SPS Commerce (SPSC) Q2 2024 earnings summary

Executive summary

• Achieved 94th consecutive quarter of revenue growth, with Q2 2024 revenue up 18% year-over-year to $153.6 million and recurring revenue also up 18%.

• Net income for Q2 2024 was $18.0 million ($0.48 per diluted share), up from $14.7 million ($0.39 per diluted share) in Q2 2023.

• Completed acquisitions of Traverse Systems, TIE Kinetix, and Vision33 SAP Integration, expanding product portfolio and customer base.

• Customer satisfaction and operational efficiency improvements highlighted through case studies and ongoing expansion of market penetration and international presence.

• Announced a new $100 million share repurchase program, effective August 23, 2024.

Financial highlights

• Q2 2024 revenue: $153.6 million, up 18% year-over-year; net income: $18.0 million; Adjusted EBITDA: $44.2 million (29% margin).

• Recurring revenue customers increased 5% year-over-year to approximately 44,950; wallet share rose 13% to about $12,850.

• Six-month revenue up 18% to $303.2 million; net income up 20% to $36.0 million.

• Ended quarter with $272 million in cash and investments; operating cash flow for six months was $63.5 million.

• Repurchased $17.5 million of shares in Q2; $37.5 million in the first half of 2024.

Outlook and guidance

• Q3 2024 revenue expected between $157.6 million and $158.6 million; Adjusted EBITDA: $46.9 million-$47.7 million; non-GAAP EPS: $0.83-$0.84.

• Full-year 2024 revenue expected at $624.2 million-$626 million, up 16%-17% over 2023; Adjusted EBITDA: $185.5 million-$187 million.

• FY 2024 non-GAAP income per diluted share expected between $3.63 and $3.66.

• Long-term annual revenue growth target of 15%+ and Adjusted EBITDA margin target of 35%.

• Cash, investments, and operating cash flow expected to be sufficient for working capital and capital expenditures for at least the next twelve months.