SPS Commerce Inc (SPSC)

Net profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	65,824	62,728	61,749	57,820	55,134	51,984	47,570	47,000	44,597	45,302	45,260	46,271	45,586	41,278	38,812	36,414	33,712	31,691	30,811	27,431
Revenue (ttm)	US$ in thousands	536,910	513,963	492,788	471,550	450,875	431,613	415,014	400,375	385,276	365,828	347,498	328,532	312,630	302,055	293,426	286,382	279,124	271,580	263,520	256,082
Net profit margin		12.26%	12.20%	12.53%	12.26%	12.23%	12.04%	11.46%	11.74%	11.58%	12.38%	13.02%	14.08%	14.58%	13.67%	13.23%	12.72%	12.08%	11.67%	11.69%	10.71%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $65,824K ÷ $536,910K
= 12.26%

The net profit margin of SPS Commerce Inc. has been relatively stable over the past eight quarters, ranging from 11.46% to 12.53%. This metric measures the percentage of each dollar of revenue that translates into profit after all expenses have been deducted. The company has demonstrated consistent profitability with margins consistently above 11% throughout the periods analyzed. Even though there were fluctuations quarter over quarter, the variations were not significant and the overall trend suggests that SPS Commerce Inc. has been effectively managing its costs to generate consistent profits relative to its revenue.