Company delivers 87th consecutive quarter of topline progress
Revenue progress of 17% year-over-year; Recurring income progress of 18% year-over-year
MINNEAPOLIS, Oct. 27, 2022 (GLOBE NEWSWIRE) — SPS Commerce, Inc. (Nasdaq: SPSC), a pacesetter in retail cloud providers, at the moment introduced monetary outcomes for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights
- Revenue was $114.5 million within the third quarter of 2022, in comparison with $97.9 million within the third quarter of 2021, reflecting 17% progress.
- Recurring income grew 18% from the third quarter of 2021.
- Net earnings was $15.9 million or $0.43 per diluted share, in comparison with web earnings of $11.4 million or $0.31 per diluted share within the third quarter of 2021.
- Non-GAAP earnings per diluted share was $0.63, in comparison with non-GAAP earnings per diluted share of $0.47 within the third quarter of 2021.
- Adjusted EBITDA for the third quarter of 2022 elevated 31% to $34.7 million in comparison with the third quarter of 2021.
“For suppliers and retailers alike, automation is key to improving efficiency. SPS Commerce facilitates automation, enables integration with a range of e-commerce platforms, and future proofs against new process and technology requirements,” stated Archie Black, CEO of SPS Commerce. “We continue to believe that increasing complexity in omnichannel retail will continue to fuel the need for automation between trading partners and throughout the supply chain.”
“SPS Commerce’s leading solutions and our growing network of trading partners across various industries continue to solidify our competitive position, strengthening our ability to capitalize on our large and expanding market opportunity, and deliver consistent and profitable growth,” stated Kim Nelson, CFO of SPS Commerce.
Guidance
Fourth Quarter 2022 Guidance
- Revenue is anticipated to be within the vary of $120.0 million to $121.0 million.
- Net earnings per diluted share is anticipated to be within the vary of $0.29 to $0.30, with totally diluted weighted common shares excellent of 37.2 million shares.
- Non-GAAP earnings per diluted share is anticipated to be within the vary of $0.52 to $0.53.
- Adjusted EBITDA is anticipated to be within the vary of $32.8 million to $33.5 million.
- Non-cash, share-based compensation expense is anticipated to be $8.3 million, depreciation expense is anticipated to be $4.8 million, and amortization expense is anticipated to be $3.8 million.
Full Year 2022 Guidance
- Revenue is anticipated to be within the vary of $448.9 million to $449.9 million, representing 17% progress over 2021.
- Net earnings per diluted share is anticipated to be within the vary of $1.35 to $1.36, with totally diluted weighted common shares excellent of 37.0 million shares.
- Non-GAAP earnings per diluted share is anticipated to be within the vary of $2.23 to $2.24.
- Adjusted EBITDA is anticipated to be within the vary of $130.1 to $130.8 million, representing 22% progress over 2021.
- Non-cash, share-based compensation expense is anticipated to be $33.9 million, depreciation expense is anticipated to be $16.8 million, and amortization expense is anticipated to be $11.7 million.
Quarterly Conference Call
To entry the decision, please dial 1-866-652-5200, or outdoors the U.S. 1-412-317-6060 a minimum of quarter-hour previous to the three:30 p.m. CT begin time. Please ask to be joined into the SPS Commerce Q3 2022 convention name. A dwell webcast of the decision can even be out there at http://investors.spscommerce.com under the Events and Presentations menu. The replay can even be out there on our web site at http://investors.spscommerce.com.
About SPS Commerce
SPS Commerce is the world’s main retail community, connecting buying and selling companions across the globe to optimize provide chain operations for all retail companions. We assist data-driven partnerships with modern cloud expertise, customer-obsessed service and accessible specialists so our clients can concentrate on what they do greatest. To date, greater than 105,000 firms in retail, distribution, grocery and e-commerce have chosen SPS as their retail community. SPS has achieved 87 consecutive quarters of income progress and is headquartered in Minneapolis. For extra info, contact SPS at 866-245-8100 or go to www.spscommerce.com.
SPS COMMERCE, SPS, SPS brand, 1=INFINITY brand, AS THE NETWORK GROWS, SO DOES YOUR OPPORTUNITY, INFINITE RETAIL POWER, MASTERING THE RETAIL GAME and RSX are marks of SPS Commerce, Inc. and Registered within the U.S. Patent and Trademark Office. IN:FLUENCE, and others are additional marks of SPS Commerce, Inc. These marks could also be registered or in any other case protected in different international locations.
