SPS(US:SPSC)2024-10-24 20:15Financial Performance - Revenues increased by 21% to $163.7 million for the three months ended September 30, 2024, compared to $135.7 million for the same period in 2023[59] - Gross profit rose by 24% to $112.1 million, with a gross margin of 68% for the three months ended September 30, 2024[59] - Recurring revenues increased by 21% to $154.5 million, accounting for 94% of total revenues for the three months ended September 30, 2024[60] - Net income increased by 39% to $23.5 million for the three months ended September 30, 2024, compared to $16.8 million for the same period in 2023[59] - Revenues increased by 19% to $466.9 million for the nine months ended September 30, 2024, compared to $391.9 million for the same period in 2023[67] - Net income rose by 27% to $59.5 million for the nine months ended September 30, 2024, compared to $46.8 million for the same period in 2023[67] - Recurring revenues increased by 20% to $438.1 million, accounting for 94% of total revenues for the nine months ended September 30, 2024[67] - Adjusted EBITDA for the three months ended September 30, 2024, was $48.4 million, compared to $40.5 million for the same period in 2023[63] - Adjusted EBITDA increased by 18% to $137.0 million for the nine months ended September 30, 2024, compared to $115.7 million for the same period in 2023[71] - Non-GAAP income per share, diluted, increased to $2.58 for the nine months ended September 30, 2024, compared to $2.10 for the same period in 2023[73] Customer Metrics - The number of recurring revenue customers grew by 2% to approximately 45,200 as of September 30, 2024, driven by sales and marketing efforts and recent acquisitions[59] - The average wallet share per recurring revenue customer increased by 16% to approximately $13,000 for the nine months ended September 30, 2024[67] - Wallet share increased by 18% to approximately $13,700 for the three months ended September 30, 2024, from approximately $11,650 for the same period in 2023[59] Operating Expenses - Total operating expenses rose by 24% to $86.5 million, primarily due to increased headcount across various departments[61] - Operating expenses increased by 21% to $247.6 million for the nine months ended September 30, 2024, primarily due to increased headcount[68] - The increase in cost of revenues was primarily due to a $14.1 million rise in personnel-related costs[68] Cash Flow and Liquidity - Net cash provided by operating activities increased to $116.8 million for the nine months ended September 30, 2024, compared to $99.5 million for the same period in 2023, reflecting a $25.0 million increase in net income adjusted for non-cash expenses[76][77] - Cash used in investing activities rose to $110.2 million, primarily due to an increase of $77.2 million in cash used for business acquisitions year-over-year[78] - Cash used in financing activities increased to $27.7 million, driven by a $37.6 million rise in cash used for share repurchases year-over-year[79] - As of September 30, 2024, the company's principal sources of liquidity included cash and cash equivalents and short-term investments totaling $205.8 million, along with net accounts receivable of $55.6 million[75] Future Outlook - The company plans to continue expanding its international presence and developing new products and applications to drive growth[57] - Future capital requirements will depend on factors such as costs for new product development, market penetration efforts, and potential acquisitions, with expectations of continued increases in expenditures as the business expands[81] Risk Factors - The company has no off-balance sheet arrangements or variable interest rate outstanding debt as of September 30, 2024, indicating no material risk exposure to interest rate fluctuations[82][84] - As of September 30, 2024, 15% of the company's total cash and cash equivalents and investments were maintained in foreign currencies, primarily exposing it to fluctuations in exchange rates[85] - The company does not expect inflation or changing prices to materially affect its business in the foreseeable future[83]