SPS Commerce Inc (NAS:SPSC)
$ 139.53 +1.72 (+1.25%) Market Cap: 5.30 Bil Enterprise Value: 5.15 Bil PE Ratio: 65.20 PB Ratio: 6.15 GF Score: 94/100
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Q4 2024 SPS Commerce Inc Earnings Call Transcript

Feb 10, 2025 / 09:30PM GMT
Release Date Price: $177.17 (-0.64%)

Key Points

Positve
  • SPS Commerce Inc (SPSC) reported a strong revenue growth of 19% for the full year 2024, reaching $637.8 million.
  • Recurring revenue grew by 20%, with fulfillment growth at 20% and analytics growth at 8%.
  • The company successfully completed acquisitions, including Vision33's SAP Business One integration technology, Traverse Systems, SupplyPike, and Carbon6, enhancing their product portfolio.
  • SPS Commerce Inc (SPSC) expanded its addressable market to $11.1 billion globally, with $6.5 billion in the US, indicating significant growth potential.
  • The company maintained a strong financial position with total cash and investments of $241 million at the end of 2024.
Negative
  • Analytics growth slowed to 8% in 2024, down from 10% in previous years, indicating potential challenges in this segment.
  • The company's guidance for 2025 suggests a moderation in organic revenue growth, potentially due to macroeconomic factors.
  • There is a risk of customer attrition due to international exposure and tariff uncertainties.
  • The integration of recent acquisitions like Carbon6 and SupplyPike may pose challenges and could be EBITDA margin dilutive in the short term.
  • The company's analytics product is more susceptible to changes in the retail macro environment, which could impact future growth.
Operator

Good day, and welcome to the SPS Commerce Q4 2024 earnings conference call. (Operator Instructions) Please note that this event is being recorded.

I would now like to turn the conference over to Irmina Blaszczyk. Please go ahead.

Irmina Blaszczyk
Blueshirt Group LLC - Managing Director

Thank you, Nick, and good afternoon, everyone, and thank you for joining us on SPS Commerce fourth-quarter and full-year 2024 conference call. We will make certain statements today, including with respect to our expected financial results, go-to-market strategy and efforts designed to increase our traction and penetration with retailers and other customers.

These statements are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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