SPS Commerce (SPSC) 10-Q25 Jul 242024 Q2 Quarterly reportFinancial data

Company Profile

COVER

COVER - shares	6 Months Ended
COVER - shares	Jun. 30, 2024	Jul. 18, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-34702
Entity Registrant Name	SPS COMMERCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-2015127
Entity Address, Address Line One	333 South Seventh Street
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55402
City Area Code	612
Local Phone Number	435-9400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	SPSC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,095,836
Entity Central Index Key	0001092699
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 240,232	$ 219,081
Short-term investments	31,554	56,359
Accounts receivable	59,355	50,160
Allowance for credit losses	(3,958)	(3,320)
Accounts receivable, net	55,397	46,840
Deferred costs	64,318	62,403
Other assets	15,437	16,758
Total current assets	406,938	401,441
Property and equipment, net	35,083	36,043
Operating lease right-of-use assets	7,076	7,862
Goodwill	268,872	249,176
Intangible assets, net	107,519	107,344
Other assets
Deferred costs, non-current	20,610	20,347
Deferred income tax assets	7,347	505
Other assets, non-current	1,076	1,126
Total assets	854,521	823,844
Current liabilities
Accounts payable	5,877	7,420
Accrued compensation	32,236	41,588
Accrued expenses	9,446	8,014
Deferred revenue	76,393	69,187
Operating lease liabilities	4,594	4,460
Total current liabilities	128,546	130,669
Other liabilities
Deferred revenue, non-current	7,111	6,930
Operating lease liabilities, non-current	7,751	9,569
Deferred income tax liabilities	7,012	8,972
Other liabilities, non-current	680	229
Total liabilities	151,100	156,369
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	0	0
Common stock, $0.001 par value; 110,000,000 shares authorized; 39,419,726 and 38,971,146 shares issued; and 37,086,627 and 36,820,048 shares outstanding, respectively	39	39
Treasury stock, at cost; 2,333,099 and 2,151,098 shares, respectively	(162,187)	(128,892)
Additional paid-in capital	574,842	537,061
Retained earnings	295,080	259,045
Accumulated other comprehensive gain (loss)	(4,353)	222
Total stockholders’ equity	703,421	667,475
Total liabilities and stockholders’ equity	$ 854,521	$ 823,844

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	110,000,000	110,000,000
Common stock, shares issued (in shares)	39,419,726	38,971,146
Common stock, shares outstanding (in shares)	37,086,627	36,820,048
Treasury stock, at cost (in shares)	2,333,099	2,151,098

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues	$ 153,596	$ 130,416	$ 303,172	$ 256,284
Cost of revenues	52,018	44,544	103,505	87,508
Gross profit	101,578	85,872	199,667	168,776
Operating expenses
Sales and marketing	35,691	30,349	72,123	59,433
Research and development	14,366	13,318	30,375	25,880
General and administrative	23,516	21,693	49,423	42,369
Amortization of intangible assets	4,840	3,479	9,178	7,330
Total operating expenses	78,413	68,839	161,099	135,012
Income from operations	23,165	17,033	38,568	33,764
Other income, net	4,056	1,882	7,188	3,157
Income before income taxes	27,221	18,915	45,756	36,921
Income tax expense	9,189	4,233	9,721	6,950
Net income	18,032	14,682	36,035	29,971
Other comprehensive income (expense)
Foreign currency translation adjustments	(901)	1,615	(4,218)	1,520
Unrealized gain on investments, net of tax of $164, $136, $335 and $269, respectively	491	408	1,004	806
Reclassification of gain on investments into earnings, net of tax of $(238), $(127), $(454) and $(252), respectively	(715)	(381)	(1,361)	(757)
Total other comprehensive income (expense)	(1,125)	1,642	(4,575)	1,569
Comprehensive income	$ 16,907	$ 16,324	$ 31,460	$ 31,540
Net income per share
Basic (in dollars per share)	$ 0.49	$ 0.40	$ 0.97	$ 0.82
Diluted (in dollars per share)	$ 0.48	$ 0.39	$ 0.96	$ 0.80
Weighted average common shares used to compute net income per share
Basic (in shares)	37,078	36,593	37,063	36,511
Diluted (in shares)	37,683	37,426	37,690	37,327

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Unrealized gain (loss) on investments, tax	$ 164	$ 136	$ 335	$ 269
Reclassification of gain on investments into earnings, tax	$ (238)	$ (127)	$ (454)	$ (252)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Gain (Loss)
Beginning balance (in shares) at Dec. 31, 2022		36,158,046
Beginning balance at Dec. 31, 2022	$ 537,073	$ 38	$ (128,892)	$ 476,117	$ 193,221	$ (3,411)
Beginning balance (in shares) at Dec. 31, 2022			2,151,098
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	23,412			23,412
Shares issued pursuant to stock awards (in shares)		450,548
Shares issued pursuant to stock awards	4,820	$ 1		4,819
Employee stock purchase plan activity (in shares)		38,225
Employee stock purchase plan activity	4,136			4,136
Net income	29,971				29,971
Foreign currency translation adjustments	1,520					1,520
Unrealized gain on investments, net of tax	806					806
Reclassification of gain on investments into earnings, net of tax	(757)					(757)
Ending balance (in shares) at Jun. 30, 2023		36,646,819
Ending balance at Jun. 30, 2023	600,981	$ 39	$ (128,892)	508,484	223,192	(1,842)
Ending balance (in shares) at Jun. 30, 2023			2,151,098
Beginning balance (in shares) at Mar. 31, 2023		36,532,756
Beginning balance at Mar. 31, 2023	565,889	$ 39	$ (128,892)	489,716	208,510	(3,484)
Beginning balance (in shares) at Mar. 31, 2023			2,151,098
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	12,237			12,237
Shares issued pursuant to stock awards (in shares)		78,387
Shares issued pursuant to stock awards	2,636			2,636
Employee stock purchase plan activity (in shares)		35,676
Employee stock purchase plan activity	3,895			3,895
Net income	14,682				14,682
Foreign currency translation adjustments	1,615					1,615
Unrealized gain on investments, net of tax	408					408
Reclassification of gain on investments into earnings, net of tax	(381)					(381)
Ending balance (in shares) at Jun. 30, 2023		36,646,819
Ending balance at Jun. 30, 2023	$ 600,981	$ 39	$ (128,892)	508,484	223,192	(1,842)
Ending balance (in shares) at Jun. 30, 2023			2,151,098
Beginning balance (in shares) at Dec. 31, 2023	36,820,048	36,820,048
Beginning balance at Dec. 31, 2023	$ 667,475	$ 39	$ (128,892)	537,061	259,045	222
Beginning balance (in shares) at Dec. 31, 2023	2,151,098		2,151,098
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 30,078			30,078
Shares issued pursuant to stock awards (in shares)		415,997
Shares issued pursuant to stock awards	2,315			2,315
Employee stock purchase plan activity (in shares)		32,583
Employee stock purchase plan activity	5,219			5,219
Net income	36,035				36,035
Foreign currency translation adjustments	(4,218)					(4,218)
Unrealized gain on investments, net of tax	1,004					1,004
Reclassification of gain on investments into earnings, net of tax	(1,361)					(1,361)
Repurchases of common stock, net of costs (in shares)		(204,875)	204,875
Repurchases of common stock, net of costs	(37,483)		$ (37,483)
Reissuances of treasury stock (in shares)		22,874	(22,874)
Reissuances of treasury stock	$ 4,357		$ 4,188	169
Ending balance (in shares) at Jun. 30, 2024	37,086,627	37,086,627
Ending balance at Jun. 30, 2024	$ 703,421	$ 39	$ (162,187)	574,842	295,080	(4,353)
Ending balance (in shares) at Jun. 30, 2024	2,333,099		2,333,099
Beginning balance (in shares) at Mar. 31, 2024		37,049,001
Beginning balance at Mar. 31, 2024	$ 682,965	$ 39	$ (148,892)	557,998	277,048	(3,228)
Beginning balance (in shares) at Mar. 31, 2024			2,260,578
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	10,793			10,793
Shares issued pursuant to stock awards (in shares)		79,962
Shares issued pursuant to stock awards	1,054			1,054
Employee stock purchase plan activity (in shares)		30,185
Employee stock purchase plan activity	4,828			4,828
Net income	18,032				18,032
Foreign currency translation adjustments	(901)					(901)
Unrealized gain on investments, net of tax	491					491
Reclassification of gain on investments into earnings, net of tax	(715)					(715)
Repurchases of common stock, net of costs (in shares)		(95,395)	95,395
Repurchases of common stock, net of costs	(17,483)		$ (17,483)
Reissuances of treasury stock (in shares)		22,874	(22,874)
Reissuances of treasury stock	$ 4,357		$ 4,188	169
Ending balance (in shares) at Jun. 30, 2024	37,086,627	37,086,627
Ending balance at Jun. 30, 2024	$ 703,421	$ 39	$ (162,187)	$ 574,842	$ 295,080	$ (4,353)
Ending balance (in shares) at Jun. 30, 2024	2,333,099		2,333,099

