Welcome, everyone, to SPS Commerce conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. At this time, I'd like to turn the conference over to Irmina Blaszczyk, Investor Relations for SPS Commerce. Please go ahead. Thank you, Leonardo. Good morning, everyone, and thank you for joining us on today's call to discuss SPS Commerce acquisition of SupplyPike. Before turning the call over to management, I'll read our Safe Harbor statement. We will make certain statements today, including with respect to the acquisition of SupplyPike, expected financial results, go-to-market strategy, and efforts designed to increase our traction and penetration with retailers and other customers. These statements are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to our SEC filings, specifically our most recent annual report on Form 10-K, for a more detailed description of the risk factors that may affect our results. These documents are available at our website, spscommerce.com, and at the SEC's website, sec.gov. During our call today, we will discuss Adjusted EBITDA financial measures. In our press release and our filings with the SEC, each of which is posted on our website, you will find additional disclosures regarding these Adjusted EBITDA measures. With that, I will turn the call over to Kim. Thanks, Irmina, and welcome everyone. Thank you for joining us on short notice. We're excited to announce the acquisition of SupplyPike, which expands SPS's product portfolio with automated invoice deduction management and prevention. SPS acquired SupplyPike for approximately $119 million in cash, net of cash acquired, and $87 million in stock. The transaction closed yesterday and will be reflected in our Q3 2024 financial statements. We expect the acquisition will add approximately $3 million in revenue in the third quarter of 2024 and $8 million in fiscal year 2024. We expect a negative EBITDA impact of $750,000 in the third quarter of 2024, and a negative impact of $1.5 million in fiscal year 2024. For fiscal year 2025, we anticipate the acquisition will add approximately $25 million in revenue and break even in Adjusted EBITDA. We expect recurring revenue customer count to increase by approximately 200 and anticipate wallet share to increase by approximately 350. Lastly, we will have an increase in amortization of intangibles. However, that amount will not be finalized until the purchase accounting is complete. We will provide that preliminary figure when we issue our third quarter financial results and provide updated full year 2024 guidance in October. With that, I'll turn it over to Chad to discuss the strategic elements of the deal. Thank you, Kim. We're excited to announce this acquisition of SupplyPike, first of its kind SaaS platform that provides ongoing monitoring and management of invoice deductions to recover lost revenue, along with the information needed to improve processes and eliminate deductions in the future. Let me provide a bit more context about the problem SupplyPike solves. To ensure successful supply chain collaboration, retailers often establish processes their suppliers are expected to understand and execute correctly. In some instances, when they get the process wrong, there can be financial penalties in the form of invoice deductions. These penalties are sometimes assessed incorrectly. For suppliers to recover the lost revenue, they must find proof of the error and then dispute it in the correct way. In addition to helping dispute incorrect deductions, SupplyPike can help suppliers find the root cause of supply chain errors, triggering those deductions and fix the problem for the future. Without access to a platform like SupplyPike, there's a manual, time-consuming process that's often unsuccessful. SPS strives to help our customers be more efficient in their collaboration with trading partners. With the acquisition of SupplyPike, we now offer an additional way for suppliers to understand and improve their ability to meet their retail customers' expectations with automated process monitoring, education and improvement, and dispute resolution capabilities. By combining SupplyPike with SPS Commerce, we are excited to offer our customers and the broader market the resources needed to reduce supply chain missteps and strengthen suppliers' relationships with their customers. We believe this opportunity expands our addressable market by more than $750 million. We would like to welcome the SupplyPike employees and customers to the SPS Commerce community. We believe we have a large global opportunity in front of us, and we remain committed to delivering leading supply chain solutions to the retail sector. With that, I'd like to open the call for questions. Thank you. We will now begin the question and answer session. At this time, I would like to remind everyone, in order to ask a question, press the star followed by the number one on your telephone keypad. If you are called upon to ask your question and are listening by a loudspeaker, please pick up your handset and ensure that your phone is not on mute when