SPS Commerce, Inc.

Good day, and thank you for standing by. Welcome to SPS Commons Q2 2022 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star, then one, then one on your telephone. That's star, one, one. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker for the day, Ermina Blaschek. You may begin.

Thank you, Tawanda. Good afternoon, everyone, and thank you for joining us on SPS Commerce second quarter 2022 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 different materials. 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 financial measures, including reconciliations of these measures with comparable GAAP measures. And with that, I will turn the call over to Archie.

Thank you, Romina, and welcome everyone to SPS's 50th earnings conference call. Solid performance in the second quarter was driven by ongoing momentum in EDI adoption. Demand for fulfillment and analytics remained strong. with 17% and 12% year-over-year growth, respectively. Total revenue grew 15% to $109.2 million, and recurring revenue grew 16%. Adjusted EBITDA grew 13% to $30.9 million. SPS continues to capitalize on the retail industry's ongoing investments in supply chain management efficiency, digital transformation, and cloud migration. Retailers and suppliers are more motivated than ever to overhaul their systems to accommodate the demands of an omnichannel retail and to address ongoing supply chain disruptions. Since the pandemic, trading partners have been under pressure to implement agile, seamless, and resilient workflows to ensure business continuity, and that need has been amplified by ongoing macro challenges. SPS is uniquely positioned to support our customers with full-service EDI, which includes access to resources to help manage increasingly complex trading partner communications and help retailers and suppliers across various industries successfully navigate challenging supply chain dynamics while they focus on achieving their business objectives. Dakin Industries, the world's number one indoor comfort solutions company and largest HVAC manufacturer, has over 90 production sites worldwide. To support their growth plan, Daikin is tackling costly and time-consuming redundancies to get products to customers faster by eliminating all manual processes. They partnered with SPS to successfully accomplish EDI onboarding of all of their suppliers. Garnett Hill, an online boutique retailer specializing in fashion and home goods, chose to replace an existing order fulfillment process and adopt EDI to improve the customer experience with efficient inventory management, order tracking, and increasing speed to shelf. PV Industries, a leading farm and ranch supply retailer in Canada, offers a unique product mix that differentiates the company in the marketplace with an assortment of 45,000 SKUs from more than 1,400 vendors. PV worked closely with SPS on vendor outreach to communicate how critical automation is the company's growth, And today, close to 93% of the retailer's purchase order volume is automated through EDI. PV also leverages SPS's analytics solution, sharing point of sale data with vendors for greater visibility into its inventory position to drive sales performance and to develop vendor partnerships that support its ongoing success. With the help of SPS Commerce, Retailers are recognizing the importance of sharing data to drive business decisions and expand globally. Uni, a pizza oven company, expanded operations beyond UK and now partners with SPS across North America and Europe. Global companies such as Crocs are leveraging sell-through data across their sales channels to help drive visibility, profitability, and predictability to mitigate inventory pressure across their supply chain. SPS continually strives to help trading partners work better together as we expand our network and build on our leadership position. Earlier this month, we acquired G-Commerce, a software solution provider known for its expertise in the automotive aftermarket industry. We're excited to welcome the G-Commerce team and customers to SPS Commerce. In summary, increasing complexity in omnichannel retail and supply chain management continue to fuel investment in digital transformation as trading partners strive to improve collaboration and successfully deliver on today's consumer expectations. With that, I'll turn it over to Kim to discuss our financial results.