SPS Commerce (SPSC) 10-Q 26 Oct 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 19, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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		36,697,608
Entity Central Index Key	0001092699
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 178,702	$ 162,893
Short-term investments	60,628	51,412
Accounts receivable	48,218	42,501
Allowance for credit losses	(3,077)	(3,066)
Accounts receivable, net	45,141	39,435
Deferred costs	59,525	52,755
Other assets	15,743	16,319
Total current assets	359,739	322,814
Property and equipment, net	36,209	35,458
Operating lease right-of-use assets	8,315	9,170
Goodwill	252,045	197,284
Intangible assets, net	103,597	88,352
Other assets
Deferred costs, non-current	19,521	17,424
Deferred income tax assets	6,805	227
Other assets, non-current	1,177	2,185
Total assets	787,408	672,914
Current liabilities
Accounts payable	6,195	11,256
Accrued compensation	41,474	30,235
Accrued expenses	8,900	7,451
Deferred revenue	71,853	57,423
Operating lease liabilities	4,449	4,277
Total current liabilities	132,871	110,642
Other liabilities
Deferred revenue, non-current	6,849	4,771
Operating lease liabilities, non-current	10,563	13,009
Deferred income tax liabilities	10,281	7,419
Total liabilities	160,564	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; 38,847,028 and 38,309,144 shares issued; and 36,695,930 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	520,313	476,117
Retained earnings	240,034	193,221
Accumulated other comprehensive loss	(4,650)	(3,411)
Total stockholders’ equity	626,844	537,073
Total liabilities and stockholders’ equity	$ 787,408	$ 672,914

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 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)	38,847,028	38,309,144
Common stock, shares outstanding (in shares)	36,695,930	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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenues	$ 135,661	$ 114,486	$ 391,945	$ 328,857
Cost of revenues	45,521	38,605	133,029	111,524
Gross profit	90,140	75,881	258,916	217,333
Operating expenses
Sales and marketing	30,289	25,334	89,722	74,571
Research and development	13,558	11,135	39,438	33,268
General and administrative	21,906	16,724	64,275	49,390
Amortization of intangible assets	3,788	2,998	11,118	7,936
Total operating expenses	69,541	56,191	204,553	165,165
Income from operations	20,599	19,690	54,363	52,168
Other income (expense), net	1,702	(695)	4,859	(1,610)
Income before income taxes	22,301	18,995	59,222	50,558
Income tax expense	5,459	3,132	12,409	11,339
Net income	16,842	15,863	46,813	39,219
Other comprehensive income (expense)
Foreign currency translation adjustments	(2,966)	(2,296)	(1,446)	(3,309)
Unrealized gain on investments, net of tax of $190, $53, $459 and $49, respectively	570	158	1,376	147
Reclassification of gain on investments into earnings, net of tax of $(137), $(13), $(390), and $(17), respectively	(412)	(39)	(1,169)	(51)
Total other comprehensive expense	(2,808)	(2,177)	(1,239)	(3,213)
Comprehensive income	$ 14,034	$ 13,686	$ 45,574	$ 36,006
Net income per share
Basic (in dollars per share)	$ 0.46	$ 0.44	$ 1.28	$ 1.09
Diluted (in dollars per share)	$ 0.45	$ 0.43	$ 1.25	$ 1.06
Weighted average common shares used to compute net income per share
Basic (in shares)	36,728	36,093	36,584	36,104
Diluted (in shares)	37,584	36,915	37,417	36,942

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Unrealized gain (loss) on investments, tax	$ 190	$ 53	$ 459	$ 49
Reclassification of (gain) loss on investments into earnings, tax	$ (137)	$ (13)	$ (390)	$ (17)

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	24,053			24,053
Shares issued pursuant to stock awards (in shares)		348,621
Shares issued pursuant to stock awards	2,457			2,457
Employee stock purchase plan activity (in shares)		37,516
Employee stock purchase plan activity	$ 3,588			3,588
Repurchases of common stock (in shares)	(357,430)	(357,430)	(357,430)
Repurchases of common stock	$ (42,700)		$ (42,700)
Net income	39,219				39,219
Foreign currency translation adjustments	(3,309)					(3,309)
Unrealized gain on investments, net of tax	147					147
Reclassification of gain on investments into earnings, net of tax	(51)					(51)
Ending balance (in shares) at Sep. 30, 2022		36,037,964
Ending balance at Sep. 30, 2022	507,663	$ 38	$ (128,377)	463,356	177,306	(4,660)
Ending balance (in shares) at Sep. 30, 2022			2,146,783
Beginning balance (in shares) at Jun. 30, 2022		36,029,477
Beginning balance at Jun. 30, 2022	497,020	$ 38	$ (115,900)	453,922	161,443	(2,483)
Beginning balance (in shares) at Jun. 30, 2022			2,044,549
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	7,429			7,429
Shares issued pursuant to stock awards (in shares)		108,240
Shares issued pursuant to stock awards	1,767			1,767
Employee stock purchase plan activity (in shares)		2,481
Employee stock purchase plan activity	$ 238			238
Repurchases of common stock (in shares)	(102,234)	(102,234)	(102,234)
Repurchases of common stock	$ (12,477)		$ (12,477)
Net income	15,863				15,863
Foreign currency translation adjustments	(2,296)					(2,296)
Unrealized gain on investments, net of tax	158					158
Reclassification of gain on investments into earnings, net of tax	(39)					(39)
Ending balance (in shares) at Sep. 30, 2022		36,037,964
Ending balance at Sep. 30, 2022	$ 507,663	$ 38	$ (128,377)	463,356	177,306	(4,660)
Ending balance (in shares) at Sep. 30, 2022			2,146,783
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	$ 34,192			34,192
Shares issued pursuant to stock awards (in shares)		496,500
Shares issued pursuant to stock awards	5,524	$ 1		5,523
Employee stock purchase plan activity	$ 4,481			4,481
Repurchases of common stock (in shares)	0
Repurchases of common stock	$ 0
Net income	46,813				46,813
Foreign currency translation adjustments	(1,446)					(1,446)
Unrealized gain on investments, net of tax	1,376					1,376
Reclassification of gain on investments into earnings, net of tax	$ (1,169)					(1,169)
Ending balance (in shares) at Sep. 30, 2023	36,695,930	36,695,930
Ending balance at Sep. 30, 2023	$ 626,844	$ 39	$ (128,892)	520,313	240,034	(4,650)
Ending balance (in shares) at Sep. 30, 2023	2,151,098		2,151,098
Beginning balance (in shares) at Jun. 30, 2023		36,646,819
Beginning balance at Jun. 30, 2023	$ 600,981	$ 39	$ (128,892)	508,484	223,192	(1,842)
Beginning balance (in shares) at Jun. 30, 2023			2,151,098
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	10,780			10,780
Shares issued pursuant to stock awards (in shares)		45,952
Shares issued pursuant to stock awards	705			705
Employee stock purchase plan activity (in shares)		3,159
Employee stock purchase plan activity	$ 344			344
Repurchases of common stock (in shares)	0
Repurchases of common stock	$ 0
Net income	16,842				16,842
Foreign currency translation adjustments	(2,966)					(2,966)
Unrealized gain on investments, net of tax	570					570
Reclassification of gain on investments into earnings, net of tax	$ (412)					(412)
Ending balance (in shares) at Sep. 30, 2023	36,695,930	36,695,930
Ending balance at Sep. 30, 2023	$ 626,844	$ 39	$ (128,892)	$ 520,313	$ 240,034	$ (4,650)
Ending balance (in shares) at Sep. 30, 2023	2,151,098		2,151,098

