SPS Commerce (SPSC) Revenue Rose 19% Despite a Difficult Macro Environment

Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 12.26% net of fees in the first quarter, compared to the Russell 2000 Growth Index’s 6.07% return. In addition to positive stock selection, rebound by many of the higher-growth stocks, which detracted in 2022, and an underweight exposure to the weakest performing sectors of the Index benefitted the strategy in Q1. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Small Cap Strategy highlighted stocks like SPS Commerce, Inc. (NASDAQ:SPSC) in the first quarter 2023 investor letter. Headquartered in Minneapolis, Minnesota, SPS Commerce, Inc. (NASDAQ:SPSC) offers cloud-based supply chain management solutions. On May 23, 2023, SPS Commerce, Inc. (NASDAQ:SPSC) stock closed at $159.96 per share. One-month return of SPS Commerce, Inc. (NASDAQ:SPSC) was 12.13%, and its shares gained 53.99% of their value over the last 52 weeks. SPS Commerce, Inc. (NASDAQ:SPSC) has a market capitalization of $5.844 billion.

Conestoga Small Cap Strategy made the following comment about SPS Commerce, Inc. (NASDAQ:SPSC) in its Q1 2023 investor letter:

“SPS Commerce, Inc. (NASDAQ:SPSC): SPSC provides cloud-based supply chain management software to retailers, suppliers, and third-party providers. Like ALTR above, SPSC has managed the macroeconomic environment well. SPSC grew revenue 19% in the fourth quarter and raised profitability guidance for 2023. Adjusted EBITDA margins continued to expand and approached 30%. Late in the quarter, CEO Archie Black announced his intentions to step down after guiding the company as CEO since 2001. SPSC will likely add an external candidate with a similar vision.”

Pixabay/Public Domain

SPS Commerce, Inc. (NASDAQ:SPSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held SPS Commerce, Inc. (NASDAQ:SPSC) at the end of first quarter 2023 which was 22 in the previous quarter.

We discussed SPS Commerce, Inc. (NASDAQ:SPSC) in another article and shared the list of high growth SaaS stocks that are profitable. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 15 Stocks Warren Buffett Sold
• 12 Trusted Bitcoin Investment Sites
• 10 Best Small Cap Bank Stocks With Dividends

Disclosure: None. This article is originally published at Insider Monkey.