Q1 2022 Manhattan Associates Inc Earnings Call
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Again, ladies and gentlemen, todays conference is scheduled to begin shortly please continue to standby. Thank you for your patience.
[music].
Good afternoon. My name is Leah and I will be your conference facilitator today at this time I would like to welcome everyone to the Manhattan Associates quarter, one 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 period.
If you would like to ask a question. During this time simply press Star and then the number one on your telephone keypad. If you would like to withdraw your question press the pound key as a reminder, ladies and gentlemen. This call is being recorded today April 26, I would now like to introduce Mr. Michael Bauer head of Investor Relations Ahmed.
<unk> associates.
Mr. Baber you may begin your conference.
Thank you Lisa and good afternoon, everyone welcome to Manhattan Associates, 2022 first quarter earnings call.
Will review, our cautionary language and then turn the call over to Eddie Capel CEO . During this call, including the question and answer session. We may make forward looking statements regarding future events or the future financial performance of Manhattan Associates. You are cautioned that these forward looking statements involve risks and uncertainties and are not guarantees of future performance and that actual results.
May differ materially from the projections contained in our forward looking statements I refer you to the reports Manhattan Associates files with the SEC for important factors that could cause actual results to differ materially from those in our projections, particularly our annual report on Form 10-K for the fiscal year 2021, and the risk factor discussion in that.
Report as well as any risk factor update we've provided subsequent Form 10-Q s. We note in particular that uncertainty regarding the impact of COVID-19 pandemic on our performance could cause actual results to differ materially from our projections. We are under no obligation to update. These statements. In addition, our comments include certain non-GAAP .
<unk> measures in an effort to provide additional information to investors.
Inside the all non-GAAP measures city related GAAP measures in accordance with SEC rules, you'll find a reconciliation schedule in the form 8-K, we submitted to the SEC earlier today and on our website at <unk> Dot Com now I will turn the call over to Eddie.
Okay. Thanks, Mike and good afternoon, everyone and thank you for joining us as we review our first quarter results and discuss our increased full year 2022 outlook.
And that the associates is off to a strong start in 2022, we're reporting record results.
Q1, total revenue increased 14% to $179 million and adjusted earnings per diluted share increased 40% to 60.
And both of these metrics exceeded our expectations.
Our global teams are busy and are executing very well for our customers, resulting in very strong customer satisfaction broad revenue outperformance and earnings leverage and Furthermore, our investment in innovation and our people continues to pay off as product differentiation between Manhattan and other supply.
Sean on the supply chain software vendors is widening.
This differentiation contributed to a 75% win rates in the quarter and the growing demand for our industry, leading mission critical client solutions and.
In Q1, which tends to be the leading indicators for growth increased 92% to $810 million and we're tracking well towards achieving the $1 billion <unk> milestone later this year.
Demand for X sight offerings remained strong across products.
Industry verticals and geographic locations.
Demand also remains robust from both new and existing customers and while the mix of bookings will certainly vary on a quarterly basis in Q1 over half of our contracted bookings came from net new customers showcasing the unique value that we bring to the market and the runway thats in front of us.
And from a vertical perspective retail manufacturing and wholesale drove more than 80% of our bookings in the quarter, but drilling in the sub verticals are pretty diverse and include apparel department stores home furnishings grocery consumer goods manufacturing as well as durable.
Nondurable goods.
Our pipeline also remains robust with solid demand across all of our products suites over 90% of our pipeline consists of client opportunities probably as you would expect with net new potential customers, representing about 35% of that demand.
And with strong business momentum and our forward revenue visibility improving we're going to be increasing at 2022 revenue and earnings guidance and Dennis will cover those details in a moment.
On the services front, our team continues to execute very well conducting.
100 go lives in the quarter and.
And our global teams are also making really good progress against that goal of adding 500 net new employees. This year in Q1, we added about 120 talented individuals from Manhattan family and I have a.
Large new class scheduled to begin in Q2 as well.
