MANH - Earnings call transcript Q2 2021 | Manhattan Associates, Inc.

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Operator

Good afternoon. My name is Ren, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Manhattan Associates Q2 2021 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 Instructions] ladies this and is [Operator I now would like to introduce Mr. of Head Bauer, Investor Manhattan of Michael Associates. Relations Sir, you may begin.

Michael Bauer

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

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

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

these update obligation statements. are to no We under

additional information comments non-GAAP an investors. certain financial to our to include provide addition, in In measures effort

all SEC reconciled have to related rules. with We measures accordance the measures GAAP non-GAAP in

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

to Now I'll Eddie. turn the over call

Eddie Capel

second full results as thank and year and we everybody discuss afternoon, review for you good updated And joining Mike. outlook. our us quarter our Thanks,

record to expectations. $X.XX, metrics million increasing XXXX results to and for XX% share XX% QX, adjusted and With first all-time QX total these exceeded both and $XXX our earnings So diluted revenue increasing Manhattan per an were Associates. half of

well to sequentially demand extremely cloud in and RPO and XX% translated to year-over-year growing are Furthermore, and of our performance record line teams for busy very as Our $XXX into quarter continues broad strong strengthen continue XXX% and million. resulting execute increasing second leverage. to bookings with global growth earnings solutions, set top revenue also

and visibility improving, once RPO. So accelerating XXXX increasing with guidance, forward our momentum we're revenue again, including

many as mission modern solutions Now, providing we're and cloud on are you are native architected experiences. that solutions of commerce aware, unify are our focused to supply critical chain and that

and and providing technology is scalable, industry leading, are that Our differentiating solutions by and versionless extensible.

businesses. are quickly to positioned Our customers to better adapt and profitably conditions changing scale to are more market able their

On the a of sales Manhattan to industry at pretty manufacturing quarter. our as as front, competitive the they're little and keeps top XX%. commitment verticals, including our in It’s win we bookings rates about food sub durable more a of apparel, vertical in Associates goods. drill diverse, perspective, non-durable remains retail From strong if wholesale XX% drove beverage, rankings. department industrial, innovation well and than stores, And at that the to and

accelerating and see consists strengthen Americas well. we're potential demand. pipeline our Europe XX% of cloud customers unparalleled existing our continues starting solid and somewhat. new About in about Solution of of opportunities our half supply all position, favorable resilient pipeline is across particularly represent our of chain, tailwinds, and are Active infrastructure market to net into pipeline demand with which benefiting grow product strong the to market and inventory a technology Manhattan APAC solutions. second conversion to heading from our addition, all nicely leadership We're scalable adaptable, for global experiencing omnichannel XX% strong, as And suites. pipeline modern, Now and customers driving but demand the

everyone, returned go-lives. this And to And amazingly services XX% XXX compared services segment strong conducted over the market executed with guidance. global into expected, but a growth operational services, we well recruiting globally, QX. talent year quarter, half, expect we have with prior technical team demand the in second talent and the aggressively in period. to our for They which for our in increasing our planning be we're factored our like Now services extremely and as competitive

existing $XX do well But With it's and million on to opportunity space to a solution our long-term chain critical given Solution early Now and commitment and of industry to and the we're to with Manhattan front, annually, commerce drive innovation our Active innovation, in growing uniquely still approaching innovate for large very positioned our within positioned our opportunities supply breadth, R&D journey to quite growth. unify customers, expertise spend mission new so. white penetration said, successfully systems. sustainable we're that

a for of year, solution. we as saw a of in Connect second also the at demand plethora And May as management the this late which our you conference, most a sessions second of made and we product mix Momentum attendance year the last sessions and regarding major Now we on know, well. held conference, annual offered year, transportation straight virtually. our a running, for announcement user registration Like strong live time

get in short Now, before a of Management, the into Manhattan strategies we quick recap order. of Transportation multi-year probably our details product Active

strategically XXXX, product Manhattan needs. back positioned mission our and are to Now future our to in both customers, who lines, modernize our for on ensure we started

