−Removed: SPS Commerce is a leading provider of cloud-based supply chain management services across our global retail network.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: As of December 31, 2023, we had approximately 44,800 customers with ongoing contracts to pay us monthly fees, which we refer to as recurring revenue customers.
−Removed: In addition to our recurring revenue customers, to date we have provided our cloud-based supply chain management services to approximately 75,200 other organizations, and we refer to the combination as our customers.
−Removed: Once connected to the SPS Commerce cloud-based retail network, our customers often require additional integrations to new organizations that represent an expansion of our cloud-based network and new sources of revenues for us.
+Added: SPS Commerce is transforming how our global retail supply chain co-operates by creating a more dynamic, interconnected community where players can more freely connect, collaborate, and prosper together.
+Added: Our comprehensive suite of cloud-based products and solutions lead the industry in establishing and maintaining stronger collaboration between retailers, grocers, distributors, suppliers, manufacturers, and logistics firms around the globe.
+Added: Our products enable customers to enhance how they operate:
+Added: both within their organizations and with their trading partners, with reduced operational costs and stronger supply chain performance;
+Added: with order and supply chain visibility, sell-through data, and optimized inventory management, and;
+Added: through the limitless access to connect and grow with the world’s largest retail network of trading partners that only SPS Commerce can offer.
+Added: As of December 31, 2024, we had approximately 45,350 customers with an active recurring revenue contract at the end of the period, which we refer to as recurring revenue customers, across approximately 90 countries .
+Added: Once connected to the SPS Commerce cloud-based retail network, our recurring revenue customers often require additional integrations to new organizations that represent an expansion of our cloud-based network and new sources of revenues for us.
For the years ended December 31, 2024, 2023, and 2022, we generated revenues of $637.8 million, $536.9 million, and $450.9 million, respectively.
−Removed: Our quarter ended December 31, 2023 represented our 92nd consecutive quarter of revenue growth.
−Removed: Recurring revenues from recurring revenue customers accounted for 94%, 93%, and 92% of our total revenues for the years ended December 31, 2023, 2022, and 2021, respectively.
+Added: Our quarter ended December 31, 2024 represented our 96th consecutive quarter of revenue gr owth.
+Added: Recurring revenues from recurring revenue customers acc ounted for 94%, 94%, and 93% of our total revenues for the years ended December 31, 2024, 2023, and 2022, respectively.
Our revenues are not concentrated with any customer, as our largest customer represented less than 1% of total revenues for the years ended December 31, 2024, 2023, and 2022.
Increasing Demand for a Retail Network
−Removed: The retail industry has undergone many changes in recent years, which have accelerated the need for a more automated supply chain.
+Added: The retail industry is constantly evolving, and consumers expect more, which has accelerated the need for a more automated supply chain.
To navigate disruptions and meet growing consumer demands, companies across the retail ecosystem need to integrate their operations and communications from wholesale, eCommerce, and marketplace sales channels into a single omnichannel process.
2 unchanged sentences
The SPS Commerce retail network offers a single destination where companies can manage item details, orders, shipments, invoices, and much more for any customer and any channel.
−Removed: The network provides businesses with a comprehensive view of retail transactions, enabling them to optimize inventory and fulfill orders efficiently, regardless of channel.
−Removed: Customers use our retail network to manage all channels in a single system, saving time and reducing errors.
−Removed: SPS Commerce operates one of the largest retail networks in the world to improve the way retailers, grocers, distributors, suppliers, and logistics firms manage digital item catalogs, fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships.
−Removed: To date , 120,000 customers across approximately 85 countries have used SPS Comm erce products to expand and optimize the performance of their trading relationships through the network.
+Added: SPS Commerce operates one of the largest retail networks in the world to improve the way retailers, grocers, distributors, suppliers, and logistics firms work together.
+Added: Our recurring revenue customers use SPS Comm erce products to expand and optimize the performance of their trading relationships through the network.
Our products fundamentally change how organizations communicate information to manage their omnichannel, supply chain, and other business requirements.
Our products replace traditional, manual, or disparate approaches (such as email, phone, and fax), multiple channel-specific solution providers, as well as custom-built, point-to-point integrations by delivering a single smart connection to the entire SPS Commerce retail network of prebuilt connections to thousands of global trading partners.
