SPS(SPSC) - 2024 Q2 - Quarterly Report

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]