The following is a summary of the SPS Commerce, Inc. (SPSC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• SPS Commerce reported a revenue of $153.6 million in Q2 2024, which is an 18% increase year-over-year.

• Recurring revenue grew 18% year-over-year.

• Adjusted EBITDA for the quarter grew 16% to $44.2 million.

• Guidance for Q3 2024 anticipates revenue between $157.6 million and $158.6 million, with adjusted EBITDA between $46.9 million and $47.7 million.

• For the full year 2024, revenue is projected to be between $624.2 million and $626 million, with adjusted EBITDA expected to range from $185.5 million to $187 million.

Business Progress:

• SPS Commerce completed the acquisition of Traverse Systems, enhancing their product portfolio in supply chain performance and optimization.

• The company continues to expand its network through community enablement campaigns and strategic acquisitions.

• Forecasts indicate persistent growth in e-commerce and omnichannel retail sectors, areas where SPS Commerce positions itself strongly.

Opportunities:

• Continued industry evolution towards e-commerce and omnichannel retail presents ongoing opportunities for growth.

• The acquisition of Traverse Systems provides a new avenue to offer expanded services to retailers, potentially increasing revenue streams from this customer segment.

Risks:

• Customer dynamics such as churn and consolidation in the retail sector present ongoing challenges that could impact revenue growth.

• The company also faces the typical risks associated with integrating acquisitions such as Traverse Systems, which could affect operational efficiency if not managed effectively.

More details: SPS Commerce IR

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