SPS Commerce, Inc. (Nasdaq: SPSC), a leader in retail cloud services, today announced financial results for the fourth quarter and year ended December 31, 2022.
Financial Highlights
Fourth Quarter 2022 Financial Highlights
- Revenue was $122.0 million in the fourth quarter of 2022, compared to $102.8 million in the fourth quarter of 2021, reflecting 19% growth.
- Recurring revenue grew 20% from the fourth quarter of 2021.
- Net income was $15.9 million or $0.43 per diluted share, compared to net income of $12.8 million or $0.34 per diluted share in the fourth quarter of 2021, reflecting 25% growth in period over period net income.
- Non-GAAP income per diluted share was $0.63, compared to non-GAAP income per diluted share of $0.46 in the fourth quarter of 2021.
- Adjusted EBITDA for the fourth quarter of 2022 increased 26% to $35.0 million compared to the fourth quarter of 2021.
Fiscal Year 2022 Financial Highlights
- Revenue was $450.9 million for the year ended December 31, 2022, compared to $385.3 million for the year ended December 31, 2021, reflecting 17% growth.
- Recurring revenue grew 18% from the year ended December 31, 2021.
- Net income was $55.1 million or $1.49 per diluted share for the year ended December 31, 2022, compared to net income of $44.6 million or $1.21 per diluted share, for the comparable period in 2021, reflecting 24% growth in year over year net income.
- Non-GAAP income per diluted share was $2.35, compared to non-GAAP income per diluted share of $1.82 in the year ended December 31, 2021.
- Adjusted EBITDA for the year ended December 31, 2022 increased 24% to $132.3 million, compared to the year ended December 31, 2021.
“Over the years, SPS Commerce has consistently executed on our mission to connect all retail trading partners through the easiest-to-join and use network,” said Archie Black, CEO of SPS Commerce. “We remained laser focused on improving customer experience and made strategic investments which helped us build the world’s largest cloud retail network and position SPS Commerce for continued success.”
“SPS Commerce achieved strong fourth quarter and full year 2022 results. We continued to deliver profitable growth and invest in the future to capitalize on existing and new opportunities across our expanding addressable market,” said Kim Nelson, CFO of SPS Commerce.
Guidance
First Quarter 2023 Guidance
- Revenue is expected to be in the range of $123.3 million to $124.3 million.
- Net income per diluted share is expected to be in the range of $0.26 to $0.27, with fully diluted weighted average shares outstanding of 37.2 million shares.
- Non-GAAP income per diluted share is expected to be in the range of $0.56 to $0.57.
- Adjusted EBITDA is expected to be in the range of $35.0 million to $35.7 million.
- Non-cash, share-based compensation expense is expected to be $12.0 million, depreciation expense is expected to be $4.8 million, and amortization expense is expected to be $3.9 million.
Fiscal Year 2023 Guidance
- Revenue is expected to be in the range of $523.0 million to $526.0 million, representing 16% to 17% growth over 2022.
- Net income per diluted share is expected to be in the range of $1.49 to $1.55, with fully diluted weighted average shares outstanding of 37.3 million shares.
- Non-GAAP income per diluted share is expected to be in the range of $2.63 to $2.69.
- Adjusted EBITDA is expected to be in the range of $152.5 to $154.5 million, representing 15% to 17% growth over 2022.
- Non-cash, share-based compensation expense is expected to be $45.0 million, depreciation expense is expected to be $19.8 million, and amortization expense is expected to be $15.6 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 be joined into the SPS Commerce Q4 2022 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.
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