SPS Commerce Inc (SPSC)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	77,054	65,824	55,134	44,597	45,586
Revenue	US$ in thousands	637,765	536,910	450,875	385,276	312,630
Net profit margin		12.08%	12.26%	12.23%	11.58%	14.58%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $77,054K ÷ $637,765K
= 12.08%

The net profit margin of SPS Commerce Inc has demonstrated variability over the five-year period from December 31, 2020, to December 31, 2024. The net profit margin was 14.58% in 2020, indicating that for every dollar of revenue generated, the company retained approximately 14.58 cents as net profit. Subsequently, the net profit margin decreased to 11.58% in 2021, before rebounding to 12.23% in 2022, 12.26% in 2023, and finally settling at 12.08% in 2024.

This trend suggests that SPS Commerce Inc has maintained a relatively healthy level of profitability, with the net profit margin generally staying above 10% throughout the period. However, the fluctuations in the net profit margin highlight the company's ability to manage costs and generate profits amidst changing market conditions and operational challenges. Further analysis of the factors influencing these fluctuations could provide valuable insights into the company's overall financial performance and strategic direction.