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income	$ 36,035	$ 29,971
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	(8,172)	(8,654)
Depreciation and amortization of property and equipment	9,377	9,289
Amortization of intangible assets	9,178	7,330
Provision for credit losses	3,646	2,491
Stock-based compensation	31,512	24,661
Other, net	(907)	1,143
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable	(11,407)	(9,937)
Deferred costs	(1,996)	(5,136)
Other assets and liabilities	1,899	3,614
Accounts payable	(1,450)	(4,414)
Accrued compensation	(10,763)	(2,910)
Accrued expenses	1,489	(728)
Deferred revenue	5,965	9,909
Operating leases	(900)	(959)
Net cash provided by operating activities	63,506	55,670
Cash flows from investing activities
Purchases of property and equipment	(8,592)	(9,769)
Purchases of investments	(78,994)	(68,579)
Maturities of investments	105,000	60,000
Acquisition of businesses, net	(29,343)	0
Net cash used in investing activities	(11,929)	(18,348)
Cash flows from financing activities
Repurchases of common stock	(37,483)	0
Net proceeds from exercise of options to purchase common stock	2,314	4,819
Net proceeds from employee stock purchase plan activity	5,219	4,136
Net cash provided by (used in) financing activities	(29,950)	8,955
Effect of foreign currency exchange rate changes	(476)	94
Net increase in cash and cash equivalents	21,151	46,371
Cash and cash equivalents at beginning of period	219,081	162,893
Cash and cash equivalents at end of period	$ 240,232	$ 209,264

General

General	6 Months Ended
General	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	General Business Description SPS Commerce is a leading provider of cloud-based supply chain management services across our global retail network. Our products make it easier for retailers, grocers, distributors, suppliers, and logistics firms to communicate and collaborate by simplifying how they manage and share item, inventory, order and sales data across omnichannel retail channels. We deliver our products using a full-service model, which includes industry-leading technology and a team of experts that optimize, update, and operate the technology on customers' behalf. Our products enable customers to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. This interim financial information has been prepared under the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (“SEC”). We have included all normal recurring adjustments considered necessary to provide a fair presentation of our financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. Use of Estimates Preparing financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant Accounting Policies There were no material changes in our significant accounting policies during the six months ended June 30, 2024 . See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 , as filed with the SEC, for additional information regarding our significant accounting policies. Accounting Pronouncements Recently Issued and Adopted Standard Date of Issuance Description Date of Adoption Effect on the Financial Statements ASU 2023-07 , Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures November 2023 This amendment requires that an entity disclose significant segment expenses impacting profit and loss that are regularly provided to the chief operating decision maker. 2024 The adoption will result in additional disclosure in our Annual Report on Form 10-K for the year ended December 31, 2024. ASU 2023-09 , Income Taxes (Topic 740) - Improvements to Income Tax Disclosures December 2023 This amendment requires that an entity disclose specific categories in the effective tax rate reconciliation table as well as provide disclosure of disaggregated information related to income tax expense, income before income taxes, and income taxes paid. 2025 We are currently evaluating the adoption on our financial statements and anticipate the impact will result in additional disclosure.

Business Acquisitions

Business Acquisitions	6 Months Ended
Business Acquisitions	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Acquisitions	Business Acquisitions Traverse Systems Effective May 8, 2024, we entered into an asset purchase agreement to acquire certain assets of Traverse Systems LLC ("Traverse Systems"), an industry-leading provider in retailer supply chain performance and vendor management. Total consideration transferred at close was $29.4 million, subject to customary post-close adjustments, which was comprised of $25.0 million paid in cash and 22,874 shares of SPS common stock (valued at $4.4 million, determined based on the opening price of SPS common stock at acquisition date). The shares were issued from SPS treasury shares, see Note J - Stockholders' Equity for further detail on the treasury share reissuance. We accounted for the acquisition as a business combination. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Assets acquired primarily comprised of subscriber relationships and developed technology intangible assets, totaling $7.7 million and $3.6 million of estimated fair value, respectively, and $18.4 million was allocated to goodwill based on preliminary measurement. The remainder of the consideration transferred was allocated to net assets acquired other than the intangible assets. The purchase accounting for the acquisition has not been finalized as of June 30, 2024; provisional amounts are primarily related to intangible assets. We will finalize the allocation of the purchase price within the one-year measurement period following the acquisition. The goodwill associated with the acquisition is deductible for income tax purposes. TIE Kinetix Effective September 13, 2023, we acquired all of the outstanding equity ownership interests of TIE Kinetix Holding B.V. ("TIE Kinetix"), a leading provider of supply chain digitalization including EDI and e-invoicing in Europe and the United States ("U.S."). Pursuant to the definitive agreement, the purchase price was €63.9 million ($68.7 million at the September 13, 2023 exchange rate), net of cash acquired. The purchase accounting for the acquisition was finalized as of June 30, 2024. The goodwill associated with the acquisition is not deductible for income tax purposes. Purchase Price Allocation We accounted for the acquisition as a business combination. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The following table presents the purchase consideration and fair values of acquired assets and liabilities recorded in the Company's condensed consolidated balance sheet as of the acquisition date: (in thousands) Cash paid $ 73,558 Estimated fair value of assets and liabilities acquired: Cash $ 4,859 Accounts receivable 1,311 Other assets 3,717 Intangible assets Subscriber relationships 24,952 Developed technology 9,349 Current liabilities (3,838) Deferred revenue (6,421) Deferred income tax liabilities, net (6,791) Total fair value of assets and liabilities acquired $ 27,138 Goodwill $ 46,420 The following table summarizes the estimated useful lives for each acquired intangible asset: Estimated Useful Life Subscriber relationships 8.0 years Developed technology 7.0 years Other Acquisition Activity Effective April 10, 2024, the Company entered into an asset purchase agreement to acquire Vision33's SAP Business One SPS Integration Technology. Pursuant to the definitive agreement, the purchase price, denominated in Canadian dollars ("CAD"), was $5.8 million CAD ($4.3 million U.S. dollars ["USD"] at the Agreement date exchange rate), of which $4.5 million CAD ($3.3 million USD) was paid in cash at close, with the remainder payable in cash within two years, subject to certain closing conditions. Assets acquired were primarily comprised of developed technology and subscriber relationships, totaling $1.7 million USD and $0.4 million USD of estimated fair value, respectively. The remainder of the consideration transferred, $2.2 million USD, was allocated to goodwill. The goodwill associated with the acquisition is deductible for income tax purposes.

