The 10-second takeaway
For the quarter ended March 31 (Q1), SPS Commerce met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Margins shrank across the board.
SPS Commerce reported revenue of $16.5 million. The eight analysts polled by S&P Capital IQ looked for a top line of $16.5 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $12.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The six earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.02 for Q1 were 50% lower than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.1%, 60 basis points worse than the prior-year quarter. Operating margin was 2.8%, 120 basis points worse than the prior-year quarter. Net margin was 1.5%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $17.1 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $70.3 million. The average EPS estimate is $0.41.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SPS Commerce is outperform, with an average price target of $31.43.
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