SPSC - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the SPS Commerce Q2 2020 Earnings Call. At this time, all participant lines are in a listen-only mode. After the speaker presentation there will be a question-and answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Irmina Blaszczyk.

You may begin.

Irmina Blaszczyk

[Towanda]. you, Thank and Commerce everyone for us joining Good Quarter thank XXXX SPS Second Conference on afternoon, you Call.

of to efforts results, of We risks will differ respect strategy uncertainty and traction financial with pandemic and materially. these with These of note Please retailers are opinions today, projections increase and and and go-to-market actual uncertainties other our penetration that could that impact could note reflect in make certain to from future SEC to performance revise documents number website regarding to our financial results statements the results forward-looking statements any today obligation this the differ we COVID-XX as call, only earlier our and Form available date website, and well cause to affect as via a on designed our to result particular that statements customers. or forward-looking including actual projections our statements expected We information, cause involve refer our forward-looking events materially of otherwise. projections. or and our of to X-K release update that of as filings, undertake results. the furnished specifically new our Form at sec.gov. risk we publicly SEC may our These press detailed at XX-K, factors a the a the spscommerce.com, more whether for and as results description no are SEC's our Please

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

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

Archie Black

Thanks, and welcome, Irmina everyone.

Before topics. to quarter I performance, like I second would two address review important our

to and condolences took First, I and time the all months to to our and blind a out stop would turning Floyd like like in and part be ago heart plague to the commitment that this employees inequity. hometown riots sympathy and the racial the all the as eye I while action is SPS systemic thank are that against would Minneapolis that ignoring of My began everyone diversity, Commerce and needs their of goes impacted in issues for My reflect our to to friends SPS more we the solution, injustice, murder been we embraced be bias, but George tragic Floyd's senseless affected event. following place communities. two tragedy police steps. take custody. that has on with George done, recognize violent with family, and has by we always followed that It of society.

regularly to and months, past the to During also a formed an meets discuss group advisory in all a community. members XX hosted intently I move impact. two each an we I of partnership, local as to $XXX SPS reform with the with business SPS In special forward recognition Juneteenth, employees black-owned make feedback a more urging listen session. their on businesses. of supporting employees and signed Together than towards company policing that how can discussions how pass lawmakers Minnesota their received letter I

step, country Minnesota's give our was in as amend education sure to process with is career of to has addressing scholarship us, on work for Kashkari what injustice program immediate for Reserve don't system. of underscores a normal. an we Reserve working focused The Constitution the the change. Page color, technology. making Neel need SPS wishing to I education. that a personally a pursue committed change. to right Justice started considered The SPS inequities return students is children in establish And real to are all systemic Minnesota’s am and Federal Federal to ahead making We Commerce the quality President, to in

offset issue second And industry, we we ensure to trading last end all was steady dynamics analytics. earnings transactions. the to of committed The and everyday able to of to we momentum markets, customers in Commerce Across continue SPS face softness remains continue ongoing driving continue which need. large to as The play diverse our call, the volume on outlined impacting is we which our see ongoing fulfillment, out expected. Enablement partners deliver we they're a to by network pandemic. retail essentials, across are campaigns

possible e-commerce fully across retail or We centers forces Shipfusion giving operated Canada, mission retailer's efficiency revenue suppliers purchases. sales, customer managed quarter, U.S. repeat a with in the multiple revenue we building the increased e-commerce retailers from the new service to to many businesses normal. to and stores, nervous has The brands fulfillment partner grew of requires shoppers the seeing automation, second COVID-XX provide. adjusted SPS XX% EBITDA XX% believe The recurring industry's sizeable evidence and make for their store. successful service operation. current million, and e-commerce ship navigate common retailers right shift our and XX% grew of best We're situation brick-and-mortar help an break means tools behalf that experiencing to brands the growth. the partner with nature on For To critical million. products seeing and and $XX.X underscoring stores, $XX.X about e-commerce for the retailers with joined and a shift commerce grew need a purchasing are Shipfusion. logistics, retail Both can the many who crisis

