SPS Commerce, Inc.

Good day and welcome to the SPS Commerce Q4 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 touchtone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Armina Blaszczyk, Investor Relations for SPS Commerce. Please go ahead.

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us on SPS Commerce First Quarter and Fiscal Year 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 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 filing, 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 the comparable GAAP measures. And with that, I will turn the call over to Archie.

Thanks, Hermina, and welcome, everyone. 2022 was another strong year for SPS Commerce. The ongoing transition to omnichannel retail and increasing complexity in supply chain management continued to fuel the need for automation. Q4 of 2022 represented our 88th consecutive quarter of revenue growth, driven by our network effect, community go-to-market approach, retail expertise and execution, all of which culminate in excellent customer experience and underscore SPS Commerce's competitive differentiation. For the full year 2022, revenue grew 17% to $450.9 million. Recurring revenue grew 18%, led by fulfillment growth of 19%, and analytics, which grew 10%. In 2022, the number of recurring revenue customers increased reached 42,300. SPS Commerce offers solutions to address supply chain challenges and make trading partner relationships more collaborative and profitable. For some of our customers, gaining EDI or API capability enables them 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. Other customers leverage our full suite of solutions which are designed to simplify omnichannel fulfillment for brands and suppliers of all sizes and across many industries. We help those customers achieve scale, supply chain efficiency, and international expansion. Gym Plus Coffee one of Ireland's largest and fastest growing active and at leisure brands, used EDI and automation to synchronize inventory across all sales channels and prioritize order fulfillment based on warehouse locations to offer fast and efficient delivery to a global customer base. Ooni, a pizza oven company, expanded operations beyond U.K., and now partners with SPS across North America and Europe. Dakin Industries, the world's number one indoor comfort solutions company and the largest HVAC manufacturer, has over 90 production sites worldwide. To support their growth plan, Dakin partnered with SPS to drive EDI compliance across all their suppliers. Pet Culture. a joint venture between Woolworths and Petsure in Australia, achieved 85% EDI compliance with SPS Commerce onboarding program and set up a process to bring on new vendors within 48 hours. To help grocers stay competitive and meet changing consumer shopping expectations, many are standardizing how they exchange information across supply chain, and EDI remains one of the most common protocols. 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. PV Industries, a leading farm and ranch supply retailer in Canada, worked closely with SPS to automate nearly 93% of the retailer's purchase order volume through EDI. PV also leverages SPS's analytic solution, sharing point-of-sale data with vendors for greater visibility into its inventory position to drive sales performance and develop vendor partnerships that support its ongoing success. Global companies such as Crocs are leveraging sell-through data across all their sales channels to help drive visibility, profitability, and predictability to mitigate inventory pressure across their supply chains. Lastly, SPS continually strives to help trading partners work better together as we expand our network and build on our leadership position. In 2022, we acquired G-Commerce, a software solution provider known for its expertise in the automotive aftermarket industry. We also acquired InterTrade Systems to strengthen our leadership across apparel and general merchandise markets. Over the years, SPS has has consistently executed on our mission to connect all retail trading partners through the easiest-to-join and used network. Since 2017, we have realigned our sales force, increased our focus on digital marketing, and launched a new fulfillment solution and add-on products. We also remain laser-focused on improving customer experience as we significantly enhanced full-service omnichannel supply chain solutions and system integrations through internal development and targeted acquisitions. These strategic investments are consistent with our core value, win today, win tomorrow, which helped us build the world's largest cloud retail network and positions us for continued success. With that, I'll turn it over to Kim to discuss our financial results.