MANH - Earnings call transcript Q3 2017 | Manhattan Associates, Inc.

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Operator

Good afternoon. My name is Jessie and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the Manhattan Associates Q3 2017 Earnings Conference Call. [Operator Instructions] As a reminder, ladies and gentlemen, this call is being recorded today, Tuesday, October 24. I’d now like to introduce Eddie Capel, CEO; and Dennis Story, CFO of Manhattan Associates. Mr. your begin may you conference. Story,

Dennis Story

in and Thank Australia. Manhattan global everyone. is here to afternoon, XXXX you, call, under third Sydney, am a Jessie, Associates truly quarter Welcome It's Eddie good earnings in and Atlanta, I down call.

will cautionary language over Eddie. turn call and review our I then to So the

call, this future session, or financial future question-and-answer events Manhattan make Associates. may During we the performance including regarding forward-looking of statements

annual future uncertainties, cautioned and that SEC and results important from our statements are I discussion statements. these materially risk results report with that the could not differ that performance, XX-K and our factor Manhattan to reports may report. in contained for of are for actual You fiscal on in to projections the the involve in Form XXXX guarantees differ cause actual that refer forward-looking from those files particularly you factors Associates risks forward-looking projections, materially our

obligation statements. are to We update no these under

certain to In reconciled to All been addition, have SEC our comments accordance measures non-GAAP measures with to non-GAAP financial additional in information provide rules. in related investors. GAAP effort the an measures include

submitted reconciliation on find will X-K SEC to we in and the earlier today You our the manh.com. Form at website schedules

call to I will Now, turn the over Eddie.

Eddie Capel

a Good Manhattan. afternoon, quarter solid was everybody. QX for very

solutions results financial the in particularly retail cloud increased demonstrate omni-channel our Our our of continued the market and adoption sector. leadership

substantial quarter teams We implementation. level capabilities to efficient performed high continue very delivering the differentiated a delivering market strong the in our at innovation to and services drive plan

that I'm our Manhattan quarter very of response has And exceeded Active suite. the customer represents full prospect first our QX launch and So pleased to report expectations. Solutions post

two there our, only early it's to play. in be factors one with While belt principal under but quarter appears

Omni is of And we’re we XX% market. competitive business and Manhattan secondly, client by itself with cloud first our based preferred cloud our in deals. Omni our buying prospects seeing and revenue the continued to customers as And globally, Already Active Manhattan cloud alternatives cloud for software a expect to superior differentiated discussions solution, the generated on over the and based deployment approach. acceleration total model. look Manhattan Active product QX customers Firstly upon feedback is Active

with We manage comps financial to reflecting operational our and clients to results continue towards revenue, cloud business were reflect metrics strategically solid other More all our strong retail year-over-year across execution. the models. QX services challenges financial move anticipated subscription-based by macro

exit entered in the XX% a $XX.X retail million While clearly the managing stronger than we $X.X will License remain through we revenues year. tough a prior year, cautious million XXXX cycle, for over down we million business was perpetual license $X.X perpetual EMEA otherwise prior X% operations revenue to basis, delivered quarter. $X.X license license quarter. million grew On equivalent APAC in subscription revenue of in the year, of the deals converted over a revenue and quarter

adjusted revenue the million, XXXX. services down $XXX QX flat line versus of revenue total EPS and year-over-year prior in we compared X% And to in summary, delivered up was of about year. in QX rate QX X% prior that’s Our we that $X.XX reported year with

basis, total X% perpetual X%. a revenue on up Now up growth EPS adjusted equivalent and was

distribution APAC. that equivalent were Five deals added closing deals, four and healthy head-to-head license two them Active Of for subscription time. portfolio two very transportation deals selected for license were and Two one additional were $X for million model. model. customer were large perpetually in a deals were Omni, new management. major the these the win U.S. with remained two two our perpetual our of several existing. and than to perpetual XX% competitive deals winning with greater large - brands two of in customers against Manhattan million Our the competitors global We the had We management, of was $X rates plus of new

in All our customers. new with Manhattan deals QX were Active Omni of

mix logistics license more verticals contributors to our consumer previously our exceeding again new wins. warehouse XX% stated, retail, license Active than were our split solutions. third-party Our up QX fee XX% And offering was roughly half making software the as our in QX interest in in between and management wins. strongest customers and number other extending of earnings a Manhattan QX detailed goods license license and is The our finally cycles expectations. very of And and And of we're some software positive new sales release highlights technical enabling architecture. capabilities our press as which our by of in our discussions driving are customers, a full prospects evaluation way the with permitted Omni

