What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-04-26 compared with 2022-10-27 · 75 added, 180 removed, 410 unchanged (38% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except shares) September 30,

(in thousands, except shares) March 31,

2023 December 31,

40 unchanged sentences

Treasury Stock, at cost;

2,146,783 and 1,789,353 shares, respectively

2,151,098 shares

( 128,892 ) ( 128,892 )

6 unchanged sentences

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

SPS COMMERCE, INC.

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands, except per share amounts) (unaudited) 2023 2022

9 unchanged sentences

Income from operations 16,730 16,510

Other expense, net ( 695 ) ( 716 ) ( 1,610 ) ( 1,424 )

Other income, net 1,276 423

Income before income taxes 18,006 16,933

4 unchanged sentences

Unrealized gain (loss) on investments, net of tax of $ 133 and ($ 1 ), respectively

158 ( 27 ) 147 ( 107 )

Reclassification of (gain) loss on investments into earnings, net of tax of ($ 125 ) and $ 4 , respectively

( 39 ) 48 ( 51 ) 138

Total other comprehensive expense ( 2,177 ) ( 947 ) ( 3,213 ) ( 573 )

Total other comprehensive income (expense) ( 72 ) 738

Comprehensive income $ 15,217 $ 13,341

7 unchanged sentences

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

SPS COMMERCE, INC.

6 unchanged sentences

(in thousands, except shares) (unaudited) Shares Amount Shares Amount

Balances, June 30, 2021 35,859,353 $ 38 1,676,765 $ ( 71,697 ) $ 413,182 $ 113,873 $ ( 647 ) $ 454,749

Stock-based compensation — — — — 6,361 — — 6,361

Shares issued pursuant to stock awards 145,658 — — — 2,997 — — 2,997

Employee stock purchase plan activity 1,526 — — — 130 — — 130

Repurchases of common stock ( 42,299 ) — 42,299 ( 4,211 ) — — — ( 4,211 )

Net income — — — — — 11,449 — 11,449

Foreign currency translation adjustments — — — — — — ( 968 ) ( 968 )

Unrealized loss on investments, net of tax — — — — — — ( 27 ) ( 27 )

Reclassification of loss on investments into earnings, net of tax — — — — — — 48 48

Balances, September 30, 2021 35,964,238 $ 38 1,719,064 $ ( 75,908 ) $ 422,670 $ 125,322 $ ( 1,594 ) $ 470,528

Balances, June 30, 2022 36,029,477 $ 38 2,044,549 $ ( 115,900 ) $ 453,922 $ 161,443 $ ( 2,483 ) $ 497,020

Stock-based compensation — — — — 7,429 — — 7,429

Shares issued pursuant to stock awards 108,240 — — — 1,767 — — 1,767

Employee stock purchase plan activity 2,481 — — — 238 — — 238

Repurchases of common stock ( 102,234 ) — 102,234 ( 12,477 ) — — — ( 12,477 )

Net income — — — — — 15,863 — 15,863

Foreign currency translation adjustments — — — — — — ( 2,296 ) ( 2,296 )

Unrealized gain on investments, net of tax — — — — — — 158 158

Reclassification of gain on investments into earnings, net of tax — — — — — — ( 39 ) ( 39 )

Balances, September 30, 2022 36,037,964 $ 38 2,146,783 $ ( 128,377 ) $ 463,356 $ 177,306 $ ( 4,660 ) $ 507,663

Common Stock Treasury Stock Additional

Capital Retained

Earnings Accumulated Other Comprehensive Loss Total

Stockholders'

Shares Amount Shares Amount

Balances, December 31, 2021 36,009,257 $ 38 1,789,353 $ ( 85,677 ) $ 433,258 $ 138,087 $ ( 1,447 ) $ 484,259

7 unchanged sentences

Reclassification of loss on investments into earnings, net of tax — — — — — — 11 11

Balances, September 30, 2021 35,964,238 $ 38 1,719,064 $ ( 75,908 ) $ 422,670 $ 125,322 $ ( 1,594 ) $ 470,528

Balances, March 31, 2022 36,120,518 $ 38 1,910,897 $ ( 100,903 ) $ 442,405 $ 150,690 $ ( 709 ) $ 491,521

Balances, December 31, 2022 36,158,046 $ 38 2,151,098 $ ( 128,892 ) $ 476,117 $ 193,221 $ ( 3,411 ) $ 537,073

