SPS Commerce Third Quarter 2024 Earnings: Beats Expectations

SPS Commerce (NASDAQ:SPSC) Third Quarter 2024 Results

Key Financial Results

• Revenue: US$163.7m (up 21% from 3Q 2023).
• Net income: US$23.5m (up 39% from 3Q 2023).
• Profit margin: 14% (up from 12% in 3Q 2023). The increase in margin was driven by higher revenue.
• EPS: US$0.63 (up from US$0.46 in 3Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

SPS Commerce Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 22%.

Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US.

Performance of the American Software industry.

The company's shares are down 12% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for SPS Commerce that you need to be mindful of.

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