SPS Commerce Reports Fourth Quarter and Full Year 2021 Financial Results
Revenue was
Net income in the fourth quarter of 2021 was
“Our competitive differentiation and ability to expedite trading partner onboarding is rooted in the size of the
Revenue for the full year ended
Net income for the year ended
“SPS Commerce delivered another year of strong execution and profitable growth,” said
Guidance
First quarter 2022 revenue is expected to be in the range of
First quarter 2022 net income per diluted share is expected to be in the range of
First quarter 2022 non-GAAP net income per diluted share is expected to be in the range of
First quarter 2022 Adjusted EBITDA is expected to be in the range of
First quarter 2022 non-cash, share-based compensation expense is expected to be approximately
Full year 2022 non-cash, share-based compensation expense is expected to be approximately
For 2022, we expect an annual effective tax rate of approximately 30%.
Quarterly Conference Call
About
SPS-F
Use of Non-GAAP Financial Measures
To supplement its financial statements,
Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from foreign currency on cash and investments held, investment income or loss, and other adjustments as necessary for a fair presentation.
Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.
Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from foreign currency on cash and investments held, and other adjustments as necessary for a fair presentation, divided by the weighted average number of shares of common stock outstanding during each period.
These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles in
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited; in thousands, except shares) | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 207,552 | $ | 149,692 | ||||
Short-term investments | 49,758 | 37,786 | ||||||
Accounts receivable | 38,811 | 37,811 | ||||||
Allowance for credit losses | (4,249 | ) | (4,233 | ) | ||||
Accounts receivable, net | 34,562 | 33,578 | ||||||
Deferred costs | 44,529 | 37,988 | ||||||
Other assets | 16,042 | 12,312 | ||||||
Total current assets | 352,443 | 271,356 | ||||||
Property and equipment, net | 31,901 | 26,432 | ||||||
Operating lease right-of-use assets | 10,851 | 15,581 | ||||||
143,663 | 134,853 | |||||||
Intangible assets, net | 58,587 | 60,230 | ||||||
Investments, non-current | — | 2,500 | ||||||
Other assets | ||||||||
Deferred costs, non-current | 15,191 | 12,607 | ||||||
Deferred income tax assets | 182 | 194 | ||||||
Other assets, non-current | 3,028 | 2,705 | ||||||
Total assets | $ | 615,846 | $ | 526,458 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 8,330 | $ | 5,354 | ||||
Accrued compensation | 31,661 | 22,872 | ||||||
Accrued expenses | 8,345 | 11,161 | ||||||
Deferred revenue | 50,428 | 37,947 | ||||||
Operating lease liabilities | 4,108 | 2,798 | ||||||
Total current liabilities | 102,872 | 80,132 | ||||||
Other liabilities | ||||||||
Deferred revenue, non-current | 5,144 | 2,996 | ||||||
Operating lease liabilities, non-current | 16,426 | 19,672 | ||||||
Deferred income tax liabilities | 7,145 | 2,937 | ||||||
Total liabilities | 131,587 | 105,737 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred stock, |
— | — | ||||||
Common stock, |
38 | 37 | ||||||
Treasury Stock, at cost; 1,789,353 and 1,613,250 shares, respectively | (85,677 | ) | (65,247 | ) | ||||
Additional paid-in capital | 433,258 | 393,462 | ||||||
Retained earnings | 138,087 | 93,490 | ||||||
Accumulated other comprehensive loss | (1,447 | ) | (1,021 | ) | ||||
Total stockholders’ equity | 484,259 | 420,721 | ||||||
Total liabilities and stockholders’ equity | $ | 615,846 | $ | 526,458 | ||||
Results presented are unaudited and thus, are subject to adjustment. Audited results will be included within the 10-K filing. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited; in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | $ | 102,756 | $ | 83,308 | $ | 385,276 | $ | 312,630 | ||||||||
Cost of revenues | 35,635 | 26,921 | 131,678 | 99,836 | ||||||||||||
Gross profit | 67,121 | 56,387 | 253,598 | 212,794 | ||||||||||||
Operating expenses | ||||||||||||||||
Sales and marketing | 22,658 | 19,812 | 88,044 | 75,955 | ||||||||||||
Research and development | 10,579 | 7,937 | 39,038 | 31,024 | ||||||||||||
General and administrative | 16,119 | 13,528 | 61,305 | 50,119 | ||||||||||||
Amortization of intangible assets | 2,392 | 1,553 | 10,126 | 5,538 | ||||||||||||
Total operating expenses | 51,748 | 42,830 | 198,513 | 162,636 | ||||||||||||
Income from operations | 15,373 | 13,557 | 55,085 | 50,158 | ||||||||||||
Other income (expense), net | (120 | ) | 1,304 | (1,544 | ) | 2,522 | ||||||||||
Income before income taxes | 15,253 | 14,861 | 53,541 | 52,680 | ||||||||||||
