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Share Name | Share Symbol | Market | Type |
---|---|---|---|
SPS Commerce Inc | NASDAQ:SPSC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-5.41 | -2.81% | 187.27 | 187.18 | 187.36 | 192.70 | 187.10 | 190.48 | 99,291 | 20:36:01 |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 41-2015127 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Common Stock, par value $0.001 per share | SPSC | The Nasdaq Stock Market LLC (Nasdaq Global Market) |
Large accelerated filer | x | Accelerated filer | o | ||||||||
Non-accelerated filer | o | Smaller reporting company | o | ||||||||
Emerging growth company | o |
Page | ||||||||
Item 1. | Financial Statements (unaudited) | |||||||
SPS COMMERCE, INC. | 2 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
(in thousands, except shares) | June 30, 2022 | December 31, 2021 | |||||||||
ASSETS | (unaudited) | ||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 212,725 | $ | 207,552 | |||||||
Short-term investments | 46,513 | 49,758 | |||||||||
Accounts receivable | 44,559 | 38,811 | |||||||||
Allowance for credit losses | (4,454) | (4,249) | |||||||||
Accounts receivable, net | 40,105 | 34,562 | |||||||||
Deferred costs | 48,294 | 44,529 | |||||||||
Other assets | 17,912 | 16,042 | |||||||||
Total current assets | 365,549 | 352,443 | |||||||||
Property and equipment, net | 32,000 | 31,901 | |||||||||
Operating lease right-of-use assets | 9,578 | 10,851 | |||||||||
Goodwill | 142,960 | 143,663 | |||||||||
Intangible assets, net | 53,597 | 58,587 | |||||||||
Other assets | |||||||||||
Deferred costs, non-current | 16,371 | 15,191 | |||||||||
Deferred income tax assets | 191 | 182 | |||||||||
Other assets, non-current | 2,530 | 3,028 | |||||||||
Total assets | $ | 622,776 | $ | 615,846 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 4,442 | $ | 8,330 | |||||||
Accrued compensation | 25,855 | 31,661 | |||||||||
Accrued expenses | 7,508 | 8,345 | |||||||||
Deferred revenue | 59,093 | 50,428 | |||||||||
Operating lease liabilities | 4,341 | 4,108 | |||||||||
Total current liabilities | 101,239 | 102,872 | |||||||||
Other liabilities | |||||||||||
Deferred revenue, non-current | 5,281 | 5,144 | |||||||||
Operating lease liabilities, non-current | 14,239 | 16,426 | |||||||||
Deferred income tax liabilities | 4,997 | 7,145 | |||||||||
Total liabilities | 125,756 | 131,587 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding | — | — | |||||||||
Common stock, $0.001 par value; 110,000,000 shares authorized; 38,074,026 and 37,798,610 shares issued; and 36,029,477 and 36,009,257 shares outstanding, respectively | 38 | 38 | |||||||||
Treasury Stock, at cost; 2,044,549 and 1,789,353 shares, respectively | (115,900) | (85,677) | |||||||||
Additional paid-in capital | 453,922 | 433,258 | |||||||||
Retained earnings | 161,443 | 138,087 | |||||||||
Accumulated other comprehensive loss | (2,483) | (1,447) | |||||||||
Total stockholders’ equity | 497,020 | 484,259 | |||||||||
Total liabilities and stockholders’ equity | $ | 622,776 | $ | 615,846 |
SPS COMMERCE, INC. | 3 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) (unaudited) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues | $ | 109,178 | $ | 94,539 | $ | 214,371 | $ | 184,633 | |||||||||||||||
Cost of revenues | 37,530 | 31,730 | 72,919 | 61,700 | |||||||||||||||||||
Gross profit | 71,648 | 62,809 | 141,452 | 122,933 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales and marketing | 24,582 | 21,952 | 49,237 | 43,307 | |||||||||||||||||||
Research and development | 11,432 | 8,899 | 22,133 | 17,605 | |||||||||||||||||||
General and administrative | 17,198 | 15,758 | 32,666 | 30,495 | |||||||||||||||||||
Amortization of intangible assets | 2,468 | 2,671 | 4,938 | 5,335 | |||||||||||||||||||
Total operating expenses | 55,680 | 49,280 | 108,974 | 96,742 | |||||||||||||||||||
Income from operations | 15,968 | 13,529 | 32,478 | 26,191 | |||||||||||||||||||
