Mark Schappel

Mark Schappel asked Eric Clark about the current CIO sentiment regarding greenlighting large WMS and TMS conversion projects and how this sentiment has evolved over the past 6 to 9 months. He also inquired about the sales motion mix in Q4, specifically the balance between new logos, conversions, and cross-sells, and its expected evolution in the coming year.

Answer

President and CEO Eric Clark stated that CIO sentiment has remained stable over the past 6-9 months, with a continued focus on speed, simplicity, and faster ROI from WMS/TMS projects, supported by a healthy pipeline and strong win rates. He noted that 2025 saw 55% of bookings from new logos, deviating from the long-term 'rule of thirds' (1/3 new logo, 1/3 expansion, 1/3 conversion), but expects the rule of thirds to return over a longer period, with significant opportunities across all categories.

Mark Schappel asked about the current CIO sentiment regarding greenlighting large WMS and TMS conversion projects and how this sentiment has evolved over the past 6 to 9 months. He also inquired about the mix of new logos, conversions, and cross-sells in the sales motion for the quarter and its expected evolution in the coming year.

Answer

President and CEO Eric Clark stated that CIO sentiment hasn't drastically changed, with customers focused on achieving efficiency, cost savings, and ROI from their programs, which Manhattan's software uniquely supports, leading to strong win rates. He noted that while 2025 saw 55% of new cloud bookings from new logos, the long-term expectation is a "rule of thirds" mix: one-third new logo, one-third expansion, and one-third conversion, with significant opportunities across all categories.

Mark Schappel asked for an update on Manhattan Associates' relatively new Supply Chain Planning application, including its reference customers and goals for the product by the end of 2026. He also inquired about any challenges or the current status of the Point of Sale (POS) business.

Answer

President and CEO Eric Clark reported that Supply Chain Planning is ahead of schedule in terms of customers and pipeline, serving as a natural add-on for existing WMS/TMS users and an encouraging entry point for new Manhattan customers. He expressed satisfaction with its growth trajectory without setting a specific 2026 target. For Point of Sale, Mr. Clark highlighted it as an exciting area, with transactions up over 80% year-over-year in Q3 due to store growth and increased usage, anticipating a strong Q4 retail season.

Mark Schappel asked for an update on Manhattan Associates' relatively new Supply Chain Planning application, including its reference customers and goals for 2026. He also inquired about any challenges faced in the Point of Sale (POS) business.

Answer

President and CEO Eric Clark stated that the Supply Chain Planning product is ahead of schedule in terms of customers and pipeline, serving as both a strong unification play for existing customers and an entry point for new logos. He expressed satisfaction with its growth trajectory. Regarding POS, Mr. Clark highlighted it as an exciting area, with transactions up over 80% year-over-year in Q3 due to new store additions, increased transactions, and broader product placement, indicating strong growth alongside retail customers.

Mark Schappel of Loop Capital Markets asked about CIO sentiment on large WMS/TMS projects post-'Liberation Day' and inquired about upcoming plans for marketing and market awareness.

Answer

President & CEO Eric Clark responded that recent market events have reinforced the mission-critical nature of supply chain, and forward-leaning companies continue to invest, though some may adjust rollout timelines. On marketing, Clark stated the company is in a period of change and is actively searching for a Chief Marketing Officer to enhance its market presence, with more updates expected in the next quarter.

Mark Schappel asked about the strength of the large deal pipeline compared to a year ago and the company's confidence in closure rates. He also requested more details on the significant omnichannel deal won in the quarter.

Answer

Executive Vice Chairman Eddie Capel described the deal pipeline as 'favorable' and growing, with the large deal component proportionally similar to last year. On the omnichannel win, he noted it was with a luxury department store for both omnichannel and point-of-sale, a key strategic win. The sales cycle was over a year, and they competed against all major players.

Mark Schappel of Loop Capital Markets asked about the current sentiment from CIOs regarding large WMS or TMS upgrades and whether these projects are being crowded out by other priorities. He also requested more color on the first customer win for the new supply chain planning solution.