and stocked. by the partnered its manage retailer order Commerce Drakes inventory Drakes keep they Supermarkets, Drakes and and strategy directly a For provided stores. in to from need deploy supplied with Australia SPS wholesaler community suppliers example, EDI a shelves electronically to diverse being through with supply EDI an leading XX with vendor grocery to their vendor connect their visibility onboarding. a pivoted

perform accuracy. avoids order associated supply In delays to surveyed automation, XXX additional with SPS addition ship data this focused of and shipment the the efficient their proper and XPL manner. and on one to businesses ability it which what SPS responses fulfillment in providers customers task showed Earlier data, the was inaccurate and aspects do, and XPLs chain their the logistics hired on was asked cannot between without most EDI time. to the accurately take increase order EDI to costs entry. accuracy, party and year, from on their doing customers nearly working clients direct to be The would third use XPL XXXX data moving address to of with EDI. they to data fulfillment correlation thing timely in use a accurate or automation, The about Suppliers’ accuracy. improves responses XPL

the more keeping As the moving chain responsible trends. We today's latest are along XX,XXX SPS retail world's embrace supply and for for products empower to retail retail businesses. retailers, suppliers than network, solutions logistics firms

in to not teams they have passion. would to ongoing and Cities employees In have over action I'll our ahead. remain lives. #X do. that, in to Paul it and honored local we year have by the our we challenge our take They solutions turn numerous pack and am just to largest St. recognized Journal. this communities. businesses ranked to been the software have awards, Twin We our recently their Business also communities, for talent Our our summary, Kim for like I received and impacted firm committed With all make financial numbers, tech the but our have lead the results. progress was in development I SPS challenges the discuss Minneapolis thank our Commerce customers dedication and years to -- endured

Kim Nelson

a quarter quarter of number was of quarter revenue of growth. XXXX. revenue XX% Thanks Archie. year increase grew increased XX% revenue $XX.X to million, The XQ represented last approximately Revenue a our year-over-year. Recurring X% We recurring of this XXth over second customers delivered and year-over-year XX,XXX. total consecutive solid

up For approximately at X% $X,XXX. share was while QX, year-over-year its

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

repurchase X also in the of million shares quarter. We SPS

Now turning to guidance.

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

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

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

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

our current situation the of to impact dynamics continue the earlier, business. mentioned Archie As

closures, and possibility on pressure negatively continue We may and the pandemic all and taking which impact duration into on of that infections the uncertainties wave our the account around magnitude economic second of the continued activity. We're store also of prolonged impact retailers, the of have a would to bankruptcies, monitor business.

the of continued we year, softness to in remainder expect analytics. see the For

our However, network to and drive the fulfillment. ongoing continues across need for automation momentum

a these As with two guidance dynamics the quarters annual year, are our result, we reinstating XXXX. in given for remaining and

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

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

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

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

of earnings. GAAP the a net remainder model rate year, XX% pre-tax a on the on should For tax investors basis, quarterly calculated effective

mission resilience retail the model, adjusted SPS on and confident pandemic summary, to magnitude operating supply partners economy. term I'd the With industry like Given predict ability open of the continue With is cloud-native our and automation. the our the leverage, duration model, to and strong our cannot history of Commerce our chain for our the solutions business need its to challenges target of underscore our that, critical to impact But in questions. operational EDI we growing and our SaaS provide and XX%. remain customers, community. our well In support to long the achieve call faces and positioned we EBITDA of the

Operator

first William you. the Blair. Pfau Thank [Operator with comes from question line Matt of Our Instructions]

is line open. Your

Matt Pfau

Hey in taking guys, challenging environment. a thanks quarter And for nice question. my

than -- in in you the So obviously I guidance. you guided wanted obviously to your and reinstate to, enough just did ask XXXX to on you quarter the business have better confidence

giving that's just time about your guidance obviously, data what's issued And data discuss confidence you what of just XXXX making can in to earnings the you again? have maybe good feel can discuss to points So you saw points maybe release, you months relative of those guidance. but reissue three issuing sort the more you you last you

Kim Nelson

Sure, Matt.