Revenue

Revenue	6 Months Ended
Revenue	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue We derive our revenues from the following revenue streams: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Recurring revenues: Fulfillment $ 125,512 $ 105,500 $ 247,365 $ 207,169 Analytics 13,510 12,709 27,524 25,079 Other 4,959 3,314 8,776 6,576 Recurring revenues 143,981 121,523 283,665 238,824 One-time revenues 9,615 8,893 19,507 17,460 Total revenue $ 153,596 $ 130,416 $ 303,172 $ 256,284 Revenues are the amount that reflects the consideration we are contractually and legally entitled to, as well as the amount we expect to collect, in exchange for those services. Revenue by Geographic Area Domestic revenue, which we define as revenue that was attributable to customers based within the U.S., was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Domestic revenue 83 % 84 % 83 % 84 % No single jurisdiction outside of the U.S. had revenues in excess of 10%. Recurring Revenues Recurring revenues consist of recurring subscriptions from customers that utilize our Fulfillment, Analytics, and Other supply chain management products. Revenue for these products is generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our contracts with our recurring revenue customers are recurring in nature, generally ranging from monthly to annual, and generally allow the customer to cancel the contract for any reason with 30 to 90 days’ notice. Timing of billings varies by customer and by contract type and generally are either in advance or within 30 days of the service being performed. Given that the recurring revenue contracts are for one year or less, we have applied the optional exemption to not disclose information about the remaining performance obligations for recurring revenue contracts. One-time Revenues One-time revenues consist of set-up fees and miscellaneous fees from customers. Set-up revenues Set-up fees are specific for each connection a customer has with a trading partner. These nonrefundable fees are necessary for our customers to utilize our services and do not provide any standalone value. Many of our customers have connections with numerous trading partners. Set-up fees constitute a material renewal option right that provide customers a significant future incentive that would not be otherwise available to that customer unless they entered into the contract, as the set-up fees will not be incurred again upon contract renewal. As such, set-up fees and related costs are deferred and recognized ratably generally over two years which is the estimated period for which a material right is present for our customers. The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 17,418 $ 15,287 $ 17,603 $ 14,999 Invoiced set-up fees 5,353 5,739 9,520 9,990 Recognized set-up fees (4,411) (4,048) (8,763) (8,011) Balance, end of period $ 18,360 $ 16,978 $ 18,360 $ 16,978 Miscellaneous one-time revenues Miscellaneous one-time fees consist of professional services and testing and certification. The contract period for these one-time fees is for one year or less and recognized at the time service is provided. We have applied the optional exemption to not disclose information about the remaining performance obligations for miscellaneous one-time fee contracts since they have original durations of one year or less.

Deferred Costs

Deferred Costs	6 Months Ended
Deferred Costs	Jun. 30, 2024
Deferred Costs [Abstract]
Deferred Costs	Deferred Costs The deferred costs activity was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 84,248 $ 71,809 $ 82,750 $ 70,179 Incurred deferred costs 23,022 19,304 44,952 37,538 Amortized deferred costs (22,342) (15,858) (42,774) (32,462) Balance, end of period $ 84,928 $ 75,255 $ 84,928 $ 75,255

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Cash equivalents and investments, as measured at fair value on a recurring basis, consisted of the following: June 30, 2024 December 31, 2023 Fair Value Level Amortized Cost Unrealized Gains (Losses), net Fair Value Fair Value Level Amortized Cost Unrealized Gains (Losses), net Fair Value (in thousands) Cash equivalents: Money market funds Level 1 $ 187,559 $ — $ 187,559 Level 1 $ 161,233 $ — $ 161,233 Investments: Certificates of deposit Level 2 6,666 — 6,666 Level 1 6,805 — 6,805 Marketable securities: Commercial paper Level 2 24,669 219 24,888 Level 2 48,860 694 49,554 $ 218,894 $ 219 $ 219,113 $ 216,898 $ 694 $ 217,592

Allowance for Credit Losses

Allowance for Credit Losses	6 Months Ended
Allowance for Credit Losses	Jun. 30, 2024
Allowance for Credit Loss [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses activity, included in accounts receivable, net, was as follows: Six Months Ended (in thousands) 2024 2023 Balance, beginning of period $ 3,320 $ 3,066 Provision for credit losses 3,646 2,491 Write-offs, net of recoveries (3,008) (2,457) Balance, end of period $ 3,958 $ 3,100

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
Property and Equipment, Net	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consisted of the following: (in thousands) June 30, 2024 December 31, 2023 Internally developed software $ 64,731 $ 60,396 Computer equipment 35,205 34,402 Leasehold improvements 15,363 15,387 Office equipment and furniture 10,883 10,966 Property and equipment, cost 126,182 121,151 Less: accumulated depreciation and amortization (91,099) (85,108) Total property and equipment, net $ 35,083 $ 36,043 Property and equipment, net located at subsidiary and office locations outside of the U.S. was as follows: June 30, 2024 December 31, 2023 International property and equipment 17 % 15 %

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	6 Months Ended
Goodwill and Intangible Assets, Net	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Goodwill The activity in goodwill was as follows: (in thousands) Six Months Ended Balance, beginning of period $ 249,176 Addition from business acquisitions 20,564 Foreign currency translation (2,685) Remeasurement from provisional purchase accounting amount 1,817 Balance, end of period $ 268,872 Intangible Assets Intangible assets, net consisted of the following: June 30, 2024 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 109,923 $ (37,983) $ (851) $ 71,089 6.5 years Developed technology 56,018 (19,217) (371) 36,430 5.1 years $ 165,941 $ (57,200) $ (1,222) $ 107,519 6.0 years December 31, 2023 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 105,228 $ (32,097) $ 724 $ 73,855 6.6 years Developed technology 48,843 (15,669) 315 33,489 5.0 years $ 154,071 $ (47,766) $ 1,039 $ 107,344 6.1 years The estimated future annual amortization expense related to intangible assets is as follows: (in thousands) Remainder of 2024 $ 9,908 2025 19,689 2026 18,685 2027 18,211 2028 16,873 Thereafter 24,153 Total future amortization $ 107,519

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The components of lease expense were as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Operating lease cost $ 798 $ 779 $ 1,612 $ 1,578 Variable lease cost 965 950 1,919 1,878 $ 1,763 $ 1,729 $ 3,531 $ 3,456 Supplemental cash flow information related to leases was as follows: Six Months Ended (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,423 $ 1,329 Right-of-use assets obtained in exchange for operating lease liabilities 533 268 Supplemental balance sheet information related to operating leases was as follows: June 30, 2024 December 31, 2023 Weighted-average remaining lease term 2.8 years 3.1 years Weighted-average discount rate 4.1 % 4.0 % At June 30, 2024, our future minimum payments under operating leases were as follows: (in thousands) Remainder of 2024 $ 3,047 2025 4,307 2026 4,082 2027 1,435 Thereafter 222 Total future gross payments $ 13,093 Less: imputed interest (748) Total operating lease liabilities $ 12,345 Purchase Commitments We have entered into separate noncancelable agreements with computing infrastructure, productivity software, customer relationship management, and performance and security data analytics vendors for services through 2026. At June 30, 2024, our remaining purchase commitments and estimated purchase timing were as follows: (in thousands) Remainder of 2024 $ 5,779 2025 14,187 2026 5,244 Total estimated future purchases $ 25,210

