SPS Commerce beats Q2 revenue expectations

Overview

• SPS Commerce Q2 revenue grows 22% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q2 rises 27%, surpassing analyst estimates

• Company repurchased $20 mln in shares, indicating confidence in growth

Outlook

• Company expects Q3 revenue between $191.7 mln and $193.2 mln

• SPS Commerce sees FY 2025 revenue between $759 mln and $763 mln

• Company anticipates Q3 adjusted EBITDA between $57.9 mln and $59.9 mln

• SPS Commerce forecasts FY 2025 net income per share $2.17 to $2.22

Result Drivers

• RECURRING REVENUE - Recurring revenue grew 24% from Q2 2024, driven by demand for EDI solutions

• PRODUCT PORTFOLIO - CEO Chad Collins attributes growth to a product portfolio that enhances trading partner collaboration

• MARKET POSITION - CFO Kim Nelson cites strong operating leverage and resilience as key to capitalizing on growth opportunities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for SPS Commerce Inc is $175.00, about 19.9% above its July 29 closing price of $140.10

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nGNXQ6fc0