OMS, two native capability unification leveraging to solution key Our previously had and TMS solutions, elements, create cloud degree relaunching true strategy platform a our our leading-edge native was that industry-leading and solutions really and as to cloud really like impossible. WMS,

single cloud to Active first unifies management, customer Manhattan or center inventory applications the or install to performing of Active solutions. a additional contact Manhattan Omni customers store engagement, upgrade. Now unparalleled without point-of-sale and and ever offering, an ever fulfillment native into XXXX, experiences in launched these unified omnichannel the allows our customer needing we of suite it Omni, deliver

the together this smartest multimodal We year in at Momentum Supply platform. industry's And a And believe Warehouse supply with the the WMS. our first Manhattan first Manhattan is engine. for Active Now WM, Active Active really XXXX, Active Manhattan and shipped Manhattan optimization industry's announced cloud-native the Tier Chain, Connect, fastest TM Manhattan industry's chain we transportation game customers. Active we Transportation Manhattan Management with execution Active Management, forms unified changer Supply Chain X

unique realize we've along volume, last to come rather had such front And a couple advent the challenges WMS with of the this and we to the year. it and of solve we just chains. in supply to unified but that problem Unfortunately, And complexity was the For this the May through seat came integrating row decades, with high digital transportation cloud-native not opportunity way launched solution. opportunities build a a offering. see TMS unified microservices the presented better in us the and integration, distribution way, to that truly and of architecture high

Solution believe holistic allows new microservices. it us application. execution, problems, unification customers we chain break chain delivers for catalog of allows common WMS a platform And in all, them most it customers problems that. set organizational customers a down are alongside larger that using our solving a importantly our the solve to to and also entirely obvious perhaps TMS supply creatively and than extend things, their And base But our some to to our innovate supply benefits brand a of much simplified and of single integration brings us. that and inventory problems benefits to impact approach customer than actually directly distribution to allows technology and supply solve the Unification now between picture, opportunities like effectively service loyalty. and actions experiences unified for dramatically chain flow think deliveries, user all platform their silos and more solution outcomes customer that are of transportation, about because customer ever, because professionals a optimizing entire associates

cloud-native reports, of WM. a diversification industries exceeded a from Manhattan expectations and logos, conversions a WMS. and benefit for with like the fully that Active was and year early new show with market and continue it significant our of innovations does and Supply it's nice engaged and Market Manhattan to mix are engagement streaming teams kind WM Active a comprises geographies customer order the really Transportation Warehouse on-premise newly X appear and of Manhattan great Active subscriptions quarter's associates, Active warehouse customers And In capability new there Manhattan from combined a WMS existing that are first frankly, Active response into Tier employee this seeing for Chain WMS. grade for In Manhattan for first it's directly Manhattan net significant mobile product a summer experience our WM built So a has nice hindsight, Management. been Management go-lives. Active busy demand WM of delivery

their growing Omni. Active their Manhattan their change commerce just And application. just continue to close the some to innovations own up increasing push omnichannel a I'll signings you capabilities platform, the also pretty you all problems of product about OMS, advantage self-service for tell of they're inventory on and or quarter, frequency out to order future And we a to solve Manhattan updated allow not directly also our pick And good Last a of well-known this exclusive the are the Active with my year will Omni we're with customer's order at large projects their exchanges, to Now number with to center create major in we own this our bit of little headless devices. few management mobile promising. they'll Active returns, the for on pipeline an implement applications. using quarter, interactive that point-of-sale the of customers like We activate retailers management. core Manhattan digital the today nice create and I on dynamic boundaries Manhattan industry. updates to for I the our remarks or In windows kicked of architectures global only microservices own seeing what order that they core off take

an my a remarks to concludes summary update on move outlook. going to And update. with prepared financial that our close you business I'll before and brief performance our is then we with brief Dennis Q&A. Now provide

So Dennis?

