SPS Commerce, Inc.

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 a touch-tone phone. And to withdraw your question, please press star and then two. Please note that this event is being recorded. I would now like to turn the conference over to Armina Blaszczyk. Please go ahead.

Thank you, Nick. Good afternoon, everyone, and thank you for joining us on SPS Commerce's fourth quarter and full year 2024 conference call. We will make certain statements today, including with respect to our expected financial results, quarter 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 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 resource press release for more detailed description of 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 the 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 Chad.

Thanks, Ramina, and good afternoon, everyone. Thank you for joining us today. SPS Commerce continues to execute its mission to provide the retail industry with solutions to optimize trading partner relationships. We delivered a strong fourth quarter and another year of solid performance. For the full year 2024, revenue grew 19% to $637.8 million. Recurring revenue grew 20% with fulfillment growth of 20% and analytics growth of 8%. In 2024, we added valuable products to our portfolio with the acquisitions of Vision 33's SAP Business One integration technology, Traverse Systems, and SupplyPike. And on February 7th, we announced the closing of our acquisition of Carbon 6, which builds on SPS's acquisition of SupplyPike to extend the reach of our network and positions us with clear leadership in revenue recovery solutions, supporting the supplier communities of the two largest global retailers, including the rapidly growing Amazon marketplace. By powering highly collaborative supply chains, SPS builds longstanding partnerships with retailers like Canadian Tire, the number one retail brand in Canada. They engaged with SPS in 2001, driven by the need to support various omni-channel fulfillment models across their network. With more than 20 years in partnership supporting a 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 retail dynamics. GNC is the world's largest global specialty health wellness products retailer and one of SPS's longtime customers. 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, using SPS's analytics solution, GNC shares point-of-sale data to enable its vendors to optimize inventory management and sales strategies. GNC was also a Traverse Systems customer prior to our acquisition and leveraged the platform to gain complete visibility into every part of the purchase order lifecycle. They were able to isolate the root causes of problematic shipments and worked with vendors to raise the advanced shipping notice compliance rate from 76% to 92%. This resulted in better visibility into inbound shipments allowing GNC to improve time to value of its inventory. Bissell, a leading manufacturer of home cleaning solutions, uses SupplyPike's automated revenue recovery solutions to consolidate data from retailer portals into a single user-friendly platform. This gave Bissell the visibility they needed to save millions in disputed deductions across multiple retailers. Having access to the data on one platform also helped Bissell gain actionable insights into deduction trends across retailers, identify areas for improvement, and optimize revenue recovery strategies. Canadian Tire, GNC, and Bissell are great examples that demonstrate the possibility of wallet share expansion across SPS's supplier network. I would now like to spend a couple minutes on our growth opportunity. Last year, we committed to providing an updated view of our addressable market. Over the last several months, we worked with a third-party strategy consulting firm to evaluate the size of SPS's market opportunity, taking into consideration our current product portfolio. We identified the applicable industries, determined potential customer count and potential wallet share, and we currently estimate our addressable market to be $11.1 billion globally, including $6.5 billion in the U.S. The $11.1 billion-dollar TAM equates to 275,000 recurring revenue customers on average spending of approximately $40,500 per year. As we look at the global market opportunity, we address the needs of all sizes of customers, small, medium, and large. We have included several slides in our investor presentation to demonstrate this updated view of our addressable market. Our expectation is that going forward, we will continue to report the global number of recurring revenue customers and ARPU on a quarterly basis and provide information related to the penetration levels across our customer categories on an annual basis. To summarize, we are pleased with what we have accomplished in 2024, and I'd like to congratulate the SPS Commerce employees for their unwavering commitment to excellence and exceptional understanding of the retail supply chain. With the depth and breadth of solutions we offer today, we are uniquely positioned to support all trading relationships and continue growing our network to move the world of commerce forward. With that, I'll turn it over to Kim to discuss our financial results.