x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 41-2015127 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Common Stock, par value $0.001 per share | SPSC | The Nasdaq Stock Market LLC (Nasdaq Global Market) |
Large Accelerated Filer | x | Accelerated Filer | o | ||||||||
Non-Accelerated Filer | o | Smaller Reporting Company | o | ||||||||
Emerging Growth Company | o |
Auditor Firm Id: | 185 | Auditor Name: | KPMG, LLP | Auditor Location: | Minneapolis, MN |
Page | ||||||||
Item 16. | ||||||||
![]() | 2 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 3 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 4 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 5 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 6 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 7 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 8 | Form 10-K for the Annual Period ended December 31, 2022 |
# of Employees | |||||
Cost of revenues | 1,122 | ||||
Sales and marketing | 557 | ||||
Research and development | 359 | ||||
General and administrative | 177 | ||||
Total employees | 2,215 |
![]() | 9 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 10 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 11 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 12 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 13 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 14 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 15 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 16 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 17 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 18 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 19 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 20 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 21 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 22 | Form 10-K for the Annual Period ended December 31, 2022 |
Date | SPS Commerce | Nasdaq US Benchmark TR Index | Nasdaq Computer Index | |||||||||||||||||
12/29/2017 | $ | 100.00 | $ | 100.00 | $ | 100.00 | ||||||||||||||
12/31/2018 | 169.54 | 94.56 | 96.32 | |||||||||||||||||
12/31/2019 | 228.11 | 124.03 | 144.80 | |||||||||||||||||
12/31/2020 | 446.96 | 150.41 | 217.17 | |||||||||||||||||
12/31/2021 | 585.92 | 189.36 | 299.39 | |||||||||||||||||
12/30/2022 | 528.63 | 152.00 | 192.28 |
![]() | 23 | Form 10-K for the Annual Period ended December 31, 2022 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program(1) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (1) | ||||||||||||||||||||||
October 1 - 31, 2022 | 1,291 | $ | 120.06 | 1,291 | $ | 47,368,000 | ||||||||||||||||||||
November 1 - 30, 2022 | 3,024 | 119.05 | 3,024 | 47,008,000 | ||||||||||||||||||||||
December 1 - 31, 2022 | — | — | — | 47,008,000 | ||||||||||||||||||||||
Total | 4,315 | $ | 119.35 | 4,315 | $ | 47,008,000 |
![]() | 24 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 25 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 26 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 27 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
($ in thousands) | $ | % of revenue(1) | $ | % of revenue(1) | $ | % | |||||||||||||||||||||||||||||
Revenues | $ | 450,875 | 100.0 | % | $ | 385,276 | 100.0 | % | $ | 65,599 | 17.0 | % | |||||||||||||||||||||||
Cost of revenues | 153,065 | 33.9 | 131,678 | 34.2 | 21,387 | 16.2 | |||||||||||||||||||||||||||||
Gross profit | 297,810 | 66.1 | 253,598 | 65.8 | 44,212 | 17.4 | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Sales and marketing | 101,772 | 22.6 | 88,044 | 22.9 | 13,728 | 15.6 | |||||||||||||||||||||||||||||
Research and development | 45,748 | 10.1 | 39,038 | 10.1 | 6,710 | 17.2 | |||||||||||||||||||||||||||||
General and administrative | 67,340 | 14.9 | 61,305 | 15.9 | 6,035 | 9.8 | |||||||||||||||||||||||||||||
Amortization of intangible assets | 11,768 | 2.6 | 10,126 | 2.6 | 1,642 | 16.2 | |||||||||||||||||||||||||||||
Total operating expenses | 226,628 | 50.3 | 198,513 | 51.5 | 28,115 | 14.2 | |||||||||||||||||||||||||||||
Income from operations | 71,182 | 15.8 | 55,085 | 14.3 | 16,097 | 29.2 | |||||||||||||||||||||||||||||
Other income (expense), net | 142 | — | (1,544) | (0.4) | 1,686 | (109.2) | |||||||||||||||||||||||||||||
Income before income taxes | 71,324 | 15.8 | 53,541 | 13.9 | 17,783 | 33.2 | |||||||||||||||||||||||||||||
Income tax expense | 16,190 | 3.6 | 8,944 | 2.3 | 7,246 | 81.0 | |||||||||||||||||||||||||||||
Net income | $ | 55,134 | 12.2 | % | $ | 44,597 | 11.6 | % | $ | 10,537 | 23.6 | % | |||||||||||||||||||||||
(1) Amounts in column may not foot due to rounding |
![]() | 28 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Net income | $ | 55,134 | $ | 44,597 | |||||||
Income tax expense | 16,190 | 8,944 | |||||||||
Depreciation and amortization of property and equipment | 16,421 | 14,788 | |||||||||
Amortization of intangible assets | 11,768 | 10,126 | |||||||||
Stock-based compensation expense | 33,399 | 27,574 | |||||||||
Realized loss from foreign currency on cash and investments held | 1,026 | 1,456 | |||||||||
Investment income | (1,670) | (278) | |||||||||
Other | — | (192) | |||||||||
Adjusted EBITDA | $ | 132,268 | $ | 107,015 |
Year Ended December 31, | |||||||||||
(in thousands, except Margin and Adjusted EBITDA Margin) | 2022 | 2021 | |||||||||
Revenue | $ | 450,875 | $ | 385,276 | |||||||
Net income | 55,134 | 44,597 | |||||||||
Margin | 12 | % | 12 | % | |||||||
Adjusted EBITDA | $ | 132,268 | $ | 107,015 | |||||||
Adjusted EBITDA Margin | 29 | % | 28 | % |
![]() | 29 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | |||||||||
Net income | $ | 55,134 | $ | 44,597 | |||||||
Stock-based compensation expense | 33,399 | 27,574 | |||||||||
Amortization of intangible assets | 11,768 | 10,126 | |||||||||
Realized loss from foreign currency on cash and investments held | 1,026 | 1,456 | |||||||||
Other | — | (192) | |||||||||
Income tax effects of adjustments | (14,639) | (16,454) | |||||||||
Non-GAAP income | $ | 86,688 | $ | 67,107 | |||||||
Shares used to compute non-GAAP income per share | |||||||||||
Basic | 36,117 | 35,928 | |||||||||
Diluted | 36,953 | 36,962 | |||||||||
Non-GAAP income per share | |||||||||||
Basic | $ | 2.40 | $ | 1.87 | |||||||
Diluted | $ | 2.35 | $ | 1.82 |
Twelve Months Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Net cash provided by operating activities | $ | 100,052 | $ | 112,893 | |||||||
Net cash used in investing activities | (112,790) | (46,703) | |||||||||
Net cash used in financing activities | (31,631) | (8,361) |
![]() | 30 | Form 10-K for the Annual Period ended December 31, 2022 |
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 | $ | 4,889 | $ | 8,854 | $ | 5,029 | $ | — | $ | 18,772 | |||||||||||||||||||
Purchase commitments | 3,126 | 1,789 | — | — | 4,915 | ||||||||||||||||||||||||
Total | $ | 8,015 | $ | 10,643 | $ | 5,029 | $ | — | $ | 23,687 |
![]() | 31 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 32 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 33 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 34 | Form 10-K for the Annual Period ended December 31, 2022 |
