Small-Cap Watch: SPS Commerce (SPSC) Surges 15%, Hits New All-Time High by TechStockProspector

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									Robert DeFrancesco’s
TechStockProspector.com
July 26, 2013

SPS Commerce (SPSC) Jumps 15%, Hits New All-Time High

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Here are some of the topics covered in the July 2013 issue:

*Mid-year update on the 8 TSP Tech Disruptors
*Splunk makes sense out of machine data
*A promising new growth vertical for NetSuite
*The deal pipeline builds at Guidewire Software
*ServiceNow pulling various growth levers
*Why Imperva continues to raise revenue guidance
*The key players to know in business analytics
*The bullish case for Cisco Systems
*Akamai Technologies accelerates mobile networks
*Can Aruba Networks hold its own against Cisco?
*How Ruckus Wireless benefits from Wi-Fi offloading
*A networking company to watch: SolarWinds
*Why some savvy investors were Demandware buyers
*Qualys gains market share in cloud-based IT security
*Riverbed Technology finds a new growth niche
*Palo Alto Networks is scorching firewall competitors
*Deal Report: IPO success for Gigamon

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It was the second strong quarter in a row for SPS Commerce (SPSC, $65.97), a
provider of cloud-based supply chain management solutions, with Q2 organic
recurring revenue growth coming in at 26%.

The stock today jumped 15.9% on active volume and hit a new all-time high of
$67.75. The market cap is up to $989 million. SPS Commerce shares ended 2012 at
$37.27.
In Q2, SPS Commerce added 473 customers, up from 421 adds in Q1. The total
number of recurring revenue customers advanced 11% year over year to 18,871.
Wallet share increased 15% organically.

For 2013, the company now expects revenue growth of 32% to 34%, up from the
previous guidance range of 28% to 30%.

The following piece on SPS Commerce appeared in the May 2013 issue of Tech-
Stock Prospector (TSP #135), when the shares were trading around $46.82:

In the January 2013 issue (TSP #131), I wrote about SPS Commerce (SPSC), a
provider of cloud-based supply chain management solutions, when the stock was
trading around $38.60. The shares at the end of April hit a new high at $48.52 after
the company delivered Q1 revenue growth of 44%, driven by 47% growth in recurring
revenue.

Revenue growth on an organic basis (excluding the Edifice purchase) was 24%. The
company now has roughly 18,400 recurring revenue customers, up 12% from a year
ago. Organic ARPU advanced 13%, accelerating from the 9% to 11% range over the
past few quarters thanks to up-sells (mainly analytics) and more channel sales (the
deals tend to be larger).

SPS Commerce is benefiting from suppliers and retailers collaborating more to get the
right products into the right places (both physical stores and online) to maximize
sales. For 2013, the company now sees top-line growth of 28% to 30%, above the
consensus estimate of 27.5%.

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Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
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