MANH - Earnings call transcript Q2 2020 | Manhattan Associates, Inc.

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Operator

Good afternoon. My name is Jason, and I'll be your conference facilitator today. At this time, I would like to welcome everyone to the Manhattan Associates Q2 2020 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. reminder, July gentlemen, XX, a being call As today, recorded XXXX. Instructions] ladies this and is [Operator I would of now Dennis Story, like to introduce and Humphries, Eddie Matt Senior Director Investor CFO; Relations. Capel, CEO; Mr. begin your Humphries, you call. may

Matt Humphries

Thanks, Jason to second then our XXXX quarter our turn review everyone. the call. will to language Manhattan CEO. Eddie I Capel, Associates' earnings cautionary good and afternoon, Welcome and call over

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

You report, and that and risk the are you important factors on to year our forward-looking from factor those refer cause our these SEC for subsequent could from projections, the discussion statements involve our actual not XX-K guarantees performance in risks for in particular are provide materially We particularly with fiscal from I cautioned that results to materially and the of that differ contained could Form of differ projections. COVID-XX statements. uncertainties, in that future impact that to results may well regarding our report reports cause Form our XX-Qs. our differ note projections the risk on performance, actual updates we Manhattan as in the XXXX uncertainty forward-looking materially results files actual as annual in pandemic factor any Associates

We are to under statements. obligation these no update

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

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

the over to I will call now Now, turn Eddie.

Eddie Capel

couple wanted we high-level as performed we how a everyone, year. our back step you I afternoon, before discuss to And the the for XXXX comments. good we a outlook go and just results and in us about moment the into thank Well, our business the take for of second a of and Matt. balance quarter review quarter, joining make for Thanks, detail

committed Now so on solutions. every of been modern, need consumers that on more us live, ever Associates, to day deliver this they deliver serving market on Their global promises the their that they And than our very can our growing to we're there's chain more execute that the at at we has critical every promises. world. adaptable is this apparent single for this during need not intersection to Manhattan deliver depend on positioned And never each criticality need our day well on pandemic. changing And a customers that the that and omnichannel Frankly, customers. lost and depend supply and of to and it's inventory and goods them than services we're believe us. customers,

So results. quarter a effects reported now global visible economy. the to back the that solid Manhattan is despite discussion across COVID-XX of having our the

of total full But are revenue, there Specifically, of the services, higher our omnichannel points $X.XX, raising unclear. and the in the for world, about And last our our million combined And our for encouraging. EPS Cloud, guidance license earnings signs adjusted we've the leverage, That's per near-term be XXX and products with and we're views adjusted pace chain year of somewhat economic of recovery to as delivering and such, than both seem we to that is total reflect revenue margin demand better-than-expected and timing year. same services supply earnings reported balance our expense continued which of XX.X%. exceeded solid adjusted of seen and year. diluted revenue period basis drove expectations. operating management, disciplined $XXX an share while

profitable on to innovation remains. business the while to R&D to backdrop. And to focusing with in capital dedication this in million capitalize our invest on this nearly in And allocation to continue expect trends. evolving diligent we macro furthermore, the long-term year, even growth market execution we Now and drive order invest sustainable $XX

at set ever. our of healthy are Now now pipeline, the our confidence opportunities, trending we see we that a giving reinforcing pipeline more current our cloud in looking products pretty with mission-critical belief favorably, that us needed global than offer

set a to seeing non-retail And as we're while third-party pipeline interest the and automotive to first verticals Specifically, that's additionally, such the over finally, manufacturing opportunities, pipeline XX% sciences, wholesale. globally. is life compared of And our any of automotive, continue comprised of be with of broader as from of experienced all ago. diverse in is some cloud relative half. and XX% in the somewhat and favorably we year opportunities logistics, logos haven’t closing delays opportunities trending XX% notable and then our And new to by way pipeline our our our And end second-half pipeline we've at seen a more opportunities, net deal quarter about grows represented cancellations.