+Added: Our products include:
+Added: • Fulfillment - Our Fulfillment product offers a comprehensive solution designed to streamline supply chain operations.
+Added: Our connections empower retailers, grocers, distributors, suppliers, manufacturers, and logistics firms to efficiently send and receive order data, ensuring accurate execution of required processes from order to invoicing and revenue recovery through fully automated operations.
+Added: By integrating seamlessly with existing systems, Fulfillment enhances day-to-day efficiency, reduces errors, and provides real-time visibility across all of our customers' order channels.
SPS COMMERCE, INC.
Form 10-K for the Annual Period ended December 31, 2024
−Removed: Our products include:
−Removed: • Fulfillment - Our Fulfillment product is a full-service electronic data interchange ("EDI") solution that scales as a business grows.
−Removed: Companies can use a single system to manage orders and logistics from all sales channels, including wholesale, eCommerce, and marketplaces.
−Removed: Fulfillment is configurable for any trading partner, document or business system used for order management and offers a full suite of tools to help businesses efficiently manage their supply chain.
−Removed: • Analytics - Our Analytics product enables organizations to improve visibility into how products are selling through a single connection across all sales channels, including wholesale, eCommerce, and marketplaces.
−Removed: Analytics improves access and usage of sales and inventory data through a combination of our analytics applications, network of connections, and industry-leading expertise.
−Removed: • Other Products - We provide several complementary products, such as:
+Added: • Analytics - Our Analytics product simplifies managing sell-through data from our customers’ business partners.
+Added: We handle data acquisition, cleansing, normalization, and delivery.
+Added: Our pre-built dashboards create custom reports, or integrate data with existing tools, to gain insights to enhance product performance, forecasting, pricing, and inventory management.
+Added: • Other Products - We also have other complementary products, including:
◦ Assortment - Our Assortment product simplifies the communication of robust, accurate item data by automatically translating item attributes and hierarchies through a single connection across all sales channels.
−Removed: ◦ Community - Our Community product allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through proven change management and onboarding programs.
+Added: ◦ Community - Our Community product allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through proven change management, onboarding programs, and supplier score carding.
In addition to these offerings, we also provide one-time services such as professional services and testing and certification.
Growing Our Network
−Removed: As one of the largest providers of cloud-based services for retail supply chain management, SPS Commerce enables trading partner relationships among retailer, grocer, distributor, supplier, and logistics firms that naturally lead to new customer acquisition opportunities.
+Added: As one of the largest providers of cloud-based services for retail supply chain management, SPS Commerce enables trading partner relationships among retailers, grocers, distributors, suppliers, manufacturers, and logistics firms that naturally lead to new customer acquisition opportunities.
“Network Effect”
2 unchanged sentences
After joining our retail network, customers often find that many of their existing or new trading partners are already on the network, allowing for easy connections.
−Removed: The addition of each new customer enables that new customer to communicate with our existing customers and permits our existing customers to do business with the new customer.
+Added: The addition of each new customer enables that customer to communicate with our existing customers and permits our existing customers to do business with the new customer.
This “network effect” of adding additional customers to our products’ infrastructure creates a significant opportunity for existing customers to realize incremental sales by working with our new trading partners and vice versa.
9 unchanged sentences
Direct Marketing - We employ various marketing strategies.
−Removed: Our marketing programs include a variety of lead generating activities including digital marketing, conferences and trade shows, sponsored events, and public relations activities targeted at key decision makers within our prospective customers.
−Removed: SPS COMMERCE, INC.
−Removed: Form 10-K for the Annual Period ended December 31, 2023
+Added: Our marketing programs include a variety of lead generating activities including digital marketing, account-based marketing, conferences and trade shows, sponsored events, and public relations activities targeted at key decision makers within our prospective customers.
Channel Partners - In addition to the customer acquisition sources identified above, we market and sell our products through a variety of channel partners, including software providers, resellers, system integrators, and logistics partners.
1 unchanged sentence
Our logistics partners also drive new sales both by providing leads and by embedding our products as part of their service offerings .
+Added: SPS COMMERCE, INC.
+Added: Form 10-K for the Annual Period ended December 31, 2024
Our Growth Strategy
9 unchanged sentences
We also believe there are valuable opportunities to promote and sell our products through collaboration with other providers.
