Overview
SPS Commerce Q3 revenue grows 16% yr/yr but misses analyst expectations
Adjusted EBITDA for Q3 beats analyst estimates, indicating strong operational performance
Company announces new $100 mln share repurchase program, indicating confidence in future growth
Outlook
SPS Commerce expects Q4 2025 revenue between $192.7 mln and $194.7 mln
Company anticipates FY 2025 revenue of $751.6 mln to $753.6 mln
SPS Commerce forecasts Q4 2025 non-GAAP EPS of $0.98 to $1.02
Company projects FY 2025 adjusted EBITDA of $229.7 mln to $231.7 mln
Result Drivers
RECURRING REVENUE GROWTH - Recurring revenue increased by 18% from Q3 2024, contributing to overall revenue growth
SUPPLY CHAIN EFFICIENCIES - CEO Chad Collins highlighted the need for supply chain efficiencies as a driver for growth despite economic uncertainty
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $189.90 mln | $191.80 mln (10 Analysts) |
Q3 Net Income | $25.60 mln | ||
Q3 Adjusted EBITDA | Beat | $60.50 mln | $59.30 mln (9 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for SPS Commerce Inc is $142.50, about 26.2% above its October 29 closing price of $105.18
Press Release: ID:nGNX8YPm2l
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)