls, at least 15 minutes prior to the start time [2]. - A live webcast of the call will be available on the SPS Commerce investor relations website [2]. Group 3: Company Overview - SPS Commerce is a leader in retail supply chain cloud services, connecting trading partners globally to optimize supply chain operations [3]. - The company supports over 120,000 retail, grocery, distribution, supply, and logistics companies, achieving 94 consecutive quarters of revenue growth [3].

Core Viewpoint - SPS Commerce has announced the acquisition of SupplyPike, enhancing its product portfolio with automated invoice deduction management and prevention solutions [1][2] Acquisition Details - The acquisition was valued at approximately $119 million in cash and $87 million in SPS Commerce stock [4] - For Q3 2024, the acquisition is expected to contribute around $3.0 million in revenue, with an anticipated negative impact of approximately $750,000 on Adjusted EBITDA [4] - For fiscal year 2024, the company expects an additional $8.0 million in revenue and a negative impact of about $1.5 million on Adjusted EBITDA [5] - For fiscal year 2025, the expected revenue contribution is approximately $25.0 million, with a breakeven in Adjusted EBITDA [5] Strategic Importance - The acquisition aims to improve collaboration between trading partners in the retail supply chain, providing suppliers with tools to meet customer expectations through automated monitoring and dispute resolution [3] - The integration of SupplyPike is expected to create an industry-leading knowledge base to reduce supply chain errors and enhance supplier-customer relationships [3] Company Background - SPS Commerce is a leader in retail supply chain cloud services, connecting over 120,000 companies globally to optimize supply chain operations [7] - The company has achieved 94 consecutive quarters of revenue growth and is headquartered in Minneapolis [7]

Core Viewpoint - SPS Commerce has acquired SupplyPike, enhancing its product portfolio with automated invoice deduction management and prevention solutions [1][2] Acquisition Details - The acquisition cost approximately $119 million in cash and $87 million in SPS Commerce stock [4] - For Q3 2024, the acquisition is expected to contribute approximately $3.0 million in revenue, with an anticipated negative impact of about $750,000 on Adjusted EBITDA [4] - For fiscal year 2024, the company expects an additional $8.0 million in revenue and a negative impact of approximately $1.5 million on Adjusted EBITDA [5] - For fiscal year 2025, the expected revenue increase is approximately $25.0 million, with a breakeven in Adjusted EBITDA [5] Strategic Importance - The acquisition allows SPS Commerce to provide suppliers with tools to better meet retail customer expectations through automated monitoring, education, and dispute resolution [3] - The combination of SupplyPike and SPS Commerce aims to reduce supply chain errors and strengthen supplier-customer relationships [3] Company Background - SPS Commerce is a leader in retail supply chain cloud services, connecting over 120,000 companies globally [7] - The company has achieved 94 consecutive quarters of revenue growth and is headquartered in Minneapolis [7]

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]