SPS Commerce ( (SPSC) ) has released its Q1 earnings. Here is a breakdown of the information SPS Commerce presented to its investors.
SPS Commerce, Inc., headquartered in Minneapolis, is a leading provider of retail supply chain cloud services, connecting over 50,000 suppliers, logistics companies, and buying organizations across various sectors including retail, distribution, grocery, and manufacturing.
The company has reported its financial results for the first quarter of 2025, marking its 97th consecutive quarter of revenue growth. SPS Commerce achieved a revenue increase of 21% compared to the same period last year, with recurring revenue growing by 23%.
Key financial highlights include a revenue of $181.5 million, up from $149.6 million in the previous year. The net income for the quarter was $22.2 million, or $0.58 per diluted share, compared to $18.0 million or $0.48 per diluted share a year ago. The company also reported a 22% increase in adjusted EBITDA, reaching $54.4 million, and executed share repurchases totaling $40 million.
Looking ahead, SPS Commerce expects continued growth in the second quarter of 2025, with revenue projected to be between $184.5 million and $186.2 million, representing a 20% to 21% year-over-year increase. The company remains optimistic about its full-year 2025 growth outlook and margin expansion, highlighting the resilience of its business model and the critical nature of its solutions in the global retail supply chain.