/s/ KPMG LLP | |||||
We have served as the Company’s auditor since 2013. | |||||
Minneapolis, Minnesota | |||||
February 21, 2023 |
![]() | 35 | Form 10-K for the Annual Period ended December 31, 2022 |
/s/ KPMG LLP | |||||
Minneapolis, Minnesota | |||||
February 21, 2023 |
![]() | 36 | Form 10-K for the Annual Period ended December 31, 2022 |
December 31, | |||||||||||
(in thousands, except shares) | 2022 | 2021 | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 162,893 | $ | 207,552 | |||||||
Short-term investments | 51,412 | 49,758 | |||||||||
Accounts receivable | 42,501 | 38,811 | |||||||||
Allowance for credit losses | (3,066) | (4,249) | |||||||||
Accounts receivable, net | 39,435 | 34,562 | |||||||||
Deferred costs | 52,755 | 44,529 | |||||||||
Other assets | 16,319 | 16,042 | |||||||||
Total current assets | 322,814 | 352,443 | |||||||||
Property and equipment, net | 35,458 | 31,901 | |||||||||
Operating lease right-of-use assets | 9,170 | 10,851 | |||||||||
Goodwill | 197,284 | 143,663 | |||||||||
Intangible assets, net | 88,352 | 58,587 | |||||||||
Other assets | |||||||||||
Deferred costs, non-current | 17,424 | 15,191 | |||||||||
Deferred income tax assets | 227 | 182 | |||||||||
Other assets, non-current | 2,185 | 3,028 | |||||||||
Total assets | $ | 672,914 | $ | 615,846 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 11,256 | $ | 8,330 | |||||||
Accrued compensation | 30,235 | 31,661 | |||||||||
Accrued expenses | 7,451 | 8,345 | |||||||||
Deferred revenue | 57,423 | 50,428 | |||||||||
Operating lease liabilities | 4,277 | 4,108 | |||||||||
Total current liabilities | 110,642 | 102,872 | |||||||||
Other liabilities | |||||||||||
Deferred revenue, non-current | 4,771 | 5,144 | |||||||||
Operating lease liabilities, non-current | 13,009 | 16,426 | |||||||||
Deferred income tax liabilities | 7,419 | 7,145 | |||||||||
Total liabilities | 135,841 | 131,587 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding | — | — | |||||||||
Common stock, $0.001 par value; 110,000,000 shares authorized; 38,309,144 and 37,798,610 shares issued; and 36,158,046 and 36,009,257 shares outstanding, respectively | 38 | 38 | |||||||||
Treasury Stock, at cost; 2,151,098 and 1,789,353 shares, respectively | (128,892) | (85,677) | |||||||||
Additional paid-in capital | 476,117 | 433,258 | |||||||||
Retained earnings | 193,221 | 138,087 | |||||||||
Accumulated other comprehensive loss | (3,411) | (1,447) | |||||||||
Total stockholders’ equity | 537,073 | 484,259 | |||||||||
Total liabilities and stockholders’ equity | $ | 672,914 | $ | 615,846 |
![]() | 37 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2020 | ||||||||||||||
Revenues | $ | 450,875 | $ | 385,276 | $ | 312,630 | |||||||||||
Cost of revenues | 153,065 | 131,678 | 99,836 | ||||||||||||||
Gross profit | 297,810 | 253,598 | 212,794 | ||||||||||||||
Operating expenses | |||||||||||||||||
Sales and marketing | 101,772 | 88,044 | 75,955 | ||||||||||||||
Research and development | 45,748 | 39,038 | 31,024 | ||||||||||||||
General and administrative | 67,340 | 61,305 | 50,119 | ||||||||||||||
Amortization of intangible assets | 11,768 | 10,126 | 5,538 | ||||||||||||||
Total operating expenses | 226,628 | 198,513 | 162,636 | ||||||||||||||
Income from operations | 71,182 | 55,085 | 50,158 | ||||||||||||||
Other income (expense), net | 142 | (1,544) | 2,522 | ||||||||||||||
Income before income taxes | 71,324 | 53,541 | 52,680 | ||||||||||||||
Income tax expense | 16,190 | 8,944 | 7,094 | ||||||||||||||
Net income | $ | 55,134 | $ | 44,597 | $ | 45,586 | |||||||||||
Other comprehensive income (expense) | |||||||||||||||||
Foreign currency translation adjustments | (2,240) | (514) | 1,097 | ||||||||||||||
Unrealized gain (loss) on investments, net of tax of $147, ($34), and ($3) respectively | 441 | (102) | (10) | ||||||||||||||
Reclassification of (gain) loss on investments into earnings, net of tax of ($55), $63, and ($52), respectively | (165) | 190 | (157) | ||||||||||||||
Total other comprehensive income (expense) | (1,964) | (426) | 930 | ||||||||||||||
Comprehensive income | $ | 53,170 | $ | 44,171 | $ | 46,516 | |||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 1.53 | $ | 1.24 | $ | 1.29 | |||||||||||
Diluted | $ | 1.49 | $ | 1.21 | $ | 1.26 | |||||||||||
Weighted average common shares used to compute net income per share | |||||||||||||||||
Basic | 36,117 | 35,928 | 35,226 | ||||||||||||||
Diluted | 36,953 | 36,962 | 36,285 |
![]() | 38 | Form 10-K for the Annual Period ended December 31, 2022 |
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
(in thousands, except shares) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2019 | 34,863,271 | $ | 36 | 1,241,348 | $ | (46,297) | $ | 354,115 | $ | 48,973 | $ | (1,951) | $ | 354,876 | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 17,382 | — | — | 17,382 | |||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock awards | 934,015 | 1 | — | — | 18,591 | — | — | 18,592 | |||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan activity | 61,833 | — | — | — | 3,374 | — | — | 3,374 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (371,902) | — | 371,902 | (18,950) | — | — | — | (18,950) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 45,586 | — | 45,586 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 1,097 | 1,097 | |||||||||||||||||||||||||||||||||||||||
Unrealized loss on investments, net of tax | — | — | — | — | — | — | (10) | (10) | |||||||||||||||||||||||||||||||||||||||
Reclassification of gain on investments into earnings, net of tax | — | — | — | — | — | — | (157) | (157) | |||||||||||||||||||||||||||||||||||||||
Adoption of | — | — | — | — | — | (1,069) | — | (1,069) | |||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | 35,487,217 | $ | 37 | 1,613,250 | $ | (65,247) | $ | 393,462 | $ | 93,490 | $ | (1,021) | $ | 420,721 | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 25,686 | — | — | 25,686 | |||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock awards | 642,417 | 1 | — | — | 9,373 | — | — | 9,374 | |||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan activity | 55,726 | — | — | — | 4,737 | — | — | 4,737 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (176,103) | — | 176,103 | (20,430) | — | — | — | (20,430) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 44,597 | — | 44,597 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (514) | (514) | |||||||||||||||||||||||||||||||||||||||
Unrealized loss on investments, net of tax | — | — | — | — | — | — | (102) | (102) | |||||||||||||||||||||||||||||||||||||||