Other expense, net | (1,338) | (383) | (915) | (708) | |||||||||||||||||||
Income before income taxes | 14,630 | 13,146 | 31,563 | 25,483 | |||||||||||||||||||
Income tax expense | 3,877 | 2,963 | 8,207 | 5,100 | |||||||||||||||||||
Net income | $ | 10,753 | $ | 10,183 | $ | 23,356 | $ | 20,383 | |||||||||||||||
Other comprehensive income (expense) | |||||||||||||||||||||||
Foreign currency translation adjustments | (1,743) | 172 | (1,013) | 364 | |||||||||||||||||||
Unrealized loss on investments, net of tax of ($3), ($12), ($4) and $(27), respectively | (8) | (35) | (11) | (80) | |||||||||||||||||||
Reclassification of (gain) loss on investments into earnings, net of tax of $(8), $11, $(4) and $30, respectively | (23) | 33 | (12) | 90 | |||||||||||||||||||
Total other comprehensive income (expense) | (1,774) | 170 | (1,036) | 374 | |||||||||||||||||||
Comprehensive income | $ | 8,979 | $ | 10,353 | $ | 22,320 | $ | 20,757 | |||||||||||||||
Net income per share | |||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.28 | $ | 0.65 | $ | 0.57 | |||||||||||||||
Diluted | $ | 0.29 | $ | 0.28 | $ | 0.63 | $ | 0.55 | |||||||||||||||
Weighted average common shares used to compute net income per share | |||||||||||||||||||||||
Basic | 36,085 | 35,903 | 36,110 | 35,828 | |||||||||||||||||||
Diluted | 36,862 | 36,753 | 36,897 | 36,741 |
SPS COMMERCE, INC. | 4 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) (unaudited) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
Balances, March 31, 2021 | 35,861,584 | $ | 37 | 1,613,250 | $ | (65,247) | $ | 402,860 | $ | 103,690 | $ | (817) | $ | 440,523 | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 7,014 | — | — | 7,014 | |||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock awards | 36,756 | 1 | — | — | 1,227 | — | — | 1,228 | |||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan activity | 24,528 | — | — | — | 2,081 | — | — | 2,081 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (63,515) | — | 63,515 | (6,450) | — | — | — | (6,450) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 10,183 | — | 10,183 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 172 | 172 | |||||||||||||||||||||||||||||||||||||||
Unrealized loss on investments, net of tax | — | — | — | — | — | — | (35) | (35) | |||||||||||||||||||||||||||||||||||||||
Reclassification of loss on investments into earnings, net of tax | — | — | — | — | — | — | 33 | 33 | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2021 | 35,859,353 | $ | 38 | 1,676,765 | $ | (71,697) | $ | 413,182 | $ | 113,873 | $ | (647) | $ | 454,749 | |||||||||||||||||||||||||||||||||
Balances, March 31, 2022 | 36,120,518 | $ | 38 | 1,910,897 | $ | (100,903) | $ | 442,405 | $ | 150,690 | $ | (709) | $ | 491,521 | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 8,128 | — | — | 8,128 | |||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock awards | 9,274 | — | — | — | 186 | — | — | 186 | |||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan activity | 33,337 | — | — | — | 3,203 | — | — | 3,203 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (133,652) | — | 133,652 | (14,997) | — | — | — | (14,997) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 10,753 | — | 10,753 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (1,743) | (1,743) | |||||||||||||||||||||||||||||||||||||||
Unrealized loss on investments, net of tax | — | — | — | — | — | — | (8) | (8) | |||||||||||||||||||||||||||||||||||||||
Reclassification of gain on investments into earnings, net of tax | — | — | — | — | — | — | (23) | (23) | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2022 | 36,029,477 | $ | 38 | 2,044,549 | $ | (115,900) | $ | 453,922 | $ | 161,443 | $ | (2,483) | $ | 497,020 |