−Removed: • Expand Our International Presence - We believe our presence in Asia Pacific, as well as in Europe, represents a significant competitive advantage.
+Added: • Expand Our International Presence - We believe our presence in Asia Pacific and Europe has created a foundation to expand our global presence.
We plan to increase our global sales efforts to obtain new customers around the world.
3 unchanged sentences
We plan to continue to evaluate potential acquisitions based on the number of new customers, revenue, functionality, or geographic reach the acquisition would provide relative to the purchase price, and our ability to integrate and operate the acquired business.
−Removed: In 2023, we acquired TIE Kinetix Holding B.V.
−Removed: ("TIE Kinetix"), a leading provider of supply chain digitalization including EDI and e-invoicing in Europe and the United States.
−Removed: This acquisition further extends the capabilities of our network and added new customers and technology.
+Added: In 2024, we acquired SupplyPike, Inc.
+Added: ("SupplyPike"), a revenue recovery solution, Traverse Systems LLC ("Traverse Systems"), an industry-leading provider in retailer supply chain performance and vendor management, and Vision33's SAP Business One SPS Integration Technology.
+Added: These acquisitions further extend the capabilities of our network and added new customers and technology.
Our Market Opportunity
3 unchanged sentences
Each additional channel brings more reliance and volume to the network and increases customer revenue.
−Removed: SPS COMMERCE, INC.
−Removed: Form 10-K for the Annual Period ended December 31, 2023
• Retail needs automation - With increased retail store openings and closings, labor shortages, supply chain disruptions, and new buying patterns, retailers are demanding more from their trading partners as they need to be agile and transition their businesses as markets change.
1 unchanged sentence
The visibility into orders, shipments, and inventory gained by automating trading relationships on the SPS Commerce retail network is critical to their success and offers a competitive advantage.
+Added: SPS COMMERCE, INC.
+Added: Form 10-K for the Annual Period ended December 31, 2024
• Consumers want new products - Retail assortments are ever-changing with seasonality shifts and new product introductions from companies of all sizes.
7 unchanged sentences
As a result, we spread the cost of delivering our products across our customer base.
−Removed: Because we do not manage thousands of distinct applications with their own business logic and database schemes, we can scale our business faster than traditional software vendors, even those that modified their products to be accessible over the internet.
+Added: Because we do not manage thousands of distinct applications with their own business logic and database schemas, we can scale our business faster than traditional software vendors, even those that modified their products to be accessible over the internet.
Our research and development efforts focus on maintaining, improving, and enhancing our existing products, as well as developing new products and applications.
Our multi-tenant products serve all of our customers, which allows us to maintain relatively low research and development expenses and release software updates more frequently compared to traditional on-premise licensed software products that support multiple versions.
−Removed: Our development efforts take place at our United States ("U.S.") locations in Minnesota and New Jersey, as well as in Melbourne, Australia;
+Added: Our development efforts take place at our United States ("U.S.") locations in Minnesota, Iowa, Arkansas, and New Jersey, as well as in Melbourne, Australia;
Toronto, Canada;
+Added: Breukelen, Netherlands;
and Kyiv, Ukraine.
10 unchanged sentences
• Communications - Manages our brand and public relations, as well as provides go-to-market support.
−Removed: SPS COMMERCE, INC.
−Removed: Form 10-K for the Annual Period ended December 31, 2023
• Product Marketing - Equips our sales teams, performs market studies, and promotes the unique capabilities of each of our products using our go-to-market strategies.
• Events - Highlights our presence at industry trade shows and orchestrates virtual and in-person events.
+Added: SPS COMMERCE, INC.
+Added: Form 10-K for the Annual Period ended December 31, 2024
Customer Success
2 unchanged sentences
Vendors in the supply chain management industry offer products through three delivery methods:
−Removed: traditional on-premise software, cloud-based managed services, and cloud-based full-service products.
+Added: traditional on-premise software, managed services, and cloud-based full-service products.
The market for cloud-based supply chain management products is fragmented and rapidly evolving.
9 unchanged sentences
Cloud-service vendors also compete with traditional on-premise software companies.
−Removed: Traditional on-premise software companies focused on supply chain integration management include IBM Sterling and OpenText.