Reclassification of loss on investments into earnings, net of tax | — | — | — | — | — | — | 190 | 190 | |||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2021 | 36,009,257 | $ | 38 | 1,789,353 | $ | (85,677) | $ | 433,258 | $ | 138,087 | $ | (1,447) | $ | 484,259 | |||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 31,275 | — | — | 31,275 | |||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock awards | 440,427 | — | — | — | 4,908 | — | — | 4,908 | |||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan activity | 70,107 | — | — | — | 6,676 | — | — | 6,676 | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (361,745) | — | 361,745 | (43,215) | — | — | — | (43,215) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 55,134 | — | 55,134 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (2,240) | (2,240) | |||||||||||||||||||||||||||||||||||||||
Unrealized gain on investments, net of tax | — | — | — | — | — | — | 441 | 441 | |||||||||||||||||||||||||||||||||||||||
Reclassification of gain on investments into earnings, net of tax | — | — | — | — | — | — | (165) | (165) | |||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2022 | 36,158,046 | $ | 38 | 2,151,098 | $ | (128,892) | $ | 476,117 | $ | 193,221 | $ | (3,411) | $ | 537,073 |
![]() | 39 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 55,134 | $ | 44,597 | $ | 45,586 | |||||||||||
Reconciliation of net income to net cash provided by operating activities | |||||||||||||||||
Deferred income taxes | (3,732) | 3,881 | 4,241 | ||||||||||||||
Change in earn-out liability | — | — | (85) | ||||||||||||||
Depreciation and amortization of property and equipment | 16,421 | 14,788 | 13,127 | ||||||||||||||
Amortization of intangible assets | 11,768 | 10,126 | 5,538 | ||||||||||||||
Provision for credit losses | 3,359 | 4,717 | 5,660 | ||||||||||||||
Stock-based compensation | 33,399 | 27,574 | 18,936 | ||||||||||||||
Other, net | 220 | 323 | (24) | ||||||||||||||
Changes in assets and liabilities, net of effects of acquisitions | |||||||||||||||||
Accounts receivable | (6,435) | (4,959) | (5,922) | ||||||||||||||
Deferred costs | (10,646) | (9,299) | (3,414) | ||||||||||||||
Other current and non-current assets | 2,632 | (6,181) | 1,201 | ||||||||||||||
Accounts payable | 144 | 2,259 | 1,214 | ||||||||||||||
Accrued compensation | (3,786) | 6,775 | (1,257) | ||||||||||||||
Accrued expenses | (2,829) | 1,017 | 563 | ||||||||||||||
Deferred revenue | 5,965 | 14,483 | 4,432 | ||||||||||||||
Operating leases | (1,562) | 2,792 | (1,234) | ||||||||||||||
Net cash provided by operating activities | 100,052 | 112,893 | 88,562 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Purchases of property and equipment | (19,880) | (19,588) | (16,467) | ||||||||||||||
Purchases of investments | (160,427) | (121,242) | (74,797) | ||||||||||||||
Maturities of investments | 158,937 | 111,193 | 69,461 | ||||||||||||||
Acquisitions of businesses, net | (91,420) | (17,066) | (98,666) | ||||||||||||||
Net cash used in investing activities | (112,790) | (46,703) | (120,469) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Repurchases of common stock | (43,215) | (20,430) | (18,950) | ||||||||||||||
Net proceeds from exercise of options to purchase common stock | 4,908 | 9,374 | 18,592 | ||||||||||||||
Net proceeds from employee stock purchase plan activity | 6,676 | 4,737 | 3,374 | ||||||||||||||
Payment for contingent consideration | — | (2,042) | (688) | ||||||||||||||
Net cash provided by (used in) financing activities | (31,631) | (8,361) | 2,328 | ||||||||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (290) | 31 | 19 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (44,659) | 57,860 | (29,560) | ||||||||||||||
Cash and cash equivalents at beginning of year | 207,552 | 149,692 | 179,252 | ||||||||||||||
Cash and cash equivalents at end of year | $ | 162,893 | $ | 207,552 | $ | 149,692 | |||||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Cash paid for income taxes | $ | 16,076 | $ | 9,979 | $ | 1,656 | |||||||||||
Non-cash financing activities: | |||||||||||||||||
Contingent consideration related to acquisition | 2,000 | — | — | ||||||||||||||
Net purchases of property and equipment on account | (215) | (683) | (551) |
![]() | 40 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 41 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 42 | Form 10-K for the Annual Period ended December 31, 2022 |
Estimated Useful Life | |||||
Internally developed software | 3 years | ||||
Computer equipment | 2-3 years | ||||
Office equipment and furniture | 5-7 years | ||||
Leasehold improvements | Shorter of the useful life of the asset or the remaining term of the lease |
![]() | 43 | Form 10-K for the Annual Period ended December 31, 2022 |
Estimated Useful Life | |||||
Subscriber relationships | 7-10 years | ||||
Developed technology | 3-10 years |
![]() | 44 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 45 | Form 10-K for the Annual Period ended December 31, 2022 |
Standard | Date of Issuance | Description | Date of Required 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. |
![]() | 46 | Form 10-K for the Annual Period ended December 31, 2022 |
2022 Acquisition Activity | |||||||||||||||||||||||
GCommerce | InterTrade | ||||||||||||||||||||||
(in thousands) | Acquisition Date Estimated Fair Value as of September 30, 2022 | Adjustments | Acquisition Date Estimated Fair Value as of December 31, 2022 | Acquisition Date Estimated Fair Value as of December 31, 2022 | |||||||||||||||||||
Cash paid at transaction date | $ | 45,153 | $ | — | $ | 45,153 | $ | 47,165 | |||||||||||||||
Contingent consideration | — | — | — | 2,000 | |||||||||||||||||||
Post-closing adjustments | (64) | — | (64) | (93) | |||||||||||||||||||
Total consideration | $ | 45,089 | $ | — | $ | 45,089 | $ | 49,072 | |||||||||||||||
Estimated fair value of assets and liabilities acquired: | |||||||||||||||||||||||
Cash | $ | 230 | $ | — | $ | 230 | $ | 668 | |||||||||||||||
Accounts receivable | 467 | — | 467 | 1,302 | |||||||||||||||||||
Other current assets | 288 | — | 288 | 1,903 | |||||||||||||||||||
Operating lease right-of-use asset | 934 | — | 934 | — | |||||||||||||||||||
Intangible assets | |||||||||||||||||||||||
Subscriber relationships | 18,225 | (925) | 17,300 | 17,640 | |||||||||||||||||||
Developed technology | 2,025 | 275 | 2,300 | 4,410 | |||||||||||||||||||
Deferred income tax assets | 5,291 | 1,440 | 6,731 | 101 | |||||||||||||||||||
Accounts payable | (266) | — | (266) | (2,337) | |||||||||||||||||||
Accrued compensation | (321) | — | (321) | — | |||||||||||||||||||
Deferred revenue | (262) | — | (262) | (397) | |||||||||||||||||||
Operating lease liability | (934) | — | (934) | — | |||||||||||||||||||
Deferred income tax liabilities | (5,144) | 537 | (4,607) | (6,228) | |||||||||||||||||||
Total fair value of assets and liabilities acquired | $ | 20,533 | $ | 1,327 | $ | 21,860 | $ | 17,062 | |||||||||||||||
Goodwill | $ | 24,556 | $ | (1,327) | $ | 23,229 | $ | 32,010 |
Estimated Useful Life | |||||||||||
GCommerce | InterTrade | ||||||||||
Subscriber relationships | 8.0 years | 8.0 years | |||||||||
Developed technology | 5.0 years | 6.0 years |
![]() | 47 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Recurring revenues: | |||||||||||||||||
Fulfillment | $ | 364,148 | $ | 306,851 | $ | 251,272 | |||||||||||
