SPS Commerce (SPSC) 10-Q 26 Apr 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 19, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-34702
Entity Registrant Name	SPS COMMERCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-2015127
Entity Address, Address Line One	333 South Seventh Street
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55402
City Area Code	612
Local Phone Number	435-9400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	SPSC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		36,532,756
Entity Central Index Key	0001092699
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 182,304	$ 162,893
Short-term investments	51,146	51,412
Accounts receivable	46,654	42,501
Allowance for credit losses	(3,217)	(3,066)
Accounts receivable, net	43,437	39,435
Deferred costs	53,844	52,755
Other assets	15,651	16,319
Total current assets	346,382	322,814
Property and equipment, net	35,078	35,458
Operating lease right-of-use assets	8,451	9,170
Goodwill	199,001	197,284
Intangible assets, net	84,536	88,352
Other assets
Deferred costs, non-current	17,965	17,424
Deferred income tax assets	3,365	227
Other assets, non-current	2,149	2,185
Total assets	696,927	672,914
Current liabilities
Accounts payable	5,339	11,256
Accrued compensation	26,431	30,235
Accrued expenses	8,163	7,451
Deferred revenue	62,907	57,423
Operating lease liabilities	4,121	4,277
Total current liabilities	106,961	110,642
Other liabilities
Deferred revenue, non-current	5,105	4,771
Operating lease liabilities, non-current	11,994	13,009
Deferred income tax liabilities	6,977	7,419
Total liabilities	131,037	135,841
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	0	0
Common stock, $0.001 par value; 110,000,000 shares authorized; 38,683,854 and 38,309,144 shares issued; and 36,532,756 and 36,158,046 shares outstanding, respectively	39	38
Treasury Stock, at cost; 2,151,098 shares	(128,892)	(128,892)
Additional paid-in capital	489,716	476,117
Retained earnings	208,510	193,221
Accumulated other comprehensive loss	(3,483)	(3,411)
Total stockholders’ equity	565,890	537,073
Total liabilities and stockholders’ equity	$ 696,927	$ 672,914

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	110,000,000	110,000,000
Common stock, shares issued (in shares)	38,683,854	38,309,144
Common stock, shares outstanding (in shares)	36,532,756	36,158,046
Treasury stock, shares (in shares)	2,151,098	2,151,098

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 125,868	$ 105,193
Cost of revenues	42,964	35,389
Gross profit	82,904	69,804
Operating expenses
Sales and marketing	29,083	24,655
Research and development	12,563	10,701
General and administrative	20,677	15,468
Amortization of intangible assets	3,851	2,470
Total operating expenses	66,174	53,294
Income from operations	16,730	16,510
Other income, net	1,276	423
Income before income taxes	18,006	16,933
Income tax expense	2,717	4,330
Net income	15,289	12,603
Other comprehensive income (expense)
Foreign currency translation adjustments	(95)	730
Unrealized gain (loss) on investments, net of tax of $133 and ($1), respectively	399	(3)
Reclassification of (gain) loss on investments into earnings, net of tax of ($125) and $4, respectively	(376)	11
Total other comprehensive income (expense)	(72)	738
Comprehensive income	$ 15,217	$ 13,341
Net income per share
Basic (in dollars per share)	$ 0.42	$ 0.35
Diluted (in dollars per share)	$ 0.41	$ 0.34
Weighted average common shares used to compute net income per share
Basic (in shares)	36,427	36,136
Diluted (in shares)	37,155	36,989

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Unrealized gain (loss) on investments, tax	$ 133	$ (1)
Reclassification of (gain) loss on investments into earnings, tax	(125)	4
Foreign currency translation adjustments	(95)	730
Unrealized gain (loss) on investments, net of tax of $133 and ($1), respectively	399	(3)
Reclassification of (gain) loss on investments into earnings, net of tax	$ (376)	$ 11

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021		36,009,257
Beginning balance at Dec. 31, 2021	$ 484,259	$ 38	$ (85,677)	$ 433,258	$ 138,087	$ (1,447)
Beginning balance (in shares) at Dec. 31, 2021			1,789,353
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	8,496			8,496
Shares issued pursuant to stock awards (in shares)		231,107
Shares issued pursuant to stock awards	504			504
Employee stock purchase plan activity (in shares)		1,698
Employee stock purchase plan activity	$ 147			147
Repurchases of common stock (in shares)	(121,544)	(121,544)	(121,544)
Repurchases of common stock	$ (15,226)		$ (15,226)
Net income	12,603				12,603
Foreign currency translation adjustments	730					730
Unrealized gain (loss) on investments, net of tax	(3)					(3)
Reclassification of (gain) loss on investments into earnings, net of tax	11					11
Ending balance (in shares) at Mar. 31, 2022		36,120,518
Ending balance at Mar. 31, 2022	$ 491,521	$ 38	$ (100,903)	442,405	150,690	(709)
Ending balance (in shares) at Mar. 31, 2022			1,910,897
Beginning balance (in shares) at Dec. 31, 2022	36,158,046	36,158,046
Beginning balance at Dec. 31, 2022	$ 537,073	$ 38	$ (128,892)	476,117	193,221	(3,411)
Beginning balance (in shares) at Dec. 31, 2022	2,151,098		2,151,098
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 11,175			11,175
Shares issued pursuant to stock awards (in shares)		372,161
Shares issued pursuant to stock awards	2,184			2,183
Employee stock purchase plan activity	$ 241			241
Repurchases of common stock (in shares)	0
Repurchases of common stock	$ 0
Net income	15,289				15,289
Foreign currency translation adjustments	(95)					(95)
Unrealized gain (loss) on investments, net of tax	399					399
Reclassification of (gain) loss on investments into earnings, net of tax	$ (376)					(376)
Ending balance (in shares) at Mar. 31, 2023	36,532,756	36,532,756
Ending balance at Mar. 31, 2023	$ 565,890	$ 39	$ (128,892)	$ 489,716	$ 208,510	$ (3,483)
Ending balance (in shares) at Mar. 31, 2023	2,151,098		2,151,098