current to to and to underscores with go-lives work remotely. build turning the travel but dynamic challenging, of quality of the margin-neutral, the continue services in is and quarter our XXX services customers, headwind difficult to contribute face-to-face a of obvious second overall remotely face-to-face travel our remain environment. engagement team restriction while of delivering does in business. nearly revenue, go-lives, our By system Now to versus we revenue the is really down reflecting And lack represents the conducted solid services to time. which In we variety ability reasons. last this professional complex is active, the execution work growth. way, deliver ability while And to project about and adapt year-over-year our high and having the X% significantly deliver system limited providing a engagements for executing Despite services real-time support this year

all with net of in demand customers. market grocery. head-to-head XX% here cloud physical short our With the the and able as in key for offer these collectively ways our specific solutions halfway on capabilities point, buy and than we in cloud a representing our cloud omni online, pickup-in-store, distribution cloud to beverage orders have the these many And some the and XX% advancements in our so become stores minute, rates competitive And activities. during like QX, within these that a were selling really, recent goods, revenue to the in creative of shift and updates active significant flexible our really win time. portfolio. robust and such a at transition, license marketing and of more I brands channels XX%-plus solutions of brands for curbside have demand. store on to we're standup product across food, pivot experiencing really and ability are we verticals And our retail competition, inventory of And for fulfill you Now of we we to, about government a fulfillment. would retail give ever. these drove than is amount that critical for sales enabler about Then at great quarter demand bit was more our X-year new the just our closed and and strong really very consumer-facing pickup, ability and and verticals. solutions were license a against our And across front, consumer remain verticals, saw deals within suite,

start the announcements company's let's So our in one history. maybe with of significant most

inside micro step industry. as All our secret advantage as while capabilities add During see Momentum with the cloud-native, on in next-generation agility we supply for offering believe deliver imperative functionality ground our customers single we and this we Manhattan the application. Omni. our full execution versionless innovation new Active within technology well to taking made May, And Manhattan innovation And top ability extensibility chain while all the up still and our from continue of management, of is unveiled Manhattan its in using of really base conference single With our first-of-its-kind Manhattan Warehouse this a be is execution a we underlying possible chain which re-architected Active debut Manhattan the change online able Active warehouse extremely winning floor that of customer-driven the we makes of quarter. the a a a were speed new Active application. user deliver services-based architecture extensibility while quarter in launched customers as is management, Connect, platform. combination our of application Management, every landscape. satisfied as the And Active feature we to in WM to every warehouse solution their supply when WM, sauce core and XXXX that capability that

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analytical set distribution applications algorithm with operational user whole optimization in a inside for And interact finally, associates Manhattan new enhancements WM another brand-new for center, function a the Control we the engagement, next Now call Active feature mobile including addition WM, delivers customer configurable groundbreaking managers interfaces built to next-generation of suite next-generation associates distribution right technology, of we've employee Manhattan center on which a of focused a of screens call Unified throughout got number our capabilities its that the a and in-line day. we to level. Active grade taking to and one into simply way the

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supply transportation of an modeling exciting major of that solution. our solution dispatch and shipped all-new First, with included staying management a suite, significant update an update our we our capability transportation chain recently new our to version

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QX, those the inventory fulfillment, our channel on of pickup curbside QX, and manage delivery application their also even so is a off support an but frankly, the As inventory offering Manhattan its tenfold a pace who architecture, Manhattan a we is had really into we in a using release And place the really Active within available built regulations resides we've inventory our its in really customers. purpose assortment. the And two the architecture, talked Allocation process. I innovating for pickup space. quarter. seeing And of to customers process and about and Manhattan additionally manage new store at Active and launched orders customers able in make Manhattan features. customers Omni far with Manhattan fulfillment our omni the must pickup Active increases And the having not for fast all Active experiencing light research our some bit pickup Omni have into BOPUS to first this order volumes in curbside digital side, that on we for in Momentum static of volume. the mentioned Active with a buy associated Allocation industrial of completely retail completely the best-in-class pickup-in-store little And This replenishment major Because is our record year. methods are we'll it retailers. we is of plan for were changer have we time. to both Manhattan Allocation online, product with customers fashion while persist one a charts, changing technology record and after forecasting It's their Connect and Because self-service last launches suite, And apparel and Manhattan allocation for called it consumer Omni different we're design. optimization generally in Channel Active make pandemic. in Active fashion later for to curbside adapt indicates the customers The pandemic. least are really which who methods strength fulfillment product application sophisticated the differentiating applications core modules. built accelerated the really of time right for before. soft And we a really available to game the this is think lines relatively likely

portfolio. customers we're these product was agree. you'll that new capabilities. big pretty to It of all work our hopefully light quarter So the of to excited with for up a And evolution

business provide discuss and you going an on Dennis So prepared performance, covers XXXX guidance, few summary. my that update to a with broader brief financial full remarks I'll is year close update. and with a our And

So Dennis?

