SEC Filing | SPS Commerce, Inc.

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spsc-20220630

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended: June 30, 2022


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ________ to ________

Commission file number 001-34702

SPS COMMERCE, INC.

https://cdn.kscope.io/d3327e8b06b9e334b04ae49b038cd825-spsc-20220630_g1.jpg

(Exact Name of Registrant as Specified in its Charter)


Delaware			41-2015127
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

333 South Seventh Street, Suite 1000, Minneapolis, MN 55402

(Address of principal executive offices, including Zip Code)

(612) 435-9400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of exchange on which registered

Common Stock, par value $0.001 per share

SPSC

The Nasdaq Stock Market LLC (Nasdaq Global Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o

Non-accelerated filer	o	Smaller reporting company	o

		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock, par value $0.001 per share, outstanding at July 20, 2022 was 36,015,159 shares.

Table of Contents

SPS COMMERCE, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	3

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Comprehensive Income	4

	Condensed Consolidated Statements of Stockholders’ Equity	5

	Condensed Consolidated Statements of Cash Flows	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	27

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

SIGNATURES		30

Unless the context otherwise requires, for purposes of the Quarterly Report on Form 10-Q, the words “we,” “us,” “our,” the “Company,” “SPS,” and “SPS Commerce” refer to SPS Commerce, Inc.


SPS COMMERCE, INC.			2			Form 10-Q for the Quarterly Period ended June 30, 2022

Table of Contents

PART I. – FINANCIAL INFORMATION

Item 1. Financial Statements

SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands, except shares)	June 30, 2022		December 31, 2021
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	212,725	$	207,552
Short-term investments	46,513		49,758
Accounts receivable	44,559		38,811
Allowance for credit losses	(4,454)		(4,249)
Accounts receivable, net	40,105		34,562
Deferred costs	48,294		44,529
Other assets	17,912		16,042
Total current assets	365,549		352,443
Property and equipment, net	32,000		31,901
Operating lease right-of-use assets	9,578		10,851
Goodwill	142,960		143,663
Intangible assets, net	53,597		58,587
Other assets
Deferred costs, non-current	16,371		15,191
Deferred income tax assets	191		182
Other assets, non-current	2,530		3,028
Total assets	$	622,776	$	615,846
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	4,442	$	8,330
Accrued compensation	25,855		31,661
Accrued expenses	7,508		8,345
Deferred revenue	59,093		50,428
Operating lease liabilities	4,341		4,108
Total current liabilities	101,239		102,872
Other liabilities
Deferred revenue, non-current	5,281		5,144
Operating lease liabilities, non-current	14,239		16,426
Deferred income tax liabilities	4,997		7,145
Total liabilities	125,756		131,587
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	—		—
Common stock, $0.001 par value; 110,000,000 shares authorized; 38,074,026 and 37,798,610 shares issued; and 36,029,477 and 36,009,257 shares outstanding, respectively	38		38
Treasury Stock, at cost; 2,044,549 and 1,789,353 shares, respectively	(115,900)		(85,677)
Additional paid-in capital	453,922		433,258
Retained earnings	161,443		138,087
Accumulated other comprehensive loss	(2,483)		(1,447)
Total stockholders’ equity	497,020		484,259
Total liabilities and stockholders’ equity	$	622,776	$	615,846

See accompanying notes to these condensed consolidated financial statements.


SPS COMMERCE, INC.			3			Form 10-Q for the Quarterly Period ended June 30, 2022

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SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts) (unaudited)	2022		2021		2022		2021
Revenues	$	109,178	$	94,539	$	214,371	$	184,633
Cost of revenues	37,530		31,730		72,919		61,700
Gross profit	71,648		62,809		141,452		122,933
Operating expenses
Sales and marketing	24,582		21,952		49,237		43,307
Research and development	11,432		8,899		22,133		17,605
General and administrative	17,198		15,758		32,666		30,495
Amortization of intangible assets	2,468		2,671		4,938		5,335
Total operating expenses	55,680		49,280		108,974		96,742
Income from operations	15,968		13,529		32,478		26,191
Other expense, net	(1,338)		(383)		(915)		(708)
Income before income taxes	14,630		13,146		31,563		25,483
Income tax expense	3,877		2,963		8,207		5,100
Net income	$	10,753	$	10,183	$	23,356	$	20,383
Other comprehensive income (expense)
Foreign currency translation adjustments	(1,743)		172		(1,013)		364
Unrealized loss on investments, net of tax of ($3), ($12), ($4) and $(27), respectively	(8)		(35)		(11)		(80)
Reclassification of (gain) loss on investments into earnings, net of tax of $(8), $11, $(4) and $30, respectively	(23)		33		(12)		90
Total other comprehensive income (expense)	(1,774)		170		(1,036)		374
Comprehensive income	$	8,979	$	10,353	$	22,320	$	20,757

