SPS Commerce (SPSC) Q4 2024 earnings summary

Executive summary

• Achieved strong financial performance in Q4 and full year 2024, with revenue up 19% year-over-year to $637.8 million and recurring revenue up 20%.

• Expanded product portfolio through acquisitions, including Vision33's SAP Business One Integration Technology, Traverse Systems, SupplyPike, and Carbon6, supporting supplier communities for major global retailers.

• Achieved 96th consecutive quarter of topline growth, reflecting robust demand for retail supply chain cloud services.

• SPS Commerce targets a large and expanding $11.1B global TAM, leveraging a unique network model and viral lead generation to support over 45,000 recurring revenue customers globally.

• Customer success stories highlight improved supply chain visibility, compliance, and revenue recovery for major clients.

Financial highlights

• FY 2024 revenue was $637.8M, up 19% year-over-year; recurring revenue grew 20%.

• Adjusted EBITDA for FY 2024 was $186.6M, up 18%, with a 29% margin; net income was $77.1M, with a 12% margin.

• Q4 2024 revenue was $170.9M, up 18% year-over-year; recurring revenue grew 19%.

• Ended 2024 with $241M in cash and investments.

• Recurring revenue customers reached over 45,000, with wallet share per customer at $13,300.

Outlook and guidance

• Q1 2025 revenue expected between $178.5M and $180M (19%-20% growth); Adjusted EBITDA $49.5M–$50.5M; non-GAAP EPS $0.82–$0.84.

• Full year 2025 revenue guidance is $758M–$763M (19%-20% growth); Adjusted EBITDA $227.5M–$231M (22%-24% growth); non-GAAP EPS $3.78–$3.84.

• Management expects annual revenue growth of at least 15% and adjusted EBITDA growth of 15–25% going forward.

• Guidance includes expected results from the Carbon6 acquisition.