SPS Commerce, Inc. (SPSC) 10-Year Financial Performance & Capital Metrics

SPSC • • Industrial / General

TechnologyInfrastructure SoftwareCloud Infrastructure & Data ManagementData Streaming & Analytics

AboutSPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, suppliers, grocers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment solution that provides fulfillment automation and replaces or augments an organization's existing staff and trading partner electronic communication infrastructure by enabling easy compliance with retailers' rulebooks, automatic, and digital exchange of information among numerous trading partners through various protocols, and greater visibility into the journey of an order; and Analytics solution, which consists of data analytics applications that enables customers to enhance their visibility across supply chains through greater analytics capabilities. In addition, it offers various complimentary products, such as assortment product, which enables accurate order management and rapid fulfillment; and community product that accelerates vendor onboarding and ensures trading partner adoption of new supply chain requirements. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.Show more

Revenue $638M +18.8%
EBITDA $131M +17.1%
Net Income $77M +17.1%
EPS (Diluted) 2.04 +15.9%
Gross Margin 66.96% +1.3%
EBITDA Margin 20.56% -1.4%
Operating Margin 13.94% -3.1%
Net Margin 12.08% -1.5%
ROE 10.12% -7.4%
ROIC 12.25% -9.7%
Debt/Equity 0.01 -30.6%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong 5Y profit CAGR of 18.0%
✓FCF machine: 21.5% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 18.0%
✓Healthy 5Y average net margin of 12.5%

✗Weaknesses

✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y17.43%

5Y17.97%

3Y18.29%

TTM19.28%

Profit (Net Income) CAGR

10Y39.79%

5Y17.98%

3Y20%

TTM8.34%

EPS CAGR

10Y38.18%

5Y16.76%

3Y19.02%

TTM6.7%

ROCE

10Y Avg8.9%

5Y Avg12.09%

3Y Avg12.27%

Latest11.27%

Peer Comparison

Data Streaming & Analytics

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SPSCSPS Commerce, Inc.	3.44B	91.24	44.73	18.78%	11.66%	8.87%	3.99%	0.01
TDCTeradata Corporation	2.88B	30.90	26.64	-4.53%	7.15%	53.88%	9.62%	4.33
TGHLThe GrowHub Limited Class A Ordinary Shares	5.95M	0.40	-4.29	84.4%	-9.95%
CFLTConfluent, Inc.	9.34B	30.53	-28.53	24.03%	-27.32%	-27.18%	0.1%	1.15
YEXTYext, Inc.	924.61M	7.54	-34.27	4.11%	5.89%	17%	5.21%	0.62
RAMPLiveRamp Holdings, Inc.	1.63B	25.62	-2117.36	13.02%	5.15%	4.25%	9.48%	0.04