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Cash flows from operating activities
Net income	$ 15,289
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	(5,147)
Depreciation and amortization of property and equipment	4,626
Amortization of intangible assets	3,851
Provision for credit losses	1,206
Stock-based compensation	11,780
Other, net	502
Changes in assets and liabilities
Accounts receivable	(6,220)
Deferred costs	(1,679)
Other current and non-current assets	602
Accounts payable	(4,849)
Accrued compensation	(4,417)
Accrued expenses	721
Deferred revenue	5,818
Operating leases	(452)
Net cash provided by operating activities	21,631
Cash flows from investing activities
Purchases of property and equipment	(5,261)
Purchases of investments	(34,329)
Maturities of investments	35,000
Net cash provided by (used in) investing activities	(4,590)
Cash flows from financing activities
Repurchases of common stock	0
Net proceeds from exercise of options to purchase common stock	2,184
Net proceeds from employee stock purchase plan activity	241
Net cash provided by (used in) financing activities	2,425
Effect of foreign currency exchange rate changes	(55)
Net increase (decrease) in cash and cash equivalents	19,411
Cash and cash equivalents at beginning of period	162,893
Cash and cash equivalents at end of period	$ 182,304

General

General	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	General Business Description 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. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. This interim financial information has been prepared under the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (“SEC”). We have included all normal recurring adjustments considered necessary to provide a fair presentation of our financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. Use of Estimates Preparing financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant Accounting Policies There were no material changes in our significant accounting policies during the three months ended March 31, 2023. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 , as filed with the SEC, for additional information regarding our significant accounting policies. Accounting Pronouncements Recently Adopted Standard Date of Issuance Description Date of Adoption Effect on the Financial Statements ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers October 2021 This amendment requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, effective for all business combinations in the year of adoption and thereafter. January 2023 The adoption of this standard may have a material impact on the purchase accounting for future business combinations depending on the specific amount of contract assets and liabilities being acquired.

Business Acquisitions

Business Acquisitions	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Business Acquisitions GCommerce Effective July 19, 2022, we acquired all of the outstanding equity ownership interests of GCommerce, Inc. ("GCommerce"), a leading EDI provider within the automotive aftermarket industry. Pursuant to the definitive agreement, the purchase price was $45.1 million, including post-closing adjustments. The purchase accounting for the acquisition has not been finalized as of March 31, 2023 due primarily to provisional tax components and corresponding impacts to other items, including intangible assets. We expect to finalize the allocation of the purchase price within the one-year measurement period following the acquisition. During the quarter ended March 31, 2023, provisional amounts were adjusted by $1.6 million, primarily relating to a $1.5 million decrease in the estimated value of deferred income tax assets, with the corresponding offset to goodwill. InterTrade Effective October 4, 2022, we acquired all of the outstanding equity ownership interests of Canadian based InterTrade Systems Inc. ("InterTrade"), a leading EDI provider within the apparel and general merchandising markets. Pursuant to the definitive agreement, the purchase price was $49.1 million, including estimated post-closing adjustments. The purchase accounting for the acquisition has not been finalized as of March 31, 2023 due to various items including valuation modeling completion; provisional amounts are primarily related to intangible assets. We expect to finalize the allocation of the purchase price within the one-year measurement period following the acquisition. During the quarter ended March 31, 2023, there were no material changes to the provisional amounts.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue We derive our revenues from the following revenue streams: Three Months Ended (in thousands) 2023 2022 Recurring revenues: Fulfillment $ 101,668 $ 84,731 Analytics 12,370 11,296 Other 3,263 1,540 Recurring revenues 117,301 97,567 One-time revenues 8,567 7,626 Total revenue $ 125,868 $ 105,193 Revenues are the amount that reflects the consideration we are contractually and legally entitled to, as well as the amount we expect to collect, in exchange for those services. Recurring Revenues Recurring revenues consist of recurring subscriptions from customers that utilize our Fulfillment, Analytics, and Other supply chain management products. Revenue for these products is generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our contracts with our recurring revenue customers are recurring in nature, generally ranging from monthly to annual, and generally allow the customer to cancel the contract for any reason with 30 to 90 days’ notice. Timing of billings varies by customer and by contract type and generally are either in advance or within 30 days of the service being performed. Given that the recurring revenue contracts are for one year or less, we have applied the optional exemption to not disclose information about the remaining performance obligations for recurring revenue contracts. One-time Revenues One-time revenues consist of set-up fees and miscellaneous fees from customers. Set-up revenues Set-up fees are specific for each connection a customer has with a trading partner. These nonrefundable fees are necessary for our customers to utilize our services and do not provide any standalone value. Many of our customers have connections with numerous trading partners. Set-up fees constitute a material renewal option right that provide customers a significant future incentive that would not be otherwise available to that customer unless they entered into the contract, as the set-up fees will not be incurred again upon contract renewal. As such, set-up fees and related costs are deferred and recognized ratably over two years which is the estimated period for which a material right is present for our customers. The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees: Three Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 14,999 $ 14,459 Invoiced set-up fees 4,251 4,003 Recognized set-up fees (3,963) (3,524) Balance, end of period $ 15,287 $ 14,938 The entire balance of deferred set-up fees will be recognized within two years. Those that will be recognized within the next year are classified as current, whereas the remainder are classified as non-current. Miscellaneous one-time revenues Miscellaneous one-time fees consist of professional services and testing and certification. The contract period for these one-time fees is for one year or less and recognized at the time service is provided. We have applied the optional exemption to not disclose information about the remaining performance obligations for miscellaneous one-time fee contracts since they have original durations of one year or less.