Analytics | 46,894 | 42,674 | 38,824 | ||||||||||||||
Other | 8,005 | 5,481 | 4,920 | ||||||||||||||
Recurring Revenues | 419,047 | 355,006 | 295,016 | ||||||||||||||
One-time revenues | 31,828 | 30,270 | 17,614 | ||||||||||||||
Total revenue | $ | 450,875 | $ | 385,276 | $ | 312,630 |
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Balance, beginning of year | $ | 14,459 | $ | 11,118 | |||||||
Invoiced set-up fees | 15,457 | 15,931 | |||||||||
Recognized set-up fees | (14,917) | (12,590) | |||||||||
Balance, end of year | $ | 14,999 | $ | 14,459 |
![]() | 48 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Balance, beginning of year | $ | 59,720 | $ | 50,595 | |||||||
Incurred deferred costs | 72,509 | 64,076 | |||||||||
Amortized deferred costs | (62,050) | (54,951) | |||||||||
Balance, end of year | $ | 70,179 | $ | 59,720 |
December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
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 | Level 1 | $ | 73,368 | $ | — | $ | 73,368 | $ | 138,205 | $ | — | $ | 138,205 | |||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | Level 1 | 6,813 | — | 6,813 | 7,268 | — | 7,268 | |||||||||||||||||||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | Level 2 | 44,224 | 375 | 44,599 | 34,984 | 7 | 34,991 | |||||||||||||||||||||||||||||||||||||
U.S. treasury securities | Level 2 | — | — | — | 7,500 | (1) | 7,499 | |||||||||||||||||||||||||||||||||||||
$ | 124,405 | $ | 375 | $ | 124,780 | $ | 187,957 | $ | 6 | $ | 187,963 |
![]() | 49 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Balance, beginning of year | $ | 4,249 | $ | 4,233 | $ | 1,469 | |||||||||||
Provision for credit losses | 3,359 | 4,717 | 5,660 | ||||||||||||||
Write-offs, net of recoveries | (4,542) | (4,790) | (4,319) | ||||||||||||||
Initial allowance for business combination acquired receivables | — | 89 | 354 | ||||||||||||||
Adoption of ASU 2016-13 | — | — | 1,069 | ||||||||||||||
Balance, end of year | $ | 3,066 | $ | 4,249 | $ | 4,233 |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Internally developed software | $ | 49,994 | $ | 44,981 | |||||||
Computer equipment | 30,310 | 29,329 | |||||||||
Leasehold improvements | 16,531 | 16,685 | |||||||||
Office equipment and furniture | 10,981 | 10,972 | |||||||||
Property and equipment, cost | 107,816 | 101,967 | |||||||||
Less: accumulated depreciation and amortization | (72,358) | (70,066) | |||||||||
Total property and equipment, net | $ | 35,458 | $ | 31,901 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Depreciation and amortization expense | $ | 16,421 | $ | 14,788 | $ | 13,127 |
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Balance, beginning of year | $ | 143,663 | $ | 134,853 | |||||||
Additions from business acquisitions | 56,566 | 8,914 | |||||||||
Foreign currency translation | (1,618) | (372) | |||||||||
Remeasurement from provisional purchase accounting amount | (1,327) | 268 | |||||||||
Balance, end of year | $ | 197,284 | $ | 143,663 |
![]() | 50 | Form 10-K for the Annual Period ended December 31, 2022 |
December 31, 2022 | |||||||||||||||||||||||||||||
($ in thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | Weighted Average Remaining Amortization Period | ||||||||||||||||||||||||
Subscriber relationships | $ | 80,101 | $ | (22,255) | $ | (171) | $ | 57,675 | 6.8 years | ||||||||||||||||||||
Developed technology | 40,610 | (9,934) | 1 | 30,677 | 5.4 years | ||||||||||||||||||||||||
$ | 120,711 | $ | (32,189) | $ | (170) | $ | 88,352 | 6.4 years |
December 31, 2021 | |||||||||||||||||||||||||||||
($ in thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | Weighted Average Remaining Amortization Period | ||||||||||||||||||||||||
Subscriber relationships | $ | 61,270 | $ | (29,866) | $ | (1,395) | $ | 30,009 | 6.4 years | ||||||||||||||||||||
Developed technology | 35,316 | (6,738) | — | 28,578 | 6.8 years | ||||||||||||||||||||||||
$ | 96,586 | $ | (36,604) | $ | (1,395) | $ | 58,587 | 6.6 years |
(in thousands) | |||||
2023 | $ | 15,289 | |||
2024 | 14,098 | ||||
2025 | 13,960 | ||||
2026 | 12,956 | ||||
2027 | 12,493 | ||||
Thereafter | 19,556 | ||||
Total future amortization | $ | 88,352 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Operating lease cost | $ | 3,087 | $ | 3,089 | $ | 2,719 | |||||||||||
Variable lease cost | 3,576 | 3,660 | 3,578 | ||||||||||||||
$ | 6,663 | $ | 6,749 | $ | 6,297 |
![]() | 51 | Form 10-K for the Annual Period ended December 31, 2022 |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||
Operating cash flows from operating leases | $ | 4,639 | $ | 3,757 | |||||||
Right-of-use assets obtained in exchange for operating lease liabilities | 934 | 992 |
December 31, 2022 | December 31, 2021 | ||||||||||
Weighted-average remaining lease term | 3.9 years | 4.8 years | |||||||||
Weighted-average discount rate | 4.0 | % | 4.0 | % |
(in thousands) | |||||
2023 | $ | 4,889 | |||
2024 | 4,485 | ||||
2025 | 4,369 | ||||
2026 | 3,764 | ||||
2027 | 1,265 | ||||
Total future payments | 18,772 | ||||
Less: imputed interest | (1,486) | ||||
Total operating lease liabilities | $ | 17,286 |
(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 | ||||||||||||||||||||||||||
2022 Program | August 2022 | July 2024 | 50,000 | 2,992 | N/A | $ | 47,008 |
![]() | 52 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||
(in thousands, except shares and per share amounts) | 2022 | 2021 | 2020 | ||||||||||||||
Number of shares repurchased | 361,745 | 176,103 | 371,902 | ||||||||||||||
Shares repurchased cost | $ | 43,215 | $ | 20,430 | $ | 18,950 | |||||||||||
Average price per repurchased share | $ | 119.46 | $ | 116.01 | $ | 50.95 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Cost of revenues | $ | 8,684 | $ | 6,760 | $ | 3,948 | |||||||||||
Operating expenses | |||||||||||||||||
Sales and marketing | 7,590 | 6,248 | 4,119 | ||||||||||||||
Research and development | 5,634 | 4,384 | 3,626 | ||||||||||||||
General and administrative | 11,491 | 10,182 | 7,243 | ||||||||||||||
$ | 33,399 | $ | 27,574 | $ | 18,936 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Stock options | $ | 1,903 | $ | 2,057 | $ | 2,232 | |||||||||||
PSUs | 7,509 | 6,417 | 3,219 | ||||||||||||||
RSUs | 19,282 | 15,388 | 10,367 | ||||||||||||||
RSAs & DSUs | 437 | 434 | 446 | ||||||||||||||
ESPP | 2,144 | 1,391 | 1,117 | ||||||||||||||
401(k) stock match | 2,124 | 1,887 | 1,555 | ||||||||||||||
$ | 33,399 | $ | 27,574 | $ | 18,936 |
![]() | 53 | Form 10-K for the Annual Period ended December 31, 2022 |
Options (#) | Weighted Average Exercise Price ($/share) | ||||||||||
Outstanding at December 31, 2019 | 1,543,912 | 30.03 | |||||||||
Granted | 127,974 | 59.02 | |||||||||
Exercised | (712,074) | 26.11 | |||||||||
Forfeited | (14,926) | 43.14 | |||||||||
Outstanding at December 31, 2020 | 944,886 | 36.71 | |||||||||
Granted | 53,223 | 105.53 | |||||||||
Exercised | (311,378) | 30.10 | |||||||||
Forfeited | (8,081) | 68.62 | |||||||||
Outstanding at December 31, 2021 | 678,650 | 44.76 | |||||||||
Granted | 56,430 | 122.59 | |||||||||
