SPS Commerce Inc (SPSC) Reports 18% Revenue Growth in Q3 2023
SPS Commerce Inc (NASDAQ:SPSC) reported an 18% year-over-year revenue growth in Q3 2023, reaching $135.7 million.
Recurring revenue grew 20% from the third quarter of 2022.
Net income was $16.8 million or $0.45 per diluted share, compared to net income of $15.9 million or $0.43 per diluted share in the third quarter of 2022.
Adjusted EBITDA for the third quarter of 2023 increased 17% to $40.5 million compared to the third quarter of 2022.
SPS Commerce Inc (NASDAQ:SPSC), a leader in retail cloud services, announced its financial results for the third quarter ended September 30, 2023, on October 26, 2023. The company reported its 91st consecutive quarter of topline growth with an 18% year-over-year increase in revenue, reaching $135.7 million. This is compared to $114.5 million in the third quarter of 2022.
Financial Highlights
Recurring revenue for the quarter grew 20% from the third quarter of 2022. Net income was $16.8 million or $0.45 per diluted share, compared to net income of $15.9 million or $0.43 per diluted share in the third 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 third quarter of 2022. Adjusted EBITDA for the third quarter of 2023 increased 17% to $40.5 million compared to the third quarter of 2022.
Management Commentary
SPS Commerces third quarter performance reflects the ongoing investments in optimization and automation across the retail industry, and the role we play in helping our customers achieve operational efficiencies while scaling their businesses, said Archie Black, Executive Chair of the Board.
Future Guidance
For the fourth quarter of 2023, SPS Commerce expects revenue to be in the range of $142.2 million to $143.2 million. Net income per diluted share is expected to be in the range of $0.40 to $0.42, with fully diluted weighted average shares outstanding of 37.7 million shares. Non-GAAP income per diluted share is expected to be in the range of $0.67 to $0.69. Adjusted EBITDA is expected to be in the range of $40.5 million to $41.3 million.
Financial Tables
SPS Commerce's balance sheet showed total assets of $787.4 million as of September 30, 2023, compared to $672.9 million as of December 31, 2022. The company's total liabilities stood at $160.6 million, while total stockholders' equity was $626.8 million.
The company's statement of comprehensive income showed revenues of $135.7 million for the third quarter of 2023, compared to $114.5 million for the same period in 2022. Net income for the quarter was $16.8 million, compared to $15.9 million for the third quarter of 2022.
SPS Commerce's cash flow statement showed net cash provided by operating activities of $99.5 million for the nine months ended September 30, 2023. The company ended the period with cash and cash equivalents of $178.7 million.
Conclusion
SPS Commerce Inc (NASDAQ:SPSC) continues to demonstrate strong financial performance with significant growth in revenue and net income. The company's consistent performance and positive future guidance indicate its strong position in the retail cloud services industry.
Explore the complete 8-K earnings release (here) from SPS Commerce Inc for further details.
This article first appeared on GuruFocus.
