Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2023. This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements regarding us, our business prospects and our results of operations are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Similarly, statements that describe our future plans, objectives or goals are also forward-looking. Forward-looking statements may also be made from time to time in oral presentations, including telephone conferences and/or webcasts open to the public. Shareholders, potential investors, and others are cautioned that all forward-looking statements involve risks and uncertainties that could cause results in future periods to differ materially from those anticipated by some of the statements made in this report, including the risks and uncertainties described under the heading “Risk Factors” appearing in our Annual Report on Form 10-K for the year ended December 31, 2023, as may be updated in our subsequent Quarterly Reports on Form 10-Q from time to time. We expressly disclaim any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC that advise interested parties of the risks and factors that may affect our business.
Overview
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, 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.
We plan to continue to grow our business by further penetrating the supply chain management market, increasing revenues from our customers as their businesses grow, expanding our distribution channels, expanding our international presence and, from time to time, developing new products and applications. We also intend to selectively pursue acquisitions that will add customers, allow us to expand into new regions, or allow us to offer new functionalities.
Key Financial Terms, Metrics and Non-GAAP Measures
We have several key financial terms, metrics, and non-GAAP measures as discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC, under the heading “ Management’s Discussion and Analysis of Financial Condition and Results of Operations. ”
To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations.
Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this “ Management’s Discussion and Analysis of Financial Condition and Results of Operations. ”
Results of Operations
Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023
The following table presents our results of operations for the periods indicated:
Three Months Ended September 30,
2024 2023 Change
($ in thousands) $ % of revenue (1)
$ % of revenue (1)
$ % (2)
Revenues $ 163,686 100 % $ 135,661 100 % $ 28,025 21 %
Cost of revenues 51,624 32 45,521 34 6,103 13
Gross profit 112,062 68 90,140 66 21,922 24
Operating expenses
Sales and marketing 37,577 23 30,289 22 7,288 24
Research and development 15,292 9 13,558 10 1,734 13
General and administrative 27,152 17 21,906 16 5,246 24
Amortization of intangible assets 6,470 4 3,788 3 2,682 71
Total operating expenses 86,491 53 69,541 51 16,950 24
Income from operations 25,571 16 20,599 15 4,972 24
Other income, net 3,778 2 1,702 1 2,076 NM
Income before income taxes 29,349 18 22,301 16 7,048 32
Income tax expense 5,889 4 5,459 4 430 8
Net income $ 23,460 14 % $ 16,842 12 % $ 6,618 39 %
(1) Amounts in column may not foot due to rounding
(2) NM = not meaningful
Revenues - Revenues increased for the 95th consecutive quarter. The increase in revenue period-over-period resulted primarily from the increase in average recurring revenues per recurring revenue customer, which we also refer to as wallet share. Additionally, the revenue growth was attributable to an increase in recurring revenue customers, which is driven primarily by continued business growth and by business acquisitions.
• Wallet share increased 18% to approximately $13,700 for the three months ended September 30, 2024 from approximately $11,650 for the same period in 2023. This was primarily attributable to increased usage of our products by our recurring revenue customers.
• The number of recurring revenue customers increased 2% to approximately 45,200 at September 30, 2024 from approximately 44,500 at September 30, 2023, primarily d ue to sales and marketing efforts to acquire new customers and recent acquisitions. New recurring revenue customers do not have a meaningful contribution to revenue at the beginning of their tenure as our recurring revenue customer, and therefore a majority of the increased revenue was generated from existing recurring revenue customers.
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
• Approximately 1,000 recurring revenue customers were added in September 2023 due to the acquisition of the existing customer base of TIE Kinetix. Additionally, approximately 50 recurring revenue customers were added in May 2024 due to the acquisition of the existing customer base of Traverse Systems, and approximately 200 recurring revenue customers were added in July 2024 due to the acquisition of the existing customer base of SupplyPike.
