SPS Commerce Reports Strong Growth in 2024 Financial Performance
Company celebrates 96 quarters of continuous revenue growth
SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, recently unveiled its financial results for the fourth quarter and the full fiscal year of 2024. The company has marked its 96th consecutive quarter of topline growth, a significant milestone that showcases its strength in the market.
Fourth Quarter Highlights
In the fourth quarter of 2024, SPS Commerce reported a remarkable revenue of $170.9 million, up from $145.0 million for the same period in the previous year, reflecting a growth of 18%. Recurring revenue increased by 19% compared to the fourth quarter of 2023. The net income for this quarter was recorded at $17.6 million, translating to $0.46 per diluted share. This was slightly lower than the $19.0 million or $0.51 per diluted share recorded in the fourth quarter of the previous year.
Financial Metrics Comparison
For the fourth quarter, the Non-GAAP income per diluted share increased to $0.89, compared to $0.75 in the previous year. The adjusted EBITDA for this quarter rose by 18% to $49.6 million when compared year-over-year.
Fiscal Year 2024 Overview
Throughout the full year of 2024, SPS Commerce achieved a total revenue of $637.8 million, marking a growth of 19% compared to the previous year's $536.9 million. Furthermore, the recurring revenue exhibited robust growth, increasing by 20% year-over-year.
The net income for the fiscal year was $77.1 million, which is equivalent to $2.04 per diluted share, showing a notable increase from $65.8 million or $1.76 per diluted share in the prior year. The non-GAAP income per diluted share was reported at $3.48, showcasing an upward trend from $2.85 the previous year. The adjusted EBITDA for the fiscal year was $186.6 million, reflecting an 18% increase compared to 2023.
Leadership Insights
Chad Collins, CEO of SPS Commerce, expressed pride in the accomplishments made in 2024, crediting the dedication and commitment of the SPS Commerce team. He highlighted the comprehensive suite of solutions the company provides, which positions them favorably in nurturing trading relationships and enhancing operational efficiencies across the supply chain.
Kim Nelson, CFO, also expressed optimism regarding the company’s growth trajectory, noting that the competitive product portfolio combined with SPS’ expansive retail network places the company in an advantageous position for future profitability.
Guidance for 2025
Looking ahead, SPS Commerce has provided its revenue guidance for the first quarter of 2025, estimating it to be between $178.5 million to $180.0 million, translating to a year-over-year growth of 19% to 20%. For the fiscal year 2025, the anticipated revenue is expected to be between $758.0 million and $763.0 million, again reflecting a growth of 19% to 20%. The net income per diluted share is projected to be in the range of $1.93 to $1.99.
Non-GAAP Financial Measures
SPS Commerce outlines its use of non-GAAP financial measures such as Adjusted EBITDA and non-GAAP income per share to provide insightful metrics reflecting its operational performance without the influence of certain accounting items. These measures have become essential for the management, investors, and board of directors as they analyze financial trends and execute strategic planning.
Conference Call Information
For those interested in the detailed financial results and strategic outlook discussed in this announcement, SPS Commerce invites you to join their upcoming conference call. Kindly dial 1-833-816-1382 in the U.S. or 1-412-317-0475 from outside the U.S., at least 15 minutes prior to the scheduled start time.
About SPS Commerce
SPS Commerce is recognized as the leading retail network globally, connecting trading partners to enhance supply chain operations for retailers. With an extensive customer base of over 45,000 recurring revenue clients, SPS leverages innovative cloud technology, superior customer service, and a deep well of expertise to foster data-driven partnerships.
Contact Information
For more information, contact Investor Relations at The Blueshirt Group. You can reach Irmina Blaszczyk and Lisa Laukkanen at SPSC@blueshirtgroup.com or call 415-217-4962.
Frequently Asked Questions
What financial growth did SPS Commerce report in 2024?
SPS Commerce reported an 18% increase in revenue for Q4 2024 and a 19% annual growth in total revenue, reaching $637.8 million.
How much net income did SPS Commerce achieve?
The net income for the fourth quarter was $17.6 million, and for the full fiscal year, it totaled $77.1 million.
What are the projections for 2025?
SPS Commerce anticipates Q1 2025 revenue between $178.5 million to $180.0 million, and the fiscal year revenue projections are between $758.0 million and $763.0 million.
How does SPS Commerce measure its financial performance?
The company utilizes non-GAAP financial measures such as Adjusted EBITDA and non-GAAP income per diluted share to evaluate operational performance more accurately.
Where can I find more information about SPS Commerce?
For additional details, you can contact their Investor Relations or visit their official website to access the latest press releases and reports.
