Group 1 - SPS Commerce Inc. is recognized as a promising investment opportunity among beaten-down technology stocks, with a 'Neutral' rating and a price target of $125 set by DA Davidson [1][2] - The company recently held a 2025 Investor Day event, where it shared insights on its product roadmap and generative AI strategy, emphasizing a high single-digit organic growth outlook for the year [2] - SPS Commerce has maintained a strong performance with 98 consecutive quarters of revenue growth, serving over 50,000 recurring revenue customers in the retail grocery distribution, supply, and logistics sector [3][4] Group 2 - SPS Commerce provides cloud-based supply chain solutions that facilitate the automation and simplification of business document exchanges and product data between retailers and suppliers [4] - The company is focused on long-term growth plans to capture a larger share of the expanding total addressable market [2]

Group 1 - The individual investor focuses on managing personal capital accumulated over the years, utilizing a diverse range of investment strategies including fundamental, technical, and momentum investing [1] - The investor aims to leverage the strengths of various investment approaches to refine their investment process [1] - The purpose of writing on Seeking Alpha is to track the performance of investment ideas and connect with like-minded investors [1] Group 2 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor are there plans to initiate such positions in the near future [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company [2] - Seeking Alpha does not provide recommendations or advice regarding the suitability of investments for particular investors [3]

Core Viewpoint - The article identifies the best beaten-down technology stocks to buy according to analysts, highlighting the resilience of technology stocks despite market headwinds and the potential for further gains driven by interest rate cuts and optimism surrounding artificial intelligence [1][2]. Group 1: Market Context - Technology stocks have shown strong performance, with the NASDAQ 100 rallying 17% year to date despite challenges such as trade wars and monetary policy uncertainty [1]. - The US Federal Reserve's decision to cut interest rates, with potential for two more cuts before year-end, is expected to further boost technology stocks [2]. - Investor sentiment is mixed, with some beginning to hedge against potential market pullbacks as equities reach all-time highs [2][3]. Group 2: Investment Strategy - The article emphasizes the importance of identifying technology stocks that are down more than 30% year to date, focusing on those with an upside potential of over 30% as of September 30 [7][8]. - Hedge fund sentiment is considered a key factor, as replicating top stock picks from successful hedge funds has historically outperformed the market [9]. Group 3: Featured Stocks - **SPS Commerce, Inc. (NASDAQ:SPSC)** - Year to Date Performance: -43.03% - Stock Upside Potential: 35.17% - The company has a strong track record with 98 consecutive quarters of revenue growth and focuses on long-term growth in the retail supply chain cloud services sector [10][11][12]. - **Vertex Inc. (NASDAQ:VERX)** - Year to Date Performance: -53.40% - Stock Upside Potential: 41.23% - Vertex is investing in e-invoicing and artificial intelligence to drive long-term growth, despite facing pressure to lower revenue growth guidance [14][15][16][17].

Core Insights - SPS Commerce, Inc. is identified as an oversold growth stock with a strong position in the retail supply chain network, which provides access to a larger total addressable market supporting sustainable growth [1][3] - The company utilizes network data to enhance sales targeting, which is expected to aid in revenue recovery and increase cross-selling opportunities [2] - Recent acquisitions have improved relationship management, leading to more customer interactions and upselling potential [2] Financial Outlook - The price target for SPS Commerce has been reduced from $173 to $166 due to concerns over slower growth among large customers [1][3] - The analyst anticipates a 2-point annual expansion in EBITDA margin alongside high single-digit revenue growth [3] Business Model - SPS Commerce offers cloud-based supply chain solutions that connect retail partners globally to enhance their operations [3]

Core Viewpoint - The article discusses the positive outlook for the stock market based on recent economic data, particularly focusing on inflation and GDP growth estimates, while also highlighting 12 oversold growth stocks recommended by analysts for potential investment opportunities [2][4][5]. Economic Indicators - The latest PCE report shows year-over-year inflation at 2.9%, aligning with expectations and indicating tame inflation based on month-over-month data [2][3]. - Strong economic indicators, such as a lower trade deficit and increased durable goods orders, have led to raised GDP growth estimates for the third quarter, suggesting decent growth in the mid to high single-digit range [4]. Federal Reserve Insights - The Federal Reserve should focus on underlying inflation driven by real demand rather than inflation influenced by tariffs, which do not reflect strong demand for goods [3]. Stock Recommendations - A list of 12 oversold growth stocks is compiled, which have declined over 30% year-to-date but are expected to have more than 30% upside according to analysts [7]. - The methodology for selecting these stocks includes using the Finviz Stock Screener and cross-referencing data from CNN and hedge fund databases [7][8]. Individual Stock Highlights - **EPAM Systems, Inc. (NYSE:EPAM)**: Year-to-date performance of -34.55% with an analyst upside potential of 41.68%. The company focuses on AI-driven digital experiences and has recently rebranded its digital agency [9][10][11][12]. - **SPS Commerce, Inc. (NASDAQ:SPSC)**: Year-to-date performance of -42.59% with an analyst upside potential of 42.93%. The company is a leader in retail supply chain solutions and is expected to improve revenue recovery through enhanced sales targeting and relationship management [13][14][15][16].