−Removed: These companies offer a “do-it-yourself” method in which customers purchase, install, and manage specialized software, hardware, and value-added networks for their supply chain integration needs.
−Removed: This method requires customers to invest in staff to operate and maintain the software.
−Removed: Traditional on-premise software companies use a single-tenant approach in which information maps to retailers are built for and used by one supplier, as compared to cloud-service products that allow multiple customers to share information maps with a retailer.
−Removed: Managed service providers focused on the supply chain management market include IBM Sterling, OpenText, TrueCommerce and many other small providers.
−Removed: These companies offer a cloud-based product in which they develop and maintain the core technology, while the customer’s internal staff is responsible for the day-to-day customization, optimization, and operations of the technology.
+Added: Traditional on-premise software uses a single-tenant approach in which information maps to retailers are built for and used by one supplier, as compared to cloud-service products that allow multiple customers to share information maps with a retailer.
+Added: Traditional on-premise requires customers to purchase, install, and manage specialized software, hardware, and value-added networks for their supply chain integration needs.
+Added: Additionally, customers are required to make significant upfront and ongoing investments to purchase, operate, and maintain the software.
+Added: As such, a customer may be less willing to abandon their traditional on-premise product in favor of a cloud-service product.
+Added: Managed service providers focused on the supply chain management market offer a cloud-based product in which they develop and maintain the core technology, while the customer’s internal staff is responsible for the day-to-day customization, optimization, and operations of the technology.
In contrast, full-service providers, including SPS Commerce, offer cloud-based products and expert resources that customize, optimize, and operate the technology.
This approach offloads the time-intensive process of managing these products, which is not a core competency for most businesses.
−Removed: Customers of traditional on-premise software providers must typically make significant upfront investments in the supply chain management products these competitors provide, which can decrease customers’ willingness to abandon their investments in favor of a cloud-service product.
−Removed: Cloud-service vendors compete with these traditional software products based on the total cost of ownership and flexibility.
+Added: Full-service cloud-based vendors compete with both managed service providers and traditional on-premise software products based on the total cost of ownership and flexibility.
SPS COMMERCE, INC.
2 unchanged sentences
SPS Commerce relies on a combination of copyright, trademark, patent and trade secret laws as well as confidentiality procedures and contractual provisions to protect our proprietary technology and our brand.
−Removed: We enter into confidentiality and proprietary rights agreements with our employees, consultants and additional third parties, and control access to software, documentation, and other proprietary information.
+Added: We enter into confidentiality and proprietary rights agreements with our employees, consultants and other third parties, and control access to software, documentation, and other proprietary information.
We have registered trademarks and pending trademark applications in the U.S.
2 unchanged sentences
Registrations of trademarks can also generally be renewed indefinitely as long as the trademarks are in use.
−Removed: We have one patent we acquired through the acquisition of GCommerce.
+Added: We have two patents acquired through the acquisitions of GCommerce, Inc.
+Added: and SupplyPike, Inc.
Our trade secrets consist primarily of the software we have developed for our SPS Commerce cloud-based products and network.
1 unchanged sentence
Human Capital
−Removed: At SPS, we believe our employees have and will continue to be a primary reason for our growth and success.
−Removed: Our core values drive our culture and are foundational to how we create an engaging workplace, identify the right talent, and train and develop our teams.
−Removed: Our values guide our interactions with our customers, partners, and one another.
−Removed: We attract, retain, and reward exceptional talent by cultivating an inclusive, high-performing culture and engaging employees with meaningful work and opportunities to grow and develop.
+Added: At SPS, we recognize that our employees are crucial to our ongoing growth and success.
+Added: Our core values shape our culture and serve as the foundation for fostering an engaging workplace, attracting the right talent, and developing our teams.
+Added: These values also inform how we interact with customers, partners, and each other.
+Added: By nurturing an inclusive and high-performing culture, we attract, retain, and reward outstanding talent, providing employees with meaningful work and opportunities for personal and professional growth.
Oversight and Governance
−Removed: Our board of directors and Compensation and Talent Committee have oversight of our human capital management and diversity, equity, and inclusion efforts.
−Removed: They receive regular updates from our Chief Human Resources Officer on key strategic initiatives and other relevant matters related to human resources including, but not limited to, hiring, development, retention, employee engagement, succession planning, compensation and benefits, and human resources-related risks.