And takes. three a an And you some months fulfillment have seeing what we area call. that our earnings quarter. campaigns that online. the point, side, products around more electronic your different source retailers puts we recall do see So were they become and of forward gave And trying to may last ago, that's moving the as we we have doing from on were there, than past data quarter carry well as said are enablement in working to community more more that did different as and suppliers in we from more to occurring commentary

softer We bit that a said anticipated we also forward. also that did that carry would be analytics and

in we We may there. the the You we're I and happen churn. happen something increase what future, bankruptcies closing. still in potential on may we know know say of that still happen last the that churn that to that store and going that to talked something and did what magnitude duration of recall -- we was what's in But there. not That, is about was quarter. don't one, depending or the see really an we going on would pandemic means that also didn't just the to in or bankruptcies

nice that months after point. quarter. you're than for left this only really that have the predicting now of knowing year, the we're next And less then However, into we days six XX visibility

being what's give for able we've that, the and we as we pipeline guidance So color annual in that there like and the belief our that results next to the as well of restate felt because seen guidance the felt opportunities the in of quarter. comfortable was enough

Matt Pfau

that. Great and quick just one follow-up on

did the a So But results churn, did much the about is side, that perhaps the start impact it of the meaningful how customer account sounds overall churn obviously, churns for relative you on some the to potential guidance? the like think on together put in you the pickup less year for year. when it or in your fourth quarter, you

Kim Nelson

Sure.

would quarter a impact of in impact So is into recurring your way revenue relatively to a in, the QX, the churn say, because point, more works, the significant be the impact nominal XXXX. larger, should increase much

the into we of pipeline the this established what year, for well as took uncertainties as churn. seeing we some remainder in such account as we're when So expectations our

But it's be So that, the the we account. have impact into to would compared nominal point, your taken year to in that a that this following impact relatively would year.

Matt Pfau

great. lot, guys. a Okay, Thanks

Operator

you. Thank

from question comes Needham with & Our the line Scott next of Company. Berg

Your line is open.

Scott Berg

e-commerce and can in about Kim, is situation. of good you guess little on your here. all to your Archie, step-up taking two drop We there arena? a benefit in solution here particular? Did Archie certainly in given me. any congrats terms that quarter ship a customers quarter questions current bit you for the Hi, a business meaningful comment maybe see potentially know in seeking the employ I

Archie Black

Xx continues pre-pandemic. what It to be drop Yeah, I volume to -- areas, our think Scott. continues was Xx, ship it there's two

what is we've seen shift of stick. But looking a surprising, massive and both will believe e-commerce. retailers solutions. a seeing have that, portion and drop So -- so ship to not substantial suppliers we that you're we And seen for

So we've the a And [inaudible], in getting as trend. seen tailwind. it's a continued been that

Scott Berg

Archie, a then throughout were maybe Or difference? saw strong, QX Got perspective, But they I enablement believe, know and the the trends? in with on of there campaigns campaigns line the called historical of call, June, out a from in maybe you were example. what customer kind month in of the trends meaningful commentary enablement quarter, May was I had follow-up being Costco, you it, helpful. April And with especially on

Archie Black

we a in one relatively enablement two strong out you no, enablement Remember, quarter. roll a or earlier. quarter campaigns that were Yeah, had sold that quarters

them. XX, and realized And XX we need supply deer pandemic, were continues headlights. automate the quarter, bit the enablement little as as [inaudible]. saw sales to and early a into of be are I need had recognizing, are I to a And but and -- the things separation all got who But there's to then think move positive. campaigns are So accelerate, days, between discussed we're people some and campaigns and do closing to people forward. longer-term the to actual the after we customers in that cycle, we positive, again, who what And early those effect some economic we in a think want and trying indications enablement previously, a the chain rhythm are

Scott Berg

thanks and for Great, the congrats questions. taking

Operator

you. Thank

Koji next comes Ikeda with from question Our Oppenheimer. of line the

line Your open. is

Chad Schoening

of touch This versus Schoening Koji. pretty is disruptive a this XXXX on kind period. taking question. Obviously, of is Chad for the Thanks overall back for the Wondering if technology today on resilience you in the your period? could

standpoint Thank strategic So more kind for versus curious could retailer from a a make that has hear what then? technology back changed your tech you. of now to

