Here’s Why SPS Commerce (SPSC) was Able to Grow Revenue by 20%
Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 4.93% net-of-fees in the second quarter, compared to the Russell 2000 Growth Index’s 7.05% return. The key source of underperformance was poor stock selection, with allocation effects providing little benefit. The underperformance was mostly concentrated in the Industrials sector with minor declines in the Technology and Basic Materials sectors. Gains in the Consumer Discretionary and Utilities sectors partially offset these losses. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Strategy highlighted stocks like SPS Commerce, Inc. (NASDAQ:SPSC) in the second quarter 2023 investor letter. Headquartered in Minneapolis, Minnesota, SPS Commerce, Inc. (NASDAQ:SPSC) offers cloud-based supply chain management solutions. On August 8, 2023, SPS Commerce, Inc. (NASDAQ:SPSC) stock closed at $167.64 per share. One-month return of SPS Commerce, Inc. (NASDAQ:SPSC) was -10.89%, and its shares gained 30.82% of their value over the last 52 weeks. SPS Commerce, Inc. (NASDAQ:SPSC) has a market capitalization of $6.124 billion.
Conestoga Small Cap Strategy made the following comment about SPS Commerce, Inc. (NASDAQ:SPSC) in its second quarter 2023 investor letter:
"SPS Commerce, Inc. (NASDAQ:SPSC): SPSC is a provider of supply chain management software and has now been a leader in three of the past four quarters. SPSC benefits from secular growth in the digitization of ecommerce and from a steady, durable business model that has remained resilient in a slower macroeconomic environment. The company highlights that historically they have only seen about a 1% drag on revenue growth from macro slowdowns. SPSC grew revenue 20% and earnings per share by 22% in their most recent quarter."
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SPS Commerce, Inc. (NASDAQ:SPSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held SPS Commerce, Inc. (NASDAQ:SPSC) at the end of first quarter which was 22 in the previous quarter.
We discussed SPS Commerce, Inc. (NASDAQ:SPSC) in another article and shared Alger Weatherbie Specialized Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