SPS-F
Use of Non-GAAP Financial Measures
To complement our monetary statements, we offer buyers with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP earnings per share, all of that are non-GAAP monetary measures. We imagine that these non-GAAP measures present helpful info to our administration, board of administrators, and buyers relating to sure monetary and business traits referring to our monetary situation and outcomes of operations.
Our administration makes use of these non-GAAP measures to match our efficiency to that of prior intervals for pattern analyses and planning functions. Adjusted EBITDA can be used for functions of figuring out govt and senior administration incentive compensation. We imagine these non-GAAP monetary measures are helpful to an investor as they’re broadly utilized in evaluating working efficiency. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure working efficiency with out regard to gadgets akin to depreciation and amortization, which may range relying upon accounting strategies and the ebook worth of property, and to current a significant measure of company efficiency unique of capital construction and the strategy by which property have been acquired.
These non-GAAP measures shouldn’t be thought-about an alternative choice to, or superior to, monetary measures calculated in accordance with GAAP. These non-GAAP monetary measures exclude vital bills and earnings which can be required by GAAP to be recorded in our monetary statements and are topic to inherent limitations. Investors ought to evaluate the reconciliations of non-GAAP monetary measures to the comparable GAAP monetary measures which can be included on this press launch.
Adjusted EBITDA Measures:
Adjusted EBITDA consists of web earnings adjusted for earnings tax expense, depreciation and amortization expense, stock-based compensation expense, realized achieve or loss from international forex on money and investments held, funding earnings or loss, and different changes as vital for a good presentation.
Adjusted EBITDA Margin consists of Adjusted EBITDA divided by income. Margin, the comparable GAAP measure of economic efficiency, consists of web earnings divided by income.
Non-GAAP Income Per Share Measure:
Non-GAAP earnings per share consists of web earnings adjusted for stock-based compensation expense, amortization expense associated to intangible property, realized achieve or loss from international forex on money and investments held, different changes as vital for a good presentation, and the corresponding tax impacts of the changes to web earnings, divided by the weighted common variety of shares of frequent and diluted inventory excellent throughout every interval.
To quantify the tax results, we recalculated earnings tax expense excluding the direct ebook and tax results of the precise gadgets constituting the non-GAAP changes. The distinction between this recalculated earnings tax expense and GAAP earnings tax expense is introduced because the earnings tax impact of the non-GAAP changes.
Forward-Looking Statements
This press launch could comprise forward-looking statements, together with details about administration’s view of SPS Commerce’s future expectations, plans and prospects, together with our views relating to future execution inside our business, the chance we see within the retail provide chain world and our efficiency for the fourth quarter and full yr of 2022, throughout the secure harbor provisions beneath The Private Securities Litigation Reform Act of 1995. These statements contain identified and unknown dangers, uncertainties and different components which can trigger the outcomes of SPS Commerce to be materially completely different than these expressed or implied in such statements. Certain of those threat components and others are included in paperwork SPS Commerce information with the Securities and Exchange Commission, together with however not restricted to, SPS Commerce’s Annual Report on Form 10-Ok for the yr ended December 31, 2021, in addition to subsequent studies filed with the Securities and Exchange Commission. Other unknown or unpredictable components additionally might have materials antagonistic results on SPS Commerce’s future outcomes. The forward-looking statements included on this press launch are made solely as of the date hereof. SPS Commerce can’t assure future outcomes, ranges of exercise, efficiency or achievements. Accordingly, you shouldn’t place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions, or in any other case.