Archie Black

can And is tech are everything we XXXX, infrastructure when $XX infrastructure was our technology I scale a Well, where a One, were the just has business, like XXXX, number strong also things. show smoothly, to seconds. periods And I will unbelievable. -- we up this, would needed team think have to within times say, it world-class best-in-class. infrastructure have we do extremely infrastructure, compared going literally we we probably keep of of everything about or million with but ability, changed. but our down clearly during

day. and in more looking companies -- scalability is changing have the this sales reliability, operate the think that become I can and the sure night they And think and the can I strategic solution strategic the of make to challenging are suppliers cycle. advantage during dependency then a a times, So as that

Chad Schoening

you. thank Great,

Operator

you. Thank

with next Stifel. Tom the of Roderick comes from Our question line

is line open. Your

Tom Roderick

your Archie, the thoughts issues. thanks on for And Archie, Kim my question. I social Hi, appreciate taking and

involved. your some well done community, proactive get measures taking on fact, have In to

So a thanks I of guess for that. taking question. picture kind big type of

are working their more those real-time What fulfillment. in they it of the towards, doing the even with lot that supplier having in look to, supply and multichannel what are you your that in-store chain from are retail way going you're e-commerce, here, way And over e-commerce As to a their partners, does proactively doing basis pivot to and the the hear to manufacturing have selection how we're your fulfillment impact pivoting coming at we regard? to But own when love things are doing opportunity facilities, what disruption, they all that taking that the and with call of partners? they're opposed then said, okay, it's just ahead retail get fulfillment you factories them now from it? a terms would partners in get orders to longer let's like to just as fulfill discussions

Archie Black

number think that the and operate it us some affect in their cases, can takes some way I the that Tom, many does the that a Yeah, the experience, they don't. greatly supplier. affect consumer of not but Remember, retailer things, affect actions with

of For do instance, of work pickup, suppliers. discussion not countries worried of around lot know lot to levels, China from more their inventory and they're the also we're figuring suppliers. they We're that. they how does suppliers of out about tax discussion the source and of the seeing a with affect discussion with seeing affect to in-country, repercussions resiliency a delivering that. as from stores way their and business speed Curbside lot other that, the That doesn't wanting with how around a

So to stores to more we're inventory inventory need to But and also and suppliers. center and ability a trying their we're at seeing they their that. about distribution lot seeing their much really of in the retailers think shift of the think holistically, in

seeing ship. So that, driving and of a lot that's more we're drop the

customers, with and I profitably more the think drop front much right the as a now. So retailer, keeping not ship, the experience, is center that customer allows and perhaps but

Tom Roderick

relative sector. to analytics the comments and some just the concerns then And relative of to fantastic. Yes,

in us it So pretty there and be worry sort coming retail of you impacts recover of refresh decisions to as are would still of a doesn't looks would that analytics analysis but where point-of-sale it the bit the to those about more if about? churn might you is your sort purchasing this can again, how and and seems relative holding what from? Because, in there in-store technology like worry kind you traffic like well little holding perhaps

Archie Black

now you more heavily, there's think than I And I that case. that this are before. it argument those could to arguments using some that strategic ever that is the make Yes, suppliers the think to is

that. seeing we're So

I is, are think make their where to that, are very see business, issues under we adjustments within do to people need scrutiny. as needing if cost things they much

they're a sure making does last had and it's baked use a good pretty fantastic So the are I few tracking analytics team years those think making -- our feel trained using and analytics we and much of then on we're job over If has about as customers heavily analytics, and focus customers. really their usage what can. retaining product that's the the the they they really into the operationalized our using operations, really haven't and sure product, as

believe is really a only So strategic very if a discretionary it's spent. it. it We you spent. strategic But using are it's

assume times SPS finding a not go are vendors shouldn't times. things under One bit across And just all just their scrutinizing normal And really we I scrutiny flight it, continue for would at all if in of it. uncertain this. saying, like customers that of challenging Commerce. paying during using we're this do and we're little And spent. the we is Things is or in a that's more general

that's natural I a trend. think So

Tom Roderick

don't quickly, if last mind. one Yeah, you just

shape you particular, pipeline the on how have along? of better quarter But highly of okay, typically the for sort pipeline companies a refill for you're top lot getting a And sales up? in would model. second the to of, you And efficient you of that? I what think bucket? is sales a have question do the are for how coming what I a than sort building But outlook is of generation to thoughts the feared. shorter had was hear know and cycle funnel love hearing