QX services, and continue over Now and APAC The increased past marks XXXX versus QX the prior XX to EMEA go-lives XX% down XXX was and in XXXX. our while and revenue year-to-date year-over-year to from increased sequentially consulting against was over from X% completed customers. Americas QX months down comp. receive XX% year, We system down high July X% turning XX%

the reflect over times a to early well implementation a more against and rate five continues to agile headwind our an Our associated to highly materially have goal these as results that note tough is in and cycle performing important reduce consulting organization particularly years. the internal process, execute in that next results positive secular as against retail we a implementation well efficient U.S. market

value on of customer ownership lifetime is increasing customers of cost order total owned focus time drive to increasing market the with lower value. and Our in to our corollary time to

unveiled in omni-channel year, in Omni, service-cloud single and mentioned the our and call, industry's for including set of we an product the this million in continue R&D to Active is history in investment. This quarter, beyond factor of to remainder yielding a first plans nearly $XX and products the XXXX invested increased development as first type last we XXX Manhattan investment nearly the and company's research announcement native the May of as largest of with R&D dedicated our For platform. associates our

facing of industry's application our Active with in literally native can and Manhattan together less is customers, a As micro associate technology Only solutions the technology management, contact single Manhattan The cloud every managed cobble and associate for that delivers the combines center, order version applications. contact single technology. fulfillment best-in-class sale all their next serving needs and the of store differentiating acquisitions uniquely core of yet of service is meets Furthermore, extensible new only disparate capability application Active the consumer. point Manhattan customer Manhattan's Omni reminder, our access Active merchant. to Omni our without updates. components a Every less set supports native cloud market-leading sacrifice is others every to of what Omni the of deliver experience forms modern store to the of have generation the that a only in center channel level X a many customers and customization commerce. at Tier through for unifies clienteling

pipeline current power larger customers already and the and in a well-known applications for of the our combined Manhattan of Active retailer, have to to deployment have goods A Omni, report accompanies our addition of consumer and retail of the number underway to brick-and-mortar department retailers, store very others point-of-sale fulfillment a we several store consumer In business of of was of underway direct in models. deployment specialty OMS variety implementations I'm a focused spaces. business, happy we covering multibillion-dollar interested even an a business a that direct

for are global being Manhattan brands. several information with Omni Additionally, Active international planned large

of year. innovation. each store loyalty, and customers As inventory I’ll the upgrades. and for of With Further the to revenue of capabilities applications past lowers while by delivery driving of had most eliminating order consumer scale, future done initial Manhattan May. optimizing product the theme two since the finally typically and innovation on and Omni, point-of-sale releases of front, already margin. our we've and in management, return faster years Active enabling versionless we've releases speed need substantial fulfillment In or two services This engagement deeper the out, release platform rapid TCO provides one

We XXXX our we turning XX people and sales finished professionals basis. QX XX growth QX and demand associates, technical, carrying XXXX. about marketing globe that's about add XX ended sales and last the sales to from quota around year-end in to quarter opportunistically down quarter the reps the XXX on Now down the with and about compared global XXXX employees from with to with continue sales management, and with we unchanged look

provide and So Dennis, you why that our the and covers prepared a update summary. guidance I'll just with then preliminary don’t beyond along with financial our and remarks business the update. for brief XXXX close outlook

Dennis Story

Eddie. thanks Okay,

demand converted positively Asia-Pacific million with expense year management. comps of license traditional million and X.X down EPS flat Europe have in year-over-year Omni reported share flow to quarter earnings deals opinion up was was quarter ago, Americas Manhattan total for our to we revenue transition. cloud cash XXXX compared As XX%, per this in QX a QX revenue on my influenced perpetual revenue by of based customer as fact reported impact. Active $X.XX slightly would XXX and and were Eddie EPS cloud our future XX%. the $X.XX what on versus was routable was Adjusted with Approximately up EPS $X.XX X%, flat of grew mentioned,

per year. share was earnings flat compared prior to $X.XX Our GAAP

is your reference to For release of detailed included today. reconciliation our in non-GAAP EPS a GAAP earnings

