Lachlan Brown's questions to MANHATTAN ASSOCIATES (MANH) leadership • Q3 2025
Question
Lachlan Brown asked about the feedback received from Manhattan Associates' Agentic AI early access program and the expected gross margin impact, specifically addressing potential dilution due to high compute costs. He also inquired about the proportion of new logos in the pipeline versus existing customer expansion, and the typical pipeline conversion time.
Answer
President and CEO Eric Clark confirmed the intention to preserve and expand margins with Agentic AI, not dilute them. He noted positive feedback from the early access program, particularly regarding the rapid deployment of standard agents (in minutes) and customers' interest in building custom agents. Mr. Clark clarified that new logos represent 35% of the new cloud pipeline, separate from renewals. He explained that renewals, conversions, and cross-sells have much quicker sales cycles than new logos, which typically involve multiple-quarter sales cycles, though automation aims to accelerate deployment and ROI.