How did SPSC's Q4 earnings surprise investors?

SPS Commerce (SPSC) delivered a pleasant surprise in its Q4 2024 earnings report, with revenues surpassing estimates and a notable year-over-year growth, although EPS slightly missed expectations.

1. **Revenue Outperformance**: SPS Commerce's revenue for Q4 2024 amounted to $170.9 million, exceeding the estimated $169.27 million. This achievement reflects an impressive 18% increase in revenue compared to the same period the previous year.

2. **Earnings Per Share (EPS) Analysis**: The company reported an EPS of $0.46, which was slightly below the consensus estimate of $0.46, but it was a significant improvement from the $0.51 EPS in Q4 2023. This indicates a trend of improving profitability, despite missing the exact EPS target.
3. **Non-GAAP EPS**: SPS Commerce's non-GAAP EPS stood at $0.89, up from $0.75 in Q4 2023. This suggests that the company's core business performance is strengthening, which is a positive signal for investors.
4. **Consistent Growth**: SPS Commerce has now achieved 96 consecutive quarters of revenue growth, which underscores its strong market position and product demand in the retail supply chain sector.

Overall, while there was a slight miss on EPS, the robust revenue outperformance, improved non-GAAP EPS, and consistent growth trajectory likely contributed to a positive investor sentiment. The company's ability to exceed revenue expectations and demonstrate steady growth is a testament to its strategic direction and market competitiveness.