Across our organization. These hires will contribute to our ability to meet the future needs of our customers grow our market share and extend our addressable market.
So now let's move on to a short update on some of our products I'd like to start with an update on our store fulfillment application part of our Manhattan active omni suite.
A wide range of retail brands used store fulfillment to power the ship from store pickup in store curbside and same day delivery customer experiences. The solution is flexible enough to scaled down to support individual order picking in the boutiques with some of the world's best known luxury retailers, but it also.
So could scale up to power team picking allowing dozens of associates to pick orders in department stores and other large footprint retail formats.
And beyond this industry, leading functionality the platform independent nature of the application allows it to be used across a variety of form factors and operating systems with our customers mixing and matching windows in either iOS or Android.
And that solution stands apart in the market for functional depth its platform flexibility and of course, the fact that it can be.
Deployed in conjunction with that point of sale application delivering a mobile first cloud native omnichannel and they will experience for all store associates and we're happy to report that each and every day more than 18000 stores across the globe use our store fulfillment application delivery to deliver best in class.
<unk> delivery experiences for consumers worldwide.
And speaking of stores and point of sale application, specifically, we continue to activate more stores across more retailers in 2022 point of sale remains a key strategic initiative for us and we're making solid progress on our journey to being the world's leading retail point of sale provider.
Now I've provided a more exhaustive update on Manhattan active warehouse management and last quarter's update so I'll keep my remarks on this flash flagship application a little more concise this quarter suffice to say, though we continue to see very strong interest in adoption from Manhattan active Wm, the cloud data at <unk>.
<unk> that we launched in May of 2020.
This quarter saw a number of additional go lives, including several high volume highly complex distribution centers and the applications feature richness intuitive mobile application and the ability to automatically scale in periods of peak workload set it apart in the market and these factors have combined to do.
Liver competitive win rate with Manhattan active Wm. Unlike anything we've seen in F 32 year history.
And turning now to the other foundational element of Manhattan active supply chain.
Thats Manhattan active transportation management in Q1, we once again named to the leaders quadrant in the Gartner Magic quadrant for Tms Ms results.
This result marks the fourth consecutive year it'd be named a leader in the transportation industry's most respected landscape report.
And in addition to recognition from the industry analysts Q1 was another strong quarter from an execution perspective from Manhattan active team, we continue to add new cloud customers across our diverse industry base and some of that early subscribing customers and ive coming alive with the solution.
And as a testament to our geographic diversity of our Tms customer base. Our first go live for Manhattan active T. N was actually the largest drug store retail chain in Latin America.
And the power of a unified supply chain offering is resonating around the globe, helping drive Tms pipeline and customer acquisition, both in the Americas and in Europe is speaking the Americas.
Kind of interesting, we recently signed a strategic SaaS agreement with a large home improvement retailer and is part of the project. This customer will migrate their existing on premise deployments of WNS, Tms Oems and our demand forecasting inventory optimization solutions to the cloud and one of the unique.
Benefits of our completely rewritten truly cloud native applications is how easy it is for our customers to use adjacent solutions because the solutions are now evergreen and it's relatively easy for us to design and maintain flows connecting the Manhattan active applications.
And I'll close out my product remarks by mentioning momentum.
Our annual customer conference and thankfully for the first time since 2019, we plan to be back together in person. This year will be in Hollywood, Florida, one of our favorite venues and the theme for this year's conference is assembled agents of change and we will bring that theme to life in several ways.
Aside from the obvious advantage of being able to assemble in person again. This year will also be demonstrating the unique advantages that we deliver when we assemble multiple application at Manhattan active applications together, a flexible and powerful Manhattan active architecture empowers, our customers and partners to easily.
<unk> unified solutions to take out marketing leading applications.
Extend them to do even more and drive positive change for their business and their customers.
And before I hand, it off to Dennis I'm also excited to share that we've recently launched at ESG website published metrics for years 2020 and 2021.
