SPS Commerce Sets the Stage for Continued Growth in 2025 with Strong Q4 and Full-Year Performance
SPS Commerce, a leading provider of retail cloud services, has wrapped up a strong fourth quarter and full-year performance in 2024. According to their recent conference call transcript, the company delivered revenue growth of 19% year-over-year, reaching $637.8 million for the full year.
The quarterly results demonstrate SPS Commerce's continued execution on its mission to provide retail industry solutions that optimize trading partner relationships. Recurring revenue grew by 20%, with significant contributions from fulfillment and analytics services.
One of the key highlights from the quarter was the company's strategic acquisitions, including Vision33's SAP Business One integration technology, Traverse Systems, and SupplyPike. These moves have strengthened SPS Commerce's portfolio and positioned it for future growth opportunities.
The acquisition of Carbon6 on February 7 further solidified SPS Commerce's leadership in revenue recovery solutions, supporting supplier communities of the world's largest retailers, including Amazon. This strategic move is expected to drive continued success for the company in the coming year.
SPS Commerce has also been successful in building long-term partnerships with major retail brands, such as Canadian Tire and GNC. These partnerships have driven significant growth trajectories and provided valuable insights into supply chain resilience and omnichannel fulfillment models.
In particular, Canadian Tire has partnered with SPS since 2001, leveraging the company's expertise to optimize their supply chain operations. This partnership has enabled them to achieve a significant growth trajectory while maintaining supply chain resilience in an evolving retail landscape.
GNC, another long-time customer of SPS Commerce, has also seen success through their partnership. By automating data exchange across their entire supply chain using SPS's analytics solution, they were able to improve collaboration with vendors and optimize inventory management and sales strategies.
Other notable examples include BISSELL, a leading manufacturer of home cleaning solutions, which used SupplyPike's automated revenue recovery solutions to consolidate data from retailer portals. This provided them with valuable insights into deduction trends across retailers and enabled them to save millions in disputed deductions.
SPS Commerce's commitment to providing an updated view of its addressable market offers a glimpse into the company's growth opportunities for 2025. With a strong foundation built on strategic acquisitions, partnerships with major retail brands, and continued execution on its mission, SPS Commerce is poised to drive further success in the coming year.
