Manhattan Associates (MANH) 2 Feb 232022 Q4 Earnings call transcript

Good afternoon. My name is Robert, and I'll be your conference facilitator today. At this time, I'd like to welcome everyone to Manhattan Associates Fourth Quarter Earnings Conference 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. reminder, February gentlemen, X. a being call As today, recorded Instructions] ladies this and is [Operator

Manhattan you I host, Head of Mr. now Michael Mr. would like Bauer, of to Investor conference. begin your may introduce your Associates. Bauer, Relations

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

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

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

We are under no update obligation statements. to these

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

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

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

over to Now I'll turn Ed. call the

and we fourth afternoon, for thank good you as XXXX. our joining and quarter us results, review as Okay. XXXX as for well Thanks, outlook Mike. Well, our full-year everyone,

also per our amounts Manhattan, future in we for people year and growth R&D. remarkable collections invested earnings innovation, and record revenue, in profit, in a total all-time setting And is XXXX to share. RPO, operating records cash So drive and

XXXX, the development, on $XXX spent research XX% up from year. we previous over and In million which is

We high solutions total services. by also in XX% our for to the increased and headcount our response demand

confident the our contribute we we in chain and these innovator customer already core our extend plan including momentum, business as our execution, record And the position satisfaction of our of investments hiring new continue retail that We and XXX leading fourth omnichannel be given to become are to supply introducing to commerce. favorable investments, high opportunity cloud-first point-of-sale the goal year years and size will revenue long-term company and which five solutions ago. between our the are to associates a in XXX guiding XXXX, since levels

our opportunity. Now while are regarding we remains robust, economy, our we demand solutions cautious about the global remain long-term appropriately market for optimistic and

customer base. customers' mission-critical and good solutions our pretty conversion to our several Now product and are portfolio into are And recall key in the visibility our the cloud; including, additionally, entering of customers the cross-selling they new success. we acquisition are our to customers; unified on-premise our of drivers, components with XXXX growth

share quarter and that in growth expectations. to $X.XX. per QX all cloud, results results, our across XX% highlighted specifically quarter outperformance double-digit of leverage million diluted services topline And Revenue earnings pivoting Now our earnings a by XX% and increasing our solid with revenue growth reported record a in to adjusted quarterly growth was XX% geographies. XX% as increased these the strong drove our and in $XXX exceeded

demand Win cloud solid be XX% growth, product our indicator pretty to of leading XX% for the plus, rates at levels solutions increased of our at to the $X.X customer and end portfolio. that satisfaction billion RPO, high. XXXX. across importantly, Now And are remain continues

XX% of diverse. in than retail, perspective, manufacturing our the the vertical are And across quarter. From a our wholesale solutions, pretty drive bookings more and to sub-verticals continue

retailer, a healthy a e-commerce to the the manufacturer, retailer opportunities XXXX. resilient the bookings in additionally, mix as automotive deals numerous global others. as this from over for were supply a of well of a over manufacturer full-year. across of goods, an modern cloud And new logos benefit example our And include and cosmetics bookings won For quarter, company, clear diversified XX% contributed sub-verticals food and in home a by a aided chains, grocery from wholesaler of XX% cross-sell generated

continues new demand. we our Importantly, that And than suites. year-end, to strong our cloud. Net be had of with product that of converted solid less customers demand the as about customers to of XX% pipeline potential XX% across represent on-premise

the Now front. turning to product

for in are support include inventory the work and fully exciting we were Conference New very prospects them. and into make rates selling. York. force store we functions with this some National We've checkouts innovations that for solution. with conversion Manhattan a and exciting store exposure back management We inventory accurate coming RFID Customers enabling so to doing retailers product Those and RFID off in have Federation share can Retail our around maximize year, returns, and of more added fulfillment increased directly native promises, Active are

that It's digital shopping. of in a product how know The value of be that unit experience allows with experiences improved it inside specific to has labor. bricks-and-mortar RFID particular to and customers and where customers becomes deliver And quite our RFID their located of part significant these proven an significantly less vital is the of store. do our stores much they more, each as to have what's integral