Manhattan is committed to providing clear communication to all of our stakeholders and we encourage you to view these materials to better understand our commitment to the environment, how we support a diverse and inclusive workplace and our efforts to strengthen the communities in which we live and work.
So that concludes my business update Dennis is going to provide you with an update of our financial performance and outlook and then I'll close our prepared remarks with a very brief summary, before we move on to Q&A. So Dennis Thanks, Eddie and hats off to our Manhattan strong global teams, who continue to execute exceptionally well.
We delivered strong financial results across the board, while significantly investing in the business. All three major geos were in the money Americas, EMEA and APAC delivered double digit topline growth and double digit operating profit growth.
Our growth profitability and cash flow metrics continue to be solid.
Start with a quick recap of the quarter with growth rates on a year over year basis, unless otherwise stated.
Total revenue was a record $179 million up 14%. This included two points of FX headwind.
Excluding license and maintenance revenue, which removes the compression driven by our cloud transition our total revenue was up 20%.
Q1 cloud revenue totaled $37 million up 40%, we ended the quarter with RPI of $810 million growing 92% year over year and 16% sequentially.
As an FYI as of March 31, 2020 to over 97% of our RP is cloud native subscriptions.
As Eddie highlighted demand continues to be broad and robust well positioning us to achieve the $1 billion of milestones.
Milestone this year.
Services set a new Q1 revenue record of $90 million up 12% how about them apples.
<unk> sales continue to fuel services revenue growth globally.
And services revenue combined represented 71%.
Our total revenue in the quarter.
Our Q1 operating profit totaled $48 million with adjusted operating margin of 26, 9% up 420 basis points year over year.
Our performance was driven by strong cloud and services revenue growth combined with operating leverage as our cloud business scales.
This resulted in record Q1 earnings per share of <unk> 60 cents up 40% and GAAP EPS was <unk> 48 up 37%.
Turning to cash Q1 operating cash flow was a solid $32 million we.
We absorbed $25 million related to 2021 bonus compensation payout in 2022 Merit compensation increases overall this resulted in a 28% adjusted EBITDA margin and 17% free cash flow margin.
Our balance sheet is rock solid with $216 million in cash and zero debt.
Accordingly, we leveraged our strong cash position investing our full $50 million share repurchase authority in the quarter.
Given the strength of our balance sheet solid cash collections and increasing visibility our board has increased our share repurchase authority to $75 million.
So on to 2022 guidance as consistently mentioned our financial objective is to deliver sustainable double digit topline growth and top quartile operating margins benchmarked against enterprise SaaS comps.
With our strong start to the year and increasing visibility we are raising our 2022 outlook.
As a reminder, it is our intention to only update our multi year guidepost on an annual basis in today's earnings release showcases the guidepost. We originally published in conjunction with our Q4 call.
For 2022 total revenue, we now expect a range of $720 million to $727 million with a $723 $5 million midpoint, representing 9% year over year growth.
Up from our prior midpoint guidance of $708 million.
For Q2, we expect total revenue of $178 million to $182 million.
Excluding license and maintenance revenue, we estimate 19% growth for full year, and Q2, representing sound underlying growth fundamentals.
For operating margin, we are increasing our range to $24 two to 24, 8%.
Up from our prior range of 23% to 24%.
And we continue to target 75 to 125 basis points of operating margin expansion per year beginning in 2023.
As highlighted on our Q4 call 2022 operating margin guidance incorporates the following and.
An impact of 300 basis points from license and maintenance attrition on customer demand for our cloud solutions.
250 basis points of investment for talent hiring and retention and.
And 200 basis points of additional investment in our business, including the return of pandemic impacted expenses, yes, we are investing in the business.
Guarding full year adjusted EPS, we are raising the range to $2 14 to $2 22 sets.
With a $2 18 midpoint.
Which is up from our prior $2 <unk> estimate.
For GAAP EPS guidance range is moving up to $1 45 to $1 53.
For Q2, we expect adjusted EPS of <unk> 52 to 54.