Exercised | (164,393) | 29.86 | |||||||||
Forfeited | (7,990) | 92.48 | |||||||||
Outstanding at December 31, 2022 | 562,697 | 56.24 |
Year Ended December 31, | |||||||||||||||||
(in thousands, except per share data) | 2022 | 2021 | 2020 | ||||||||||||||
Fair value of options vested | $ | 1,996 | $ | 2,509 | $ | 3,000 | |||||||||||
Intrinsic value of options exercised | 16,705 | 27,713 | 31,737 | ||||||||||||||
Intrinsic value of options outstanding | 40,692 | 66,235 | 67,918 | ||||||||||||||
Weighted-average fair value per share of options granted | 41.34 | 31.31 | 16.18 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Life (in years) | 4.3 | 4.4 | 4.0 | ||||||||||||||
Volatility | 38 | % | 35 | % | 33 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Risk-free interest rate | 2.50 | % | 0.59 | % | 0.99 | % |
![]() | 54 | Form 10-K for the Annual Period ended December 31, 2022 |
(#) | Weighted Average Grant Date Fair Value ($/share) | ||||||||||
Outstanding at December 31, 2019 | 797,546 | 38.80 | |||||||||
Granted | 331,264 | 62.78 | |||||||||
Vested and common stock issued | (222,606) | 36.06 | |||||||||
Forfeited | (167,782) | 30.09 | |||||||||
Outstanding at December 31, 2020 | 738,422 | 52.37 | |||||||||
Granted | 314,290 | 101.85 | |||||||||
Vested and common stock issued | (331,669) | 44.14 | |||||||||
Forfeited | (18,883) | 66.35 | |||||||||
Outstanding at December 31, 2021 | 702,160 | 78.03 | |||||||||
Granted | 312,880 | 126.44 | |||||||||
Vested and common stock issued | (276,872) | 64.12 | |||||||||
Forfeited | (26,010) | 99.37 | |||||||||
Outstanding at December 31, 2022 | 712,158 | 103.93 |
Year Ended December 31, | |||||||||||||||||
(in thousands, except share data) | 2022 | 2021 | 2020 | ||||||||||||||
Amounts for shares purchased | $ | 6,676 | $ | 4,737 | $ | 3,374 | |||||||||||
Shares purchased | 70,107 | 55,726 | 61,833 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Life (in years) | 0.5 | 0.5 | 0.5 | ||||||||||||||
Volatility | 42 | % | 32 | % | 43 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Risk-free interest rate | 1.27 | % | 0.07 | % | 0.96 | % |
![]() | 55 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Current | |||||||||||||||||
Federal | $ | 13,881 | $ | 1,559 | $ | — | |||||||||||
State | 4,149 | 1,890 | 1,249 | ||||||||||||||
Foreign | 1,990 | 1,610 | 1,608 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | (2,530) | 4,294 | 4,462 | ||||||||||||||
State | (751) | (88) | 244 | ||||||||||||||
Foreign | (549) | (321) | (469) | ||||||||||||||
$ | 16,190 | $ | 8,944 | $ | 7,094 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
U.S. statutory federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Increase (decrease) resulting from: | |||||||||||||||||
U.S. state income taxes, net of federal tax effect | 4.6 | 4.5 | 4.5 | ||||||||||||||
Tax impact of stock activity | (4.7) | (12.8) | (12.9) | ||||||||||||||
Nondeductible compensation | 3.5 | 5.0 | 1.8 | ||||||||||||||
Research and development credit | (1.5) | (1.1) | (0.6) | ||||||||||||||
Foreign derived intangible income | (1.4) | (1.3) | (1.3) | ||||||||||||||
Other | 1.2 | 1.4 | 1.0 | ||||||||||||||
Effective tax rate | 22.7 | % | 16.7 | % | 13.5 | % |
![]() | 56 | Form 10-K for the Annual Period ended December 31, 2022 |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Deferred tax assets | |||||||||||
Net operating loss and credit carryforwards | $ | 9,970 | $ | 4,828 | |||||||
Stock-based compensation expense | 5,084 | 3,934 | |||||||||
Accrued expenses | 4,469 | 5,174 | |||||||||
Operating lease liabilities | 4,384 | 5,235 | |||||||||
Research and development capitalized | 9,591 | — | |||||||||
Other deferred tax assets | 2,408 | 2,778 | |||||||||
Gross deferred tax assets | 35,906 | 21,949 | |||||||||
Less: valuation allowance | (1,873) | (1,815) | |||||||||
Total net deferred tax assets | $ | 34,033 | $ | 20,134 | |||||||
Deferred tax liabilities | |||||||||||
Deferred costs | $ | (17,696) | $ | (15,126) | |||||||
Right-of-use assets | (2,338) | (2,787) | |||||||||
Depreciation and amortization | (20,282) | (8,820) | |||||||||
Other deferred tax liabilities | (909) | (364) | |||||||||
Total deferred tax liabilities | (41,225) | (27,097) | |||||||||
Net deferred tax liabilities | $ | (7,192) | $ | (6,963) |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Investment income | $ | 1,670 | $ | 278 | $ | 1,208 | |||||||||||
Realized gain (loss) from foreign currency on cash and investments held | (1,026) | (1,456) | 1,753 | ||||||||||||||
Change in earn-out liability | — | — | (85) | ||||||||||||||
Other expense, net | (502) | (366) | (354) | ||||||||||||||
Total other income (expense), net | $ | 142 | $ | (1,544) | $ | 2,522 |
![]() | 57 | Form 10-K for the Annual Period ended December 31, 2022 |
Year Ended December 31, | |||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2020 | ||||||||||||||
Numerator | |||||||||||||||||
Net income | $ | 55,134 | $ | 44,597 | $ | 45,586 | |||||||||||
Denominator | |||||||||||||||||
Weighted average common shares outstanding, basic | 36,117 | 35,928 | 35,226 | ||||||||||||||
Options to purchase common stock | 382 | 529 | 611 | ||||||||||||||
PSUs, RSUs, RSAs, and DSUs | 454 | 505 | 448 | ||||||||||||||
Weighted average common shares outstanding, diluted | 36,953 | 36,962 | 36,285 | ||||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 1.53 | $ | 1.24 | $ | 1.29 | |||||||||||
Diluted | $ | 1.49 | $ | 1.21 | $ | 1.26 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Anti-dilutive shares | 75 | 31 | 26 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Retirement contributions | $ | 5,386 | $ | 4,790 | $ | 3,889 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Domestic revenue | 84 | % | 84 | % | 85 | % |
![]() | 58 | Form 10-K for the Annual Period ended December 31, 2022 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
International property and equipment | 13 | % | 12 | % |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Foundation contributions | $ | 2,750 | $ | 2,400 | $ | 1,800 |
![]() | 59 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 60 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 61 | Form 10-K for the Annual Period ended December 31, 2022 |
![]() | 62 | Form 10-K for the Annual Period ended December 31, 2022 |
Incorporated By Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Date of First Filing | Exhibit Number | Filed Herewith | |||||||||||||||||||||||||||
3.1 | 8-K | 05/21/2020 | 3.2 | |||||||||||||||||||||||||||||
3.2 | X | |||||||||||||||||||||||||||||||
3.3 | X | |||||||||||||||||||||||||||||||
4.1 | 10-K | 2/23/2021 | 4.1 | |||||||||||||||||||||||||||||
10.1 | 10-K | 02/20/2015 | 10.6 | |||||||||||||||||||||||||||||
10.2 | 8-K | 02/17/2012 | 10.2 | |||||||||||||||||||||||||||||
10.3 | X | |||||||||||||||||||||||||||||||
10.4 | 8-K | 02/17/2012 | 10.4 | |||||||||||||||||||||||||||||
10.5 | X | |||||||||||||||||||||||||||||||
10.6 | 10-Q | 05/08/2012 | 10.6 | |||||||||||||||||||||||||||||
10.7 | X | |||||||||||||||||||||||||||||||