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | 35,487,217 | $ | 37 | 1,613,250 | $ | (65,247) | $ | 393,462 | $ | 93,490 | $ | (1,021) | $ | 420,721 | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 13,505 | — | — | 13,505 | |||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock awards | 409,502 | 1 | — | — | 4,029 | — | — | 4,030 | |||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan activity | 26,149 | — | — | — | 2,186 | — | — | 2,186 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (63,515) | — | 63,515 | (6,450) | — | — | — | (6,450) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 20,383 | — | 20,383 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 364 | 364 | |||||||||||||||||||||||||||||||||||||||
Unrealized loss on investments, net of tax | — | — | — | — | — | — | (80) | (80) | |||||||||||||||||||||||||||||||||||||||
Reclassification of loss on investments into earnings, net of tax | — | — | — | — | — | — | 90 | 90 | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2021 | 35,859,353 | $ | 38 | 1,676,765 | $ | (71,697) | $ | 413,182 | $ | 113,873 | $ | (647) | $ | 454,749 | |||||||||||||||||||||||||||||||||
Balances, December 31, 2021 | 36,009,257 | $ | 38 | 1,789,353 | $ | (85,677) | $ | 433,258 | $ | 138,087 | $ | (1,447) | $ | 484,259 | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 16,624 | — | — | 16,624 | |||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock awards | 240,381 | — | — | — | 690 | — | — | 690 | |||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan activity | 35,035 | — | — | — | 3,350 | — | — | 3,350 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (255,196) | — | 255,196 | (30,223) | — | — | — | (30,223) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 23,356 | — | 23,356 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (1,013) | (1,013) | |||||||||||||||||||||||||||||||||||||||
Unrealized loss on investments, net of tax | — | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||||
Reclassification of gain on investments into earnings, net of tax | — | — | — | — | — | — | (12) | (12) | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2022 | 36,029,477 | $ | 38 | 2,044,549 | $ | (115,900) | $ | 453,922 | $ | 161,443 | $ | (2,483) | $ | 497,020 |
SPS COMMERCE, INC. | 5 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Six Months Ended June 30, | |||||||||||
(in thousands) (unaudited) | 2022 | 2021 | |||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 23,356 | $ | 20,383 | |||||||
Reconciliation of net income to net cash provided by operating activities | |||||||||||
Deferred income taxes | (2,160) | 351 | |||||||||
Depreciation and amortization of property and equipment | 7,814 | 7,294 | |||||||||
Amortization of intangible assets | 4,938 | 5,335 | |||||||||
Provision for credit losses | 2,634 | 2,831 | |||||||||
Stock-based compensation | 17,676 | 14,424 | |||||||||
Other, net | 8 | 170 | |||||||||
Changes in assets and liabilities | |||||||||||
Accounts receivable | (7,862) | (6,945) | |||||||||
Deferred costs | (5,095) | (3,338) | |||||||||
Other current and non-current assets | (1,423) | (1,201) | |||||||||
Accounts payable | (3,234) | (147) | |||||||||
Accrued compensation | (7,186) | 3,246 | |||||||||
Accrued expenses | (805) | (2,087) | |||||||||
Deferred revenue | 8,802 | 12,893 | |||||||||
Operating leases | (678) | 1,449 | |||||||||
Net cash provided by operating activities | 36,785 | 54,658 | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of property and equipment | (8,191) | (8,738) | |||||||||
Purchases of investments | (114,603) | (44,034) | |||||||||
Maturities of investments | 117,500 | 35,000 | |||||||||
Net cash used in investing activities | (5,294) | (17,772) | |||||||||
Cash flows from financing activities | |||||||||||
Repurchases of common stock | (30,223) | (6,450) | |||||||||
Net proceeds from exercise of options to purchase common stock | 690 | 4,030 | |||||||||
Net proceeds from employee stock purchase plan | 3,350 | 2,186 | |||||||||
Payments for contingent consideration | — | (2,042) | |||||||||
Net cash used in financing activities | (26,183) | (2,276) | |||||||||