Recurring revenues increased 21% to $154.5 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 . Recurring revenues accounted for 94% of our total revenues for the three months ended September 30, 2024 and 2023. We anticipate that the number of recurring revenue customers and wallet share will continue to increase as we execute our growth strategy focused on further penetration of our market.
Cost of Revenues - The increase in cost of revenues was primarily due to increased headcount, which resulted in an increase of $4.7 million in personnel-related costs.
Sales and Marketing Expenses - The increase in sales and marketing expense was primarily due to increased headcount, which resulted in an increase of $5.0 million in personnel-related costs.
Research and Development Expenses - The increase in research and development expense was primarily due to increased headcount, which resulted in an increase of $2.4 million in personnel-related costs.
General and Administrative Expenses - The increase in general and administrative expense was primarily due to increased headcount, which resulted in an increase of $1.7 million in personnel-related costs. Additionally, there was an expense increase of $1.1 million associated with current and projected future credit losses and overall business growth.
Amortization of Intangible Assets - The increase in amortization of intangible assets was driven by acquired intangible assets related to recent business combinations.
Other Income, Net - The increase in other income, net was primarily due to realized gains from favorable foreign currency exchange rates.
Income Tax Expense - The increase in income tax expense was primarily driven by increases in pre-tax income and our US state effective rate, as partially offset by favorable return to provision adjustments made in the current period.
Adjusted EBITDA - Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from foreign currency on cash and investments held, investment income, and other adjustments as necessary for a fair presentation. Other adjustments for the three months ended September 30, 2024 included the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs. Other adjustments for the three months ended September 30, 2023 included the expense impact from acquisition-related employee severance costs. Net income is the comparable GAAP measure of financial performance.
The following table provides a reconciliation of net income to Adjusted EBITDA:
Three Months Ended
September 30,
(in thousands) 2024 2023
Net income $ 23,460 $ 16,842
Income tax expense 5,889 5,459
Depreciation and amortization of property and equipment 4,633 4,675
Amortization of intangible assets 6,470 3,788
Stock-based compensation expense 10,752 11,436
Realized gain from foreign currency on cash and investments held (1,077) (98)
Investment income (2,704) (2,635)
Other 978 1,036
Adjusted EBITDA $ 48,401 $ 40,503
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
Adjusted EBITDA Margin - Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.
The following table provides a comparison of Margin to Adjusted EBITDA Margin:
Three Months Ended
September 30,
(in thousands, except Margin and Adjusted EBITDA Margin) 2024 2023
Revenue $ 163,686 $ 135,661
Net income 23,460 16,842
Margin 14 % 12 %
Adjusted EBITDA 48,401 40,503
Adjusted EBITDA Margin 30 % 30 %
Non-GAAP Income per Share - Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from foreign currency on cash and investments held, other adjustments as necessary for a fair presentation, including for the three months ended September 30, 2024 the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs and for the three months ended September 30, 2023 the expense impact from acquisition-related employee severance costs, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments.
The following table provides a reconciliation of net income per share to non-GAAP income per share:
Three Months Ended
September 30,
(in thousands, except per share amounts) 2024 2023
Net income $ 23,460 $ 16,842
Stock-based compensation expense 10,752 11,436
Amortization of intangible assets 6,470 3,788
Realized gain from foreign currency on cash and investments held (1,077) (98)
Other 978 1,036
Income tax effects of adjustments (5,514) (4,981)
Non-GAAP income $ 35,069 $ 28,023
Shares used to compute net income and non-GAAP income per share
Basic 37,447 36,728
Diluted 37,996 37,584
Net income per share, basic $ 0.63 $ 0.46
Non-GAAP adjustments to net income per share, basic 0.31 0.30
Non-GAAP income per share, basic $ 0.94 $ 0.76
Net income per share, diluted $ 0.62 $ 0.45
Non-GAAP adjustments to net income per share, diluted 0.30 0.30
Non-GAAP income per share, diluted $ 0.92 $ 0.75
SPS COMMERCE, INC.
