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Investing.com -- SPS Commerce , Inc. (NASDAQ:SPSC) reported better-than-expected first quarter results and raised its full-year guidance, sending shares up 2.5% in after-hours trading.
The retail supply chain cloud services provider posted adjusted earnings per share of $1.00 for Q1 2025, surpassing analyst estimates of $0.85. Revenue came in at $181.5 million, beating the consensus of $179.57 million and representing 21% growth YoY. Recurring revenue, a key metric for the company, grew 23% compared to the same quarter last year.
SPS Commerce CEO Chad Collins highlighted the company’s strong market position, stating, "With an $11 billion total addressable market, we have a tremendous opportunity to transform how trading partners work together as they continue to advance their supply chain technologies."
For the second quarter, SPS Commerce expects revenue between $184.5 million and $186.2 million, slightly below the consensus of $186 million. However, the company raised its full-year 2025 outlook, now projecting revenue of $758.5 million to $763 million, above the previous analyst consensus of $757.8 million.
CFO Kim Nelson expressed confidence in the company’s outlook, noting, "Despite ongoing uncertainty in the macro environment, we remain confident in our full-year 2025 growth outlook and margin expansion profile."
The company also reported strong cash flow, with $54.4 million in adjusted EBITDA for Q1, up 22% YoY. SPS Commerce repurchased $40 million worth of shares during the quarter, demonstrating confidence in its financial position.
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