SPSC - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the SPS Commerce Q3 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to Blaszczyk. conference like speaker to now Irmina today would hand over the your I ahead, go Please ma'am.

Irmina Blaszczyk

Quarter Josh. thank us Third you you, for Conference Thank Good joining on afternoon, SPS everyone and XXXX Call. Commerce

financial cause traction a statements statements certain could are customers. uncertainties results efforts with our strategy make will number with differ and materially. results, increase retailers that today market our We go-to to These involve of penetration to respect risks forward-looking including actual to and expected and designed other and and

Please as otherwise. note a as obligation any this we that opinions these revise forward-looking statements or whether no of call, result reflect our of undertake to only or statements, of publicly new update the information, date forward-looking events and future

specifically description and website of results. risk affect to XX-K, results These available SEC Form documents financial our may our SEC's refer as the detailed release spscommerce.com, as our for more are at sec.gov. our press the filings, our website, factors that a well Please at

we providing of reference section data our historical on are a sheet Relations easy website for Investor spscommerce.com. our addition, In

comparable EBITDA our our including with release website we call adjusted In discuss financial measures. and measures these and find additional posted GAAP will with During you non-GAAP non-GAAP of share. adjusted per reconciliations our these will measures filings which each and the earnings our SEC EBITDA is today, press on measures regarding disclosures of

with And turn will call Archie. that, I to the over

Archie Black

experience best-in-class supply-chain. the financial full-service to while customers delivered performance our strong everyone. and targets, partners retail Thanks, we the and Irmina, deliver ahead to and third quarter our In XXXX, of across welcome, continuing of technology

revenue Adjusted quarter, million and third grew to grew to $XX.X XX% the revenue XX% million. $XX.X For XX%. EBITDA grew recurring

recurring are power to We SPS we X network proud of the of over and has the quarter report this the solutions. reached also of success of the broad times attribute customers since went XXXXX, number public. nearly to the portfolio revenue in number third that We customers our Commerce

continued and opportunities to need retail to to E-commerce suppliers those present and offer retailers and for EDI. continues growth of omni-channel unmatched comprehensive in solutions SPS

Outdoors project large with top of more Academy trading EDI professional a partnership an effectively services a to Cognizant, undergoing transformation the inventory product retail management, and and is was retailer accuracy. example identified a their in world's is Academy order one who priority Sports leading of fulfillment manage partnerships including company. delivery for as

the chose new to outsource of scale onboarding the Academy of and existing to suppliers. project, EDI Given Commerce including SPS

on dividends focus suppliers retailers Our also relationships cultivating continued is paying and with in Europe.

is and For Corporation, with to entice example, vendors SPS suppliers the apparel partnerships in VF Craft retailers their sporty leveraging Dorel Puma, point-of-sale such a SPS coordinated and strong network. through as analytics share Adidas, data effort with to leisure

recognize retailers since have a more of the benefits of European triple in number world than the SPS and the seen in network More more collaboration omni-channel analytics now and XXXX. we retailers

a supplier EDI a are Company, full partner with in was U.S. of is The retailers. ecofriendly founded and who XXXX. in SPS U.S. health for launched to products looking Sweden in service international provider wellness also go-to and of the Humble suppliers

full-service partners needs experience. to their of already infrastructure e-commerce to with requirements, the tomorrow. summary, retailers' the scalable With trading In them changed retail retailers technology evolution a customers around to product management as partnered growing U.S. EDI and with and omni-channel Commerce embrace network, developing Humble selling is SPS of number Company continue the today company world's Commerce. meet a and To best-in-class the retailers support The and their globe cloud-based the well-positioned is largest suppliers SPS retail address of and

results. to turn I'll over Kim to discuss financial that, our With it

Kim Nelson

$XX.X million, quarter increase of was great a had year, over represented We XXth of last QX Archie. Thanks, a quarter. growth. and consecutive the XX% quarter revenue third for our Revenue

of flat increased total this X,XXX. The XX% at recurring revenue year-over-year. share customers was about year-over-year Recurring XX% grew XX,XXX, approximately year-over-year quarter revenue number and to wallet approximately