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Form 10-Q for the Quarterly Period ended September 30, 2024
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Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
The following table presents our results of operations for the periods indicated:
Nine Months Ended September 30,
2024 2023 Change
($ in thousands) $ % of revenue (1)
$ % of revenue (1)
$ % (2)
Revenues $ 466,858 100 % $ 391,945 100 % $ 74,913 19 %
Cost of revenues 155,129 33 133,029 34 22,100 17
Gross profit 311,729 67 258,916 66 52,813 20
Operating expenses
Sales and marketing 109,700 23 89,722 23 19,978 22
Research and development 45,667 10 39,438 10 6,229 16
General and administrative 76,575 16 64,275 16 12,300 19
Amortization of intangible assets 15,648 3 11,118 3 4,530 41
Total operating expenses 247,590 53 204,553 52 43,037 21
Income from operations 64,139 14 54,363 14 9,776 18
Other income, net 10,966 2 4,859 1 6,107 NM
Income before income taxes 75,105 16 59,222 15 15,883 27
Income tax expense 15,610 3 12,409 3 3,201 26
Net income $ 59,495 13 % $ 46,813 12 % $ 12,682 27 %
(1) Amounts in column may not foot due to rounding
(2) NM = "not meaningful"
Revenues - Revenues increased for the 95th consecutive quarter. The increase in revenue period-over-period resulted primarily from the increase in average recurring revenues per recurring revenue customer, which we also refer to as wallet share. Additionally, the revenue growth was attributable to an increase in recurring revenue customers, which is driven primarily by continued business growth and by business acquisitions.
• Wallet share increased 16% to approximately $13,000 for the nine months ended September 30, 2024 from approximately $11,250 for the same period in 2023. This was primarily attributable to increased usage of our products by our recurring revenue customers.
• The number of recurring revenue customers increased 2% to approximately 45,200 at September 30, 2024 from approximately 44,500 at September 30, 2023, primarily d ue to sales and marketing efforts to acquire new customers and recent acquisitions. New recurring revenue customers do not have a meaningful contribution to revenue at the beginning of their tenure as our recurring revenue customer, and therefore a majority of the increased revenue was generated from existing recurring revenue customers.
• Approximately 1,000 recurring revenue customers were added in September 2023 due to the acquisition of the existing customer base of TIE Kinetix. Additionally, approximately 50 recurring revenue customers were added in May 2024 due to the acquisition of the existing customer base of Traverse Systems, and approximately 200 recurring revenue customers were added in July 2024 due to the acquisition of the existing customer base of SupplyPike.
Recurring revenues increased 20% to $438.1 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 . Recurring revenues accounted for 94% of our total revenues for the nine months ended September 30, 2024 compared to 93% for the same period in 2023. We anticipate that the number of recurring revenue customers and wallet share will continue to increase as we execute our growth strategy focused on further penetration of our market.
SPS COMMERCE, INC.
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
Cost of Revenues - The increase in cost of revenues was primarily due to increased headcount, which resulted in an increase of $14.1 million in personnel-related costs. Additionally, there was an increase in our software subscriptions of $3.1 million due primarily to the general growth of our business.
Sales and Marketing Expenses - The increase in sales and marketing expense was primarily due to increased headcount, which resulted in an increase of $13.2 million in personnel-related costs, and an increase of $2.4 million in stock-based compensation. Additionally, there was an increase of $2.2 million in product management costs.
Research and Development Expenses - The increase in research and development expense was primarily due to increased headcount, which resulted in an increase of $5.4 million in personnel-related costs.
General and Administrative Expenses - The increase in general and administrative expense was primarily due to increased headcount, which resulted in an increase of $5.2 million in personnel-related costs. Additionally, there was an expense increase of $2.2 million associated with current and projected future credit losses and overall business growth.
