SPS Commerce (SPSC) risk factors, FY2025 10-K

Other

1. 01If we are unable to attract new customers, or sell additional products to existing customers, or if our customers do not increase their use of our products, our revenue growth and profitability will be adversely affected
2. 02We do not have long-term contracts with most of our recurring revenue customers, and therefore a lack of success in maintaining or improving forecasted renewal rates will have adverse effects on revenue and financial results
3. 03Economic weakness and uncertainty could adversely affect our revenue, lengthen our sales cycles, and make it more difficult for us to forecast operating results accurately
4. 04Our continued growth could significantly strain our personnel resources and infrastructure, and if we are unable to implement appropriate controls and procedures to manage our growth, we may not be able to implement our business plan successfully
5. 05If we fail to attract, retain, and train members of our senior management team and other key personnel, our business could be adversely affected26% rewritten
6. 06If the market for cloud-based supply chain management products declines or does not maintain its historical growth rates, our revenues may decline or fail to grow, and we may incur operating losses
7. 07The markets in which we participate are highly competitive, and our failure to compete successfully would make it difficult for us to add and retain customers and would reduce or impede the growth of our business63% rewritten
8. 08We may not be able to successfully integrate or otherwise operate newly acquired companies or businesses, which could adversely affect our financial results
9. 09Because our long-term success depends, in part, on our ability to expand the sales of our products to customers located outside of the United States and expand operations to support such expansion, our business will be increasingly susceptible to risks associated with international operations32% rewritten
10. 10significant time and attention from senior management. Violations of these laws may result in severe civil and criminal sanctions and penalties, which could disrupt our business and have a material adverse effect on our reputation, results of operations or financial conditionNew
11. 11We may face exposure to fluctuations in foreign currency exchange rates, which could affect our financial condition and results of operations
12. 12Our failure to raise additional capital or generate cash flows necessary to expand our operations and invest in new technologies could reduce our ability to compete successfully and adversely affect our results of operations
13. 13Any new products and changes to existing products we pursue could fail to attract or retain customers or generate expected revenues
14. 14Our business is dependent on our ability to maintain and scale our technical infrastructure, and any failure to effectively maintain or scale such infrastructure could damage our reputation, result in a potential loss of revenue, and adversely affect our financial results
15. 15Our inability to adapt to rapid technological change could impair our ability to remain competitive
16. 16We rely on third-party infrastructure, software and services that could take significant time, and involve a complex transition, to replace or upgrade
17. 17Interruptions or delays from third-party data centers or to the telecommunications infrastructure we use or rely on could impair the delivery of our products and our business could suffer
18. 18We may experience service failures or interruptions due to defects in the hardware, software, infrastructure, third-party components or processes that comprise our existing or new products, any of which could adversely affect our business
19. 19If open source, or other no-cost products and services, expand into enterprise application and supply chain software or products, our prices, revenues, and operating results may decline
20. 20The use of open source software in our products may expose us to additional risks and harm our intellectual property
21. 21If we fail to protect our intellectual property and proprietary rights adequately, our business could suffer material adverse effects
22. 22An assertion by a third-party that we are infringing its intellectual property, whether or not correct, could subject us to costly and time-consuming litigation or expensive licenses and our business might be materially harmed
23. 23Privacy concerns and laws, evolving regulation of the internet and cloud computing, cross-border data transfer restrictions and other domestic or foreign regulations may limit the use and adoption of our products and adversely affect our business
24. 24The costs of compliance with and other burdens imposed by laws, regulations and standards are significant and may limit the use and adoption of our services and reduce overall demand for them, or lead to material fines, penalties, or liabilities for noncompliance
25. 25Industry-specific regulation is evolving, and unfavorable or burdensome industry-specific laws, regulations or interpretive positions could harm our business
26. 26Our results of operations may fluctuate in the future, which could result in volatility in our stock price34% rewritten
27. 27Our charter documents and Delaware law may delay, discourage, or inhibit a takeover that stockholders consider favorable
28. 28We do not intend to declare dividends on our stock in the foreseeable future