asking your question. We will pause for a moment to confirm the question and answer roster. Your first question comes from Scott Berg of Needham. Please go ahead. Hi, Chad and Kim. Congrats on the acquisition here. I guess I have a couple different questions here. I guess on the strategic side of this, Chad, does this get you in or help you work with different suppliers than you are today, maybe a class or category or size? And then secondly, as I think about some of the new Gen AI use cases and technologies out there across the universe today, I would assume those technologies would apply to a technology like this, as you're reviewing, you know, words and data on an invoice and comparing it maybe to some other documents that you have in your organization. Can you help us understand if there's any use of these technologies within this acquisition, or is that something that you're likely to maybe augment with that going forward? Yeah. Thanks, Scott. Yeah, we really have quite nice customer overlap in terms of the ideal customer profile for both the Fulfillment side of our network as well as the SupplyPike solution. There is sort of a very small customer that may just not have the volume of invoices with a particular retailer where SupplyPike would not fit. But in general, there's really good overlap in terms of the customer profiles for both solutions. In terms of the AI side, you know, the real kind of secret to the SupplyPike solution is all of the work that's been done to understand the retailers' compliance programs and build those rules into the software platform. And that really is what has differentiated and allowed SupplyPike to lead in this market with really offering the first SaaS platform. And going forward, just I'd say with all our products and all of our operations, we do think that there's opportunity to apply more AI-based technologies, either to the products themselves or to the processes that go to onboarding customers on the product. And I think that applies to both our Fulfillment product and SupplyPike. Understood. Helpful. And then, one follow-up question is: how should we think about this product being priced relative to either your, you know, Fulfillment or Analytics solutions, which tend to be priced by retailer connections? Is it a similar type of pricing model, or is there, you know, some other mechanisms and components there to be aware of? Thank you. Yeah, it is a similar pricing model in that it is scaled by the retailers that you're supporting. So the more retailers you use SupplyPike for, the larger the price would be. The other scaling factor in the pricing model is the volume of trading you're doing with that particular supplier, so the invoice volume that you have with a particular retailer, and that tends to be a good proxy for the number of deductions that you'd be managing in the SupplyPike platform. Congrats again. Thanks for taking my questions. Your next question comes from the line of Parker Lane of Stifel. Please go ahead. Hi, this is Matthew Kikkert on for Parker. Thanks for taking my questions. You mentioned TAM expansion of $750 million. Any detail there would be really good on how you are thinking about that TAM expansion and how you got to that number? Yeah, the TAM was arrived by looking at the number of suppliers to retailers where this solution is applicable, and multiplying that by a subscription fee that would be there for the SupplyPike solution. So it's really looking at the applicability of suppliers to retailers. Okay, got it. And then secondly, how might your go-to-market motion change with this deal? Will you be selling this separately, or is it pretty easily integrated with other solutions? Yeah. So, it's because it's very applicable to SPS customers, and initially, we'll utilize the sales expertise of SupplyPike. There is quite a bit of expertise in deductions in the go-to-market and the selling process. And then over time, we will reevaluate sort of the approach in terms of the potential of having sellers sell both Fulfillment and SupplyPike, but initially, we will have separate product experts on both products. Okay. Thank you very much. Congrats on the deal. Thank you. Your next question comes from the line of George Kurosawa of Citi. Please go ahead. Hi, thanks for taking the questions. Yeah, maybe just to start, kinda, any color on kinda how this deal came together? Was there any kind of existing relationship, and, yeah, just how you kinda found these guys? Yeah. We've been, you know, being in the retail technology ecosystem, we're aware of a lot of the other providers. And then through a lot of work that we've done with our supplier customers, we're well aware of the challenge they have with invoice deductions in their trading with retailers, and we kind of put that together and found SupplyPike. Now that said, it was a competitive process in acquiring this company. Okay. Okay, that's helpful. And then, maybe I think some of the synergies you talked about in terms of kind of customer profile matching. I think those make a lot of sense. But