SPS COMMERCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in 1000’s, besides shares)
| September 30, 2022 |
December 31, 2021 |
||
| ASSETS | |||
| Current property | |||
| Cash and money equivalents | $ 186,230 | $ 207,552 | |
| Short-term investments | 50,928 | 49,758 | |
| Accounts receivable | 40,445 | 38,811 | |
| Allowance for credit score losses | (3,658) | (4,249) | |
| Accounts receivable, web | 36,787 | 34,562 | |
| Deferred prices | 50,082 | 44,529 | |
| Other property | 15,246 | 16,042 | |
| Total present property | 339,273 | 352,443 | |
| Property and tools, web | 32,923 | 31,901 | |
| Operating lease right-of-use property | 9,760 | 10,851 | |
| Goodwill | 165,908 | 143,663 | |
| Intangible property, web | 70,742 | 58,587 | |
| Other property | |||
| Deferred prices, non-current | 16,474 | 15,191 | |
| Deferred earnings tax property | 223 | 182 | |
| Other property, non-current | 1,787 | 3,028 | |
| Total property | $ 637,090 | $ 615,846 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current liabilities | |||
| Accounts payable | $ 8,200 | $ 8,330 | |
| Accrued compensation | 28,779 | 31,661 | |
| Accrued bills | 5,202 | 8,345 | |
| Deferred income | 58,949 | 50,428 | |
| Operating lease liabilities | 4,336 | 4,108 | |
| Total present liabilities | 105,466 | 102,872 | |
| Other liabilities | |||
| Deferred income, non-current | 5,146 | 5,144 | |
| Operating lease liabilities, non-current | 13,974 | 16,426 | |
| Deferred earnings tax liabilities | 4,841 | 7,145 | |
| Total liabilities | 129,427 | 131,587 | |
| Commitments and contingencies | |||
| Stockholders’ fairness | |||
| Preferred inventory, $0.001 par worth; 5,000,000 shares licensed; 0 shares issued and excellent | — | — | |
| Common inventory, $0.001 par worth; 110,000,000 shares licensed; 38,184,747 and 37,798,610 shares issued; and 36,037,964 and 36,009,257 shares excellent, respectively | 38 | 38 | |
| Treasury Stock, at value; 2,146,783 and 1,789,353 shares, respectively | (128,377) | (85,677) | |
| Additional paid-in capital | 463,356 | 433,258 | |
| Retained earnings | 177,306 | 138,087 | |
| Accumulated different complete loss | (4,660) | (1,447) | |
| Total stockholders’ fairness | 507,663 | 484,259 | |
| Total liabilities and stockholders’ fairness | $ 637,090 | $ 615,846 |
SPS COMMERCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited; in 1000’s, besides per share quantities)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Revenues | $ 114,486 | $ 97,887 | $ 328,857 | $ 282,520 | |||
| Cost of revenues | 38,605 | 34,343 | 111,524 | 96,043 | |||
| Gross revenue | 75,881 | 63,544 | 217,333 | 186,477 | |||
| Operating bills | |||||||
| Sales and advertising | 25,334 | 22,079 | 74,571 | 65,386 | |||
| Research and growth | 11,135 | 10,854 | 33,268 | 28,459 | |||
| General and administrative | 16,724 | 14,691 | 49,390 | 45,186 | |||
| Amortization of intangible property | 2,998 | 2,399 | 7,936 | 7,734 | |||
| Total working bills | 56,191 | 50,023 | 165,165 | 146,765 | |||
| Income from operations | 19,690 | 13,521 | 52,168 | 39,712 | |||
| Other expense, web | (695) | (716) | (1,610) | (1,424) | |||
| Income earlier than earnings taxes | 18,995 | 12,805 | 50,558 | 38,288 | |||
| Income tax expense | 3,132 | 1,356 | 11,339 | 6,456 | |||
| Net earnings | $ 15,863 | $ 11,449 | $ 39,219 | $ 31,832 | |||
| Net earnings per share | |||||||
| Basic | $ 0.44 | $ 0.32 | $ 1.09 | $ 0.89 | |||
| Diluted | $ 0.43 | $ 0.31 | $ 1.06 | $ 0.86 | |||
| Weighted common frequent shares used to compute web earnings per share | |||||||
| Basic | 36,093 | 35,961 | 36,104 | 35,873 | |||
| Diluted | 36,915 | 37,015 | 36,942 | 36,898 | |||
SPS COMMERCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in 1000’s)
| Nine Months Ended September 30, |
|||
| 2022 | 2021 | ||
| Cash flows from working actions | |||
| Net earnings | $ 39,219 | $ 31,832 | |
| Reconciliation of web earnings to web money supplied by working actions | |||