10.8 | 10-Q | 04/26/2019 | 10.2 | |||||||||||||||||||||||||||||
10.9 | S-1/A | 01/11/2010 | 10.18 | |||||||||||||||||||||||||||||
10.10 | S-1/A | 01/11/2010 | 10.19 | |||||||||||||||||||||||||||||
10.11 | 8-K | 02/03/2016 | 10.2 | |||||||||||||||||||||||||||||
10.12 | 8-K | 02/18/2020 | 10.1 | |||||||||||||||||||||||||||||
10.13 | 8-K | 02/18/2020 | 10.2 | |||||||||||||||||||||||||||||
10.14 | X | |||||||||||||||||||||||||||||||
21.1 | X | |||||||||||||||||||||||||||||||
23.1 | X | |||||||||||||||||||||||||||||||
24.1 | Power of Attorney (included on signature page) | X | ||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||
![]() | 63 | Form 10-K for the Annual Period ended December 31, 2022 |
Incorporated By Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Date of First Filing | Exhibit Number | Filed Herewith | |||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||
101 | Interactive Data Files Pursuant to Rule 405 of Regulation S-T | X | ||||||||||||||||||||||||||||||
104 | The cover page from the Annual Report on Form 10-K for the year ended December 31, 2022, formatted in Inline XBRL | X |
![]() | 64 | Form 10-K for the Annual Period ended December 31, 2022 |
Dated: February 21, 2023 | SPS COMMERCE, INC. | |||||||
By: | /s/ ARCHIE BLACK | |||||||
Archie Black | ||||||||
Chief Executive Officer |
Name and Signature | Title | |||||||
/s/ ARCHIE BLACK | Chief Executive Officer and Director | |||||||
Archie Black | (principal executive officer) | |||||||
/s/ KIMBERLY NELSON | Executive Vice President and Chief Financial Officer | |||||||
Kimberly Nelson | (principal financial and accounting officer) | |||||||
/s/ JAMES RAMSEY | Director | |||||||
James Ramsey | ||||||||
/s/ MARTY RÉAUME | Director | |||||||
Marty Réaume | ||||||||
/s/ TAMI RELLER | Director | |||||||
Tami Reller | ||||||||
/s/ PHILIP SORAN | Director | |||||||
Philip Soran | ||||||||
/s/ ANNE SEMPOWSKI WARD | Director | |||||||
Anne Sempowski Ward | ||||||||
/s/ SVEN WEHRWEIN | Director | |||||||
Sven Wehrwein |
![]() | 65 | Form 10-K for the Annual Period ended December 31, 2022 |
Name of Optionee: **[ ] | ||||||||
No. of Shares Covered: **[ ] | Date of Grant: , 20 | |||||||
Exercise Price Per Share: $**[ ] | Expiration Date: , 20 | |||||||
Vesting and Exercise Schedule: | ||||||||
Dates | Portion of Shares as to Which Option Becomes Vested and Exercisable |
OPTIONEE: | SPS COMMERCE, INC. | |||||||||||||||||||
By: | ||||||||||||||||||||
Title: |
1. | Non-Qualified Stock Option. This Option is not intended to be an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code and will be interpreted accordingly. | ||||
2. | Vesting and Exercise Schedule. This Option will vest and become exercisable as to the number of Shares and on the dates specified in the Vesting and Exercise Schedule on the cover page to this Agreement, so long as your Service to the Company does not end. The Vesting and Exercise Schedule is cumulative, meaning that to the extent the Option has not already been exercised and has not expired, terminated or been cancelled, you or the person otherwise entitled to exercise the Option as provided in this Agreement may at any time purchase all or any portion of the Shares that may then be purchased under that Schedule. **[Notwithstanding the foregoing, if and to the extent this Option is continued, assumed or replaced in connection with a Change in Control that constitutes a Corporate Transaction as provided in Section 12(b)(1) of the Plan, and if within one year after such Corporate Transaction you experience an involuntary termination of Service for reasons other than Cause, then this Option shall immediately become exercisable in full and shall remain exercisable for one year following your termination of Service.] Notwithstanding the foregoing: (a) This Option shall become 100% vested and fully exercisable, effective as of the date of your Retirement, in the event that (A) your continuous Service terminates by reason of your Retirement and (B) the Company does not provide you with written notice on or before the anticipated Retirement date that the Company intends or has grounds to terminate your continuous Service for Cause. (b) The accelerated vesting and exercisability of this Option upon your Retirement will be conditioned on (A) your timely execution (and non-rescission) of a Release, and (B) your continued compliance with your obligations under the Confidentiality Agreement. Notwithstanding anything to the contrary in this Agreement, if you breach any provision of the Confidentiality Agreement, whether before or after your Retirement, then you shall immediately forfeit all outstanding Options and any right to exercise the Options. (c) Definitions. I.“Confidentiality Agreement” means the At Will/ Confidentiality Agreement Regarding Certain Terms and Conditions of Employment. II.“Release” means a standard release of claims in the form provided by the Company at the time of Retirement, which must be executed and become irrevocable within forty-five (45) days following the date of Retirement. If you do not timely execute and deliver the Release to the Company, or if you subsequently revoke the Release, then you will automatically forfeit the unvested portion of this Option effective as of the date of Retirement. III.You will be considered to incur a “Retirement” if you voluntarily terminate Service and meet all of the following requirements at the time or such termination: (A) you are at least fifty-eight (58) years old and have completed ten (10) years of continuous Service with the Company or you are at least sixty-five (65) years old (without regard to years of Service); (B) you have provided the Company not less than six (6) months prior written notice of your intent to retire; (C) you continue to perform full-time Service for the Company (i) materially consistent with your full-time responsibilities and services, performed prior to the date on which you provided written notice of your Retirement, or (ii) such other substantive services as agreed upon between you and the Company, in either case through the date of your termination of Service; (D) the date of your termination of Service occurs on the retirement date that you have previously identified (and such termination date is no less than six (6) months after the date on which you provided written notice of Retirement); provided, however, the Company may in its sole discretion designate a termination of Service date that is after the date on which you provide written notice of your intent to retire to the Company and prior to the retirement date identified by you; and (E) the Company does not provide you with written notice on or before the anticipated Retirement date that the Company intends or has grounds to terminate your continuous Service for Cause. In addition, vesting and exercisability of this Option may be accelerated during the term of the Option under the circumstances described in Sections 12(b)(2) and 12(c) of the Plan, and at the discretion of the Committee in accordance with Section 3(b)(2) of the Plan. |