maybe just anything on the product side in terms of, you know, are there kind of any, you know, product synergies between Fulfillment and this offering? Yeah, there are. So, you know, some of the data that is required to pull into the SupplyPike platform to manage this dispute process is available on the SPS network for customers that are using the SPS network. So there are some opportunities to pull in information that's already across our network into the dispute process in the SupplyPike SaaS platform. Makes sense. Thanks for taking the questions. Your next question comes from the line of Nehal Chokshi of Northland Capital Markets. Please go ahead. Yeah, thank you. Joined the call a little bit late, so you may have already addressed this, but, what's the standalone growth profile of SupplyPike? So when we think about SupplyPike, they were actually growing a little bit faster than us. A lot of our prior acquisitions, we've acquired companies that weren't. They were pretty slow growing. This one, we feel great about the product offering, and also it's an asset that's growing slightly faster than we are. Does the $25 million calendar 2025 addition include revenue synergies already, or that's just what they would have done standalone anyhow? The guidance that we've given for this year as well as next year reflects our expectations of the business with us owning them. It is, it's our estimate versus a standalone estimate. Got it. Thank you. And then finally, a little bit already addressed, but when we think about your, I would probably say a SaaS $5 billion opportunity, and then you add this $0.75 billion minimally, you know, you do a nice job of disaggregating that $5 billion between 200,000 customers and $25,000 ARR per customer. Is it fair to say that you expect that, SupplyPike, does not address that full 200,000, given Chad's commentary, that it probably doesn't apply to the smaller customers, and so, how many of that 200,000 does it address, and then does it address additional customers beyond that 200,000? Sure. So great question. So if you think about this product offering, you can think about it, it really hits in our supplier base, so it's within our sweet spot of suppliers in the retail space. However, the product is targeted more towards, I call it, our mid-size level suppliers. So to your point, this isn't something at this point that we think would be targeted to the small size, but in our mid-size supplier base, this is where that product would go after. Okay. Thank you. Again, if you would like to ask a question, press star one on your telephone keypad. Your next question comes from the line of Dylan Becker of William Blair. Please go ahead. Hey, guys. Congrats here. Maybe Chad, this kind of seems like a similar theme around performance optimization and visibility, more so supplier versus retailer, but similar to what we saw with Traverse. It certainly seems to be an area of getting more mind share. Is that the right way of thinking about kind of what SupplyPike can provide here? Yeah. So, I mean, overall what we're trying to do is help the collaboration between trading partners in retail, and part of that collaboration is the supply chain performance. And so with the Traverse, it sort of addresses the measurement and performance of the vendor community for the retailer. And then on the SupplyPike side, it, it's sort of the other side of that equation when there are penalties and deductions. It really helps one, that supplier identify was that a correct error in deduction. Often, you know, we find about in this industry, about 8%-10% of the deductions that are out there are actually erroneously applied and can be disputed effectively. But the majority of the deductions are actually performance errors of the supplier and their supply chain. So Supply, SupplyPike, helps them identify the root cause and then be able to resolve that. So both products are working at this common goal of improving supply chain efficiencies in the retail ecosystem. Okay, great. That's helpful. And then, Kim, as you kind of called that a move to the mid-market, how should we think about kind of the, the mix shift, if you will, the runway for monetization within some of these larger SKU or these larger, cohorts of customers, and maybe now having more of this capability unlocks the ability to continue kind of that, that trend or that shift upmarket? Thanks. Sure. So when we think about the customer, it actually fits right within our, really our existing customer base. It just now is an additional product offering that we have that's gonna complement the Fulfillment for those, suppliers in the, again, more of that mid-size level supplier. With this transaction, it'll add a net approximately 200 customers. However, this business as a standalone has approximately, 500 customers. So you already get a sense that there's a fair amount of overlap, within our existing customer base. Okay, great. Thanks, guys. Ladies and gentlemen, there are no questions. That concludes today's call. 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