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. The cloud-based supply chain management solutions provider fell short on revenue expectations and provided disappointing guidance for the full year, spooking investors.

For the third quarter, SPS Commerce reported revenue of $189.904 million, missing the analyst consensus estimate of $191.797 million. Despite beating earnings expectations with adjusted earnings per share of $1.13 compared to the expected $1.00, the revenue miss and cautious outlook overshadowed the positive earnings result.

The company also lowered its full-year 2025 revenue guidance to a range of $751.6 million to $753.6 million, down from its previous forecast of $759 million to $763 million. This reduction in outlook appears to be the primary driver behind the sharp sell-off, as it suggests potential challenges in the company's growth trajectory.

SPS Commerce CEO Chad Collins acknowledged the impact of "ongoing global trade and economic uncertainty" on the company's performance, noting that some customer groups are showing increased scrutiny in their spending. This cautious tone regarding the economic environment likely contributed to investor concerns about future growth prospects.

In an attempt to bolster investor confidence, the company announced a new $100 million share repurchase program and the appointment of Eduardo Rosini as its new Chief Commercial Officer. However, these positive developments were not enough to offset the negative sentiment surrounding the revenue miss and reduced guidance.