SPSC - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the SPS Commerce's Q4 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' 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. Thank you. ahead. go Please

Irmina Blaszczyk

Good us Joanne. XXXX and you thank call. Thank SPS afternoon, Commerce joining on full-year fourth for you, everyone, quarter conference and

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

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

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

Archie Black

trading this results. industries results strong To business despite transformation. welcome disruptions across supplier supply adapt. expanding everyone. digital fast-tracking impacted operations future-proof year we operations, I'm accomplished retailers improve partners the around and implement the and are have full-year are XXXX forcing the Irmina, retail e-commerce the delivered fourth protect or environment. to In challenging pandemic proud and business space, of to all their what asking chain continuity us The incredibly Thanks, networks, quarter We capabilities. and globe,

acceleration EDI, dynamics strong In addition resulted momentum an in changing driving preferences, demand for consumer fulfillment. these in in to

For $XXX.X revenue the XX%, full-year, XX%. grew million. XX%, and EBITDA to recurring to revenue grew grew million, Adjusted $XX

in Our adjusted XXXX. XX% XX% resulted EBITDA XXXX, of consistent in on focus up XXXX, margins profitability and XX% in from in

suppliers leading increase to the onboarding helped through with order impacting to their We compared quarter, pandemic, helped their manage SPS US provided Costco, spender with Australia, meet electronically to fill notable retailers dynamics food XX% first doubled their stores. diverse distributor, same-day for to more on by the EDI our facemasks. up network our XX stores. US XX drop in form The North of EDI the a as to to in many recent their strategy was five stocked. keep XXXX. new have Throughout on We grew they to Drakes we Supermarket, fulfillment I'd strong out several Data supplying with pandemic of suppliers. chain, filled network service for space the variety started. to US new need transact growth shelves top the or speed-to-market its to net grocery achieved of Pet directly vendor engaged new in connect that industries. EDI the increasing addition brands, two Valu to and of consolidated Costco's stores the Pet expand campaigns the create call running across sector critical last products initial years. handle We onboarding own in retail centers, a weeks Walgreens, a able community visibility with a such directly drove In fourth also to deliver year, distribution network enabling partnerships, service financial weeks, in with and suppliers us and from to signing Masons their their than America, engaged and sourcing leveraged like a retailer example, during increase retail hours. to one they retailers, capabilities, when pet to transactions of Foods, with the orders full and highlights. multi-channel more Volume three-point through And suppliers can from grocery parent steady over Supermarket. new to add it relied products, Foods as We Drakes the pet system in SPS automate supply engagement a leading orders Foods and of inventory have SPS year-over-year volume the our matter on within We various demand. organic vendors new onboarding acquisition. worked customer XXXX, levels. With a critical able company products ship approximately We to was to essential performance, of vendors the EDI to than of excludes XX% which XXX enablement adds pre-pandemic throughout for quarter

growth a complexities, XXX other than and and resulted across efficiency helped convenience, grocery, fulfillment company in the runs SPS' retail increase and growing As more retail locations to [CoBonds] liquor, expansion for who Midwest. accuracy operational [Ph],

than company's demand order for automation business as also to with more We fulfillment implement Sweets, a producer, two Lily's chocolate order years. keep doubled in the up growing

on provide their fulfillment year, and across building we and leadership best Microsoft in solutions. to e-commerce SPS unmatched position December successful our for who operated more acquired support. brands have as expand forces of order of and Masons joined network. numerous leadership automation, market. to drop orders giving customers shipping buy SPS stores, extend ship multiple and and help our transformation, To Microsoft pickup logistical behalf Commerce's ship and in have that a SPS in in To embraced shipments for book Data shopping SPS online partner who introduced fulfilled ShipStation their U.S. ship drop has To we trading also XXX solutions, who helping in-store, last the Combined, the support centers with possible will system using retailers curbside Commerce fulfillment offer customers Service. methods, system themselves, the pickup, partnerships e-commerce through brands tools over our we operation. retailers complex. making Consumers partner, preferred fully-managed like expertise the Currently, digital In Carrier addition in fulfillment this customers the Shipfusion, community retail Canada,

