SPS Commerce, Inc.

and welcome to the SPS Commerce Q2 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Hermina Blaszczak. Please go ahead.

Thank you, Josh. Good afternoon, everyone, and thank you for joining us on SPS Commerce second quarter 2021 conference call. We will make certain statements today, including with respect to our expected financial results, go-to-market strategy and efforts designed to increase attraction and penetration with retailers and other customers. These statements are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to our SEC filings, specifically our Form 10-K, as well as our financial results press release for a more detailed description of the risk factors that may affect our results. These documents are available at our website, spscommerce.com, and at the SEC's website, sec.gov. In addition, we are providing a historical data sheet for easy reference on our investor relations section of our website, spscommerce.com. During our call today, we will discuss adjusted EBITDA financial measures and non-GAAP earnings per share. In our press release and our filings with the SEC, each of which is posted on our website, you will find additional disclosures regarding these non-GAAP and adjusted EBITDA measures including reconciliations of these measures with comparable gap measures. And with that, I will turn the call over to Archie.

Thanks, Hermina, and welcome, everyone. We are pleased to report another outstanding quarter driven by strong demand for SPS's fulfillment solution. The acceleration in e-commerce we have witnessed since the pandemic began continues to drive the digital transformation as retailers and suppliers conform to the omnichannel customer experience. Total revenue grew 25% to $94.5 million, and recurring revenue grew 22%. We continue to see strong momentum and fulfillment, which grew 24% year over year. Adjusted EBITDA grew 34% to $27.3 million. In a recent study by the Economist Intelligence Unit, 72% of enterprises have significantly accelerated their pace of digital transformation. and EDI is an integral part of the Digital Transformation Initiative. Our growing network of e-commerce services and retailers, suppliers, vendors, and distributors are leveraging SPS's industry-leading EDI solution to adapt their businesses to the demands of omnichannel retail. Osborne, the world's largest surface treatment and finishing provider, faced several challenges with its SAP EDI system. Many SAP EDI solutions require significant ongoing maintenance from IT teams to meet EDI requirements or to add trading partners. Some require making changes to the SAP system itself, which can be difficult and costly. Osborne deployed SPS fulfillment for SAP and was able to avoid hiring staff to support EDI operations, improve their order fulfillment performance, and freed up resources. to focus on the company's strategic initiatives. Our full-service solutions also help suppliers manage orders from all retail channels, including retailers, wholesalers, distributors, marketplaces, and e-commerce stores like Shopify. For example, businesses using Shopify for their online stores can leverage SPS capabilities to manage orders from the Shopify e-commerce platform. It makes Shopify integration fast, easy, and affordable, and most merchants are ready to electronically receive their first order from thousands of retailers within 48 hours. This brings the simplicity and power of SPS fulfillment to 800,000 companies using the Shopify platform. Shields, one of the largest sporting goods retailers in America and a longtime SPS partner, recently boosted its supply chain automation with electronic order fulfillment. making EDI a requirement for all their vendors. Working with SPS to quickly onboard their suppliers, today over 95% of Shield's purchase orders are received via EDI, and products are stocked on the store floor within 48 hours of delivery instead of weeks, despite a reduction in labor hours. With approximately 1,700 brands present in stores at any given time, It's been a win-win for both Shields and their vendors to automate their trading partner relationships with SPS fulfillment. EDI software integration is a proven tool that unlocks digital transformation potential for trading partners across all industries. Omni-channel retail continues to fuel the demand for SPS solutions while growing our addressable market. This is a very exciting time for SPS Commerce. The strategic investments we have made in our platform and our people have positioned us well to capitalize on existing and new opportunities around the world. With that, I'll turn it over to Kim to discuss our financial results.