Answer

CEO Eddie Capel observed that the tone from customers at the NRF conference in January 2025 was 'much more enthusiastic' than 12 months prior. He expressed excitement about signing the first Manhattan Active Supply Chain Planning customer just 65 days after launch, well ahead of the initial mid-2025 expectation, viewing it as a sign of strong market enthusiasm for a unified planning and execution platform.

Mark Schappel asked about the Point-of-Sale business, specifically if any deals were closed in Q3. He also requested a breakdown of the quarter's sales balance between cross-sells and conversions, given that new logos were 14%.

Answer

CEO Eddie Capel confirmed there were no Point-of-Sale deals in Q3 but highlighted that one had already closed in early Q4 and that the near-term pipeline is encouraging. He then provided the sales breakdown for the quarter: new logos were 14%, cross-sells were just over 20%, and conversions from existing customers were high at approximately 60%.

Mark Schappel requested a repetition of Amy Butte's comments regarding the slowdown observed before Thanksgiving.

Answer

Amy Butte (CFO) clarified that October was a record month with no slowdown. She noted a four-day slowdown around November 11th due to FAA flight restrictions, but activity rebounded as anticipated in December after the planned Thanksgiving week slowdown.

Mark Schappel asked CFO Amy Butte to reiterate her comments regarding the slowdown observed before Thanksgiving.

Answer

CFO Amy Butte clarified that October was a record month with no slowdown. A minor four-day slowdown occurred around November 11th due to FAA flight restrictions, but activity rebounded as anticipated in December after the planned Thanksgiving week slowdown.

Mark Schappel asked for additional color and details on how Paige AI complements and provides synergies to Tempus AI's genomic diagnostics business, specifically how digital pathology enhances sequencing.

Answer

Eric Lefkofsky (CEO, Tempus AI) explained that Paige AI's digital pathology algorithms can enhance sequencing by providing results when NGS fails (QNS or insufficient material) or by quickly predicting common mutations (e.g., EGFR in NSCLC) for critical cases. He emphasized a multimodal approach to generate high-quality, data-driven insights rapidly, aiming to be equally proficient in molecular, digitized pathology, and imaging data.

Mark Schappel asked for additional details on how the Paige.AI acquisition complements and provides synergies to Tempus AI's genomic diagnostics business, beyond its AI pathology applications.

Answer

CEO Eric Lefkofsky explained that Paige.AI will significantly enhance sequencing. For instance, when sequencing fails due to insufficient material or QNS results, Paige.AI's digital pathology algorithms can predict common mutations, allowing Tempus AI to return results to physicians even when NGS is unsuccessful. Additionally, the integration will enable rapid predictions for critical results, such as EGFR mutations in non-small cell lung cancer, within one to two days. He emphasized Tempus AI's multimodal approach to data, aiming to be equally proficient in molecular, digitized pathology, and imaging data to provide comprehensive, fast, data-driven insights.

Mark Schappel asked for additional details on the acquisition of Deep 6, specifically questioning what capabilities the company brings that Tempus did not already possess.

Answer

CEO Eric Lefkofsky explained that the Deep 6 acquisition aligns with their strategy to focus on smaller acquisitions on the Data and services side. He detailed that Deep 6 enhances Tempus's ability to connect to high-quality institutions and pull rich clinical data, which is core to building its large-scale multimodal data sets. The acquisition adds more connectivity, helping to grow the total patient data set and strengthening the bidirectional data feed with providers.

Mark Schappel inquired about the integration of Pega GenAI Blueprint's legacy application analysis capabilities into production and whether the legacy transformation opportunity is tracking to or outperforming its projected ACV growth contribution.

Answer

Alan Trefler, Founder and CEO, confirmed that Blueprint is integral to every new implementation in the last six months, with many already in production, clarifying that Blueprint is a design environment while the Pega workflow engine runs in production. Ken Stillwell, COO and CFO, stated that any acceleration over guidance would be largely tied to Pega GenAI Blueprint and legacy transformation opportunities, as most of Pega's work involves digital legacy transformation or IT modernization.

Mark Schappel with Loop Capital Markets questioned whether customers are integrating the AI agents for legacy app analysis and workflow design into production today, or if they are still in planning stages. He also asked if the legacy transformation opportunity is tracking to or outperforming the expected one point of ACV growth for the year.

