SPS Commerce, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $637.8 million, a 19% increase from $536.9 million in 2023. This marks the company's 96th consecutive quarter of revenue growth. The growth was primarily driven by a 20% increase in recurring revenues, which accounted for 94% of total revenues, amounting to $600.1 million. The average recurring revenue per customer, referred to as wallet share, also rose by 15% to approximately $13,300, reflecting increased usage of SPS's products among its customer base.
The company experienced a slight increase in its customer count, with approximately 45,350 recurring revenue customers at the end of 2024, up from 44,800 in 2023. This growth was bolstered by strategic acquisitions, including TIE Kinetix, Traverse Systems, and SupplyPike, which collectively added around 1,250 new recurring revenue customers. The acquisitions not only expanded the customer base but also enhanced the capabilities of SPS's cloud-based retail network, further driving revenue growth.
Operationally, SPS Commerce reported a 22% increase in total operating expenses, which rose to $338.2 million, primarily due to increased headcount across various departments. Sales and marketing expenses increased by 21% to $148.9 million, while research and development costs rose by 17% to $62.8 million. Despite these increases, the company maintained a stable income from operations of $88.9 million, consistent with the previous year, and net income increased by 17% to $77.1 million.
Looking ahead, SPS Commerce expressed optimism about its growth trajectory, emphasizing plans to further penetrate the supply chain management market and expand its international presence. The company aims to enhance its product offerings and continue pursuing strategic acquisitions to drive future growth. With cash and cash equivalents of $241 million as of December 31, 2024, SPS Commerce is well-positioned to support its operational and strategic initiatives in the coming year.
About SPS COMMERCE INC
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