we we in of customer the to XXXX time, the XXXX, smaller and CovalentWorks. a in customer due As acquisition decrease share approximately we to size. our to stated expect announced our approximately by wallet At by reminder, XXXX December CovalentWorks' increase count $XXX average that

with in adjusted quarter, securities approximately and marketable $XX.X million of million and ended was the SPS the million For year. approximately repurchased QX to million, of $XX.X shares. $XXX quarter compared We total last $X of EBITDA cash

increase company extension to its stock. stock previously Board originally authorized up purchase program, Directors the has and of announced to which of outstanding common repurchase the addition, $XX of an the In authorized million

increased been the the over original Under X, expiration $XXX The has date repurchased the program, through the to of September authorized original amount million. XX. November That also by million $XX Board an Board X, November XXXX. XXXX company to extension from

guidance. to turning Now

range XXXX, the $XX.X of million $XX.X expect to revenue quarter of be fourth the For we million. in to

EBITDA adjusted of in to to $XX.X $XX.X expect We million the be range million.

approximately expect XX.X fully $X.XX outstanding shares. diluted We million earnings average to diluted to share weighted per shares $X.XX fully be with approximately of

$X.X diluted per $X.XX of approximately to approximately million million. and share We be of earnings expense to $X.X million, expense approximately compensation depreciation stock-based of $X.X amortization non-GAAP $X.XX expect with approximately expense

million, in to full $XXX.X XXXX. range the representing expect growth revenue of we over be to the $XXX.X XX% year, million For

growth to million, in EBITDA $XX.X the approximately XX% adjusted to representing expect range of $XX.X We over to XX% XXXX. be million

shares. to share to expect $X.XX diluted of we in fully outstanding be earnings of diluted expect We weighted XX the shares average range fully $X.XX, and per approximately million

approximately the share to stock-based depreciation expense non-GAAP expense and million, to with $XX.X be expect approximately range million. million of of approximately amortization expense $X.X $XX.X We to per be of compensation $X.XX $X.XX in earnings diluted

effective the investors For forecast, model earnings. on net GAAP calculated XX% a should tax rate pre-tax

conference will guidance we detailed For our on earnings provide XXXX, QX call.

growth for over XXXX revenue annual annual our dollar EBITDA annual to guidance. XX% EBITDA over least annual we purposes, expect at and revenue XXXX modeling However, XX% growth guidance deliver our

proving efficiency ahead of its multibillion-dollar Commerce SPS network and leveraging summary, In our model business the growing us. execute to suppliers and relationships our of retailers continues in to strategic market on targets, address opportunity

for I'd open to questions. the call like that, with And

Questions-and-Answers Session

Operator

comes Thank you. first Instructions] Needham. from [Operator Scott Berg Our with question

with You your may question. proceed

Scott Berg

and one question Hi, obligatory me. I guess your to adds are I'm my guys. not maybe your I Thanks demand the strength on the attributing start I guess the for to to of at adds -- that's customer macro great a the the there better changes off sort in with seriously of couple that with I any quarters in you two looking seeing do of any today? Archie, on regards over everyone's you've or congrats quarter. you're years. XXX a it last got see quarter. mind, say environment but your seen model, XXX you to? and And customer organic what

Archie Black

Yeah.

I adds. we to quarter, leads for which the very think a strong had retail the campaigns, customer enablement on quarter community the

the but overall look environment. see at a environment, characterize as think clearly I I stabilization Scott, would when I I it don't in and an pretty stabilizing necessarily retail clearly the I retail see acceleration, feel good. we overall

Scott Berg

on follow-up share Got program. question it. Helpful. then repurchase And for the either of a you

do the on find spend XX-years seems generating. with M&A I The here of over to Or you're is, continue you the $XX that strategy the more a more aggressive ways going that flow true see forward that you're million going question broader remain last and guess especially to and cash be capital we cash throwing kind structure sense, makes to excess the employed off does forward? today? other

Archie Black

enough fit Yes. We to be our not well. to vision. trying to but to criteria we're disciplined. disciplined It needs to standpoint, needs -- going the our fit from M&A we're active, as be we're overpay extremely and It

So the -- that but the aggressive continue we'll will only but deals us be and help for long-term. we to active, do

Scott Berg

at my questions. for taking all Thanks That's the have moment. I

Operator

Thank you.

question next comes Capital from Markets. with KeyBanc Our Jason Celino

You with proceed your may question.