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2024
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Share Repurchase Programs Our board of directors has authorized a program to repurchase our common stock. Details of the program and activity thereunder through June 30, 2024 were as follows: (in thousands) Effective Date Expiration Date Share Value Authorized for Repurchase Share Value Repurchased Unused & Expired Share Repurchase Value Share Value Available for Future Repurchase 2022 Program August 2022 July 2024 $ 50,000 $ 40,471 N/A $ 9,529 Share repurchases are accounted for as the trade date occurs and are reflected in the condensed consolidated financial statements net of the costs incurred to acquire the shares. Share repurchases that have not yet settled in cash are included in accrued expenses in the condensed consolidated balance sheet. The share repurchase activity by period was as follows: Three Months Ended Six Months Ended (in thousands, except shares and per share amounts) 2024 2023 2024 2023 Number of shares repurchased 95,395 — 204,875 — Total share repurchased cost $ 17,483 $ — $ 37,483 $ — Average total cost per repurchased share $ 183.27 $ — $ 182.96 $ — On July 24, 2024 (announced July 25, 2024), our board of directors authorized a program to repurchase up to $100.0 million of our common stock, excluding costs to obtain. Under the program, purchases may be made from time to time in the open market or in privately negotiated purchases, or both. The share repurchase program will become effective August 23, 2024 and expires on July 24, 2026. Treasury Stock Reissuance In connection with the acquisition of Traverse Systems, the Company re-issued treasury shares as part of the purchase consideration (see Note B – Business Combinations for further information). Treasury stock reissuances are accounted for using the specific identification method, with gains (or losses to the extent of previously recognized gains) recognized in additional paid-in capital and any remaining loss recorded in retained earnings.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Our equity compensation plans provide for the grant of incentive and nonqualified stock options, as well as other stock-based awards including performance share units (“PSUs”), restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and deferred stock units (“DSUs”), to employees, non-employee directors and other consultants who provide services to us. We also provide an employee stock purchase plan (“ESPP”) and 401(k) match to eligible participants. We recognize stock-based compensation expense based on grant date award fair value. This cost is recognized over the period for which the employee is required to provide service in exchange for the award or the award performance period, except for expenses relating to retirement-eligible employees. If retirement-eligible employees have not given their required notice, expense is recognized on a pro-rata basis over the notice period prior to retirement; if they have given their notice, expense is recognized over the notice period; if they have given their notice and completed the notice period, expense is recognized upon grant. At June 30, 2024, there were 12.3 million shares available for grant under approved equity compensation plans. Stock-based compensation expense was allocated in the condensed consolidated statements of comprehensive income as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Cost of revenues $ 2,730 $ 2,586 $ 6,812 $ 5,089 Operating expenses Sales and marketing 2,512 2,528 6,956 4,951 Research and development 1,820 1,812 5,062 3,589 General and administrative 4,432 5,955 12,682 11,032 $ 11,494 $ 12,881 $ 31,512 $ 24,661 Stock-based compensation expense by grant type or plan was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Stock options $ 506 $ 494 $ 1,003 $ 985 PSUs 2,445 3,499 4,890 7,424 RSUs & DSUs 6,952 7,381 22,443 13,443 RSAs 89 115 215 223 ESPP 802 748 1,523 1,337 401(k) stock match 700 644 1,438 1,249 $ 11,494 $ 12,881 $ 31,512 $ 24,661 As of June 30, 2024, there was $74.8 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a primarily straight-line basis over a weighted average period of 2.6 years. Stock Options Our stock option activity was as follows: Six Months Ended Options (#) Weighted Average Outstanding, beginning of period 346,822 $ 80.02 Granted 33,930 196.37 Exercised (48,400) 47.83 Forfeited (760) 167.08 Outstanding, end of period 331,592 $ 96.43 Of the total outstanding options at June 30, 2024, 0.3 million were exercisable. The outstanding and exercisable options had a weighted average exercise price of $77.15 per share and a weighted average remaining contractual life of 3.0 years. The weighted average grant date fair value of options granted during the six months ended June 30, 2024 was $69.86 per share. This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Life (in years) 4.1 Volatility 36.7 % Dividend yield — Risk-free interest rate 4.3 % Performance Share Units, Restricted Stock Units and Awards, and Deferred Stock Units In each of the quarters ended March 31, 2024, 2023, 2022, and 2021 we granted PSU awards with a target performance level. These awards are earned based upon our Company’s total shareholder return as compared to an indexed total shareholder return over the course of a fiscal based three-year performance period, starting in the year of grant. Earned awards vest in the quarter following the conclusion of the performance period. In the three months ended March 31, 2024, PSU awards granted in 2021 vested at the maximum performance level and 0.1 million shares of common stock were issued. Activity for our PSUs, RSUs, RSAs, and DSUs in aggregate was as follows: Six Months Ended # Weighted Average Grant Outstanding, beginning of period 773,414 $ 147.50 Granted 324,896 179.31 Vested and common stock issued (366,823) 124.01 Forfeited (3,423) 154.70 Outstanding, end of period 728,064 $ 173.50 The number of PSUs, RSUs, RSAs, and DSUs outstanding at June 30, 2024 included less than 0.1 million units that have vested, but the shares of common stock have not yet been issued, pursuant to the terms of the underlying agreements. Employee Stock Purchase Plan Our ESPP activity was as follows: Three Months Ended Six Months Ended (in thousands, except shares) 2024 2023 2024 2023 Amounts for shares purchased $ 4,828 $ 3,895 $ 5,219 $ 4,136 Shares purchased 30,185 35,676 32,583 38,225 A total of 1.6 million shares of common stock are reserved for issuance under the plan at June 30, 2024. The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the following assumptions: Life (in years) 0.5 Volatility 30.9 % Dividend yield — Risk-free interest rate 5.3 %

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We record our interim provision for income taxes by applying our estimated annual effective tax rate to our year-to-date pre-tax income and adjust the provision for discrete tax items recorded in the period. Our provisions for income taxes includes current federal, state, and foreign income tax expense, as well as deferred tax expense.

Other Income and Expense

Other Income and Expense	6 Months Ended
Other Income and Expense	Jun. 30, 2024
Other Income and Expenses [Abstract]
Other Income and Expense	Other Income and Expense Other income, net included the following: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Investment income $ 2,794 $ 1,611 $ 5,673 $ 2,737 Realized gain from foreign currency on cash and investments held 1,255 290 1,559 427 Other income (expense), net 7 (19) (44) (7) Total other income, net $ 4,056 $ 1,882 $ 7,188 $ 3,157

Net Income Per Share

Net Income Per Share	6 Months Ended
Net Income Per Share	Jun. 30, 2024
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The components and computation of basic and diluted net income per share were as follows: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Numerator Net income $ 18,032 $ 14,682 $ 36,035 $ 29,971 Denominator Weighted average common shares outstanding, basic 37,078 36,593 37,063 36,511 Options to purchase common stock and ESPP 157 274 167 291 PSUs, RSUs, RSAs, and DSUs 448 559 460 525 Weighted average common shares outstanding, diluted 37,683 37,426 37,690 37,327 Net income per share Basic $ 0.49 $ 0.40 $ 0.97 $ 0.82 Diluted $ 0.48 $ 0.39 $ 0.96 $ 0.80 The number of outstanding potential common shares that were excluded from the calculation of diluted net income per share as they were anti-dilutive was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Anti-dilutive shares 276 37 227 63

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 18,032	$ 14,682	$ 36,035	$ 29,971