Archie Black

has again, I continue be cycles search fact are to better. things would is with feel say that's no, -- sales interesting, optimization Demand actually enablement shrunk not campaigns, Yeah, search, we paid up. those the the that but do we from leads or gone if the quality have equivalent, -- gen community engine

So to people ready if they're only buy. search

bigger ways, you I result positive positive, deals make end are a So negative. less -- the are pretty to and to supply need The that fact in a think back actually ways that come on some are they efficient. And We in that's output. the get automate to decent chains in starting more their realizing people the fulfillment, saw is that then prospects working some around. with same

Tom Roderick

really Fantastic, guys. Appreciate it. job. Nice Thanks, good.

Operator

you. Thank

line JMP question next Our comes from Pat with of the Walravens Securities.

Your is line open.

Pat Walravens

you. Oh, great, thank

questions. two So

bankruptcies, if back I the to ERP on of quarter, last pointed you and about migration. you all, and that negative Kim, Archie talked the side analytics First look to closures, factors

So in we what's interesting. talked data And about but must really on? on I'm bankruptcies closures going closures and migrations, ERP and on particular, wondering be analytics, your

you tell have not can percentage of network, for So the on business? open been stores your I mean, what

Archie Black

retailer going can impact it's I A retailer. don't a is suppliers. a there number number stores, retailer minimal biggest XXX unless for a goes if an us unless XXX of are have Pat. affects down, from is going to thing their actually business. you, out stores that retailer fairly of aggregate We by The assortment

So closures. depending seen it's category, on the we grocery, which haven't if

Pat Walravens

No.

Archie Black

significant That us. on have that of an a would not more but regionalized, impact probably it is because is impact

Pat Walravens

Great is and was that there anything ERP migrations, out? calling there worth

Archie Black

But seen more we down. mean past. we've seems to Yeah, -- I the similar more it -- that slow

trailing. we're getting some go there's we ERP deal and the they are Now sign a times where right when with new to sometimes, remember,

on. I know halfway there seen ERP do. now the to best they they're better migrate the depending they change when start how the through indicator major down going doing, But be we a will And or on probably implementation, yet. the than So system. you whether and haven't road, we're It's not early ERP the

Pat Walravens

then in all question just is -- was is in surprisingly, in are are doing other and office for SPS happening -- person? they've the Or back do Yeah, anywhere the so actually anything actually practically, sort they've of have been XXX% right. everything remote world, you my Commerce? people well, Yeah, --

Archie Black

our of open critical. offices we are Most are because

completely made we've that optional work-from-home are clear work-from-home and We is that very truly optional.

in there's given So of Minneapolis an X% in office, reason. day, the are any average on to of I you tell X% some employees would for

Pat Walravens

Yeah.

Archie Black

and great Perhaps a so which phenomenal, meeting, don't things, minimal. house. help to great at printing print have They come help or -- work pretty desk, they that have better they the been internet have Obviously, capabilities don't environment, big they some has in. their need they just a want our they it's

your So fixed. laptop help if go can issue, you to bar get have the you and desk a things

So there's but in, collaborative that. people I it's work not environment, a say wouldn't a few

Pat Walravens

Archie. great. you, Thank you, All Thank Yeah. Kim. right,

Archie Black

Thanks Pat.

Operator

Instructions] [Operator line Baird. the you. Thank Joe question Vruwink from of Our comes with next

is line open. Your

Joe Vruwink

getting be Great. if qualified, Hello, new know composition interest There's forward. seems everyone. on suppliers in I clearly actually don't end of was it curious like, lot in of thinking to the a seems sort that thing commentary you broadening. and about growth the of agree, I market going your

but less industrial still like So is boat. seems lot know, distributors, the you same of are on a end a grocery of markets surprise it

network. maybe new thoughts up maybe getting of realize customer but maybe you So contribution then that thinking, look comment, be there? you the of I'll on quarters would your But analytics, to seem wallet. different wallet customers kind just a few that's with pick hedge for And fulfillment the share your a audience, to was expanding virtue the the that obviously, the up? good going maybe I if begin for would And expectation conversation, begins these product, forward, if grow As that's it can wondering as that counts good maybe perhaps. and out,