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	158.52M	193.29M	220.57M	248.24M	279.12M	312.63M	385.28M	450.88M	536.91M	637.76M
Revenue Growth %	0.24%	0.22%	0.14%	0.13%	0.12%	0.12%	0.23%	0.17%	0.19%	0.19%
Cost of Goods Sold+	50.04M	64.35M	73.63M	81.75M	92.24M	99.84M	131.68M	153.06M	182.07M	210.71M
COGS % of Revenue	0.32%	0.33%	0.33%	0.33%	0.33%	0.32%	0.34%	0.34%	0.34%	0.33%
Gross Profit+	108.47M	128.95M	146.94M	166.49M	186.88M	212.79M	253.6M	297.81M	354.84M	427.05M
Gross Margin %	0.68%	0.67%	0.67%	0.67%	0.67%	0.68%	0.66%	0.66%	0.66%	0.67%
Gross Profit Growth %	0.23%	0.19%	0.14%	0.13%	0.12%	0.14%	0.19%	0.17%	0.19%	0.2%
Operating Expenses+	101.45M	121.43M	138.51M	139.76M	148.48M	162.64M	198.51M	226.63M	277.59M	338.17M
OpEx % of Revenue	0.64%	0.63%	0.63%	0.56%	0.53%	0.52%	0.52%	0.5%	0.52%	0.53%
Selling, General & Admin	80.19M	94.71M	110.76M	113.58M	114.86M	126.07M	149.35M	169.11M	207.82M	251.85M
SG&A % of Revenue	0.51%	0.49%	0.5%	0.46%	0.41%	0.4%	0.39%	0.38%	0.39%	0.39%
Research & Development	17.95M	21.98M	23.18M	22.09M	28.3M	31.02M	39.04M	45.75M	53.65M	62.81M
R&D % of Revenue	0.11%	0.11%	0.11%	0.09%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
Other Operating Expenses	-145K	732K	-320K	-720K	5.32M	5.54M	10.13M	11.77M	16.12M	23.51M
Operating Income+	7.02M	7.52M	8.43M	26.73M	38.41M	50.16M	55.09M	71.18M	77.25M	88.88M
Operating Margin %	0.04%	0.04%	0.04%	0.11%	0.14%	0.16%	0.14%	0.16%	0.14%	0.14%
Operating Income Growth %	0.6%	0.07%	0.12%	2.17%	0.44%	0.31%	0.1%	0.29%	0.09%	0.15%
EBITDA+	16.59M	18.85M	20.21M	39.42M	54.84M	68.82M	80M	99.37M	112M	131.11M
EBITDA Margin %	0.1%	0.1%	0.09%	0.16%	0.2%	0.22%	0.21%	0.22%	0.21%	0.21%
EBITDA Growth %	0.28%	0.14%	0.07%	0.95%	0.39%	0.25%	0.16%	0.24%	0.13%	0.17%
D&A (Non-Cash Add-back)	9.57M	11.34M	11.78M	12.69M	16.44M	18.66M	24.91M	28.19M	34.75M	42.23M
EBIT	7.02M	6.38M	9.98M	28.34M	38.41M	50.16M	53.54M	71.32M	77.25M	88.88M
Net Interest Income+	197K	601K	1.03M	2.33M	2.95M	1.1M	278K	0	7.66M	10.58M
Interest Income	197K	601K	1.03M	2.33M	2.95M	1.1M	278K	0	7.66M	10.58M
Interest Expense	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	52K	1.33M	712K	1.61M	3.66M	2.52M	-1.54M	142K	8.31M	10.59M
Pretax Income+	7.08M	8.85M	9.14M	28.34M	42.07M	52.68M	53.54M	71.32M	85.56M	99.48M
Pretax Margin %	0.04%	0.05%	0.04%	0.11%	0.15%	0.17%	0.14%	0.16%	0.16%	0.16%
Income Tax+	2.44M	3.14M	11.58M	4.47M	8.36M	7.09M	8.94M	16.19M	19.74M	22.42M
Effective Tax Rate %	0.66%	0.65%	-0.27%	0.84%	0.8%	0.87%	0.83%	0.77%	0.77%	0.77%
Net Income+	4.64M	5.71M	-2.44M	23.87M	33.71M	45.59M	44.6M	55.13M	65.82M	77.05M
Net Margin %	0.03%	0.03%	-0.01%	0.1%	0.12%	0.15%	0.12%	0.12%	0.12%	0.12%