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		During the three months ended June 30, 2024, the following directors and officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted written plans for the sale of our securities that are intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act: Name Title Adoption Date Earliest Sale Date Expiration or Termination Date Aggregate Number of Shares of the Company's Common Stock to be Sold (1) Daniel Juckniess Chief Revenue Officer May 31, 2024 August 30, 2024 May 23, 2025 28,794 Chadwick Collins Chief Executive Officer and Director May 29, 2024 November 2, 2024 March 15, 2025 21,640 James Ramsey Director May 28, 2024 August 27, 2024 May 14, 2026 5,732 Kimberly Nelson Chief Financial Officer May 20, 2024 August 19, 2024 March 31, 2025 32,560 James Frome Chief Operating Officer May 17, 2024 August 16, 2024 March 31, 2026 98,562 (1)
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Daniel Juckniess [Member]
Trading Arrangements, by Individual
Name	Daniel Juckniess
Title	Chief Revenue Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 31, 2024
Expiration Date	May 23, 2025
Arrangement Duration	357 days
Aggregate Available	28,794	28,794
Chadwick Collins [Member]
Trading Arrangements, by Individual
Name	Chadwick Collins
Title	Chief Executive Officer and Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 29, 2024
Expiration Date	March 15, 2025
Arrangement Duration	290 days
Aggregate Available	21,640	21,640
James Ramsey [Member]
Trading Arrangements, by Individual
Name	James Ramsey
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 28, 2024
Expiration Date	May 14, 2026
Arrangement Duration	716 days
Aggregate Available	5,732	5,732
Kimberly Nelson [Member]
Trading Arrangements, by Individual
Name	Kimberly Nelson
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 20, 2024
Expiration Date	March 31, 2025
Arrangement Duration	315 days
Aggregate Available	32,560	32,560
James Frome [Member]
Trading Arrangements, by Individual
Name	James Frome
Title	Chief Operating Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 17, 2024
Expiration Date	March 31, 2026
Arrangement Duration	683 days
Aggregate Available	98,562	98,562

General (Policies)

General (Policies)	6 Months Ended
General (Policies)	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	Business Description SPS Commerce is a leading provider of cloud-based supply chain management services across our global retail network. Our products make it easier for retailers, grocers, distributors, suppliers, and logistics firms to communicate and collaborate by simplifying how they manage and share item, inventory, order and sales data across omnichannel retail channels. We deliver our products using a full-service model, which includes industry-leading technology and a team of experts that optimize, update, and operate the technology on customers' behalf. Our products enable customers to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. This interim financial information has been prepared under the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (“SEC”). We have included all normal recurring adjustments considered necessary to provide a fair presentation of our financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year.
Use of Estimates	Use of Estimates Preparing financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies There were no material changes in our significant accounting policies during the six months ended June 30, 2024 . See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 , as filed with the SEC, for additional information regarding our significant accounting policies. Accounting Pronouncements Recently Issued and Adopted Standard Date of Issuance Description Date of Adoption Effect on the Financial Statements ASU 2023-07 , Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures November 2023 This amendment requires that an entity disclose significant segment expenses impacting profit and loss that are regularly provided to the chief operating decision maker. 2024 The adoption will result in additional disclosure in our Annual Report on Form 10-K for the year ended December 31, 2024. ASU 2023-09 , Income Taxes (Topic 740) - Improvements to Income Tax Disclosures December 2023 This amendment requires that an entity disclose specific categories in the effective tax rate reconciliation table as well as provide disclosure of disaggregated information related to income tax expense, income before income taxes, and income taxes paid. 2025 We are currently evaluating the adoption on our financial statements and anticipate the impact will result in additional disclosure.

General (Tables)

General (Tables)	6 Months Ended
General (Tables)	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Accounting Pronouncements Recently Adopted	Accounting Pronouncements Recently Issued and Adopted Standard Date of Issuance Description Date of Adoption Effect on the Financial Statements ASU 2023-07 , Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures November 2023 This amendment requires that an entity disclose significant segment expenses impacting profit and loss that are regularly provided to the chief operating decision maker. 2024 The adoption will result in additional disclosure in our Annual Report on Form 10-K for the year ended December 31, 2024. ASU 2023-09 , Income Taxes (Topic 740) - Improvements to Income Tax Disclosures December 2023 This amendment requires that an entity disclose specific categories in the effective tax rate reconciliation table as well as provide disclosure of disaggregated information related to income tax expense, income before income taxes, and income taxes paid. 2025 We are currently evaluating the adoption on our financial statements and anticipate the impact will result in additional disclosure.

Business Acquisitions (Tables)

Business Acquisitions (Tables)	6 Months Ended
Business Acquisitions (Tables)	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date	The following table presents the purchase consideration and fair values of acquired assets and liabilities recorded in the Company's condensed consolidated balance sheet as of the acquisition date: (in thousands) Cash paid $ 73,558 Estimated fair value of assets and liabilities acquired: Cash $ 4,859 Accounts receivable 1,311 Other assets 3,717 Intangible assets Subscriber relationships 24,952 Developed technology 9,349 Current liabilities (3,838) Deferred revenue (6,421) Deferred income tax liabilities, net (6,791) Total fair value of assets and liabilities acquired $ 27,138 Goodwill $ 46,420
Summary of Estimated Useful Lives for each acquired Intangible Asset	The following table summarizes the estimated useful lives for each acquired intangible asset: Estimated Useful Life Subscriber relationships 8.0 years Developed technology 7.0 years

Revenue (Tables)

Revenue (Tables)	6 Months Ended
Revenue (Tables)	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Summary of Revenues by Revenue Stream	We derive our revenues from the following revenue streams: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Recurring revenues: Fulfillment $ 125,512 $ 105,500 $ 247,365 $ 207,169 Analytics 13,510 12,709 27,524 25,079 Other 4,959 3,314 8,776 6,576 Recurring revenues 143,981 121,523 283,665 238,824 One-time revenues 9,615 8,893 19,507 17,460 Total revenue $ 153,596 $ 130,416 $ 303,172 $ 256,284
Summary of Percentage of Domestic Revenue	Domestic revenue, which we define as revenue that was attributable to customers based within the U.S., was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Domestic revenue 83 % 84 % 83 % 84 %
Summary of Deferred Revenue Liability Relating to Set-Up Fees	The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 17,418 $ 15,287 $ 17,603 $ 14,999 Invoiced set-up fees 5,353 5,739 9,520 9,990 Recognized set-up fees (4,411) (4,048) (8,763) (8,011) Balance, end of period $ 18,360 $ 16,978 $ 18,360 $ 16,978

Deferred Costs (Tables)

Deferred Costs (Tables)	6 Months Ended
Deferred Costs (Tables)	Jun. 30, 2024
Deferred Costs [Abstract]
Summary of Deferred Costs Activity	The deferred costs activity was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 84,248 $ 71,809 $ 82,750 $ 70,179 Incurred deferred costs 23,022 19,304 44,952 37,538 Amortized deferred costs (22,342) (15,858) (42,774) (32,462) Balance, end of period $ 84,928 $ 75,255 $ 84,928 $ 75,255

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Summary of Cash Equivalents and Investments	Cash equivalents and investments, as measured at fair value on a recurring basis, consisted of the following: June 30, 2024 December 31, 2023 Fair Value Level Amortized Cost Unrealized Gains (Losses), net Fair Value Fair Value Level Amortized Cost Unrealized Gains (Losses), net Fair Value (in thousands) Cash equivalents: Money market funds Level 1 $ 187,559 $ — $ 187,559 Level 1 $ 161,233 $ — $ 161,233 Investments: Certificates of deposit Level 2 6,666 — 6,666 Level 1 6,805 — 6,805 Marketable securities: Commercial paper Level 2 24,669 219 24,888 Level 2 48,860 694 49,554 $ 218,894 $ 219 $ 219,113 $ 216,898 $ 694 $ 217,592

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	6 Months Ended
Allowance for Credit Losses (Tables)	Jun. 30, 2024
Allowance for Credit Loss [Abstract]
Summary of Allowance for Credit Losses Activity Included in Accounts Receivable Net	The allowance for credit losses activity, included in accounts receivable, net, was as follows: Six Months Ended (in thousands) 2024 2023 Balance, beginning of period $ 3,320 $ 3,066 Provision for credit losses 3,646 2,491 Write-offs, net of recoveries (3,008) (2,457) Balance, end of period $ 3,958 $ 3,100

