
SPS Commerce (SPSC) Stock Forecast & Price Target
SPS Commerce (SPSC) Analyst Ratings
Bulls say
SPS Commerce Inc demonstrated robust financial performance, achieving a total revenue increase of 17.9% year-over-year, marking its 96th consecutive quarter of growth. The company's recurring revenue, which constitutes approximately 94% of total revenue, rose 19% year-over-year, while the wallet share per recurring customer expanded 18% to $14,300, indicating strong customer retention and growth. Additionally, operating cash flow improved by $7.8 million year-over-year to $40.6 million, reflecting a favorable increase in operating efficiency with a margin of 23.7%.
Bears say
The analysis of SPS Commerce Inc. indicates a negative outlook primarily due to a significant decrease in long-term revenue growth expectations, from an earlier estimate of 18% to a revised 15%, attributed to declining organic growth and consistently low customer acquisition rates. The company reported only 300 net customer additions for CY24, a sharp decline from the historical average of 1,900, which raises concerns about future revenue generation and market share. Additionally, anticipated declines in average revenue per user (ARPU) and the risks associated with technological advancements further contribute to the cautious outlook regarding the stock's performance.
This aggregate rating is based on analysts' research of SPS Commerce and is not a guaranteed prediction by Public.com or investment advice.
SPS Commerce (SPSC) Analyst Forecast & Price Prediction
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