3. | Expiration. This Option will expire and will no longer be exercisable at 5:00 p.m. Central Time on the earliest of: |
(a) | The expiration date specified on the cover page of this Agreement; |
(b) | Upon your termination of Service for Cause; |
(c) | Upon the expiration of any applicable period specified in Section 6(e) of the Plan or Section 2 of this Agreement during which this Option may be exercised after your termination of Service; or |
(d) | The date (if any) fixed for termination or surrender of this Option pursuant to Sections 12(b)(2), 12(b)(3), 12(c) or 12(d) of the Plan. |
4. | Service Requirement. Except as otherwise provided in Section 6(e) of the Plan or Section 2 of this Agreement, this Option may be exercised only while you continue to provide Service to the Company or any Affiliate, and only if you have continuously provided such Service since the date this Option was granted. |
* | Unless the context indicates otherwise, terms that are not defined in this Agreement shall have the meaning set forth in the Plan as it currently exists or as it is amended in the future. |
5. | Exercise of Option. Subject to Section 4, the vested and exercisable portion of this Option may be exercised at any time during the Option term by delivering a written notice of exercise to the Company at its principal executive office, and by providing for payment of the exercise price of the Shares being acquired and any related withholding taxes. The notice of exercise, in the form attached to this Agreement, shall be provided to the Company’s Chief Financial Officer. The notice shall state the number of Shares to be purchased, and shall be signed by the person exercising the Option. If you are not the person exercising the Option, the person submitting the notice also must submit appropriate proof of his/her right to exercise the Option. |
6. | Payment of Exercise Price. When you submit your notice of exercise, you must include payment of the exercise price of the Shares being purchased through one or a combination of the following methods: |
(a) | Cash (including personal check, cashier’s check or money order); |
(b) | To the extent permitted by the Committee, by means of a broker-assisted cashless exercise in which you irrevocably instruct your broker to deliver proceeds of a sale of all or a portion of the Shares to be issued pursuant to the exercise to the Company in payment of the exercise price of such Shares; or |
(c) | By delivery to the Company of Shares (by actual delivery or attestation of ownership in a form approved by the Company) already owned by you that are not subject to any security interest and that have an aggregate Fair Market Value on the date of exercise equal to the exercise price of the Shares being purchased; or |
(d) | By authorizing the Company to retain, from the total number of Shares as to which the Option is being exercised, that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of Shares as to which the Option is being exercised. |
7. | Withholding Taxes. You may not exercise this Option in whole or in part unless you make arrangements acceptable to the Company for payment of any federal, state, local or foreign withholding taxes that may be due as a result of the exercise of this Option. You hereby authorize the Company (or any Affiliate) to withhold from payroll or other amounts payable to you any sums required to satisfy such withholding tax obligations, and otherwise agree to satisfy such obligations in accordance with the provisions of Section 14 of the Plan. If you wish to satisfy some or all of such withholding tax obligations by delivering Shares you already own or by having the Company retain a portion of the Shares being acquired upon exercise of the Option, you must make such a request which shall be subject to approval by the Company. Delivery of Shares upon exercise of this Option is subject to the satisfaction of applicable withholding tax obligations. |
8. | Delivery of Shares. As soon as practicable after the Company receives the notice and exercise price provided for above, and has determined that all conditions to exercise, including Sections 7 and 9 of this Agreement, have been satisfied, it shall deliver to the person exercising the Option, in the name of such person, the Shares being purchased, as evidenced by issuance of a stock certificate or certificates, electronic delivery of such Shares to a brokerage account designated by such person, or book-entry registration of such Shares with the Company’s transfer agent. The Company shall pay any original issue or transfer taxes with respect to the issue or transfer of the Shares and all fees and expenses incurred by it in connection therewith. All Shares so issued shall be fully paid and nonassessable. |
9. | Compliance with Laws. This Option may be exercised only if the issuance of Shares upon such exercise complies with all applicable legal requirements, including compliance with the provisions of applicable federal and state securities laws. |
10. | Transfer of Option. During your lifetime, only you (or your guardian or legal representative in the event of legal incapacity) may exercise this Option except in the case of a transfer described below. You may not assign or transfer this Option except (i) for a transfer upon your death in accordance with your will, by the laws of descent and distribution or pursuant to a beneficiary designation submitted in accordance with Section 6(d) of the Plan, (ii) pursuant to a qualified domestic relations order, or (iii) with the prior written approval of the Company, by gift, in a form accepted by the Company, to a permitted transferred under General Instruction A(5) to Form S-8 under the Securities Act. The Option held by any such transferee will continue to be subject to the same terms and conditions that were applicable to the Option immediately prior to its transfer and may be exercised by such transferee as and to the extent that the Option has become exercisable and has not terminated in accordance with the provisions of the Plan and this Agreement. |
11. | No Stockholder Rights Before Exercise. Neither you nor any permitted transferee of this Option will have any of the rights of a stockholder of the Company with respect to any Shares subject to this Option until a certificate evidencing such Shares has been issued, electronic delivery of such Shares has been made to your designated brokerage account, or an appropriate book entry in the Company’s stock register has been made. No adjustments shall be made for dividends or other rights if the applicable record date occurs before your stock certificate has been issued, electronic delivery of your Shares has been made to your designated brokerage account, or an appropriate book entry in the Company’s stock register has been made, except as otherwise described in the Plan. |
12. | Governing Plan Document. This Agreement and Option are subject to all the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan. If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern. |