Core Viewpoint - SPS Commerce, Inc. (NASDAQ:SPSC) is identified as an oversold software stock with strong growth potential, supported by a "Buy" rating from Morgan Stanley analyst Chris Quintero, who set a price target of $170.00 [1][2] Group 1: Growth Strategy - The company's new network-led growth strategy is crucial, leveraging its extensive and differentiated network to drive organic growth [1][2] - SPS Commerce capitalizes on a vast network of trading partner relationships and transaction volumes, providing unique insights and data that are unmatched by competitors [2] Group 2: Competitive Advantage - The integration of AI technology enhances SPS Commerce's competitive edge by improving its ability to understand and meet retailer goals [2] - The company has a proven track record of high win rates and minimal losses to competitors, positioning it well for new upsell and cross-sell opportunities [2] Group 3: Market Position - SPS Commerce offers cloud-based supply chain management solutions, indicating its role in the evolving tech landscape [3]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - The event is the SPS Commerce 2025 Investor Day, featuring presentations from the leadership team and a customer panel discussion [1] - The agenda includes a Q&A session at the end of the program [1] - Forward-looking statements will be discussed, which are subject to risks and uncertainties as outlined in SEC filings [2] Group 2 - Chad Collins, the CEO of SPS Commerce, will present the company's growth strategy [3]

Summary of SPS Commerce 2025 Investor Day Company Overview - **Company**: SPS Commerce (NasdaqGS:SPSC) - **Industry**: Supply Chain Management and Retail Technology - **Headquarters**: Minneapolis, Minnesota - **Employee Count**: Approximately 3,000 employees, with half based in the Minneapolis-St. Paul area [2][3] Core Business Model - SPS Commerce operates a cloud-based network connecting retailers, suppliers, and third-party logistics providers to facilitate supply chain information exchange and collaboration [2][3] - The company serves three main market segments: retailers, suppliers, and third-party logistics providers [3] Growth Strategy - The company emphasizes the importance of network connections to enhance supply chain efficiency, sales growth, and margin improvement [3][4] - SPS Commerce aims to leverage its network to provide value-added applications, including fulfillment and revenue recovery, which are increasingly integrated into the network [6][8] - The company has identified a total addressable market (TAM) of $6.5 billion in the U.S. and over $11 billion globally, with plans to expand its customer base from 50,000 to 275,000 [16][17] Market Dynamics - The pandemic accelerated the adoption of omnichannel initiatives and dropship e-commerce, leading to increased customer count and average revenue per customer [9][11] - Current market conditions show a stabilization of omnichannel initiatives and a slowing customer count growth, attributed to macroeconomic uncertainties [12][14] Product Strategy - SPS Commerce focuses on collaboration and automation within the supply chain, with a strong emphasis on data availability to enhance customer collaboration [25][26] - The company employs a "build, buy, and partner" strategy to expand its product offerings, including recent acquisitions like Carbon6 and SupplyPike [29][30] - New product offerings include a revenue recovery solution and a performance management platform for retailers and suppliers to collaborate effectively [40][49] Go-to-Market Strategy - SPS Commerce's go-to-market strategy is centered around retail programs that facilitate supplier onboarding and compliance with retailer requirements [74][75] - The company maintains a high win rate of approximately 70% in securing new customers, primarily through its differentiated retail programs [76][78] Future Outlook - The company anticipates long-term growth driven by increased supply chain collaboration needs and the emergence of new consumer brands [14][15] - SPS Commerce is committed to continuous investment in technology and product development to enhance its network and customer offerings [50][51] Key Takeaways - SPS Commerce is well-positioned to capitalize on the growing demand for supply chain technology and collaboration solutions, with a robust network and a clear growth strategy [14][16] - The company's focus on data-driven insights and network-led growth presents unique opportunities for upselling and cross-selling to existing customers [20][21]

INVESTOR DAY September 23, 2025 © 2025 SPS Commerce Today's Agenda Growth Strategy | Chad Collins, CEO Product Strategy | Mike Svatek, CPO Financial Review | Kim Nelson, CFO Go-to-Market Strategy | Chad Collins, CEO Break Moderated Customer Panel Q&A Network Strategy | Jamie Thingelstad, CTO © 2025 SPS Commerce 2 Agenda Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements, including information about management's view of SPS Commerce's future expec ...