ability management a transaction. built-in seamless items to peak process. point-of-sale a a A are showing our our of the customers very sell we with number technology, application. Omnicart from very of positive results alternate locations capabilities. with That's rollout the of season, a our unified speaking single and Now a can Omnicart only in store successful retail commerce finished deliver our specifically and order capabilities point-of-sale solution from just And

wave the cloud-native seeing deployments the I implementations, of couple operational positive the of a And very Management. I'd we of really WMS. share Warehouse positive Manhattan of Active regarding Now are thought our operational tied from on some impact deployments results anecdotes first to

is store. and top accumulate a this X% the standards in redeemable incentive a I've spoken one incremental one these early of are complete who improvement the engagement, engineered our which WMS in all Manhattan of gamified items the unique is an engagement, And including for in digital WM features, now DC to adopter before activated employee for of employee labor and points. of their customers challenges to features Now program. result And And of on points customer variety traditional productivity our Active about their tangible application. associates enabling incentive the

distribution Active after on their for And though in implementing Manhattan the workflow Even handling showing of one of extensive Active facility productivity WM. customers record staying increase already a levels Manhattan center Brazil automation, productivity inside is automation. throughput enhancements helping was outfitted pretty optimization extract moment, them apparel our WM double-digit the material in their with from is a high-volume of

a Now Manhattan too. DC, shines automated less Active there, really WM even in

path in One large this of attributable our is Manhattan a Active of is latest improvement WM. the reporting to improvement to wholesale picking algorithms native optimization pick excess drug and XX%, customers productivity

thank And and members because creating can feel to an went I committed our goals, customers. with in contribute in Dennis, for want and Manhattan hand deliver team. to valued team. culture they their team of the recognize valued and clearly And our the I'm Manhattan our success member results which take inclusive where to of every to before engaged this advance I off live a company of to global Now each this And year with largely careers, briefly company-wide and and XXXX, future opportunity in the to remarkable communities work. this beyond they above remarkable confident is

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

So Dennis?

Thanks, Eddie.

Eddie execution. in revenue, around earnings cash we and in As Congratulations great operating total to globe all-time collections share. for XXXX, team set our the per profit, members highlighted records RPO,

of a financial and is for strong results and on of attrition, exceed our balanced the excluding both Rule Overall, the for with topline performance quarter Rule our growth we revenue both comparing growth license the XX. operating and normalized the maintenance XX and transition, year, cloud margin, to results favorably if delivered

to deliver continue We profitability and metrics strong flow. cash across revenue growth,

financial for quarter otherwise stated. recapping performance All are and on the our start rates basis with year-over-year year. growth I'll unless a

results Additionally, $XXX if as comparisons. XX% was stated, total we unchanged XX% excluding XX% $XXX FX. million, compare from were Full-year and reported as to and totaled period. up up are rates demonstrate growth currency currency removing QX also providing the revenue XX% ago constant will FX. year Unless revenue million, also apples-to-apples constant otherwise

revenue the our removes QX full-year growth XX% was and Excluding transition, revenue, which license maintenance and by cloud compression XX%. revenue

our be XX would if September end growth would unchanged levels, XX%. RPO totaled out XXXX $XX up million, And remained This closed If revenue revenue unchanged totaling with from $X.X the RPO of high ago of XX%, full-year billion on the We FX period, growth was RPO rates $XXX cloud XX%. the year round, up guidance. be from growing remain rates at with XX%. sequential QX million, X%.

As XX, subscriptions. of cloud-native of represents true December XX% over RPO our

fuel revenue to increased records XX% services were services services Both to as full-year XX% cloud continue and million. globally. QX $XXX increased revenue million, to $XXX sales growth

leverage. earnings to Shifting

XXX basis $XX million margin XX growth. point operating Full-year points was revenue driven with revenue Our on The QX growth. adjusted basis totaled increase was operating operating XX.X%. an adjusted of income XX.X%, up margin by

income $XX operating Our QX full-year GAAP GAAP operating operating million $XXX operating XX% income with XX.X% a margin, with a margin. million was with totaling

resulted to free increased up in our margin million the full-year tax QX share our flow expiring benefit QX XX% cash EPS $XX of Note, EBITDA with XX.X%. as which per margin to earnings of This was quarter flow $X.XX, includes XX% tax exceeding cash QX tax in operating lowering XX%. to effective and rate was increased was guidance. adjusted Our associated $X.XX XX% $X.XX. statutes, EPS XX%,

cash was cash full-year margin free Our operating XX.X%. margin Adjusted flow XX.X% was EBITDA was and $XXX flow million.

