Overview

* SPS Commerce ( SPSC ) Q2 revenue grows 22% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q2 rises 27%, surpassing analyst estimates

* Company repurchased $20 mln in shares, indicating confidence in growth

Outlook

* Company expects Q3 revenue between $191.7 mln and $193.2 mln

* SPS Commerce ( SPSC ) sees FY 2025 revenue between $759 mln and $763 mln

* Company anticipates Q3 adjusted EBITDA between $57.9 mln and $59.9 mln

* SPS Commerce ( SPSC ) forecasts FY 2025 net income per share $2.17 to $2.22

Result Drivers

* RECURRING REVENUE - Recurring revenue grew 24% from Q2 2024, driven by demand for EDI solutions

* PRODUCT PORTFOLIO - CEO Chad Collins attributes growth to a product portfolio that enhances trading partner collaboration

* MARKET POSITION - CFO Kim Nelson cites strong operating leverage and resilience as key to capitalizing on growth opportunities

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $187.40 $185.80

Revenue mln mln (10

Analysts

)

Q2 Net $19.70

Income mln

Q2 Beat $56.10 $54.10

Adjusted mln mln (10

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "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 ( SPSC ) is $175.00, about 19.9% above its July 29 closing price of $140.10

* The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release:

(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.)