SPS Commerce Reports Fourth-Quarter Earnings Beat, Raises Outlook
MINNEAPOLIS, Feb. 27, 2023 - SPS Commerce Inc. (SPSC) reported better-than-expected fourth-quarter earnings and revenue, driven by strong demand for its supply chain software services.
The Minneapolis-based company posted net income of $17.6 million, or 46 cents per diluted share, compared to $16.1 million, or 41 cents per share, in the prior-year period. Excluding stock option expense and amortization costs, adjusted earnings reached 89 cents per share, exceeding analysts' consensus estimate of 87 cents.
Revenue jumped 9.4% year-over-year to $170.9 million, surpassing market expectations of $169.1 million. For the full year, SPS Commerce's revenue increased by 10.3% to $637.8 million.
"We delivered on our financial objectives for the fourth quarter and full year, highlighting the strength of our business model and the resilience of our customer base," said Archie Black, CEO of SPS Commerce.
For the current quarter ending in March, SPS Commerce projects earnings per share between 82 and 84 cents on revenue between $178.5 million and $180 million.
The company also provided its full-year 2023 guidance, forecasting earnings between $3.78 and $3.84 per share on revenue between $758 million and $763 million.
"Our commitment to providing innovative and value-added solutions to our customers positions us well for continued growth in 2023," added Black.