+Added: Our board of directors, along with the Compensation and Talent Committee, oversees our human capital management as well as our diversity, equity, and inclusion initiatives.
+Added: They receive consistent updates from our Chief Human Resources Officer about key strategic initiatives and other significant human resources matters, which include hiring, development, retention, employee engagement, succession planning, compensation and benefits, and risks associated with human resources.
As of December 31, 2024, we had a total of 2,783 employees worldwide, including 1,355 in cost of revenues, 733 in sales and marketing, 461 in research and development, and 234 in general and administrative.
82% are based in North America with the remaining in Europe and Asia Pacific.
−Removed: Substantially all our employees are employed on a full-time basis.
−Removed: We also engage third-party agencies for staff augmentation to support our operations.
−Removed: Although we have statutory employee representation obligations in certain countries, none of our U.S.
−Removed: employees are represented by a labor union.
+Added: The majority of our employees are engaged on a full-time basis.
+Added: We also utilize third-party agencies for staff augmentation to enhance our operations.
+Added: While we have statutory obligations for employee representation in certain countries, none of our U.S.
+Added: employees are unionized.
38% of our global workforce identify as female and 2% did not specify their gender.
Within the U.S.
−Removed: 18% of our employees self-identified as being a member of an underrepresented group.
−Removed: Our executive team is comprised of 10 individuals, of which 40% are women.
−Removed: Diversity, Equity, and Inclusion
−Removed: We value diversity, equity, and inclusion and believe our differences make us, our customers, and our communities better.
−Removed: We strive to create an organization where every employee feels welcomed and is empowered to do their best work.
−Removed: We make our commitment to diversity, equity, and inclusion a reality by incorporating it into our human resource core processes and our talent strategies.
−Removed: Our Employee Resource Groups ("ERGs") foster employee connections across the globe, provide learning, engagement, and networking opportunities, as well as provide important insights in support of advancing equity company-wide.
−Removed: These employee-led resource groups create community and focus across several dimensions including gender, race and ethnicity, gender identity, sexual orientation, ability/disability, military service and more.
−Removed: All employees are welcome and encouraged to participate in one or more of our ERGs, which include the Black Business Resource Group, the Diversity and Inclusion Group, the LGBTQ+ Group, and Women in Tech.
−Removed: Since 2021, all new hires participate in an interactive diversity, equity, and inclusion curriculum focused on the History of Racism, Implicit Bias, and Allyship.
−Removed: Additionally, we provide our managers with resources to support building inclusive teams and being an inclusive leader.
+Added: 17% of our employees self-identified as members of an underrepresented group.
+Added: As of December 31, 2024, our executive team is comprised of 6 individuals, of which one-third are women.
+Added: Belonging@SPS
+Added: We power connections that drive the world of commerce forward, and our success depends on making strong decisions, fostering innovation, delivering unparalleled customer solutions, and driving outstanding business performance.
+Added: We achieve this by creating an environment where every employee feels a true sense of belonging.
+Added: We are committed to creating an environment where everyone feels welcomed, valued, and empowered to contribute meaningfully.
+Added: In 2024, we launched Belonging@SPS as a thoughtful update to our diversity, equity, inclusion, and belongin g ("DEI(B)") statement and strategy.
+Added: This initiative was shaped by employee feedback, designed to better reflect our core values, and tailored to ensure global relevance.
+Added: We bring this commitment to life by embedding it into our human resources processes and integrating it into our talent strategies.
+Added: Our Employee Resource Groups ("ERGs"), a core part of our Belonging@SPS commitment, foster employee connections across the globe, and provide learning, engagement, and community-building for all SPS Commerce employees.
+Added: We added two new ERGs in 2024, the Disability Empowerment Network and A+ (Asian, Native Hawaiian & Pacific Islanders).
+Added: All employees are encouraged to participate in one or more of our ERGs, which also include our Black Business Resource Group, the LGBTQ+ Group, and Women in Tech.
SPS COMMERCE, INC.
Form 10-K for the Annual Period ended December 31, 2024
−Removed: For well over a decade, SPS has invested in and supported the communities in which we live and work, focused on efforts that expand our future talent pipeline by helping to develop the workforce of tomorrow.