2 unchanged sentences

Employee stock purchase plan activity 2,549 — — — 241 — — 241

Repurchases of common stock ( 357,430 ) — 357,430 ( 42,700 ) — — — ( 42,700 )

Net income — — — — — 15,289 — 15,289

2 unchanged sentences

Reclassification of gain on investments into earnings, net of tax — — — — — — ( 376 ) ( 376 )

Balances, September 30, 2022 36,037,964 $ 38 2,146,783 $ ( 128,377 ) $ 463,356 $ 177,306 $ ( 4,660 ) $ 507,663

Balances, March 31, 2023 36,532,756 $ 39 2,151,098 $ ( 128,892 ) $ 489,716 $ 208,510 $ ( 3,483 ) $ 565,890

See accompanying notes to these condensed consolidated financial statements.

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

SPS COMMERCE, INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

Three Months Ended

(in thousands) (unaudited) 2023 2022

8 unchanged sentences

Other, net 502 (7)

Changes in assets and liabilities, net of effects of acquisition

Changes in assets and liabilities

Accounts receivable ( 6,220 ) (5,563)

11 unchanged sentences

Maturities of investments 35,000 65,000

Acquisition of business, net ( 44,923 ) —

Net cash used in investing activities ( 60,593 ) ( 32,087 )

Net cash provided by (used in) investing activities ( 4,590 ) 5,668

Cash flows from financing activities

2 unchanged sentences

Net proceeds from employee stock purchase plan activity 241 147

Payments for contingent consideration — ( 2,042 )

Net cash used in financing activities ( 36,655 ) ( 3,360 )

Net cash provided by (used in) financing activities 2,425 (14,575)

Effect of foreign currency exchange rate changes ( 55 ) 96

4 unchanged sentences

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

SPS COMMERCE, INC.

4 unchanged sentences

SPS Commerce is a leading provider of cloud-based supply chain management services across our global retail network.

Our products make it easier for retailers, suppliers, grocers, distributors, and logistics firms to orchestrate the management of item data, order fulfillment, inventory control, and sales analytics across omnichannel retail channels.

SPS Commerce delivers our products using a full-service model whereby our internal experts monitor, update, and boost network performance on our customers’ behalf.

The services offered by SPS Commerce eliminate the need for on-premise software and support staff by taking on that capability on the customer’s behalf.

The services we provide enable our customers to increase their supply cycle agility, optimize their inventory levels and sell-through, reduce operational costs and gain increased visibility into customer orders, to help ensure that suppliers, grocers, distributors, and logistics firms can satisfy exacting retailer requirements.

Our products make it easier for retailers, grocers, distributors, suppliers, and logistics firms to communicate and collaborate by simplifying how they manage and share item, inventory, order and sales data across omnichannel retail channels.

We deliver our products using a full-service model, which includes industry-leading technology and a team of experts that optimize, update, and operate the technology on customers' behalf.

Our products enable customers to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience.

Basis of Presentation

11 unchanged sentences

Significant Accounting Policies

There were no material changes in our significant accounting policies during the nine months ended September 30, 2022.

There were no material changes in our significant accounting policies during the three months ended March 31, 2023.

See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 , as filed with the SEC, for additional information regarding our significant accounting policies.

Accounting Pronouncements Not Yet Adopted

Standard Date of Issuance Description Date of Required Adoption Effect on the Financial Statements

Accounting Pronouncements Recently Adopted

Standard Date of Issuance Description Date of Adoption Effect on the Financial Statements

ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

October 2021 This amendment requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, effective for all business combinations in the year of adoption and thereafter.

January 2023 The adoption of this standard may have a material impact on the purchase accounting for business combinations depending on the specific amount of contract assets and liabilities being acquired.

January 2023 The adoption of this standard may have a material impact on the purchase accounting for future business combinations depending on the specific amount of contract assets and liabilities being acquired.

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

NOTE B – Business Acquisitions

1 unchanged sentence

("GCommerce"), a leading EDI provider within the automotive aftermarket industry.

Pursuant to the definitive agreement, the purchase price of $ 45 million was paid in cash at closing, and is subject to customary post-closing adjustments.

The purchase accounting for the acquisition has not been finalized as of September 30, 2022.

Provisional amounts are primarily related to intangible assets, net working capital, and tax positions.

