SPS Commerce (SPSC) Tops Q2 EPS by 16c, Revenues Beat; Offers FY Outlook
SPS Commerce (NASDAQ: SPSC) reported Q2 EPS of $0.49, $0.16 better than the analyst estimate of $0.33. Revenue for the quarter came in at $61.1 million versus the consensus estimate of $59.78 million.
“SPS Commerce has grown to be a leader in cloud-based supply chain management solutions by establishing and growing its network of strategic and consultative relationships with retailers and suppliers,” said Archie Black, President and CEO of SPS Commerce. “As consumer shopping habits and expectations continue to drive the need for retailers to evolve their omnichannel strategies, SPS leverages its platform and its network to deploy efficient and comprehensive solutions.”
“We posted a strong second quarter and we continue to make significant progress towards our 2020 goals and long term financial targets, proving efficiency in our business model while continually evolving and executing our go-to-market strategy,” said Kim Nelson, CFO of SPS Commerce.
Guidance
For the third quarter of 2018, revenue is expected to be in the range of $61.2 to $61.7 million. Third quarter net income per diluted share is expected to be in the range of $0.22 to $0.24 with fully diluted weighted average shares outstanding of approximately 17.6 million shares. Non-GAAP income per diluted share is expected to be in the range of $0.39 to $0.41. Adjusted EBITDA is expected to be in the range of $12.2 to $12.7 million. Non-cash, share-based compensation expense is expected to be approximately $3.3 million, depreciation expense is expected to be approximately $2.4 million and amortization expense is expected to be approximately $1.1 million.
For the full year of 2018, revenue is expected to be in the range of $243.7 to $245.1 million, representing approximately 11% growth over 2017. Full year net income per diluted share is expected to be in the range of $0.94 to $0.98 with fully diluted weighted average shares outstanding of approximately 17.5 million shares. Non-GAAP income per diluted share is expected to be in the range of $1.65 to $1.69. Adjusted EBITDA is expected to be in the range of $47.4 to $48.5 million. Non-cash, share-based compensation expense is expected to be approximately $12.7 million, depreciation expense is expected to be approximately $9.5 million, and amortization expense is expected to be approximately $4.4 million.
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