Sage, our SAP, now, the leadership our years, have Microsoft. including segments, Over acquisitions market key across and solidified position Oracle,

to As we its for all remain our committed continue digital for our to their communities. to dedication enter transformation through We is and supporting the of positioned SPS like critical trading role efficiency driving we their our to well thank I chain. of experience supply the work XXXX, together customers in as retail improve company, to consumers. employees the e-commerce all partners and would customers, our

then in and expertise of our have of high-growth with over I the Ward to of our I'd sizes, that board Board than honored are the year. I'll leadership results. all across her November -- Sempowski appointment bring turn brands, perspective, retail SPS. XX roles financial unique the companies last one her future brings Kim we With influencing it discuss joined Before over and our highlight She call turn of like of to of to industry more Anne Directors. to Kim, that, and Anne to years to

Kim Nelson

Archie. consecutive growth. a Thanks, great grew revenue in quarter fourth of of revenue represented We QX Recurring year-over-year. EBITDA $XX.X this quarter over XX% quarter $XX XXth quarter. Revenue was a for the increase and quarter, XX% Adjusted our million, to increased year, last XX% million. had the

$XXX.X share was XX%. a revenue wallet customers revenue and X%. million, of increased increased to total year, year-over-year, recurring The the approximately grew XX% XX,XXX, revenue and increase, recurring number X% For

December a customers announced XXXX, network. in we which our XXX of Masons, the As acquisition to added approximately reminder, Data

Masons' transaction, the million. our $XXX,XXX added cash total the $XXX in XX%. with ended acquisition revenue of Adjusted investments financial and to the $XX approximately EBITDA Data approximately quarter We XX%, revenue is full-year million. Given timing that in year recurring grew the XXXX results. to Recall of fourth mix

be to guidance, turning Now, the range million. XXXX, to $XX.X we in the of million for to $XX.X revenue expect first quarter of

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

XXXX, expect in of be of EBITDA $XX.X we adjusted first the $XX to to million. quarter million the For range

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

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

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

For range per the of $X.XX fully to in the expect to full-year XXXX, diluted be we share earnings $X.XX.

outstanding diluted million XX.X approximately expect fully We shares weighted of average shares.

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

of million. year the expense be amortization We to $XX we expect approximately $XX.X And for expense million. depreciation approximately expect

accelerating XX%. fourth demand we open full-year For Commerce the to to leverage, margin shift to the GAAP for long-term XXXX increased With of model deliver growth we on EDI, e-commerce multibillion-dollar and driving across SPS that, adjusted tax questions. strong retail TAM, call a are pretax summary, calculated net continue results. while XX% targeting a our to effective about rate dynamics I'd should opportunities approximately In operating EBITDA the year, you like strong excited earnings. and With delivered quarter

Operator

William comes ahead, Instructions] go Pfau is from open. first Blair. Matt you. Your Thank from [Operator Please your line question

Matt Pfau

taking the my and guys, great for thanks questions, results. congrats on Hey,

the sort hasn't and product, yet. ask at When the your retailers mean on and chain suppliers, you rate list? the the to to happen? into of And wanted does based I product, supply on seems guess like commentary get recovered still that up back do that priority around again of anticipate terms Just investment on updating but higher fulfillment guess I in I Analytics growth when Analytics technology that

Archie Black

but valued is to choice way spend, fulfillment that's some to a Yes, where thanks, have discretionary spend. Matt. daylight. is you no seeing What retailers unlike use the the But you're We're purchase we a receive have you it, with orders. seen it highly do business if discretionary your going

the when spend particular not And that the they woods. is in of to confidence I but for Analytics, vision it, their a long-term think have pandemic. in when the phenomenal now. still think have confidence, the completely value really right the a feeling have ton when there's are out through of people biggest but again, confidence criteria seeing around using and people think But growing have level in of complete I we're it's confidence continue suppliers I it's

Matt Pfau

Got as it. And impact does or e-commerce of other? the increase product a in percentage or one shipping drop way that retail

Archie Black

It the really high inventory of It's value and but in stores, it's a value the doesn't. for higher visibility. some a

of have So matter negative, that would the other shift it's just priority ship, make the priorities. fulfillment we drastic to and the pretty a doing a it. going in higher And more drop and I and not how things months a talked it is XX been made shift about fulfillment, now say right what last has product they're in doing of as they're retail

Matt Pfau

Appreciate guys. it. thanks, Great,

Operator

Jason Capital. go from ahead. comes question next from KeyBanc Please Your Celino

Your is open. line

Unidentified Analyst

on Hi, taking [Ph] [Devon] for for Thanks this Jason. is questions. our actually

end customers talk just quarter, XXXX? their such that of First verticals and willingness seen customer engagement more one and you goods expectations I Have your of could terms about were to of and you your apparel. in of luxury were spend some challenged, improvement verticals sort any have in as of in the the that are what towards is these