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net income	$ 46,813	$ 39,219
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	(11,906)	(2,092)
Depreciation and amortization of property and equipment	13,964	11,983
Amortization of intangible assets	11,118	7,936
Provision for credit losses	4,004	2,889
Stock-based compensation	36,097	25,636
Other, net	1,711	43
Changes in assets and liabilities
Accounts receivable	(8,800)	(3,999)
Deferred costs	(7,543)	(7,174)
Other current and non-current assets	2,814	2,202
Accounts payable	(5,289)	129
Accrued compensation	8,073	(4,388)
Accrued expenses	(169)	(3,035)
Deferred revenue	10,042	8,261
Operating leases	(1,417)	(1,127)
Net cash provided by operating activities	99,512	76,483
Cash flows from investing activities
Purchases of property and equipment	(15,467)	(13,894)
Purchases of investments	(102,763)	(134,276)
Maturities of investments	95,000	132,500
Acquisition of business, net	(70,218)	(44,923)
Net cash used in investing activities	(93,448)	(60,593)
Cash flows from financing activities
Repurchases of common stock	0	(42,700)
Net proceeds from exercise of options to purchase common stock	5,524	2,457
Net proceeds from employee stock purchase plan activity	4,481	3,588
Net cash provided by (used in) financing activities	10,005	(36,655)
Effect of foreign currency exchange rate changes	(260)	(557)
Net increase (decrease) in cash and cash equivalents	15,809	(21,322)
Cash and cash equivalents at beginning of period	162,893	207,552
Cash and cash equivalents at end of period	$ 178,702	$ 186,230

General

General	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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 has not had a material impact on the purchase accounting for business combinations.

Business Acquisitions

Business Acquisitions	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Business Acquisitions 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. During the quarter ended June 30, 2023, provisional amounts were adjusted by $3.1 million, primarily relating to a $3.9 million decrease in estimated value of intangible assets and the corresponding $1.0 million change to the deferred tax position, with the offsets to goodwill. During the quarter ended September 30, 2023, there were no significant adjustments made to provisional amounts. The purchase accounting has been finalized as of September 30, 2023. TIE Kinetix Effective September 13, 2023, we acquired all of the outstanding equity ownership interests of TIE Kinetix Holding B.V. ("TIE Kinetix"), a leading provider of supply chain digitalization including EDI and e-invoicing in Europe. Pursuant to the definitive agreement, the purchase price was €63.9 million ($68.7 million at the September 13, 2023 exchange rate), net of cash acquired. The purchase accounting for the acquisition has not been finalized as of September 30, 2023; provisional amounts are primarily related to intangible assets and tax components. We expect to finalize the allocation of the purchase price within the one-year measurement period following the acquisition. Purchase Price Allocations We accounted for the acquisitions as business combinations. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition dates: InterTrade TIE Kinetix (in thousands) Acquisition Date Estimated Fair Value as of Adjustment Acquisition Date Estimated Fair Value as of Acquisition Date Estimated Fair Value as of Cash paid at transaction date $ 47,165 $ — $ 47,165 $ 73,558 Contingent consideration 2,000 — 2,000 Post-closing adjustments (93) 116 23 Total consideration $ 49,072 $ 116 $ 49,188 $ 73,558 Estimated fair value of assets and liabilities acquired: Cash $ 668 $ — $ 668 $ 4,859 Accounts receivable 1,302 (94) 1,208 1,347 Other assets 1,903 — 1,903 2,981 Intangible assets Subscriber relationships 17,640 (3,960) 13,680 18,183 Developed technology 4,410 (501) 3,909 12,122 Current liabilities (2,337) (35) (2,372) (3,606) Deferred revenue (397) 202 (195) (6,421) Deferred income tax liabilities, net (6,127) 1,030 (5,097) (6,112) Total fair value of assets and liabilities acquired $ 17,062 $ (3,358) $ 13,704 $ 23,354 Goodwill $ 32,010 $ 3,475 $ 35,485 $ 50,205 The following table summarizes the estimated useful lives for each acquired intangible asset: Estimated Useful Life InterTrade TIE Kinetix Subscriber relationships 8.0 years 8.0 years Developed technology 6.0 years 6.0 years Other Acquisition Activity During the third quarter of 2023, the Company had other acquisition activity resulting in a total purchase price of $1.5 million, paid in cash. Assets acquired were primarily comprised of developed technology and customer relationships, totaling $0.9 million of estimated fair value. The remainder of the consideration transferred, $0.6 million, was allocated to goodwill.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue We derive our revenues from the following revenue streams: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Recurring revenues: Fulfillment $ 110,900 $ 92,952 $ 318,069 $ 265,570 Analytics 13,098 11,902 38,177 34,846 Other 3,373 1,699 9,949 4,867 Recurring revenues 127,371 106,553 366,195 305,283 One-time revenues 8,290 7,933 25,750 23,574 Total revenue $ 135,661 $ 114,486 $ 391,945 $ 328,857 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 Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 16,978 $ 15,309 $ 14,999 $ 14,459 Invoiced set-up fees 4,496 3,715 14,493 11,776 Recognized set-up fees (4,225) (3,805) (12,243) (11,016) Balance, end of period $ 17,249 $ 15,219 $ 17,249 $ 15,219 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	9 Months Ended
	Sep. 30, 2023
Deferred Costs [Abstract]
Deferred Costs	Deferred Costs The deferred costs activity was as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 75,255 $ 64,665 $ 70,179 $ 59,720 Incurred deferred costs 20,094 17,442 57,632 52,860 Amortized deferred costs (16,303) (15,551) (48,765) (46,024) Balance, end of period $ 79,046 $ 66,556 $ 79,046 $ 66,556