Dennis Story

Thanks, Eddie.

revenue solely to related for COVID-XX million, second impacts. down quarter, was So $XXX.X XX% prior up the over year, total

million is Our between $X.XX EPS. total revenue GAAP and of stock-based the the third per earnings difference share to adjusted accounting $X.XX. for compensation $XXX million. was a Adjusted for $XXX share was with estimate range GAAP per earnings quarter

for million above within Our revenue all solutions quarter to year-over-year cloud. new to customers. in licensed with from is the down $X quarter earnings $X.XX target two, adjusted range shift our deals signed share the for $X.X as expectations continues License plus demand We third our of million XX% in per but the $X.XX quarter was roughly coming deals $X.XX. a of

we third million quarter, For $X $X between million the expect in revenue. to license

we $XX $XX For license million now full will to estimate revenue be the year, million. approximately

a XXX% a uncertainty the pandemic Of by cloud quarter two approximately Warehouse global Tier bookings continued momentum No Manhattan and to estimates. verticals revenue of net X% sequentially, Management into our from came XX% call, customers existing were both of signed in Cloud in out to our release our deals up we WMS record install or our set solutions the customers. course, continue the from question to about we in either net in our cloud a pointed million, quarter, year-over-year in the new one affect of as demand diverse new we was customers new in Over driven our to COVID-XX opportunities Of serve. WMS could of our $XX.X earlier within product against with base and for all customer sales continues build. sell the existing our across performance Active base. customer note, XX% deals the

FEMA to will cloud XX% our for approximately revenue a absorbing in of range estimate very which $XX.X revenue XX% a pandemic full be For $XXX $XX with our At and We midpoint. million to our of we full midpoint license be is year, up deal representing growth estimate QX, XXXX. million, staring cloud year. will we $XXX by about license total revenue we XX% year, up software $XX Ex-FEMA, last at our be million, versus million mix year XX% while And estimate $XX the revenue rate million, against million. the cloud signed XX% software to and to down million the represents the cloud year-over-year a a about the XX%. license revenue XX% growth the comp in record $XXX.X about driven software is for total decline software year-over-year will strong

bookings be to our we obligation the is discussed, unearned of leading have value the or Turning RPO for referred or required and represents otherwise cloud remaining obligations bookings. proxy contractual performed to as to performance performance bookings, revenue as

over Our sequentially. prior the quarter and totaled for RPO $XXX XX% up million, XX% year

continue estimate $XXX end range will million We RPO fall year to a million. our that within $XXX to of

of are on this in revenue our longer subscription value slightly point deal a customers while distribution last than Further, smaller growth. and of closed quarter, contracts represents cloud, the year. And model, is less time. relative one this requiring For amount. with sizes subscription on reported depend wrap does number the unearned implementation and bookings any excluded of continue the value revenue cycles cloud large from have can year our non-cancelable is Contracts a term be sequential recognized year-over-year disclosed one value over to under deals non-cancelable as we and some performance may associated large with revenue license positive one Manhattan, footprints greater impact which or

prospects, decision of by light appropriate We and clients retailers slow some also making retain around in particularly COVID-XX. caution

So to X% maintenance, revenue the prior $XX.X the quarter totaled million, for moving versus on down year.

rates at than Our strong XX% customer remain plus. greater retention

For estimate million And approximately $XX.X the year we third for quarter, for is maintenance revenue will million. be to QX $XX our full million. estimate our XXXX, $XXX

revenue down I'd about services, consulting excluding totaled out down that $XX.X to solely Again, billed like Turning point COVID. XX% XX% expected travel, as to by the and driven year-over-year for million, quarter year-over-year. we're

