Manhattan Associates, Inc. (NASDAQ:MANH) Q3 2023 Earnings Call Transcript

Joe Vruwink: Okay, that’s great. And then, Eddie a few comments in your prepared remarks, new stores activating at a record pace, warehouse management record go-lives. That – Cloud is certainly more efficient. I’m just wondering like for instance, this quarter, there was a really strong RPO billings quarter. Does kind of the relationship between what’s going in the cloud RPO in the current period and the timeline for when you see it in Services and ultimately see it in Cloud, is that all coming in sooner so that’s within a 12 – you typically talk about a next 24-month RPO contribution. But are you seeing more go-live than kind of that 12-month timeframe has a virtue of just more being on Cloud?

Eddie Capel: No. I think the initial implementation of whether it be Warehouse Management, point-of-sale or order management really hasn’t changed very much from an on-prem world to a Cloud world. Because, frankly, the design work that you do, the configuration work, the testing work isn’t – you don’t see a lot of positive impact by moving to the Cloud. A little, because you don’t have to deploy infrastructure and so forth, but not a ton. But where it really kicks in is when you start rolling out across either multiple distribution centers or multiple stores because, of course, you’ve got a single version of the software that’s in the Cloud, and you can roll out much faster. So you don’t really see a faster move from RPO to revenue. That’s remained pretty consistent. But then, as I say, the activation, once you get into the flywheel gets moving, tends to move a little faster.

Joe Vruwink: Okay. Thank you very much.

Eddie Capel: Well, thanks.

Operator: Our next question comes from Mark Schappel with Loop Capital Markets. Please proceed with your question.

Mark Schappel: Hi. Thank you for taking my question. And guys, nice job on the quarter, especially around the new logo business. And on the new logo front, just kind of building on an earlier question there. Eddie, could you just talk whether you’re seeing your new logo business concentrated around certain solutions more than others, like whether it’s WM – WMS or like the Active omni solution?

Eddie Capel: Yeah. No, I can comment on that, Mark, and it’s really – there is no concentration particularly. It’s pretty well balanced. We know that roughly, and it bounces by quarter, but 50% of our revenue comes from WMS and 25% or 30% from omni, 30% from our solution and so forth. And it’s pretty balanced across those parameters. As we always say, bounces quarter-by-quarter a little bit. But generally, it’s across the portfolio and across geographies as well. So it’s – there’s no real point of concentration for the new logos and of course, we love it that way.

Mark Schappel: Great, thanks. And then I appreciate your comments around the new customer engagement solution and particularly expanding your operational footprint into the contact center. I was wondering if you could just talk a little bit more about – or maybe give an example or two of how your solutions are actually interacting with contact center agents?

Eddie Capel: Well, you tend to think about traditional call center agents just taking a query, right? Taking a call, where is my order, kind of like maybe a change of shipment destination, maybe a change the color of a product, goodness to bid, maybe even canceling an order. And of course, we take care of all of those capabilities. But now you can think about a broader set of engagement from that call center agent, all within the Active omni solution. So any type of case management, exception case management, you call in and need to have something found in – discovered and found in a shipping hub. You need it moved from one location to another. You need to add some kind of service capability, all of that case management can now be handled inside of our call center application as well as all of the other engagement actions, sophisticated returns, sophisticated exchanges.