Dennis Story

QX nearly half and results metric And as Eddie and cash Thanks, we major sheet put up were balance flow, record the solid profitability, record Eddie. every mentioned, for numbers, category, quarter. all first growth, results and

highlights, And performance no these summary includes are of for QX earnings adjustments to results, total top was share. financial bottom. outstanding There earnings and of per quality which revenue, guidance execution. a one-time Our just profit operating our great here's in

on adjusted GAAP guidance. can unless stated, refer for today's to release also and are You otherwise growth earnings our basis. rates a year-over-year Also

was So up was million revenue total $XXX up $XXX XX%. or million

$XXX to revenue notable our total million. raising Our strength revenue and to across $XXX $XXX Like of QX, in we million second previous items. first broadened strong from we Based on guidance cloud. all million are range to line half million outperformance our again outlook, $XXX was experienced half our

So our total growth million new revenue, targeting of the range $XXX to $XXX $XXX XX% at million. million on is midpoint

Our be the revenue the expect transition X% our cloud underlying from $XXX growth targeted total $XXX removes at the QX, growth, at revenue excluding to midpoint. or XX% maintenance, total And we million of and license for revenue is compression million to which midpoint.

$X.XX and EPS, EPS adjusted up For EPS $X.XX. up or GAAP XX% was was $X.XX was

a full from guidance we adjusted For are range XX% $X.XX. our year up of midpoint midpoint $X EPS, to with raising of previous to $X.XX, $X.XX

a $X.XX For of earnings midpoint range guidance our XX% of previous share, $X.XX from is up and our with GAAP that's a to $X.XX midpoint per $X.XX.

adjusted QX, be to expect $X.XX to For $X.XX. we EPS

was lines. Moving revenue $XX XX%. up to million Cloud revenue

year are quarter $XXX XX% and XX% future full $XXX and we second $XXX $XXX up record estimate of million to QX, continues up revenue growth midpoint. was RPO continuing million, to $XX.X cloud For raising QX million positively, to XXX% sequentially. with a bookings raising strengthen. that to our visibility to the cloud we're into $XXX of compound million year-over-year previous totaling expect With to with our million RPO revenue equating million subscription at XXXX roughly revenue

large based with As revenue revenue are intend quarter, bookings and in strong RPO $XXX mentioned our our or lumpy, said, the at update will in maintenance gas cycle mix annual and raising $XX call as we deals was collections. up million forward-looking can X% we QX, primarily sales our Licensed $X.X number customers on and quarter-to-quarter. That million to to of an QX license the the guidepost value from up product be basis on as $XXX – added timing, performance, relative for guide we our million. our was of on quarter XXXX RPO existing $XXX million to solid base million and revenue sorry million estimate users was I'm $XXX on year-to-date to and

to conversions and license half second on which our cloud, company, and decline expect future to revenue customers, we maintenance subscription discussed, previously revenue growth. our is As customer for positive RPO

$X QX. million to We to in and $X.X million decline license in QX expect about

targeting roughly in QX. revenue in maintenance and QX we million For million are $XX.X $XX

XXXX, XX% For is license cloud X%. perspective, on down down full revenue year demand and maintenance

Our for a XXXX forecast down demand the is outstripping in longer the about maintain second half No Maintenance cycle. year. down and for full maintenance licensed conversion cloud down customer the license. attrition XXXX, customers X% XX% has typically have full about year be as will will cloud support question, through tail also XX%

growth. Moving to was cloud fueling our our services up and with Services revenue. million revenue $XX revenue XX% momentum services

delivered million revenue XX%. million typically is for decline QX as $X implementations. driven by our The sequential and hardware, revenue estimate peak QX, customers idol Our is revenue is $XX services up $XX impact QX in estimate And season line, retail final our million.

about How growth. profitability. covers that So

maintenance the revenue to ago, points was predominantly up year period it was subscription, and and for leverage. and quarter cloud over XXX driven by margin the basis XX.X% consolidated Our operating services compared performance

margin half consolidated maintenance of be QX And prior basis operating services a peak resulting QX the Operating GAAP by margin of expect retail cloud, to XX.X%. line. how second bottom was XX% in of margin income totaled approximately margin operating up million, season about subscription, XXX and driven our outlook was and ahead over XX.X%, margin $XX points. XX.X% XX.X%. be We up to again QX XX.X% about XX%.