13. | Choice of Law. This Agreement will be interpreted and enforced under the laws of the state of Delaware (without regard to its conflicts or choice of law principles). |
14. | Binding Effect. This Agreement will be binding in all respects on your heirs, representatives, successors and assigns , and on the successors and assigns of the Company. |
15. | Other Agreements. You agree that in connection with the exercise of this Option, you will execute such documents as may be necessary to become a party to any stockholder, voting or similar agreements as the Company may require. |
16. | Restrictive Legends. The Company may place a legend or legends on any certificate representing Shares issued upon the exercise of this Option summarizing transfer and other restrictions to which the Shares may be subject under applicable securities laws, other provisions of this Agreement, or other agreements contemplated by Section 15 of this Agreement. You agree that in order to ensure compliance with the restrictions referred to in this Agreement, the Company may issue appropriate “stop transfer” instructions to its transfer agent. |
Name: | ||||||||||||||
Date of Grant of Option: | ||||||||||||||
Exercise Price Per Share: | ||||||||||||||
Number of Shares With Respect to Which the Option is Hereby Exercised: | ||||||||||||||
Total Exercise Price: |
¨ | Enclosed with this Notice is a check, cashier’s check or money order in the amount of the Total Exercise Price. |
¨ | Enclosed with this Notice is a copy of my irrevocable instruction to my broker, , to deliver to the Company proceeds of the sale of some or all of the Shares being acquired in an amount equal to the Total Exercise Price. |
¨ | Enclosed with this Notice is a certificate evidencing unencumbered Shares (duly endorsed in blank) having an aggregate Fair Market Value (as defined in the Plan) equal to or in excess of the Total Exercise Price or an affidavit of ownership in the form of Exhibit A attached hereto attesting to my ownership of unencumbered Shares having an aggregate Fair Market Value (as defined in the Plan) equal to or in excess of the Total Exercise Price. |
¨ | I elect to pay the Total Exercise Price through a reduction in the number of Shares to be delivered to me upon this exercise of the Option. |
• | I will provide for the payment to the Company, in a manner agreed to by the Company, of the amount of any required withholding taxes in connection with this exercise as provided in Section 14 of the Plan. |
• | I am the owner of all Shares delivered with this Notice or attested to on the attached affidavit of ownership, free and clear of all liens, security interests and other restrictions or encumbrances. |
¨ | Issue a certificate (the “Certificate”) for the Shares in the name of the person(s) indicated below and deliver the Certificate to the address indicated: |
Name(s) in Which to Issue Certificate: | ||||||||||||||
Address to Which Certificate Should be Delivered: | ||||||||||||||
Principal Mailing Address for Holder of the Certificate (if different from above): | ||||||||||||||
¨ | Electronic delivery of the Shares to my brokerage account as indicated below: |
Name of Brokerage Firm: | ||||||||||||||
My Account Number: | ||||||||||||||
Brokerage Firm DWAC Participant Number: |
¨ | Create a book-entry registration of the Shares in the name of the person(s) indicated below: |
Name(s) in Which to Create Book-Entry Registration: | ||||||||||||||
Mailing Address for Book-Entry Holders: | ||||||||||||||
¨ | the Total Exercise Price for the option shares |
¨ | federal income tax withholding in excess of the minimum required withholding amount |
1. | I beneficially own shares of Company common stock (the “Swap Shares”) as of the date hereof. These Swap Shares are: |
¨ | Held in my name individually and a photocopy of the stock certificate evidencing my ownership is attached. |
¨ | Held in my name and as joint tenants and a photocopy of the stock certificate evidencing ownership is attached. |
¨ | Held in a brokerage account in the name of . A photocopy of a brokerage statement of account, dated within the preceding two months and showing evidence of ownership of Company stock, is attached. (The option holder may block out information not relevant to Company stock ownership on the account statement.) |
2. | The Swap Shares are held by me as described above and are not held for my benefit by a Trustee or custodian in the SPS Commerce, Inc. 401(k) Retirement Savings Plan, in an IRA account or in any other type of employee benefit or tax deferral plan. |
Date | Signature |
Name of Participant: **[_______________________] | ||||||||
Number of Units: **[_______] | Grant Date: __________, 20__ | |||||||
Vesting Schedule: | ||||||||
Vesting Dates | Number of Units that Vest |
Name of Participant: | ||||||||
Target Number of PSUs: | ||||||||
Maximum Number of PSUs: | ||||||||
Grant Date: | ||||||||
Performance Period: | January 1, 20__ – December 31, 20__ | |||||||
Vesting Schedule: | The number of PSUs determined in accordance with Exhibit A to have been earned as of the end of the Performance Period will vest* on the date the Company’s Compensation Committee certifies such performance results, which shall be no later than March 15, 20__. | |||||||
Performance Goals: | See Exhibit A | |||||||
* Assumes your Service has been continuous from the Grant Date to the vesting date. |
Company TSR as Compared to Index TSR | Performance Multiplier Percentage | ||||
Company TSR is more than 10 percentage points less than Index TSR | 0% | ||||
Company TSR is 10 percentage points less than Index TSR | 40% | ||||
Company TSR is equal to Index TSR | 80% | ||||
Company TSR is 5 percentage points greater than Index TSR | 100% | ||||
Company TSR is 30 percentage points greater than Index TSR | 200% |
Adopted: | 26 October 2022 | ||||
Effective: | Immediately prior to 2023 Annual Meeting of Stockholders |
Audit Committee: | $ 20,000 | ||||
Compensation Committee: | 15,000 | ||||
Finance and Strategy Committee: | 10,000 | ||||
Governance and Nominating Committee: | 8,000 |
Audit Committee: | $ 10,000 | ||||
Compensation Committee: | 7,000 | ||||
Finance and Strategy Committee: | 5,000 | ||||
Governance and Nominating Committee: | 4,000 |
Name of Company | State or Other Jurisdiction of Incorporation/Organization | ||||
SPS International, Inc. | Delaware | ||||
SPS Commerce Australia Pty Ltd | Australia | ||||
SPS Commerce Canada, Ltd. | Canada | ||||
Intertrade Systems, Inc. | Canada | ||||
SPS Commerce Netherlands B.V. | Netherlands | ||||
SPS Europe Limited | England and Wales | ||||
SPS Ukraine LLC | Ukraine | ||||
SPS Commerce Philippines Inc. | Philippines | ||||
D Masons Software, LLC | Florida | ||||
Genius Central Systems LLC | Delaware | ||||
GCommerce, Inc. | Delaware | ||||
AutoSoez Commerce, Inc. | Delaware | ||||
GCommerce Data Cloud, Inc. | Delaware | ||||
GCommerce Fulfillment Cloud, LLC | Delaware | ||||
SPS Hong Kong Limited | Hong Kong |