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 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: September 30, 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 $ 120,100 $ — $ 120,100 $ 73,368 $ — $ 73,368 Investments: Certificates of deposit Level 1 6,431 — 6,431 6,813 — 6,813 Marketable securities: Commercial paper Level 2 53,546 651 54,197 44,224 375 44,599 $ 180,077 $ 651 $ 180,728 $ 124,405 $ 375 $ 124,780

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
	Sep. 30, 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: Nine Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 3,066 $ 4,249 Provision for credit losses 4,004 2,889 Write-offs, net of recoveries (3,993) (3,480) Balance, end of period $ 3,077 $ 3,658

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consisted of the following: (in thousands) September 30, December 31, 2022 Internally developed software $ 57,933 $ 49,994 Computer equipment 34,048 30,310 Leasehold improvements 15,361 16,531 Office equipment and furniture 10,993 10,981 Property and equipment, cost 118,335 107,816 Less: accumulated depreciation and amortization (82,126) (72,358) Total property and equipment, net $ 36,209 $ 35,458

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	9 Months Ended
	Sep. 30, 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: Nine Months Ended (in thousands) 2023 Balance, beginning of period $ 197,284 Foreign currency translation (1,162) Addition from business acquisition(s) 50,842 Remeasurement from provisional purchase accounting amount 5,081 Balance, end of period $ 252,045 Intangible Assets Intangible assets, net consisted of the following: September 30, 2023 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 97,734 $ (28,771) $ (4,173) $ 64,790 6.7 years Acquired technology 53,505 (13,995) (703) 38,807 5.3 years $ 151,239 $ (42,766) $ (4,876) $ 103,597 6.1 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 $ 4,718 2024 17,899 2025 17,761 2026 16,757 2027 16,294 Thereafter 30,168 Total future amortization $ 103,597

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The components of lease expense were as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Operating lease cost $ 729 $ 788 $ 2,306 $ 2,287 Variable lease cost 909 963 2,787 2,612 $ 1,638 $ 1,751 $ 5,093 $ 4,899 Supplemental cash flow information related to leases was as follows: Nine Months Ended (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,835 $ 3,399 Right-of-use assets obtained in exchange for operating lease liabilities 1,072 934 Supplemental balance sheet information related to operating leases was as follows: September 30, December 31, 2022 Weighted-average remaining lease term 3.3 years 3.9 years Weighted-average discount rate 3.7 % 4.0 % At September 30, 2023, our future minimum payments under operating leases were as follows: (in thousands) Remainder of 2023 $ 767 2024 5,415 2025 4,589 2026 3,942 2027 1,297 Thereafter 97 Total future gross payments $ 16,107 Less: imputed interest (1,095) Total operating lease liabilities $ 15,012 Purchase Commitments We have entered into separate noncancelable agreements with computing infrastructure, productivity software, customer relationship management, and performance and security data analytics vendors for services through 2026. At September 30, 2023, our remaining purchase commitments and estimated purchase timing were as follows: (in thousands) Remainder of 2023 $ 2,129 2024 11,527 2025 11,178 2026 4,264 Total estimated future purchases $ 29,098

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 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 September 30, 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 Nine Months Ended (in thousands, except shares and per share amounts) 2023 2022 2023 2022 Number of shares repurchased — 102,234 — 357,430 Shares repurchased cost $ — $ 12,477 $ — $ 42,700 Average price per repurchased share $ — $ 122.04 $ — $ 119.46