Amortization of Intangible Assets - The increase in amortization of intangible assets was driven by acquired intangible assets related to recent business combinations.
Other Income, Net - The increase in other income, net was primarily due to increased investment income from favorable investment allocations and realized gains due to favorable foreign currency exchange rates.
Income Tax Expense - The increase in income tax expense was primarily driven by an increase in pre-tax income, as well as decreases in the excess tax benefits from current period equity award settlements, as partially offset by a decrease in nondeductible compensation. Excess tax benefits generated upon the settlement or exercise of stock awards are recognized as a reduction to income tax expense and, as a result, we expect that our annual effective income tax rate will fluctuate.
Adjusted EBITDA - Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from foreign currency on cash and investments held, investment income, and other adjustments as necessary for a fair presentation. Other adjustments for the nine months ended September 30, 2024 included the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs. Other adjustments for the nine months ended September 30, 2023 included the expense impacts from acquisition-related employee severance costs and disposals of certain capitalized internally developed software. Net income is the comparable GAAP measure of financial performance.
The following table provides a reconciliation of net income to Adjusted EBITDA:
Nine Months Ended
September 30,
(in thousands) 2024 2023
Net income $ 59,495 $ 46,813
Income tax expense 15,610 12,409
Depreciation and amortization of property and equipment 14,010 13,964
Amortization of intangible assets 15,648 11,118
Stock-based compensation expense 42,264 36,097
Realized gain from foreign currency on cash and investments held (2,636) (525)
Investment income (8,377) (5,372)
Other 978 1,170
Adjusted EBITDA $ 136,992 $ 115,674
Adjusted EBITDA Margin - Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
The following table provides a comparison of Margin to Adjusted EBITDA Margin:
Nine Months Ended
September 30,
(in thousands, except Margin and Adjusted EBITDA Margin) 2024 2023
Revenue $ 466,858 $ 391,945
Net income 59,495 46,813
Margin 13 % 12 %
Adjusted EBITDA 136,992 115,674
Adjusted EBITDA Margin 29 % 30 %
Non-GAAP Income per Share - Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from foreign currency on cash and investments held, other adjustments as necessary for a fair presentation, including for the nine months ended September 30, 2024 the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs and for the nine months ended September 30, 2023 the expense impacts from acquisition-related employee severance costs and disposals of certain capitalized internally developed software, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments.
The following table provides a reconciliation of net income per share to non-GAAP income per share:
Nine Months Ended
September 30,
(in thousands, except per share amounts) 2024 2023
Net income $ 59,495 $ 46,813
Stock-based compensation expense 42,264 36,097
Amortization of intangible assets 15,648 11,118
Realized gain from foreign currency on cash and investments held (2,636) (525)
Other 978 1,170
Income tax effects of adjustments (18,134) (16,089)
Non-GAAP income $ 97,615 $ 78,584
Shares used to compute net income and non-GAAP income per share
Basic 37,192 36,584
Diluted 37,785 37,417
Net income per share, basic $ 1.60 $ 1.28
Non-GAAP adjustments to net income per share, basic 1.02 0.87
Non-GAAP income per share, basic $ 2.62 $ 2.15
Net income per share, diluted $ 1.57 $ 1.25
Non-GAAP adjustments to net income per share, diluted 1.01 0.85
Non-GAAP income per share, diluted $ 2.58 $ 2.10
SPS COMMERCE, INC.
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
Critical Accounting Policies and Estimates
This discussion of our financial condition and results of operations is based upon our condensed consolidated financial statements, which are prepared in accordance with GAAP and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The preparation of these condensed consolidated financial statements requires us to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. On an ongoing basis, we evaluate our estimates, judgments, and assumptions. We base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable. Our actual results may differ from these estimates under different assumptions or conditions.
