SPS Commerce, Inc.

Hello, and thank you for standing by. Welcome to SPS Commerce Q4 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 Blaszczyk. Please go ahead.

Thank you, Josh. Good afternoon, everyone, and thank you for joining us on SPS Commerce fourth quarter and full year 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 our traction 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, each of which is posted on our website, you will find additional disclosures regarding these non-GAAP financial measures, including reconciliations of these measures with comparable GAAP measures. And with that, I would like to turn the call over to Archie.

Thanks, Armina, and welcome, everyone. 2021 marks another year of strong execution and profitable growth for SPS Commerce, as retail dynamics continue to emphasize the need for fulfillment automation and supply chain efficiency. Since the pandemic began, consumer shopping habits forced retailers and suppliers to embrace a true omnichannel strategy. In addition, ongoing disruption across the global supply chain was intensified by unanticipated spikes in consumer demand, port delays, and labor shortages. Overnight, supply chain automation became a priority for the retail industry, and SPS Commerce was instrumental in in connecting thousands of suppliers and retailers to overcome inventory constraints and get products to consumers. Our add-on solutions, such as carrier service and streamlined connections to e-commerce platforms and marketplaces, are helping our customers execute a true omnichannel strategy and represent a growth opportunity while expanding our addressable market. The need for supply chain automation continued to fuel demand for EDI. For the full year, revenue grew 23% to $385.3 million. Recurring revenue grew 20% year-over-year, led by fulfillment growth of 22%. We're also seeing acceleration in analytics, which grew 10% in 2021, as retailers are adopting omni-channel fulfillment strategies and leveraging stores for distribution, making point-of-sale data critical in optimizing product sales and inventory. Net new customer ads increased by 40% in 2021, which excludes the recent Genius Central acquisition, following organic growth of 27% in 2020 as retailers, brands, and suppliers continue to prioritize automation and a consumer-centric fulfillment strategy. Stitch Fix, a leading e-commerce personal styling service, needed to completely overhaul their technology landscape to enable ongoing business expansion. They chose SPS for our ability to onboard vendors in volume, provide full-service support, and offer expertise in vendor and distribution management. William Sonoma, a multi-channel specialty retailer of high-quality home products, was focused on expanding its ship-to-consumer distribution channel capabilities since early 2020 and engaged with SPS to onboard over 500 dropship vendors to EDI. 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. Making changes to the SAP system itself can be difficult and costly. Osborne deployed SPS fulfillment for SAP and was able to avoid hiring staff to support EDI operations. improved their order fulfillment performance, and freed up resources to focus on the company's strategic initiatives. Shields, one of the largest sporting goods retailers in America and a longtime SPS partner, made EDI a requirement for all their vendors. They worked with SPS to quickly onboard their suppliers and now send over 95% of their purchase orders via EDI. Their products are stocked on the 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 partnerships. Buc-ee's, a gas station and convenience retailer with approximately 40 stores across the U.S. and a growing number of locations, needed to increase efficiencies throughout the supply chain by improving visibility into shipments and inventory. In conjunction with an ERP update, Buc-ee's is aiming to automate order fulfillment across all their vendors and chose SPS for their EDI solution. Hello Bello, a family and baby product company, embraced evolving retail dynamics and migrated their on-premise solution to a cloud ERP and selected Microsoft Dynamics 365. Having signed a one-year exclusive contract with Walmart, they had to ensure their operations could handle the expected volume. Thanks to SPS's vast network and expertise in Microsoft ERP integration, Hello Bello went from sign-on to go-live in a matter of weeks. Lastly, to strengthen our leadership in food retail and distribution, we recently acquired Genius Central, a leader in in-aisle ordering for natural and specialty food grocers. SPS's competitive differentiation And our ability to expedite trading partner onboarding is rooted in the size of our network, our world-class products and people, and the strategic acquisitions we made over the years to facilitate integration of the SPS solution to our customer's ERP system. Our investments are accelerating our growth while expanding our addressable market. SPS has grown from a groundbreaking, disruptive idea into the largest retail cloud service and the industry's first integrated suite of products architected for today's omnichannel retail world. I would like to thank all of our employees for their steadfast dedication to the company and our customer success. With that, I'll turn it over to Kim to discuss our financial results.