Deferred Costs

Deferred Costs	3 Months Ended
	Mar. 31, 2023
Deferred Costs [Abstract]
Deferred Costs	Deferred Costs The deferred costs activity was as follows: Three Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 70,179 $ 59,720 Incurred deferred costs 18,234 17,781 Amortized deferred costs (16,604) (14,891) Balance, end of period $ 71,809 $ 62,610

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Cash Equivalents and Investments Cash equivalents and investments, as measured at fair value on a recurring basis, consisted of the following: March 31, 2023 December 31, 2022 Fair Value Level Amortized Cost Unrealized Gains (Losses), net Fair Value Amortized Cost Unrealized Gains (Losses), net Fair Value (in thousands) Cash equivalents: Money market funds Level 1 $ 94,284 $ — $ 94,284 $ 73,368 $ — $ 73,368 Investments: Certificates of deposit Level 1 6,687 — 6,687 6,813 — 6,813 Marketable securities: Commercial paper Level 2 34,228 353 34,581 44,224 375 44,599 U.S. treasury securities Level 2 9,827 51 9,878 — — — $ 145,026 $ 404 $ 145,430 $ 124,405 $ 375 $ 124,780

Allowance for Credit Losses

Allowance for Credit Losses	3 Months Ended
	Mar. 31, 2023
Allowance for Credit Loss [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses activity, included in accounts receivable, net, was as follows: Three Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 3,066 $ 4,249 Provision for credit losses 1,206 1,144 Write-offs, net of recoveries (1,055) (1,106) Balance, end of period $ 3,217 $ 4,287

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consisted of the following: (in thousands) March 31, December 31, 2022 Internally developed software $ 53,530 $ 49,994 Computer equipment 30,601 30,310 Leasehold improvements 16,603 16,531 Office equipment and furniture 11,113 10,981 Property and equipment, cost 111,847 107,816 Less: accumulated depreciation and amortization (76,769) (72,358) Total property and equipment, net $ 35,078 $ 35,458

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Goodwill The activity in goodwill was as follows: Three Months Ended (in thousands) 2023 Balance, beginning of period $ 197,284 Foreign currency translation (71) Remeasurement from provisional purchase accounting amount 1,788 Balance, end of period $ 199,001 Intangible Assets Intangible assets, net consisted of the following: March 31, 2023 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 79,385 $ (24,205) $ 29 $ 55,209 6.6 years Acquired technology 40,612 (11,292) 7 29,327 5.5 years $ 119,997 $ (35,497) $ 36 $ 84,536 6.2 years December 31, 2022 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 80,101 $ (22,255) $ (171) $ 57,675 6.8 years Acquired technology 40,610 (9,934) 1 30,677 5.7 years $ 120,711 $ (32,189) $ (170) $ 88,352 6.4 years The estimated future annual amortization expense related to intangible assets is as follows: (in thousands) Remainder of 2023 $ 11,450 2024 14,102 2025 13,964 2026 12,960 2027 12,497 Thereafter 19,563 Total future amortization $ 84,536

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The components of lease expense were as follows: Three Months Ended (in thousands) 2023 2022 Operating lease cost $ 798 $ 759 Variable lease cost 928 793 $ 1,726 $ 1,552 Supplemental cash flow information related to leases was as follows: Three Months Ended (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,247 $ 1,095 Supplemental balance sheet information related to operating leases was as follows: March 31, December 31, 2022 Weighted-average remaining lease term 3.8 years 3.9 years Weighted-average discount rate 4.0 % 4.0 % At March 31, 2023, our future minimum payments under operating leases were as follows: (in thousands) Remainder of 2023 $ 3,847 2024 4,471 2025 4,081 2026 3,763 2027 1,266 Total future gross payments $ 17,428 Less: imputed interest (1,313) Total operating lease liabilities $ 16,115 Purchase Commitments

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Share Repurchase Programs Our board of directors has authorized multiple non-concurrent programs to repurchase our common stock. Details of the programs and activity thereunder through March 31, 2023 were as follows: (in thousands) Effective Date Expiration Date Share Value Authorized for Repurchase Share Value Repurchased Unused & Expired Share Repurchase Value Share Value Available for Future Repurchase 2021 Program November 2021 August 2022 50,000 49,992 8 N/A 2022 Program August 2022 July 2024 50,000 2,992 N/A $ 47,008 The share repurchase activity by period was as follows: Three Months Ended (in thousands, except shares and per share amounts) 2023 2022 Number of shares repurchased — 121,544 Shares repurchased cost $ — $ 15,226 Average price per repurchased share $ — $ 125.27

