Eddie Capel: Pleasure, Brian. Thank you.
Operator: Our next question is from Joe Vruwink with Baird. Please proceed.
Joe Vruwink: Hi great. Thanks for taking my questions. I wanted to start with the Shopify alliance, which sounds pretty interesting. You mentioned there’s some existing customer overlap. Can you maybe quantify that or where you see the most synergies in the customer base today? And then obviously, when you think about the global Shopify merchant count, that’s a massive number. I would imagine that’s not all addressable by kind of your enterprise-grade technology. But what sort of expansion in audience do you think this could ultimately mean for Manhattan?
Eddie Capel: Yes. So let’s see, great question. Look, this is driven probably a little more to be perfectly honest Joe with Shopify obviously has a fabulous history, a really great technology platform, and have been doing exceptionally well in. I hope they won’t be offended by this, but in the SMB space and have gradually been coming up the stack toward the enterprise where we play. So that’s why we’ve started to see a lot more sort of cross fertilization of prospects and customers as they come up into kind of the real enterprise class versus us going down so much into SMB. We’ve had that conversation many, many times about our focus on both Tier 1 and Tier 2. But we really do think the combination of our advanced technology and platform and Shopify’s advanced technology and platform can really deliver some substantial and very effective and efficient results for our customer base and so forth.
And one of the beauties and I mentioned this in my prepared remarks. Both they and we are very focused on essentially speed to value. They’ve become – they are experts at this for the smaller merchants and so forth. And we think together we can bring that fast, efficient, effective enablement up into the enterprise.
Joe Vruwink: Okay. That’s great. And then maybe one for you and Dennis. Just the maintenance revenues they have been exceeding plan still growing here in 4Q. Obviously appreciate the 2024 outlook and maybe the pace of attrition picking up. I’m wondering if you just have any updated thoughts on kind of the migration timeline and those existing on-prem customers. You mentioned at the beginning, what sort of duration might you expect for the majority to ultimately choose one of your cloud offerings?
Dennis Story: Yes. I mean, look, I’ve been saying it for a pretty long time. I think it’s a six to seven year run. Now, it would be fair of you to say, but Eddie, you said six to seven years at the beginning of the year, and now you’re saying six to seven years at the beginning of this year as well. Yes, it’s still in that range, Joe, would be my estimate to get through the bulk of the transitions. My guess is they’ll still be 5%, 10% at the end of that period of time. There’ll be sort of laggards and so forth, but it’s a six or seven year journey in my view.
Joe Vruwink: Okay, very good. I’ll leave it there. Thank you.
Dennis Story: I’m sorry. The one thing I’ll mention, just a reminder there, Joe. We essentially offer no incentives for either our customers or for our sales guys in a sales team to promote it. Our strategy is when the time is right, we’re there for you. So there’s no incentive and frankly, there’s no…
Joe Vruwink: Gun to the head.
Dennis Story: Gun to the head. Thank you. I was going to try and look for a better, nicer expression than that, but there’s no threats of lack of support or anything else.
Joe Vruwink: Yes. Okay, I understood. Thank you.
Dennis Story: Thank you, Joe.
Operator: Our next question is from Mark Schappel with Loop Capital Markets. Please proceed.
Mark Schappel: Thank you for taking my question and nice job on the quarter, guys. Eddie, with respect to your point-of-sale business, I was wondering if you could just highlight or point out some of the biggest opportunities you face and also some of the challenges you’re facing right now. So, for instance, are you facing challenge wise, are you facing more so in the marketing side or maybe in the product side?
Eddie Capel: Yes. Great question, Mark. So let’s start with the challenges, get those out of the way. I just think we’ve still got a little bit of an awareness challenge at this. We are beating the drums and telling neighbors, friends, and aunts and uncles as best as we possibly can about this world class solution that we have. Number one. Now at the National Retail Federation Show Conference, I should say a couple of weeks ago, and I mentioned in my prepared comments, we launched the next generation. So we still have got the most revolutionary cloud native point-of-sale in the industry. But we updated it yet again, next generation and launched it at NRF and very well received. So I think awareness is still kind of a challenge.
Now you and others have heard me talk about the goal by the end of the year was to have about 10 live customers. Well, we’ve got that. We’ve got about 10 because I think that sort of gets you over the hump in terms of, okay this is not a little early cycle product anymore. And the fact of the matter is we went through the holiday peak season here with 10 live customers, 30,000 store associates using our system. Every penny of revenue, if you think about the customers that run both Manhattan Active omni and point-of-sale, right, all of the wholesale business if they have it, their direct-to-consumer business is all running through Manhattan Active omni, all of their foot traffic revenue is running through point-of-sale. So every single penny of their revenue is running through the Manhattan solutions.
30,000 associates and right around 1,500 more now, but right around 1,500 stores live on point-of-sale through the peak season. And transaction volumes that are substantial, let’s just call it that and certainly exceed any other cloud-native point-of-sale system out there. So feel really good about kind of where we are with the product. We’ve noted, so a long answer here, but we noted some of the wins we’ve had against best-of-breed point-of-sale companies, head-to-head with no other solutions for Manhattan and no previous experience with Manhattan. So clearly, we can go head-to-head. And now, I mean, if there was ever any question about scalability and so forth, we sailed through Q4 with, again 30,000, 1,500 stores, very high transaction volume.