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 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 September 30, 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 Nine Months Ended (in thousands) 2023 2022 2023 2022 Cost of revenues $ 2,506 $ 2,146 $ 7,595 $ 6,477 Operating expenses Sales and marketing 2,428 1,845 7,379 5,835 Research and development 1,798 1,396 5,387 4,250 General and administrative 4,704 2,573 15,736 9,074 $ 11,436 $ 7,960 $ 36,097 $ 25,636 Stock-based compensation expense by grant type or plan was as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Stock options $ 487 $ 461 $ 1,472 $ 1,401 PSUs 2,812 1,541 10,236 6,244 RSUs & DSUs 6,722 4,735 20,165 14,467 RSAs 122 110 345 328 ESPP 637 577 1,974 1,609 401(k) stock match 656 536 1,905 1,587 $ 11,436 $ 7,960 $ 36,097 $ 25,636 As of September 30, 2023, there was $50.3 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 2.4 years. Stock Options Our stock option activity was as follows: Nine Months Ended Options (#) Weighted Average Outstanding, beginning of period 562,697 $ 56.24 Granted 39,949 152.08 Exercised (154,279) 35.80 Forfeited (2,236) 127.39 Outstanding, end of period 446,131 $ 71.54 Of the total outstanding options at September 30, 2023, 0.4 million were exercisable. The outstanding and exercisable options had a weighted average exercise price of $59.61 per share and a weighted average remaining contractual life of 2.9 years. The weighted average grant date fair value of options granted during the nine months ended September 30, 2023 was $56.29 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) 4.2 Volatility 39.3 % Dividend yield — Risk-free interest rate 4.0 % 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 2020 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: Nine Months Ended # Weighted Average Grant Outstanding, beginning of period 712,158 $ 103.93 Granted 352,457 163.26 Vested and common stock issued (341,570) 77.06 Forfeited (7,607) 118.37 Outstanding, end of period 715,438 $ 145.83 The number of PSUs, RSUs, RSAs, and DSUs outstanding at September 30, 2023 included 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 Nine Months Ended (in thousands, except shares) 2023 2022 2023 2022 Amounts for shares purchased $ 344 $ 238 $ 4,481 $ 3,588 Shares purchased 3,159 2,481 41,384 37,516 A total of 1.7 million shares of common stock are reserved for issuance under the ESPP as of September 30, 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 40.1 % Dividend yield — Risk-free interest rate 4.6 %

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2023
Other Income and Expenses [Abstract]
Other Income and Expense	Other Income and Expense Other income (expense), net included the following: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Investment income $ 2,635 $ 586 $ 5,372 $ 806 Realized gain (loss) from foreign currency on cash and investments held 98 (1,151) 525 (2,010) Other expense, net (1,031) (130) (1,038) (406) Total other income (expense), net $ 1,702 $ (695) $ 4,859 $ (1,610)

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 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 Nine Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Numerator Net income $ 16,842 $ 15,863 $ 46,813 $ 39,219 Denominator Weighted average common shares outstanding, basic 36,728 36,093 36,584 36,104 Options to purchase common stock 256 379 279 396 PSUs, RSUs, RSAs, and DSUs 600 443 554 442 Weighted average common shares outstanding, diluted 37,584 36,915 37,417 36,942 Net income per share Basic $ 0.46 $ 0.44 $ 1.28 $ 1.09 Diluted $ 0.45 $ 0.43 $ 1.25 $ 1.06 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 Nine Months Ended (in thousands) 2023 2022 2023 2022 Anti-dilutive shares 40 107 43 222

Geographic Information

Geographic Information	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2023 2022 2023 2022 Domestic revenue 84 % 85 % 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: September 30, December 31, 2022 International property and equipment 14 % 13 %

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 16,842	$ 15,863	$ 46,813	$ 39,219

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	Sep. 30, 2023 shares	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		During the three months ended September 30, 2023, the following directors and officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted written plans for the sale of our securities that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act: Name Title Adoption Date Earliest Sale Date Expiration or Termination Date Aggregate Number of Shares of the Company's Common Stock to be Sold Archie Black Chief Executive Officer (1) and Director August 29, 2023 November 29, 2023 March 31, 2025 34,482 Kimberly Nelson Chief Financial Officer August 1, 2023 October 31, 2023 May 30, 2024 47,608 Philip Soran Director August 8, 2023 November 7, 2023 May 20, 2024 6,052 Marty Reaume Director August 9, 2023 November 8, 2023 August 9, 2024 6,570 (1) As previously reported, effective October 2, 2023 Archie Black retired as the Company's Chief Executive Officer.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Archie Black [Member]
Trading Arrangements, by Individual
Name	Archie Black
Title	Chief Executive Officer(1) and Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 29, 2023
Arrangement Duration	488 days
Aggregate Available	34,482	34,482
Kimberly Nelson [Member]
Trading Arrangements, by Individual
Name	Kimberly Nelson
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 1, 2023
Arrangement Duration	212 days
Aggregate Available	47,608	47,608
Philip Soran [Member]
Trading Arrangements, by Individual
Name	Philip Soran
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 8, 2023
Arrangement Duration	195 days
Aggregate Available	6,052	6,052
Marty Reaume [Member]
Trading Arrangements, by Individual
Name	Marty Reaume
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 9, 2023
Arrangement Duration	275 days
Aggregate Available	6,570	6,570

General (Policies)

General (Policies)	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounting Pronouncements Recently 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 has not had a material impact on the purchase accounting for business combinations.

Business Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition dates: InterTrade TIE Kinetix (in thousands) Acquisition Date Estimated Fair Value as of Adjustment Acquisition Date Estimated Fair Value as of Acquisition Date Estimated Fair Value as of Cash paid at transaction date $ 47,165 $ — $ 47,165 $ 73,558 Contingent consideration 2,000 — 2,000 Post-closing adjustments (93) 116 23 Total consideration $ 49,072 $ 116 $ 49,188 $ 73,558 Estimated fair value of assets and liabilities acquired: Cash $ 668 $ — $ 668 $ 4,859 Accounts receivable 1,302 (94) 1,208 1,347 Other assets 1,903 — 1,903 2,981 Intangible assets Subscriber relationships 17,640 (3,960) 13,680 18,183 Developed technology 4,410 (501) 3,909 12,122 Current liabilities (2,337) (35) (2,372) (3,606) Deferred revenue (397) 202 (195) (6,421) Deferred income tax liabilities, net (6,127) 1,030 (5,097) (6,112) Total fair value of assets and liabilities acquired $ 17,062 $ (3,358) $ 13,704 $ 23,354 Goodwill $ 32,010 $ 3,475 $ 35,485 $ 50,205
Schedule of Estimated Fair Value of Purchased Intangible Assets and their Estimated Useful Lives	The following table summarizes the estimated useful lives for each acquired intangible asset: Estimated Useful Life InterTrade TIE Kinetix Subscriber relationships 8.0 years 8.0 years Developed technology 6.0 years 6.0 years