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Our equity compensation plans provide for the grant of incentive and nonqualified stock options, as well as other stock-based awards including performance share units (“PSUs”), restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and deferred stock units (“DSUs”), to employees, non-employee directors and other consultants who provide services to us. We also provide an employee stock purchase plan (“ESPP”) and 401(k) match to eligible participants. We recognize stock-based compensation expense based on grant date award fair value. This cost is recognized over the period for which the employee is required to provide service in exchange for the award or the award performance period, except for expenses relating to retirement-eligible employees that have not given their required notice, which is recognized on a pro-rata basis over the notice period prior to retirement. At March 31, 2023 , there were 12.8 million shares available for grant under approved equity compensation plans. Stock-based compensation expense was allocated in the condensed consolidated statements of comprehensive income as follows: Three Months Ended (in thousands) 2023 2022 Cost of revenues $ 2,503 $ 2,179 Operating expenses Sales and marketing 2,423 2,032 Research and development 1,777 1,474 General and administrative 5,077 3,330 $ 11,780 $ 9,015 Stock-based compensation expense by grant type or plan was as follows: Three Months Ended (in thousands) 2023 2022 Stock options $ 490 $ 477 PSUs 3,926 2,699 RSUs 6,062 4,638 RSAs & DSUs 108 108 ESPP 589 574 401(k) stock match 605 519 $ 11,780 $ 9,015 As of March 31, 2023, there was $63.8 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a primarily straight-line basis over a weighted average period of 2.6 years. Stock Options Our stock option activity was as follows: Three Months Ended Options (#) Weighted Average Outstanding, beginning of period 562,697 $ 56.24 Granted 30,148 150.76 Exercised (68,088) 32.06 Forfeited (1,916) 123.49 Outstanding, end of period 522,841 $ 64.60 Of the total outstanding options at March 31, 2023, 0.4 million were exercisable. The outstanding and exercisable options had a weighted average exercise price of $53.22 per share and a weighted average remaining contractual life of 3.0 years. The weighted average grant date fair value of options granted during the three months ended March 31, 2023 was $54.53 per share. This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Life (in years) 3.9 Volatility 39.7 % Dividend yield — Risk-free interest rate 4.2 % Performance Share Units, Restricted Stock Units and Awards, and Deferred Stock Units In each of the quarters ended March 31, 2023, 2022, 2021, and 2020 we granted PSU awards with a target performance level. These awards are earned based upon our Company’s total shareholder return as compared to an indexed total shareholder return over the course of a fiscal based three-year performance period, starting in the year of grant. Earned awards vest in the quarter following the conclusion of the performance period. In the three months ended March 31, 2023 , PSU awards granted in 2019 vested at the maximum performance level and 0.1 million shares of common stock were issued. Activity for our PSUs, RSUs, RSAs, and DSUs in aggregate was as follows: Three Months Ended # Weighted Average Grant Outstanding, beginning of period 712,158 $ 103.93 Granted 304,635 163.06 Vested and common stock issued (305,123) 74.70 Forfeited (3,798) 112.93 Outstanding, end of period 707,872 $ 141.92 The number of PSUs, RSUs, RSAs, and DSUs outstanding at March 31, 2023 included less than 0.1 million units that have vested, but the shares of common stock have not yet been issued, pursuant to the terms of the underlying agreements. Employee Stock Purchase Plan Our ESPP activity was as follows: Three Months Ended (in thousands, except shares) 2023 2022 Amounts for shares purchased $ 241 $ 147 Shares purchased 2,549 1,698 A total of 1.7 million shares of common stock are reserved for issuance under the ESPP as of March 31, 2023. The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the following assumptions: Life (in years) 0.5 Volatility 46.4 % Dividend yield — Risk-free interest rate 2.5 %

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesWe record our interim provision for income taxes by applying our estimated annual effective tax rate to our year-to-date pre-tax income and adjust the provision for discrete tax items recorded in the period. Our provisions for income taxes includes current federal, state, and foreign income tax expense, as well as deferred tax expense.Differences between our effective tax rate and statutory tax rates are primarily due to the impact of permanently non-deductible expenses partially offset by the federal research and development credits and tax benefits associated with foreign-derived intangible income. Additionally, excess tax benefits generated upon settlement or exercise of stock awards are recognized as a reduction to income tax expense as a discrete tax item in the quarter that the event occurs, creating potentially significant fluctuation in tax expense by quarter and by year.

Other Income and Expense

Other Income and Expense	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Other Income and Expense	Other Income and Expense Other income, net included the following: Three Months Ended (in thousands) 2023 2022 Investment income $ 1,127 $ 48 Realized gain from foreign currency on cash and investments held 137 468 Other income (expense), net 12 (93) Total other income, net $ 1,276 $ 423

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The components and computation of basic and diluted net income per share were as follows: Three Months Ended (in thousands, except per share amounts) 2023 2022 Numerator Net income $ 15,289 $ 12,603 Denominator Weighted average common shares outstanding, basic 36,427 36,136 Options to purchase common stock 307 419 PSUs, RSUs, RSAs, and DSUs 421 434 Weighted average common shares outstanding, diluted 37,155 36,989 Net income per share Basic $ 0.42 $ 0.35 Diluted $ 0.41 $ 0.34 The number of outstanding potential common shares that were excluded from the calculation of diluted net income per share as they were anti-dilutive was as follows: Three Months Ended (in thousands) 2023 2022 Anti-dilutive shares 108 151

Geographic Information

Geographic Information	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Geographic Information	Geographic Information Revenue Domestic revenue, which we define as revenue that was attributable to customers based within the U.S., was as follows: Three Months Ended 2023 2022 Domestic revenue 84 % 84 % No single jurisdiction outside of the U.S. had revenues in excess of 10%. Property and Equipment Property and equipment, net located at subsidiary and office locations outside of the U.S. was as follows: March 31, December 31, 2022 International property and equipment 14 % 13 %

General (Policies)

General (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	Business Description 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.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. This interim financial information has been prepared under the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (“SEC”). We have included all normal recurring adjustments considered necessary to provide a fair presentation of our financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year.
Use of Estimates	Use of Estimates Preparing financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies There were no material changes in our significant accounting policies during the three months ended March 31, 2023. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 , as filed with the SEC, for additional information regarding our significant accounting policies.

