The 10-second takeaway
For the quarter ended March 31 (Q1), SPS Commerce beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped.
Margins dropped across the board.
SPS Commerce logged revenue of $23.8 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $23.1 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $16.5 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 $0.12. The nine earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. Non-GAAP EPS of $0.12 for Q1 were 33% higher than the prior-year quarter's $0.09 per share. GAAP EPS of $0.01 for Q1 were 50% lower than the prior-year quarter's $0.02 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 70.3%, 280 basis points worse than the prior-year quarter. Operating margin was 0.8%, 200 basis points worse than the prior-year quarter. Net margin was 0.8%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $24.0 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $98.5 million. The average EPS estimate is $0.50.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SPS Commerce is buy, with an average price target of $44.00.
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