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended (in thousands) 2023 2022 2023 2022 Recurring revenues: Fulfillment $ 110,900 $ 92,952 $ 318,069 $ 265,570 Analytics 13,098 11,902 38,177 34,846 Other 3,373 1,699 9,949 4,867 Recurring revenues 127,371 106,553 366,195 305,283 One-time revenues 8,290 7,933 25,750 23,574 Total revenue $ 135,661 $ 114,486 $ 391,945 $ 328,857
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 Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 16,978 $ 15,309 $ 14,999 $ 14,459 Invoiced set-up fees 4,496 3,715 14,493 11,776 Recognized set-up fees (4,225) (3,805) (12,243) (11,016) Balance, end of period $ 17,249 $ 15,219 $ 17,249 $ 15,219

Deferred Costs (Tables)

Deferred Costs (Tables)	9 Months Ended
	Sep. 30, 2023
Deferred Costs [Abstract]
Summary of Deferred Costs Activity	The deferred costs activity was as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 75,255 $ 64,665 $ 70,179 $ 59,720 Incurred deferred costs 20,094 17,442 57,632 52,860 Amortized deferred costs (16,303) (15,551) (48,765) (46,024) Balance, end of period $ 79,046 $ 66,556 $ 79,046 $ 66,556

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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: September 30, 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 $ 120,100 $ — $ 120,100 $ 73,368 $ — $ 73,368 Investments: Certificates of deposit Level 1 6,431 — 6,431 6,813 — 6,813 Marketable securities: Commercial paper Level 2 53,546 651 54,197 44,224 375 44,599 $ 180,077 $ 651 $ 180,728 $ 124,405 $ 375 $ 124,780

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2023
Allowance for Credit Loss [Abstract]
Summary 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: Nine Months Ended (in thousands) 2023 2022 Balance, beginning of period $ 3,066 $ 4,249 Provision for credit losses 4,004 2,889 Write-offs, net of recoveries (3,993) (3,480) Balance, end of period $ 3,077 $ 3,658

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Summary of Property, Plant and Equipment	Property and equipment, net consisted of the following: (in thousands) September 30, December 31, 2022 Internally developed software $ 57,933 $ 49,994 Computer equipment 34,048 30,310 Leasehold improvements 15,361 16,531 Office equipment and furniture 10,993 10,981 Property and equipment, cost 118,335 107,816 Less: accumulated depreciation and amortization (82,126) (72,358) Total property and equipment, net $ 36,209 $ 35,458

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Changes in Net Carrying Amount of Goodwill	Goodwill The activity in goodwill was as follows: Nine Months Ended (in thousands) 2023 Balance, beginning of period $ 197,284 Foreign currency translation (1,162) Addition from business acquisition(s) 50,842 Remeasurement from provisional purchase accounting amount 5,081 Balance, end of period $ 252,045
Summary of Intangible Assets	Intangible assets, net consisted of the following: September 30, 2023 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 97,734 $ (28,771) $ (4,173) $ 64,790 6.7 years Acquired technology 53,505 (13,995) (703) 38,807 5.3 years $ 151,239 $ (42,766) $ (4,876) $ 103,597 6.1 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
Summary of 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 $ 4,718 2024 17,899 2025 17,761 2026 16,757 2027 16,294 Thereafter 30,168 Total future amortization $ 103,597

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Summary of Components of Lease Expense	The components of lease expense were as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Operating lease cost $ 729 $ 788 $ 2,306 $ 2,287 Variable lease cost 909 963 2,787 2,612 $ 1,638 $ 1,751 $ 5,093 $ 4,899
Summary of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Nine Months Ended (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,835 $ 3,399 Right-of-use assets obtained in exchange for operating lease liabilities 1,072 934
Summary of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to operating leases was as follows: September 30, December 31, 2022 Weighted-average remaining lease term 3.3 years 3.9 years Weighted-average discount rate 3.7 % 4.0 %
Summary of Future Minimum Payments Under Operating Leases	At September 30, 2023, our future minimum payments under operating leases were as follows: (in thousands) Remainder of 2023 $ 767 2024 5,415 2025 4,589 2026 3,942 2027 1,297 Thereafter 97 Total future gross payments $ 16,107 Less: imputed interest (1,095) Total operating lease liabilities $ 15,012
Summary of Remaining Purchase Commitments and Estimated Purchase Timing	At September 30, 2023, our remaining purchase commitments and estimated purchase timing were as follows: (in thousands) Remainder of 2023 $ 2,129 2024 11,527 2025 11,178 2026 4,264 Total estimated future purchases $ 29,098

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Summary of 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 September 30, 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 Nine Months Ended (in thousands, except shares and per share amounts) 2023 2022 2023 2022 Number of shares repurchased — 102,234 — 357,430 Shares repurchased cost $ — $ 12,477 $ — $ 42,700 Average price per repurchased share $ — $ 122.04 $ — $ 119.46