Answer

Alan Trefler, Founder and CEO, confirmed that Blueprint is responsible for all new implementations in the last six months, with many already in production, emphasizing that Blueprint enhances the design environment, while the robust workflow engine runs in production. Ken Stillwell, COO and CFO, stated that any acceleration in ACV growth beyond guidance would be largely tied to Blueprint and legacy transformation opportunities, indicating potential outperformance.

Mark Schappel asked about the competitive landscape for Pega Blueprint and whether the strategic agreement with AWS could be replicated with other hyperscalers.

Answer

Founder & CEO Alan Trefler explained that Blueprint has no direct competitor but competes against 'other ways of doing things,' citing platforms from Salesforce and ServiceNow as examples. He emphasized Pega's unique agentic architecture as a key differentiator. COO & CFO Kenneth Stillwell confirmed that it was 'more than fair to assume' they would pursue similar partnerships with other hyperscalers.

Mark Schappel asked to what extent the quarterly upside was driven by sales force changes versus new products like Blueprint, and also inquired about the future mix between ACV growth and free cash flow for the Rule of 40 target.

Answer

CFO Kenneth Stillwell said both sales changes and Blueprint were equally impactful, leading to better execution and easier value demonstration. CEO Alan Trefler added that growth was broad-based, not reliant on 'whale' deals. On the Rule of 40, Stillwell stated they believe they can accelerate growth while expanding free cash flow margins, remaining committed to the free cash flow trend.

Mark Schappel questioned why Pega Cloud gross margins are expected to be flat in the coming year despite scaling, and asked if any specific patterns are emerging in how customers are using Pega GenAI Blueprint in production.

Answer

CFO Kenneth Stillwell explained that margins may be flat because the company might make specific investments in technical migration services to accelerate the pace of client transitions to the cloud, with these costs offsetting natural scale efficiencies. CEO Alan Trefler identified the key emerging pattern for Blueprint is its use for 'rethink and replace' legacy transformation projects, a significant shift from the historical 'wrap and renew' approach.

Mark Schappel asked to what extent the recent business momentum is attributable to the overall demand environment versus the internal go-to-market changes made last year. He also inquired about the federal business performance and the impact of the new FedRAMP High certification.

Answer

CFO Kenneth Stillwell attributed the momentum primarily to two internal factors: the company's sales transformation and the positive resolution of the legal appeal, stating the market demand environment is largely unchanged. CEO Alan Trefler added that the product portfolio itself is more appealing. Regarding the federal sector, Stillwell noted it was not an outsized contributor to Q3 growth and that the FedRAMP High certification has not yet impacted business, as it requires time to build a pipeline.

Mark Schappel asked how Samsara has adapted its selling process to accommodate its meaningfully increased product portfolio. He also inquired about the hiring that took place in the quarter and the outlook for headcount additions for the balance of the year.

Answer

Sanjit Biswas (CEO) explained that the sales process focuses on platform value and understanding customer operations, typically leading with telematics and safety, then demonstrating the breadth of offerings through demos, allowing customers to self-select based on their real-world problems. Dominic Phillips (CFO) stated that Samsara is on track with its plan to add headcount at a lower rate than the previous two elevated years, with continued additions expected in the second half of the year.

Mark Schappel of Loop Capital Markets asked for a comparison of the European market to the U.S. regarding the adoption of technologies like video-based safety and next-gen telematics. He also inquired about the competitive landscape in Europe.

Answer

Co-Founder and CEO Sanjit Biswas described the European market as uneven, with the UK and Ireland being more mature and similar to the U.S. in video safety adoption, while continental markets like France and Germany are newer for Samsara. He noted that competitors in Europe tend to be more regionally focused. Chief Financial Officer Dominic Phillips added that success there is the result of years of investment and landing key lighthouse customers.

Mark Schappel asked for perspective on how potential state-level initiatives focused on efficiency and optimization might affect Samsara's public sector business.

Answer

Chief Executive Officer Sanjit Biswas explained that Samsara's platform is inherently designed to enable efficiency, asset utilization, and performance management, which directly helps public departments save money. He noted that this value proposition is already driving momentum in the public sector, even without specific formal government efforts.

