SPS Commerce (SPSC) Tops Q4 EPS by 6c, Revenues Beat; Offers 1Q & FY21 Revenue Guidance Above Consensus, Provides 1Q & FY21 EPS Outlook

SPS Commerce (NASDAQ: SPSC) reported Q4 EPS of $0.40, $0.06 better than the analyst estimate of $0.34. Revenue for the quarter came in at $83.3 million versus the consensus estimate of $80.57 million.

“Throughout 2020 SPS Commerce was instrumental in driving efficiency in the retail supply chain,” said Archie Black, President and CEO of SPS Commerce. “During the year, we grew net new customer adds by 27% as our Fulfillment solution gained momentum, and volume of drop ship orders filled through our network more than doubled as compared to pre-pandemic levels. We remain committed to supporting our customers through their digital transformation as we all work together to improve the e-commerce experience for trading partners and consumers.”

“SPS Commerce delivered strong fourth quarter and full year 2020 results,” said Kim Nelson, CFO of SPS Commerce. “With retail dynamics accelerating the shift to e-commerce and driving increased demand for EDI, we are excited about our growth opportunities across a multibillion-dollar TAM, while we continue to deliver strong operating leverage, targeting a long-term adjusted EBITDA margin of 35%.”

GUIDANCE:

SPS Commerce sees Q1 2021 EPS of $0.36-$0.37, versus the consensus of $0.38. SPS Commerce sees Q1 2021 revenue of $86.8-87.8 million, versus the consensus of $85.82 million.

SPS Commerce sees FY2021 EPS of $1.58-$1.62, versus the consensus of $1.59. SPS Commerce sees FY2021 revenue of $363-366 million, versus the consensus of $357.34 million.

• First quarter 2021 revenue is expected to be in the range of $86.8 million to $87.8 million. Full year 2021 revenue is expected to be in the range of $363.0 million to $366.0 million, representing approximately 16% to 17% growth over 2020.
• First quarter 2021 net income per diluted share is expected to be in the range of $0.18 to $0.19 with fully diluted weighted average shares outstanding of approximately 37.0 million shares. Full year 2021 net income per diluted share is expected to be in the range of $0.87 to $0.91 with fully diluted weighted average shares outstanding of approximately 37.1 million shares.
• First quarter 2021 non-GAAP net income per diluted share is expected to be in the range of $0.36 to $0.37. Full year 2021 non-GAAP net income per diluted share is expected to be in the range of $1.58 to $1.62.
• First quarter 2021 Adjusted EBITDA is expected to be in the range of $23.3 to $24.0 million. Full year 2021 Adjusted EBITDA is expected to be in the range of $100.0 million to $102.0 million, representing approximately 15% to 17% growth over 2020.
• First quarter 2021 non-cash, share-based compensation expense is expected to be approximately $7.0 million. Depreciation expense is expected to be approximately $4.0 million and amortization expense is expected to be approximately $2.7 million.
• Full year 2021 non-cash, share-based compensation expense is expected to be approximately $27.0 million. Depreciation expense is expected to be approximately $16.0 million and amortization expense is expected to be approximately $10.5 million.
• For 2021, we expect an annual effective tax rate of approximately 30%.

For earnings history and earnings-related data on SPS Commerce (SPSC) click here.

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