Shares of SPS Commerce (SPSC) plummeted 22.34% in after-hours trading on Thursday following the release of the company's third-quarter earnings report and disappointing guidance. The cloud-based supply chain management solutions provider fell short on revenue expectations and cut its full-year outlook, sparking a significant sell-off.

For the third quarter, SPS Commerce reported revenue of $189.9 million, missing the analyst consensus estimate of $191.8 million. Despite beating earnings expectations with adjusted earnings per share of $1.13 compared to the expected $1.00, the revenue miss overshadowed the positive earnings result. The company's CEO, Chad Collins, noted ongoing global trade and economic uncertainty, as well as budget-conscious behavior from consumers, as factors impacting performance.

Adding to investor concerns, SPS Commerce lowered its full-year 2025 revenue guidance to a range of $751.6 million to $753.6 million, down from the previous forecast of $759 million to $763 million. The company also provided a cautious fourth-quarter revenue outlook of $192.7 million to $194.7 million, which appears to be lower than analyst expectations. This conservative outlook, reflecting concerns about the current economic environment, likely contributed to the sharp sell-off. In an attempt to bolster investor confidence, SPS Commerce announced a new $100 million share repurchase program, but this was not enough to offset the negative sentiment surrounding the revenue miss and reduced guidance.