General (Tables)

General (Tables)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounting Pronouncements Note Yet Adopted	Accounting Pronouncements Recently Adopted Standard Date of Issuance Description Date of Adoption Effect on the Financial Statements ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers October 2021 This amendment requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, effective for all business combinations in the year of adoption and thereafter. January 2023 The adoption of this standard may have a material impact on the purchase accounting for future business combinations depending on the specific amount of contract assets and liabilities being acquired.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Summary of Revenues by Revenue Stream	We derive our revenues from the following revenue streams: Three Months Ended (in thousands) 2023 2022 Recurring revenues: Fulfillment $ 101,668 $ 84,731 Analytics 12,370 11,296 Other 3,263 1,540 Recurring revenues 117,301 97,567 One-time revenues 8,567 7,626 Total revenue $ 125,868 $ 105,193
Summary of Deferred Revenue Liability Relating to Set-Up Fees	The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees: Three Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 14,999 $ 14,459 Invoiced set-up fees 4,251 4,003 Recognized set-up fees (3,963) (3,524) Balance, end of period $ 15,287 $ 14,938

Deferred Costs (Tables)

Deferred Costs (Tables)	3 Months Ended
	Mar. 31, 2023
Deferred Costs [Abstract]
Summary of Deferred Costs and Amortization of Deferred Costs	The deferred costs activity was as follows: Three Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 70,179 $ 59,720 Incurred deferred costs 18,234 17,781 Amortized deferred costs (16,604) (14,891) Balance, end of period $ 71,809 $ 62,610

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Cash Equivalents and Investments	Cash equivalents and investments, as measured at fair value on a recurring basis, consisted of the following: March 31, 2023 December 31, 2022 Fair Value Level Amortized Cost Unrealized Gains (Losses), net Fair Value Amortized Cost Unrealized Gains (Losses), net Fair Value (in thousands) Cash equivalents: Money market funds Level 1 $ 94,284 $ — $ 94,284 $ 73,368 $ — $ 73,368 Investments: Certificates of deposit Level 1 6,687 — 6,687 6,813 — 6,813 Marketable securities: Commercial paper Level 2 34,228 353 34,581 44,224 375 44,599 U.S. treasury securities Level 2 9,827 51 9,878 — — — $ 145,026 $ 404 $ 145,430 $ 124,405 $ 375 $ 124,780

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	3 Months Ended
	Mar. 31, 2023
Allowance for Credit Loss [Abstract]
Schedule of Allowance for Credit Losses Activity Included in Accounts Receivable Net	The allowance for credit losses activity, included in accounts receivable, net, was as follows: Three Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 3,066 $ 4,249 Provision for credit losses 1,206 1,144 Write-offs, net of recoveries (1,055) (1,106) Balance, end of period $ 3,217 $ 4,287

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment, net consisted of the following: (in thousands) March 31, December 31, 2022 Internally developed software $ 53,530 $ 49,994 Computer equipment 30,601 30,310 Leasehold improvements 16,603 16,531 Office equipment and furniture 11,113 10,981 Property and equipment, cost 111,847 107,816 Less: accumulated depreciation and amortization (76,769) (72,358) Total property and equipment, net $ 35,078 $ 35,458

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Net Carrying Amount of Goodwill	Goodwill The activity in goodwill was as follows: Three Months Ended (in thousands) 2023 Balance, beginning of period $ 197,284 Foreign currency translation (71) Remeasurement from provisional purchase accounting amount 1,788 Balance, end of period $ 199,001
Intangible Assets	Intangible Assets Intangible assets, net consisted of the following: March 31, 2023 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 79,385 $ (24,205) $ 29 $ 55,209 6.6 years Acquired technology 40,612 (11,292) 7 29,327 5.5 years $ 119,997 $ (35,497) $ 36 $ 84,536 6.2 years December 31, 2022 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 80,101 $ (22,255) $ (171) $ 57,675 6.8 years Acquired technology 40,610 (9,934) 1 30,677 5.7 years $ 120,711 $ (32,189) $ (170) $ 88,352 6.4 years
Estimated Future Annual Amortization Expense Related to Intangible Assets Subject to Amortization	The estimated future annual amortization expense related to intangible assets is as follows: (in thousands) Remainder of 2023 $ 11,450 2024 14,102 2025 13,964 2026 12,960 2027 12,497 Thereafter 19,563 Total future amortization $ 84,536