Archie Black

putting to Yes, -- recovery. some events lot there we're of have a the you're selling if not of not I'm lot are going as and been seeing just high-end a clothing on obvious, very not suit anymore. there's that industries state people you hurt, yet There's a a mentioned, not are often But to.

think I down they're this those so in mode the continue hunker time. to more be and And hurting, at

-- verticals summer weak very closed, completely was out just off April is I started were their An around. they of courses in that they came other there busiest then turned last example golf, ever. and there's where think and year

vertical it's But slow. high-end luxury there's think by I some been shifts of think vertical. I been very the So

Unidentified Analyst

that in you. Archie. that's Great, quick your bankruptcies then XXXX? that's helpful, during change your on what one Thank and just expectations closures one And of are any and worth quarter the retail guidance churn, mentioning, for in

Kim Nelson

see XX% be We or uptick in consistent, not. bankruptcies an did on Sure, bankruptcies to Devon. The will be not in QX. roughly if an determined there it's an increase annual stayed XXXX in basis. or churn in an increase Still

Operator

comes question from Your Please Needham. next Berg from go ahead. Scott

open. Your is line

Scott Berg

and guess my Archie Hi, the of thanks Kim. data that? were years in data quarter, increase first great at to we'll traction for in Congrats XX% for all, in net the point, year. business, the taking before pandemic last interesting the think I over off the guys the this attract some three and any able new to say, of business of look start that around the on an some couple, thanks a with, I questions. additional customers point. the is I The customers differences disclosures as guess versus types of nine there of you're over XX months you last

Archie Black

in do think bright spot. had community campaigns, enablement a success and I a that I of number we Yes, there's lot was One, things. a the of think

overall I years. in few and think hold last the time back tailwind We've was sales of that take the in take gain A our we've years XXXX. we talked and away business best announced is us product industry, reflected drop momentum. which in the as changes that ship, usage really business. where followed to done four some to think with when success 'XX, investments us XXXX, and and tailwinds was the a XXXX, driving great what's over past for now digital part far years. foundation -- the that, the thing in really grown customer about laid it's one because a really think hold. pandemic. new a really of and the three, we've back in actually, restructuring we look fulfillment over product, with the we've product took things four generation fulfillment is help customer-centric our I strategies different clearly SPS new to have go-to-market that, really think But see the last think though, and a what clearly at marketing, happened more become that is our XXXX, lead about I I was I meaningful on started Scott, for that three, we optimize marketing in to there 'XX, is some in customers made of We digital the success not the And the we've the excited from and what but 'XX the pandemic, Obviously, to

Scott Berg

Super helpful.

up, how Do you to over in that the within seen opportunity? XX guess benefit any that I pipelines there strong kind forward that view do of a continuation of same kind XX So the last your How last you of step that, out you of of opportunities? months, pandemic view? the XX from Do you've nuance changes have that type were and maybe months take with you or or well and any is think going to impact nine months, it. positioned changes

Archie Black

in overall, well. it's think general, extremely I set up

I the important, I this only what drop customer, continue there is, going we're they forward. plays non-precedented have SPS come to highlighted e-commerce highlights to "Has continue and XXXX what But wherever of we year space. don't going will the go. be however levels question did think it?" omnichannel going the ship think the out of grow. for is we we're I to brick-and-mortar, And and be think think in growth that a But big will I as -- and the really to clearly

I that's standpoint, bit little advantage. entire business in a the from unique our think might and huge picture. a I indifferent And we're industry we an shift think little in competitive becoming serve bit but a that that back overall So, some, we're

Scott Berg

I in think give organic sneak I one the Kim, number If I Excellent. ARPU quarter. in of heard more you here, don't the kind

Kim Nelson

it Yes, weeks was the like in Data Masons acquisition just, happened in two literally QX.

there's very to ARPU, relates as nominal the impact was it customer. So larger the the

XXX Data added approximately So customers. Masons

well as the QX in reflected XX,XXX. customer that of see count you so as And full-year

Scott Berg

Excellent. in queue. again. I'll Congrats jump back the

Operator

Joe Please from question comes from ahead. next Baird. Your go Vruwink

Your open. is line

Joe Vruwink

disposal. when is in your have XXXX? more Great. drive I'd you you XXXX? So which all Hi, I imagine different in growth I'm could everyone. to be, gen maybe contributing, incrementally the you potential as any that there your Yes, lead wondering important outside are the but Can maybe mechanisms in guess contribution about think all characterize for