paid include cash taxes cash is paid, Remember, roughly doubling which last these $XX year. in figures of amount million the taxes over

associated on please incremental Jobs schedules. the to supplemental cash taxes refer in paid information earnings our information Cuts the with U.S. more Item Act, and $XX For Tax million X

million sheet, sequentially We and XX% zero debt. balance $XXX XX% closed increased Turning year-over-year revenue and to deferred $XXX cash to the XXXX with in million.

in authority. in the invested million approved including our we $XX Also, $XXX million $XX share million year, replenishment For QX. has of share our the Board buybacks, repurchase

to guidance. moving Now

and mentioned, is benchmarked against growth margins double-digit comps. our deliver quartile operating sustainable SaaS objective to consistently As topline financial top enterprise

Eddie invest to balanced with growth approach and mentioned, we a profitability. continue As will to

we the We XXXX guidance of are margin that revenue, provided EPS last midpoint and preliminary the operating raising quarter.

$X.XX our of We RPO midpoint billion. XXXX guidepost are also reiterating

our Consistent earnings today's with guidepost earnings release, in recent supplemental our found be schedules. releases, can

updating be our outlook will As on we annual prior RPO noted on an earnings calls, basis.

Additionally, nonlinear cause the as throughout value performance number bookings and can we large by lumpiness impacted our close relative bookings of the quarter, or year. in previously any is potentially discussed, deals which

total expect midpoint, we XXXX, $XXX with revenue of million. full-year up midpoint to $XXX million For prior from our $XXX.X $XXX million of an million

this our growth. XX% Excluding All attrition, license represents and in, X%. is maintenance target

First to half about half second splits total are be expected revenue and XX-XX.

QX, we ex total growth, XX% maintenance million revenue million, XX% at to and $XXX For which of $XXX all attrition represents license in. expect and growth midpoint the

$XX to increasing We XX.X%, And basis point reflective margin midpoint cloud. XX.X%. continue we XXX from a in with higher track license is range reduction headwind operating guidance in our million prior are Included to expectations. maintenance XXXX original transition of revenue from of adjusted up our to our ahead this XX%, of margin the our to of and a from outlook, revenue our XX.X% range

QX, XX%; on $X.XX is XX%; This targets. from quarterly pretty operating At $X.XX our $X.XX to EPS basis retail outlook roughly: is Those are EPS, margin for QX, XX.X% QX, peak and a GAAP For a to to The seasonality, range expected XX.X%; up QX. the prior midpoint, exact for adjusted midpoint, midpoint full-year accounting guidance be $X.XX. in range of $X.XX. results our $X.XX in

EPS GAAP higher. below-the-line were normalized XXXX adjusted income levels, be the taxes income XXXX be XXXX other $X.XX would higher if EPS would at and $X.XX and Note,

QX, $X.XX of $X.XX. EPS expect For $X.XX GAAP EPS $X.XX and we adjusted to of to

for QX our be about For expect EPS than in QX, $X.XX adjusted through EPS equity-based lower we compensation. per which accounts GAAP investment to quarter,

on are additional some outlook. Here details XXXX our

sequential and XXXX, million, increase midpoint million to revenue the about a full-year cloud XX% throughout million $XXX at are with representing increasing million the to in For our range growth $XX.X QX quarter $XXX year. assumes we per $X

$XXX revenue we QX For retail million increasing million; and million; services XX% million, a are services QX, in million of accounting growth of to expect we seasonality, forecast QX. our revenue, the at quarterly $XXX basis, midpoint. for $XXX representing $XXX QX, roughly On peak $XXX $XXX million;

total expect X-point maintenance in to headwind cloud, to an XXXX. represent about growth attrition in and license we On revenue

or On of For expect and range basis, XX% to million million; maintenance, a expect $XX a at we million. a million, we $XX quarterly million; be decline QX, QX, $XXX $XXX QX, to QX $XX the midpoint. million; $XX

to license revenue or $X total of revenue. expect be We XXXX million X% roughly

For $X.X we in both QX; million and $X.X million QX, $X.X anticipate for of QX. expect in license hardware, approximately million we QX quarter. $X in per revenue revenue; million And and