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Components of Lease Expense	The components of lease expense were as follows: Three Months Ended (in thousands) 2023 2022 Operating lease cost $ 798 $ 759 Variable lease cost 928 793 $ 1,726 $ 1,552
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Three Months Ended (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,247 $ 1,095
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to operating leases was as follows: March 31, December 31, 2022 Weighted-average remaining lease term 3.8 years 3.9 years Weighted-average discount rate 4.0 % 4.0 %
Schedule of Future Minimum Payments Under Operating Leases	At March 31, 2023, our future minimum payments under operating leases were as follows: (in thousands) Remainder of 2023 $ 3,847 2024 4,471 2025 4,081 2026 3,763 2027 1,266 Total future gross payments $ 17,428 Less: imputed interest (1,313) Total operating lease liabilities $ 16,115

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stock Repurchase Activity	Our board of directors has authorized multiple non-concurrent programs to repurchase our common stock. Details of the programs and activity thereunder through March 31, 2023 were as follows: (in thousands) Effective Date Expiration Date Share Value Authorized for Repurchase Share Value Repurchased Unused & Expired Share Repurchase Value Share Value Available for Future Repurchase 2021 Program November 2021 August 2022 50,000 49,992 8 N/A 2022 Program August 2022 July 2024 50,000 2,992 N/A $ 47,008 The share repurchase activity by period was as follows: Three Months Ended (in thousands, except shares and per share amounts) 2023 2022 Number of shares repurchased — 121,544 Shares repurchased cost $ — $ 15,226 Average price per repurchased share $ — $ 125.27

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation Expense	Stock-based compensation expense was allocated in the condensed consolidated statements of comprehensive income as follows: Three Months Ended (in thousands) 2023 2022 Cost of revenues $ 2,503 $ 2,179 Operating expenses Sales and marketing 2,423 2,032 Research and development 1,777 1,474 General and administrative 5,077 3,330 $ 11,780 $ 9,015 Stock-based compensation expense by grant type or plan was as follows: Three Months Ended (in thousands) 2023 2022 Stock options $ 490 $ 477 PSUs 3,926 2,699 RSUs 6,062 4,638 RSAs & DSUs 108 108 ESPP 589 574 401(k) stock match 605 519 $ 11,780 $ 9,015
Stock Option Activity	Our stock option activity was as follows: Three Months Ended Options (#) Weighted Average Outstanding, beginning of period 562,697 $ 56.24 Granted 30,148 150.76 Exercised (68,088) 32.06 Forfeited (1,916) 123.49 Outstanding, end of period 522,841 $ 64.60
Weighted Average Grant Date Fair Value of Options Granted, Assumptions	The weighted average grant date fair value of options granted during the three months ended March 31, 2023 was $54.53 per share. This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Life (in years) 3.9 Volatility 39.7 % Dividend yield — Risk-free interest rate 4.2 %
PSU, RSU, RSA, and DSU	Activity for our PSUs, RSUs, RSAs, and DSUs in aggregate was as follows: Three Months Ended # Weighted Average Grant Outstanding, beginning of period 712,158 $ 103.93 Granted 304,635 163.06 Vested and common stock issued (305,123) 74.70 Forfeited (3,798) 112.93 Outstanding, end of period 707,872 $ 141.92
Summary of ESPP Activity	Our ESPP activity was as follows: Three Months Ended (in thousands, except shares) 2023 2022 Amounts for shares purchased $ 241 $ 147 Shares purchased 2,549 1,698
Fair Value Estimation of Common Stock Using Black-Scholes Option Pricing Model, Assumptions	The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the following assumptions: Life (in years) 0.5 Volatility 46.4 % Dividend yield — Risk-free interest rate 2.5 %

Other Income and Expense (Table

Other Income and Expense (Tables)	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Summary of Other Income (Expense), Net	Other income, net included the following: Three Months Ended (in thousands) 2023 2022 Investment income $ 1,127 $ 48 Realized gain from foreign currency on cash and investments held 137 468 Other income (expense), net 12 (93) Total other income, net $ 1,276 $ 423

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Components and Computation of Basic and Diluted Net Income Per Share	The components and computation of basic and diluted net income per share were as follows: Three Months Ended (in thousands, except per share amounts) 2023 2022 Numerator Net income $ 15,289 $ 12,603 Denominator Weighted average common shares outstanding, basic 36,427 36,136 Options to purchase common stock 307 419 PSUs, RSUs, RSAs, and DSUs 421 434 Weighted average common shares outstanding, diluted 37,155 36,989 Net income per share Basic $ 0.42 $ 0.35 Diluted $ 0.41 $ 0.34
Schedule of Anti-dilutive Common Shares Excluded from Calculation of Diluted Net Income Per Share	The number of outstanding potential common shares that were excluded from the calculation of diluted net income per share as they were anti-dilutive was as follows: Three Months Ended (in thousands) 2023 2022 Anti-dilutive shares 108 151

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Summary of Domestic Revenue	Domestic revenue, which we define as revenue that was attributable to customers based within the U.S., was as follows: Three Months Ended 2023 2022 Domestic revenue 84 % 84 %
Schedule Of Percentage Of Property And Equipment Net	Property and equipment, net located at subsidiary and office locations outside of the U.S. was as follows: March 31, December 31, 2022 International property and equipment 14 % 13 %

Business Acquisitions - Narrati

Business Acquisitions - Narrative (Details) - USD ($) $ in Millions			3 Months Ended
	Oct. 04, 2022	Jul. 19, 2022	Mar. 31, 2023
GCommerce Inc
Business Acquisition [Line Items]
Purchase price		$ 45.1
Measurement period		1 year
Decrease in purchase price due to measurement period adjustment			$ 1.6
Decrease in estimated value of deferred income tax assets			$ 1.5
InterTrade Systems Inc.
Business Acquisition [Line Items]
Purchase price	$ 49.1
Measurement period	1 year