And GAAP EPS of <unk> 33 to 35 minutes with the difference between adjusted EPS and GAAP EPS solely representing investment and equity based compensation.
I will now now provide some additional color for full year 2022. This is good stuff.
We are increasing our cloud revenue range to 167% to $170 million, representing 38% growth at the 168 and a half million dollars midpoint.
We estimate cloud revenue will be approximately $45 million in Q2 and that it will increase to $43 5 million in Q3 and $47 million in Q4.
That's precision target bombing there.
For services revenue, we are increasing our forecast of $375 million to $379 million, representing 13% growth at the $377 million midpoint.
We estimate Q2 service services revenue of $96 million.
$98 5 million in Q3 and to account for retail peak seasonality $92 million in Q4.
For rate maintenance revenue were slightly refining our revenue range lower to $134 million to $135 million as customers convert to cloud.
For Q2, we estimate maintenance revenue of $34 million for Q3 dollars $33 million and about $32 million in Q4.
Overall by end of year 2022.
We expect license revenue to be about 2% of total revenue averaging about $3 million in license revenue per quarter for the remainder of the year.
And for hardware, we expect about $6 million in revenue per quarter.
Yes, I said $3 million in license per quarter versus $6 million from our hardware team clearly demand has shifted to cloud.
Moving to profitability for consolidated subscription maintenance and services, we expect margin to be about 54% for the remaining quarters of 2022.
For operating margin, we are estimating about 24% for Q2.
In Q3, and 23% in Q4 as timing of investments in hiring marketing and pandemic related expenses, we will push to the second half of the year.
All said, we expect to achieve full year operating margin of 24, 5%.
Turning to operating cash flow starting January one 2022 as most of you are aware the U S tax cuts and jobs Act requires the capitalization of R&D for tax purposes.
I refer you to item nine in our supplemental schedules.
We anticipate the newly enacted tax legislation to increase this year's cash income taxes paid by approximately $30 million to $35 million compared to 2021.
Of which about $15 million will be paid in Q2 with the remainder paid evenly over Q3 and Q4.
While there is still a possibility that legislation will be enacted that defers or eliminate the requirement to capitalize these costs. Our current outlook factors in higher cash taxes, as we will be required to make these payments unless the existing law as amended.
To be clear this legislation does not impact earnings per share and it does not create any incremental expense obligation and importantly does not impact our ability to operationally grow cash flow.
Finally.
We expect our tax rate to be 21, 7% and diluted share count to be approximately 64 million shares which assumes no buyback activity.
So that covers a super fantastic Q1 performance. Thanks to all of Manhattan Associates, and thank you and back to Eddie for some closing remarks terrific. Thanks Dennis.
We were very pleased with our strong start to 2022 and I record Q1 results.
The turbulent global macro environment persists, we continue to perform very well and feel like we're very well positioned for future growth. So in summary.
Manhattan is the industry leader offering World class technology demand is strong.
The competitive environment is favorable and our pipelines continue to progress very well as new and existing customers want to shift to our industry, leading cloud native applications that are scalable version less unacceptable.
So thank you to everyone joining the call and thank you to our employees for all the great work that youre doing around planet Les.
Yeah, we're not ready to take questions.
And as a reminder to ask a question you will need to press star one on your telephone keypad to withdraw your question press the pound key.
Please standby will be compile the Q&A roster.
And our first question comes from the line of Terry Tillman of Sugar, Sir Your line is open.
And then Eddie or Dennis and Mike.
Sure.
Basically two and a half questions out of its great to hear about the WNS win rate I think that's in 32 years, that's not bad.
Dennis the position.
One you've effectively done our models for us for each quarter. So thank you for that.
Yes. The first question is after that preamble is.
In terms of the <unk> mix and the Franklin our appeal in the quarter.
I guess Eddie.
Minds kind of.
Coming out of the global financial crisis, we saw it that'd be must replacement cycle, maybe an update on.
Is that what we're seeing again ws replacement cycle or is this just more kind of company specific around the cloud innovation theme you have I think it's a bit of both Terry I mean look we have a product thats been.