converted The year. in equivalent million to license versus So on-prem XX% this of million subscription cloud will to license transition that QX QX license Manhattan's quarter, reported XXXX revenue for revenue declining begin revenue $XX.X by totaled recognize cloud. generating revenue the driven the X.X in

million license portion subscription value. for clear, the to represents only $X.X the Just total the subscription be of

totaled includes license Pacific the were our expect out reported Europe activity product. million. we down Regional Asia services, on predominantly and license QX million, have robust year. Omni Our in year quarter Americas Active we revenue XX.X down over so the our X% similar from sales impact million million cloud QX services million for $X.X for Global pipeline as Manhattan $XXX.X is close solutions of cloud revenue prior million, $XX.X sequentially. X.X will and license Shifting TMS X% $X.X QX a revenue to splits

strong million comprised up low quarter growth. streams revenue compared for year over license and Americas a contributed last up cash year Our to Europe Maintenance X% and maintenance. up down the to from collections Asia-Pacific XX% percent on know was X% XX% of Consulting prior in totaled million $XX.X over XX and sequentially of year-over-year XX% plus XX% collections QX combined the as revenue year-over-year, you and growth, two $XX down this were X% down comp. consulting XXXX. with APAC services is quarter rates Europe revenue retention revenue totaled increasing year-over-year revenue for

maintenance revenue primarily from benefiting on we strong margins lumpiness inter-period accruals. cash basis reminder, for performance-based cause Consolidated timing quarter-to-quarter. and were a cash productivity from a XX% compensation can services As of collections quarter recognized of the lower

XX.X% will of XX%. range QX XX% full-year margins compensation expect the to about to We million services be margins are be will likely lower margins XXXX to reset about performance-based $X points expense services and which XXX XXXX basis XXXX. services and in by our in XXXX due benefiting

Turning QX to impact totaled margin of license $XX.X margins, margin with of operating points. operating revenue from XX.X%. adjusted operating The operating $X.X XXX subscription revenue lowered million to converting income an income perpetual and million basis

Our of full margin operating million range income $XXX an $XXX operating is estimate XXXX to about year XX.X%. million with

growth it's have important That by our margins operating had performance-based to would the covers expense margins XXXX positively XX%. lower about disappointing been points. impacted rates, If note basis we XXX While compensation would results. operating the achieved operating

of a full-year XX.X% project income QX share. continue for effective rate adjusted XX.X% Our for earnings was tax effective and adjusted rate per to tax we

restricted our shares shares. For totaled tax will XXXX XX.X to rate million related GAAP to GAAP, new vesting the associated stock taxes Diluted effective with for quarter accounting XX.X%. rules lower

year-to-date X%. shares Our common are outstanding down

any million repurchases. diluted $XX.X strength to competition. that our weighted balance execute repurchases currently and million our replenish show to additional order approved We cash This million financial share XX about repurchase to not estimate diluted $XX.X common we and be our did be like carry we QX sheet average by share on had reserves, our estimate of reestablish threshold shares We domestic to in million cash For $XXX the against QX does stock shares. shares Board. authority about assume to full-year not

debt metrics, $XXX quarter million and million year-to-date in from zero zero the $XXX.X days XXXX. be cash $XX for Turning days flow and cash operations investments estimate QX to operating we with the cash QX debt with capital million XX in QX closed compared $X cash and was XXXX million We were to were DSOs totaling over full-year year. expenditures totaling prior XX% versus million reported $X.X and $XX $X about XX up million. flow to CapEx quarter.

XXXX preliminary remarks. closing Now to our and provide I'll a for guidance and outlook XXXX Eddie then update hand off

EPS revenue full-year So, $XXX and issued we be of are maintaining to quarter. million the our million. last range revenue in $XXX will Total guidance XXXX total

revenue the QX to With QX season, QX typical of decline XXXX modeling about X% are sequential XXXX. to services we and holiday from X%

earnings at diluted our $X.XX guidance $X.XX. range adjusted to share For per remains

