NASDAQ$SPSC

SPS Commerce Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

SPS Commerce reported strong results driven by continued expansion of their network and key role in retailers' and suppliers' omnichannel transformation.

SPS Commerce reported Q4 2023 revenue of $145.0 million, a 19% increase compared to Q4 2022. Net income was $19.0 million, or $0.51 per diluted share, compared to $15.9 million, or $0.43 per diluted share in the prior year. Non-GAAP income per diluted share was $0.75, compared to $0.63 in Q4 2022.

  • Revenue was $145.0 million, reflecting 19% growth compared to the fourth quarter of 2022.
  • Recurring revenue grew 19% from the fourth quarter of 2022.
  • Net income was $19.0 million or $0.51 per diluted share, compared to net income of $15.9 million or $0.43 per diluted share in the fourth quarter of 2022.
  • Non-GAAP income per diluted share was $0.75, compared to non-GAAP income per diluted share of $0.63 in the fourth quarter of 2022.

Headline financials

Total Revenue

$145M

Previous: $122M+18.8%
EPS (adj)

$0.75

Previous: $0.63+19.0%
Capital Expenditures

-$4.29M

Previous: $5.99M-171.7%
Net Income

$19M

Previous: $15.9M+19.5%
Operating Income

$22.9M

Previous: $19M+20.4%
Gross Profit

$95.9M

Previous: $80.5M+19.2%
Stock-Based Comp

$9.41M

Previous: $7.76M+21.2%

Revenue & EPS history

SPS Commerce · Revenue · Quarterly

$145M

Q4 2023+18.8%vs Q4 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

SPS Commerce · $20 total across 1 segment · Q3 2023

  • Recurring Revenue
    $20

Forward guidance

SPS Commerce anticipates revenue in the range of $145.9 million to $146.7 million for Q1 2024. Net income per diluted share is expected to be in the range of $0.26 to $0.27, and non-GAAP income per diluted share is expected to be in the range of $0.72 to $0.73.

Tailwinds

  • Revenue is expected to be in the range of $145.9 million to $146.7 million.
  • Net income per diluted share is expected to be in the range of $0.26 to $0.27.
  • Non-GAAP income per diluted share is expected to be in the range of $0.72 to $0.73.
  • Adjusted EBITDA is expected to be in the range of $42.1 million to $42.7 million.
  • Revenue is expected to be in the range of $616.5 million to $619.0 million, representing 15% growth over 2022.

Headwinds

  • Non-cash, share-based compensation expense is expected to be $20.1 million.
  • Depreciation expense is expected to be $4.7 million.
  • Amortization expense is expected to be $4.7 million.
  • Net income per diluted share is expected to be in the range of $1.75 to $1.78.
  • Non-GAAP income per diluted share is expected to be in the range of $3.11 to $3.13.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+1.1%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.8%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+18.5%

Q2 2013

Best reaction

-21.7%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%-0.4%+1.1%
Q4 2025-4.4%-9.8%-6.5%
Q3 2025-20.3%-21.8%-19.8%
Q1 2025-0.9%+3.2%+2.8%
Q4 2024-13.8%-17.5%-30.5%
Q3 2024-10.2%-8.9%-0.3%
Q2 2024+1.8%+1.1%-3.4%
Q1 2024+4.6%+1.6%+13.3%
Q4 2023+15.6%+5.8%+1.1%
Q3 2023-1.4%+2.5%+12.0%
Q2 2023-0.3%+0.1%+2.6%
Q1 2023+4.2%+4.9%+14.8%
Q4 2022+6.0%+9.7%+3.0%
Q3 2022+0.7%-1.7%+3.1%
Q2 2022+4.9%+10.8%+10.3%
Q1 2022+1.3%+1.2%-8.2%
Q4 2021+3.4%+2.9%-1.8%
Q3 2021-9.1%-13.2%-16.3%
Q2 2021+9.7%+12.6%+35.3%
Q1 2021+0.2%-4.0%-8.2%
Q4 2020+1.4%+1.7%-1.6%
Q3 2020-0.6%+0.8%+21.2%
Q2 2020+1.4%+1.7%+9.1%
Q1 2020-0.2%+2.7%+25.2%
Q4 2019+3.6%+4.5%-22.6%
Q3 2019+9.8%+9.5%+17.8%
Q2 2019+9.8%+9.7%-3.9%
Q1 2019+4.8%+1.5%-0.8%
Q4 2018+15.4%+18.0%+16.3%
Q3 2018+16.0%+13.3%+2.0%
Q2 2018+10.9%+11.0%+25.8%
Q1 2018+5.9%+8.9%+12.9%
Q4 2017+9.6%+6.2%+24.4%
Q3 2017-14.5%-13.7%-11.7%
Q2 2017+0.2%-0.8%+1.0%
Q1 2017-0.3%+1.0%+5.6%
Q4 2016-19.3%-14.0%-19.2%
Q3 2016-9.7%-10.2%-2.5%
Q2 2016+3.9%+3.0%+7.5%
Q1 2016+7.9%
Q4 2015-21.7%
Q3 2015+0.6%
Q2 2015-1.6%
Q1 2015+1.1%
Q4 2014+9.6%
Q3 2014-0.6%
Q2 2014-2.9%
Q1 2014-7.2%
Q4 2013+4.0%
Q3 2013+5.3%
Q2 2013+18.5%
Q1 2013+11.4%
Q4 2012+0.1%
Q3 2012-9.8%
Q2 2012+11.6%
Q1 2011-0.9%
Q1 2012-2.9%
Q4 2011+1.7%
Q4 2009+1.7%
Q3 2011+3.3%
Q2 2010-2.0%
Q2 2011-2.0%
Q4 2010+0.8%
Q3 2010+2.7%
Q1 2010-0.3%

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