Mark Schappel asked about the uptake rates for the Connected Workflows and Connected Forms products and requested examples of unique use cases.

Answer

CEO Sanjit Biswas stated that uptake for these newer products has been good as customers seek to digitize paper-based processes. He highlighted a new AI-powered use case, Visual Intelligence, which allows users to take a photo of a form to automatically populate a workflow or photograph a job site to identify potential risks, noting strong positive feedback from beta testers.

Mark Schappel of Loop Capital Markets LLC inquired about CS DISCO's go-to-market execution, specifically asking about progress in hiring enterprise-focused sales reps and the recent changes made to the lead generation team's strategy.

Answer

CEO Eric Friedrichsen detailed the progress, including hiring a new CSO and experienced enterprise sales reps, and implementing a strategic account management program. He explained the lead generation team has shifted from simple meeting-setting to a strategic 'account orchestration' model, where they act as a quarterback coordinating efforts between marketing, sales, and customer success to expand wallet share in key accounts.

Mark Schappel inquired about potential expense levers DISCO could use to mitigate losses in an economic downturn and asked about the primary channels for new customer acquisition under the rebuilt go-to-market strategy.

Answer

CEO Eric Friedrichsen noted that litigation can be counter-cyclical but stated the company is making necessary investments in areas like sales enablement and customer success to drive long-term, sustainable growth. He explained that while they could reduce costs, the focus is on capturing the market opportunity. For customer acquisition, he highlighted a shift to an account-based marketing approach involving events and thought leadership, but emphasized the primary focus is expanding wallet share within their existing customer base.

Mark Schappel asked for a breakdown of Disco's key investment priorities for the upcoming year.

Answer

CEO Eric Friedrichsen detailed a clear focus on investing in growth by targeting an ideal customer profile. He explained that go-to-market investments include shifting resources to enterprise sellers, implementing an account-based marketing strategy, and realigning sales and customer success roles to have sales focus on growth and customer success focus on retention. On the product side, he stated investments are being doubled down on core eDiscovery and the Cecilia generative AI product suite.

Mark Schappel requested more detail on go-to-market changes beyond the recent leadership hires and asked for an expansion on the company's increased involvement in longer-term opportunities.

Answer

CEO Eric Friedrichsen explained that go-to-market changes include assigning more experienced sales and development resources to large accounts and implementing an account-based marketing model. He noted the company is now "getting invited to the table" for larger, longer-term deals because it is doing a better job of educating existing and potential large customers about its full platform capabilities and its proven experience with complex, multi-terabyte matters.

Mark Schappel of Loop Capital Markets LLC requested additional details on the recently announced acquisition of Emergency Networking, including its size, focus, and profitability.

Answer

President & CEO Lynn Moore described Emergency Networking as a small, cloud-native provider of fire records and EMS reporting software that was acquired via a 'partner to acquire' model. He highlighted its compliance with new NEARS standards and a recent statewide win in Pennsylvania as key strengths. The company has several million in revenue and is around breakeven, with its impact included in the updated guidance.

Mark Schappel asked for examples of public sector use cases for the recently acquired priority-based budgeting solution from ResourceX, which had a strong start.

Answer

CEO H. Moore explained that the solution uses AI to help governments analyze program costs and align spending with strategic priorities, enabling them to reallocate funds more efficiently. He cited recent wins with large clients like L.A. County and Kansas City as proof of its value and noted it is a perfect example of a successful tuck-in acquisition that directly addresses the push for government efficiency.

Mark Schappel asked about the specific characteristics and methods Tyler is using to encourage customers on older product versions to migrate to the latest cloud-ready releases.

Answer

CEO Lynn Moore and CFO Brian Miller described a multi-pronged strategy. This includes a 'carrot' approach, such as offering new features exclusively in the cloud and highlighting support benefits. It also includes a 'stick' approach, where they formally sunset older, unsupported versions after providing ample notice, which effectively compels clients to upgrade to a current, supported version.

Mark Schappel from Loop Capital Markets inquired about the demand environment specifically in Europe and whether the competitive landscape differs from other regions.