For and On expected about QX will targeting is XX.X%. a be QX consolidated are is be for basis, for expected QX to services XX%, to seasonality, full-year. about about be subscription, QX And maintenance margin, we XX.X%. quarterly the XX% and accounting

shares, diluted count assumes XX.X% and be million our to buyback no expect activity. We XX to tax which effective our be rate share

was year, you. some expect across and cash and XXXX we closing profitability year to remarks. of great for back growth to In flow. Thank XXXX summary, balanced another revenue, a Eddie be And

conditions Dennis. and we there, was appropriately XXXX solid Thanks, I volatile on cautious, XXXX very Terrific. excited as we momentum, macro opportunities we many the out mentioned lie year about a entering are while look, that are Manhattan. ahead. for business remain And with the Well good very

to be our seems resilient. and for strategic solutions solid demand So just is to recap, our

transformation Our are our supply customers to global executing we business help their innovation deliver with and to leading are to well, invest teams in digital chain our and very journeys. continuing

globe fantastic Manhattan's a that as base of the be XXXX all of continues employees commitment and customer closing, one across again, differentiators. our to to our dedication your for growing you thank In to key

be now there. with might to that, out Robert, And we ready are any take that questions

time, proceed Thank question. you. [Operator Please Securities. with question will your be Terry session. Tillman conducting comes we first a Instructions] this from At question-and-answer Truist with Our

and I'm Dennis Mike. do my Congratulations get to Eddie, annoying standard going results. of preamble, to the then Hey, questions. kind Yes. and on my I'll

the of of the kind That the customers. evolved. understanding love I of helps in how Eddie, First, lot a different has examples terms business

that. basically, doing keep anything you do. we to hope Dennis, I really So modeling, have don't

across told four item us basically You line quarters. all every

for easy. So making thanks that

questions. the what a first on Eddie, the when omnichannel, than and you the then for new versus Now size that products, three you past, on is does like you've Dennis. new just given initial years platform, deal you, the have done bringing models five logo you've finally, to had lot are more you the cloud my bring been logo in just And look a project? question Maybe you and had of ago or in business the a nowadays follow-up what terms with different I for of the and and or scope

Yes. Great question, Terry.

popular, it for but more see of platform kind in XX% think, you the that, with with from one upsell time solution the that can same it one little it bit of not multiple this a In typical way, and at frankly, I unified world, old different. So from to And a revenue, buy the And the long. license be world exclusively that subscription-based at coming was the very revenue more to bridge popular, of of to the In a product later. products not be customers results other our seems frankly more tends to we buy is to also is upsell. time. indicative have follow-on

my a maybe follow-up quick then Eddie, for you, had for and And Okay. Dennis. I

the visibility, going about installed mention do the forgot You see the this of and How of so And visibility driver. maybe there. remarks this description have one solid then decline Is your improving? is maintenance one cross-selling. terms exactly you the actually or base, that's to notable But changing or in is more more the curious in much other what start we're kind did I'm than for visibility meaningfully, prepared to strong I visibility? driving

base You logos? new mean customer versus

and they then base installed buy cross-selling. then get No to And their going starting just now said, had you journey like there's more. repetition versus

I to close be on-premise Terry. road got an guys. pretty difference of or with only Yes, conversion, it customers, base, relationships And whether in long-term confidence they the whether because huge And of be share map us. cloud to with these capability customer pretty frankly, visibility we're We've think visibility, a there's our it their close. inside an or we're generally, expansion don't

in no two. visibility the difference across big So

Okay. about looks that in flow margin And free a then just year, Thank of XXXX? taxes finally to million or how the flow answer think for you you. the you, in for maybe in margin, could Dennis, terms on that XXXX either free give and $XX cash plus how in incremental cash perspective headwinds on cash or

Yes.

flow, free two operating So point relative to follow on cash the or going to margin. a it's our

I operating was your sorry, probably other? points three to handicap margin. Terry, between And would So it difference I'm two – what then as

I going it that impact Well, from we step take past it should of to hogging up to up? kind get I'm we're – another just the this to starting like of But stop. Or are worst the call. was related cash and does taxes, that? the

We're past the that. of worst

So we're about of same on taxes annual basis the of now. an in essentially, mode a amount

Okay. Thank you.

