After two decades and more than 2000% revenue growth, SPS Commerce CEO is retiring

Archie Black, the longtime chief executive of Minneapolis-based software firm SPS Commerce, is retiring from the top office and transitioning into to a newly created role of executive chairman.

The moves are part of a planned transition process and the company has already begun its CEO search. Current board Chair Phil Soran will become lead independent director.

Black, 60, has led the company — which provides cloud-based supply chain solutions for retailers and suppliers — since 2001. Soran credits him with growing the company from an idea into a "global powerhouse".

"As Archie transitions from CEO to executive chair, the work we do — and the industry leading services we provide — will not change," said Mark O'Leary, chief marketing officer. "Our customers around the world will continue to experience our award-winning services."

During Black's tenure, the company's employee count grew from 75 to 2,215. SPS has had 88 consecutive quarters of increased sales, as annual revenue grew from less than $20 million to $450 million in 2022. SPS also has been consistently profitable since 2009.

The company's investors also have benefited during his tenure. Black led the company through its April 2010 initial public offering when the shares were priced at $12 a share. Since then, much like its annual revenue, shares have had a total return of more than 2000%, closing Thursday at $150.29 a share.

"Black has done a great job of leading SPS Commerce and will be missed by investors. He is leaving SPS Commerce in a strong position, and we expect the role to draw a high level of interest," Matthew Pfau, an analyst with William Blair, wrote in a note to investors.

As executive chairman, Black will aid the CEO transition, offering advice on strategy and business development.

"I am proud of our accomplishments, and I believe our strategy and our people position SPS Commerce for continued success and sustained, profitable growth," Black said in the release.

Black showed versatility as a CEO leading an early-growth stage through recessions, an IPO, multiple acquisitions, a pandemic and the aftermath of George Floyd's murder.

Pat Ryan, the chairman of Ryan Cos., knows Black from the Minnesota Business Partnership and as a fellow trustee of the University of St. Thomas.

"By his own admission, he didn't know what a CEO did," Ryan said in an interview. "And so he's self taught, and he's humble enough to reach out to people to and to seek their advice. So, yeah, he has matured a lot as a strategic thinker, and as a motivator and a leader."