We expect our by XXXX revenue of peak versus XXXX, our governed services a revenue range expected pace full down is and revenue activity to services $XX about due estimate travel to And retail QX seasonal in of million season. and degree near will services We million. decline to billed million down midpoint will to be $XXX.X XX% normalization quarter the will year $XXX revenue fourth trends be our of excluding $XXX $XX At for million. by includes of million, the be impacted services approximately be will services COVID-XX. term continue the economic XX%

by operating scale. driven cloud Our begins leverage consolidated to quarter subscription for maintenance the margin as and revenue XX.X% was our services

points XXXX. approximately quarter Our basis estimate higher XXX than XX.X%, is third approximately

estimate is approximately full Our XX.X%. year

adjusted margin operating adjusted QX and $XX.X income XX.X%. Moving an operating with totaled of to million operating income margin,

For adjusted nice to estimate the to margin XX% third be quarter, range within tight we range operating a our XX.X%, there. of

And income quarter tax full what? Our QX approximately XX%. will Our was be third and rate adjusted tax effective XX% as guess rate year well.

as suspended effective capital XXXX our repurchase program discussed. April share structure, X, Regarding we our previously

at And repurchase this an to our authority $XX million. remains capital Our strategy. long-term program continues of allocation be part important

continue of time program. a the our for buyback to will resumption evaluate We appropriate

For approximately year, will shares estimate full we outstanding the and be third our $XX.X million. diluted quarter

Turning zero cash quarter with closed and $XXX debt. investments the We of to cash. and million

million, and the $XXX totaled for CapEx up expenditures be revenue maintenance million. flow year operations $X million Our from $X We capital balance cash quarter to $XX current totaled XX% billings. million. estimate totaled on sequentially QX range to deferred $X.X in cloud the full million.

I'll Now, our annual turn to updated guidance.

model year. to continue investment scenarios and the review the provide estimate performance community to multiple remainder the best financial with of our of in order for We

estimates these While are from of we've modeled. our there rigorously and certain out that factors have results external are that are vetted, may different control been produce what

full total to is our million guidance, range revenue expected for $XXX million. Specifically to annual year be $XXX between now

Our achieve total target is objective in to revenue. $XXX million

full share to is Our earnings range per adjusted a be to diluted $X.XX expected per $X.XX. a – between year share

to Our compared previous target $X.XX. midpoint $X.XX a of our is guidance a objective

full is within full a adjusted GAAP midpoint operating a range year expected to to And XX.X% $X.XX margin expected Our year to of our be range earnings fall $X.XX. XX.X%. per a with to diluted a a share is $X.XX of

So update. my that call over I'll to covers Eddie. the turn back financial

Eddie Capel

There's our today tastes close and a behaviors. and from recognize a and a means And continue world remain opportunities chain we're workforce. digital fast modern, through growth to continued is supply these we positioned to leading cultural stakeholders. path goal investing never advancing that more flexible been of trends Thank crucial is experienced believe in of adapt space, on this customers for diverging on our product solutions. commitments, in these customers omni dynamic. today's leader the consumer never to our At to in settle. through our this and by a on Well, macro we and commerce equipped and progress recognize as delivering we capitalize talented to be challenging out we you, that And before. focused resilient Even our evolving in succeed well win changing no on as difficult we Dennis. time call, challenges investing that Okay. to ensuring Manhattan, long-term adaptive innovation have sustainable and paradigm. set the We and as of to we to see like shortage market our channel future commerce this. this enable the succeed we We've customers see to innovation in global portfolio times, norms To are

position, holds all And are at bit as culture admittedly, the we've of better emerge about we at and that's Although for no why just people, organization. Manhattan see consistently reason this Associates. different us here and and is heart and to soul different, is the this at one time a any our so I'm and at innovation of excited why what stronger future

any ready I'm now to questions. Jason, So take

Operator

Excellent. Your of line [Operator Instructions] first Terry question from Robinson. comes SunTrust from Tillman the

is open. line Your

Terry Tillman

of gentlemen. out nice or WMS of Eddie. past? Good have of you products see it they WMS calling the rollout then And site afternoon, couple enterprise question, of rate is and I'll the do had WMS follow-ups? two part curious other early wins, one then product It's a Hey a are Tier to wins. about the What I'm kind and going the isolated on native follow-up versus Yes. the wide how traction one two. with adoption the with this cloud Tier I But the in the cloud more of or see kind cloud cloud of

Eddie Capel

Yes.