Jason Celino

you Hey, me guys. Can hear okay?

Archie Black

Yes.

Kim Nelson

Yes.

Jason Celino

just kind regions Great. I or just guys industry any bit? question. talk have you only long-winded serve But of one the of about any a compete they Do well? types kind and Thanks. have overlap, they have little very the characteristics on that customers they you MAPADOC of the customer -- can

Archie Black

Yes.

Commerce. SPS really system was partner built And overlap. and there on in so significant mile been overlap of well. built -- long-term as the a SPS ERP last integration has -- be and into it's the that So to of for was things And back MAPADOC really a the partner how Commerce affects company really that

Kim Nelson

Sure.

to about acquisition. financials, the in new, there incrementals see when -- Jason -- with because years. you that if you think form MAPADOC many acquisition was XXX point customers there the to partner what think you What us when about for Archie's the to about would of want from overlap it from was you a of ours So the they to our as is quarter MAPADOC came certainly were the

as impacted that right million time time, $XXX,XXX relates view It our incremental line million that or $X had acquisition, for million relatively we XXXX nominal expect to and in an $X adjusted at generate the that to that And provided we in it said at a revenue by announced on MAPADOC XXXX bottom about $X we the to in MAPADOC EBITDA us also about we XXXX. it quarter. But now.

Jason Celino

you. Thank really That’s Great. helpful.

Operator

you. Thank

Our with Ikeda Koji next Oppenheimer. from comes question

your with question. proceed may You

Koji Ikeda

quarter. for Thanks a and or congrats question Question Kim. taking either for really nice my on Archie

the of the commentary analytics? high I customer there you at on would good kind guys of a On single-digits. half there to the I the last sort analytics guess wins in customer any know good analytics? know sort as you on where analytics product Or analytics had commentary Were REI out first helpful? be called really grown any a in any I they've quarter? of of mid-

Archie Black

Yes.

moving the overall retailers. really big really analytics environment a long-term retail far about market our not just of not stabilized, And we're excited I our a and happening the there, matter as as in but addressable we optimistic earlier, has a so think massive think priorities It's adds. -- past, stated change. for it's as I what's mentioned on we're as total the we've

base, about excited revenue changes side. helps not Again very but happening see the from really to or that's can us Europe you're revenue on that. are a off what's meaningful we We so I see long-term going XXXX, it XXXX think growth in small the in really that for analytics

Koji Ikeda

And Thanks, Archie for for that. a question Kim. maybe

third there noticed of that basis in seasonality noticed and model revenue, in sort guess a walk seasonality deferred quarter? looking could it quarter puts of kind the the just cause would you takes us there's the and some I I of this at my deferred what through I there in usually. on on I of On was some declined. And that kind sequential the

Kim Nelson

Yes.

cash the of our time period two-year business, part, on gets fees or we setup customers be revenue For monthly. recognized of the GAAP going for P&L. roughly the deferred the that most bill a our monthly to purposes receive the to related over most is ratably Majority

maybe on a than we're companies the as revenue. deferred little So it bit different reflects other some SaaS

quarter customers have in our that do acquisition and So may is advance. revenue you short a QX, and any of year through you because some the QX between a note. that the of different us but given outside the of really reflected see a long-term, term slight some a In of deferred the bit in tend prior nothing handful in see But to revenue. little do the you differences we do pay on see deferred that QX,

Koji Ikeda

question. that. for appreciate quarter. great my Thanks taking thanks I it for Great, and