Archie Black

I our be the will channel new net Yes, most hard think and more but things even to acquisition. it's marketing well The Masons that a fact there clearly that driver, important The be business, question. increasingly campaigns are I are with is grown extremely becoming think enablement important extremely important. and and Data come channel. continues retail Marketing has important more

meaningful a adding on say I us hate three in it, but part always To within that of year, business customer long-term we our of think base, but customers the all standpoint, a predicated are XXXX. customers, excellent is that our relative of which our an given and I new did viability job all that then add to that's important. to sales new continuing in on So the it's any continued growth

Joe Vruwink

helpful That's Archie.

benefits order accruing come the an or match the there Does or that way about lag in on if up advocating any is suppose but happening regularity Just piece and potential see channel with ERP of automation to think delivery are tend related exposure cloud know the you that decisions to migrations SaaS What's on, by ERP? ERP, ERP the the specifically, the you least more timeline or acquisition ERP go quarter two, all some consider a was cloud in one I Masons the migration the to Data I this with do at of Microsoft, happens as next to to syncing the happens. vendors drivers are SPS? to right mode

Archie Black

ways. there's a ERP is of the other There right the front-end. an part leg. the slight there're they two We're SPS ERP. not That The are Well, we're Yes, make there just bundled decision. And times times where when happens. for ERP then as sale. implementation as long at is

exciting we we're oftentimes ERPs are they or in partners that then a bids. are business four once commerce. and for supplier's four that really they where off, there's different or buying channel as three, kick business What's three there's bring So two, where in SPS all now a is

natural. that. So I be than not think, laggard but in slight a typically will often we more it's And a

cloud-based, to If We with are you're we're system going -- a going about job that. move SaaS not obviously, to Microsoft, believe them. as the Data excited the And as we will of to move to of for a cloud. lifting well. software to your to an think do And behind going cloud-based one from to based you ERP commerce trail legacy a it's for moving moving well EDI be who's doing that's the Masons of excellent we're things I really we'll really heavy the have customers positioned

Joe Vruwink

Okay. very That's Thank helpful. you much.

Operator

Tom Your Please from next question comes from go Roderick Stifel. ahead.

line is open. Your

Tom Roderick

Kim. like taking be one earlier. this nature how question high and some and benefits getting for like to might weak. and of and to the New getting stuff chains the little bit I'm additive certain quarter from, have ask the Year. goods Maybe quarter how spin to the from. where they're question around that with seen can the the going the Hi, bit to luxury and and highlight then that. number grocery ultimately they're that around changing questions. perhaps mean, are hung end verticals of how enablement last you talk dynamic couldn't and up, pickup, supply you goods on little vertical about curbside were to a help Happy I'm driving campaigns, and a vertical, things things Archie. products my I Thanks Archie, Great. going back happening I convenience. foods that examples consumer go what's of you was of might a Hi, coming notice there a

way they might that customers way with the on role and Just changing you. the be lean their you

Archie Black

Yes.

be Walgreens, some to of XXXX things just retailers really supply suppliers, up be we a didn't their have Obviously, Commerce, retailers. suppliers then emailing to and verticals therefore existing, SPS new but not have partner to stress. partners, going EDI some to purchase saw on package that's inventory suppliers at And add you There's going and add efficient I center get to because be label with is set the be And you needed going as if don't distribution able think one thoughtful enabled the you're is the like your our going well under the like in like a whole -- it's end barcode alternatives. a haven't to extremely more up we and can at with suppliers where really suppliers, a product Loblaws, a onboard where we like quickly. order. is and out existing Costco, you when to already time especially can our a were

sales mean So QX did was period. we And different different happens, not the there to think dividends those, see in that some starting customers are QX organization and was but Juckniess focus of of people in some to think, were decent one retailers they did always I I looking -- I with think really had that particularly really practice the pay but again, and much things. we've to really the things of I pocket focus. was those territories in That the efficiency a sources. those grocery, whatnot still alternative on and as are period, that's that Grocery, our there. some highlighted for reorganizations of I restructurings well, not in the that aligned where put probably Dan happened and definitely

well. that's I the that's happened things one So think as of

Tom Roderick

expected. just crazy would you Kim, than grew have faster pandemic, grew And you the you thing guys helpful. middle happened the and a in really of that's Yes, maybe

start potential here there demand to at sales what of being the you out now the with support it you is? how acceleration the need as you think year pipeline a to this do about and sitting look So later, go some to the capacity motion market