Thank you, Terry.

question next Baird. Please Joe from your proceed Vruwink Our with question. is with

everyone. Great. Hi,

Hi, Joe.

management I going bookings just inventory it to an be attention bit the thing as NRF year. imagine of in do all go floor the this on at to wanted would and interest a solutions. And WMS is anticipate the primary I of me and to for was to suites? the you But one relates that still really driver and you uptick back year. this to also omni folks to stood about store-related order speaking

there's up, massive going that Joe. to certainly step Well, we so, know frankly. be don't hope I a

the of certainly a for interest. significant solution, sort that in continued to the management and of order pecking make integration us. know, We've number is of As with you the lot solutions. bricks-and-mortar solutions clearly X store on particularly is order investments There

we're continued significant So growth in there's that area. that and in There And is particular there. for no hoping question. interest momentum

Great. installed timetable a was maybe base at ready. your base, from thinking any I if have Manhattan? as Okay. contemplated. looking I want Eddie of know maybe they're base not time, and today, – in at can seven years I kind But how most as than any you were the six, you say think less views point customers has move about of until migrating solution of there's long one it's to Do sort XX% of the cloud on installed

Yes. but okay, on-premise Still suddenly Joe. feel over I the the second cloud at on-premise ball, customers own I base seven customer to a of same forth, the next company. years. transition cloud-first slight now over way. the questions the there, the look will two crystal existing Well, part from years. when so cloud seven the in cloud or to our a think six from customers There's and something laggards of are migrate always from will we is there's will Remember, when next bulk definitely different most us? question the my our – six few I of The – our to the

cross-sell solution, we as a cloud well it base, TMS solution. WMS buy So is solution a customer an quite OMS just that an on-premise customer on-prem our hypothetically, cloud cloud for – upsell a point-of-sale into or and likely might

years. shorter horizon mean than that seven be six would or time that, that would So

one And I sense. That then if one quick makes it in. have Okay. squeeze I can

think expect view if guess, throughout quarterly RPO any just Just quarter-by-quarter, Just I cadence a about the kind might seasonality tougher, of way any if customers more or, been on macros RPO basis? thoughts of have to XXXX? budgets the bookings you'd on

revenue a just we've little always day. in suspect will license the – of back said bookings we RPO did from like likely bit lumpiness Look, suffer

customers get seen comes RPO they big strategic – want when it a bookings. going. before, forth. they to We ton it need going frankly, whenever haven't want of frankly, our to and I so to said to but seasonality purchases get are these And

very decisions. generally strategic isn't there any so in quarter, And particular again, a slowdown particular

Great. Thank very you much.

Thank you, Joe.

next with with proceed from your question. is Brian James. question Peterson Our Raymond Please

touch is This cross-sell question. the good XXXX. on I for Eddie, Brian. on taking John really in wanted for Thanks to referenced cross-sell. you here numbers first Hi.

you products? I any great. Any with you're call there color for if curious geographies But additional seeing faster customers think where said back a XX%. I'm would out Maybe cross-sell? be coming in seeing you're cadence change you'd

The more bit is Yes. been little consistent across has cross-sell be consistent that particularly, we've pretty an prior in And or year-over-year recently, a geography pretty XXXX in Not uptick seen the over John, A, and meaning is: kind cross-sell, to number XXXX, perfectly of pretty of XX% consistent years. honest. across one.

the of smaller – move as is seen we part again, that upfront more into then pieces customers portfolio larger portfolio. moved move into off think, cloud-first and and I product a environment, of bite quickly have we've a but

you color you insight there. touch can very strength Thank pipes' progressing the how to are That's product. though conversations going TMS U.S. I recall see the the outside also, you within great out then give I'm maybe on us you I in into there? curious much. the called Okay. how the you. customer the Thank want U.S. And past, And of

