SPS Commerce Posts Positive Fourth Quarter And Solid Guidance


SPSSPSC Commerce (NASDAQ:SPSC) today reported solid fourth-quarter results, with revenue coming in $800,000 above consensus and non-GAAP EPS $0.04 better than the Street. The company’s recurring revenue growth saw a nice sequential increase from the prior quarter and grew 28% reported and 24% organically. The performance was fairly evenly split between customer additions and annualized average revenue per customer growth. The company also provided 2015 revenue guidance that was $1.4 million above the Street at the midpoint and non-GAAP EPS guidance that was in line with consensus.

Fourth-Quarter Highlights

  • Revenue – Recurring revenue advanced 28% in the quarter. The growth was above the prior period’s result of 22% and the year-ago quarter’s 24%. Total revenue of $35.4 million was above management’s guidance of $34.3 million-$34.8 million and roughly $800,000 above the Street mean of $34.6 million.
  • EPS  Adjusted EPS of $0.18 were above guidance of $0.13 to $0.14 and the Street mean of $0.14.
  • Operating Cash Flow  Operating cash flow in the quarter of $5.2 million was up from $2.1 million in the year-ago period. Subtracting roughly $3.2 million in capital expenditures, free cash flow of $2.0 million was above the prior year’s result of $1.5 million. The company ended the quarter with $130.8 million in cash and investments, down from $140.8 million last period due to the acquisition of Leadtec.

First Quarter 2015 Guidance

  • Revenue – Management set total revenue guidance at $35.7 million to $36.2 million, reflecting growth of 23% to 25%, in line with the Street mean of $35.7 million.
  • EPS  Adjusted EPS are projected to be $0.16 to $0.18. The Street mean was $0.16 before the call.

Full Year 2015 Guidance

  • Revenue – SPS expects full-year total revenue to be $155.0 million to $157.0 million, above the Street mean of $154.6 million.
  • EPS  The company expects full-year adjusted EPS to be $0.75-$0.78, in line with the Street mean of $0.75.

Shares of SPS Commerce closed today at $62.99. SPSC has a 1-year high of $71.82 and a 1-year low of $43.84. The stock’s 50-day moving average is $57.65 and its 200-day moving average is $56.34.