Effect of foreign currency exchange rate changes | (135) | 65 | |||||||||
Net increase in cash and cash equivalents | 5,173 | 34,675 | |||||||||
Cash and cash equivalents at beginning of period | 207,552 | 149,692 | |||||||||
Cash and cash equivalents at end of period | $ | 212,725 | $ | 184,367 |
SPS COMMERCE, INC. | 6 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Standard | Date of Issuance | Description | Date of Required Adoption | Effect on the Financial Statements | ||||||||||
ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers | October 2021 | This amendment requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, effective for all business combinations in the year of adoption and thereafter. | January 2023 | The adoption of this standard may have a material impact on the purchase accounting for business combinations depending on the specific amount of contract assets and liabilities being acquired. |
SPS COMMERCE, INC. | 7 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Recurring revenues: | |||||||||||||||||||||||
Fulfillment | $ | 87,887 | $ | 75,228 | $ | 172,618 | $ | 146,632 | |||||||||||||||
Analytics | 11,648 | 10,381 | 22,944 | 20,525 | |||||||||||||||||||
Other | 1,628 | 1,331 | 3,168 | 2,584 | |||||||||||||||||||
Recurring revenues | 101,163 | 86,940 | 198,730 | 169,741 | |||||||||||||||||||
One-time revenues | 8,015 | 7,599 | 15,641 | 14,892 | |||||||||||||||||||
Total revenue | $ | 109,178 | $ | 94,539 | $ | 214,371 | $ | 184,633 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Balance, beginning of period | $ | 14,938 | $ | 12,102 | $ | 14,459 | $ | 11,118 | |||||||||||||||
Invoiced set-up fees | 4,058 | 4,343 | 8,061 | 8,210 | |||||||||||||||||||
Recognized set-up fees | (3,687) | (3,101) | (7,211) | (5,984) | |||||||||||||||||||
Balance, end of period | $ | 15,309 | $ | 13,344 | $ | 15,309 | $ | 13,344 |
SPS COMMERCE, INC. | 8 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Balance, beginning of period | $ | 62,610 | $ | 51,540 | $ | 59,720 | $ | 50,595 | |||||||||||||||
Incurred deferred costs | 17,637 | 16,036 | 35,418 | 29,463 | |||||||||||||||||||
Amortized deferred costs | (15,582) | (13,735) | (30,473) | (26,217) | |||||||||||||||||||
Balance, end of period | $ | 64,665 | $ | 53,841 | $ | 64,665 | $ | 53,841 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Unrealized Losses, net | Fair Value | Amortized Cost | Unrealized Gains (Losses), net | Fair Value | |||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||
Money market funds | $ | 138,729 | $ | — | $ | 138,729 | $ | 138,205 | $ | — | $ | 138,205 | |||||||||||||||||||||||
Certificates of deposit | 6,904 | — | 6,904 | 7,268 | — | 7,268 | |||||||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||||
Commercial paper | 39,634 | (25) | 39,609 | 34,984 | 7 | 34,991 | |||||||||||||||||||||||||||||
U.S. treasury securities | — | — | — | 7,500 | (1) | 7,499 | |||||||||||||||||||||||||||||
$ | 185,267 | $ | (25) | $ | 185,242 | $ | 187,957 | $ | 6 | $ | 187,963 |
SPS COMMERCE, INC. | 9 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 138,729 | $ | — | $ | — | $ | 138,729 | $ | 138,205 | $ | — | $ | — | $ | 138,205 | |||||||||||||||||||||||||||||||
Certificates of deposit | 6,904 | — | — | 6,904 | 7,268 | — | — | 7,268 | |||||||||||||||||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | — | 39,609 | — | 39,609 | — | 34,991 | — | 34,991 | |||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | — | — | — | — | — | 7,499 | — | 7,499 | |||||||||||||||||||||||||||||||||||||||
$ | 145,633 | $ | 39,609 | $ | — | $ | 185,242 | $ | 145,473 | $ | 42,490 | $ | — | $ | 187,963 |
Six Months Ended June 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Balance, beginning of period | $ | 4,249 | $ | 4,233 | |||||||
Provision for credit losses | 2,634 | 2,831 | |||||||||
Write-offs, net of recoveries | (2,429) | (2,809) | |||||||||
Balance, end of period | $ | 4,454 | $ | 4,255 |
(in thousands) | June 30, 2022 | December 31, 2021 | ||||||||||||
