SPS Commerce, Inc. (NASDAQ:SPSC) Q1 2023 Results Conference Call April 26, 2023 4:30 PM ET

Company Participants

Irmina Blaszczyk - IR

Archie Black - CEO

Kim Nelson - CFO

Conference Call Participants

Scott Berg - Needham & Company

Parker Lane - Stifel

Jeff Van Rhee - Craig-Hallum

Joe Vruwink - Robert W. Baird & Company

Operator

Good day, and welcome to the SPS Commerce First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Irmina Blaszczyk, Investor Relations for SPS Commerce. Please go ahead.

Irmina Blaszczyk

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, 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 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.

Archie Black

Thanks, Irmina, 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 achieved 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.