Kim Nelson

Joe. Sure,

customer. as with to common them sometimes or but So impact different share -- they overall well of are grow growth. our we contributors in were able are business is revenue X% highly equal the meaningful to customer What quarter, community-enablement or customer recurring X% that maybe fortunate -- both fact what weighted customers have our biggest both In add continue past the campaigns X%, campaigns. what or per to X% than recurring quarter grow any given been that recurring is correlated to any our that wallet model, count revenue year, average given or that that we actually so overall. tends This the those to in that other or revenue count have is community as is to

when so see in amount adds. where customer of have you'll usually And increase a have we we our quarter higher strong community-enablement net a then campaigns,

that a community-enablement customer So -- tend smaller a largest when you was we quarter, look was very our from basis. was It campaign, the you example, very is happen look from quantity of to or adds be it for an for at sequential this customers year-over-year basis quarter. know, -- from was up get XXX, customers so if healthy, very nice you it initially. at a from What a it tends to absolute

been Some not doing EDI may of anything example, have for them, before.

customers, amount. get naturally happens huge And grows revenue time. is, those Some may, but not typically a from over we that over time, what then

than wallet then a more if contributors, is revenue. bit that a recurring less of extremely customer you're the the community little see great the But less that enablement. has have a what's are you little in share you both to quarter or a model on bit our count what is that inverse, and overall both if campaign solid our to business high about quarter, are community-enablement going So you sometimes important see have

forward, billion, ample addressable those total customers. And at more opportunity we market and for our that So to a getting is more from be to very will customers into belief translates that's believe long overall going which recurring more and continue term, both that we revenue. solid, revenue our strong more getting contributors least and have $X

Joe Vruwink

next last there's composition nothing seen the any there's or quarter of is in you've past, about And the what that the structure the basic going couple difference over to Okay. the what thinking about months growth? the of be how in about half in or just thinking your outlined say to you've two, of second forecasted

Kim Nelson

There's a average would relates significant the would and we or unique of or an customer somewhat the that as customer number. then quarter would back think bankruptcies, churn to If have to on nothing on we revenue an that impact increase get outlier. particular the happen an be impact per half of it the year in

Joe Vruwink

squeeze up expectations? line on in can worse was in. better bit your about there. ask to And your curious a relative went I I want collection did activity then whether if nothing see to alarming, sequentially, or but this I one thoughts more reserves quarter the or

Kim Nelson

Sure.

So the go of a the a as or nothing of accounts note our to concern pay, bit DSO balance sequentially, did really some little there. longer taking receivable up bit of just customers little nothing and

Joe Vruwink

Okay, Thank great. you.

Operator

you. Thank

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

Your line is open.

Rudy Kessinger

is Rudy back circle been a questions for on of my Jeff. to This to the pipeline but second. for have wanted Most answered just

Just was share seeing curious just downmarket, there's of if to maybe in can where relative more terms it you verticals, pre-COVID. anything what maybe you're upmarket,

all color any the share pipe. if you on could curious more -- what Just

Archie Black

activity, time they and have can I'd say to that's I perhaps have be a the within different thing business much different dynamics breath. so would much so say not only drastically companies take they different. don't that is, there

there of So likely the are discuss that wouldn't more But different it's and though, fulfillment don't they edges. things. say so and then drastically That's But things around heavily. some they're the I speed edges into have between some than slowing analytics. some prioritize the other we be down too companies and read might around other up capacity, as to

Rudy Kessinger

That's it for me. Great, thanks.

Operator

this the for queue. participation. your concludes today's I'm now gentlemen, Ladies Thank further showing no in questions call. conference and you

wonderful day. Everyone, have now You disconnect. a may

Archie Black	President & Chief Executive Officer
Kim Nelson	EVP & Chief Financial Officer
Irmina Blaszczyk	Investor Relations
Matt Pfau	William Blair
Scott Berg	Needham & Company
Tom Roderick	Stifel Nicolaus
Patrick Walravens	JMP Securities
Joe Vruwink	Robert W. Baird & Co.
Rudy Kessinger	Craig-Hallum Capital Group

SPS Commerce (SPSC) 2 Aug 202020 Q2 Earnings call transcript