Manhattan Associates Sees 23% On-Prem Cloud Migration and 1% FX Revenue Boost
Manhattan Associates reported Q1 cloud subscription revenue growth with a 1% FX tailwind and said 23% of on-prem customers have started or completed cloud migration, leaving significant upside. CEO Eric Clark expects 90-day paid pilots for Agentic autonomous agents to convert to subscriptions this year and drive scaling in 2027.
1. Q1 Cloud Subscription Growth
Manhattan Associates saw cloud subscription revenue expand in Q1 with a 1% FX tailwind, highlighting currency benefits alongside strong demand for its cloud offerings.
2. RPO and Deal Volume Performance
Investments in sales capacity drove higher remaining performance obligations, with major deals closing in Europe and APAC and a robust pipeline of new logos boosting deal volume.
3. On-Premise Migration Progress
Only 23% of on-premise customers have begun or completed migration to the cloud, underscoring a substantial untapped opportunity for future subscription revenue.
4. Agentic Pilots and Services Expansion
The company’s go-to-market strategy leverages 90-day paid pilots for Agentic autonomous agents that transition to subscriptions, with scaling expected in 2027 and support from 120 added forward-deployed engineers plus 70 open roles.