SPS Commerce, Inc.

Good day and welcome to the SPS Commerce first quarter FY25 conference call. All participants will be in the 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 that this event is being recorded. I would now like to turn the conference over to Irmina. Last check. Please go ahead.

Thank you, Sagar. Good afternoon, everyone, and thank you for joining us on SPS Commerce First Quarter 2025 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 discern 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 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 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, Irina. And good afternoon, everyone. Thank you for joining us today. SPS Commerce delivered a strong first quarter and a great start to the year. First quarter revenue grew 21% to $181.5 million. Recurring revenue grew 23%. As supply chains continue to evolve and macro dynamics impact their performance, the benefits of automation become more apparent. Our customers are telling us that their growth and profitability relies heavily on having the most efficient processes with their trading partners. SPS Commerce is committed and uniquely positioned to support and improve all trading partner relationships with a product portfolio that now includes fulfillment, analytics, e-invoicing, supply chain performance suite for retailers, and revenue recovery. In February, we closed the acquisition of Carbon 6, which expanded our portfolio and established SPS as a clear leader in the emerging category of revenue recovery, supporting supplier communities of the two largest global retailers. We're excited to welcome our new employees and customers to SPS Commerce. SPS network participants who recognize the initial benefits of automation tend to implement additional efficiencies over time. It is not uncommon for SPS to run numerous enablement campaigns for one retailer over the course of several years to reach all trading partners across all divisions and brands. We repeat this process for new compliance requirements and ongoing onboarding of new vendors. For example, Fastenal, one of the world's largest industrial distributors, has significantly diversified their product line over the years, adding thousands of suppliers to their network. They started with SPS Commerce in 2009 to run enablement campaigns, which included advanced shipment notice onboarding and rolling out additional requirements to improve visibility across transportation, logistics, inventory, and assortment. Barilla, a globally recognized brand specializing in high-quality pasta, sauces, and Italian food products, has operations in over 100 countries. To maintain its competitive edge and meet growing demand, Barilla had to overhaul its supply chain model and shift from direct imports via containers to local 3PL fulfillment strategy to secure local inventory. Barilla needed to integrate a new local ERP system with its customers and warehouse partners using EDI to streamline critical processes such as order handling. With the support of SPS Commerce, they successfully established a scalable system that not only improved operational efficiency, but also prepared the company for future expansion and adapting to new markets, setting the stage for long-term growth. According to a recent survey of 579 supply chain professionals across industries, Gartner found that only 29% of supply chains are ready for the future and that most top-performing companies have yet to fully embrace advanced technologies. SPS actively engages with industry groups to promote the tools available to them to advance their supply chain performance. We recently participated in the Food Industry Association Supply Chain Forum and worked with key industry players to evaluate the possibility of deploying a collaborative supply chain performance scorecard. With access to data across our network, SPS is uniquely positioned to help execute such a collaboration at scale and drive measurable results for grocery retailers and suppliers. Over the years, SPS has shown the ability to seamlessly and cost-effectively implement efficiencies across supply chains and improve vendor compliance, add trading partner connections to grow sales, and advance operations in a constantly changing retail industry. With the added uncertainty of today's economic backdrop, we are closely monitoring how current trade dynamics are impacting the retail industry, and we are committed to helping our partners and customers successfully navigate challenging macro environments. In summary, SPS Commerce operates a network of over 50,000 suppliers, logistics companies, and buying organizations across retail, distribution, grocery, and manufacturing. and we are uniquely positioned to support all trading relationships. With an $11 billion total addressable market, we have a tremendous opportunity to transform how trading partners work together as they continue to advance their supply chain technologies. With that, I'll turn it over to Kim to discuss our financial results.