Company delivers 93rd consecutive quarter of topline growth Revenue and recurring revenue growth of 19% year-over-year MINNEAPOLIS, April 25, 2024 (GLOBE NEWSWIRE) --  SPS Commerce, Inc. (NASDAQ:SPSC), a leader in retail supply chain cloud services, today announced financial results for the first quarter ended March 31, 2024. Financial Highlights First Quarter 2024 Financial Highlights Revenue was $149.6 million in the first quarter of 2024, compared to $125.9 million in the first quarter of 2023, reflecting 19% growth. Recurring revenue grew 19% from the first quarter of 2023. Net income was $18.0 million or $0.48 per diluted share, compared to net income of $15.3 million or $0.41 per diluted share in the first quarter of 2023. Non-GAAP income per diluted share was $0.86, compared to non-GAAP income per diluted share of $0.67 in the first quarter of 2023. Adjusted EBITDA for the first quarter of 2024 increased 20% to $44.4 million compared to the first quarter of 2023. Share repurchases in the first quarter of 2024 totaled $20 million. "SPS' vast network and go-to-market strategy are unique differentiators of our business model, evidenced by our strong channel partnerships and longstanding customer relationships," said Chad Collins, CEO of SPS Commerce. "Ongoing investments in supply chain management, coupled with SPS' competitive position underscore our conviction in the growth opportunity ahead of us." "SPS Commerce delivered a strong start to the year and the 93rd consecutive quarter of revenue growth," said Kim Nelson, CFO of SPS Commerce.   "As we capitalize on ongoing opportunities across our addressable markets, we continue to invest in our solutions and customer experience to strengthen our competitive position across the largest network of trading partners in the retail supply chain." Guidance Second Quarter 2024 Guidance Revenue is expected to be in the range of $150.9 million to $151.7 million. Net income per diluted share is expected to be in the range of $0.45 to $0.46, with fully diluted weighted average shares outstanding of 37.9 million shares. Non-GAAP income per diluted share is expected to be in the range of $0.75 to $0.76. Adjusted EBITDA is expected to be in the range of $43.4 million to $44.1 million. Non-cash, share-based compensation expense is expected to be $11.7 million, depreciation expense is expected to be $4.7 million, and amortization expense is expected to be $4.6 million. Fiscal Year 2024 Guidance Revenue is expected to be in the range of $619.9 million to $621.9 million, representing 15% to 16% growth over 2023. Net income per diluted share is expected to be in the range of $1.99 to $2.02, with fully diluted weighted average shares outstanding of 37.9 million shares. Non-GAAP income per diluted share is expected to be in the range of $3.28 to $3.32. Adjusted EBITDA is expected to be in the range of $185.1 to $186.7 million, representing 17% to 18% growth over 2023. Non-cash, share-based compensation expense is expected to be $56.1 million, depreciation expense is expected to be $19.5 million, and amortization expense is expected to be $18.1 million. The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. Quarterly Conference Call To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q1 2024 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu.   The replay will also be available on our website at http://investors.spscommerce.com. About SPS Commerce SPS Commerce is the world's leading retail network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service and accessible experts so our customers can focus on what they do best. To date, more than 120,000 companies in retail, grocery, distribution, supply, and logistics have chosen SPS as their retail network. SPS has achieved 93 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com. SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries.  SPS-F Use of Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations. Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release. Adjusted EBITDA Measures: Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from foreign currency on cash and investments held, investment income, and other adjustments as necessary for a fair presentation. Net income is the comparable GAAP measure of financial performance. Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue. Non-GAAP Income Per Share Measure: Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from foreign currency on cash and investments held, other adjustments as necessary for a fair presentation, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments. Forward-Looking Statements This press release may contain forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the second quarter and full year of 2024, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2023, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. SPS COMMERCE, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except shares)   March 31,2024   December 31,2023 ASSETS (unaudited)     Current assets       Cash and cash equivalents $ 234,637     $ 219,081   Short-term investments   56,174       56,359   Accounts receivable   55,724       50,160   Allowance for credit losses   (3,589 )     (3,320 ) Accounts receivable, net   52,135       46,840   Deferred costs   63,647       62,403   Other assets   13,695       16,758   Total current assets   420,288       401,441   Property and equipment, net   34,971       36,043   Operating lease right-of-use assets   7,285       7,862   Goodwill   248,813       249,176   Intangible assets, net   99,289       107,344   Other assets       Deferred costs, non-current   20,601       20,347   Deferred income tax assets   7,483       505   Other assets, non-current   1,117       1,126   Total assets $ 839,847     $ 823,844   LIABILITIES AND STOCKHOLDERS' EQUITY       Current liabilities       Accounts payable $ 12,303     $ 7,420   Accrued compensation   32,990       41,588   Accrued expenses   10,744       8,014   Deferred revenue   73,701       69,187   Operating lease liabilities   4,478       4,460   Total current liabilities   134,216       130,669   Other liabilities       Deferred revenue, non-current   6,473       6,930   Operating lease liabilities, non-current   8,425       9,569   Deferred income tax liabilities   7,536       8,972