Hankered forward. If you are if you will.
By by the industry for a long long time.
Specifically being able to get access to new innovation much faster.
You combine that with the continued.
Transition to digital supply chains.
The need for speed agility faster.
Faster delivery times, a great deal of flexibility in.
Inside of the four walls of the distribution center, blending man and machine, meaning automation and robotics.
<unk> to be those facilities to be operated by today's.
Modern.
Flexible warehouse management systems and so.
So there's a combination of both of those things going on I think.
Okay got it and I guess, maybe a follow up.
Question is just it is notable to hear about the new logo activity, 70% contracted bookings.
Did those have a different profile in terms of deal sizes as they come in.
New customers for the first time do they tend to be smaller and then thats expanding over time or do those deal sizes compare to existing customers just doing more and then I wanted to follow up on the free cash flow for the year given the cash taxes.
Well I'll take the new customer logo and Dennis I'll take the free cash flow no.
The deal sizes for the new logo customers, there's no discernible difference between new customers and exist.
Deals with existing customers.
State the obvious.
The.
Fantastic to get new logos into the into the family as you know.
No historically two thirds of our.
New software.
Business each quarter comes from the existing customer base, where we cross sell and upsell, so being able to get new logos into the family that we believe that will provide.
Future revenue opportunity for us.
It was really fantastic and very exciting.
That's great Yes, Dennis I was just going to ask about you gave us a good color on cash.
Cash taxes.
It's going to be larger than <unk>, and then I guess, it's evened out.
At a small level on <unk> is there any kind of guidepost you can give us on how we think about free cash flow margin for the year.
Does it build from the first quarter level, just any more color on how to think about cash flow. Thank you and congrats.
I think it will build through the back end of the year and start to normalize and track pretty close to the operating margin profile.
Okay.
Second half.
Yeah. Thank you Terry.
And your next question comes from the line of Joe <unk> of Baird. Sir Your line is open.
Great Hi, everyone.
I wanted to go back to the strategic SaaS deal, where you're migrating up.
For on Prem suite to venue active platform.
What sort of opportunity does that represent within your existing installed base or maybe not even share of customers that are using every operating but any sense of maybe customers that use more than one an on prem product today and what those could represent.
No not metric you know frankly, frankly, Joe but the point, we were making of course now we have these.
They're known evergreen applications their version list.
Which makes the seamless integration of the cross sell and upsell in the integration of one application with with another frankly, a good bit easier than it has done in decades past.
Frankly, the purpose of highlighting that was just to make it clear that that really is a.
An exciting avenue for us with both existing customers and new customers that are there.
Procure more more than one solution.
Originally.
Okay.
Yes, there was a big supply chain trade events in your backyard are about a month ago down in Atlanta.
Yeah, two two big takeaways that it seemed to me one was just the emphasis on Tms really it seemed like across the industry and then the second was achieving a better integration between your online storefront activity or a shopping cart.
Actually having that in form.
You're picking operations on the floor I'd imagine how your cloud product is architected you are well suited to.
I'll address both opportunities are you starting to see some of the T and thoughts on the category, but maybe some of these more advanced use cases.
<unk> attract customers your way and maybe some of that's filtering into why the new logo participation.
Stepping up for you.
Most definitely.
Question number one honestly not so much on the new on the new.
New logo acquisition.
Kind of spread across individual products in various different initiatives. So I couldnt say it would be wrong of me to say, there's a concentration.
<unk>.
Around modern unification, and the new logos, but but but that obviously is a great opportunity for us to reach into.
In the future, but back to the original the original question most certainly.
Integrated WNS and fully integrated and seamless there'll be messing Tms has been the Holy Grail for for a long long time.
And.
The seamless integration of Oems and WNS is also as you pointed out very important in today's world to provide the responsiveness to the consumer both on the forward part of the fulfillment cycle, but also when adjustments need to be made.
