The provider of supply chain technology and services designed to help retailers collaborate with their suppliers said second quarter revenue jumped 15%.

Archie Black, CEO of SPS Commerce Inc., says his company has been working hard at rolling out this year the latest version of its “web fulfillment” software designed to help retailers and their merchandise suppliers better deliver the hottest products to consumers when and where they want them.

It is more crucial than ever for retailers and suppliers to have a truly omnichannel strategy.
Archie Black, CEO
SPS Commerce Inc.

“It is more crucial than ever for retailers and suppliers to have a truly omnichannel strategy, to reach the greatest number of consumers,” he said in a second quarter earnings call with stock analysts, according to a transcript from Seeking Alpha. “And in order to succeed, they must deliver the best possible experience across all shopping channels.”

Archie Black, CEO,
SPS Commerce Inc.

Black went on to note that the new web fulfillment product—which SPS launched last year as a “more cost-effective” method of managing retailer-supplier interactions than traditional electronic data interchange, or EDI—was being used by suppliers in the SPS network including Something Special Deli Foods and B&G Enterprises. He added that Walgreens Boots Alliance, operator of the Walgreens pharmacy chain, is using SPS’s cloud fulfillment technology in a new project to improve how the retailer can work with its suppliers on fulfilling orders directly to individual retail stores instead of to distribution centers.

Such activity among suppliers and retailers drove up second quarter revenue at SPS by 15%, to $54.3 million, SPS said.

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For the second quarter ended June 30, SPS reported:

  • Revenue of $54.28 million, up 14.6% from $47.35 million a year earlier;
  • Gross profit of $36.09 million, up 15.0% from $31.38 million, resulting in a gross profit margin of 66.5%, up from 66.3%;
  • Net income of $1.825 million, up 418.5% from $352,000.

For the six months ended June 30, SPS reported:

  • Revenue of $106.22 million, up 14.3% from $92.95 million a year earlier;
  • Gross profit of $70.695 million, up 13.8% from $62.097 million, resulting in a gross profit margin of 66.6%, down slightly from 66.8%;
  • Net income of $4.796 million, up 243.6% from $1.396 million.

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