Kim Nelson

Koji. Thanks,

Operator

Thank Stifel. our Roderick with from Tom And question you. comes next

You may question. proceed with your

Tom Roderick

Archie my with start me you. questions. hi Kim, for thanks Kim, taking let Hi

be seasonality to gradually a bit gross seems margins of up but higher. that little sort well, some Just bit jumped the creeping any There in little a as quarter-on-quarter.

little can in you wrap you ought of that -- to how MAPADOC. going the And about more trend line, tiny talk numbers. a bit particularly bit forward, we that about if more it in prominent kind becomes as Wondering think

But How bit in. just its the year, continues generally works think going should a it speaking, do to was and perhaps MAPADOC about as we better than gross sort margins analytics of last little here? forward way

Kim Nelson

Sure.

at a a margin So, in particular our expenses, with to be modelling from other gross quarter. indicative on an tends looking it along than more annual basis

higher was up to year, your answer it lower little margin bit notice on in little in specific a a bit question QX. you'll It was this gross However, that, QX.

expect call the earnings front to back of it commentary our On be the quarter, margin half was I XXXX. say for you to should half similar have of to last in some gross given the XXXX, what

so we And commentary. line ended is in that with really up very where that's

half So, of this year expect similar for gets of you to you the front to should and for gross annual half which the expectations margin. that -- the back it XXXX to

line. expect haven't line by XXXX, how color as example We given detail an of you on or model should

the into to continue we gross margin for low longer-term, scale. there's believe continued But to expansions, mid-XXs, opportunity as we

Tom Roderick

know for to turning then, general you've and quota-carrying is line, that would headcount the or love a you Excellent progressing marketing sales sales as an the sense hear give hiring have don't to how got us I and us like. looks to can the with it. update if I if sales number

Archie And this. then, philosophical a just or broadly Kim, whoever level, to speaking take from wants

to line down, terms the continue grow for the as to it's flattish this XX% if I I three quarters look of and marketing look sales year. you year, three versus the As even And thought expenses. last at next double-digits at year in quarters of non-GAAP kind

need for able add you be continue run? Just you you Do and capacity next to speaking, have year enough do that capacity? to Do the heads grow grow need year? beyond? XX% generally do that think next that to think growing to level XX% ought more How how that about to you to grow

Kim Nelson

Sure.

sales So than you that rate marketing to well you'll from into revenue as years, the a you sales And prior years. were at at and a saw year this if a such marketing. lower some go as of when couple you year as see as that percent is back and of last of spend look what that,

have of that to made more is output sales and the XXXX getting years to lot our organization. a way A from sales in we're think actually that XXXX. it the organization, some of simple about in has that the organized way with do the productivity, to changes more And over or been we we've

us is from and revenue. continue up order to we feel expectations, for of and in about as think and the fit and you ongoing capacity to demand line very will good top to about revenue and output perspective. course the well keep as our add from see hit a resources, we meet necessary our with capacity working our When we our That's XXXX,

have we're we're front about So organized, place. appropriate continue in large opportunity feel rest that resources, good add the in we really But go to about good continue assured feel us. to as way to to the team going after of

Tom Roderick

very thank job much. guys. you Great, Nice

Operator

Thank you.

Hynes next Canaccord. David Our from question with comes

You your question. may with proceed

David Hynes

Kim, this Hey, you. one's very thanks guys. much, for maybe

bit the of growth, acquisition As little now wallet kind we the drivers about think the of obviously, in covalent share obscured works. of with a

contributing continuing that number of growth? same-store any way sales I about you think is can there engine Is has that been guess, help increase? us the how integrations to to retail

this And once wallet CovalentWorks-impacted period, share we should I guess like? what growth that of out come look

Kim Nelson

Sure.

more been our So, both have with more our business adding customers revenue customers Nothing and there. those our revenue drivers to remains. and that different overall and is getting and recurring growth important then business from overall

particular by recurring the looking are look fact basis about the that point average that And of year-over-year a To CovalentWorks growth metrics the metrics customer revenue again, per little your in showing now some it right a those impacted right odd from in and XX% is you're when now. revenue bit flat, is at acquisition.

