SPS Commerce, Inc.

Good day and welcome to the SPS Commerce first quarter 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. 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 Ermina Blaszczyk, Investor Relations for SPS Commerce. Please go ahead.

Thank you, Andrew. Good afternoon, everyone, and thank you for joining us on SPS Commerce first quarter 2023 conference call. We will make certain statements today. including with respect to our expected financial results, both 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 reverse 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, Armina, and welcome, everyone. The first quarter of 2023 marks a strong start to the year. as macro and omnichannel dynamics continue to drive the need for efficiency across the retail industry. We continue to see strong momentum in fulfillment and analytics and achieve total revenue of $125.9 million. Both total revenue and recurring revenue grew 20%. Before I continue with my prepared remarks, I'd like to acknowledge the announcement we made in early March about my planned retirement. The board is in the process of conducting a search for my successor, and in the meantime, we continue to execute our strategy to be the world's retail network. The expertise and knowledge we gain from working with over 115,000 trading partners worldwide uniquely positions us as a business advisor to existing and potential customers who are looking to improve efficiency and productivity. Over the past three years, Retailers and suppliers face changing consumer behavior, growth in sales channels, and volatility in the supply chain. Coupled with ongoing macroeconomic uncertainty, strain on the retail industry has been substantial, uncovering inefficiencies among the trading partners of all sizes. SPS Commerce is proud to work with retailers and suppliers across different industries, helping growing businesses embrace automation and position them for success. We recently launched a community campaign for the True Value Company, a wholesaler with over 4,500 independent retail locations worldwide and one of the largest distributors in the US. Our initial engagement to address specific EDI inefficiencies led to a full business assessment by SPS. Having recognized our ability to improve the quality and adoption of EDI within their vendor community True Value decided to partner with SPS to standardize electronic order fulfillment with over 1,000 vendors. We believe this will result in improved order and inventory management, cost savings, and trading partner performance across key metrics such as fill rates and ship timelines to deliver a better customer experience. SPS Commerce's network model, our channel partner collaboration, EDI expertise, and our suite of solutions are key differentiators and underscore our competitive advantage. Orveon, a private equity-backed collective of premium cosmetic brands, was focused on long-term omnichannel success and was introduced to SPS during an ERP implementation. Making EDI a priority, Orveon became a fulfillment customer. And in an effort to optimize the omnichannel experience, they subscribed to analytics to gain visibility in the inventory levels and sell-through across their various sales channels. Orveon is a prime example of a customer who is successfully navigating the omnichannel journey, leveraging SPS's fulfillment and analytics solutions to work with trading partners that include Bloomingdale's, Macy's, and Nordstrom's. In summary, the ongoing expansion of our network is a reflection of SPS's ability to help retailers, suppliers, and emerging brands successfully and cost-effectively adapt to omnichannel retail while they future-proof their investments in supply chain automation. I believe our strategy and our people position SPS Commerce for continued success as we capitalize on the growth opportunities ahead of us. With that, I'll turn it over to Kim to discuss our financial results.