For is GAAP at a no and change diluted $X.XX again $X.XX. there EPS to

several model providing towards our for Now transition one revenue all X, is our this of XXXX are adopting primary traditional streets adoption ramping companies perpetual ASC XXXX, shifting four XXX to will currently license subscription geared and adoption moving recognition are with be There the parts parameters focus impacting anticipated models are cloud broad XXX P&L accounting Number business. XXXX profile. January elements standard. XXXX to XXXX the we ASC as up, here which

investment. performance-based cloud Second transition, strategic is our fourth compensation reset and Manhattan third

services One, Manhattan. extend related a adoption, prior. you are we the we two that and expense to amortizing report restating years months. revenue retrospective so commissions net will will other be XX on maintenance the beyond rate that not related rev XXX will expense I basis. and XXXX for adopt hardware be all, our primary know we statement, two So of on modified we excites and will income impacts There on

We're revenue revenue While the and impact to the we versus The netting growth earnings of will is year it reduce will still base of this our impact hardware expect net but cost currently comp since amortized title the comps by profit, neutral take therefore against XXXX on commissions evaluating to requires XXXX. not revenue hardware sold. impact our basis. do not any a be XXX directly million impact $XX reporting about material. not XXXX do gross

transition. revenue revenue early cloud client on software recognized of we're in preference be cloud to Omni XX% is estimating Based deployment, Second Manhattan for XX% our Active our to XXXX. cloud

cost total and triple revenue recognized report will to will be with software pegging in to we we so approximately QX million revenue are in new and a and and in from of We software double The existing all license XXXX, $XX customers. XXXX, revenue XXXX new reported infrastructure that Starting will splits line range. an service XXXX cloud cloud expect include service our as revenue over subscription revenue financials. revenue our hosting hosted our publicly as a

cost costs to number depend we cloud heavily our third-party the value on of any and cloud the The of will deals include global with relative cost in of software management the always line environments. and will mix deals license close of the As the performance software and and our associated cloud large quarter. operations, compliance cloud cloud

investment As and cloud XXXX be license margin large margin cost. to about initial gross about cloud a our portion be XX% of to checkpoint, expect our we our upfront fixed gross XX.X% ops is a as

worked to and revenue sharing onto the planned revenue our these negative Moving lower performance plans third associates the compensation impact XXXX in planned designed as performance-based reset. previous our compensation years. our of between element, shareholders. significantly to than paid lower performance-based employees our Due is lower than than XXXX, In in by

XXXX As with coming plans, achieving with compensation expectation the the million. about $XX we impact in our of of financial reset were began the financial goals year we

layer a as We very investors while serving annually have strides customers. and heritage innovation attracting We're expertise and investment industry, cloud drive of for addressable to sales in element supply-chain domain and target fourth adding product driven omni-channel investment talent. our represents in expansion. $XX of market important making performance-based a finally innovation, our product This a is innovation And and to deepest second focus Board market capital $XX the million necessary markets, our the great compensation phased Resetting market. marketing million the for retaining demand coverage is operations top our on well. customers, commerce strategic component essentially of expand by in of across earmark growth strong continuously addressable investment execution and

impacts. factoring cycle the our in We in are budgeting transitional currently

XXXX QX call provide will XXXX. February that's We be to on earnings February X, held going on - guidance our

for address for into guidance range follows; $XXX metrics XXXX revenue of our estimated assuming We preliminary total factors million, at to account our XXXX XXXX for the total outlook of taking revenue, time. After of key our $XXX above $XXX million. will revenue that also is million - the midpoint

revenue million of X%, X.X% of XXXX total about decline an to revenue XXXX to X% X.X% of increase expect from $XXX of to decline recurring respectively. million we is estimate hardware adjusting our So a be a $XXX range at XXXX for XX% is XXX the from targeted and to revenue revenue. representing Apples-to-apples revenue mix for impact, total

$X.XX, of XXXX $X.XX XX.X% transition EPS targeting ramping of to for share per with operating a the decline a we of a from estimated in midpoint to up margins guidance to operating cloud Adjusted the XX%. XXXX earnings the to $X.XX margin of For representing range are business is XXXX, our EPS XX.X%. XX% assuming an range

will I call. key address As longer-term mentioned, metrics in QX our trends we in earnings

is foreign U.S. Our shares rate are changes. tax assumes and activity estimate state effective no QX subject or diluted buyback legislation we the XXXX. year which to shares full XX.X% federal XX.X in million quarter per tax projecting XXXX Per

much. earlier some back on XXXX. just I've Thank very to And of for the a turn So call added It X-K I'll to closing to lot the update. today, transparency today's you effort and attached website@manage.com. recaps some in our provided for to have here Form a Eddie our covers financial section financial earnings in the investors release That SEC supplemental we schedules the information we we an provide some comments. the submitted in to covered you

