PFS reports record order fulfillment volume for third year in a row

Record annual order fulfillment driven by existing and new client activity throughout the year

PFS reported record fulfillment volumes for 2022 and the Thanksgiving Week and Cyber Week periods. PFS fulfilled over 30 million orders in 2022.

“PFS executed well for its clients in 2022, and I am incredibly proud of our performance,” said Zach Thomann, COO and President of PFS. “We broke several company records along the way, which culminated in setting a third straight record year of orders shipped from our fulfillment centers.”

“Several of our clients had record revenue days as a result of high consumer demand during holiday promotions and our team’s high-quality execution,” continued Thomann. “Deploying a multi-node fulfillment operation for several large clients helped us maximize our available labor pool and achieve these record daily volumes. I am grateful for the effort our team put forth leading up to and during the holiday peak period to achieve these record numbers.”

Promotions and Consumer Buying More Focused on Thanksgiving Week and Cyber Week

This year, brands chose a more traditional holiday promotional cycle around Black Friday and Cyber Monday with less promotional activity after Cyber Week through the end of the year. This client promotional behavior resulted in consumer buyer behavior returning to similar patterns experienced in 2018 and 2019. This shift led to significant fulfillment volume spikes during Thanksgiving Week 2022, where PFS fulfilled approximately 16% more orders compared to its previous record set during Thanksgiving Week 2020, and also Cyber Week 2022, where PFS fulfilled approximately 12% more orders compared to its previous record set during Cyber Week 2020.

Similar to 2018 and 2019, PFS experienced a more significant decrease in fulfillment volumes as client promotional activities slowed following Cyber Week as compared to 2020 and 2021, which is expected to negatively impact year-over-year comparisons. PFS still expects to deliver strong annual revenue performance, within the prior guidance range, with revenue anticipated to be toward the bottom end of the targeted 5% to 10% SFE revenue growth.

Record Sales Bookings and Multi-Node Fulfillment Expansion

PFS also reported 31 new sales bookings estimated to be worth $44.9M in combined ACV in FY 2022, which set a new company record and resulted in 20 new client implementations throughout the year. The company’s ability to launch these new clients in conjunction with opening its second Las Vegas-based fulfillment center was key to success.

Thomann concluded: “As we discussed throughout 2022, the momentum we created early in the year with new sales bookings from both new and existing clients resulted in a record sales bookings year. Combining these client wins with certain existing client overperformance drove the above record order fulfillment volumes and solidified our multi-node strategy as a sustainable growth model. Eighteen PFS brands now ship from multiple PFS fulfillment centers—up from 15 at the end of 2021—and we have plans to continue expanding our fulfillment center footprint in 2023. Our previously announced second Dallas-area fulfillment center is scheduled to open in Q2, and we are also exploring new fulfillment space in the United Kingdom. As we progress into 2023, we will continue to deliver quality services and a differentiated eCommerce fulfillment platform for our esteemed clients to distinguish PFS in the market and sets us up for continued targeted SFE revenue growth in 2023 of at least 5% to 10%.”