pipeline strong, kind of customers with global about But industry definitely are both early, across engagement one both adoption, feels announced prospects lot With deals the of and mid there it high. as enthusiasm, board enthusiasm are from solution. a we've seems very would it's for in is great still of They rollout, them behind And deals, So just really momentum. prospects, I adoption customers, and course, it's the strong, given that is pretty say May. regard pretty very and the but forth excited substantial for mentioned, to well, global nice customers. the upside analysts, of we so sure. with Tier

prospects the good. are pretty So

Terry Tillman

to good That’s hear. Two follow-ups.

we one new customers. end non-retail see models lot do The What on direct-to-consumers first strength. a their manufacturers to really and from the is wholesalers at business starting

assuming But you building TAM supply chain they're and that weren't seeing are forward. side. that growing non-retail has big see the serving? what they kind in segments implications websites, that So really side you around sell. on I'm Do you a of fulfillment heretofore going

Eddie Capel

two Well, so there's pieces.

guys of are the to You've who about expected made would to There the starting maybe direct-to-consumer. point are seen going have not branded haven't kind go sort are we retailers. before that also as maybe industries that direct-to-consumer and of

network Just example. to the captive so parts, forth. one for example, Automotive and spare typically, dealer

secondary see like starting markets a opportunity great You're one. those for look is us, direct-to-consumer, number which to

the WM, basis, solutions, delivering not where mind one we in past. that the the sort we that some opportunity As certainly cloud new for on to we're native, release our innovation interest. strongest of CPE may a been is early we do in seeing quarterly see have verticals we're particularly brings penetrating that good

So opening certainly. TAM, additional up some

Terry Tillman

Yes.

answers. Just my far about last notes all Is maybe side. under for the were looking my thought or on in a I XXX so that services Thanks XXX I go-lives. had question. you the little for Eddie

Dennis XXX. said I think

it beat So expectations. seems you like

you services, to forward more Thank doing it guess just people moving thought? the Are you be driving You are did than services that I there than ahead pandemic? projects given thought? you in That's more virtually for the expectations, year. the just – you. Or efficient it me. for of what's raise are

Eddie Capel

on. forward. little no up great we And as a firmed bit were Look, all – would things I professionally, projects pan Terry. Yes. thought, more went we quarter I us. firmed still exactly coming frankly, about of look, honestly, up. that, deal the out. few going quarter up unsure how think And we're question mean, things as a but There's for little us, and they Yes. into uncertainty to They personally firmed a And moving the than there's of unsure. a

But that. about pleased be And the we're your the pleased team with unusual pretty So execute thanks very here of questions. able ability circumstances. for at to to

Terry Tillman

you. Thank

Operator

line Your next William the from Matt Charles from question Blair. comes of

open. is line Your

Matt Charles

their off Hey the guys. to follow-up Thanks start interest Active you're on looking move WM a product towards M existing – on-premise deployment is seeing for taking in can customers And maybe product. customers? first are I new with just Or there cloud more wanted talk the is the one? my weighted pipeline, about that WM to Active you that it questions. to

Eddie Capel

Yes, that's that. an interesting about around XX-XX, sort middle, is and some commentary of question, down I Matt. customers the you existing logos. just give new smack to in mean other It

about surprising the is maybe. it down Just It's smack middle, XX-XX.

So we're that. very by encouraged

Matt Charles

monetize Got sort it. in XXx previously retailer either activities And to the that from fulfillment you they your you the customers a customers, store work of of other are doing? are Omni perspective? those were when doing or just when how you us, talked some Active from contracts able about higher you revenue volumes can see that remind Or do those

Eddie Capel

for Yes. volumes. of there. There's definitely us our Most annual contracts upside are

impact short-term year. volume, But really of pickup in there sure. a you when for immediate a end of the positive So reconciled kind gets for see the us. no It at certainly, is

Matt Charles

me, pass Got one And I'll for it. and last on. it

Eddie Capel

Yes.