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
Property and Equipment, Net (Tables)	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment, Net	Property and equipment, net consisted of the following: (in thousands) June 30, 2024 December 31, 2023 Internally developed software $ 64,731 $ 60,396 Computer equipment 35,205 34,402 Leasehold improvements 15,363 15,387 Office equipment and furniture 10,883 10,966 Property and equipment, cost 126,182 121,151 Less: accumulated depreciation and amortization (91,099) (85,108) Total property and equipment, net $ 35,083 $ 36,043
Summary of Percentage of Property and Equipment Net Located at Subsidiary and Office Locations Outside of United States	Property and equipment, net located at subsidiary and office locations outside of the U.S. was as follows: June 30, 2024 December 31, 2023 International property and equipment 17 % 15 %

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
Goodwill and Intangible Assets, Net (Tables)	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Activity in Goodwill	The activity in goodwill was as follows: (in thousands) Six Months Ended Balance, beginning of period $ 249,176 Addition from business acquisitions 20,564 Foreign currency translation (2,685) Remeasurement from provisional purchase accounting amount 1,817 Balance, end of period $ 268,872
Summary of Intangible Assets, Net	Intangible assets, net consisted of the following: June 30, 2024 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 109,923 $ (37,983) $ (851) $ 71,089 6.5 years Developed technology 56,018 (19,217) (371) 36,430 5.1 years $ 165,941 $ (57,200) $ (1,222) $ 107,519 6.0 years December 31, 2023 ($ in thousands) Gross Accumulated Foreign Net Weighted Average Remaining Amortization Period Subscriber relationships $ 105,228 $ (32,097) $ 724 $ 73,855 6.6 years Developed technology 48,843 (15,669) 315 33,489 5.0 years $ 154,071 $ (47,766) $ 1,039 $ 107,344 6.1 years
Summary of Estimated Annual Amortization Expense Related to Intangible Assets	The estimated future annual amortization expense related to intangible assets is as follows: (in thousands) Remainder of 2024 $ 9,908 2025 19,689 2026 18,685 2027 18,211 2028 16,873 Thereafter 24,153 Total future amortization $ 107,519

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
Commitments and Contingencies (Tables)	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Summary of Components of Lease Expense	The components of lease expense were as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Operating lease cost $ 798 $ 779 $ 1,612 $ 1,578 Variable lease cost 965 950 1,919 1,878 $ 1,763 $ 1,729 $ 3,531 $ 3,456
Summary of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Six Months Ended (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,423 $ 1,329 Right-of-use assets obtained in exchange for operating lease liabilities 533 268
Summary of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to operating leases was as follows: June 30, 2024 December 31, 2023 Weighted-average remaining lease term 2.8 years 3.1 years Weighted-average discount rate 4.1 % 4.0 %
Summary of Future Minimum Payments Under Operating Leases	At June 30, 2024, our future minimum payments under operating leases were as follows: (in thousands) Remainder of 2024 $ 3,047 2025 4,307 2026 4,082 2027 1,435 Thereafter 222 Total future gross payments $ 13,093 Less: imputed interest (748) Total operating lease liabilities $ 12,345
Summary of Remaining Purchase Commitments and Estimated Purchase Timing	At June 30, 2024, our remaining purchase commitments and estimated purchase timing were as follows: (in thousands) Remainder of 2024 $ 5,779 2025 14,187 2026 5,244 Total estimated future purchases $ 25,210

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2024
Equity [Abstract]
Schedule of Repurchase Agreements	Details of the program and activity thereunder through June 30, 2024 were as follows: (in thousands) Effective Date Expiration Date Share Value Authorized for Repurchase Share Value Repurchased Unused & Expired Share Repurchase Value Share Value Available for Future Repurchase 2022 Program August 2022 July 2024 $ 50,000 $ 40,471 N/A $ 9,529 The share repurchase activity by period was as follows: Three Months Ended Six Months Ended (in thousands, except shares and per share amounts) 2024 2023 2024 2023 Number of shares repurchased 95,395 — 204,875 — Total share repurchased cost $ 17,483 $ — $ 37,483 $ — Average total cost per repurchased share $ 183.27 $ — $ 182.96 $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense	Stock-based compensation expense was allocated in the condensed consolidated statements of comprehensive income as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Cost of revenues $ 2,730 $ 2,586 $ 6,812 $ 5,089 Operating expenses Sales and marketing 2,512 2,528 6,956 4,951 Research and development 1,820 1,812 5,062 3,589 General and administrative 4,432 5,955 12,682 11,032 $ 11,494 $ 12,881 $ 31,512 $ 24,661 Stock-based compensation expense by grant type or plan was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Stock options $ 506 $ 494 $ 1,003 $ 985 PSUs 2,445 3,499 4,890 7,424 RSUs & DSUs 6,952 7,381 22,443 13,443 RSAs 89 115 215 223 ESPP 802 748 1,523 1,337 401(k) stock match 700 644 1,438 1,249 $ 11,494 $ 12,881 $ 31,512 $ 24,661
Summary of Stock Option Activity	Our stock option activity was as follows: Six Months Ended Options (#) Weighted Average Outstanding, beginning of period 346,822 $ 80.02 Granted 33,930 196.37 Exercised (48,400) 47.83 Forfeited (760) 167.08 Outstanding, end of period 331,592 $ 96.43
Summary of Weighted Average Fair Value Per Share of Options Granted, Assumptions	This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Life (in years) 4.1 Volatility 36.7 % Dividend yield — Risk-free interest rate 4.3 %
Summary of PSU, RSU, RSA, and DSU	Activity for our PSUs, RSUs, RSAs, and DSUs in aggregate was as follows: Six Months Ended # Weighted Average Grant Outstanding, beginning of period 773,414 $ 147.50 Granted 324,896 179.31 Vested and common stock issued (366,823) 124.01 Forfeited (3,423) 154.70 Outstanding, end of period 728,064 $ 173.50
Summary of ESPP Activity	Our ESPP activity was as follows: Three Months Ended Six Months Ended (in thousands, except shares) 2024 2023 2024 2023 Amounts for shares purchased $ 4,828 $ 3,895 $ 5,219 $ 4,136 Shares purchased 30,185 35,676 32,583 38,225
Summary of Fair Value Estimation of Common Stock, Assumptions	The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the following assumptions: Life (in years) 0.5 Volatility 30.9 % Dividend yield — Risk-free interest rate 5.3 %

Other Income and Expense (Table

Other Income and Expense (Tables)	6 Months Ended
Other Income and Expense (Tables)	Jun. 30, 2024
Other Income and Expenses [Abstract]
Summary of Other Income, Net	Other income, net included the following: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Investment income $ 2,794 $ 1,611 $ 5,673 $ 2,737 Realized gain from foreign currency on cash and investments held 1,255 290 1,559 427 Other income (expense), net 7 (19) (44) (7) Total other income, net $ 4,056 $ 1,882 $ 7,188 $ 3,157

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
Net Income Per Share (Tables)	Jun. 30, 2024
Earnings Per Share [Abstract]
Summary of Components and Computation of Basic and Diluted Net Income Per Share	The components and computation of basic and diluted net income per share were as follows: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Numerator Net income $ 18,032 $ 14,682 $ 36,035 $ 29,971 Denominator Weighted average common shares outstanding, basic 37,078 36,593 37,063 36,511 Options to purchase common stock and ESPP 157 274 167 291 PSUs, RSUs, RSAs, and DSUs 448 559 460 525 Weighted average common shares outstanding, diluted 37,683 37,426 37,690 37,327 Net income per share Basic $ 0.49 $ 0.40 $ 0.97 $ 0.82 Diluted $ 0.48 $ 0.39 $ 0.96 $ 0.80
Summary of Anti-dilutive Common Shares Excluded from Calculation of Diluted Net Income Per Share	The number of outstanding potential common shares that were excluded from the calculation of diluted net income per share as they were anti-dilutive was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Anti-dilutive shares 276 37 227 63

