Sps Commerce Intrinsic Value Calculation – SPS COMMERCE Reports Fourth Quarter FY 2022 Earnings Results on February 9, 2023
February 25, 2023
Earnings Overview
On February 9, 2023, SPS ($NASDAQ:SPSC) Commerce released their financial results for the fourth quarter of their fiscal year 2022, ending on December 31, 2022. The total revenue had increased by 24.8% compared to the same period of the previous year, and had reached USD 15.9 million. Additionally, the reported net income had also grown 18.7% year over year, to reach USD 122.0 million.
Transcripts Simplified
Revenue for Q4 2022: $122 million, up 19% YOY Recurring revenue for Q4 2022: up 20% YOY Adjusted EBITDA for Q4 2022: $35 million, up 26% YOY Revenue for FY 2022: $450.9 million, up 17% YOY Recurring revenue for FY 2022: up 18% YOY Adjusted EBITDA for FY 2022: $132.3million, up 24% YOY Total Cash and Investments: $214 million Q1 2022 Revenue Expectations: $123.3 million to $124.3 million FY 2022 Revenue Expectations: $523 million to $526 million, 16-17% growth YOY Q1 2022 Adjusted EBITDA Expectations: $35 million to $35.7 million FY 2022 Adjusted EBITDA Expectations: $152.5 million to $154.5 million, 15-17% growth YOY Fully Diluted EPS Expectations (Q1 2023): $0.26 to $0.27 Non-GAAP Diluted EPS Expectations (Q1 2023): $0.56 to $0.57 Fully Diluted EPS Expectations (FY 2023): $1.49 to $1.55 Non-GAAP Diluted EPS Expectations (FY 2023): $2.63 to $2.69 Long-term Adjusted EBITDA Margin Target: 35%
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sps Commerce. More…
| Total Revenues | Net Income | Net Margin |
| 450.88 | 55.13 | 12.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sps Commerce. More…
| Operations | Investing | Financing |
| 100.05 | -112.79 | -31.63 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sps Commerce. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 672.91 | 135.84 | 14.09 |
Key Ratios Snapshot
Some of the financial key ratios for Sps Commerce are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 22.8% | 15.8% |
| FCF Margin | ROE | ROA |
| 17.8% | 8.5% | 6.6% |
Stock Price
The stock opened that day at $139.3 and closed at $137.5, ending slightly higher than the previous day’s closing price of 137.3. This increase was primarily driven by investments in product development and marketing efforts. Looking ahead to the future, SPS COMMERCE is confident that its current investments will continue to yield robust growth throughout FY 2023 and beyond.
Furthermore, the company plans to continue expanding its customer base and exploring new opportunities for growth. Overall, with strong fourth quarter results and plans for future success, SPS COMMERCE looks well-poised for continued success in FY 2023 and beyond. Live Quote…
Analysis – Sps Commerce Intrinsic Value Calculation
At GoodWhale, we recently completed an analysis of SPS COMMERCE, examining their well-being. Our proprietary Valuation Line was used to calculate an intrinsic value for SPS COMMERCE shares of around $125.5. Currently, SPS COMMERCE is being traded at $137.5 on the stock market, which is a fair price, but is somewhat overvalued by 9.6%. More…
Peers
The company offers a suite of solutions that enable businesses to automate and optimize their supply chain operations. Its competitors include Equal Trading Inc, TradeGo FinTech Ltd, and Oidon Co Ltd.
– Equal Trading Inc ($OTCPK:EQTD)
SalaryGo is a leading financial technology company that provides innovative solutions to businesses and individuals worldwide. The company has a market capitalization of 534M as of 2022 and a return on equity of 14.25%. SalaryGo’s products and services include online banking, mobile banking, personal finance management, and investment management. The company also offers a range of other financial services, such as credit cards, loans, and insurance.
Summary
The positive financial results of SPS COMMERCE for the fourth quarter of 2022 were encouraging to investors. In the quarter that ended on December 31, 2022, total revenue was up 24.8% from the same period a year ago and net income rose 18.7%. The company’s outlook also remains promising, with guidance for continued growth in 2023. Overall, the financial results of SPS COMMERCE are an attractive opportunity for investors.