Answer

CEO Tom Shea, referencing a recent trip to Europe, stated that the competitive mix has not significantly changed. He noted a strong, common theme of modernization across regions due to market turbulence and said that recent foundational deal wins are signaling OneStream's market potential. He also mentioned plans to tailor offerings like CPM Express for regional needs.

Mark Schappel of Loop Capital Markets inquired about the attach rate for the Sensible Machine Learning (SML) solution and whether it was increasing.

Answer

Co-Founder and CEO Tom Shea did not provide a specific attach rate but expressed that he was pleased with the product's progression and market validation in 2024. He described SML as a transformative product that he believes every customer will eventually use. He reiterated that the company's fanatical focus on gross retention is key, as it provides the long-term opportunity to upsell advanced AI products to a delighted customer base.

Mark Schappel of Loop Capital Markets asked for an update on CPM Express, inquiring about the near-term opportunity and the state of the pipeline for this relatively new offering aimed at the commercial segment.

Answer

CEO Tom Shea expressed strong enthusiasm for CPM Express, noting it is currently in a 'market fit testing' phase with several customers. He emphasized that it is a configuration of the core product, not a separate codebase, providing an efficient on-ramp for mid-market companies. While still in 'very early days,' the focus is on ramping the offering over the coming year.

Mark Schappel asked for additional details on customer conversations regarding global trade capabilities amid tariff volatility and whether these discussions are creating broader digital transformation opportunities. He also inquired about the current demand environment for the trucking and freight side of the business.

Answer

CEO Andrew Appel described the current tariff situation as a 'moment of truth' where E2open proves its value by helping clients navigate complexity, which he believes will solidify its market leadership and create future opportunities. He noted clients are currently focused on execution rather than new features. CCO Greg Randolph added that the demand environment for road and ocean transportation has been stable with no significant recent shifts.

Asked for details on customer conversations regarding global trade capabilities and the current demand environment for the trucking and freight side of the business.

Answer

Andrew Appel described the current tariff situation as a 'moment of truth' to prove their value, with clients focused on immediate customs processing, which should lead to broader strategic discussions later. Gregory Randolph stated that the freight and trucking demand environment has been stable.

Inquired about the trend in sales cycles for large deals, the status of previously slipped deals, and the demand trends for the company's transportation management solutions in light of a potential recovery in the trucking market.

Answer

Sales cycles for large deals have lengthened but are stable and not getting longer. The company has a very high close rate on previously slipped deals. Regarding transportation solutions, the company is seeing a stabilization and return to growth in its volume-based revenue and increased demand for its TMS offerings as the trucking market shows signs of bottoming out.

Mark Schappel asked if sales cycles for large deals were continuing to lengthen, inquired about the status of deals that slipped from the prior quarter, and asked about demand trends in the TMS business.

Answer

CEO Andrew Appel stated that while sales cycles for large deals had lengthened previously, they have now stabilized and are not getting longer. He also confirmed that the close rate for slipped deals is very high. CCO Greg Randolph and Appel added that they are seeing stabilization and renewed demand for their TMS and logistics solutions as the trucking market bottoms and clients seek optimization amid price volatility.

Mark Schappel requested more color on deal delays, asking if weakness was concentrated in specific verticals or product categories. He also asked for views on recent M&A in the supply chain space and the potential for E2open to benefit from disruption at competitors.

Answer

Chief Commercial Officer Greg Randolph responded that they are not seeing patterns in deal delays by industry or product, attributing them to elongated evaluation cycles for strategic projects. CEO Andrew Appel added that the company's ongoing strategic review has also caused some clients to pause. Regarding M&A, Appel viewed the specific deals mentioned as involving distant competitors but noted that such activity validates the market's strategic importance and that ownership changes at rivals can create opportunities for E2open.

Mark Schappel of Loop Capital Markets asked what leading economic indicators management is monitoring with respect to the business. He also inquired if they are seeing any slowdown in ERP and WMS projects within their supplier community due to recent uncertainties.

Answer

Executive Chad Collins identified the community enablement pipeline and supplier retention as key leading indicators. He noted that economic pressure typically appears first in the more discretionary analytics business. He also stated that while they are not yet seeing any slowdown in customer ERP or WMS projects, it is something they are monitoring closely as a potential headwind.

