SPS Commerce, Inc. (SPSC) has reported an 184.58 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $2.97 million, or $0.17 a share in the quarter, compared with $1.04 million, or $0.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.35 million, or $0.25 a share compared with $2.70 million or $0.16 a share, a year ago. Revenue during the quarter grew 13.89 percent to $51.93 million from $45.60 million in the previous year period. Gross margin for the quarter contracted 74 basis points over the previous year period to 66.63 percent. Total expenses were 93.50 percent of quarterly revenues, down from 97.12 percent for the same period last year. This has led to an improvement of 362 basis points in operating margin to 6.50 percent.
Operating income for the quarter was $3.38 million, compared with $1.31 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.52 million compared with $5.96 million in the prior year period. At the same time, adjusted EBITDA margin improved 335 basis points in the quarter to 16.41 percent from 13.06 percent in the last year period.
"We had a strong start to 2017. Our solid first quarter performance was driven by the continued growth of the SPS Commerce network and demand for our comprehensive cloud based platform," said Archie Black, president and chief executive officer of SPS Commerce. "The complexity of retail coupled with constantly evolving consumer demands make it imperative that retailers and suppliers achieve real-time collaboration to stay ahead of the competitive curve. Our technology platform and deep retail expertise enable us to take advantage of this evolution and grow our market leadership."
For financial year 2017, SPS Commerce, Inc. expects revenue to be in the range of $220 million to $222 million. The company projects diluted earnings per share to be in the range of $0.36 to $0.39. It company projects diluted earnings per share to be in the range of $0.83 to $0.85 on adjusted basis.
For the second-quarter 2017, SPS Commerce, Inc. expects revenue to be in the range of $53.40 million to $53.90 million. The company projects diluted earnings per share to be in the range of $0.06 to $0.07. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.18 to $0.20.
Operating cash flow improves significantly
SPS Commerce, Inc. has generated cash of $10.40 million from operating activities during the quarter, up 50.47 percent or $3.49 million, when compared with the last year period. Cash flow from investing activities was $0.71 million for the quarter as against cash outgo of $20.05 million in the last year period.
Cash flow from financing activities was $1.04 million for the quarter, down 50.38 percent or $1.05 million, when compared with the last year period.
Cash and cash equivalents stood at $128.71 million as on Mar. 31, 2017, up 16.07 percent or $17.82 million from $110.89 million on Mar. 31, 2016.
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