Operator: Our next question is from Brian Peterson with Raymond James. Please proceed with your question.
Brian Peterson: Hi, gentlemen, thanks for taking the question and congrats on the results. So Eddie, I wanted to start on point-of-sale. So you guys have had some success there. I’d love to hear about maybe the ramp of that product and how we should think about that contributing to RPO or growth over the long term? And how excited are you in that portfolio and how they can ultimately fit in?
Eddie Capel: Yes. I mean, look, it’s a reiteration of me saying I’m very excited about where we are there. The objective is to get a 10 or a dozen live and referenceable customers by the end of the year because I think that’s when sort of the flywheel begins to start. And we’re certainly on track for that. In terms of the financial impact of point-of-sale on our financial results, frankly, it’s pretty minimal at the moment, which is frankly is great. Now, that’s a function of a solid performance across the rest of the product portfolio as well, but the opportunity for strong CAGR in that space is certainly there for us. And look, back to a little bit of same — about the same response to the previous question, the conversations about the road map for modern technology in the retail store are definitely ramping up, and I think continue to be more excited than ever about the opportunity that lies in front of us.
Brian Peterson: Understood. Maybe a follow-up to Terry’s question on cross-sell. How do you think about what was really strong this quarter? And as you guys build out the portfolio, the cross-sell motion changed a little bit, right? So I guess I’m just curious how that could evolve potentially over the next three to five years? Thanks guys.
Eddie Capel: Yes. It was good balance, Brian. There was nothing that really stood out. It was a nice balance across WMS, TMS and OMS, sort of typical ratios for us and across the geographies. So that was good to see. But I would — in terms of what the typical motion, if you think about which products might come first in the portfolio of implementations and so forth, it really depends. It depends on the customers’ needs. The vertical focus changes that dependency of need a little bit across the product suite. But again, for us, it’s not really that important which goes, first, because we’ve got a unified suite of solutions that could meet any road map needs. And we’ve — our cross-sell this quarter was — a little — a tick over 35% of our new bookings this quarter came from cross-sell. So again, pretty encouraging.
Brian Peterson: Big brands.
Eddie Capel: Yes, big brands.
Operator: Our next question is from Joe Vruwink with Baird. Please proceed with your question.
Joe Vruwink: Great. Hi, everyone. I guess I’ll start with the macro question. The general indications we’ve heard this year have been that larger enterprise customer is still very much forging ahead and thinking about what modernization needs to happen. And if there’s maybe any signs of stresses, it’s probably at the lower end of the market, which I imagine isn’t served by Manhattan to begin with. I guess, I’ll ask, any changes you’re seeing from a macro sense or even changes within any particular segment of the business?
Eddie Capel: No, not really, Joe. We’ve got — we’ve diversified more — obviously, more and more over the last few years. So less retail focus for us, although still a lot of work going on in retail, but a lot of manufacturers and wholesalers going direct-to-consumer. So that obviously is very important to us. In terms of where the slowness, where the softness might be, we haven’t seen it in any particular segment or, frankly, in any particular tier. There are winners and losers in every tier. Obviously, we’ve seen some of the larger and maybe not the largest, but some of the larger retailers pretty negatively impacted as well as some of the specialty guys. But if I have 35 – the other thing is, about 35% of our pipeline is coming from new logos, companies that we’ve never done business with before.
And a lot of those tend to be outside of our typical vertical focus. So look, we all see the macro challenges. We hear the headlines from the companies that are struggling. And — but we’ve seen no particular concentration across either our customer base, our geographies, or our verticals.
Joe Vruwink: Okay. Great. And then I guess I’ll ask a cross-sell question too, but maybe a bit open ended. How do you think this begins to change your model in a financial sense? So, do you think this maybe becomes a driver of higher services utilization, does new cloud revenue end up activating more quickly than in the past being tied to more of a long WMS rollout? And what might be a reasonable time frame when you think about this increasing share of bookings coming from cross-sell? When do some of these things maybe start to impact the revenue model as it’s reported?
Eddie Capel: You mean product cross-selling, Joe?
Joe Vruwink: Yes.
Eddie Capel: Well, we feel like we’re doing pretty good. As I mentioned, a little more than 35% of our new bookings this quarter came from cross-sell, okay? 25% of our new bookings came from brand new logos, okay? So obviously, the balance is from existing customers and buying more of what they’ve already got. So we look at that and feel like it’s pretty balanced, frankly. As you know, we’ve been in recent quarters, the past six, eight quarters, we’ve been as high as 50% of our new bookings coming from new logos. We’ve been as low as 25% from cross-sell. So it bounces around a little bit quarter-to-quarter, but that balance of cross-sell, increased sales of the same product to existing customers and new logos is pretty strong. And we don’t see that changing other than the variability quarter-by-quarter for the foreseeable future.
Joe Vruwink: Okay. Thank you very much.
Eddie Capel: Pleasure, Joe. Thank you.
Operator: Our next question is from Matt Pfau with William Blair. Please proceed with your question.
Matt Pfau: Nice results and thanks for taking my questions, guys. I just wanted to ask — yes, can you hear me?
Eddie Capel: Yes.
Matt Pfau: Okay. Hi, just wanted to ask, when you look at your business, what sort of tie is there to perhaps your new build out of warehouse or fulfillment space? And as the cost of capital has increased and some of these developers have pulled back a bit on their development of new space, does that have any impact on you? Is it more of conversion of existing warehouse space for you?
Eddie Capel: It’s mostly the conversion and modernization of existing space. You asked an interesting question. I don’t have the percentage off the top of my head to be perfectly honest with you. But it’s in the range of 10%, maybe even less of our implementations going into new buildings. So certainly, the preponderance of what we’re doing is sort of brandfield work, whether it be only the modernization of the software or the retrofit of a building with additional automation and software.
