TAM & Wallet
Q: What drives increased TAM and wallet share?
A: Management explained that a deep-dive analysis across all customer segments—small, medium, and large—coupled with an expanded product portfolio and improved trading partner connections, has significantly upgraded wallet share targets, reinforcing an estimated global TAM of $11.1 billion.

Margin Outlook
Q: What supports improved EBITDA margins?
A: Leadership expects enhanced gross margins through operational scaling and cost efficiencies, particularly as acquisition integrations yield economies of scale, projecting 22–24% adjusted EBITDA growth year-over-year.

Unit Economics
Q: How do economics differ by customer size?
A: The strategy differentiates between smaller customers—typically gained via community enablement—and larger accounts, which deliver higher revenue per customer through a broader mix of fulfillment and analytics solutions, reinforcing attractive unit economics.

Carbon6 Impact
Q: Will Carbon6 boost customer additions?
A: The Carbon6 acquisition is expected to add roughly 6,500 customers from the Amazon marketplace sector, though the revenue per customer is lower; additional quarterly increases are anticipated but remain preliminary.

Pipeline Allocation
Q: How will the pipeline split between logos and wallet share?
A: Management expects Q1’s pipeline to mirror Q4’s customer count distribution, with both new logos and wallet share opportunities driven by community enablement programs maintaining a consistent mix.

Go-to-Market Strategy
Q: Does updated TAM change market approach?
A: The revised TAM analysis reinforces existing strategies—community enablement for new digital connections and channel sales for replacement cycles—without necessitating major shifts in resource allocation.

Traceability Effects
Q: How does traceability improve fulfillment?
A: Increased regulatory focus on traceability has spurred better collaboration between suppliers and retailers, thereby boosting interest in SPS solutions that enhance order accuracy and fulfillment efficiency.

Tariff Uncertainty
Q: Do tariffs affect digital connections cost?
A: Uncertainty in tariffs has actually driven stronger supplier-retailer collaboration, meaning SPS sees increased investments in digital connections despite macro concerns, with minimal risk of customer drop-off.

Amazon Logistics
Q: Will UPS cuts disrupt Carbon6 strategy?
A: Management is not concerned because the majority of third-party sellers rely on Amazon’s own fulfillment abilities, ensuring continued network reliability despite UPS scaling back deliveries.

Organic Growth Moderation
Q: Why are organic revenue rates moderating?
A: The moderation reflects a mix of new customer acquisitions already achieved in 2024 and a cautious outlook on retail dynamics, all while targeting annual revenue growth above 15%.

European Expansion
Q: How does Europe affect customer count?
A: The inclusion of European geographies has increased the global customer count proportionally and aligns with the longstanding global approach, without causing a material shift in overall opportunity.

International Enablement
Q: What’s the mix for international enablement?
A: Currently, U.S. enablement campaigns drive European opportunities, with plans to launch tailored community programs in Europe in 2025, enhancing the international channel gradually.

Gross Margin Sustainability
Q: Will gross margins stay improved?
A: Despite occasional quarterly fluctuations, management expects continued gross margin improvement driven by scaling operations and ongoing investments to remain sustainable into fiscal 2025.

Amazon-Only Community
Q: How large is the Amazon-only supplier group?
A: The Amazon-only supplier community is factored into the overall TAM, though its revenue potential per customer is lower compared to first-party recoveries, representing a smaller segment of the market.

Wallet Share Details
Q: What percent exceed target wallet share?
A: Approximately 10% of customers already achieve the higher wallet share threshold, with a consistent distribution pattern observed across all customer size segments.

TAM Distribution Insights
Q: What does Slide 13 reveal about distribution?
A: The analysis indicates a balanced customer mix across small, medium, and large segments, highlighting that improved wallet share exposure is uniformly attainable within the current portfolio.