Net Income Growth %	0.72%	0.23%	-1.43%	10.78%	0.41%	0.35%	-0.02%	0.24%	0.19%	0.17%
Net Income (Continuing)	4.64M	4.96M	351K	23.87M	33.71M	45.59M	44.6M	55.13M	65.82M	77.05M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.14	0.17	-0.07	0.68	0.94	1.26	1.21	1.49	1.76	2.04
EPS Growth %	0.74%	0.21%	-1.41%	10.67%	0.38%	0.34%	-0.04%	0.23%	0.18%	0.16%
EPS (Basic)	0.14	0.17	-0.07	0.69	0.96	1.29	1.24	1.53	1.80	2.07
Diluted Shares Outstanding	34.06M	34.48M	34.71M	35.21M	36M	36.28M	36.96M	36.95M	37.48M	37.86M
Basic Shares Outstanding	33.13M	33.89M	34.37M	34.39M	35.02M	35.23M	35.93M	36.12M	36.65M	37.31M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	166.79M	185.93M	219.46M	249.62M	291.62M	233.37M	352.44M	322.81M	401.44M	381.91M
Cash & Short-Term Investments	129.06M	138.95M	163.32M	178.4M	213.54M	187.48M	257.31M	214.31M	275.44M	241.02M
Cash Only	121.54M	115.88M	123.13M	133.86M	179.25M	149.69M	207.55M	162.89M	219.08M	241.02M
Short-Term Investments	7.52M	23.08M	40.19M	44.54M	34.28M	37.79M	49.76M	51.41M	56.36M	0
Accounts Receivable	17.61M	20.75M	24.9M	27.49M	31.53M	35.48M	34.56M	39.44M	46.84M	52.03M
Days Sales Outstanding	40.56	39.17	41.2	40.42	41.23	41.42	32.74	31.92	31.84	29.78
Inventory	15.09M	19.22M	25.09M	34.5M	0	0	0	0	0	0
Days Inventory Outstanding	110.03	109.05	124.39	154.05	-	-	-	-	-	-
Other Current Assets	20.12M	26.23M	31.24M	43.73M	46.55M	10.41M	60.57M	69.07M	79.16M	88.86M
Total Non-Current Assets+	94.94M	112.43M	116.06M	136.51M	155.82M	293.09M	263.4M	350.1M	422.4M	649.32M
Property, Plant & Equipment	13.62M	15.31M	16.86M	20.96M	39.5M	42.01M	42.75M	44.63M	43.91M	45.74M
Fixed Asset Turnover	11.64x	12.62x	13.09x	11.85x	7.07x	7.44x	9.01x	10.10x	12.23x	13.94x
Goodwill	33.85M	49.78M	51.61M	69.66M	76.84M	134.85M	143.66M	197.28M	249.18M	399.18M
Intangible Assets	15.08M	19.79M	16.53M	22.74M	22.67M	60.23M	58.59M	88.35M	107.34M	181.29M
Long-Term Investments	14.95M	7.49M	5.21M	10.97M	0	2.5M	15.19M	0	0	0
Other Non-Current Assets	6.3M	7.61M	8.31M	1.72M	14.18M	53.3M	3.03M	19.61M	21.47M	22.61M
Total Assets+	261.73M	298.37M	335.52M	386.12M	447.44M	526.46M	615.85M	672.91M	823.84M	1.03B
Asset Turnover	0.61x	0.65x	0.66x	0.64x	0.62x	0.59x	0.63x	0.67x	0.65x	0.62x
Asset Growth %	0.07%	0.14%	0.12%	0.15%	0.16%	0.18%	0.17%	0.09%	0.22%	0.25%
Total Current Liabilities+	24.23M	32.16M	43.15M	56.52M	68.03M	80.13M	102.87M	110.64M	130.67M	146.68M
Accounts Payable	2.16M	2.3M	4.46M	4.44M	4.27M	5.35M	8.33M	11.26M	7.42M	8.58M
Days Payables Outstanding	15.78	13.06	22.13	19.82	16.91	19.57	23.09	26.84	14.88	14.86
Short-Term Debt	0	0	0	0	0	4.7M	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	12.34M	5.06M	19.54M	6.34M	22.3M	9.26M	8.35M	7.45M	41.59M	59.27M