Business Acquisitions - Narrati

Business Acquisitions - Narrative (Details) $ in Thousands, € in Millions, $ in Millions	Jun. 30, 2024 USD ($)	May 08, 2024 USD ($) shares	Apr. 10, 2024 USD ($)	Apr. 10, 2024 CAD ($)	Sep. 13, 2023 USD ($)	Sep. 13, 2023 EUR (€)	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Goodwill	$ 268,872						$ 249,176
Traverse Systems
Business Acquisition [Line Items]
Consideration transferred		$ 29,400
Cash paid		$ 25,000
Number of shares reissued (in shares) \| shares		22,874
Value of common stock transferred		$ 4,400
Goodwill		18,400
Traverse Systems \| Subscriber relationships
Business Acquisition [Line Items]
Assets acquired		7,700
Traverse Systems \| Developed technology
Business Acquisition [Line Items]
Assets acquired		$ 3,600
TIE Kinetix
Business Acquisition [Line Items]
Consideration transferred					$ 68,700	€ 63.9
Cash paid	73,558
Goodwill	46,420
TIE Kinetix \| Subscriber relationships
Business Acquisition [Line Items]
Intangible assets	24,952
TIE Kinetix \| Developed technology
Business Acquisition [Line Items]
Intangible assets	$ 9,349
Vision33's SAP Business One SPS Integration Technology
Business Acquisition [Line Items]
Consideration transferred			$ 4,300	$ 5.8
Cash paid			3,300	$ 4.5
Goodwill			$ 2,200
Business acquisition, remainder payable term			2 years	2 years
Vision33's SAP Business One SPS Integration Technology \| Subscriber relationships
Business Acquisition [Line Items]
Intangible assets			$ 400
Vision33's SAP Business One SPS Integration Technology \| Developed technology
Business Acquisition [Line Items]
Intangible assets			$ 1,700

Business Acquisitions - Summary

Business Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Estimated fair value of assets and liabilities acquired:
Goodwill	$ 268,872	$ 249,176
Estimated Useful Life
Business Acquisition [Line Items]
Cash paid	73,558
Estimated fair value of assets and liabilities acquired:
Cash	4,859
Accounts receivable	1,311
Other assets	3,717
Current liabilities	(3,838)
Deferred revenue	(6,421)
Deferred income tax liabilities, net	(6,791)
Total fair value of assets and liabilities acquired	27,138
Goodwill	46,420
Estimated Useful Life \| Subscriber relationships
Estimated fair value of assets and liabilities acquired:
Intangible assets	24,952
Estimated Useful Life \| Developed technology
Estimated fair value of assets and liabilities acquired:
Intangible assets	$ 9,349

Business Acquisitions - Summa_2

Business Acquisitions - Summary of Estimated Useful Lives for each acquired Intangible Asset (Details) - TIE Kinetix	Jun. 30, 2024
Subscriber relationships
Business Acquisition [Line Items]
Intangible assets useful life	8 years
Developed technology
Business Acquisition [Line Items]
Intangible assets useful life	7 years

Revenue - Summary of Revenues b

Revenue - Summary of Revenues by Revenue Stream (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue Recognition [Line Items]
Total revenue	$ 153,596	$ 130,416	$ 303,172	$ 256,284
Recurring revenues
Revenue Recognition [Line Items]
Total revenue	143,981	121,523	283,665	238,824
One-time revenues
Revenue Recognition [Line Items]
Total revenue	9,615	8,893	19,507	17,460
Fulfillment \| Recurring revenues
Revenue Recognition [Line Items]
Total revenue	125,512	105,500	247,365	207,169
Analytics \| Recurring revenues
Revenue Recognition [Line Items]
Total revenue	13,510	12,709	27,524	25,079
Other \| Recurring revenues
Revenue Recognition [Line Items]
Total revenue	$ 4,959	$ 3,314	$ 8,776	$ 6,576

Revenue - Summary of Percentage

Revenue - Summary of Percentage of Domestic Revenue (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue Benchmark \| Geographic Concentration Risk \| Domestic revenue
Disaggregation Of Revenue [Line Items]
Concentration risk, percentage	83%	84%	83%	84%

Revenue - Narrative (Details)

Revenue - Narrative (Details)	6 Months Ended
Revenue - Narrative (Details)	Jun. 30, 2024
Disaggregation Of Revenue [Line Items]
Latest timing of billings	30 days
Contract term maximum	1 year
Set up fees recognized period	2 years
Maximum recognition period for miscellaneous one-time fee	1 year
Minimum
Disaggregation Of Revenue [Line Items]
Customer contract cancellation period	30 days
Maximum
Disaggregation Of Revenue [Line Items]
Customer contract cancellation period	90 days

Revenue - Summary of Deferred R

Revenue - Summary of Deferred Revenue Liability Relating to Set-Up Fees (Details) - Set-Up Fees - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Deferred Revenue Arrangement [Roll Forward]
Balance, beginning of period	$ 17,418	$ 15,287	$ 17,603	$ 14,999
Invoiced set-up fees	5,353	5,739	9,520	9,990
Recognized set-up fees	(4,411)	(4,048)	(8,763)	(8,011)
Balance, end of period	$ 18,360	$ 16,978	$ 18,360	$ 16,978

Deferred Costs (Details)

Deferred Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Deferred Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Deferred Costs [Roll Forward]
Balance, beginning of period	$ 84,248	$ 71,809	$ 82,750	$ 70,179
Incurred deferred costs	23,022	19,304	44,952	37,538
Amortized deferred costs	(22,342)	(15,858)	(42,774)	(32,462)
Balance, end of period	$ 84,928	$ 75,255	$ 84,928	$ 75,255

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Financial Instruments [Line Items]
Amortized Cost	$ 218,894	$ 216,898
Unrealized Gains (Losses), net	219	694
Fair Value	219,113	217,592
Certificates of deposit
Schedule of Financial Instruments [Line Items]
Amortized Cost	6,666	6,805
Unrealized Gains (Losses), net	0	0
Fair Value	6,666	6,805
Cash equivalents: \| Money market funds
Schedule of Financial Instruments [Line Items]
Amortized Cost	187,559	161,233
Unrealized Gains (Losses), net	0	0
Fair Value	187,559	161,233
Marketable securities: \| Commercial paper
Schedule of Financial Instruments [Line Items]
Amortized Cost	24,669	48,860
Unrealized Gains (Losses), net	219	694
Fair Value	$ 24,888	$ 49,554

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 3,320	$ 3,066
Provision for credit losses	3,646	2,491
Write-offs, net of recoveries	(3,008)	(2,457)
Balance, end of period	$ 3,958	$ 3,100

Property and Equipment, Net - S

Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 126,182	$ 121,151
Less: accumulated depreciation and amortization	(91,099)	(85,108)
Total property and equipment, net	35,083	36,043
Internally developed software
Property, Plant and Equipment [Line Items]
Property and equipment, cost	64,731	60,396
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, cost	35,205	34,402
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, cost	15,363	15,387
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 10,883	$ 10,966

Property and Equipment, Net -_2

Property and Equipment, Net - Summary of Percentage of Property and Equipment Net Located at Subsidiary and Office Locations Outside of United States (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
International property and equipment \| Geographic Concentration Risk \| International property and equipment
Property, Plant and Equipment [Line Items]
Concentration risk, percentage	17%	15%

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Summary of Activity in Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill [Roll Forward]
Balance, beginning of period	$ 249,176
Addition from business acquisitions	20,564
Foreign currency translation	(2,685)
Remeasurement from provisional purchase accounting amount	1,817
Balance, end of period	$ 268,872