Yes, market called only I TMS in We picked been strong TMS us the the to years. Americas outside honestly, has – outside of that last over few that not strongest way. Americas, design. growth for offer up reason by out the a we look, good. the is mean, reason historically, tended pretty the the very That's not of

in So New and certainly in some of particularly we America, highlighting particularly Europe, Australia were particularly Latin successes in Zealand. the

more TM Manhattan product I customers. or WM the about Active Manhattan about transportation frankly, talked recent Manhattan Active customers the really a Manhattan unification some pretty conversations Active bit about, doing jump-starting and But of before, of half WM is very Active well. little is guess, our we've interesting this with

will future. as starting continue And that really the from to into something on that unification. benefit So see we that

congrats thank you great on quarter. and very much a Well,

John. you, Appreciate it. Thank

Matt your from is question next with with Our William question. proceed Pfau Blair. Please

it of that a strong you're and year that signing, Thanks. was you guys any year coming I customers the customers like with? to there questions, to new the landing ask brought new product where on great those my seemed Manhattan. net And you're taking particular in particularly majority of for Is terms Thanks quarter. this Great. those are customers wanted for from, typically?

Yes. the across Well, is Matt, there, product the great It's not news portfolio. particularly.

number two, it encouraging, that's the So number is sub-verticals. one. across And

I a and So spread the portfolio, pretty there it's product and sub-vertical of nice across listed customers principal the at versus new existing. some

of forth, as and further Now bubbling kind a with to drill side the they little you industrial surface, distribution and CPG, reenergize consumer or – we've house, quite the supply ready. you in not particularly bit certainly their verticals to if as on and been to maybe as need the strong a in kind you manufacturing that of direct so see years, of, over on, modernize particularly chains focus direct-to-consumer the

things space well. in OMS Similar as the are happening

direct see they traditionally either not retail selling channels. least direct-to-consumer direct-to-consumer companies at that to consumer being you selling ship As were or now ready as into

just growth, which not be some that nice So seen but in, where of speaks couple been very we've verticals addressable market really spots typically to is which nice. strong would we've those total certainly, not as a growth,

on Thanks. margin is show the that accelerating so operating actually transition, particularly the this and with that ex we think Great. plan or should XXXX, of what then, improvement year-over-year cloud people Is you the areas wage hundreds seems guidance add and you're follow XXXX. And And making, year? margin just next else year up perspective – impact then in of commentary. investment from expense an to it inflation then to in in like of about, that terms which you margin other Dennis, would the correct?

et performance. margin a we increase operating through across guided metrics expect we brain little And this perspective, key that all having – Look, year's definitely. the Yes, to From above year, would the here. XXXX – cramp cetera.

where customer-facing in for terms part, in will and people most customer our of where people professional the will in so – folks, Matt, generally the our organization. In investments services largely be those the organization be,

we actively to development investing Now are research this plan do more year. and and in

into some you'll move there. heads So see

always, the to That's which we've that well will talked to there. very as coverage think organization. opportunity very us. also to us sales continue important And great a driving It's customer important a are to is overall us effective we as we've not got and about team as marketing we a We've coverage area as [indiscernible] and adding before. our add Sales got organization. for our to known. quite awareness But efficient important another be keep we'll about base and for because members selective heads sales is solutions grows,

So people, again, customer-facing, R&D sales and marketing back but and on to summarize those well. principally as

Got questions. Thanks for my it. Appreciate it. taking

Okay. Thank you. you, See Matt.

question is your with Loop Schappel proceed Markets. Capital with Please from next Our Mark question.

for and taking Hi, thank questions you on my job nice the quarter.

Mark. you, Thank

Obviously, You if are welcome. could a little what provide very front. just I on additional few seeing Eddie, on way But the some there you encountering remarks on – macro was was results based from wondering commentary a very in guide, environment, prepared little with respect you're that to the commentary strong perspective? macro in headwinds. you're your and it appears

the our definitely we mean, feel wake we chop every when for there. of up us our Mark. We've the no and pipeline, making, target we question feel by visibility. out There's both Each about the demand look at our at I solutions, good innovation believe look chop. driven see are. there's the we about see, But solutions critical Look, got markets, that when that, of can we in nature the the to good we're resilience where obviously pretty growth investments pretty morning our and of

it good. for without without not its that to forward that feels headwinds, feels us, is so its But headwinds. pretty how motion sure. Not And is it

then And Great. just Okay. shifting gears to solution. point-of-sale your

would – sale. you like XX milestone very to for that XX pretty for significant last it expressed because you make user I significant achieving year's milestone just be think go-lives a pretty company next a it be it the conference, would was felt the would easy it

give where a you stand on of can that on you little if front? update an us wondering Just bit