XX% our increasing XXX operating XX%. over to range XX.X% of adjusted guidance full XX%, points are to up to about year prior We basis margin

XX$ a for XX.X% estimate expect XX.X% XX%. of QX range and of to we range QX, a For to

long-term half our significantly very business earnings QX retail into are are invest operating our factored combined and our growth quartile and Just top seasonality license continuing peak pleased margins. with in line top estimates. leverage QX a drive maintenance double-digit second said, reminder, expectations with to is we to our we with balanced sustainable, That

solid cash Now turning to We debt. totaling performance. with was and million taxes cash closed cash, flow, QX structure, hand zero cap $XXX another on

Our resulting XX%. million $XX year-to-date operating flow in cash of million flow $XX was cash operating up

share in QX Our million. million XX% CapEx XXXX buybacks margin note million we million be free $XX continues in and in cash buybacks invested Also, to estimate year-to-date. our to in $X resulting flow $XX was $X for QX,

buyback million our buyback $XX the third our about quarter estimate also which assumes full activity board For we and shares and be shares, diluted our to $XX.X million. year, outstanding raised no to authority

QX our Regarding tax was adjusted effective rate our income rate XX.X% and was GAAP for taxes, tax XX%.

rate continue year For rate about tax a full XX%. XXXX, approximately we to expect an XX.X% of tax of adjusted GAAP and

that financial So you, back Thank and the covers Eddie. update. to

Eddie Capel

started opening want to momentum up And you pace Manhattan Very to results. somewhat delivering of deliver customers while the Many good. at offices I I innovation and strong accelerated help for of this a second by opportunity We've all great tailwinds. ongoing and resilience, strong some is our solutions customers to successful. of with globe. us business right transformation. commitment the be take digital before And do Associates global the return time. questions, our pleased right with second macro and my shape to remains flexibility, Manhattan have of it continue our into success teammates to for and ensure Associates result to is the opportunity their inspired are our the across and a your and environment Well, entering we're quarter our And Dennis. half Thanks to the year-to-date thank to XXXX very turbulent,

thanks Ren, now take we're questions to So again. open

Operator

from the first line Your question Terry Instructions] Tillman Truist Securities. from of [Operator comes

line Your is open.

Terry Tillman

outlook and two update. and afternoon, congratulations questions. have I results the Hey on good gentlemen, definitely the

innovation differentiator products time, question? rates or delivering spur just improve actually combined. on of a close it same the the at the you, The and the and WM you it's or? Active sales helping conversations first is want the around Are TM, for of more on in first they and of either actually just and That's seeing where both terms cycles to now Eddie buy

Eddie Capel

question, Yes. Terry. early. it's Well, Good

that – Manhattan mind answer us to we're past And business Active comes Manhattan we for customer, of sold contracted both new done TM, customer course, six weeks logo, Active TM. Active WM and before. new with least but so at is one Of not Manhattan have release new brand yes, the they

and good a pretty about start feel good six that So to in. off week

Terry Tillman

the follow-up the Dennis, And I great. question, then think but for the I first is, for just if I'm the all quarter quarter, What fourth That's call. or is. curious color and was you about it think forgot was fourth thanks it financial quarter I

kind this like acceleration layer how along more what I you to Does about would've subscription RPO, of a long-term because I'm to cloud in yes, be you're glide us you. gave talked of faster going been evened years roadmap path growing on coming could RPO. a your subscription out curve is well also revenue, cloud couple how guys the from than are or revenues subscription that revenue, of ahead on it going but the and on how of cloud expected. But curious Thank the what it's You kind of change maybe or that be about is seeing? you expectations

Dennis Story

it address former forward latter It change visibility. call and the Great versus QX we'll that – address the for those Terry, sure. is in updates the we'll will

Terry Tillman

thanks. Sounds great,

Operator

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

Your is line open.

Joe Vruwink

choosing over Great. comfort, accelerating a little on maybe now just you just a to Is Active in with I existing more migrate wanted Hi that think to quickly that everyone. WM we're maybe customers, and year said go the fact of a I function comment to the or somewhat. time market.

maybe well the something happening there cloud maybe customers the from chain, time are more with maybe supply backdrop, some as that there's embrace chance product? there, where reference ultimately is conclusion industry is been is the to now a going in new on there what's it, of the just elevated else right feeds arriving that examples see given So a comfort or at to importance