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense	Stock-based compensation expense was allocated in the condensed consolidated statements of comprehensive income as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Cost of revenues $ 2,506 $ 2,146 $ 7,595 $ 6,477 Operating expenses Sales and marketing 2,428 1,845 7,379 5,835 Research and development 1,798 1,396 5,387 4,250 General and administrative 4,704 2,573 15,736 9,074 $ 11,436 $ 7,960 $ 36,097 $ 25,636 Stock-based compensation expense by grant type or plan was as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Stock options $ 487 $ 461 $ 1,472 $ 1,401 PSUs 2,812 1,541 10,236 6,244 RSUs & DSUs 6,722 4,735 20,165 14,467 RSAs 122 110 345 328 ESPP 637 577 1,974 1,609 401(k) stock match 656 536 1,905 1,587 $ 11,436 $ 7,960 $ 36,097 $ 25,636
Summary of Stock Option Activity	Our stock option activity was as follows: Nine Months Ended Options (#) Weighted Average Outstanding, beginning of period 562,697 $ 56.24 Granted 39,949 152.08 Exercised (154,279) 35.80 Forfeited (2,236) 127.39 Outstanding, end of period 446,131 $ 71.54
Summary of Weighted Average Grant Date Fair Value of Options Granted, Assumptions	The weighted average grant date fair value of options granted during the nine months ended September 30, 2023 was $56.29 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) 4.2 Volatility 39.3 % Dividend yield — Risk-free interest rate 4.0 %
Summary of PSU, RSU, RSA, and DSU	Activity for our PSUs, RSUs, RSAs, and DSUs in aggregate was as follows: Nine Months Ended # Weighted Average Grant Outstanding, beginning of period 712,158 $ 103.93 Granted 352,457 163.26 Vested and common stock issued (341,570) 77.06 Forfeited (7,607) 118.37 Outstanding, end of period 715,438 $ 145.83
Summary of ESPP Activity	Our ESPP activity was as follows: Three Months Ended Nine Months Ended (in thousands, except shares) 2023 2022 2023 2022 Amounts for shares purchased $ 344 $ 238 $ 4,481 $ 3,588 Shares purchased 3,159 2,481 41,384 37,516
Summary of Fair Value Estimation based on the Market Price of Common Stock	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 40.1 % Dividend yield — Risk-free interest rate 4.6 %

Other Income and Expense (Table

Other Income and Expense (Tables)	9 Months Ended
	Sep. 30, 2023
Other Income and Expenses [Abstract]
Summary of Other Income (Expense), Net	Other income (expense), net included the following: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Investment income $ 2,635 $ 586 $ 5,372 $ 806 Realized gain (loss) from foreign currency on cash and investments held 98 (1,151) 525 (2,010) Other expense, net (1,031) (130) (1,038) (406) Total other income (expense), net $ 1,702 $ (695) $ 4,859 $ (1,610)

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Summary of 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 Nine Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Numerator Net income $ 16,842 $ 15,863 $ 46,813 $ 39,219 Denominator Weighted average common shares outstanding, basic 36,728 36,093 36,584 36,104 Options to purchase common stock 256 379 279 396 PSUs, RSUs, RSAs, and DSUs 600 443 554 442 Weighted average common shares outstanding, diluted 37,584 36,915 37,417 36,942 Net income per share Basic $ 0.46 $ 0.44 $ 1.28 $ 1.09 Diluted $ 0.45 $ 0.43 $ 1.25 $ 1.06
Summary 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 Nine Months Ended (in thousands) 2023 2022 2023 2022 Anti-dilutive shares 40 107 43 222

Geographic Information (Tables)

Geographic Information (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2023 2022 2023 2022 Domestic revenue 84 % 85 % 84 % 84 %
Summary 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: September 30, December 31, 2022 International property and equipment 14 % 13 %

Business Acquisitions - Narrati

Business Acquisitions - Narrative (Details) $ in Thousands, € in Millions						3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 13, 2023 USD ($)	Sep. 13, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Oct. 04, 2022 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
Business Acquisition [Line Items]
Goodwill	$ 252,045			$ 197,284		$ 252,045		$ 252,045
InterTrade
Business Acquisition [Line Items]
Total consideration	49,188			49,072	$ 49,100
Decrease in provisional amounts for consideration transferred							$ 3,100	(116)
Decrease in estimated value of deferred income tax assets							3,900
Change in deferred tax position							$ 1,000
Cash paid at transaction date	47,165			47,165
Goodwill	35,485			$ 32,010		35,485		35,485
TIE Kinetix
Business Acquisition [Line Items]
Total consideration	73,558	$ 68,700	€ 63.9
Cash paid at transaction date	73,558
Goodwill	50,205					50,205		50,205
Other Acquisition
Business Acquisition [Line Items]
Cash paid at transaction date						1,500
Assets acquired	900					900		900
Goodwill	$ 600					$ 600		$ 600

Business Acquisitions - Estimat

Business Acquisitions - Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) $ in Thousands, € in Millions						3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 13, 2023 USD ($)	Sep. 13, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Oct. 04, 2022 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
Estimated fair value of assets and liabilities acquired:
Goodwill	$ 252,045			$ 197,284			$ 252,045
Adjustment, goodwill							5,081
InterTrade
Business Acquisition [Line Items]
Cash paid at transaction date	47,165			47,165
Contingent consideration	2,000			2,000
Post-closing adjustments	23			(93)
Adjustment, post-closing adjustments							116
Total consideration	49,188			49,072	$ 49,100
Adjustment, total consideration						$ (3,100)	116
Estimated fair value of assets and liabilities acquired:
Cash	668			668			668
Accounts receivable	1,208			1,302			1,208
Other assets	1,903			1,903			1,903
Adjustment, intangible assets						$ (3,900)
Current liabilities	(2,372)			(2,337)			(2,372)
Adjustment, current liabilities							(35)
Deferred revenue	(195)			(397)			(195)
Deferred income tax liabilities, net	(5,097)			(6,127)			(5,097)
Adjustment, deferred income tax liabilities							1,030
Total fair value of assets and liabilities acquired	13,704			17,062			13,704
Total fair value of assets and liabilities acquired							(3,358)
Goodwill	35,485			32,010			35,485
Adjustment, goodwill							3,475
InterTrade | Subscriber relationships
Estimated fair value of assets and liabilities acquired:
Intangible assets	13,680			17,640			13,680
Adjustment, intangible assets							(3,960)
InterTrade | Developed technology
Estimated fair value of assets and liabilities acquired:
Intangible assets	3,909			$ 4,410			3,909
Adjustment, intangible assets							(501)
TIE Kinetix
Business Acquisition [Line Items]
Cash paid at transaction date	73,558
Contingent consideration
Post-closing adjustments
Total consideration	73,558	$ 68,700	€ 63.9
Estimated fair value of assets and liabilities acquired:
Cash	4,859						4,859
Accounts receivable	1,347						1,347
Other assets	2,981						2,981
Current liabilities	(3,606)						(3,606)
Deferred revenue	(6,421)						(6,421)
Deferred income tax liabilities, net	(6,112)						(6,112)
Total fair value of assets and liabilities acquired	23,354						23,354
Goodwill	50,205						50,205
TIE Kinetix | Subscriber relationships
Estimated fair value of assets and liabilities acquired:
Intangible assets	18,183						18,183
TIE Kinetix | Developed technology
Estimated fair value of assets and liabilities acquired:
Intangible assets	$ 12,122						$ 12,122

