SPS(US:SPSC)2023-02-09 23:57Financial Data and Key Metrics Changes - For the full year 2022, revenue grew 17% to $450.9 million, with recurring revenue increasing 18% [8][16] - Adjusted EBITDA grew 24% to $132.3 million [17] - Q4 2022 revenue was $122 million, a 19% increase year-over-year, with recurring revenue growing 20% [41] - The total number of recurring revenue customers increased 13% year-over-year to approximately 42,300 [16] Business Line Data and Key Metrics Changes - Fulfillment revenue grew 19% and analytics revenue grew 10% in 2022 [8] - Adjusted EBITDA for Q4 2022 increased 26% to $35 million [41] Market Data and Key Metrics Changes - The company reported a total cash and investments of $214 million and repurchased $43.2 million of its shares [43] - The company expects revenue for Q1 2023 to be in the range of $123.3 million to $124.3 million, and for the full year 2023, revenue is expected to be in the range of $523 million to $526 million, representing approximately 16% to 17% growth over 2022 [18] Company Strategy and Development Direction - The company aims to maintain annual revenue growth expectations of 15% or greater and adjusted EBITDA dollar growth of 15% to 25% [20] - The company continues to invest in add-on products through acquisitions to expand market opportunities [87] - The focus remains on improving customer experience and enhancing full-service omnichannel supply chain solutions [39] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing transition to omnichannel retail and increasing complexity in supply chain management continue to drive the need for automation [33] - The management expressed confidence in the company's ability to capitalize on existing and new opportunities across its expanding addressable market [46] Other Important Information - The company acquired GCommerce and InterTrade Systems in 2022, adding approximately 3,000 customers to its network [42] - The company maintains a target model for adjusted EBITDA margin of 35% in the long term [20] Q&A Session Summary Question: What are the expectations for analytics growth in 2023? - Management expects analytics growth in 2023 to be similar to the approximately 10% growth rate experienced in 2022 [48] Question: What is driving the flat EBITDA margin guidance for 2023? - The flat EBITDA margin guidance is driven by strong EBITDA dollars in 2022 and the timing of hires in customer success and sales [50] Question: Is there any pressure on spending from SMB-sized customers? - Management acknowledged that retailers are focusing on making their businesses more efficient post-pandemic, which may impact spending [55] Question: How are the acquisitions of GCommerce and InterTrade performing? - Both acquisitions are meeting expectations, with positive reactions from customers and strong talent integration [59] Question: What are the company's top priorities for the coming year? - The top priorities include investing in add-on products through acquisitions, expanding the network, and improving backend integrations for efficiency [87][88]