Pursuant to the definitive agreement, the purchase price was $ 45.1 million, including post-closing adjustments.

The purchase accounting for the acquisition has not been finalized as of March 31, 2023 due primarily to provisional tax components and corresponding impacts to other items, including intangible assets.

We expect to finalize the allocation of the purchase price within the one-year measurement period following the acquisition.

Purchase Price Allocation

We accounted for the acquisition as a business combination.

We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date.

The excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill.

Goodwill is attributed to a trained workforce and other buyer-specific value resulting from expected synergies, including long-term cost savings, which are not included in the fair values of identifiable assets.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

(in thousands) Estimated Fair Value

Accounts receivable 467

Other current assets 288

Operating lease right-of-use asset 934

Goodwill 24,556

Intangible assets 20,250

Deferred income tax assets 5,291

Accounts payable ( 266 )

Accrued compensation ( 321 )

Deferred revenue ( 262 )

Operating lease liability ( 934 )

Deferred income tax liabilities ( 5,144 )

Purchased Intangible Assets

The following table summarizes the estimated fair value of the purchased intangible assets and their estimated useful lives, each of which are subject to finalization:

($ in thousands) Estimated

Fair Value Weighted Average

Subscriber relationships $ 18,225 8.0 years

Acquired technology 2,025 5.0 years

Total $ 20,250

During the quarter ended March 31, 2023, provisional amounts were adjusted by $ 1.6 million, primarily relating to a $ 1.5 million decrease in the estimated value of deferred income tax assets, with the corresponding offset to goodwill.

Effective October 4, 2022, we acquired all of the outstanding equity ownership interests of Canadian based InterTrade Systems Inc.

("InterTrade"), a leading EDI provider within the apparel and general merchandising markets.

Pursuant to the definitive agreement, the purchase price of $ 49 million was paid in cash at closing, and is subject to customary post-closing adjustments.

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Pursuant to the definitive agreement, the purchase price was $ 49.1 million, including estimated post-closing adjustments.

The purchase accounting for the acquisition has not been finalized as of March 31, 2023 due to various items including valuation modeling completion;

provisional amounts are primarily related to intangible assets.

We expect to finalize the allocation of the purchase price within the one-year measurement period following the acquisition.

During the quarter ended March 31, 2023, there were no material changes to the provisional amounts.

NOTE C – Revenue

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

15 unchanged sentences

One-time revenues consist of set-up fees and miscellaneous fees from customers.

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended March 31, 2023

Set-up revenues

6 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

5 unchanged sentences

Those that will be recognized within the next year are classified as current, whereas the remainder are classified as non-current.

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Miscellaneous one-time revenues

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

3 unchanged sentences

Balance, end of period $ 71,809 $ 62,610

NOTE E – Financial Instruments

Cash Equivalents and Investments

Cash equivalents and investments consisted of the following:

September 30, 2022 December 31, 2021

(in thousands) Amortized Cost Unrealized Gains, net Fair Value Amortized Cost Unrealized Gains (Losses), net Fair Value

Cash equivalents:

Money market funds $ 111,498 $ — $ 111,498 $ 138,205 $ — $ 138,205

Certificates of deposit 6,437 — 6,437 7,268 — 7,268

Marketable securities:

Commercial paper 44,358 133 44,491 34,984 7 34,991

treasury securities — — — 7,500 ( 1 ) 7,499

$ 162,293 $ 133 $ 162,426 $ 187,957 $ 6 $ 187,963

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Recurring Fair Value Measurements

The following table details the fair value hierarchy of our assets and liabilities measured at a fair value on a recurring basis:

September 30, 2022 December 31, 2021

(in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Form 10-Q for the Quarterly Period ended March 31, 2023

NOTE E – Fair Value Measurements

Cash Equivalents and Investments

Cash equivalents and investments, as measured at fair value on a recurring basis, consisted of the following:

March 31, 2023 December 31, 2022

Fair Value Level Amortized Cost Unrealized Gains (Losses), net Fair Value Amortized Cost Unrealized Gains (Losses), net Fair Value

(in thousands)

Cash equivalents:

Money market funds $ 111,498 $ — $ — $ 111,498 $ 138,205 $ — $ — $ 138,205

Certificates of deposit 6,437 — — 6,437 7,268 — — 7,268

Money market funds Level 1 $ 94,284 $ — $ 94,284 $ 73,368 $ — $ 73,368

Certificates of deposit Level 1 6,687 — 6,687 6,813 — 6,813

Marketable securities:

Commercial paper — 44,491 — 44,491 — 34,991 — 34,991

treasury securities — — — — — 7,499 — 7,499

Commercial paper Level 2 34,228 353 34,581 44,224 375 44,599

treasury securities Level 2 9,827 51 9,878 — — —

$ 145,026 $ 404 $ 145,430 $ 124,405 $ 375 $ 124,780

See Note E to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC, for additional information regarding the three levels of inputs that may be used to measure fair value.