Income tax expense | 2,488 | 1,391 | 8,944 | 7,094 | ||||||||||||
Net income | $ | 12,765 | $ | 13,470 | $ | 44,597 | $ | 45,586 | ||||||||
Net income per share | ||||||||||||||||
Basic | $ | 0.35 | $ | 0.38 | $ | 1.24 | $ | 1.29 | ||||||||
Diluted | $ | 0.34 | $ | 0.37 | $ | 1.21 | $ | 1.26 | ||||||||
Weighted average common shares used to compute net income per share | ||||||||||||||||
Basic | 36,091 | 35,504 | 35,928 | 35,226 | ||||||||||||
Diluted | 37,135 | 36,624 | 36,962 | 36,285 | ||||||||||||
Results presented are unaudited and thus, are subject to adjustment. Audited results will be included within the 10-K filing.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited; in thousands) | ||||||||
Year Ended | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 44,597 | $ | 45,586 | ||||
Reconciliation of net income to net cash provided by operating activities | ||||||||
Deferred income taxes | 3,881 | 4,241 | ||||||
Change in earn-out liability | — | (85 | ) | |||||
Depreciation and amortization of property and equipment | 14,788 | 13,127 | ||||||
Amortization of intangible assets | 10,126 | 5,538 | ||||||
Provision for credit losses | 4,717 | 5,660 | ||||||
Stock-based compensation | 27,574 | 18,936 | ||||||
Other, net | 323 | (24 | ) | |||||
Changes in assets and liabilities, net of effects of acquisition | ||||||||
Accounts receivable | (4,959 | ) | (5,922 | ) | ||||
Deferred costs | (9,299 | ) | (3,414 | ) | ||||
Other current and non-current assets | (6,181 | ) | 1,201 | |||||
Accounts payable | 2,259 | 1,214 | ||||||
Accrued compensation | 6,775 | (1,257 | ) | |||||
Accrued expenses | 1,017 | 563 | ||||||
Deferred revenue | 14,483 | 4,432 | ||||||
Operating leases | 2,792 | (1,234 | ) | |||||
Net cash provided by operating activities | 112,893 | 88,562 | ||||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (19,588 | ) | (16,467 | ) | ||||
Purchases of investments | (114,014 | ) | (74,797 | ) | ||||
Maturities of investments | 103,965 | 69,461 | ||||||
Acquisition of business and intangible assets, net | (17,066 | ) | (98,666 | ) | ||||
Net cash used in investing activities | (46,703 | ) | (120,469 | ) | ||||
Cash flows from financing activities | ||||||||
Repurchases of common stock | (20,430 | ) | (18,950 | ) | ||||
Net proceeds from exercise of options to purchase common stock | 9,374 | 18,592 | ||||||
Net proceeds from employee stock purchase plan activity | 4,737 | 3,374 | ||||||
Payment for contingent consideration | (2,042 | ) | (688 | ) | ||||
Net cash provided by (used in) financing activities | (8,361 | ) | 2,328 | |||||
Effect of foreign currency exchange rate changes | 31 | 19 | ||||||
Net increase (decrease) in cash and cash equivalents | 57,860 | (29,560 | ) | |||||
Cash and cash equivalents at beginning of year | 149,692 | 179,252 | ||||||
Cash and cash equivalents at end of year | $ | 207,552 | $ | 149,692 | ||||
Results presented are unaudited and thus, are subject to adjustment. Audited results will be included within the 10-K filing.
NON-GAAP RECONCILIATION | ||||||||
(Unaudited; in thousands, except share and per share amounts) | ||||||||
Year Ended | ||||||||
2021 | 2020 | |||||||
Adjusted EBITDA | ||||||||
Net income | $ | 44,597 | $ | 45,586 | ||||
Income tax expense | 8,944 | 7,094 | ||||||
Depreciation and amortization of property and equipment | 14,788 | 13,127 | ||||||
Amortization of intangible assets | 10,126 | 5,538 | ||||||
Stock-based compensation expense | 27,574 | 18,936 | ||||||
Realized (gain) loss from foreign currency on cash and investments held | 1,456 | (1,753 | ) | |||||
Investment income | (278 | ) | (1,208 | ) | ||||
Other | (192 | ) | (326 | ) | ||||
Adjusted EBITDA | $ | 107,015 | $ | 86,994 | ||||
Adjusted EBITDA Margin | ||||||||
Revenue | $ | 385,276 | $ | 312,630 | ||||
Net income | 44,597 | 45,586 | ||||||
Net Income Margin | 12 | % | 15 | % | ||||
Adjusted EBITDA | $ | 107,015 | $ | 86,994 | ||||
Adjusted EBITDA Margin | 28 | % | 28 | % | ||||
Non-GAAP Income | ||||||||
Net income | $ | 44,597 | $ | 45,586 | ||||
Stock-based compensation expense | 27,574 | 18,936 | ||||||
Amortization of intangible assets | 10,126 | 5,538 | ||||||
Realized (gain) loss from foreign currency on cash and investments held | 1,456 | (1,753 | ) | |||||
Other | (192 | ) | (326 | ) | ||||
Income tax effects of adjustments | (16,454 | ) | (12,285 | ) | ||||
Non-GAAP income | $ | 67,107 | $ | 55,696 | ||||
Shares used to compute non-GAAP income per share | ||||||||
Basic | 35,928 | 35,226 | ||||||
Diluted | 36,962 | 36,285 | ||||||
Non-GAAP income per share | ||||||||
Basic | 1.87 | 1.58 | ||||||
Diluted | 1.82 | 1.53 | ||||||
Contact:
Investor Relations
SPSC@blueshirtgroup.com
415-217-4962
Source: SPS Commerce, Inc.