Matt Charles

the that we're out, there's few talked changes play of you COVID-XX. a long-term tell few but some obvious. there's about seeing So tough by seem And trends that a of everything obviously, sort to will

When the is your COVID-XX multipurpose. that, driven or some think by map, others you your these long-term headwinds tailwinds and changes? long aligns think e-commerce probably footprint shift stores than do or a you that positioning are of to how these much were with road one are these about faster of some product seeing previously changes to that So Manhattan? term, and I guess, So smaller physical we

Eddie Capel

think Well, headline it's I for so is simple positive very us. the answer

of – bricks-and-mortar that that been the put and simply always and ours. global about of digital. for to It's the numbers to just the on buy shift we think remain of have so they're decade. dynamics really do the strength there's online, us. of so obviously, pullback helpful pickup-in-store when than are the think for of very in of we front acceleration is really going a open. talk to end, omnichannel there's I people impact of shift is from very, point, your customers, servicing today's Now retail because really some fully the We've predicted of initiatives, forth, convenience aside, a bricks-and-mortar realized COVID direct-to-consumer get be on But this mean some of if course, a just We've particularly, now And macro these and to more I into continued curbside going there. where situation that kind I back clearly, forth.

sweet the going. we spot where we've where are in right been of operating So and

Matt Charles

Yes. Great. guys. questions taking for my Thanks

Eddie Capel

Pleasure Matt. Thank you.

Operator

from Your Vruwink next the Joe from question of comes line Baird.

open. is line Your

Joe Vruwink

Hi, just have they've the to a to about interest had afternoon, maybe WM it been started from your recently, from I Active WMS the space wanted Eddie, is way offering, see they SMB, interest and cloud to talked the more enterprise came the new has in peers smaller the that interest from customers, originally segment. more everyone. of logos. the seeing thinking loud, Good And go back, great. that have out some

segment. enterprise kind gold in the of You're the standard

the just the the Or audience Manhattan cloud is the maybe get and economics, your been of broadening in organization hasn't past, some so starting in target your but you're difference maybe to logos similar sense? And to traditional of given in of the virtues of makes it and suddenly of are this new front customers? actually still type that a

Eddie Capel

Joe. Yes. Good question,

consider certainly early So one that with would we has would the customers. say been interest Tier I what

shift, I there's of change. think been that a little bit but sort a of

there candidly data which solutions and are solutions the trying the so cloud, for is while in cloud not that that really in the to of Some center a are you're hosted great, business if out be been on-premise have forth.

that move to able of customers. to a kind native ability of of can the deliver that's You when to X be lower-tier Tier cloud. world. XX innovation the yourself been to have around attractive application, true cloud to customers every first-class world-class And becomes the real off days, kind sure you appealing the But build

just it cloud a so now customers embracing a and pop being don't and think cloud. the we've versus I'll I the IT it I So simple hey, that's of organization really big in sort lift shift, Tier difference have seen why truly up X WM

would So that one. of number answer be sort

is now true terms all ours. that Tier ability one. is geographic broader broader aligned but something reach, that into able is to largely the interest have with our certainly objective In an well a being to tiers, early It's with of strategy, a of reach be a cloud

Joe Vruwink

north year? Okay, a of lot other cycle. but migration every upgrade out Manhattan existing from five there, there upgrade of a your about Typically, do maybe this of of customers what's base, coming WMS of is kind great. the all your installed think the Is thinking within way might interest And you XX% been an about is not a there's normal about of thinking X,XXX I like? thinking of you timeline conceptualize would Just – years has how existing probably, installed point, the then at looks base base? kind where the have half

Eddie Capel

to that fair natural use are a it's of expression. to think, upgrade to I onto, latch able to mean, we're those look that I at it. Yes. be kind cycles going There

at is required, there can folks And ROI – ready. some that for particular pretty their can it get be delivers is own we're we own technology opportunity those them with some a cases. on see their discussions migrate have pace. do and will certainly brand-new frankly, to tail going accelerate we're as customers, with and they pace transitions, faster, We're pace. do there them for that innovation clearly, they're real great that always because on when those think going they to to I There's going do help it the their to hands business see their – long they at the but They own get we'll acceleration news no migration. the at can upgrade

Joe Vruwink

kind one of indicative one worth far looks area? the quick broadly then think, more that particular back me. $X the been it And Is you I on of any of different Or so about sets the brought, R&D like talking into to forecast. million is product XXXX just you've It call? for dedicated

Eddie Capel

moves Joe. portfolio. product, no focus life across board, specific bit so R&D from upon It's across investment the to that the in. of cycle really, but always Yes, bringing – the there's forth, the product a across There's back and little based product

Joe Vruwink

you. Thank good. Very Okay.