Business Acquisitions - Schedul

Business Acquisitions - Schedule of Estimated Fair Value of Purchased Intangible Assets and their Estimated Useful Lives (Details)	Sep. 30, 2023
Subscriber relationships | InterTrade
Business Acquisition [Line Items]
Intangible assets useful life	8 years
Subscriber relationships | TIE Kinetix
Business Acquisition [Line Items]
Intangible assets useful life	8 years
Developed technology | InterTrade
Business Acquisition [Line Items]
Intangible assets useful life	6 years
Developed technology | TIE Kinetix
Business Acquisition [Line Items]
Intangible assets useful life	6 years

Revenue - Summary of Revenues b

Revenue - Summary of Revenues by Revenue Stream (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue Recognition [Line Items]
Revenues	$ 135,661	$ 114,486	$ 391,945	$ 328,857
Recurring revenues
Revenue Recognition [Line Items]
Revenues	127,371	106,553	366,195	305,283
One-time revenues
Revenue Recognition [Line Items]
Revenues	8,290	7,933	25,750	23,574
Fulfillment | Recurring revenues
Revenue Recognition [Line Items]
Revenues	110,900	92,952	318,069	265,570
Analytics | Recurring revenues
Revenue Recognition [Line Items]
Revenues	13,098	11,902	38,177	34,846
Other | Recurring revenues
Revenue Recognition [Line Items]
Revenues	$ 3,373	$ 1,699	$ 9,949	$ 4,867

Revenue - Narrative (Details)

Revenue - Narrative (Details)	9 Months Ended
	Sep. 30, 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 (Details) - Set-Up Fees - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Deferred Revenue Arrangement [Roll Forward]
Balance, beginning of period	$ 16,978	$ 15,309	$ 14,999	$ 14,459
Invoiced set-up fees	4,496	3,715	14,493	11,776
Recognized set-up fees	(4,225)	(3,805)	(12,243)	(11,016)
Balance, end of period	$ 17,249	$ 15,219	$ 17,249	$ 15,219

Deferred Costs (Details)

Deferred Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Deferred Costs [Roll Forward]
Balance, beginning of period	$ 75,255	$ 64,665	$ 70,179	$ 59,720
Incurred deferred costs	20,094	17,442	57,632	52,860
Amortized deferred costs	(16,303)	(15,551)	(48,765)	(46,024)
Balance, end of period	$ 79,046	$ 66,556	$ 79,046	$ 66,556

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Schedule of Financial Instruments [Line Items]
Amortized Cost	$ 180,077	$ 124,405
Unrealized Gains (Losses), net	651	375
Fair Value	180,728	124,780
Investments:
Schedule of Financial Instruments [Line Items]
Amortized Cost	6,431	6,813
Unrealized Gains (Losses), net	0	0
Fair Value	6,431	6,813
Cash Equivalents | Money market funds
Schedule of Financial Instruments [Line Items]
Amortized Cost	120,100	73,368
Unrealized Gains (Losses), net	0	0
Fair Value	120,100	73,368
Marketable Securities | Commercial paper
Schedule of Financial Instruments [Line Items]
Amortized Cost	53,546	44,224
Unrealized Gains (Losses), net	651	375
Fair Value	$ 54,197	$ 44,599

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 3,066	$ 4,249
Provision for credit losses	4,004	2,889
Write-offs, net of recoveries	(3,993)	(3,480)
Balance, end of period	$ 3,077	$ 3,658

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 118,335	$ 107,816
Less: accumulated depreciation and amortization	(82,126)	(72,358)
Property and equipment, net	36,209	35,458
Internally developed software
Property, Plant and Equipment [Line Items]
Property and equipment, cost	57,933	49,994
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, cost	34,048	30,310
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, cost	15,361	16,531
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 10,993	$ 10,981

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Summary of Changes in Net Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Balance, beginning of period	$ 197,284
Foreign currency translation	(1,162)
Addition from business acquisition(s)	50,842
Remeasurement from provisional purchase accounting amount	5,081
Balance, end of period	$ 252,045

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 151,239	$ 120,711
Accumulated Amortization	(42,766)	(32,189)
Foreign Currency Translation	(4,876)	(170)
Net	$ 103,597	$ 88,352
Weighted Average Remaining Amortization Period	6 years 1 month 6 days	6 years 4 months 24 days
Subscriber relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 97,734	$ 80,101
Accumulated Amortization	(28,771)	(22,255)
Foreign Currency Translation	(4,173)	(171)
Net	$ 64,790	$ 57,675
Weighted Average Remaining Amortization Period	6 years 8 months 12 days	6 years 9 months 18 days
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 53,505	$ 40,610
Accumulated Amortization	(13,995)	(9,934)
Foreign Currency Translation	(703)	1
Net	$ 38,807	$ 30,677
Weighted Average Remaining Amortization Period	5 years 3 months 18 days	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 (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 4,718
2024	17,899
2025	17,761
2026	16,757
2027	16,294
Thereafter	30,168
Net	$ 103,597	$ 88,352