gave about the to it that customers CovalentWorks have added customers a of X,XXX time we we are recurring per $XXX that about customers comment revenue negative just and is on fact in that those the did that average impact smaller size. the So, would that revenue due at

from a that give So going you it information would forward. perspective you some figure modeling out help to model how you should

revenue. as well to our have of more from recurring both to customers very time our drivers Our more over add be get wallet share and those to the more expectations and as will important continuing both that more are opportunity overall customers

David Hynes

Yeah. Got it.

go where I that right they you Analytics. then so And and to headwinds, to selling Can a outperforming. of clearly example, like up just are an does this you reference you about rest retailers is you then like, have other assume can long to from in expected seeing that look get And their running asked for as is the hey I Okay. And Archie, you and production And earlier REI us I that investment. up? guess, you business the leverage Collaboration Koji instance for customer how REI stand remind so take guys now? like outperformed them say is $XXX take are the if return guess able

too. that playbook You guys this run? should Or consider how does just

Archie Black

Yeah.

to to stand program somebody how biggest going But thing a they're that that they're the do the retailer to needs for extremely up we share. typically fast. need the is share to occur So understand that technologically, can really we with it successful consult – what going retailer, so to exactly and they

to to out suppliers, through. we the go has well suppliers. through that So be then And well-thought need to to go the you and thought then out message a

do But XXX for are want doing it could suppliers production. right in it the up weeks. enablement a to to few you we is it's a lasting typically REI And probably do have almost Once, You probably SPS immediately. and XX in start literally retailer campaign process. for and day yes to you Commerce, a want if stood impact the those

David Hynes

then mean, just piece just do around their the happen? when I drive gets sharing nothing does retailer really it I there's selling the it, you really And is to on the that Yeah. mean, it of et buy-in data reference Or can depends that. cetera? –

Archie Black

the think time think I very the network process to I the network. suppliers the to did – flywheel more it more do up. sign XX network. No. the try in you really is value supplier fulfillment the is in build And to to the that's able analytics and years. to are over more we're the value is trying see, that I And larger And the likely of Yeah. we see. network just network exactly it more It's the but build the what they the the reference have a in what easier mean, most

David Hynes

Yep. Yep.

guys. sense. All Thanks, perfect Okay. right. Makes

Operator

Thank you.

with Securities. Pat question JMP comes next from Our Walravens

your with proceed may question. Your

Pat Walravens

Hey. thank Great, you Hello. and congratulations.

what how how different much So, for or mentioned Archie of of Can level is sort just high are U.S. – your – the is Europe can terms you talk than in the can the – retailers access European U.S. long-term? it to how the Europe access the at And European to of points you having retailers. much you be a of you guys? and wanting suppliers wanting business key sort today

Archie Black

business, So, parts Pat. the of two different

get That The retailers. into much productization are we suppliers and to very many utilizing marketplace. or everything – the our And think I first of is help an global. our else is American-based on actually large European U.S. North the more similar more us analytics, to it's market

far as complex think dynamics I its is each own in sometimes each very as it's because little more market. fulfillment, a different market country with

don't would XX%, long-term, think a percentages, would companies the the be think size other meaningful like I it compared of -- in know could be I I the XX% you of Europe the long-term think I but the most business. be a specific can percentage U.S. mature state. we with in

Pat Walravens

we And where are today?

Kim Nelson

just today. is than and small overall of revenue portion a international XX% our of less So Europe that -- is

Pat Walravens

you. Great. Thank Okay.

