SPS Commerce, Inc.

Good afternoon and welcome to the SPS Commerce third quarter 2022 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Irmina Brodzchik, Investor Relations for SPS Commerce. Please go ahead.

Thank you, Gary. Good afternoon, everyone, and thank you for joining us on SPS Commerce's third quarter 2022 conference call. We will make certain statements today, including with respect to our expected financial results, pull-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 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 income 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.

Thanks, Hermina, and welcome, everyone. SPS continues to deliver strong results, as retail dynamics and increasing supply chain complexity amplify the need for automation. With double-digit revenue growth and fulfillment and analytics, total revenue grew 17% to $114.5 million, and recurring revenue grew 18%. Suppliers and brands of all sizes are benefiting from automating their processes, with trading partners to improve efficiencies throughout the order fulfillment workflow, enable scale and international expansion, and increased assortment. For example, automation enables vendors to outsource fulfillment and inventory management to partners like Shopify, Amazon, or Etsy, and take advantage of their vast market reach, as well as their scale to enjoy discounted shipping rates and faster delivery. According to a survey conducted on behalf of Where to Go, a UPS company, 42% of consumers expect two-day shipping on their online orders. A separate survey from Linworks quotes that 61% of consumers want to purchase from businesses that offer next-day delivery. Brands are learning that there are many benefits to digital transformation, not the least of which is to help create a positive customer experience. Gym Plus Coffee, one of Ireland's largest and fastest-growing active and at-leisure brands, needed to streamline increased order volumes as they expanded internationally. With EDI and automation, they were able to synchronize inventory across all channels and prioritize order fulfillment based on warehouse locations. Gym Plus Coffee is now able to offer fast and efficient delivery to a global customer base and scale the business further. Pet Culture is a joint venture between Woolworths and PetSure in Australia. As a fast-growing startup retailer, they knew the supply chain is a critical part of their business. Their goal was to provide a superior online customer experience by offering the right assortment and having inventory readily available to ensure timely order fulfillment. Partnering with SPS Commerce to launch a supplier onboarding program, Pet Culture achieved 85% EDI compliance with an onboarding process set to bring on new vendors within 48 hours. EDI remains one of the most common automation methods in the grocery supply chain. To help grocers stay competitive and ensure they meet changing consumer shopping experiences, many retailers are standardizing how they exchange information across the supply chain. Most large retailers require EDI compliance, and for suppliers like Twin Cups, automation was necessary to scale and remain lean while signing new customers such as Safeway and Target. SPS continues to expand its network across industries to strengthen our competitive advantage. We recently acquired Intertrade, a provider of technical solutions for product information and transaction data exchange between retailers and suppliers across North America, including marquee retailers and brands in apparel and general merchandise. We are excited to have Intertrade employees and customers join our growing community of trading partners. as we strengthen our leadership position to become the world's retail network. For suppliers and retailers alike, regardless of the industry, how the order is placed, where it's fulfilled, and its final destination, automation is key to improving efficiency. SBS Commerce facilitates automation, enables integration with a range of e-commerce platforms, and future-proofs against new process and technology requirements. We continue to believe that increasing complexity in omnichannel retail will continue to fuel the need for automation between trading partners and throughout the supply chain. With that, I'll turn it over to Kim to discuss our financial results.