
SPS Commerce (SPSC) Stock Forecast & Price Target
SPS Commerce (SPSC) Analyst Ratings
Bulls say
SPS Commerce Inc. demonstrated robust financial performance with a total revenue increase of 17.9% year-over-year, marking the 96th consecutive quarter of growth, and a significant 19% growth in recurring revenue. The company also reported a notable increase in wallet share per recurring customer, which grew 18% year-over-year to reach $14,300, indicating enhanced customer engagement and service utilization. Furthermore, SPS Commerce's operating cash flow improved by $7.8 million year-over-year to $40.6 million, reflecting a margin increase from 22.6% to 23.7%, underscoring the overall operational efficiency and financial strength of the business.
Bears say
SPS Commerce Inc. is experiencing a negative outlook due to a significant reduction in projected long-term revenue growth, with estimates now anticipated to decline from an average of 15% between CY22 to CY24 to a range of 11% to 13% for CY25, reflecting concerns over stagnant customer acquisition rates. This decline has resulted in a downward revision of the terminal period revenue estimate from $3.2 billion to $2.7 billion, and a recent quarter’s performance highlighted a sharp drop in net customer additions, totaling only 300 for CY24 compared to the previous five-year average of 1,900. Additionally, expected declines in average revenue per user (ARPU) and risks associated with technological adaptability further contribute to the pessimistic outlook for SPS Commerce’s stock.
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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