Revenue - Summary of Revenues b

Revenue - Summary of Revenues by Revenue Stream (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition [Line Items]
Revenues	$ 125,868	$ 105,193
Recurring revenues
Revenue Recognition [Line Items]
Revenues	117,301	97,567
One-time revenues
Revenue Recognition [Line Items]
Revenues	8,567	7,626
Fulfillment | Recurring revenues
Revenue Recognition [Line Items]
Revenues	101,668	84,731
Analytics | Recurring revenues
Revenue Recognition [Line Items]
Revenues	12,370	11,296
Other | Recurring revenues
Revenue Recognition [Line Items]
Revenues	$ 3,263	$ 1,540

Revenue - Narrative (Detail)

Revenue - Narrative (Detail)	3 Months Ended
	Mar. 31, 2023
Disaggregation Of Revenue [Line Items]
Latest timing of billings	30 days
Contract term maximum	1 year
Set up fees recognized period	2 years
Maximum recognition period for miscellaneous one-time fee	1 year
Minimum
Disaggregation Of Revenue [Line Items]
Customer contract cancellation period	30 days
Maximum
Disaggregation Of Revenue [Line Items]
Customer contract cancellation period	90 days

Revenue - Summary of Deferred R

Revenue - Summary of Deferred Revenue Liability Relating to Set-Up Fees (Detail) - Set-Up Fees - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Deferred Revenue Arrangement [Roll Forward]
Balance, beginning of period	$ 14,999	$ 14,459
Invoiced set-up fees	4,251	4,003
Recognized set-up fees	(3,963)	(3,524)
Balance, end of period	$ 15,287	$ 14,938

Deferred Costs (Detail)

Deferred Costs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Deferred Costs [Roll Forward]
Balance, beginning of period	$ 70,179	$ 59,720
Incurred deferred costs	18,234	17,781
Amortized deferred costs	(16,604)	(14,891)
Balance, end of period	$ 71,809	$ 62,610

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Financial Instruments [Line Items]
Amortized Cost	$ 145,026	$ 124,405
Unrealized Gains (Losses), net	404	375
Fair Value	145,430	124,780
Investments:
Schedule of Financial Instruments [Line Items]
Amortized Cost	6,687	6,813
Unrealized Gains (Losses), net	0	0
Fair Value	6,687	6,813
Cash Equivalents | Money market funds
Schedule of Financial Instruments [Line Items]
Amortized Cost	94,284	73,368
Unrealized Gains (Losses), net	0	0
Fair Value	94,284	73,368
Marketable Securities | Commercial paper
Schedule of Financial Instruments [Line Items]
Amortized Cost	34,228	44,224
Unrealized Gains (Losses), net	353	375
Fair Value	34,581	44,599
Marketable Securities | U.S. treasury securities
Schedule of Financial Instruments [Line Items]
Amortized Cost	9,827	0
Unrealized Gains (Losses), net	51	0
Fair Value	$ 9,878	$ 0

Allowance for Credit Losses (De

Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 3,066	$ 4,249
Provision for credit losses	1,206	1,144
Write-offs, net of recoveries	(1,055)	(1,106)
Balance, end of period	$ 3,217	$ 4,287

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 111,847	$ 107,816
Less: accumulated depreciation and amortization	(76,769)	(72,358)
Property and equipment, net	35,078	35,458
Internally developed software
Property, Plant and Equipment [Line Items]
Property and equipment, cost	53,530	49,994
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, cost	30,601	30,310
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, cost	16,603	16,531
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 11,113	$ 10,981

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Schedule of Changes in Net Carrying Amount of Goodwill (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Balance, beginning of period	$ 197,284
Foreign currency translation	(71)
Remeasurement from provisional purchase accounting amount	1,788
Balance, end of period	$ 199,001

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 119,997	$ 120,711
Accumulated Amortization	(35,497)	(32,189)
Foreign Currency Translation	36	(170)
Net	$ 84,536	$ 88,352
Weighted Average Remaining Amortization Period	6 years 2 months 12 days	6 years 4 months 24 days
Subscriber relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 79,385	$ 80,101
Accumulated Amortization	(24,205)	(22,255)
Foreign Currency Translation	29	(171)
Net	$ 55,209	$ 57,675
Weighted Average Remaining Amortization Period	6 years 7 months 6 days	6 years 9 months 18 days
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 40,612	$ 40,610
Accumulated Amortization	(11,292)	(9,934)
Foreign Currency Translation	7	1
Net	$ 29,327	$ 30,677
Weighted Average Remaining Amortization Period	5 years 6 months	5 years 8 months 12 days

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 11,450
2024	14,102
2025	13,964
2026	12,960
2027	12,497
Thereafter	19,563
Net	$ 84,536	$ 88,352

Commitments and Contingencies -

Commitments and Contingencies - Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 798	$ 759
Variable lease cost	928	793
Lease expense	$ 1,726	$ 1,552

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 1,247	$ 1,095

Commitments and Contingencies_3

Commitments and Contingencies - Schedule of Supplemental Balance Sheet Information Related to Leases (Detail)	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term	3 years 9 months 18 days	3 years 10 months 24 days
Weighted-average discount rate	4%	4%

