SPS(US:SPSC)2022-04-28 23:21Revenue Growth - Revenues increased by 16.8% to $105.2 million for the three months ended March 31, 2022, compared to $90.1 million for the same period in 2021[71] - Recurring revenues rose by 18% to $97.6 million, accounting for 93% of total revenues in Q1 2022, up from 92% in Q1 2021[73] - The number of recurring revenue customers increased by 12% to 37,900 as of March 31, 2022, from 33,850 a year earlier[73] Profitability - Adjusted EBITDA for Q1 2022 was $31.8 million, compared to $25.5 million in Q1 2021, reflecting a 24.8% increase[80] - Adjusted EBITDA Margin improved to 30% in Q1 2022, up from 28% in Q1 2021[81] - Net income for Q1 2022 was $12.6 million, a 23.6% increase from $10.2 million in Q1 2021[71] - Non-GAAP income for the same period was $20,401,000, up from $15,677,000 in 2021, reflecting a year-over-year increase of 30.0%[82] - Basic non-GAAP income per share increased to $0.56 from $0.44, a rise of 27.3% year-over-year[82] Expenses - Operating expenses increased by 12.3% to $53.3 million in Q1 2022, driven by higher personnel-related costs across various departments[71] - Sales and marketing expenses rose by 15.5% to $24.7 million, primarily due to increased headcount and variable compensation[75] - Research and development expenses increased by 22.9% to $10.7 million, reflecting higher personnel costs and stock-based compensation[76] Cash Flow and Financial Position - Cash and cash equivalents, along with short-term investments, totaled $243.1 million as of March 31, 2022[83] - Net cash provided by operating activities decreased to $4,347,000 from $21,605,000 in the prior year, a decline of 80.0%[84] - Net cash used in financing activities was $(14,575,000), compared to $2,743,000 in the same period of 2021, indicating a significant increase in cash outflow[84] - Total contractual obligations and commercial commitments amounted to $29,626,000 as of March 31, 2022[88] Future Outlook - The company plans to continue expanding its market presence and pursue selective acquisitions to enhance its service offerings and customer base[65] - Company anticipates future capital requirements will increase due to business expansion and product development efforts[89] - Approximately 6% of total cash and cash equivalents were maintained in foreign currencies as of March 31, 2022[98] - Company believes a hypothetical 10% change in foreign currency exchange rates would not materially impact operational needs or consolidated financials[99]