Internally developed software | $ | 47,230 | $ | 44,981 | ||||||||||
Computer equipment | 31,305 | 29,329 | ||||||||||||
Leasehold improvements | 16,650 | 16,685 | ||||||||||||
Office equipment and furniture | 10,929 | 10,972 | ||||||||||||
Property and equipment, cost | 106,114 | 101,967 | ||||||||||||
Less: accumulated depreciation and amortization | (74,114) | (70,066) | ||||||||||||
Total property and equipment, net | $ | 32,000 | $ | 31,901 |
SPS COMMERCE, INC. | 10 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Six Months Ended June 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Balance, beginning of period | $ | 143,663 | $ | 134,853 | |||||||
Foreign currency translation | (703) | 233 | |||||||||
Remeasurement from provisional purchase accounting amount | — | 268 | |||||||||
Balance, end of period | $ | 142,960 | $ | 135,354 |
June 30, 2022 | |||||||||||||||||||||||||||||
($ in thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | Weighted Average Remaining Amortization Period | ||||||||||||||||||||||||
Subscriber relationships | $ | 61,142 | $ | (33,964) | $ | (51) | $ | 27,127 | 6.0 years | ||||||||||||||||||||
Acquired technology | 35,327 | (8,857) | — | 26,470 | 6.3 years | ||||||||||||||||||||||||
$ | 96,469 | $ | (42,821) | $ | (51) | $ | 53,597 | 6.2 years |
December 31, 2021 | |||||||||||||||||||||||||||||
($ in thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | Weighted Average Remaining Amortization Period | ||||||||||||||||||||||||
Subscriber relationships | $ | 61,270 | $ | (29,866) | $ | (1,395) | $ | 30,009 | 6.4 years | ||||||||||||||||||||
Acquired technology | 35,316 | (6,738) | — | 28,578 | 6.8 years | ||||||||||||||||||||||||
$ | 96,586 | $ | (36,604) | $ | (1,395) | $ | 58,587 | 6.6 years |
(in thousands) | |||||
Remainder of 2022 | $ | 4,924 | |||
2023 | 9,777 | ||||
2024 | 8,534 | ||||
2025 | 8,396 | ||||
2026 | 7,392 | ||||
Thereafter | 14,573 | ||||
Total future amortization | $ | 53,597 |
SPS COMMERCE, INC. | 11 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating lease cost | $ | 740 | $ | 896 | $ | 1,499 | $ | 1,436 | |||||||||||||||
Variable lease cost | 856 | 950 | 1,649 | 1,718 | |||||||||||||||||||
$ | 1,596 | $ | 1,846 | $ | 3,148 | $ | 3,154 |
Six Months Ended June 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||
Operating cash flows from operating leases | $ | 2,176 | $ | 1,204 |
June 30, 2022 | December 31, 2021 | ||||||||||
Weighted-average remaining lease term | 4.4 years | 4.8 years | |||||||||
Weighted-average discount rate | 4.0 | % | 4.0 | % |
(in thousands) | |||||
Remainder of 2022 | $ | 2,478 | |||
2023 | 4,690 | ||||
2024 | 4,278 | ||||
2025 | 3,874 | ||||
2026 | 3,770 | ||||
Thereafter | 1,268 | ||||
Total future gross payments | $ | 20,358 | |||
Less: imputed interest | (1,778) | ||||
Total operating lease liabilities | $ | 18,580 |
SPS COMMERCE, INC. | 12 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
(in thousands) | Effective Date | Expiration Date | Share Value Authorized for Repurchase | Share Value Repurchased | Unused & Expired Share Repurchase Value | Share Value Available for Future Repurchase | ||||||||||||||||||||||||||
2019 Program | November 2019 | November 2021 | $ | 50,000 | $ | 29,611 | $ | 20,389 | N/A | |||||||||||||||||||||||
2021 Program | November 2021 | November 2023 | 50,000 | 39,992 | N/A | $ | 10,008 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Shares repurchased cost | $ | 14,997 | $ | 6,450 | $ | 30,223 | $ | 6,450 | |||||||||||||||
Number of shares repurchased | 133,652 | 63,515 | 255,196 | 63,515 | |||||||||||||||||||
Average price per repurchased share | $ | 112.21 | $ | 101.55 | $ | 118.43 | $ | 101.55 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Cost of revenues | $ | 2,152 | $ | 1,746 | $ | 4,331 | $ | 3,249 | |||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales and marketing | 1,958 | 1,738 | 3,990 | 3,220 | |||||||||||||||||||