+Added: We have taken meaningful steps to advance our commitment to diversity and inclusion by collaborating with local organizations that support underrepresented communities, including individuals with disabilities and those who are neurodiverse.
+Added: Through these partnerships, we gain valuable insights into equipping our workplace with the tools and resources needed for every employee to succeed.
+Added: Furthermore, our Talent Acquisition team has a focus area on recruiting individuals with disabilities and neurodiverse candidates, fostering an inclusive hiring process from initial recruitment to onboarding and ongoing professional development.
+Added: Since 2021, all new hires have participated in an interactive inclusion curriculum.
+Added: In 2024, we refreshed our new employee Belonging@SPS onboarding experience to identity awareness and belonging, focused on creating a safe work environment where employees feel comfortable bringing their full authentic selves to the workplace.
+Added: Additionally, we continue to provide all managers with resources to support building inclusive teams.
+Added: For over a decade, SPS has invested in and supported the communities in which we live and work, focused on efforts that expand our future talent pipeline by helping to develop the workforce of tomorrow.
Over the years we have invested in student programs focused on creating opportunities for high school and college students who are part of underrepresented populations including women, genderqueer and non-binary individuals, and racial minorities.
−Removed: These opportunities build experiences through job shadowing, work-study, mentoring, and professional development in areas of Science, Technology, Engineering and Math ("STEM"), supply-chain, analytics, and customer success.
−Removed: Established in 2020, the SPS Diverse Scholar Program supports diverse first-generation college students pursuing a career in technology.
+Added: Interns make a meaningful impact by supporting real world projects.
+Added: They work in all areas of the business and have access to mentorship, job shadows, and other professional development opportunities.
+Added: Established in 2020, the SPS Diverse Scholar Program supports diverse first-generation college students (through funding from the SPS Foundation) pursuing a career in technology.
In addition to receiving funding for their education, our diverse scholars participate in our internship program, have access to mentors, are offered part-time work during the school year, and are connected to a wide range of business professionals.
−Removed: Additionally, as a federal contractor we comply with federal contractor affirmative action requirements to employ and promote women, minorities, individuals with disabilities, and protected veterans.
+Added: Additionally, as a federal contractor we comply with applicable federal contractor affirmative action requirements.
+Added: By embedding Belonging@SPS across the Company, we have built a solid foundation for sustainable growth.
+Added: This dedication empowers us to foster an environment where every employee can thrive while enhancing our ability to serve and engage with customers and markets across the globe.
Talent Acquisition, Engagement, and Retention
We work diligently to attract the best talent from a variety of sources to meet current and future business needs.
−Removed: We have cultivated relationships with many colleges and universities, including Historically Black Colleges and Universities ("HBCUs"), industry groups, professional associations, and other student programs focused on hiring women, non-binary and genderqueer, minorities, and individuals with disabilities.
+Added: We have cultivated relationships with many colleges and universities, including Historically Black Colleges and Universities ("HBCUs"), industry groups, professional associations, and other student programs focused on recruiting women, non-binary and genderqueer, minorities, and individuals with disabilities.
Our campus program focuses on bringing in talent with experience from schools that are leaders in technology, supply chain, engineering, and business.
−Removed: 41% of our hires from our most recent campus cohort identify as underrepresented minorities.
+Added: 64% of our most recent campus cohort hires identify as underrepresented minorities.
We regularly survey our employees to better understand their perspectives and where we can focus to improve their experience.
Our 2024 employee engagement survey indicated a positive engagement score of 70%, which is higher than the benchmark provided by our survey vendor both globally and for North American companies of similar size or within our sector.
−Removed: Additionally, feedback on diversity and inclusion continues to score higher than benchmarks with an 81% positive perception score.
−Removed: Our 2023 employee retention rate of 92% improved compared to 88% in 2022.
−Removed: We believe our strong company culture and focus on providing meaningful work, professional development, flexible work options, competitive pay and benefits, as well as our commitment to diversity, equity, and inclusion contribute to our high employee retention.
+Added: Additionally, our belonging index continues to score higher than benchmarks with an 81% positive perception score.
+Added: Our 2024 employee retention rate was 91%.
+Added: We believe our strong company culture and focus on providing meaningful work, professional development, flexible work options, competitive pay and benefits, as well as our commitment to belonging contributes to our high employee retention.