Eddie Capel

Yes, in so for need the we're same distribution distribution supply answered this but and to call take the a years digital question something I and awhile. see centers little today so, talked also a a certainly come if the don't though to cycles engine modern year a look that centers perspective, time, it to. not before to those you to XX them cycles customers that's power well starting technology those, them that existing even to certainly you've sales We've core much ago, there, or fruition, year fueling think they budgeting and reference-ability the of able transformation but in execution we're We're Joe. And about five takes from accelerating as more the space. for certainly software that chain the is did growth need be or want and

Joe Vruwink

just on the you're you point then should sequential at row Okay. of upside number context picture the That's been the within quarters a Do a that in making think development that investment now, now because you’ve behind I you're of where personnel infrastructure there other leverage you're point margin cloud is greater at starting just gross really to past in of the broader a investments. of years and cloud be transition there and gross couple a great. And margins of improvement. the see. and bigger and guess, the over

the seasonal is there in levels? as so, And to an there build but changes out to opportunity margin, we on gross look XXXX’s years, is understandably, maybe

Eddie Capel

and and and there We're some we think the and We on Yes. kept invest but opportunity leverage as perspective. marketing best doing to conference take the frankly. believe there certainly, make awareness. of this sure so still But chain – we're message the of we to some secrets opportunity more had here some a have forth. Well, well. we ended underspend okay is a momentum do so clearly, out supply the scale from we and one I world's we've not a to got that technology had year, Dennis in build virtual will get details

from investments in and investments underspend research some as we'll still well there and material make those So is as continue perspective our development. there to

Dennis Story

Eddie Yes, on Joe. I'll piggyback too.

to year probably is top out I'd is, we we're double-digit in comps year we as we're that. look there. say long-term is, there. – said what and bottom But growth, at, So we're any ahead really five, And that's create we're to pretty doing excited at performer think objective overall and in expected, so talent we're going probably objective think in invest call four continue technology, T&T or line we I our a be against say about is, where when we're I quartile and we're and to we this as margin tech top a – line of good to the pretty continue sustainable

Joe Vruwink

you much. Thank great. That's Okay. very

Eddie Capel

you, Thank Joe.

Operator

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

line is open. Your

Brian Peterson

Thanks, strong in number. a gentlemen. really Congrats RPO

maybe mind still there's that there operating or Dennis, imply seen we'll point kind we keep outlook few on a again are there? So of I've XXXX, of I a the a moving in seeing dynamic in last call the margins, operating And initial a parts, think we've decline need – is we up that but in we trough where hiring year. in related this at to see expansion follow-up but of the we're investments question, years now margins to last or seen any the margins can lot

Dennis Story

We're going call to a trough this stage. at not

that in earnings So that call, QX we'll discuss the evaluate and Brian.

say, pretty confident invest our We the business, are to in operating to to generate we're going ability to leverage. suffice but in continue

Brian Peterson

exceeded or and to kind the follow-up value there. was just Just on expectations. way in more your deal that way? had and it. that I'm slice think And you sales Thanks related of like you cycles volume the thoughts the the to it was maybe if can curious our get that you related of in back any this or be Got just dice upside to first curious again. to clearly pretty one quarter. again the RPO Do half strong RPO, look maybe year for me

Eddie Capel

pretty Brian, balanced, actually. That's

bit We've the seen some nice not a deals, on side. seen we've little bigger but contract deal much, longer volume. So

RPO balance a So that frankly. really nice driving is number,

Dennis Story

a customers not of nice exciting. balance our as seeing in Pretty install We're but net base, Yes. new just well. portfolio our

Brian Peterson

Good Thanks guys. to hear.

Eddie Capel

you, Brian. Thank

Operator

next Benchmark. the of line question Your comes from Mark from Schappel

open. is line Your

Mark Schappel

And taking for Hi, you question. good afternoon. thank my

start congratulations. me by good Let off job another quarter. Nice saying, quarter, the on

into drive the more some drivers certain of to good on growth want there Just just the of a saw led some of in it that read? is areas your you than prepared the particular mean, so kind commentary Were down your of others? outperformance product in quarter. appears based that I remarks that WMS way,