| Deferred earnings taxes | (2,092) | 1,013 | |
| Depreciation and amortization of property and tools | 11,983 | 10,989 | |
| Amortization of intangible property | 7,936 | 7,734 | |
| Provision for credit score losses | 2,889 | 4,037 | |
| Stock-based compensation | 25,636 | 21,273 | |
| Other, web | 43 | 234 | |
| Changes in property and liabilities, web of results of acquisition | |||
| Accounts receivable | (3,999) | (5,327) | |
| Deferred prices | (7,174) | (5,686) | |
| Other present and non-current property | 2,202 | (3,893) | |
| Accounts payable | 129 | (1,518) | |
| Accrued compensation | (4,388) | 6,617 | |
| Accrued bills | (3,035) | (174) | |
| Deferred income | 8,261 | 13,401 | |
| Operating leases | (1,127) | 1,036 | |
| Net money supplied by working actions | 76,483 | 81,568 | |
| Cash flows from investing actions | |||
| Purchases of property and tools | (13,894) | (15,567) | |
| Purchases of investments | (134,276) | (84,020) | |
| Maturities of investments | 132,500 | 67,500 | |
| Acquisition of business, web | (44,923) | — | |
| Net money utilized in investing actions | (60,593) | (32,087) | |
| Cash flows from financing actions | |||
| Repurchases of frequent inventory | (42,700) | (10,661) | |
| Net proceeds from train of choices to buy frequent inventory | 2,457 | 7,027 | |
| Net proceeds from worker inventory buy plan exercise | 3,588 | 2,316 | |
| Payments for contingent consideration | — | (2,042) | |
| Net money utilized in financing actions | (36,655) | (3,360) | |
| Effect of international forex alternate price modifications | (557) | (10) | |
| Net enhance (lower) in money and money equivalents | (21,322) | 46,111 | |
| Cash and money equivalents at starting of interval | 207,552 | 149,692 | |
| Cash and money equivalents at finish of interval | $ 186,230 | $ 195,803 | |
SPS COMMERCE, INC.
NON-GAAP RECONCILIATION
(Unaudited; in 1000’s, besides per share quantities)
| Adjusted EBITDA | |||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Net earnings | $ 15,863 | $ 11,449 | $ 39,219 | $ 31,832 | |||
| Income tax expense | 3,132 | 1,356 | 11,339 | 6,456 | |||
| Depreciation and amortization of property and tools | 4,169 | 3,695 | 11,983 | 10,989 | |||
| Amortization of intangible property | 2,998 | 2,399 | 7,936 | 7,734 | |||
| Stock-based compensation expense | 7,960 | 6,849 | 25,636 | 21,273 | |||
| Realized loss from international forex on money and investments held | 1,151 | 854 | 2,010 | 1,492 | |||
| Investment earnings | (586) | (66) | (806) | (242) | |||
| Other | — | — | — | (213) | |||
| Adjusted EBITDA | $ 34,687 | $ 26,536 | $ 97,317 | $ 79,321 | |||
| Adjusted EBITDA Margin | |||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Revenue | $ 114,486 | $ 97,887 | $ 328,857 | $ 282,520 | |||
| Net earnings | 15,863 | 11,449 | 39,219 | 31,832 | |||
| Margin | 14 % | 12 % | 12 % | 11 % | |||
| Adjusted EBITDA | 34,687 | 26,536 | 97,317 | 79,321 | |||
| Adjusted EBITDA Margin | 30 % | 27 % | 30 % | 28 % | |||
| Non-GAAP Income | |||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Net earnings | $ 15,863 | $ 11,449 | $ 39,219 | $ 31,832 | |||
| Stock-based compensation expense | 7,960 | 6,849 | 25,636 | 21,273 | |||
| Amortization of intangible property | 2,998 | 2,399 | 7,936 | 7,734 | |||
| Realized loss from international forex on money and investments held | 1,151 | 854 | 2,010 | 1,492 | |||
| Other | — | — | — | (213) | |||
| Income tax results of changes | (4,866) | (4,178) | (11,576) | (12,152) | |||
| Non-GAAP earnings | $ 23,106 | $ 17,373 | $ 63,225 | $ 49,966 | |||
| Shares used to compute non-GAAP earnings per share | |||||||
| Basic | 36,093 | 35,961 | 36,104 | 35,873 | |||
| Diluted | 36,915 | 37,015 | 36,942 | 36,898 | |||
| Non-GAAP earnings per share | |||||||
| Basic | $ 0.64 | $ 0.48 | $ 1.75 | $ 1.39 | |||
| Diluted | $ 0.63 | $ 0.47 | $ 1.71 | $ 1.35 | |||
Contact:
Investor Relations
The Blueshirt Group
Irmina Blaszczyk & Lisa Laukkanen
[email protected]
415-217-4962