Eddie Capel

Thanks brief remarks close prepared my I’ll a Dennis. conclusion. with

the market our rapidly deep innovation, needs delivering customer success to expertise. evolving continues of driven domain our on leveraging success focusing by anticipated As and be a

us market investment us. the and reason and on in cautious, certainly subscription global target positive we’re to ahead exciting continue evolution be will differentiation, bullish delivering retail true feedback the and the cloud-based to very the opportunity market supply-chain into and complexity our years. give advancing world's commerce that significant innovation solutions of The Manhattan retail market multiyear Associates. leading to markets and suite capital for out and XXXX the and Supply chain customers For macroeconomic leadership model cycles condition is we’re fueling our of in out outpacing in on expectations. we’re leading Customer that demonstrate in is investing certainly that extend energy move

is Our competitive strong. position

extend differentiation and we're We market, Jesse, employees, in world's very innovation, the and be commerce our and require that, with to invest talented we’d software we that adapt market believe continue now best innovation dynamics XXXX to and to take And leadership any the that in adjustable customers for beyond. supply-chain to and invest most happy questions. well-positioned supply-chain market solutions with

Operator

Your [Operator from Terry Instructions] Tillman comes question with SunTrust first Robinson.

Your line is open.

Terry Tillman

the you an the products, license business at it’s series a any gate. cloud the and I a the seeing obviously for clarity XX see of looking look some rate is [ph] we software that so at, cloud Dennis really or helpful. Dennis let’s but that you like I incremental at all on provided proactive what’s of sales on-prem growth out there numbers, strong so questions, first, XX have like, being to for us initial break color the any look if So, appreciate million? Also products just 'XX of underlying I is can of a Could Active pre-existing of at there traditional is out look way you the know business, at you the growth million said on just good next year. you 'XX, of lot then a it’s really it any about front, start look if in XXXX, giving view, model, Omni I first,

Dennis Story

Terry? equivalent on-prem for asking You're right,

Terry Tillman

going do Yes, or couple that and will out account take everything to of new get preexisting how there? subscription, in growth remain to can't at know revenue you the licensed if what of existing I'm and but want what some forecast you're And your of WMS some you sub anything with fine, trying stuff. it, products I pre-existing and that has are assuming also business of really into to products, do kind the from WMS to traditional, that 'XX. strip just

Dennis Story

We’ll prepared QX. detail don’t just that level once of we better Yes, Terry. we yet, be close out have

Terry Tillman

evolution this -- play-out forecasting. I guess as relates transition, it will what you as going are a always is customers exactly down like potentially be in it puts it or you WMS is and cloud of takes, never that the thing to this of guys to for that’s for and road? your relates terms one There’s question we're and going though to the in to about something but cloud the ongoing get prospects business? And either the asking are of longer WMS

Eddie Capel

So, further I think the it’s down a little road.

WMS, because its need be such from lesser at seems one in update number in particular for delivery Solutions, innovation be and to benefits. is frequent particular while model. look of need WMS are the consistent a seem not a bit juncture model more arena. at WMS to the economic and for deploying WMS more the disruptive The both preferred, that subscription space, and [indiscernible] this a we with market. from world they the cloud As does deployment technology innovation important Active much buying economic Omni by WMS perspective focus certainly The is certainly has frankly the In the frequent

Terry Tillman

question. is directly just my Eddie, then for you. last this And

actually accelerate the general further omni-channel You given even like with or inertia, quicker just a doing you. can thinking Thank management omni-channel see investments, do know Active delivery deploy of and of that to disruption in you to maybe the of when it should Active of capabilities a just there's yesterday. recognition revenue past, that in provide or I you talking today I'm everybody I'm adoption seems story in now be it and overall investors accelerate know to type order more adoption maybe now the your could Omni, even cloud? writable around omni-channel Omni, it, but there's about

Eddie Capel

very technical deploy incrementally our number based it’s customers able Terry. and offering, ability deployment up I to certainly deal in to to the both us Certainly and great very think that be a area. to helpful, the right the offers the cloud promise one in we’re think and of more speed is a on ramp scale valuable the Yes, economic model that I