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Summary of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 165,941	$ 154,071
Accumulated Amortization	(57,200)	(47,766)
Foreign Currency Translation	(1,222)	1,039
Total future amortization	$ 107,519	$ 107,344
Weighted Average Remaining Amortization Period	6 years	6 years 1 month 6 days
Subscriber relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 109,923	$ 105,228
Accumulated Amortization	(37,983)	(32,097)
Foreign Currency Translation	(851)	724
Total future amortization	$ 71,089	$ 73,855
Weighted Average Remaining Amortization Period	6 years 6 months	6 years 7 months 6 days
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 56,018	$ 48,843
Accumulated Amortization	(19,217)	(15,669)
Foreign Currency Translation	(371)	315
Total future amortization	$ 36,430	$ 33,489
Weighted Average Remaining Amortization Period	5 years 1 month 6 days	5 years

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, Net - Summary of Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 9,908
2025	19,689
2026	18,685
2027	18,211
2028	16,873
Thereafter	24,153
Total future amortization	$ 107,519	$ 107,344

Commitments and Contingencies -

Commitments and Contingencies - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 798	$ 779	$ 1,612	$ 1,578
Variable lease cost	965	950	1,919	1,878
Total lease expense	$ 1,763	$ 1,729	$ 3,531	$ 3,456

Commitments and Contingencies_2

Commitments and Contingencies - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 2,423	$ 1,329
Right-of-use assets obtained in exchange for operating lease liabilities	$ 533	$ 268

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Supplemental Balance Sheet Information Related to Leases (Details)	Jun. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term	2 years 9 months 18 days	3 years 1 month 6 days
Weighted-average discount rate	4.10%	4%

Commitments and Contingencies_4

Commitments and Contingencies - Summary of Future Minimum Payments Under Operating Leases (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2024	$ 3,047
2025	4,307
2026	4,082
2027	1,435
Thereafter	222
Total future gross payments	13,093
Less: imputed interest	(748)
Total operating lease liabilities	$ 12,345

Commitments and Contingencies_5

Commitments and Contingencies - Summary of Remaining Purchase Commitments (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2024	$ 5,779
2025	14,187
2026	5,244
Total estimated future purchases	$ 25,210

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Share Repurchase Plan (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Stockholders Equity [Line Items]
Share Value Repurchased	$ 162,187	$ 128,892
Common Stock \| 2022 Program
Schedule of Stockholders Equity [Line Items]
Share Value Authorized for Repurchase	50,000
Share Value Repurchased	40,471
Share Value Available for Future Repurchase	$ 9,529

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Repurchase Activity by Period (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Schedule of Stockholders Equity [Line Items]
Total share repurchased cost	$ 17,483		$ 37,483
2022 Program
Schedule of Stockholders Equity [Line Items]
Number of shares repurchased (in shares)	95,395	0	204,875	0
Total share repurchased cost	$ 17,483	$ 0	$ 37,483	$ 0
Average cost per repurchased share (in dollars per share)	$ 183.27	$ 0	$ 182.96	$ 0

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ in Millions	Jul. 24, 2024 USD ($)
Subsequent Event
Schedule of Stockholders Equity [Line Items]
Share repurchase program, authorized amount	$ 100

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)					12.3
Unrecognized stock-based compensation expense					$ 74.8
Unrecognized stock-based compensation, expected to be recognized, weighted average period					2 years 7 months 6 days
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)					1.6
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding and exercisable options (in shares)					0.3
Weighted average exercise price (in dollars per share)					$ 77.15
Weighted average remaining contractual life					3 years
Weighted average fair value per share of options granted (in dollars per share)					$ 69.86
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years	3 years	3 years	3 years
PSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	0.1
PSUs, RSUs, RSAs and DSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested at period end (in shares)					0.1

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 11,494	$ 12,881	$ 31,512	$ 24,661
Stock options
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	506	494	1,003	985
PSUs
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,445	3,499	4,890	7,424
RSUs & DSUs
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	6,952	7,381	22,443	13,443
RSAs
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	89	115	215	223
ESPP
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	802	748	1,523	1,337
401(k) stock match
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	700	644	1,438	1,249
Cost of revenues
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,730	2,586	6,812	5,089
Sales and marketing
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,512	2,528	6,956	4,951
Research and development
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	1,820	1,812	5,062	3,589
General and administrative
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 4,432	$ 5,955	$ 12,682	$ 11,032

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Option Activity (Details)	6 Months Ended
Stock-Based Compensation - Stock Option Activity (Details)	Jun. 30, 2024 $ / shares shares
Options (#)
Beginning balance (in shares) \| shares	346,822
Granted (in shares) \| shares	33,930
Exercised (in shares) \| shares	(48,400)
Forfeited (in shares) \| shares	(760)
Ending balance (in shares) \| shares	331,592
Weighted Average Exercise Price ($/share)
Beginning balance (in dollars per share) \| $ / shares	$ 80.02
Granted (in dollars per share) \| $ / shares	196.37
Exercised (in dollars per share) \| $ / shares	47.83
Forfeited (in dollars per share) \| $ / shares	167.08
Ending balance (in dollars per share) \| $ / shares	$ 96.43

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted, Assumptions (Details) - Stock options	6 Months Ended
	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Life (in years)	4 years 1 month 6 days
Volatility	36.70%
Dividend yield	0%
Risk-free interest rate	4.30%

Stock-Based Compensation - PSU,

Stock-Based Compensation - PSU, RSU, RSA, and DSU (Details) - PSUs, RSUs, RSAs and DSUs	6 Months Ended
	Jun. 30, 2024 $ / shares shares
#
Beginning balance (in shares) \| shares	773,414
Granted (in shares) \| shares	324,896
Vested and common stock issued (in shares) \| shares	(366,823)
Forfeited (in shares) \| shares	(3,423)
Ending balance (in shares) \| shares	728,064
Weighted Average Grant Date Fair Value ($/share)
Beginning balance (in dollars per share) \| $ / shares	$ 147.50
Granted (in dollars per share) \| $ / shares	179.31
Vested and common stock issued (in dollars per share) \| $ / shares	124.01
Forfeited (in dollars per share) \| $ / shares	154.70
Ending balance (in dollars per share) \| $ / shares	$ 173.50

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of ESPP Activity (Details) - Employee Stock Purchase Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts for shares purchased	$ 4,828	$ 3,895	$ 5,219	$ 4,136
Shares purchased (in shares)	30,185	35,676	32,583	38,225

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Estimation of Common Stock, Assumptions (Details) - Employee Stock Purchase Plan	6 Months Ended
	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Life (in years)	6 months
Volatility	30.90%
Dividend yield	0%
Risk-free interest rate	5.30%

Other Income and Expense - Summ

Other Income and Expense - Summary of Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Other Income and Expenses [Abstract]
Investment income	$ 2,794	$ 1,611	$ 5,673	$ 2,737
Realized gain from foreign currency on cash and investments held	1,255	290	1,559	427
Other income (expense), net	7	(19)	(44)	(7)
Total other income, net	$ 4,056	$ 1,882	$ 7,188	$ 3,157

Net Income Per Share - Componen

Net Income Per Share - Components and Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator
Net income	$ 18,032	$ 14,682	$ 36,035	$ 29,971
Denominator
Weighted average common shares outstanding, basic (in shares)	37,078	36,593	37,063	36,511
Options to purchase common stock and ESPP (in shares)	157	274	167	291
PSUs, RSUs, RSAs, and DSUs (in shares)	448	559	460	525
Weighted average common shares outstanding, diluted (in shares)	37,683	37,426	37,690	37,327
Net income per share
Basic (in dollars per share)	$ 0.49	$ 0.40	$ 0.97	$ 0.82
Diluted (in dollars per share)	$ 0.48	$ 0.39	$ 0.96	$ 0.80

Net Income Per Share - Summary

Net Income Per Share - Summary of Anti-dilutive Common Shares Excluded from Calculation of Diluted Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	276	37	227	63