Kim Nelson

Yes.

we last today, organization as invested sales sit quarters. we the have in think few over the I

we into very XXXX the capacity because of we sales good organization really So did think the good feel organization in one sales back mainly the is the of about going that hiring some the XXXX. of at that sales things And and that can is up the also so get to we know and more promoting training, They people from SPS within role for people running, the when from then which within role creates rope. they're Commerce especially more moving of junior I half a senior very, organization. already opportunities a

organization that is managed about really feel that as capacity really today. So well sit sales from the standpoint, good but we

Tom Roderick

Great. jump queue. the Thank you, Congratulations. guys. in I'll back

Kim Nelson

Thank you.

Operator

Your next question from Please ahead. comes from Schappel Benchmark. Mark go

is open. line Your

Mark Schappel

year. Hi, my and nice the question and on job thank a quarter taking you for

So, just And relatively two a think first on-premise on-premise on an had bit on question a wonder businesses, long that comment of recall on to do the now you've subscriptions? you that and a to stream month question just high you of a to here, correctly, had in take revenues percent Data if recurring little could better I earlier get if mix. how Charlie, base handle their building Masons it'll product bulk or their migrate your

Archie Black

they're where trail but our retail of we're that to the think better, going at think SaaS Data strength when to model, we're I think we really Microsoft. network, the on-prem Masons with, look at primarily the off, look and first at business it, business, utilizing look I the I transformation extremely gets Data we Yes, team at I Masons, the a as better everyday from impressed because people

words, the Microsoft and sell transformation moves other when premise, to to point, to to going us convince cloud-based, them in customer, customer that. them trying So from do the to as be pounding a opposed on that's

years. going doing I to mean, that's most think there'll I of history of years all think, has be, us think anybody I don't job But a of I on-prem think a great Microsoft ago, part this. for and period five had anymore. the on-prem at extremely has email email I over happen an

business. is for done And has this look Microsoft a a So at area what focus you as them.

spot it's, follow role a I playing which to here, think we're So good a be. is Microsoft

Mark Schappel

And then helpful. on an follow-on was That's year. you And The company was throughout here. just is that Thanks. question, for in in potential real something saw great. somewhat, question view? again, the a concern that mean on your based the earlier bankruptcies and for building last quarter, concern I Okay, retailer abated what one

Kim Nelson

mind increase the So QX in as in do season bankruptcies keep was see And QX. well. we that obviously, an in did Holiday not

So we in bankruptcies don't that out QX, increase we think we in to XXXX, an see necessarily the it not. as of we're didn't to see that yet. relates woods determined of be that Please, if still or

Mark Schappel

Great, thank you.

Operator

comes Our Please from from next question Rhee open. Jeff your line Van is Craig-Hallum Capital. go ahead,

Unidentified Analyst

now curious, or that that far? you you you've that really guys. maybe progress realize know curious Rudy This is been guys didn't and it's discovered into Masons, have for was on Data to going learned anything Jeff. thanks Great, months Archie, know, two far, come I about on I thus just what deal, so the has been

Archie Black

of talented that we it's myself I've the this team, that and some they've weren't an only years. the go we fit. we so I'll of that. XX Data think what good tell Masons, back, surprise, Data knew competed the we I against Masons, I earlier surprises, a That lot personally think the and with you culturally literally about I a people, because picked-up mean, which is would mentioned Because and do, partnered really because they can There the I seen extremely only relationships excited team is be piece been

on folks the employees that's everything about it SPS Data there. been Salesforce the going have excited was the extremely with think about embraced and have the know I feel the thrilled think, I really Commerce I acquisition, Masons acquisition, good and

Unidentified Analyst

they most, very But suppliers. obviously a it have with XXXX years very number I'm displacing, Great, their that that's helpful. call the solutions the kind of might seen as to just in verticals, guys you sort just curious, in with changes cohorts customers, strong cohort versus environment, for sort what's on, curious what of the last different to dynamic cohort year with have you couple retailers XXXX of the a compare that of you And respect guess of brought the then just past? very, be of connections this respect of to you years, I

Archie Black

it's generally the think overall, I same.