How late in the cycle kind of consumers still make adjustments to water orders, whether it be quantities items shipping destinations and so forth when you've got an order management system that is very tightly integrated with our warehouse management system and the capability to be able to make.
All of these late order changes and so forth.
Really got a differentiated offer offer for the consumer.
Hi, great. Thank you very much.
Thank you Joe.
And your next question comes from the line of Brian Peterson of Raymond James. Please go ahead.
Alright, Thanks, gentlemen, and congrats on the RPI number.
So first one Andy I just wanted to be.
Win with a large home improvement retailer.
Obviously, they bought a lot of products from you. Once I'm. Just curious is that a common theme that you see the later stage pipeline now that you have kind of a multi tenant cloud portfolio or would you still expect maybe one or two I'm just kind of curious where the appetite is from customers. There. Yes. So it's an interesting one so that's an existing customer.
Have all those products from our portfolio in their landscape.
But they didn't buy them all at once.
They had acquired those on Prem solutions I forget the exact sequence, but they acquired them along the way.
A buildup that portfolio in either transitioning or migrating them all to the cloud in terms of multi product purchases honestly there aren't that many of them and we've talked about this a little bit before.
Primary reason for that is most of our systems.
Take quite a bit of implementation.
And you usually to take on two or three product implementations. All at one time is a pretty heavy lift now what happens in the way the conversation goes as we're selling frankly pick your product whether it be W. M <unk> or whatever it is.
<unk> checking out a roadmap it may not be for purchased today, but we're setting out a roadmap to get to those products.
Those complementary products in the future.
Okay got it and maybe a follow up just on Europe .
Curious what you guys are seeing in bookings, where maybe the late stage pipeline that try to get too granular, but obviously, there's a lot of turmoil in the region.
Anything that you can share in terms of deal activity or pipeline.
They are pretty strong pretty strong Brian .
EMEA had a very nice very nice quarter pipeline looks frankly, even stronger for the balance of the balance of the year and obviously there is a very difficult times going on in eastern Europe , and Europe overall, but to be honest with you. It is not.
Not impacting that business at all.
Good to hear thanks, guys.
Brian .
And your next question comes from the line of Matt <unk>.
Please go ahead.
Hey, guys nice quarter and thanks for taking my questions wanted to first just ask because we've seen perhaps the mix of retail between.
e-commerce , and bricks and mortar, perhaps normalize a bit as we've come out of the pandemic.
That impacted which products you're seeing more demand for within your customer base.
It really it really hasnt, Matt Yeah, the one thing and we've sort of talked about this a little bit over the last 12 months or so we have seen.
Omni order and order management pick back up but thats obvious because it was super quiet.
2020, when the stores were closed and so forth so.
That's that's really being the only change, but it's a it's a.
It's a back to back to normal phenomenon versus a shift I would say.
Got you.
Okay, and then how should we think about that.
The strong performance, you're having in your professional services business relative.
Relative to the commentary about cloud applications being easier to implement an evergreen.
That sort of commentary would put almost make you think that you would need less professional services, but obviously that segment is performing quite well.
We're selling quite a bit of software that's really what it comes down to.
Regardless of whether it is implemented in the cloud, which almost all of our software is now or on premise.
The solution is still have to be designed they still have to be integrated they still have to be tested.
Management still has to be performed.
The technical aspects of how you deploy are nuanced and a little a little different but still plenty of work plenty of work to be done there.
And demand is strong for both of us.
And our partners frankly.
Yeah, I mean, we're guiding to about 13% growth year over year. So.
Very strong demand.
Great just last one for me on the on the win rates with active Wm being at record levels.
Is that the same.
A competitive set that you would see with with your on Prem product are you seeing different competitors, there just anything that.
Is different from a competition perspective, no pretty much the same competitive landscape mat things shift around a little bit here and there and they adjust modestly geo by Geo, but really no no no change.
Okay, great. Thanks, guys I appreciate it thank you Matt.
Once again, if you would like to ask a question you will need to press star and the number one on your telephone keypad.