Operator

next The James. Raymond Brian question with Peterson comes from

is open. line Your

Brian Peterson

question. the taking for Thanks

you tactical we're So expanding something markets? as is or on maybe Active just traditional which high-end the one focus market the thinking maybe about that's Eddie, continue for a base do Omni to customer that of think to down potentially kind you and has of going your TAM that's more moving

Eddie Capel

we revenue the solution again expand. able down certainly in as and economic cloud both our perspective to us certainly and deployment model to from I to to Yes, market a gives the forth an deliver smaller ability way, so think customers opportunity go a be

the and very clarify evident need for that focused and on consumer, just the into that capabilities very seamless being would innovation basis. a customer very delivering know, retailers has capability X and sophisticated, is become more that I the down that driven that more to the smaller as Now, day Tier those on we X certainly we’re but Tier delivering experience over day

our So, that for we’re sure. go deeper certainly about to pyramid into encouraged ability

Brian Peterson

can value guys way explicit Is appreciate aspects, the and of other any that impact And customer size math guys impact you the services and on, are that. lifetime the you that you license so any on have there provide just to on cloud the could as I you key total that. we think do as follow-up pretty transition that about a of

Dennis Story

and Brian, get we Way detailed about we’ll as the level too us mentioned early more metrics I we guidance behind another quarter talk once in February. set

Operator

from with KeyBanc. comes question Garg Monika next Your

open. is line Your

Monika Garg

for Thanks my question. taking

ASI I XXXX and year-over-year your were operating margin flattish the right. impact of in of is but kind points, guidance XXXX guiding both almost at guidance, margins, XX down if revenue is operating First look on the XXX you your

So XX points XXXX? and reconcile gap XXXX between help could me you the

Dennis Story

stepped Yes that. kind so of through Monica I

is strategic number it's number resetting generation know three and factors. based three million transition potential based one Number on $XX is comp You performance our demand the then two we’ve to is earmarked and of the big growth investment. cloud,

Monika Garg

then, strategic transition million $XX cloud comp million to and about is impact then So $XX investment, for $XX million rest?

Dennis Story

Sure, three two at - and take transition it transition you year deal on-prem from take going to to traditional spreading cloud. to a least significant impact when begin I perpetual as you you you the have five-year the license year it's in mean period know it's over when one, a

Monika Garg

Looking ASC impact. total kind of XXXX revenue revenue guidance, at flattish the in XXX

softer are You to expecting be so too that you revenue just be said expecting services flat are means? flat you to

Dennis Story

on low say into is now would I to to range right end the about high what X% goal be goal where of the of be on the to the factoring range that forecast down is flat the end the we X%.

Monika Garg

cloud? service cloud perspective services, I model when guess to need us impact picture people to help broader should as you move understand could to you shift generally revenue you lower so how we about think

Dennis Story

think that's QX will term impact. of give or part metrics guidance talk about talk itself. that We'll key and call the the we'll - I longer in

Monika Garg

Just guidance XXXX? for a free last one, flow cash

Dennis Story

cash of flow guidance We don't have. free give never right now,

Operator

from Blair. comes Matt question next with Your Pfau William

is line Your open.

Matt Pfau

you wanted that about in that longer-term, to said some start to that margins know expected them year. be think I the you next you first start on scale to cloud the How for business XX% we and what's gain gross about margin there. The as potential should are

Eddie Capel

kind the our all those a had organization it's We're a in we results, the our get cetera. activity premature we're As et pipeline, to in know busy, We we of under fantastic activity the but - talk around call. just business and their employees, are be and we're for you working of love goes we've off of get big said that those out going the throwing metrics our associates as when is any won't in I shareholders mean this heck start metrics investors, quarter really we're the extremely transition. belt. quarter the this to us tails modeling I about QX for our would through to this call it of our another

Matt Pfau

anyways. When in recognition it later actually talk versus revenue we it recognition we license more the And to there recognition relative then when the but the of that ratable subscription too that? there think obviously start ask about but is that of delayed I'll think is you'll you maybe about should the how about dealer deals figure license terms

Eddie Capel

not It is delayed. more

Matt Pfau

just want you're for in made you how ones investments over XXXX. solutions were the of you've XXXX. making so know making And to for dig Active had well I XXXX to process XXXX Omni some the talked ones the incremental for then about does that around the as the compared are into in