Net income per share
Basic	$	0.30	$	0.28	$	0.65	$	0.57
Diluted	$	0.29	$	0.28	$	0.63	$	0.55

Weighted average common shares used to compute net income per share
Basic	36,085		35,903		36,110		35,828
Diluted	36,862		36,753		36,897		36,741

See accompanying notes to these condensed consolidated financial statements.


SPS COMMERCE, INC.			4			Form 10-Q for the Quarterly Period ended June 30, 2022

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SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY


	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(in thousands, except shares) (unaudited)	Shares	Amount		Shares	Amount
Balances, March 31, 2021	35,861,584	$	37	1,613,250	$	(65,247)	$	402,860	$	103,690	$	(817)	$	440,523
Stock-based compensation	—	—		—	—		7,014		—		—		7,014
Shares issued pursuant to stock awards	36,756	1		—	—		1,227		—		—		1,228
Employee stock purchase plan activity	24,528	—		—	—		2,081		—		—		2,081
Repurchases of common stock	(63,515)	—		63,515	(6,450)		—		—		—		(6,450)
Net income	—	—		—	—		—		10,183		—		10,183
Foreign currency translation adjustments	—	—		—	—		—		—		172		172
Unrealized loss on investments, net of tax	—	—		—	—		—		—		(35)		(35)
Reclassification of loss on investments into earnings, net of tax	—	—		—	—		—		—		33		33
Balances, June 30, 2021	35,859,353	$	38	1,676,765	$	(71,697)	$	413,182	$	113,873	$	(647)	$	454,749

Balances, March 31, 2022	36,120,518	$	38	1,910,897	$	(100,903)	$	442,405	$	150,690	$	(709)	$	491,521
Stock-based compensation	—	—		—	—		8,128		—		—		8,128
Shares issued pursuant to stock awards	9,274	—		—	—		186		—		—		186
Employee stock purchase plan activity	33,337	—		—	—		3,203		—		—		3,203
Repurchases of common stock	(133,652)	—		133,652	(14,997)		—		—		—		(14,997)
Net income	—	—		—	—		—		10,753		—		10,753
Foreign currency translation adjustments	—	—		—	—		—		—		(1,743)		(1,743)
Unrealized loss on investments, net of tax	—	—		—	—		—		—		(8)		(8)
Reclassification of gain on investments into earnings, net of tax	—	—		—	—		—		—		(23)		(23)
Balances, June 30, 2022	36,029,477	$	38	2,044,549	$	(115,900)	$	453,922	$	161,443	$	(2,483)	$	497,020


	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balances, December 31, 2020	35,487,217	$	37	1,613,250	$	(65,247)	$	393,462	$	93,490	$	(1,021)	$	420,721
Stock-based compensation	—	—		—	—		13,505		—		—		13,505
Shares issued pursuant to stock awards	409,502	1		—	—		4,029		—		—		4,030
Employee stock purchase plan activity	26,149	—		—	—		2,186		—		—		2,186
Repurchases of common stock	(63,515)	—		63,515	(6,450)		—		—		—		(6,450)
Net income	—	—		—	—		—		20,383		—		20,383
Foreign currency translation adjustments	—	—		—	—		—		—		364		364
Unrealized loss on investments, net of tax	—	—		—	—		—		—		(80)		(80)
Reclassification of loss on investments into earnings, net of tax	—	—		—	—		—		—		90		90
Balances, June 30, 2021	35,859,353	$	38	1,676,765	$	(71,697)	$	413,182	$	113,873	$	(647)	$	454,749

Balances, December 31, 2021	36,009,257	$	38	1,789,353	$	(85,677)	$	433,258	$	138,087	$	(1,447)	$	484,259
Stock-based compensation	—	—		—	—		16,624		—		—		16,624
Shares issued pursuant to stock awards	240,381	—		—	—		690		—		—		690
Employee stock purchase plan activity	35,035	—		—	—		3,350		—		—		3,350
Repurchases of common stock	(255,196)	—		255,196	(30,223)		—		—		—		(30,223)
Net income	—	—		—	—		—		23,356		—		23,356
Foreign currency translation adjustments	—	—		—	—		—		—		(1,013)		(1,013)
Unrealized loss on investments, net of tax	—	—		—	—		—		—		(11)		(11)
Reclassification of gain on investments into earnings, net of tax	—	—		—	—		—		—		(12)		(12)
Balances, June 30, 2022	36,029,477	$	38	2,044,549	$	(115,900)	$	453,922	$	161,443	$	(2,483)	$	497,020

See accompanying notes to these condensed consolidated financial statements.


