SPS Commerce, Inc.

Good day and welcome to SPS Commerce Q2 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star keys 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 touch-tone phone. To withdraw your questions, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Ms. Irmina Blaszczyk. Please go ahead.

Thank you, Ranjit. Good afternoon, everyone, and thank you for joining us on SPS Commerce second 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 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 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, Romina, and good afternoon, everyone. Thank you for joining us today. SPS Commerce delivered a strong second quarter result. Second quarter revenue grew 22% to $187.4 million. Recurring revenue grew 24%. Resilience and agility remain top of mind for trading partners across global supply chains, whether a result of tariffs or the need for cost and operational efficiencies. SPS is dedicated to supporting the supplier community through today's uncertain times. which we believe will ultimately incentivize them to increase investments in technologies that improve and optimize processes across their vendor networks. SPS Commerce is the only full-service EDI solution on the market, uniquely positioned to help suppliers effortlessly maintain EDI compliance with retailers' frequently changing requirements. Most importantly, our product portfolio enables stronger collaboration between trading partners, unlocking greater efficiency, cost savings, and shared success. These are dynamics that we believe position SPS for durable growth. For example, Trader Joe's, a national chain of over 600 neighborhood grocery stores, has been a longstanding SPS fulfillment customer. In an effort to reduce manual processes, improve order selection efficiencies, reduce shipping errors, and prepare for future growth, Trader Joe's has recently rolled out EDI compliance requirements across the entire vendor base. By partnering with SPS, Trader Joe's is accelerating progress toward 100% vendor compliance. Managing supplier relationships remains one of the biggest challenges in retail. Compliance is an important part of managing supplier performance, but a scorecarding effort with insightful supplier metrics can help both the retailer and its suppliers perform better together. Research shows that organizations that systematically track and improve supplier performance can see sales increases of up to 10% and margin improvements of up to 12%. When products arrive on time and orders are filled completely, retailers can maximize sales opportunities while keeping operations efficient. Using SPS's supply chain performance management solution, one of the largest grocery retailers in the United States with nearly 500 locations gained actionable insights into their vendors' performance and shared the data with their trading partners to improve efficiencies across the board. The grocer boosted on-time and in-full performance and reduced overall out-of-stocks, resulting in higher-performing and more profitable supply chain in less than one year. Gemplers, a trusted retail brand for farm and home supply products, is another recent example of a retailer who uses SPS's supply chain performance suite. Gemplers switched to SPS Commerce from another EDI provider to increase EDI compliance from three to nearly 100 vendors in an effort to improve order automation and support omnichannel growth. The revenue recovery solutions we've acquired are beginning to deliver value to SPS fulfillment customers. As we advance the post-merger integration of SupplyPike and CarbonSix, We're leveraging our expanded product portfolio to grow wallet share with our existing fulfillment customers. The advantages of a unified platform amplified by the data across our network are becoming increasingly evident. For example, All Star Innovations offers turnkey solutions for taking products from concept to consumer. The company has been an SPS fulfillment customer since 2022 and recently started using the revenue recovery solution for retailers including Walmart, Target, Home Depot, and Amazon. SPS's unified platform approach is a competitive differentiator in its coverage of retailers, expertise in retailer deduction complexities, and data on our network. We leverage order data to estimate customers' recoverable deductions, giving them greater visibility into potential revenue recovery opportunities with their trading partners. In summary, SPS's product portfolio addresses the pain points of both retailers and suppliers. Our full-service approach is designed to successfully implement solutions and improve supply chain partnerships with ongoing support to manage compliance. As a result, SPS is uniquely and competitively positioned to empower participants of the world's largest retail network to work better together today while helping them build resilience to meet the challenges of tomorrow. With that, I'll turn it over to Kim to discuss our financial results.