Eddie Capel

you, Thank Joe. Terrific.

Operator

of next Your question the James. Raymond from comes line Brian from Peterson

open. Your line is

Brian Peterson

everyone. Thanks

and Active the Eddie, higher the year. I move trying But pretty frankly seeing versus also impressive I'll but WM, for That's with just quarter. think in also be the wins to X your expected. have gauge of the there faster first start results are kind tier license So I'm I expectations, two number the would than

trying So on saw where understand I'm maybe upside side? on versus expectations this your the WMS the just you quarter the to

Eddie Capel

essentially six the Yes. six wins adopter weeks quarter. the had of in we What the release date. live and were went so We in, one forth tier period, early balance and week are X two that pre-release we – from

big So license darn by little anticipated, orders smaller pretty an the say. it than excited We're activity stronger. about Frankly, I of wasn't continues or about little we're was we nice activity that a quarter. to a a solid deal sure. stronger aggregation one us that And just The got brought pretty magnitude, be but not pleased of to deals license that. anything for

Brian Peterson

or have Understood, Omni we're are a and – a think and omnichannel us COVID these omnichannel. these while, that for stakes. lot talking in of that that about and systems to pivoting a we lot Active don't this think providers offer of the obviously you of maybe table But We've things or various a lot place. with retailers I been seeing

or if how inning still Like innings? So where – early we Are what are would we innings the about stand help you now, that? analogy, versus in, late I'm terms we this adoption? we us in omnichannel use curious of think baseball

Eddie Capel

batting We're there's sure. Yes, I of past think runway. practice, plenty for that's still

would there's I second a third say we're I in inning. probably really – think here. the do runway think or go to I of lot

we've are dislocation We transformation for going seeing couple I and of going on years been store – a to now. think

we selling the for ubiquitously omnichannel think strategies, yet need that drive more So is are pandemic, see which to to omnichannel those accelerate going I this through channels. going for strategy, across the need

opportunity the And last so investments decade plus. the over the about excited given made we've we're

Brian Peterson

Understood. Thanks, Eddie.

Eddie Capel

Yes. Thank you. Brian. See you,

Operator

Your Securities. of from question Yun Rosenblatt comes line Kim from next the

open. is line Your

Yun Kim

you. Hey, of active installed base, your Active Active WM faster that Eddie, Thank omni instilled you regard on-prem a is your migration Or do in to that within not of really WM factor? adoption right. expect to among base? WMS All a

Eddie Capel

I technology see we It the don't running of for it's and mean, exact much is them. I customers the a sort makes Active Frankly, will think platform. forth. already adopt factor omni so It active Yun WM. underpinnings same frankly. sense they're of think, I

So familiarity sense platform. common a of combination to confidence, there's on and common a consolidate

Manhattan highly So I that. we think is we'll that in platform is a proven where WM have on. terms of release of about our see plus year great released What some Active we we technology three are

is So, for now, Active whilst so super running Manhattan on plus three X super and high tier technology been we've years a newer Omni solution, high, it platform this forth. volumes

encouraging seven our we're base So a enthusiasm base And spot has the about weeks in six the base been and think particularly Manhattan talked there. very I in the as in Active announcement. prospect too, our across customer good we've customer for WM but since or the

Yun Kim

any you of since particular product the between new who IPO, COVID? your trend Omni. vertical Omin around focus your driving Active Any the Active retail planning little than in COVID? remains bit growth believe of main business emergence about Any a a Obviously more are particular of the lot that's maybe but driven Omni that’s the terms Omni Active and or seeing were that's as on sometimes you but vertical Active great. RPO kind business WMS, cloud made Active adopting Active your by to that Okay, we the of the Omni such go forget I WMS, solid. changes that market existing because adopt of to pretty product

Eddie Capel

Yes.

would that – were phone, pickup-from-store quick wins, say, not a or buy right. picking quickly. a excuse online, a existing the of had prospects, major frankly, or to That have something those – strategy I think new customers, me, So And be phenomenon if for I seeing those shifts. to bit we – would strategy customers no a up sort it are of right. need we pickup that about a simply – look curbside If I red customers did and little whether or

is So inside a hit since we'll we little retail, are take the initiatives bit bit a high day seeing long, of onset asking faster, is that them – inside of little market smaller, sort for, COVID. and and value of the quick retail, of all that