Growth and Development
−Removed: Development of our employees and leaders results in high performing teams who are empowered to grow their careers and deliver exceptional results, and it begins on the first day of employment with SPS.
−Removed: When new employees join SPS, they attend a robust new hire onboarding program that focuses on the skills necessary to become productive employees, including training on company technology, collaboration tools, our company culture, values, and a comprehensive diversity, equity, and inclusion learning experience.
−Removed: Onboarding is followed by on-the-job training and regular performance and development discussions between employees and their managers.
−Removed: We provide ongoing opportunities for our employees to build new skills, develop in their current role, and prepare for future roles.
−Removed: All employees have access to an online learning platform that supports their development as well as opportunities to participate in programs such as AccelerateMe and Exploring Leadership.
−Removed: Annually we host SPS Professional Development Week ("PDW"), a collection of learning and development opportunities designed to help employees develop skills for continued growth.
−Removed: In 2023, the PDW employee track focused on how to effectively receive feedback and owning your SPS career.
−Removed: The PDW manager track focused on change management, what it means to be an inclusive leader, and building Crucial Conversation skills.
−Removed: Our talent strategy prioritizes growing and developing our own leaders.
−Removed: In 2023, we refreshed our Leadership Model by introducing competencies for each of our four leadership pillars:
−Removed: People Developer, Culture Champion, Strategist, and Results Enabler.
−Removed: These competencies will help frame our leadership development programs as we continue to build tools and resources to advance our leaders’ capabilities to grow and scale their teams.
−Removed: Additionally, we assess our leadership talent across the organization through our talent review process, which allows us to differentiate talent based on performance and potential.
−Removed: This process is the basis for succession planning for critical roles in the organization.
+Added: We are shifting training and development from a traditional, program-centric model to a learner-driven strategy that empowers employees to take ownership of their professional growth.
+Added: Our focus is on fostering a culture where learning how to learn is as critical as acquiring specific skills.
+Added: This evolution represents more than a tactical shift;
+Added: it’s a cultural transformation built on our longstanding commitment to learning, which is ingrained in the fabric of our organization.
+Added: Our goal is to foster a mindset of continuous reinvention, preparing our teams to meet today’s challenges while adapting to the rapid evolution of global commerce.
+Added: In 2024, we took significant steps toward establishing a dynamic, experiential learning model designed to drive performance and behavioral change through active engagement in daily work.
+Added: Development of our employees and leaders results in high performing teams who are empowered to grow their careers and deliver exceptional results, beginning on the first day of employment with SPS.
+Added: When new employees join
SPS COMMERCE, INC.
Form 10-K for the Annual Period ended December 31, 2024
+Added: SPS, they attend a robust new hire onboarding program that focuses on the skills necessary to become productive employees, including training on company technology, collaboration tools, our company culture, values, and a comprehensive Belonging@SPS experience.
+Added: Onboarding is followed by on-the-job training and regular performance and development discussions between employees and their managers.
+Added: We are committed to providing ongoing opportunities for employees to build new skills, excel in their current roles, and prepare for future opportunities.
+Added: Every employee has access to an online learning platform that supports their growth, along with resources designed to help them explore and advance into management roles.
+Added: Looking ahead, we are placing a strong emphasis on professional development at the highest levels of the Company.
+Added: Our aim is to equip leaders and managers with the mindsets, tools, and practical experience needed to excel while empowering their teams to achieve success.
+Added: We assess leadership talent across the organization through a rigorous talent review process, allowing us to distinguish individuals based on performance and potential.
+Added: This process forms the foundation for succession planning in critical roles.
+Added: Additionally, our performance review framework integrates the SPS leadership model, ensuring leaders are evaluated not only on their outcomes but also on how well they exemplify essential leadership competencies.
+Added: As we grow, we remain committed to cultivating an environment that promotes continuous learning, supports career mobility, and empowers employees to build the skills and connections needed to thrive.
+Added: Our initiatives are focused on driving success for our people and customers, propelling the growth of the Company.
+Added: The SPS Leadership Model is built on four key pillars:
+Added: People Developer, Culture Champion, Strategist, and Results Enabler.