Research and development | 1,380 | 1,106 | 2,854 | 2,017 | |||||||||||||||||||
General and administrative | 3,171 | 2,909 | 6,501 | 5,938 | |||||||||||||||||||
$ | 8,661 | $ | 7,499 | $ | 17,676 | $ | 14,424 |
SPS COMMERCE, INC. | 13 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Stock options | $ | 463 | $ | 522 | $ | 940 | $ | 1,074 | |||||||||||||||
PSUs | 2,004 | 1,931 | 4,703 | 4,016 | |||||||||||||||||||
RSUs | 5,094 | 4,115 | 9,732 | 7,536 | |||||||||||||||||||
RSAs & DSUs | 110 | 110 | 218 | 217 | |||||||||||||||||||
ESPP | 458 | 336 | 1,032 | 662 | |||||||||||||||||||
401(k) stock match | 532 | 485 | 1,051 | 919 | |||||||||||||||||||
$ | 8,661 | $ | 7,499 | $ | 17,676 | $ | 14,424 |
Six Months Ended June 30, 2022 | |||||||||||
Options (#) | Weighted Average Exercise Price ($/share) | ||||||||||
Outstanding, beginning of period | 678,650 | $ | 44.76 | ||||||||
Granted | 47,171 | 122.36 | |||||||||
Exercised | (18,404) | 37.52 | |||||||||
Forfeited | (3,759) | 85.84 | |||||||||
Outstanding, end of period | 703,658 | $ | 49.93 |
Life (in years) | 4.3 | ||||
Volatility | 37.4 | % | |||
Dividend yield | — | ||||
Risk-free interest rate | 2.2 | % |
SPS COMMERCE, INC. | 14 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Six Months Ended June 30, 2022 | |||||||||||
# | Weighted Average Grant Date Fair Value ($/share) | ||||||||||
Outstanding, beginning of period | 702,160 | $ | 78.03 | ||||||||
Granted | 241,902 | 126.60 | |||||||||
Vested and common stock issued | (220,002) | 62.49 | |||||||||
Forfeited | (16,123) | 95.03 | |||||||||
Outstanding, end of period | 707,937 | $ | 99.07 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except shares) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Amounts for shares purchased | $ | 3,203 | $ | 2,081 | $ | 3,350 | $ | 2,186 | |||||||||||||||
Shares purchased | 33,337 | 24,528 | 35,035 | 26,149 |
Life (in years) | 0.5 | ||||
Volatility | 37.4 | % | |||
Dividend yield | — | ||||
Risk-free interest rate | 0.2 | % |
SPS COMMERCE, INC. | 15 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Investment income | $ | 172 | $ | 79 | $ | 220 | $ | 176 | |||||||||||||||
Realized loss from foreign currency on cash and investments held | (1,327) | (349) | (859) | (638) | |||||||||||||||||||
Other expense, net | (183) | (113) | (276) | (246) | |||||||||||||||||||
Total other expense, net | $ | (1,338) | $ | (383) | $ | (915) | $ | (708) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net income | $ | 10,753 | $ | 10,183 | $ | 23,356 | $ | 20,383 | |||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted average common shares outstanding, basic | 36,085 | 35,903 | 36,110 | 35,828 | |||||||||||||||||||
Options to purchase common stock | 391 | 505 | 405 | 536 | |||||||||||||||||||
PSUs, RSUs, RSAs, and DSUs | 386 | 345 | 382 | 377 | |||||||||||||||||||
Weighted average common shares outstanding, diluted | 36,862 | 36,753 | 36,897 | 36,741 | |||||||||||||||||||
Net income per share | |||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.28 | $ | 0.65 | $ | 0.57 | |||||||||||||||
Diluted | $ | 0.29 | $ | 0.28 | $ | 0.63 | $ | 0.55 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Anti-dilutive shares | 242 | 129 | 211 | 93 |
SPS COMMERCE, INC. | 16 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Domestic revenue | 84 | % | 84 | % | 84 | % | 84 | % |
June 30, 2022 | December 31, 2022 | ||||||||||
International property and equipment | 13 | % | 12 | % |
SPS COMMERCE, INC. | 17 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
SPS COMMERCE, INC. | 18 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
(dollars in thousands) | $ | % of revenue(1) | $ | % of revenue(1) | $ | % | |||||||||||||||||||||||||||||
Revenues | $ | 109,178 | 100.0 | % | $ | 94,539 | 100.0 | % | $ | 14,639 | 15.5 | % | |||||||||||||||||||||||
Cost of revenues | 37,530 | 34.4 | 31,730 | 33.6 | 5,800 | 18.3 | |||||||||||||||||||||||||||||