SPS COMMERCE, INC.			5			Form 10-Q for the Quarterly Period ended June 30, 2022

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SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Six Months Ended June 30,
(in thousands) (unaudited)	2022		2021
Cash flows from operating activities
Net income	$	23,356	$	20,383
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	(2,160)		351
Depreciation and amortization of property and equipment	7,814		7,294
Amortization of intangible assets	4,938		5,335
Provision for credit losses	2,634		2,831
Stock-based compensation	17,676		14,424
Other, net	8		170
Changes in assets and liabilities
Accounts receivable	(7,862)		(6,945)
Deferred costs	(5,095)		(3,338)
Other current and non-current assets	(1,423)		(1,201)
Accounts payable	(3,234)		(147)
Accrued compensation	(7,186)		3,246
Accrued expenses	(805)		(2,087)
Deferred revenue	8,802		12,893
Operating leases	(678)		1,449
Net cash provided by operating activities	36,785		54,658
Cash flows from investing activities
Purchases of property and equipment	(8,191)		(8,738)
Purchases of investments	(114,603)		(44,034)
Maturities of investments	117,500		35,000
Net cash used in investing activities	(5,294)		(17,772)
Cash flows from financing activities
Repurchases of common stock	(30,223)		(6,450)
Net proceeds from exercise of options to purchase common stock	690		4,030
Net proceeds from employee stock purchase plan	3,350		2,186
Payments for contingent consideration	—		(2,042)
Net cash used in financing activities	(26,183)		(2,276)
Effect of foreign currency exchange rate changes	(135)		65
Net increase in cash and cash equivalents	5,173		34,675
Cash and cash equivalents at beginning of period	207,552		149,692
Cash and cash equivalents at end of period	$	212,725	$	184,367

See accompanying notes to these condensed consolidated financial statements.


SPS COMMERCE, INC.			6			Form 10-Q for the Quarterly Period ended June 30, 2022

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SPS COMMERCE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE A – 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, suppliers, grocers, distributors, and logistics firms to orchestrate the management of item data, order fulfillment, inventory control, and sales analytics across omnichannel retail channels. SPS Commerce delivers our products using a full-service model whereby our internal experts monitor, update, and boost network performance on our customers’ behalf.

The services offered by SPS Commerce eliminate the need for on-premise software and support staff by taking on that capability on the customer’s behalf. The services we provide enable our customers to increase their supply cycle agility, optimize their inventory levels and sell-through, reduce operational costs and gain increased visibility into customer orders, to help ensure that suppliers, grocers, distributors, and logistics firms can satisfy exacting retailer requirements.

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, 2021, 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 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, 2022. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC, for additional information regarding our significant accounting policies.

Accounting Pronouncements Not Yet Adopted

Standard

Date of Issuance

Description

Date of Required Adoption

Effect on the Financial Statements

ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

October 2021

This amendment requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, effective for all business combinations in the year of adoption and thereafter.

January 2023

The adoption of this standard may have a material impact on the purchase accounting for business combinations depending on the specific amount of contract assets and liabilities being acquired.


SPS COMMERCE, INC.			7			Form 10-Q for the Quarterly Period ended June 30, 2022

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NOTE B – Revenue

We derive our revenues from the following revenue streams:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Recurring revenues:
Fulfillment	$	87,887	$	75,228	$	172,618	$	146,632
Analytics	11,648		10,381		22,944		20,525
Other	1,628		1,331		3,168		2,584
Recurring revenues	101,163		86,940		198,730		169,741
One-time revenues	8,015		7,599		15,641		14,892
Total revenue	$	109,178	$	94,539	$	214,371	$	184,633

Revenues are the amount that reflects the consideration we are contractually and legally entitled to, as well as expect to collect, in exchange for those services.

