SPS Commerce Reports First Quarter 2025 Financial Results

Core Insights - SPS Commerce reported a 21% increase in revenue for Q1 2025, reaching $181.5 million compared to $149.6 million in Q1 2024, marking the 97th consecutive quarter of revenue growth [1][6][10] - Recurring revenue grew by 23% year-over-year, indicating strong demand for the company's cloud services in retail supply chain management [1][6] - The company maintains a positive outlook for the full year 2025, expecting revenue growth of 19% to 20% compared to 2024, with projected revenue between $758.5 million and $763.0 million [7][10] Financial Performance - Net income for Q1 2025 was $22.2 million, or $0.58 per diluted share, up from $18.0 million, or $0.48 per diluted share in Q1 2024 [6][23] - Non-GAAP income per diluted share increased to $1.00 from $0.86 in the same period last year [6][29] - Adjusted EBITDA rose by 22% to $54.4 million, reflecting strong operational performance [6][28] Market Position - SPS Commerce operates a network of over 50,000 suppliers and logistics companies, positioning itself uniquely in a total addressable market of $11 billion [3][10] - The company's solutions are designed to enhance collaboration across the global retail supply chain, underscoring the critical nature of its services [3][10] Guidance - For Q2 2025, revenue is expected to be between $184.5 million and $186.2 million, representing a year-over-year growth of 20% to 21% [7] - Full-year guidance includes a net income per diluted share forecast of $2.06 to $2.13, with non-GAAP income per diluted share expected to be between $3.86 and $3.93 [7]