Gross profit | 71,648 | 65.6 | 62,809 | 66.4 | 8,839 | 14.1 | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Sales and marketing | 24,582 | 22.5 | 21,952 | 23.2 | 2,630 | 12.0 | |||||||||||||||||||||||||||||
Research and development | 11,432 | 10.5 | 8,899 | 9.4 | 2,533 | 28.5 | |||||||||||||||||||||||||||||
General and administrative | 17,198 | 15.8 | 15,758 | 16.7 | 1,440 | 9.1 | |||||||||||||||||||||||||||||
Amortization of intangible assets | 2,468 | 2.3 | 2,671 | 2.8 | (203) | (7.6) | |||||||||||||||||||||||||||||
Total operating expenses | 55,680 | 51.0 | 49,280 | 52.1 | 6,400 | 13.0 | |||||||||||||||||||||||||||||
Income from operations | 15,968 | 14.6 | 13,529 | 14.3 | 2,439 | 18.0 | |||||||||||||||||||||||||||||
Other expense, net | (1,338) | (1.2) | (383) | (0.4) | (955) | 249.4 | |||||||||||||||||||||||||||||
Income before income taxes | 14,630 | 13.4 | 13,146 | 13.9 | 1,484 | 11.3 | |||||||||||||||||||||||||||||
Income tax expense | 3,877 | 3.6 | 2,963 | 3.1 | 914 | 30.8 | |||||||||||||||||||||||||||||
Net income | $ | 10,753 | 9.8 | % | $ | 10,183 | 10.8 | % | $ | 570 | 5.6 | % | |||||||||||||||||||||||
(1) Amounts in column may not foot due to rounding |
SPS COMMERCE, INC. | 19 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Net income | $ | 10,753 | $ | 10,183 | |||||||
Income tax expense | 3,877 | 2,963 | |||||||||
Depreciation and amortization of property and equipment | 3,950 | 3,529 | |||||||||
Amortization of intangible assets | 2,468 | 2,671 | |||||||||
Stock-based compensation expense | 8,661 | 7,499 | |||||||||
Realized loss from foreign currency on cash and investments held | 1,327 | 349 | |||||||||
Investment income | (172) | (79) | |||||||||
Other | — | 213 | |||||||||
Adjusted EBITDA | $ | 30,864 | $ | 27,328 |
SPS COMMERCE, INC. | 20 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Three Months Ended June 30, | |||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | |||||||||
Net income | $ | 10,753 | $ | 10,183 | |||||||
Stock-based compensation expense | 8,661 | 7,499 | |||||||||
Amortization of intangible assets | 2,468 | 2,671 | |||||||||
Realized loss from foreign currency on cash and investments held | 1,327 | 349 | |||||||||
Other | — | 213 | |||||||||
Income tax effects of adjustments | (3,491) | (3,999) | |||||||||
Non-GAAP income | $ | 19,718 | $ | 16,916 | |||||||
Shares used to compute non-GAAP income per share | |||||||||||
Basic | 36,085 | 35,903 | |||||||||
Diluted | 36,862 | 36,753 | |||||||||
Non-GAAP income per share | |||||||||||
Basic | $ | 0.55 | $ | 0.47 | |||||||
Diluted | $ | 0.53 | $ | 0.46 |
SPS COMMERCE, INC. | 21 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
(dollars in thousands) | $ | % of revenue(1) | $ | % of revenue(1) | $ | % | |||||||||||||||||||||||||||||
Revenues | $ | 214,371 | 100.0 | % | $ | 184,633 | 100.0 | % | $ | 29,738 | 16.1 | % | |||||||||||||||||||||||
Cost of revenues | 72,919 | 34.0 | 61,700 | 33.4 | 11,219 | 18.2 | |||||||||||||||||||||||||||||
Gross profit | 141,452 | 66.0 | 122,933 | 66.6 | 18,519 | 15.1 | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Sales and marketing | 49,237 | 23.0 | 43,307 | 23.5 | 5,930 | 13.7 | |||||||||||||||||||||||||||||
Research and development | 22,133 | 10.3 | 17,605 | 9.5 | 4,528 | 25.7 | |||||||||||||||||||||||||||||
General and administrative | 32,666 | 15.2 | 30,495 | 16.5 | 2,171 | 7.1 | |||||||||||||||||||||||||||||
Amortization of intangible assets | 4,938 | 2.3 | 5,335 | 2.9 | (397) | (7.4) | |||||||||||||||||||||||||||||
Total operating expenses | 108,974 | 50.8 | 96,742 | 52.4 | 12,232 | 12.6 | |||||||||||||||||||||||||||||
Income from operations | 32,478 | 15.2 | 26,191 | 14.2 | 6,287 | 24.0 | |||||||||||||||||||||||||||||
Other expense, net | (915) | (0.4) | (708) | (0.4) | (207) | 29.2 | |||||||||||||||||||||||||||||
Income before income taxes | 31,563 | 14.7 | 25,483 | 13.8 | 6,080 | 23.9 | |||||||||||||||||||||||||||||
Income tax expense | 8,207 | 3.8 | 5,100 | 2.8 | 3,107 | 60.9 | |||||||||||||||||||||||||||||