Yun Kim

need the back better of happened I said, a market update Do I us the your chain here given, your Can due to fundamentals Thank acquisitions quickly forecasting more stepping or capabilities to that has fundamental traditional like grocery target know beef stuff? feel COVID. you especially you traditional even to you side lot how on really strategic – target have markets, – up more COVID. more on just like like your evolved supply there then obviously certain to to maybe out rather kind thoughts may don’t you. target oriented latest since solutions maybe the on And on business of Okay. of manufacturers

Eddie Capel

Yes.

to a is more chain hurdle today. things, that, those mean, going think, Supply perspective. it important, but within going to always know on got out, rate middle than you number we right kinds in but addressable and not increase market, never we're you supply important and and M&A as Number footprint, aging We're this, the solid the not we've we've what our already is always a of in what's pointed as said most transformation been that are the chain fit technology. It’s going I it one. could of strategically interested of So, be maybe more from got. acquisitions to two, buy I total buy

a middle shift, think the lot right mortar from being still opportunity supply into professionally, We've in done. us. bricks would commerce. got to think all significant And we've of the going a strategically in to We've for shift that. of need roadmap personally the our And front forward is I of continued long been work be got digital that. the of strategic resilience the that I kind built contingencies agree we built And and being with the supply chain. traditional chain into and

changing vision – capabilities. that capabilities deliver not it what and the market brand we old leads market innovation so, because is us new capabilities, to – to Now is brand have to new our the repackaged, needs is new

brand platform invest and we've opportunity in continue great and every this the thing every So innovation got, it that days, XX it's new we innovation the it us XX to can Active to about develop deliver new for to brand marketplace. days. deliver we And can is the

great targets, but for new on so, brand innovation. white acquisition summary, And always principally investing in space looking in focused

Yun Kim

that Eddie. much so Thanks Okay, great. for

Eddie Capel

Yes. Yun. pleasure, My Thank you.

Operator

Mark [Operator comes Benchmark. Instructions] Your next from from Schappel of line question the

is open. line Your

Mark Schappel

a and my a seeing good latching game, Most of solution, I are the to job respect just industry? with with WMS, Hi, quarter. any been answered, nice point this any respect customer some… pipeline particular industry the to or for in interest have that Active Eddie questions from couple. – the afternoon, early, on it's that's you in are particular onto know at but that this you seeing

Eddie Capel

pharma, wholesale, really to is Mark sciences, thing from No. really across it widespread. is Actually, life the retail great industry, it's XPL,

as the So, vertical. on way, as by concentration broad across even is hand, is And also the better, be well one would of of course, global interest interest. great, interest but

that bit for us. extra little again created that's of So enthusiasm

Mark Schappel

projects Great. that delaying just were grocers and some to focusing just on and quarter, own managing hear of or Last follow-up they as That's here. just a some noted swamped too they're then your business. were customers you such their good because like distributors

Eddie Capel

Yes.

Mark Schappel

little you this that assume a comment on Could subsided has that just somewhat. bit? I

Eddie Capel

grocers, of well, day Yes, being the of a a number has – you're volumes pretty it's it managing to is so a of so subsided on not and these some – forth comb and they're that They're and And a two, still right. panic have forth anymore. and adapted retailers surprised frankly by number course, sort then day supply one. higher buying basis of little. pet little eased a There but busy, combination

of starting opening refocus, about guys think those those certainly see So and to now, look initiatives strategic again. at we're up some the programs

Mark Schappel

to you. for all Thank That's Great. good me. hear. That's

Eddie Capel

Thank Mark. appreciate I it. you, good. Okay,

Operator

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

Eddie Capel

QX good, you Very you. us Jason, call. thank thank our joining on everybody Well, Okay. for

you everybody updating XX in so. we meantime, We’ll about look speaking stay to appreciate XX forward As in to days. – again, healthy, you. your and always, days support or sure to and And in Associates. Manhattan safe again in make you we'll stay the Thank we'll you that look again about forward please, interest

Operator

That concludes today's conference call.

disconnect. may now You

Manhattan Associates (MANH) 23 Jul 202020 Q2 Earnings call transcript