Current Ratio	6.88x	5.78x	5.09x	4.42x	4.29x	2.91x	3.43x	2.92x	3.07x	2.60x
Quick Ratio	6.26x	5.18x	4.50x	3.81x	4.29x	2.91x	3.43x	2.92x	3.07x	2.60x
Cash Conversion Cycle	134.82	135.16	143.46	174.64	-	-	-	-	-	-
Total Non-Current Liabilities+	15.31M	16.94M	15.55M	10.63M	24.53M	25.6M	28.71M	25.2M	25.7M	29.86M
Long-Term Debt	0	0	0	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	20.09M	19.67M	16.43M	13.01M	9.57M	7.88M
Deferred Tax Liabilities	0	1.91M	1.89M	1.38M	1.19M	2.94M	7.14M	7.42M	8.97M	15.54M
Other Non-Current Liabilities	4.31M	4.18M	3.06M	6.74M	405K	0	0	0	229K	241K
Total Liabilities	39.55M	49.1M	58.7M	67.15M	92.56M	105.74M	131.59M	135.84M	156.37M	176.54M
Total Debt+	0	0	0	0	23.87M	24.37M	20.53M	17.29M	14.03M	12.47M
Net Debt	-121.54M	-115.88M	-123.13M	-133.86M	-155.38M	-125.32M	-187.02M	-145.61M	-205.05M	-228.55M
Debt / Equity	-	-	-	-	0.07x	0.06x	0.04x	0.03x	0.02x	0.01x
Debt / EBITDA	-	-	-	-	0.44x	0.35x	0.26x	0.17x	0.13x	0.10x
Net Debt / EBITDA	-7.32x	-6.15x	-6.09x	-3.40x	-2.83x	-1.82x	-2.34x	-1.47x	-1.83x	-1.74x
Interest Coverage	-	-	-	-	-	-	-	-	-	-
Total Equity+	222.19M	249.27M	276.82M	318.97M	354.88M	420.72M	484.26M	537.07M	667.48M	854.69M
Equity Growth %	0.08%	0.12%	0.11%	0.15%	0.11%	0.19%	0.15%	0.11%	0.24%	0.28%
Book Value per Share	6.52	7.23	7.97	9.06	9.86	11.59	13.10	14.53	17.81	22.58
Total Shareholders' Equity	222.19M	249.27M	276.82M	318.97M	354.88M	420.72M	484.26M	537.07M	667.48M	854.69M
Common Stock	17K	17K	17K	18K	36K	37K	38K	38K	39K	40K
Retained Earnings	-39.45M	-33.74M	-19.9M	15.26M	48.97M	93.49M	138.09M	193.22M	259.05M	336.1M
Treasury Stock	0	0	-5.82M	-25.68M	-46.3M	-65.25M	-85.68M	-128.89M	-128.89M	-99.75M
Accumulated OCI	-3.65M	-3.33M	657K	-3.22M	-1.95M	-1.02M	-1.45M	-3.41M	222K	-9.68M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	14.43M	18.77M	31.05M	55.02M	71.79M	88.56M	112.89M	100.05M	132.3M	157.4M
Operating CF Margin %	0.09%	0.1%	0.14%	0.22%	0.26%	0.28%	0.29%	0.22%	0.25%	0.25%
Operating CF Growth %	-0.14%	0.3%	0.65%	0.77%	0.3%	0.23%	0.27%	-0.11%	0.32%	0.19%
Net Income	4.64M	5.71M	-2.44M	23.87M	33.71M	45.59M	44.6M	55.13M	65.82M	77.05M
Depreciation & Amortization	9.57M	11.34M	11.78M	12.69M	16.44M	18.66M	24.91M	28.19M	34.75M	42.23M
Stock-Based Compensation	6.38M	8.02M	12.73M	12.51M	14.69M	18.94M	27.57M	33.4M	0	54.56M
Deferred Taxes	-38K	-1.7M	10.85M	2.8M	7.58M	4.24M	3.88M	-3.73M	-10.08M	-9.79M
Other Non-Cash Items	1.27M	272K	1.69M	2.32M	2.48M	5.55M	5.04M	3.58M	53.63M	8.26M
Working Capital Changes	-7.39M	-4.88M	-3.56M	827K	-3.11M	-4.42M	6.89M	-16.52M	-11.82M	-14.92M
Change in Receivables	-3.52M	-3.73M	-5.59M	-4.57M	-6.77M	-5.92M	-4.96M	-6.43M	-11.95M	-9.65M