To withdraw your question Brett.
And your next question comes from the line of Mark Chappell.
Your line is open.
Hi, Thanks for thanks for taking my question.
Also congrats on the on the RPI number thank you Darko.
And just building on an earlier question with respect to your new customer additions.
Are these new customers typically coming from your core verticals, such as retail apparel or are you starting to see more and more customers come from come from.
Yes.
It's a pretty good balance mark, but there is no question that we.
We're seeing more business come from manufacturer manufacturing.
Manufacturing and wholesale.
And look at the end of the day.
Whilst a lot of those companies are still categorized rightly as manufacturers and wholesalers.
They are selling direct to consumers today.
And they haven't done for.
The previous previous life. So as soon as any one of those companies start selling direct to consumer to us. They look an awful lot like a retailer.
Right they've got a they've.
Obviously, the order size is way different than number of destinations that are shipping to is way different they've got a deal with payments direct and you know frankly for them goodness forbid they've got to do the deal with all those dirty things like returns and so forth that they didn't have to deal with before and they just looked like a lot like a lot like a retailer which.
Obviously that strength, we've got a pretty good strength in that.
And that vertical.
Very helpful.
Okay. Thanks, that's helpful and then.
Any based on your prepared remarks, you know it appears that you are on plan or the company is on plan with respect to the aggressive hiring plans you had a subsidy year.
Many companies that we talked to are having some difficulty on that front and I was just wondering if you could just talk a little bit about that and maybe what you're doing differently.
Yes, sure I don't know, what we might be doing differently, frankly, but we are certainly putting a lot of effort into into hiring recruiting and we feel like that.
People individuals like to work for winners so was so that's.
No.
Arrow in our quiver I know I do frankly.
You know when we have exciting customers to work alongside we have the most modern technology.
It is available in the certainly in the supply chain supply chain space, we have global opportunities and.
Our compensation levels are pretty competitive so.
With all those things combined we think we have a pretty attractive proposition here rather than <unk>.
Incredible team, we've got an incredible culture.
Credible diversity.
It's a.
Probably a little biased here, Mark, but I think it's a pretty fun pretty fun environment to work in.
With that our pure print.
Sounds like you have a right to be biased so well. Thanks that's helpful.
Thank you Mark.
And our last question comes from the line of Sarah Burnett CEO program that Securities. Your line is open.
Thank you very much and nice quarter gentlemen.
I just wanted to ask I, just thought I'd ask it a little bit more.
Dig a little more into the new logos.
The mix.
Just want to understand.
Are these coming from primarily North America or are you seeing.
Now that you've got a.
Predominantly cloud offering are you getting more international interest in the platform and as you know are you reaching out to these new customers directly or our partners stepping up and helping you there.
Yeah, let's see a few questions there.
We have a great partner community and they're in their influences is terrific, we get some introductions through partners.
Partners certainly nothing is handed to us on a plate we've got a we've got to win under under any circumstances on our own on our own merits, but partner or the partner community is fantastic and has been serving helping us in serving our customers really really really really well with regard to geographic reach or honestly it hasnt changed a great.
Deal.
But about 80% of their businesses in the Americas and about 20% is <unk>.
International It does bounce around a little bit but holds reasonably steady around those around those metrics and.
As I mentioned before the the verticals we are seeing more.
Reach into manufacturing and wholesale than maybe we've seen in prior years, but the summary of all of that is pretty good balanced player across the geographies across the product portfolios across the tiers and across vertical industries.
Great. Thank you very much.
My pleasure Blair. Thank you.
And there are no further question at this time I would now like to turn the call back to Mr. Eddie Capo, President and CEO of Manhattan Associates. Okay terrific. Thank you Lee and thank you everybody for joining us to listen to the Q1 earnings call. We look forward to continuing.
Continuing to focus on our customers focusing on people and focus on innovation and reporting add on those things.
90 days from now thanks, a lot.
And this concludes today's conference call. Thank you for participating you may now disconnect.
Yes.
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