Commitments and Contingencies -

Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 729	$ 788	$ 2,306	$ 2,287
Variable lease cost	909	963	2,787	2,612
Lease expense	$ 1,638	$ 1,751	$ 5,093	$ 4,899

Commitments and Contingencies_2

Commitments and Contingencies - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 3,835	$ 3,399
Right-of-use assets obtained in exchange for operating lease liabilities	$ 1,072	$ 934

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Supplemental Balance Sheet Information Related to Leases (Details)	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term	3 years 3 months 18 days	3 years 10 months 24 days
Weighted-average discount rate	3.70%	4%

Commitments and Contingencies_4

Commitments and Contingencies - Summary of Future Minimum Payments Under Operating Leases (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2023	$ 767
2024	5,415
2025	4,589
2026	3,942
2027	1,297
Thereafter	97
Total future gross payments	16,107
Less: imputed interest	(1,095)
Total operating lease liabilities	$ 15,012

Commitments and Contingencies_5

Commitments and Contingencies - Summary of Remaining Purchase Commitments (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2023	$ 2,129
2024	11,527
2025	11,178
2026	4,264
Total estimated future purchases	$ 29,098

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Plan (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Equity [Abstract]
Number of shares repurchased (in shares)	0	102,234	0	357,430
Shares repurchased cost	$ 0	$ 12,477	$ 0	$ 42,700
Average price per repurchased share (in dollars per share)	$ 0	$ 122.04	$ 0	$ 119.46

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2023
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					$ 50.3
Unrecognized stock-based compensation, expected to be recognized, weighted average period					2 years 4 months 24 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)					$ 59.61
Weighted average remaining contractual life					2 years 10 months 24 days
Weighted average fair value per share of options granted (in dollars per share)					$ 56.29
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 (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 11,436	$ 7,960	$ 36,097	$ 25,636
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	487	461	1,472	1,401
PSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,812	1,541	10,236	6,244
RSUs & DSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	6,722	4,735	20,165	14,467
RSAs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	122	110	345	328
ESPP
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	637	577	1,974	1,609
401(k) stock match
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	656	536	1,905	1,587
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,506	2,146	7,595	6,477
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,428	1,845	7,379	5,835
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	1,798	1,396	5,387	4,250
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 4,704	$ 2,573	$ 15,736	$ 9,074

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 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	39,949
Exercised (in shares) | shares	(154,279)
Forfeited (in shares) | shares	(2,236)
Outstanding, end of period (in shares) | shares	446,131
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	152.08
Exercised (in dollars per share) | $ / shares	35.80
Forfeited (in dollars per share) | $ / shares	127.39
Outstanding, end of period (in dollars per share) | $ / shares	$ 71.54

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted, Assumptions (Details) - Stock options	9 Months Ended
	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Life (in years)	4 years 2 months 12 days
Volatility	39.30%
Dividend yield	0%
Risk-free interest rate	4%

Stock-Based Compensation - PSU,

Stock-Based Compensation - PSU, RSU, RSA, and DSU (Details) - PSU, RSU, RSA, and DSU	9 Months Ended
	Sep. 30, 2023 $ / shares shares
#
Outstanding, beginning of period (in shares) | shares	712,158
Granted (in shares) | shares	352,457
Vested and common stock issued (in shares) | shares	(341,570)
Forfeited (in shares) | shares	(7,607)
Outstanding, end of period (in shares) | shares	715,438
Weighted Average Grant Date Fair Value ($/share)
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 103.93
Granted (in dollars per share) | $ / shares	163.26
Vested and common stock issued (in dollars per share) | $ / shares	77.06
Forfeited (in dollars per share) | $ / shares	118.37
Outstanding, end of period (in dollars per share) | $ / shares	$ 145.83

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of ESPP Activity (Details) - Employee Stock Purchase Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts for shares purchased	$ 344	$ 238	$ 4,481	$ 3,588
Shares purchased (in shares)	3,159	2,481	41,384	37,516

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Estimation based on the Market Price of Common Stock (Details) - Employee Stock Purchase Plan	9 Months Ended
	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Life (in years)	6 months
Volatility	40.10%
Dividend yield	0%
Risk-free interest rate	4.60%

Other Income and Expense (Detai

Other Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Income and Expenses [Abstract]
Investment income	$ 2,635	$ 586	$ 5,372	$ 806
Realized gain (loss) from foreign currency on cash and investments held	98	(1,151)	525	(2,010)
Other expense, net	(1,031)	(130)	(1,038)	(406)
Total other income (expense), net	$ 1,702	$ (695)	$ 4,859	$ (1,610)

Net Income Per Share - Componen

Net Income Per Share - Components and Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator
Net income	$ 16,842	$ 15,863	$ 46,813	$ 39,219
Denominator
Weighted average common shares outstanding, basic (in shares)	36,728	36,093	36,584	36,104
Options to purchase common stock (in shares)	256	379	279	396
PSUs, RSUs, RSAs, and DSUs (in shares)	600	443	554	442
Weighted average common shares outstanding, diluted (in shares)	37,584	36,915	37,417	36,942
Net income per share
Basic (in dollars per share)	$ 0.46	$ 0.44	$ 1.28	$ 1.09
Diluted (in dollars per share)	$ 0.45	$ 0.43	$ 1.25	$ 1.06

Net Income Per Share - Summary

Net Income Per Share - Summary of Anti-dilutive Common Shares Excluded from Calculation of Diluted Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	40	107	43	222

Geographic Information - Summar

Geographic Information - Summary of Domestic Revenue (Details) - Revenue Benchmark - Geographic Concentration Risk	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Domestic Revenue
Disaggregation Of Revenue [Line Items]
Concentration risk, percentage	84%	85%	84%	84%
Foreign
Disaggregation Of Revenue [Line Items]
Concentration risk, percentage			14%		13%