- SPS Commerce (SPSC, Financial) reports its 97th consecutive quarter of revenue growth.
- Revenue for Q1 2025 increased by 21% to $181.5 million, with a 23% rise in recurring revenue.
- Net income for Q1 2025 climbed to $22.2 million or $0.58 per diluted share.
SPS Commerce (SPSC), a leader in retail supply chain cloud services, has announced robust financial results for the first quarter of 2025, marking its 97th consecutive quarter of growth. For the quarter ending March 31, 2025, the company's revenue soared 21% year-over-year to $181.5 million, compared to $149.6 million in Q1 2024. The growth was underpinned by a substantial 23% increase in recurring revenues, highlighting the strength of SPS Commerce's business model and its resilience in the retail supply chain sector.
The company also reported a net income of $22.2 million for the quarter, equating to $0.58 per diluted share, up from $18.0 million or $0.48 per diluted share in the prior year period. Non-GAAP income per diluted share rose to $1.00 from $0.86 in Q1 2024, while Adjusted EBITDA experienced a 22% year-over-year boost, reaching $54.4 million. This indicates robust operational efficiency within the company.
For the full fiscal year 2025, SPS Commerce has set optimistic guidance, projecting revenue between $758.5 million and $763.0 million, reflecting a 19-20% growth compared to 2024. The company expects Adjusted EBITDA to range between $229.4 million and $232.9 million, with anticipated increases of 23-25% over the previous year. This positive forecast underscores SPS Commerce's stable market position and its ability to capitalize on its expansive $11 billion total addressable market.
Despite macroeconomic uncertainties, SPS Commerce continues to thrive as it maintains a strong network of over 50,000 suppliers, logistics companies, and buying organizations across various sectors including retail, grocery, distribution, and manufacturing. CEO Chad Collins emphasized the mission-critical nature of their solutions in supporting global retail supply chains, a sentiment echoed by CFO Kim Nelson.
Significantly, the company's actions reflect confidence in its valuation, as demonstrated by the $40 million in share repurchases during the first quarter, aimed at returning capital to shareholders. Investors and analysts alike view SPS Commerce's sustained growth and forward-looking strategies as indicators of its enduring competitiveness and potential for continued success in the supply chain technology market.