Dennis Story

a $X did and essentially not consume million self-funded put bogie we it We there internally. we it, out

So some the seed into cloud we drive side awareness fourth to quarter in of around investment our the going marketing market the house got solutions.

million relative the not on wise that the of is So we about be established $XX strategic in XXXX. we'll in X probably Incremental initial to million guidance $XX top investment. the incremental XXXX,

Matt Pfau

goal between Omni the cross-selling grouped various from last that And the by are products. deals I health or I implementation one just then you've removing that some that Active Omni Active, into to the encourager one Omni of double product or of products been solutions think amongst me, selling was guess implementations

more interested were kind in be deals have they pipeline you've were sold you those have applications seeing when in in would the either may products you separate or be than So been that all deal customers that of selling? it

Eddie Capel

buying customers that built the incremental they the products of solutions the There into buy suite. Yes, of implementation that's Matt. vision clearly Omni and is customers are into case definitely the into particularly the roadmap Active prospects and the and suite, now of

for sure. So certainly very that encouraged by

Operator

next [Operator Instructions] comes Mark Your question Schappel Benchmark. with from

open. Your line is

Mark Schappel

us in me, one clouds supply excuse categories embrace remarks first question you your the you been chain prepared the you buying software is of the for the mind if down under. chain that in wondering noting the I the has cloud, slower are Eddie that can you're of execution buyers' however Anyways to to models. space preferred what space. the really becoming supply some was respect just walk the changes through with seeing

Eddie Capel

it's loyalties still a as omni-channel bit is the and of, of solutions Yes, wholesalers mean and lot and WMS being the wholesalers innovation in economic of a the to the of Obviously is to be the able of a volume market, mention minds a going you attractive center, spend that A, to more - so space. much to logistics chain ramp would to kind you're the attractive be volume front a of well distribution marketplace able more the commerce for expectations much also so you the not quickly of retailers is the is over be the building drive to to supply-chain requirements, capture particular seeing manufacturers' and perpetual the particularly to that be really When with seeing WMS And Mark, the direct is or before, side innovation. me direct in I consumer the ability bifurcation way play forth, think in set to need the by as traditional to specific phrase type, that speedy and it them be need the are then what course the the pure we're consumer go distribution driven to nature center for seen there very able going an When the respond consistent you're into remiss omni-channel than entering the, center, able the quickly on-prem but direct by guys it's surely is the what building I is ability ramp is, today need. very little model of we've time manufacturers economics supply retailers, and you well. are seeing pretty online drive building to to be that that to clear tending the seeing minds. ever consumer, that be consumer, know the the kind you're hearts, and to need able we're as secondly, we're of in distribution center area we're of to of and I it, very

Dennis Story

in in too. a it's that over call on Manhattan the all Eddie that new with little subtlety deals that on were head bit like we I - the signed Active but customers everyone's a the quarter. flew probably Eddie piggyback Mark, mentioned Omni script to the

when on had, In win released went customers launched to So scored from the XXXX of when we our WMS platform January remember if XX%. on scenario rates XX% you that We in XX%, new without north some had this we installs roughly and net new we we launched a already the any born that implemented. logos had brand-new number technology cloud of in existing to. nice platform compare

Mark Schappel

expect so implementations services. to these follow-up And for the require Active with to less do products re-architected question. imitation respect Eddie then one you Solutions,

Eddie Capel

architecture, it goals answer the of the cost time-to-market, is yes, greater and value market is improve of Mark, the our and to And that internal there. is our speed two speed the implementation back deliver to One to is continue customer. ourselves that this set technical with secondly so ownership there total to improves forth. so factors Well some aggressive simple we efficiency then

is, fronts. on of answer a yes, simple the couple So

Operator

I'll There presenters. are at further the time. call turn questions back to no the this

Eddie Capel

thank your very joining Okay, certainly attention and specifics more support appreciate the to Well about on good giving continued in Associates you We to you we'll Manhattan for around XX XXXX the target. us updating look Jesse. cloud of your and you thank everybody and our transition you days forward and this afternoon.

afternoon. again good thank So you and

Operator

conference This concludes today's call.

disconnect. now You may

Manhattan Associates (MANH) 24 Oct 172017 Q3 Earnings call transcript