Operator

Thank you.

from next Rhee comes Van Jeff Craig-Hallum. question Our with

question. with proceed may You your

Jeff Van Rhee

Great. questions. the taking A couple for me. for I'll congratulations. add Thanks my

think just level. high first I

If you look primarily at U.S. the international in of today penetration XXX,XXX addressable. TAM, is I think, you've the US$XXX,XXX, talked But the

mentioned you gave the numbers. and think I

to XX,XXX. close You're

number the you displace the in you've in is to already the might specifically have the about of what So captured? ones that the than And suppliers business. of different think remaining question on size what's average win connections to I $XX,XXX remaining TAM U.S. it

you U.S. in the TAM talk would? the about Just if remaining

Archie Black

Yes, it's to similar I the other XX,XXX. very think,

I really different to customers; X and campaigns of lot we're one, done think they're start-up doing have They any those is they I long retailers quickly. smallest types the EDI. community times XX and that software. a business of getting pretty Then would a A not other have that starting perhaps very X to from X out just are really EDI for customers where the say enablement to people the can period piece of go legacy two time.

your to -- when example the I is you for the -- to be -- supplier them we've They more nobody they that do see less we've that XX environment the they systems. business time dropship obviously they're change. natural to more the and of be what integration percentage change seeing -- likely seen if change or make not a and to or the XX, an think ERP your it they're are When retailers retailers. or the going shift. is acquisitive realize best get stick and to that be making high -- adding start going are also you're software into less time with XX, is changing, a they about when brand-new to legacy investment if and retailers to a their has software if legacy And It's starts will a a

Jeff Lee Van

In are remaining in size general, existing larger the of than customers? would base smaller or you size suppliers and say in that the TAM addressable

Archie Black

you would it's and just say similar. really little the in larger just towards smaller pretty Commerce public a history if I XXXX, look we're at servicing spent when the Probably suppliers. -- went we smaller because of SPS

we have at large. we've than longer So that been mid been and

Jeff Lee Van

just Great. jump it. for If the -- the million. then Can on there? from talk usually me just $X And on $X.X Kim million looked than more side. non-GAAP you linear to up the Sequentially pretty about the million I that. $X.X last substantial R&D runs R&D at Got

Kim Nelson

Sure.

quarter. So the has of R&D anywhere been a given R&D just from X% but time take give reported non-GAAP, the over year not to all-in as or percentage R&D around -- the the so XX% or revenue the

and an help that's tech We by and laurels. our sort be something on continue and see going rest correct. that's talent. not to did You're there that's hire And to on to great our us forward going really really driven products of ability as uptick going attract we our focus some to

be our make some that experience fabulous our continue products. into making to modifications and to overall to want want is customer sure We we

quarter, closer that you X% strong a to see still related. So primarily but this within recruiting hiring and Again, we XX% of really that had range in XX% into translating to headcount R&D. about quarter about the

Jeff Lee Van

you. Okay. Great. Thank

Operator

Thank you.

from Northland Securities. next Klasell question with comes Our Tim

You with question. your proceed may

Tim Klasell

I'll as Yes. well. congratulations my in throw

next XX% Obviously, questions. for initial XX% growth. thoughts quick two EBITDA Just the revenue year growth

some getting we're sort we've bit little Should of as we been that for years? got on different our there next expansion obviously planned last want might Thank of maybe seeing building line a aware you. models you couple the just something there. to So might Or you've what for is that's margin year? be of trend

Kim Nelson

Sure.

And So as were years. the if in the XXXX to that is rate efficiencies -- you of in of to saw a of lot marketing, what this margin bit higher you seen that look call. a expansion of and form margin XXXX well come on sales that -- than was you had about as at that earlier it through a talked that that lot the expansion due I prior little in some

what view view the that and modeling top this but purposes detail we've at of is company's So, our point, line high-level not line. the to provided you for bottom think have just how about

that is we're of on at specifics line point. this not something commenting line by The

to to scale cetera. see primarily opportunity term time of the revenue really of -- going percentage longer of sales we we But think all for as outside R&D products, be as sold, R&D, do continuing et technology, something aside, as to to continue cost in of our However, line that, conception is G&A sort and opportunity a features see we in of in over this well time. were we goods marketing with items in invest

Tim Klasell

this that the but product, you you. again trend touch And this did dropship late, quarter? jumped the a quarter? the just good. it that some of into standalone the call products, In movement seemed just how then did comments do made I quarter last to How Good, better. Thank a that Okay. on do