Eddie Capel

Certainly across so there and like the QX, a WMS was tends very heritage But product there it the balance sort much preponderance, and was forth, be product. to the lead nice of portfolio. TMS, WMS in strong was point-of-sale nice QX stepped and well. some it And up delivered but for inventory participated lead and dog the MAO really as and numbers sure. was

balance, nice pretty frankly. So

Dennis Story

Yes. And the as well. strengthen pipeline is continues to

we're… So

Eddie Capel

balance similar pipeline. Yes, in

Mark Schappel

seeing appears pickup on I that have, product you QX those they quarter the a it initiatives some retailers and carried of some want then down just that a restarting the momentum was to point-of-sale the great. bit of little that you second here. that over And just sense the that were strategic had. did. into projects on kind get just in were It diving call, Okay, point-of-sale large

Dennis Story

news good the momentum, nice getting and have to these Continues some of that shorter shorter. implementation are timelines is Yes.

about us new done point-of-sale of back – XX% And for never we've the last So customers nice we've just business that three customers is about thing the pipeline pipeline of the half before. the quarter. actually again, in the this brand had with point-of-sale go-live

under we the the like some given go-lives, said many, many flywheel So see to that pipeline, belt not feel an flywheel some do success, in momentum. the now be as times to up we've wins, really going getting the we're starting but pick overnight we're our

Mark Schappel

customers a And Very urgency thinking based just a sense supply just about seeing supply were ago? then your on just finally differently overperformance, it they if modernization of how or heightened today address appears taking regarding view, And Okay. a you modernizing their like back, chain from here, the you're that one, customers year maybe than could are XX,XXX foot stepping good. two chains?

Dennis Story

in very combination little supply world of frankly, they it's think out than supply Well, there. supply a is resilience chain, script, in these contingency competitive attributes, the I right. Yes. bit need different And I days of a I chain service customer the recognizing that a they in chain. a said, or need said needing the way a

customer supply one associates their of advocates. customers the each – and So chain customer our feel like service

And think grow. the be need and continues that bring the to to heighten our differentiator for continues competitive to so a to I chain supply forefront customers. need The

Mark Schappel

Nice you. Thank Great. job.

Eddie Capel

Thanks Mark.

Operator

from comes Loop Yun question next Your of the line Kim from Capital Markets.

Your is open. line

Yun Kim

Thank you.

congrats on and another Dennis. quarter, So Eddie strong

Eddie Capel

Yun. you, Thank

Yun Kim

TM, Eddie, products family, the that's the last that. you that the the high-profile maybe rolled out of activated to at say believe be into I can active product if I

next? your time acquisition what's give us is what overall on good to Maybe on this Thanks. your just on strategy. a thoughts us you update can So an update

Eddie Capel

plenty chain work in was the Yes, supply there still of space. do, Yun, to

through We have in than the hopper or frankly, longer next of in quarter two. list much get innovations a we can the

the into see. innovation the do I we bear So there's out areas. build investment that, continuing think to white that space a the we're of strategy, on down couple

as needs constant the greater customer out, two In is addition there's build drive omni WMS, out, into constant to engagement. markets a changing are of popping think in of solutions categories, levels One the I that TMS, continuum. new that suite into the greater,

is drive inventory And world. we on a satisfaction to we focused omnichannel I'm market a inventory still any white think on inventory market out space drive meet trend. coming a those and And real believe not optimization. we've not focus all that see in vibrant consumer of work real very And optimization and a a then into. self-service, for suggesting that the of the in so acute digital our all have And we're I what optimization piece CRM is SLAs. customer called but or this that's is to yet in grade is of to still customers race us investing of the there second ahead

Yun Kim

Thanks. of in Dennis, great. the metric license get revenue above good we number like a And That's in $X used old Okay. deals million days. a to

So what metric at is total perspective? of that? should Should large and how something be how we assess of have should RPO on bookings on driven kind big like wanted these you sense your activity, Thanks. much because deals mentioned similar about growth from we subscription look for that to get the or your Just it think the RPO to we depending RPO your how could large is that deals? you growth by sizable we lumpy deal should be asking overall exposure Like whatnot.

Dennis Story

Yes.

So RPO can lumpy of that's growth bottom it's linear of from view, very but it line point essence. view, point a and be quarter-to-quarter, is in from line compounding from a a

what So by quarter-to-quarter growth judge would performance that's our I overall RPO, RPO the really the we're from giving. guidance and is from

Yun Kim

that overall RPO? a the in the change then And you. Got on question contract may length meaningful always I impact meaningful that had ask, a any

Dennis Story

No.

