SPS Commerce (NASDAQ: SPSC) reported Q4 EPS of $0.25, $0.04 better than the analyst estimate of $0.21. Revenue for the quarter came in at $58.2 million versus the consensus estimate of $57.46 million.

Highlights:

• Revenue was $58.2 million in the fourth quarter of 2017, compared to $51.1 million in the fourth quarter of 2016, reflecting 14% growth in revenue from the fourth quarter of 2016. Recurring revenue grew 15% from the fourth quarter of 2016.
• Net loss in the fourth quarter of 2017 was $9.1 million or $0.53 per diluted share, compared to net income of $1.8 million or $0.10 per diluted share, in the fourth quarter of 2016. The company’s Q4 2017 earnings were impacted by several elements of the Tax Cuts and Jobs Act, which resulted in a discrete tax expense of approximately $8.6 million. The primary driver of this expense was a decrease in our deferred tax assets resulting from a lower corporate federal tax rate of 21%.
• Non-GAAP net income per diluted share was $0.25, compared to non-GAAP net income per diluted share of $0.20 in the fourth quarter of 2016. Adjusted EBITDA for the fourth quarter of 2017 increased 14% to $8.5 million compared to the fourth quarter of 2016.
• “2017 was a year of strong execution for SPS Commerce, in a retail market undergoing a significant transition,” said Archie Black, President and CEO of SPS Commerce. “We bolstered our leadership position by growing our customer base and increasing wallet share. SPS powers the largest retail network that enables fully orchestrated retailing across all channels and is architected for today’s complex omnichannel environment. We are excited about the multibillion dollar global market opportunity in front of us.”
• Revenue for the full year ended December 31, 2017 was $220.6 million compared to $193.3 million for the full year ended December 31, 2016, reflecting 14% growth in revenue. Recurring revenue grew 15% from the year ended December 31, 2016.

Guidance

• First quarter 2018 revenue is expected to be in the range of $57.4 million to $58.1 million. Full year 2018 revenue is expected to be in the range of $241 million to $244 million, representing approximately 10% to 11% growth over 2017.
• First quarter 2018 net income per diluted share is expected to be in the range of $0.14 to $0.16 with fully diluted weighted average shares outstanding of approximately 17.4 million shares. Full year 2018 net income per diluted share is expected to be in the range of $0.67 to $0.71 with fully diluted weighted average shares outstanding of approximately 17.5 million shares.
• First quarter 2018 non-GAAP net income per diluted share is expected to be in the range of $0.30 to $0.32. Full year 2018 non-GAAP net income per diluted share is expected to be in the range of $1.32 to $1.36.
• First quarter 2018 Adjusted EBITDA is expected to be in the range of $9.5 to $10.0 million. Full year 2018 Adjusted EBITDA is expected to be in the range of $42.0 million to $43.5 million, representing approximately 23% to 27% growth over 2017.
• First quarter 2018 non-cash, share-based compensation expense is expected to be approximately $2.9 million. Depreciation expense is expected to be approximately $2.1 million and amortization expense is expected to be approximately $1.1 million.
• Full year 2018 non-cash, share-based compensation expense is expected to be approximately $11.9 million. Depreciation expense is expected to be approximately $9.9 million and amortization expense is expected to be approximately $4.4 million.
• For 2018, we expect an annual effective tax rate of approximately 30%, with cash taxes for the year to be minimal.

GUIDANCE:

SPS Commerce sees FY2018 EPS of $1.32-$1.36, versus the consensus of $1.08. SPS Commerce sees FY2018 revenue of $241-244 million, versus the consensus of $244.01 million.

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