Archie Black

break continues times, continues But of to don't it's traction. that program. It -- a Yeah. part be get of bigger And it lot a out. we to

sales We it's retailers, continue of important part and to go-forward an our strategy. get meetings with

Tim Klasell

you Okay. Great. much. Appreciate it. Thank very

Operator

Thank you.

next comes Mark Our Schappel from question Benchmark. with

your proceed question. may with Your

Mark Schappel

outside your platform? expect you job Thank to my with over several for those they consumer of and taking Archie, starting with question had to core move MAPADOCs, respect sectors if all and customers was you of Hi. your customers goods. quarter. the you, of I on nice wondering to retail

Archie Black

the we plan centric, customer we So, period is run a for long from a which time. standpoint, way very customer our of being business on

we remain fit. customers have, of those doing customers to to they But make business the as have Commerce SPS the family. options the those see aware of well that will other want now they they're So, part ability all

to Commerce. customers. to we're the with there And when long come probably the those a So, them. most likely they take we is that And think great to customers, time a over for sell long, going time, view those we product will appropriate have SPS

Mark Schappel

respect Great. And maybe then with that is MAPADOC-like be to view there of vendors even deals, are M&A dozens hundreds candidates? future or it your that could there out

Archie Black

well. We've there's people our culture had were to completely them. on and of knew acquisition positive that with them. quality was a else. that say relationship very SPS long-term around have were of dozens Commerce. I would they've MAPADOC and fact attracted people that built us strong We Well, their MAPADOC and things been business one everything It the We influence is bit all them for opportunities a the of the SPS us. know was of a little unique in of the part extremely the

a few, I So, but MAPADOC there's think bit little standpoint that was unique. from a

Mark Schappel

Great. us an Kim, then update on customer could you just Thanks. churn? And give

Kim Nelson

a XX% customer a dollar from and roughly No churn. about still updates half X% churn, around on or Sure. that

Mark Schappel

Great, thank Thanks. you. me. for That’s all

Operator

William question Thank Instructions] next you. from Blair. Our with Matt Pfau comes [Operator

your with proceed may You question.

Unidentified Analyst

around just for past this on have Matt. commentary in I is of quick past I question should had migration end a the quarter. David on the said your know CovalentWorks. This guys. customer Hey, finished that the

any there call customer smaller migration completed? were came on if And of So since like customer has kind that I size if of out wins was of that in over? customers wondering to that terms they things you'd

Archie Black

Yeah.

transition strong I a reaction has success story very been as and the in think customers it calling positive. it fact a that are We completed view very we the from the

base, platform them. again, plus cross-sells we've but very big some Moving good seen to the general. up-sells, and – acquisition been small in We've a like SPS off really feel just about Commerce a there for from some has world-class seen a

Operator

Thank you.

Gearhart question next with David from Our comes Analysis. First

You with question. may your proceed

David Gearhart

you Hi. Thank Good taking afternoon. my for questions.

a You stable the the sales team that among wanted your business and and ask, add the the sales churn as roughly than and of your marketing has churn been just productivity marketing about and past bit grows. the how team to little Just is over within post better team? the talked the needing stability changes? the Is wanted time, in I and commented. it team or to

to little like bit do on international. I'd a then of follow-up And a

Europe mentioned growth among side. and had the customers on You analytic

of Just us if color just general? additions on an how the from give Thank portion that could That's international And for in is just me. are international it net standpoint? addition you some you. wondering trending

Archie Black

Yeah. turnover the slightly down past. from is sales in The

team. we think talented It's strong team. have I a stable a very

I thing think a tomorrow. sales the training, today, we phenomenal capacity only have capacity developing but not have capacity job -- one current so and that for that the is does have we we're organization the for

that. good I feel think really about I

international, we about Europe good feel going really where As we're as far and there.

David Gearhart

me. for you. That's Okay. Thank it

Operator

you Ladies concludes today's this and for gentlemen, conference Thank participating. call.

disconnect. now may You

SPS Commerce (SPSC) 24 Oct 192019 Q3 Earnings call transcript