SPS Commerce, Inc.

Good day and welcome to the SPS Commerce first quarter 2024 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, Drew. Good afternoon, everyone. And thank you for joining us on SPS first quarter 2024 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 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, 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 Chad.

Thanks, Armina, and good afternoon, everyone. Thank you for joining us today. We delivered a strong start to the year. First quarter revenue grew 19% to $149.6 million. Recurring revenue also grew 19%. As a leader in supply chain cloud services, we are capitalizing on ongoing investments in automation. According to the 2023 MHI annual report of over 1,000 supply chain and manufacturing leaders, 74% plan to invest in supply chain technology and innovation, with 90% planning to spend over $1 million, an increase of 24% over last year, to improve supply chain resiliency, sustainability, and transparency. With an ongoing focus on automation across retail, SPS is leveraging our strong channel partnerships with technology leaders such as Acumatica, ensuring we are at the forefront of emerging trends, from the blurring lines in retail to sustainability, as omnichannel dynamics increase the complexity of fulfillment processes. Underscoring the value of such a collaboration, SPS was recently honored with the ISV Partner of the Year Award for Distribution at the Acumatica Summit. SPS offers deep integration expertise to help our customers increase the effectiveness of their ERP system, and enable instant connections to trading partners. As we continue to grow our network, we remain committed to excellent customer experience. We recently acquired SAP Business One integration technology from Vision 33, an expert in EDI system automation, expanding our leadership in full-service EDI. This acquisition deepens our expertise and experience in this space and broadens our access within the SAP ecosystem. The investments we make in our business and our solutions are key to our customer acquisition success and longstanding partnerships. With evolving retail dynamics, collaboration between trading partners is crucial. SPS is proud to have many decades-long relationships with customers across the retail ecosystem. For example, Select Brands, a third-generation family business designs and produces small kitchen appliances, offering a diverse brand portfolio and a global presence, selling products through a variety of channels, including big box retailers, online retailers, and direct-to-consumer. The company's success translated into rapid growth and increasing order volumes, which drove the need for automation. Select Brands upgraded its ERP by migrating to Oracle NetSuite, bolstering its infrastructure for scalability. Leveraging the NetSuite partnership with SPS, the company automated its fulfillment solution, which enhanced order processing with retailers and simplified collaboration with third-party logistics providers. Now a customer for 14 years, Select Brands worked with SPS to connect with 40 retail customers and 3PLs to fully automate the order to cash process. This partnership truly exemplifies the benefits SPS customers receive through our network model and commitment to last mile ERP integration technology. Canadian Tire, the number one retail brand in Canada, engaged with SPS in 2001 driven by the need to support various omnichannel fulfillment models across their network. As Canadian Tire grew through acquisitions, maintaining agility and flexibility in vendor relationships was paramount, and vendor onboarding for all five acquired retailers was outsourced to SPS. Throughout this longstanding relationship, SPS's role evolved from technology vendor to a strategic partner, delivering valuable insights that support order planning and distribution efforts across Canadian Tire's network. With more than 20 years in partnership supporting this significant growth trajectory, Canadian Tire trusts SPS's retail expertise to help them make the right decisions as they strive for supply chain resilience among evolving market demands. GNC, a leading health and wellness brand, maintains a vast retail presence, strong wholesale partnerships, and a growing digital footprint. Operating as both a retailer and supplier, GNC partnered with SPS to automate data exchange across their entire supply chain, improving collaboration with over 1,000 vendors and more than 30 retailers and grocers. In addition, sharing point of sale data enabled GNC and its vendors to optimize inventory management and sales strategies. To summarize, SPS's vast network, retail expertise, and unique go-to-market strategy are significant competitive differentiators. The ongoing investments in supply chain management underscore our conviction in the growth opportunity ahead of us as we continue to execute on our mission to be the world's retail network. With that, I'll turn it over to Kim to discuss our financial results.