Commitments and Contingencies_4

Commitments and Contingencies - Schedule of Future Minimum Payments Under Operating Leases (Detail) $ in Thousands	Mar. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2023	$ 3,847
2024	4,471
2025	4,081
2026	3,763
2027	1,266
Total future gross payments	17,428
Less: imputed interest	(1,313)
Total operating lease liabilities	$ 16,115

Commitments and Contingencies_5

Commitments and Contingencies - Narrative (Detail) $ in Millions	Mar. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining purchase commitment	$ 4.3

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Schedule Of Stockholders Equity [Line Items]
Share Value Repurchased	$ 128,892	$ 128,892
Common Stock | 2021 Share Repurchase Program
Schedule Of Stockholders Equity [Line Items]
Share Value Authorized for Repurchase	50,000
Share Value Repurchased	49,992
Unused & Expired Share Repurchase Value	8
Common Stock | 2022 Stock Repurchase Program
Schedule Of Stockholders Equity [Line Items]
Share Value Authorized for Repurchase	50,000
Share Value Repurchased	2,992
Share Value Available for Future Repurchase	$ 47,008

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Equity [Abstract]
Number of shares repurchased (in shares)	0	121,544
Shares repurchased cost	$ 0	$ 15,226
Average price per repurchased share (in dollars per share)	$ 0	$ 125.27

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)	12,800,000
Unrecognized stock-based compensation expense	$ 63.8
Unrecognized stock-based compensation, expected to be recognized, weighted average period	2 years 7 months 6 days
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)	1,700,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding and exercisable options (in shares)	400,000
Weighted average exercise price (in dollars per share)	$ 53.22
Weighted average remaining contractual life	3 years
Weighted average fair value per share of options granted (in dollars per share)	$ 54.53
Performance Share Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years	3 years	3 years	3 years
Performance Share Unit | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		100,000
PSU, RSU, RSA, and DSU | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested at period end (in shares)	100,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 11,780	$ 9,015
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	490	477
PSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	3,926	2,699
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	6,062	4,638
RSAs & DSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	108	108
ESPP
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	589	574
401(k) stock match
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	605	519
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,503	2,179
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,423	2,032
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	1,777	1,474
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 5,077	$ 3,330

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Option Activity (Detail)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning of period (in shares) | shares	562,697
Granted (in shares) | shares	30,148
Exercised (in shares) | shares	(68,088)
Forfeited (in shares) | shares	(1,916)
Outstanding, end of period (in shares) | shares	522,841
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 56.24
Granted (in dollars per share) | $ / shares	150.76
Exercised (in dollars per share) | $ / shares	32.06
Forfeited (in dollars per share) | $ / shares	123.49
Outstanding, end of period (in dollars per share) | $ / shares	$ 64.60

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted, Assumptions (Detail) - Stock options	3 Months Ended
	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Life (in years)	3 years 10 months 24 days
Volatility	39.70%
Dividend yield	0%
Risk-free interest rate	4.20%

Stock-Based Compensation - PSU,

Stock-Based Compensation - PSU, RSU, RSA, and DSU (Detail) - PSU, RSU, RSA, and DSU	3 Months Ended
	Mar. 31, 2023 $ / shares shares
#
Outstanding, beginning of period (in shares) | shares	712,158
Granted (in shares) | shares	304,635
Vested and common stock issued (in shares) | shares	(305,123)
Forfeited (in shares) | shares	(3,798)
Outstanding, end of period (in shares) | shares	707,872
Weighted Average Grant Date Fair Value ($/share)
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 103.93
Granted (in dollars per share) | $ / shares	163.06
Vested and common stock issued (in dollars per share) | $ / shares	74.70
Forfeited (in dollars per share) | $ / shares	112.93
Outstanding, end of period (in dollars per share) | $ / shares	$ 141.92

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of ESPP Activity (Detail) - Employee Stock Purchase Plan - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Value Purchased For Award	$ 241	$ 147
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Purchased for Award	2,549	1,698
Common stock reserved for future issuance (in shares)	1,700,000

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Estimation of Common Stock Using Black-Scholes Option Pricing Model, Assumptions (Detail) - Employee Stock Purchase Plan	3 Months Ended
	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Life (in years)	6 months
Volatility	46.40%
Dividend yield	0%
Risk-free interest rate	2.50%

Other Income and Expense (Detai

Other Income and Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
Investment income	$ 1,127	$ 48
Realized gain from foreign currency on cash and investments held	137	468
Other income (expense), net	12	(93)
Total other income, net	$ 1,276	$ 423

Net Income Per Share - Componen

Net Income Per Share - Components and Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator
Net income	$ 15,289	$ 12,603
Denominator
Weighted average common shares outstanding, basic (in shares)	36,427	36,136
Options to purchase common stock (in shares)	307	419
PSUs, RSUs, RSAs, and DSUs (in shares)	421	434
Weighted average common shares outstanding, diluted (in shares)	37,155	36,989
Net income per share
Basic (in dollars per share)	$ 0.42	$ 0.35
Diluted (in dollars per share)	$ 0.41	$ 0.34

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Anti-dilutive Common Shares Excluded from Calculation of Diluted Net Income Per Share (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Antidilutive shares (in shares)	108	151

Geographic Information - Summar

Geographic Information - Summary of Domestic Revenue (Detail) - Revenue Benchmark - Geographic Concentration Risk	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Domestic Revenue
Disaggregation Of Revenue [Line Items]
Concentration risk, percentage	84%	84%
Foreign
Disaggregation Of Revenue [Line Items]
Concentration risk, percentage	14%		13%