+Added: These competencies shape our leadership development programs as we continue to create tools and resources to enhance our leaders’ ability to grow and scale their teams effectively.
+Added: In 2024, our senior leadership team completed 360-degree assessments, leveraging the insights to incorporate their strengths and growth opportunities into personalized development plans.
+Added: Additionally, we conducted a thorough organizational talent review to evaluate leadership across all levels, allowing us to distinguish talent based on both performance and potential.
Total Rewards and Employee Well-being
−Removed: At SPS, our total rewards strategies support the financial, physical, and mental well-being of our employees and their families and incorporate market competitive pay and comprehensive benefits programs for all global employees.
−Removed: We offer compelling and competitive packages designed to attract, retain, and motivate our employees.
−Removed: Our benefit programs align to our geographies and provide a comprehensive healthcare offering and other programs, including an employee stock purchase plan in most jurisdictions.
−Removed: We believe in paying team members equitably, regardless of gender, race, or ethnicity, and we regularly review the pay data of U.S.
−Removed: and other geographies to ensure fairness.
−Removed: The well-being of our workforce is particularly important to us.
−Removed: In addition to our traditional employee benefits, we offer several supplemental benefits to support the physical, mental, and financial health of all our employees.
−Removed: We have partnered with a global employee assistance program ("EAP") vendor that provides curated webinars in support of mental health and well-being, and offers all employees and their dependents access to mental health providers and free sessions with a licensed provider.
−Removed: healthcare platform offers virtual mental health solutions, including tools focused on mindfulness, meditation, and wellness.
−Removed: In 2023, we launched our Wellbeing at SPS intranet site providing greater access to all our programs and resources.
−Removed: At SPS, we believe generosity and caring make a difference.
−Removed: We actively contribute to our communities and encourage volunteerism and philanthropy among our employees.
−Removed: The Team SPS Gives Back Matching program amplifies SPS employees’ charitable contributions or volunteer hours with matching donations, furthering their support to the organizations they believe in and care about.
−Removed: Company Information
−Removed: We were originally incorporated as St.
−Removed: Paul Software, Inc., a Minnesota corporation, on January 28, 1987.
−Removed: On May 30, 2001, we reincorporated in Delaware under our current name, SPS Commerce, Inc.
−Removed: Our principal executive offices are located at the address listed below.
−Removed: Our telephone number is (612) 435-9400 and our website address is www.spscommerce.com .
−Removed: Information on our website does not constitute part of this Annual Report on Form 10-K or any other report we file or furnish with the SEC.
+Added: At SPS, our total rewards strategy is designed to support the financial, physical, and mental well-being of our employees and their families.
+Added: We offer market-competitive pay and comprehensive benefits programs tailored to our global workforce.
+Added: Our packages are thoughtfully crafted to attract, retain, and motivate top talent, featuring robust healthcare offerings, an employee stock purchase plan available in most jurisdictions, and other region-specific benefits.
+Added: We are committed to equitable pay practices, ensuring employees are compensated fairly regardless of gender, race, or ethnicity.
+Added: To uphold this commitment, we regularly review pay data in the U.S.
+Added: and other regions to ensure fairness and equity.
+Added: At SPS, employee well-being is a core priority.
+Added: We are dedicated to fostering a holistic approach to well-being that encompasses physical, mental, financial, career, and social dimensions.
+Added: Through our partnership with a global Employee Assistance Program (EAP), we provide curated mental health and wellness webinars, access to licensed mental health professionals, and complimentary sessions for employees and their dependents.
+Added: In the U.S., our healthcare platform offers virtual mental health solutions, featuring tools for mindfulness, meditation, and overall wellness support.
+Added: In 2023, we introduced the Wellbeing at SPS intranet site, providing a centralized hub for employees to easily access our comprehensive well-being programs.
+Added: In 2024, we emphasized the importance of preventive care, encouraging employees to take proactive steps in managing their physical and mental health, fostering a healthier and more productive workforce.
+Added: Additionally, SPS expanded its focus on financial well-being by offering educational resources and support programs aimed at empowering employees to achieve financial security and stability.
SPS COMMERCE, INC.
−Removed: 333 South Seventh Street
−Removed: Minneapolis, MN 55402
+Added: Form 10-K for the Annual Period ended December 31, 2024
Available Information
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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.