With retailers investing more in systems that enable them to fulfill orders from any of several selling channels, SPS Commerce Inc. is posting strong revenue gains from sales of its supply chain collaboration and related software, the company says.

For the first quarter, SPS posted revenue of $36.97 million, up 27.7% from $28.94 million a year earlier.

CEO Archie Black says the trend toward omnichannel retailing is raising consumer expectations that they can obtain products quickly no matter how they order them. And that is creating increased demand for the suite of Internet- or cloud-based software that SPS Commerce sells to enable retailers and their suppliers share information on sales demand and product production to better ensure that retailers have products available across networks of distribution centers to fulfill orders across regardless of how customers placed them. “SPS is addressing the call of the omnichannel consumer,” Black said during a recent conference call with stock analysts.

For the quarter ended March 31, Minneapolis-based SPS also reported:

Net income increased 57.1% to $586,000 from $373,000 a year earlier;

Sales and marketing expenses increased 26.3% to $13.74 million from $10.88 million;

Research and development expenses increased 37.0% to $4.07 million from $2.97 million.

Sign up for a free subscription to B2BecNews, a weekly newsletter that covers technology and business trends in the growing B2B e-commerce industry. B2BecNews is published by Vertical Web Media LLC, which also publishes the monthly business magazine Internet Retailer. Follow B2BecNews editor Paul Demery on Twitter @pdemery. 

Favorite