Eddie Capel

No, all. not at

Yun Kim

All right.

Sounds good. Thank you very much.

Eddie Capel

Yun. you, Thank

Operator

[Operator William from Your Instructions] of next Matt question Pfau from Blair. the line comes

open. is line Your

Matt Pfau

in driving on guys. just existing those questions. prepared comments that? mentioned that in cloud. their you accelerate customers think to care conversion seeing the I what's expand Eddie, your taking Hey, you little my Thanks bit on Maybe terms remarks, of for a are to

Eddie Capel

from and some I the release, year most time. timing a We're forth. about Matt cycles, budgeting cycles upgrade Take think just part. upgrade for for so

get to access that almost center and the So immediate access continuing that's distribution – need the we're to to modernize factor. innovation one developing. the I And think get then

Dennis Story

Matt. Hey,

Matt Pfau

Got And… it.

Dennis Story

nice across is delivering is, other pipeline broader the new process, sales jumping innovation in a build just four And just really solutions. of we're been pretty the is suite here what – in last years. over solutions. the diversity the and Matt, seeing from We've

Matt Pfau

Got out pipeline, the Americas in and APAC. geographic think some I it. just than behind being being improvement that also that is then from geographies? driven some pipeline quicker, more strong perspective, particularly you what And open of strength reopening of a the called Or sort in but America other those seen Is by EMEA there?

Eddie Capel

perspective of micro opening, so are even it, There can certain APAC from open lagging Matt, returning, Yes, EMEA I so doors and forth that's that think countries the sort see and the a you up forth. of still within because and trends. and are

and on just a the certainly of little timing think blossom we lag to in modernization, I Matt. of frankly. before it's the we same see bit it, yes, of doorstep, it's those, trends bit can start see really little there I kind a think But a So,

Matt Pfau

guys. Great, That's lot. all a have. Thanks I Okay.

Eddie Capel

you. Thank you, Matt. See

Operator

next line of Your question Mark Securities. comes from the from Zgutowicz Rosenblatt

Your line is open.

Mark Zgutowicz

you. Good guys. Thank evening,

Eddie Capel

Mark. Hi,

Dennis Story

Hi, Mark.

Mark Zgutowicz

been follow-up question the much of had your seeing? have how or I sort And been from earlier be might quarters. the couple on strength, first you've the how to guidance second now how much Just incremental obviously blew And strength just conservatism was of extended it year in? quick of not into may still the or to may obvious half that built RPO the wondering through that the original macro a relative of

Eddie Capel

the bookings, we're I were pipeline Yes. were up the the we're coming but into the things the and how to demand, mean, there's seeing seeing, seeing grow. year. We about shape now we're little some going obviously question a we're cautious world, seeing here around

So about the it, the all across feeling board. raises, the raises hence stronger

certainly be promise organization. – deliver a under try So to over we are we

like to delivered we're you provided, the guidance we've and and can so we'd given exactly forth, that back. raises think keep from I that So we've we've trend but not that that holding going, as see

confident. more feeling we're Now

Mark Zgutowicz

Got it. last one And Europe. a just on

color how to that early Just back? some looking there Is to at as the strength on or months. comment strength come to into last some just Europe question. quantification fall Europe there, strong XX too to tell it the six next is will you're maybe Your over just

Eddie Capel

a been U.S. represent ranges lower, been in a relative somewhere if coming back materially, the little quarters. it like you here it we've to between to to want near but you that it to little flatter that software, see than just software Europe last see to quarters. three the It's last XX% of normal Typically, put would lower And and the – future. it's little two flatter for XX% not the if revenues and Yes. normality, couple coming over in or we a we And little seen – way. back three bit

Mark Zgutowicz

it. guys. Got Awesome. Thanks,

Eddie Capel

Pleasure, Mark. Thank you.

Operator

gentlemen, for QX Ladies call. you Manhattan this and participating. earnings Associates’ XXXX Thank concludes

You may now disconnect.

Manhattan Associates (MANH) 28 Jul 212021 Q2 Earnings call transcript