Mark Schappel asked about the key investment priorities for the upcoming year and sought commentary on the analytics segment's growth, which moderated to 8% from 10% in prior years.

Answer

Executive Chad Collins identified key investment priorities as ensuring network scale and resiliency, properly integrating recent acquisitions to enable long-term cross-selling, and aligning sales and marketing with the global market opportunity. Executive Kimberly Nelson explained that the analytics product is more sensitive to the retail macro environment and that expectations for 2025 are similar to the performance seen in 2024.

Mark Schappel noted that analytics growth has settled in the mid-single-digit range and asked if this is the new normal or if a return to double-digit growth is expected.

Answer

Executive Chad Collins acknowledged the recent 6% growth but stated they expect high single-digit growth for the full year and a return to double-digit growth in the mid-term. He explained that analytics is more discretionary and less universally addressable than fulfillment, making it more susceptible to customer cost pressures, which can impact its growth rate in the short term.

Mark Schappel asked about parts of the business that were less strong during the quarter and inquired about the current pricing environment.

Answer

CEO Ed Ryan stated that no areas were notably weak, though general shipment processing was slightly slower but offset by strength in areas like MacroPoint. He added that they are not seeing pricing pressure, as customers are currently more focused on acquiring technology to solve complex tariff and supply chain issues rather than negotiating on price.

Mark Schappel of Loop Capital Markets asked about areas of the business that were less strong during the quarter and inquired about the current pricing environment.

Answer

CEO Ed Ryan responded that there were no areas he would characterize as weak, although shipment processing was slightly slower than normal, a trend offset by strength in other areas like MacroPoint. On pricing, he stated that Descartes is not seeing increased pressure for concessions, as customers are currently more focused on acquiring technology to solve complex tariff and supply chain challenges rather than negotiating on price.

Mark Schappel asked about Expensify's key investment priorities for the upcoming year and how customer churn trended during the quarter.

Answer

CEO David Barrett outlined that the top investment priority is polishing the product and aligning the go-to-market strategy for the F1 movie release in the summer, which involves significant testing and QA. Regarding churn, both CEO David Barrett and Executive Ryan Schaffer noted that the trend is stable, paid member counts increased, and that investments in account management are yielding positive effects.

Mark Schappel asked for more detail on the sales strategy for specialty medical, specifically whether the plan is to go deeper into current subsegments or expand into new ones. He also inquired about the monetization plan for AI products like Assistant and Call Intelligence.

Answer

CEO Brett White explained that the specialty medical strategy involves identifying verticals with strong product-market fit, building the necessary integrations, and then tailoring the go-to-market motion for those specific verticals. On AI monetization, he stated that features like Call Intelligence are sold as an upsell or included in higher-tier bundles. This strategy is successfully driving new customers toward higher-priced packages, thereby increasing average selling prices (ASPs).

Asked about recent changes in the overall demand environment, the business climate in Europe, and whether the strength in the aerospace sector continued through the fourth quarter.

Answer

The company has seen increased strength in its sales pipeline over the last 90 days. Demand in Europe is generally very strong. The aerospace market remains a strong vertical, benefiting from the new organizational structure, and there is also a renewed emphasis on the defense sector.

Asked for confirmation on whether 2023 is still viewed as a transition year setting up for a stronger 2024, and requested more detail on the cross-selling of data analytics, specifically regarding uptake in particular industries or geographies.

Answer

The CEO confirmed his optimism for 2024, driven by product innovation and strong customer engagement, which he believes will allow Altair to outpace competition despite macro challenges. He stated that the uptake for data analytics is 'super broad-based' across industries and is even creating new opportunities with HPC customers who were not previously using their simulation tools.

Asked for details on the slipped renewal and the company's confidence in its Q3 closing. Also inquired about the industry focus of the commercial agreement with Emerson.

Answer

The company declined to provide specifics on the slipped deal for confidentiality but is confident it will close in Q3. The Emerson partnership is intentionally focused on specific areas like pharma and other non-traditional industries to maximize success.