NOTE F – Allowance for Credit Losses

The allowance for credit losses activity, included in accounts receivable, net, was as follows:

Nine Months Ended

September 30,

Three Months Ended

(in thousands) 2023 2022

5 unchanged sentences

Property and equipment, net consisted of the following:

(in thousands) September 30,

(in thousands) March 31,

2023 December 31, 2022

7 unchanged sentences

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

NOTE H – Goodwill and Intangible Assets, Net

The activity in goodwill was as follows:

Nine Months Ended

September 30,

Three Months Ended

(in thousands) 2023

Balance, beginning of period $ 197,284

Addition from business acquisition 24,556 —

Foreign currency translation ( 71 )

3 unchanged sentences

Intangible assets, net consisted of the following:

September 30, 2022

March 31, 2023

($ in thousands) Gross

19 unchanged sentences

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

NOTE I – Commitments and Contingencies

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

3 unchanged sentences

Supplemental cash flow information related to leases was as follows:

Nine Months Ended

September 30,

Three Months Ended

(in thousands) 2023 2022

1 unchanged sentence

Operating cash flows from operating leases $ 1,247 $ 1,095

Right-of-use assets obtained in exchange for operating lease liabilities 934 —

Supplemental balance sheet information related to operating leases was as follows:

September 30,

2023 December 31, 2022

1 unchanged sentence

Weighted-average discount rate 4.0 % 4.0 %

At September 30, 2022, our future minimum payments under operating leases were as follows:

At March 31, 2023, our future minimum payments under operating leases were as follows:

(in thousands)

Remainder of 2023 $ 3,847

Thereafter 1,266

Total future gross payments $ 17,428

3 unchanged sentences

We have entered into separate noncancelable agreements with computing infrastructure, customer relationship management, and performance and security data analytics vendors for services through 2025.

At September 30, 2022, the total remaining purchase commitments were $ 7.4 million .

At March 31, 2023, the total remaining purchase commitments were $ 4.3 million .

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

NOTE J – Stockholders’ Equity

1 unchanged sentence

Our board of directors has authorized multiple non-concurrent programs to repurchase our common stock.

Details of the programs and activity thereunder through September 30, 2022 were as follows:

Details of the programs and activity thereunder through March 31, 2023 were as follows:

(in thousands) Effective Date Expiration Date Share Value Authorized for Repurchase Share Value Repurchased Unused & Expired Share Repurchase Value Share Value Available for Future Repurchase

2019 Program November 2019 November 2021 $ 50,000 $ 29,611 $ 20,389 N/A

2021 Program November 2021 August 2022 50,000 49,992 8 N/A

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands, except shares and per share amounts) 2023 2022

7 unchanged sentences

This cost is recognized over the period for which the employee is required to provide service in exchange for the award or the award performance period, except for expenses relating to retirement-eligible employees that have not given their required notice, which is recognized on a pro-rata basis over the notice period prior to retirement.

At September 30, 2022 , there were 13.2 million shares available for grant under approved equity compensation plans.

At March 31, 2023 , there were 12.8 million shares available for grant under approved equity compensation plans.

Stock-based compensation expense was allocated in the condensed consolidated statements of comprehensive income as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

6 unchanged sentences

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

Stock-based compensation expense by grant type or plan was as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

3 unchanged sentences

RSAs & DSUs 108 108

ESPP 577 376 1,609 1,038

401(k) stock match 605 519

$ 11,780 $ 9,015

As of September 30, 2022, there was $ 42.1 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a primarily straight-line basis over a weighted average period of 2.5 years.

As of March 31, 2023, there was $ 63.8 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a primarily straight-line basis over a weighted average period of 2.6 years.

