Revenue Breakdown
Composition ()
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Revenue Streams
SPS Commerce Inc (SPSC) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Fulfillment, accounting for 85.2% of total sales, equivalent to $161.84M. Other significant revenue streams include Analytics and One-time revenues. Understanding this composition is critical for investors evaluating how SPSC navigates market cycles within the Software industry.
Profitability & Margins
Evaluating the bottom line, SPS Commerce Inc maintains a gross margin of 64.50%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 16.42%, while the net margin is 13.46%. These profitability ratios, combined with a Return on Equity (ROE) of 9.51%, provide a clear picture of how effectively SPSC converts its operational activities into shareholder value.
Comparative Benchmarking
In the context of the broader market, SPSC competes directly with industry leaders such as HNGE and FRSH. With a market capitalization of $3.28B, it holds a leading position in the sector. When comparing efficiency, SPSC's gross margin of 64.50% stands against HNGE's 81.84% and FRSH's 84.68%. Such benchmarking helps identify whether SPS Commerce Inc is trading at a premium or discount relative to its financial performance.