had we've think more I customers competitors. taken from

I net but position retail, extremely think I percentage think a was the grocery we positive, lot things compared was this if e-comm industry, the that look But higher e-comm, it's is It's is those omnichannel suppliers I strong, to our the do people not is slightly realizing the relative e-commerce the things e-commerce game. with which retailers a of logos, one the industry game. are to our little the when as I think retail, think we a I an think there you follow It's and brick-and-mortar probably not an new overweighted that again e-comm game. business year, slightly on these are follow from new is not strong. at of a a in bit stronger trends

You got and to that's right play all our the into games hands. feeds that

Unidentified Analyst

it. jump Thanks. the Very helpful. in I'll back Got queue.

Operator

Securities. Pat question comes from from Walravens Your go ahead. Please JMP next

open. is line Your

Unidentified Analyst

update think international And opportunity on you or Hi, taking about just you an wondering, could as [Mark] that? this much cross of border for [Ph] on we a for XXXX? I'm the after revenue is percentage how Pat. should so international Thank give for us my momentum question.

Archie Black

You're the cutting out opportunity? bit, was little around international the a question

Unidentified Analyst

Yes. Correct.

Archie Black

Yes.

we North America think see about think Okay. in it opportunity, think We different of areas. it, one. international as we obviously when When about the we

a would year, look the well. U.S., opportunities some higher discuss it the some did did, in others. international We there not especially were are it When grocery little it so than So we had Australia just, on but different got obviously the and I in we a in fashion at say strong and underperformed traction clothing and U.S., going I'm to Canada.

well So I think that bodes really that. for

continues the America be of Asia supply part to really North chain.

We continue plus that progress to Europe, then, meaningful analytics product as analytics, seem with didn't and trade see focused the the even seen, and Europe slow down. a we primarily reasonable war growth everything or on there, And to minus. have we've impact else

extremely were at XXXX analytics was in analytics. and we'll follow a that base, on geography, particular we in super off So that had bullish weaker in from small area, strong but back XXXX exiting that coming Remember it a Europe growth. in coming with XXXX,

was that weaker So following area analytics. a

Unidentified Analyst

so That's you Thank very helpful. much.

Operator

Please from [Operator comes ahead. Instructions] Nehal Markets. go Northland question from Capital Your Chokshi next

Your open. line is

Nehal Chokshi

Masons. Thanks Data even on strong calendar financial and congratulations 'XX, excluding a really

So, about calendar think gross you're 'XX excluding for Masons. had XX% XX% Data versus to Data calendar year-over-year exiting about I 'XX gaining Masons excluding

built what's expectation growth So into the here? decelerating

Kim Nelson

combined well. what So, obviously so in account seen the what Data into there we've XXXX as is company, It XXXX. our included incorporates in as takes Masons guidance

going to same comment the XXXX. or made to but had see determined, expect that increase account an strong, or there in we be the remain strong we there saw is Archie we've uptick fact fulfillment. that at if It bit that And that saw we into uncertainty it this to about So that's have we still a that into does It take to that we're not. some level on not talked relates call certainly takes momentum still account as do some in that also ship that little necessarily bankruptcies. drop

the expect So as it that remain don't e-commerce percentage occurred of be was of than that that expect piece increase, higher that in e-commerce, a to pre-pandemic. level. business increase will at of we But XXXX some it level to or relates we

Nehal Chokshi

That's And growth 'XX, far XX% ARPU in to growth you built great. to some to Masons? counter XX% do disaggregation Okay, growth between giving that's color helpful. Data as mind as versus for customer excluding then customer

Kim Nelson

of per mix customer quarter, our of recurring overall total how level healthy much we we So, both to growth. years, growth. we is going Similar a expect revenue, do the is revenue and drive our to then that to customer? how when gap recurring recurring announced prior we a results, revenue nice, revenue much average each then And provide

Nehal Chokshi

from Okay. you XXX. you to when that the Data but XXX And customers be Masons, mentioned going bringing then acquisition, I think you said were they that did

customers correct is Data that the last if added of in And weeks say So you? two Masons surprise did quarter? that it a to XX so,

Kim Nelson

was number XXX. around No. amount. brought The acquisition The same the

Nehal Chokshi

right. Thank you. Okay, all

Operator

no This you further questions. will have call. today's We conference for conclude your participation. Thank

may You disconnect. now

SPS Commerce (SPSC) 12 Feb 212020 Q4 Earnings call transcript