Stock Options

Our stock option activity was as follows:

Nine Months Ended

September 30, 2022

Three Months Ended

March 31, 2023

Options (#) Weighted Average

5 unchanged sentences

Outstanding, end of period 522,841 $ 64.60

Of the total outstanding options at September 30, 2022, 0.5 million were exercisable.

Of the total outstanding options at March 31, 2023, 0.4 million were exercisable.

The outstanding and exercisable options had a weighted average exercise price of $ 53.22 per share and a weighted average remaining contractual life of 3.0 years.

The weighted average grant date fair value of options granted during the nine months ended September 30, 2022 was $ 40.95 per share.

The weighted average grant date fair value of options granted during the three months ended March 31, 2023 was $ 54.53 per share.

This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

7 unchanged sentences

Earned awards vest in the quarter following the conclusion of the performance period.

In the three months ended March 31, 2022 , PSU awards granted in 2019 vested at the maximum performance level and less than 0.1 million shares of common stock were issued.

In the three months ended March 31, 2023 , PSU awards granted in 2019 vested at the maximum performance level and 0.1 million shares of common stock were issued.

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

Activity for our PSUs, RSUs, RSAs, and DSUs in aggregate was as follows:

Nine Months Ended

September 30, 2022

Three Months Ended

March 31, 2023

# Weighted Average Grant

5 unchanged sentences

Outstanding, end of period 707,872 $ 141.92

The number of PSUs, RSUs, RSAs, and DSUs outstanding at September 30, 2022 included less than 0.1 million units that have vested, but the shares of common stock have not yet been issued, pursuant to the terms of the underlying agreements.

The number of PSUs, RSUs, RSAs, and DSUs outstanding at March 31, 2023 included less than 0.1 million units that have vested, but the shares of common stock have not yet been issued, pursuant to the terms of the underlying agreements.

Employee Stock Purchase Plan

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands, except shares) 2023 2022

1 unchanged sentence

Shares purchased 2,549 1,698

A total of 1.8 million shares of common stock are reserved for issuance under the ESPP as of September 30, 2022.

A total of 1.7 million shares of common stock are reserved for issuance under the ESPP as of March 31, 2023.

The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the following assumptions:

5 unchanged sentences

We record our interim provision for income taxes by applying our estimated annual effective tax rate to our year-to-date pre-tax income and adjust the provision for discrete tax items recorded in the period.

Our provisions for income taxes includes current federal, state, and foreign income tax expense, as well as deferred tax expense.

Differences between our effective tax rate and statutory tax rates are primarily due to the impact of permanently non-deductible expenses partially offset by the federal research and development credits and tax benefits associated with foreign-derived intangible income.

Additionally, excess tax benefits generated upon settlement or exercise of stock awards are recognized as a reduction to income tax expense as a discrete tax item in the quarter that the event occurs, creating potentially significant fluctuation in tax expense by quarter and by year.

Our provisions for income taxes includes current federal, state, and foreign income tax expense, as well as deferred tax expense.

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

NOTE M – Other Income and Expense

Other expense, net included the following:

Other income, net included the following:

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

Investment income $ 1,127 $ 48

Realized loss from foreign currency on cash and investments held ( 1,151 ) ( 854 ) ( 2,010 ) ( 1,492 )

Realized gain from foreign currency on cash and investments held 137 468

Other income (expense), net 12 ( 93 )

Total other expense, net $ ( 695 ) $ ( 716 ) $ ( 1,610 ) $ ( 1,424 )

Total other income, net $ 1,276 $ 423

NOTE N – Net Income Per Share

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands, except per share amounts) 2023 2022

9 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2023 2022

Anti-dilutive shares 108 151

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

NOTE O – Geographic Information

The percentage of domestic revenue, which we define as the percentage of consolidated revenue that was attributable to customers based within the U.S., was as follows:

Domestic revenue, which we define as revenue that was attributable to customers based within the U.S., was as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Domestic revenue 84 % 84 %

2 unchanged sentences

Property and Equipment

The percentage of property and equipment, net located at subsidiary and office locations outside of the U.S.

Property and equipment, net located at subsidiary and office locations outside of the U.S.

was as follows:

September 30,

2023 December 31, 2022

1 unchanged sentence

SPS COMMERCE, INC.

Form 10-Q for the Quarterly Period ended September 30, 2022

Form 10-Q for the Quarterly Period ended March 31, 2023

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements