SPS Commerce Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SPS Commerce Inc. has filed its 2023 10-K annual report detailing its financial performance and business operations.</b>

AI Summary

SPS COMMERCE INC (SPSC) filed a Annual Report (10-K) with the SEC on February 21, 2024. SPS Commerce Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 333 South Seventh Street, Suite 1000, Minneapolis, MN 55402. SPS Commerce Inc. is incorporated in Delaware. The company's IRS number is 411593154.

Why It Matters

For investors and stakeholders tracking SPS COMMERCE INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of SPS Commerce's financial health and strategic direction for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial statements and risk factors within this report are essential for stakeholders to understand the company's operational landscape, potential challenges, and growth opportunities in the software services sector.

Risk Assessment

Risk Level: medium — SPS COMMERCE INC shows moderate risk based on this filing. The company operates in the software services industry, which is subject to rapid technological changes and competitive pressures, as indicated by its SIC code 7372 (Services-Prepackaged Software).

Analyst Insight

Review the detailed financial statements and management's discussion and analysis in the 10-K to understand SPS Commerce's revenue streams, profitability, and growth strategies for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-21 — Filing Date (FILED AS OF DATE)
• 411593154 — IRS Number (IRS NUMBER)
• 001-34702 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• SPS COMMERCE INC (company) — FILER
• 0001092699-24-000012 (filing_id) — ACCESSION NUMBER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240221 (date) — FILED AS OF DATE
• 333 SOUTH SEVENTH STREET SUITE 1000 (address) — BUSINESS ADDRESS
• MINNEAPOLIS (location) — CITY
• DE (state) — STATE OF INCORPORATION
• 7372 (industry_code) — STANDARD INDUSTRIAL CLASSIFICATION

FAQ

Industry Context

SPS Commerce operates within the software services industry, specifically focusing on prepackaged software solutions, as indicated by its SIC code 7372.

Regulatory Implications

The filing is a Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ended December 31, 2023, to identify key performance indicators and trends.
2. Review the risk factors section to understand potential challenges and their impact on SPS Commerce's business.
3. Examine any disclosures regarding executive compensation or significant corporate events mentioned in the filing.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-02-21: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SPSC The Nasdaq Stock Market
• $192.06 — t (based upon the closing sale price of $192.06 per share on the Nasdaq Global Market o
• $536.9 m — 022, and 2021, we generated revenues of $536.9 million, $450.9 million, and $385.3 milli
• $450.9 m — e generated revenues of $536.9 million, $450.9 million, and $385.3 million, respectively
• $385.3 m — of $536.9 million, $450.9 million, and $385.3 million, respectively. Our quarter ended

Filing Documents

• spsc-20231231.htm (10-K) — 1579KB
• a2023_xex1018non-employeed.htm (EX-10.18) — 19KB
• a2023_xex211-subsidiarylist.htm (EX-21.1) — 14KB
• a2023_xex231-consentofaudi.htm (EX-23.1) — 2KB
• a2023_10kexhibitex311ceo.htm (EX-31.1) — 9KB
• a2023_10kexhibitex312cfo.htm (EX-31.2) — 9KB
• a2023_10kexhibitex321ceocfo.htm (EX-32.1) — 6KB
• a2023_xexex97compensationr.htm (EX-97) — 26KB
• spsc-20231231_g1.jpg (GRAPHIC) — 4KB
• spsc-20231231_g2.jpg (GRAPHIC) — 5KB
• spsc-20231231_g3.jpg (GRAPHIC) — 95KB
• spsc-20231231_g4.jpg (GRAPHIC) — 4KB
• 0001092699-24-000012.txt (&nbsp;) — 8911KB
• spsc-20231231.xsd (EX-101.SCH) — 65KB
• spsc-20231231_cal.xml (EX-101.CAL) — 104KB
• spsc-20231231_def.xml (EX-101.DEF) — 211KB
• spsc-20231231_lab.xml (EX-101.LAB) — 818KB
• spsc-20231231_pre.xml (EX-101.PRE) — 532KB
• spsc-20231231_htm.xml (XML) — 1257KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 23

C

Item 1 C . Cybersecurity 23 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 24 Item 4. Mine Safety Disclosures 24 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved] 26 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 35 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 61 Item 9A .

Controls and Procedures

Controls and Procedures 61 Item 9B. Other Information 62 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 62 PART III Item 10. Directors, Executive Officers and Corporate Governance 63 Item 11.

Executive Compensation

Executive Compensation 63 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 63 Item 13. Certain Relationships and Related Transactions, and Director Independence 63 Item 14. Principal Accounting Fees and Services 63 PART IV Item 15. Exhibits, Financial Statement Schedules 63 Item 16. Form 10-K Summary 65

SIGNATURES

SIGNATURES 66 Unless the context otherwise requires, for purposes of the Annual Report on Form 10-K, the words "we," "us," "our," the "Company," "SPS," and "SPS Commerce" refer to SPS Commerce, Inc. SPS COMMERCE, INC. 2 Form 10-K for the Annual Period ended December 31, 2023 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements regarding us, our business prospects and our results of operations are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. In some cases, you can identify forward-looking statements by the following words: "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Similarly, statements that describe our future plans, objectives or goals are also forward-looking. Forward-looking statements may also be made from time to time in oral presentations, including telephone conferences and/or webcasts open to the public. Shareholders, potential investors, and others are cautioned that all forward-looking statements involve risks and uncertainties that could cause results in future periods to differ materially from those anticipated by some of the statements made in this report, including the risks and uncertainties described in Part I, Item IA, "Risk Factors" of this Annual Report on Form 10-

Business

Item 1. Business Overview SPS Commerce is a leading provider of cloud-based supply chain management services across our global retail network. Our products make it easier for retailers, grocers, distributors, suppliers, and logistics firms to communicate and collaborate by simplifying how they manage and share item, inventory, order and sales data across omnichannel retail channels. We deliver our products using a full-service model, which includes industry-leading technology and a team of experts that optimize, update, and operate the technology on customers' behalf. Our products enable customers to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. As of December 31, 2023, we had approximately 44,800 customers with ongoing contracts to pay us monthly fees, which we refer to as recurring revenue customers. In addition to our recurring revenue customers, to date we have provided our cloud-based supply chain management services to approximately 75,200 other organizations, and we refer to the combination as our customers. Once connected to the SPS Commerce cloud-based retail network, our customers often require additional integrations to new organizations that represent an expansion of our cloud-based network and new sources of revenues for us. For the years ended December 31, 2023, 2022, and 2021, we generated revenues of $536.9 million, $450.9 million, and $385.3 million, respectively. Our quarter ended December 31, 2023 represented our 92nd consecutive quarter of revenue growth. Recurring revenues from recurring revenue customers accounted for 94%, 93%, and 92% of our total revenues for the years ended December 31, 2023, 2022, and 2021, respectively. Our revenues are not concentrated with any customer, as our largest customer represented less than 1% of total revenues for the years ended December 31, 2023, 2022, a

View Full Filing

View this 10-K filing on SEC EDGAR