A critical accounting policy or estimate is one that is both material to the presentation of our financial statements and requires us to make difficult, subjective, or complex judgments relating to uncertain matters that could have a material effect on our financial condition and results of operations. Accordingly, we believe that our policies for revenue recognition, internally developed software, and business combinations are the most critical to fully understand and evaluate our financial condition and results of operations.
During the nine months ended September 30, 2024, there were no changes in our critical accounting policies or estimates. For additional information regarding our critical accounting policies and estimates, see the discussion under "Critical Accounting Policies and Estimates" in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC.
Liquidity and Capital Resources
Sources of Liquidity
As of September 30, 2024, our principal sources of liquidity were cash and cash equivalents and short-term investments totaling $205.8 million and net accounts receivable of $55.6 million. Our investments are selected in accordance with our investment policy, with a goal to preserve principal, provide liquidity, and maximize income consistent with minimizing risk of material loss. Our cash equivalents and short-term investments are generally held in highly liquid money market funds, certificates of deposit, and commercial paper.
Statements of Cash Flows Summary
The summary of activity within the condensed consolidated statements of cash flows was as follows:
Nine Months Ended
September 30,
(in thousands) 2024 2023
Net cash provided by operating activities $ 116,836 $ 99,512
Net cash used in investing activities (110,227) (93,448)
Net cash provided by (used in) financing activities (27,697) 10,005
Operating Activities
The increase in cash provided by operating activities from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 was primarily due to an increase in net income as adjusted for non-cash expenses, of $ 25.0 million, driven by continued growth in revenue, as partially offset by cash paid for expenses to operate the growing business. Additionally, fluctuations in operating assets and liabilities resulted in a decrease of $7.7 million, driven by changes in the amount and timing of settlements and general growth of the business.
Investing Activities
The increase in cash used in investing activities from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 was primarily due to an increase in cash used to acquire businesses of $ 77.2 million year-over-year to further grow our business, partially offset by an increase in cash provided by net maturities of investments of $ 58.8 million year-over-year.
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
Financing Activities
The increase in cash used in financing activities from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 was primarily due to an increase in cash used for share repurchases of $ 37.6 million year-over-year to continue to deliver shareholder value.
Contractual and Commercial Commitment Summary
Our contractual obligations and commercial commitments as o f September 30, 2024 are summarized below:
Payments Due by Period
(in thousands) Less Than
1 Year 1-3 Years 3-5 Years More Than
5 Years Total
Operating lease obligations, including imputed interest $ 5,474 $ 8,125 $ 284 $ 57 $ 13,940
Purchase commitments 13,799 7,970 — — 21,769
Total $ 19,273 $ 16,095 $ 284 $ 57 $ 35,709
Future Capital Requirements
Our future capital requirements may vary significantly from those now planned and will depend on many factors, including:
• costs to develop and implement new products and applications, if any;
• sales and marketing resources needed to further penetrate our market and gain acceptance of new products and applications that we may develop;
• expansion of our operations in the U.S. and internationally;
• response of competitors to our products and applications; and
• use of capital for acquisitions.
Historically, we have experienced increases in our expenditures consistent with the growth in our operations and personnel, and we anticipate that our expenditures will continue to increase as we expand our business.
We believe our cash, cash equivalents, investments, and cash flows from our operations will be sufficient to meet our working capital and capital expenditure requirements for at least the next twelve months.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements, investments in special purpose entities or undisclosed borrowings or debt. Additionally, we are not a party to any derivative contracts or synthetic leases.
Foreign Currency Exchange and Inflation Rate Changes
For information regarding the effect of foreign currency exchange rate changes, refer to the section entitled “Foreign Currency Exchange Risk,” included in Part I, Item 3, “Quantitative and Qualitative Disclosures About Market Risk” of this Quarterly Report on Form 10-Q.
Inflation and changing prices did not have a material effect on our business during the nine months ended September 30, 2024 and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future.
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Form 10-Q for the Quarterly Period ended September 30, 2024
Table of Contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.