Yes, yes.

first initial good a or target. we're of less Honestly, that not not not progress. So is But numbers me installations, a line finish our making you way at of we've I the lap all I I making out – a year, quite and XX XX the number. know specifically. by got certainly fall handful caught will met this should obviously, early from those but And little we listen, – couple got we're We're go-lives, good than we're milestone. sort the progress. there. mean – colder, We've think, of is that XQ. getting for up us round by of here it We're have first in QX, coming

were pretty fortunate our booth. two Conference enthusiastic of saw the were Retail Actually, and point-of-sale from enough Federation overall a pretty feels retailers where to a good. interest components. store third-party of also a coming point-of-sale, We again, National that. in booth had solutions, Cloud an well a only point-of-sale of presence came we big We the out perspective. all very demonstrating are. of momentum From lot the Google We own as we We vendor have and had off

customers. point-of-sale, bit mainly Okay. important the update I provide are that think Great. of after on us into new a the the building And international fiscalization again, an little Maybe product you go just then was to an capability there?

you're actually, on. so Yes, sure. Well, spot

They company, to a customers, you they of kind international oftentimes a have is what overseas. to want domestically single addition even point-of-sale solution. operations In headquartered sell when

there's we're fiscalization countries. knocking a integration agency the every countries. those a process, is and There's in design process well. individual a then process technical And We're down integration. government is There's technical frankly. And for certification there. each important them process. down, as a So with them a knocking There

Latin focus good has at honest legislative a pace And you you, principal progress. with But wave bodies. to because only certain with you're be dealing go as we're of APAC America, customers our X those been and fortunately making can just But The and both moving we're need us. on to as can as fast knocking off, them. them as Europe we to fast for

you. Great. Thank That’s me. all for

Thank you, Mark.

Our final with is question. Blair your Securities. Rosenblatt question Abernethy Please from with proceed

Thanks guys. quarter, for taking the Nice question.

to seeing that color place as product more with Just are displacing new curious the push in you give following aside a on what landscape I'm are typically these able you guess little us projects. you just if on solution? maybe And bidding your you're I the point-of-sale or – lines, you're what competitive for

mean competitive point-of-sale with solution, whether carry, industry right. there. competition Well, differentiation of with an hardware, years hardware-centric a years, point-of-sale not software-based to solution. now because space. our it obviously in move there's a industry literally available lot providing not is this the pushed not call kind out There cash-register-centric But the a be have aside. a want just real We're omnichannel Obviously, we've cash But being is it PCs. general, been or over legacy, solutions you if for is there – tablet solution pretty a yes a out seen look, new XXX that, from to and desktop commoditized of I

that's in So consumer involved, solution really is and touch and the again, where there shine. where or personalization is the around software. And transition any both level hardware disposition to are a we of able

this hey, squishier call retail the to out anyone than of Okay. I'm of of Great. – bit wondering terms the And there would in macro others? is key the say, a you is environment, just is just – your some little verticals,

to utilization capital No, which be they of customer, customers and you've available excellent And provide biggest think working things inventory of news function hand. have, the is piece able or reading, together, in – feeds. a got so, same the as we're to But you the to Again, those then got two be to service, our of on demand watching little the I bringing compete, articles inventory. customer to all have same frankly, provide maximum the bit order and a that, to close squishiness There's Blair. of don't everywhere.

we're is diverse the much our the fortunate the customers. – we're today, – frankly, frankly, you ago, across XX us. we And XX helpful were and losers base. thing customer and systems know, to yes, But that's to there's providing than So more winners it's maybe mission-critical or as years

Thanks Yes. for great. extra That's color. the

you. Thank

to have the question-and-answer session. the call of turn to now for We end comments. over Capel I'd the reached like closing Eddie

us join We Very call. good. always, appreciate about throughout support the time the path ahead. it's we since you appreciate Thank afternoon, you, our We're taking XXXX the this and with particularly Robert. Well, pleased as results. your as we're very to year, earnings again, year-end excited the

Thanks to lot. talking days so. a about So XX forward to in we or look everybody

This concludes conference. today's

this we lines thank your you time, participation. disconnect and for your may You at