Net income | $ | 23,356 | 10.9 | % | $ | 20,383 | 11.0 | % | $ | 2,973 | 14.6 | % | |||||||||||||||||||||||
(1) Amounts in column may not foot due to rounding |
SPS COMMERCE, INC. | 22 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Six Months Ended June 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Net income | $ | 23,356 | $ | 20,383 | |||||||
Income tax expense | 8,207 | 5,100 | |||||||||
Depreciation and amortization of property and equipment | 7,814 | 7,294 | |||||||||
Amortization of intangible assets | 4,938 | 5,335 | |||||||||
Stock-based compensation expense | 17,676 | 14,424 | |||||||||
Realized loss from foreign currency on cash and investments held | 859 | 638 | |||||||||
Investment income | (220) | (176) | |||||||||
Other | — | (213) | |||||||||
Adjusted EBITDA | $ | 62,630 | $ | 52,785 |
SPS COMMERCE, INC. | 23 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Six Months Ended June 30, | |||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | |||||||||
Net income | $ | 23,356 | $ | 20,383 | |||||||
Stock-based compensation expense | 17,676 | 14,424 | |||||||||
Amortization of intangible assets | 4,938 | 5,335 | |||||||||
Realized loss from foreign currency on cash and investments held | 859 | 638 | |||||||||
Other | — | (213) | |||||||||
Income tax effects of adjustments | (6,710) | (7,974) | |||||||||
Non-GAAP income | $ | 40,119 | $ | 32,593 | |||||||
Shares used to compute non-GAAP income per share | |||||||||||
Basic | 36,110 | 35,828 | |||||||||
Diluted | 36,897 | 36,741 | |||||||||
Non-GAAP income per share | |||||||||||
Basic | $ | 1.11 | $ | 0.91 | |||||||
Diluted | $ | 1.09 | $ | 0.89 |
SPS COMMERCE, INC. | 24 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Six Months Ended June 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Net cash provided by operating activities | $ | 36,785 | $ | 54,658 | |||||||
Net cash used in investing activities | (5,294) | (17,772) | |||||||||
Net cash used in financing activities | (26,183) | (2,276) |
SPS COMMERCE, INC. | 25 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Payments Due by Period | |||||||||||||||||||||||||||||
(in thousands) | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | ||||||||||||||||||||||||
Operating lease obligations, including imputed interest | $ | 5,012 | $ | 8,459 | $ | 6,887 | $ | — | $ | 20,358 | |||||||||||||||||||
Purchase commitments | 5,516 | 515 | — | — | 6,031 | ||||||||||||||||||||||||
Total | $ | 10,528 | $ | 8,974 | $ | 6,887 | $ | — | $ | 26,389 |
SPS COMMERCE, INC. | 26 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
SPS COMMERCE, INC. | 27 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program(1) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (2) | ||||||||||||||||||||||
April 1 - 30, 2022 | 36,778 | $ | 124.88 | 36,778 | $ | 20,412,000 | ||||||||||||||||||||
May 1 - 31, 2022 | 45,132 | 107.02 | 45,132 | 15,582,000 | ||||||||||||||||||||||
June 1 - 30, 2022 | 51,742 | 107.73 | 51,742 | 10,008,000 | ||||||||||||||||||||||
Total | 133,652 | $ | 112.21 | 133,652 | $ | 10,008,000 |
SPS COMMERCE, INC. | 28 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101 | Interactive Data Files Pursuant to Rule 405 of Regulation S-T (filed herewith). The XBRL instance document does not appear in the Interactive Data File because its tags are embedded within the Inline XBRL document. | |||||||
104 | The cover page from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL. |
SPS COMMERCE, INC. | 29 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
Dated: July 27, 2022 | SPS COMMERCE, INC. | ||||
/s/ KIMBERLY NELSON | |||||
Kimberly Nelson | |||||
Executive Vice President and Chief Financial Officer | |||||
(principal financial and accounting officer) |
SPS COMMERCE, INC. | 30 | Form 10-Q for the Quarterly Period ended June 30, 2022 |
1 Year SPS Commerce Chart |
1 Month SPS Commerce Chart |
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