United States securities and exchange commission logo
March 26, 2024
Kimberly Nelson
Chief Financial Officer
SPS Commerce, Inc.
333 South Seventh Street, Suite 1000
Minneapolis, MN 55402
Re: SPS Commerce, Inc.
Form 10-K for the
Fiscal Year Ended December 31, 2023
Response dated
March 14, 2024
File No. 001-34702
Dear Kimberly Nelson:
We have reviewed your March 14, 2024 response to our comment
letter and have the
following comments.
Please respond to this letter within ten business days by
providing the requested
information or advise us as soon as possible when you will respond. If
you do not believe
the comment applies to your facts and circumstances, please tell us why
in your response.
After reviewing your response to this letter, we may have
additional comments. Unless
we note otherwise, any references to prior comments are to comments in
our March 4,
2024 letter.
Form 10-K for the Fiscal Year Ended December 31, 2023
Management's Discussion and Analysis of Financial Condition and Results
of Operations
Metrics and Non-GAAP Financial Measures, page 28
1. We note your response
to prior comment 1. While you state that customer attrition is not a
"key metric" used by
management in making strategic business decisions or that you do
"not necessarily need
to monitor customer contract renewals," please tell us whether you
otherwise calculate
attrition or renewal rates internally on a regular basis. If so, provide us
with a breakdown of
such rates for each of the last three fiscal years so that we may better
assess your response
and disclosures. In addition, while you state in your response to prior
comment 2 that revenue
from new customers is generally not tracked and you do not
believe it is possible
without undue effort to disclose revenue from recently acquired
business combinations,
tell us how you considered disclosing the number of new
customers acquired each
period, both organically and from business combinations, to add
Kimberly Nelson
SPS Commerce, Inc.
March 26, 2024
Page 2
further context to your source of revenue and your ability to retain
customers. In your
response, provide us with the number of new customers acquired during
each period
presented both in total and separately from business combinations.
Please contact Megan Akst at 202-551-3407 or Melissa Kindelan at
202-551-3564 if you
have questions regarding comments on the financial statements and related
matters.
Sincerely,
FirstName LastNameKimberly Nelson
Division of
Corporation Finance
Comapany NameSPS Commerce, Inc.
Office of
Technology
March 26, 2024 Page 2
cc: Brian Senger
FirstName LastName