Change in Inventory	-2.5M	-921K	1.58M	-3.47M	0	0	0	0	0	0
Change in Payables	-1.57M	-382K	832K	937K	-489K	1.21M	2.26M	144K	-3.95M	796K
Cash from Investing+	-31.28M	-34.16M	-22.62M	-40.47M	-14.31M	-120.47M	-46.7M	-112.79M	-92.64M	-110.45M
Capital Expenditures	-8.76M	-8.01M	-7.27M	-13.75M	-13.59M	-16.47M	-19.59M	-19.88M	-19.76M	-20.05M
CapEx % of Revenue	0.06%	0.04%	0.03%	0.06%	0.05%	0.05%	0.05%	0.04%	0.04%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-22.53M	-8.12M	-14.85M	558K	0	0	0	0	0	0
Cash from Financing+	8.25M	10.11M	-2.47M	-3.77M	-12.14M	2.33M	-8.36M	-31.63M	15.97M	-23.03M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	8.25M	10.11M	3.34M	16.09M	8.48M	21.28M	12.07M	11.58M	-2M	14.54M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	5.67M	10.76M	23.78M	41.27M	58.21M	72.09M	93.31M	80.17M	112.54M	137.35M
FCF Margin %	0.04%	0.06%	0.11%	0.17%	0.21%	0.23%	0.24%	0.18%	0.21%	0.22%
FCF Growth %	-0.38%	0.9%	1.21%	0.74%	0.41%	0.24%	0.29%	-0.14%	0.4%	0.22%
FCF per Share	0.17	0.31	0.69	1.17	1.62	1.99	2.52	2.17	3.00	3.63
FCF Conversion (FCF/Net Income)	3.11x	3.29x	-12.73x	2.30x	2.13x	1.94x	2.53x	1.81x	2.01x	2.04x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	114K	722K	1.07M	1.53M	1.54M	1.66M	9.98M	16.08M	0	27.1M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	2.17%	2.42%	-0.93%	8.01%	10.01%	11.76%	9.86%	10.8%	10.93%	10.12%
Return on Invested Capital (ROIC)	6.02%	4.82%	4.4%	11.83%	14.98%	15.2%	13.94%	15.5%	13.57%	12.25%
Gross Margin	68.43%	66.71%	66.62%	67.07%	66.95%	68.07%	65.82%	66.05%	66.09%	66.96%
Net Margin	2.93%	2.95%	-1.11%	9.62%	12.08%	14.58%	11.58%	12.23%	12.26%	12.08%
Debt / Equity	-	-	-	-	0.07x	0.06x	0.04x	0.03x	0.02x	0.01x
FCF Conversion	3.11x	3.29x	-12.73x	2.30x	2.13x	1.94x	2.53x	1.81x	2.01x	2.04x
Revenue Growth	23.89%	21.94%	14.11%	12.55%	12.44%	12%	23.24%	17.03%	19.08%	18.78%

Frequently Asked Questions

Valuation & Price

SPS Commerce, Inc. (SPSC) has a price-to-earnings (P/E) ratio of 44.7x. This suggests investors expect higher future growth.

Growth & Financials

SPS Commerce, Inc. (SPSC) reported $729.8M in revenue for fiscal year 2024. This represents a 1159% increase from $58.0M in 2011.

SPS Commerce, Inc. (SPSC) grew revenue by 18.8% over the past year. This is strong growth.

Yes, SPS Commerce, Inc. (SPSC) is profitable, generating $85.1M in net income for fiscal year 2024 (12.1% net margin).

Dividend & Returns

SPS Commerce, Inc. (SPSC) has a return on equity (ROE) of 10.1%. This is reasonable for most industries.

SPS Commerce, Inc. (SPSC) generated $148.4M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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