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 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 June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Balance, beginning of period	$	14,938	$	12,102	$	14,459	$	11,118
Invoiced set-up fees	4,058		4,343		8,061		8,210
Recognized set-up fees	(3,687)		(3,101)		(7,211)		(5,984)
Balance, end of period	$	15,309	$	13,344	$	15,309	$	13,344


SPS COMMERCE, INC.			8			Form 10-Q for the Quarterly Period ended June 30, 2022

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The entire balance of deferred set-up fees will be recognized within two years. Those that will be recognized within the next year are classified as current, whereas the remainder are classified as non-current.

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.

NOTE C – Deferred Costs

The deferred costs activity was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Balance, beginning of period	$	62,610	$	51,540	$	59,720	$	50,595
Incurred deferred costs	17,637		16,036		35,418		29,463
Amortized deferred costs	(15,582)		(13,735)		(30,473)		(26,217)
Balance, end of period	$	64,665	$	53,841	$	64,665	$	53,841

NOTE D – Financial Instruments

Cash Equivalents and Investments

Cash equivalents and investments consisted of the following:


	June 30, 2022						December 31, 2021
(in thousands)	Amortized Cost		Unrealized Losses, net		Fair Value		Amortized Cost		Unrealized Gains (Losses), net		Fair Value
Cash equivalents:
Money market funds	$	138,729	$	—	$	138,729	$	138,205	$	—	$	138,205
Certificates of deposit	6,904		—		6,904		7,268		—		7,268
Marketable securities:
Commercial paper	39,634		(25)		39,609		34,984		7		34,991
U.S. treasury securities	—		—		—		7,500		(1)		7,499
	$	185,267	$	(25)	$	185,242	$	187,957	$	6	$	187,963


SPS COMMERCE, INC.			9			Form 10-Q for the Quarterly Period ended June 30, 2022

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Recurring Fair Value Measurements

The following table details the fair value hierarchy of our assets and liabilities measured at a fair value on a recurring basis:


	June 30, 2022								December 31, 2021
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	138,729	$	—	$	—	$	138,729	$	138,205	$	—	$	—	$	138,205
Certificates of deposit	6,904		—		—		6,904		7,268		—		—		7,268
Marketable securities:
Commercial paper	—		39,609		—		39,609		—		34,991		—		34,991
U.S. treasury securities	—		—		—		—		—		7,499		—		7,499
	$	145,633	$	39,609	$	—	$	185,242	$	145,473	$	42,490	$	—	$	187,963

See Note E to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC, for additional information regarding the three levels of inputs that may be used to measure fair value.

NOTE E – Allowance for Credit Losses

The allowance for credit losses activity, included in accounts receivable, net, was as follows:


	Six Months Ended June 30,
(in thousands)	2022		2021
Balance, beginning of period	$	4,249	$	4,233
Provision for credit losses	2,634		2,831
Write-offs, net of recoveries	(2,429)		(2,809)
Balance, end of period	$	4,454	$	4,255

NOTE F – Property and Equipment, Net

Property and equipment, net consisted of the following:


(in thousands)	June 30, 2022		December 31, 2021
Internally developed software	$	47,230	$	44,981
Computer equipment	31,305		29,329
Leasehold improvements	16,650		16,685
Office equipment and furniture	10,929		10,972
Property and equipment, cost	106,114		101,967
Less: accumulated depreciation and amortization	(74,114)		(70,066)
Total property and equipment, net	$	32,000	$	31,901


SPS COMMERCE, INC.			10			Form 10-Q for the Quarterly Period ended June 30, 2022

Table of Contents

NOTE G – Goodwill and Intangible Assets, Net

Goodwill

The activity in goodwill was as follows:


	Six Months Ended June 30,
(in thousands)	2022		2021
Balance, beginning of period	$	143,663	$	134,853
Foreign currency translation	(703)		233
Remeasurement from provisional purchase accounting amount	—		268
Balance, end of period	$	142,960	$	135,354

Intangible Assets

Intangible assets, net consisted of the following:


	June 30, 2022
($ in thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net		Weighted Average Remaining Amortization Period
Subscriber relationships	$	61,142	$	(33,964)	$	(51)	$	27,127	6.0 years
Acquired technology	35,327		(8,857)		—		26,470		6.3 years
	$	96,469	$	(42,821)	$	(51)	$	53,597	6.2 years


	December 31, 2021
($ in thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net		Weighted Average Remaining Amortization Period
Subscriber relationships	$	61,270	$	(29,866)	$	(1,395)	$	30,009	6.4 years
Acquired technology	35,316		(6,738)		—		28,578		6.8 years
	$	96,586	$	(36,604)	$	(1,395)	$	58,587	6.6 years

The estimated future annual amortization expense related to intangible assets is as follows: