Oct 27, 2026 earnings call — Record bookings and cloud growth; additions launched
Raised full-year RPO outlook to 21% year-over-year growth.
Revenue $0.3B (est $0.3B) · EPS $1.55 (est $1.46)
Key quotes
"We launched Editions in Q3 to make our market leading technology available to a much wider array of customers."
"And while it remains early, we are maintaining our 100% conversion success from AI pilot to AI subscription."
"With all that said and acknowledging the volatile macro environment, given our strong year to date performance and solid pipeline, we are increasing our RPO outlook to 21% year-over-year growth."
Analyst Q&A 8
AI revenue showing up in results
Q (Terry Tillman · Truist): He asked how AI agent uptake is starting to appear in revenue and whether it is material now and into Q4. He also asked what informed the higher full-year RPO and the Q4 RPO add.
A: Management said they will not break out revenue by product on a quarterly basis but confirmed AI contributed to results this quarter. They will provide more color on AI when discussing 2027 on the Q4 call. They also said they have a strong Q4 pipeline and updated RPO because it was clear they would exceed the prior range.
"AI did definitely contribute to our results this quarter." — Linda C. Pinne
Renewals drivers and Essentials customer
Q (George Michael Kurosawa · Citi): He asked what underlies renewals trending ahead of expectations — cross-sell, attach rates, pricing, or the renewals team — and how much the renewals team contributed. He also asked for detail on the customer that bought the Essentials edition and whether that motion is repeatable.
A: Management said it is all of those things: cross-sells, upsells, pricing, and the dedicated renewals team and structure have helped drive better renewals. They said several Q3 examples were multiproduct deals and adding at renewal. For the Essentials customer, management said Essentials targets smaller customers who previously thought they could not afford Manhattan; that customer moved quickly after additions were announced.
"We thought, you know, Enterprise Edition would be a good fit for our scale customers and Essentials was really created for the customers that are not quite even at that level." — Eric Clark (CEO)
Why Q3 beat seasonality; RPO outlook
Q (Brian Peterson · Raymond James): He asked which factors most reduced Q3 seasonality and drove stronger deal volume. He also asked how to think about the next 24-month RPO ~40% given faster implementations and lower-price products.
A: Management said Q3 remains seasonally tougher, but increased deal volume across all regions and disciplined sales execution drove results. They declined to give formal guidance on the percentage but said with deal length around 5 to 6 years, probably closer to 5, the 40% ballpark is reasonable and rising deal volume is also a driver.
"But if we think about it logically, as we mentioned, our deal length was around 5 to 6 years, probably closer to 5." — Linda C. Pinne
Migrations, cadence, and AI-driven upsells
Q (Joseph Vruwink · Baird): He asked whether the migration pipeline is changing seasonality and how much migrations represented of bookings this quarter. He also asked if recent product/tiering changes caused higher migration activity. He then asked if upsells reflect sites going live faster and whether AI helps deployments.
A: Management said migration conversions, fixed-fee conversions, additions, and a maturing partner ecosystem all increase activity and pipeline but were not the sole reason for beating Q3 seasonality. They said over time additions will unlock more migration opportunities and that mix is trending toward roughly thirds of new logos, conversions, and expansion, with new logos still largest year-to-date. On upsells, they confirmed faster deployments lead to faster ROI and faster subscription ramp, and they said AI is a key enabler in that deployment cycle.
"As we deploy faster, people are getting the ROI faster, but they are also getting into higher tiers and ramping their subscriptions faster." — Eric Clark (CEO)
Sustainability of cloud acceleration; additions timing
Q (Morgan Stanley): She asked how much of the cloud outperformance is structural (faster implementations, bookings) and how sustainable those benefits are into fiscal 2027 and beyond. She also asked when additions momentum will show in cloud revenue versus RPO and what the TAM is for Editions.
A: Management said about half of the quarter's beat was tied to upsells, driven by more customers and faster deployments, but they typically take a conservative view and do not include significant upsells in guidance because timing varies. They said additions will take time to build — expect some wins in Q4 and Q1 but look to the second half to have material impact.
"So that is a big part of the outperformance." — Linda C. Pinne
Agents skipping pilots; partner activity
Q (Dylan Becker · William Blair): He asked whether explicit ROI from agents is causing customers to skip pilots and go straight to subscription and what the implications are for deal sizes. He also asked what partners are doing to support growth.
A: Management said they have seen more customers skip pilot phases since Q2 and go straight to subscription, though they still perform training and many pilot steps during onboarding. They said this has been effective at growing the AI business. They also said partners are leaning in and investing in hiring and training, with a rapid pace of customer engagement and more activity from partners.
"So we have got a meaningful number of customers that have skipped the pilot phase and gone straight to subscription." — Eric Clark (CEO)
Product momentum and services progress
Q (Mark Schappel · Loop): He asked how bookings and pipeline conversion compare across WMS, TMS, and OMS solutions. He also asked how services friction has evolved — implementation times, satisfaction, and project ramps.
A: Management said they have strong momentum across all products with quarter-to-quarter variation, and additions have increased cross-product opportunity and expanded the pipeline. On services, they said they continue to do services projects faster than a year ago while doing more of them, revenue is growing, and they see a healthy pipeline that supports continued low single-digit services revenue growth.
"So 1 of the things that we have been saying for the past few quarters and it continues to be true is we continue to do services projects faster than we did them a year ago." — Eric Clark (CEO)
Renewal terms and conversion drivers
Q (Lachlan Brown · Rothschild): He asked whether customers are shortening renewal terms and for color on execution. He also asked what percent of new cloud bookings were conversions this quarter and which driver (fixed price, AI agents, partner channel, additions) is moving on-prem customers most.
A: Management said they had discussed starting renewal conversations at 3 years but the bulk of renewals remain 5 years and customers often prefer that duration for price protection. They did not provide the percent of cloud conversions as part of their answer. For drivers, they said the fixed-price conversion conversation is currently moving the needle most, and additions open more doors and can accelerate timelines.
"But I mentioned last quarter, and it is still true this quarter, the bulk of our renewals continue to be 5 years." — Eric Clark (CEO)