MANH Manhattan Associates Inc

RPO Bookings Increase 25% over Prior Year on Strong Demand

Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $255.8 million for the fourth quarter ended December 31, 2024. GAAP diluted earnings per share for Q4 2024 was $0.77 compared to $0.78 in Q4 2023. Non-GAAP adjusted diluted earnings per share for Q4 2024 was $1.17 compared to $1.03 in Q4 2023.

“Manhattan ended the year strong, posting record bookings that exceeded our expectations,” said Manhattan Associates president and CEO Eddie Capel. “In 2024, we surpassed the one billion in total revenue milestone and extended our position as the leading innovator in supply chain and omnichannel retail end-markets.

“We enter 2025 excited about our growing market opportunity and are executing well on our business strategy. While we remain appropriately cautious on the turbulent macro environment, our business momentum is solid, and our team is devoted to our customers’ success,” Mr. Capel concluded.

FOURTH QUARTER 2024 FINANCIAL SUMMARY:

• Consolidated total revenue was $255.8 million for Q4 2024, compared to $238.3 million for Q4 2023.
  • Cloud subscription revenue was $90.3 million for Q4 2024, compared to $71.4 million for Q4 2023.
  • License revenue was $5.5 million for Q4 2024, compared to $5.2 million for Q4 2023.
  • Services revenue was $119.5 million for Q4 2024, compared to $119.1 million for Q4 2023.
• GAAP diluted earnings per share was $0.77 for Q4 2024, compared to $0.78 for Q4 2023.
• Adjusted diluted earnings per share, a non-GAAP measure, was $1.17 for Q4 2024, compared to $1.03 for Q4 2023.
• GAAP operating income was $60.7 million for Q4 2024, compared to $58.9 million for Q4 2023.
• Adjusted operating income, a non-GAAP measure, was $90.3 million for Q4 2024, compared to $76.8 million for Q4 2023.
• Cash flow from operations was $104.7 million for Q4 2024, compared to $88.4 million for Q4 2023. Days Sales Outstanding was 74 days at December 31, 2024, compared to 69 days at September 30, 2024.
• Cash totaled $266.2 million at December 31, 2024, compared to $215.0 million at September 30, 2024.
• During the three months ended December 31, 2024, the Company repurchased 155,444 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $43.5 million. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.

FULL YEAR 2024 FINANCIAL SUMMARY:

• Consolidated total revenue for the twelve months ended December 31, 2024, was $1,042.4 million, compared to $928.7 million for the twelve months ended December 31, 2023.
  • Cloud subscription revenue was $337.2 million for the twelve months ended December 31, 2024, compared to $254.6 million for the twelve months ended December 31, 2023.
  • License revenue was $15.1 million for the twelve months ended December 31, 2024, compared to $18.2 million for the twelve months ended December 31, 2023.
  • Services revenue was $525.5 million for the twelve months ended December 31, 2024, compared to $487.9 million for the twelve months ended December 31, 2023.
• GAAP diluted earnings per share for the twelve months ended December 31, 2024, was $3.51, compared to $2.82 for the twelve months ended December 31, 2023.
• Adjusted diluted earnings per share, a non-GAAP measure, was $4.72 for the twelve months ended December 31, 2024, compared to $3.74 for the twelve months ended December 31, 2023.
• GAAP operating income was $261.6 million for the twelve months ended December 31, 2024, compared to $209.9 million for the twelve months ended December 31, 2023.
• Adjusted operating income, a non-GAAP measure, was $361.8 million for the twelve months ended December 31, 2024, compared to $281.5 million for the twelve months ended December 31, 2023.
• Cash flow from operations was $295.0 million for the twelve months ended December 31, 2024, compared to $246.2 million for the twelve months ended December 31, 2023.
• During the twelve months ended December 31, 2024, the Company repurchased 986,555 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $241.6 million. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.

2025 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2025:

 

 

 

 

 

Guidance Range - 2025 Full Year

 

 

($'s in millions, except operating margin and EPS)

$ Range

 

% Growth Range

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$1,060

 

$1,070

 

2%

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin:

 

 

 

 

 

 

 

 

 

GAAP operating margin

22.3%

 

22.9%

 

 

 

 

 

 

Equity-based compensation

9.5%

 

9.4%

 

 

 

 

 

 

Unusual health insurance claim(3)

1.0%

 

1.0%

 

 

 

 

 

 

Restructuring expense(4)

0.2%

 

0.2%

 

 

 

 

 

 

Adjusted operating margin(1)

33.0%

 

33.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (EPS):

 

 

 

 

 

 

 

 

 

GAAP EPS

$3.05

 

$3.15

 

-13%

 

-10%

 

 

Equity-based compensation

1.37

 

1.37

 

 

 

 

 

 

Excess tax benefit on stock vesting(2)

(0.12)

 

(0.12)

 

 

 

 

 

 

Unusual health insurance claim(3)

0.12

 

0.12

 

 

 

 

 

 

Restructuring expense(4)

0.03

 

0.03

 

 

 

 

 

 

Adjusted EPS(1)

$4.45

 

$4.55

 

-6%

 

-4%

 

 

 

 

 

 

 

 

 

 

 

 

(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based compensation, expense related to an unusual health insurance claim, restructuring expense, and the related income tax effects, if applicable.

 

 

(2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2025.

 

 

(3) Adjustment represents expense for an unusual health insurance claim. Based on the uncommonly large magnitude and nature of the claim, we do not believe that this expense reflects our normal operating activities, and we have excluded the amount from adjusted non-GAAP results.

 

 

(4) In January 2025, the Company eliminated about 100 positions to align our services capacity with customer demand which has been impacted by short-term macro-economic uncertainty. We expect to record a pre-tax restructuring expense in the first quarter of 2025.

 

 

 

 

 

 

 

 

 

 

 

 

Manhattan Associates currently intends to publish in each quarterly earnings release certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below.

Manhattan Associates will make this earnings release and published expectations available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

Manhattan Associates’ conference call regarding its fourth quarter and twelve months ended December 31, 2024 financial results will be held today, January 28, 2025, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software. The Internet webcast will be available until Manhattan Associates’ first quarter 2025 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

Manhattan Associates provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and twelve months ended December 31, 2024.

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation and expense related to an unusual health insurance claim – net of income tax effects. They also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes from the compensation expense recorded for financial reporting purposes. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds and delivers leading edge cloud solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2025 Guidance” and statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including inflation; disruption and transformation in the retail sector and our vertical markets; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; global instability, including the wars in Ukraine and the Middle East; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2024

 

2023

 

2024

 

2023

 

(unaudited)

 

(unaudited)

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Cloud subscriptions

$90,330

 

$71,416

 

$337,203

 

$254,612

Software license

5,452

 

5,239

 

15,085

 

18,206

Maintenance

33,568

 

37,164

 

138,304

 

143,936

Services

119,482

 

119,125

 

525,517

 

487,869

Hardware

6,969

 

5,311

 

26,243

 

24,102

Total revenue

255,801

 

238,255

 

1,042,352

 

928,725

Costs and expenses:

 

 

 

 

 

 

 

Cost of cloud subscriptions, maintenance and services

112,739

 

106,349

 

469,659

 

429,263

Cost of software license

253

 

384

 

1,321

 

1,351

Research and development

32,996

 

31,327

 

137,689

 

126,814

Sales and marketing

20,307

 

20,212

 

75,976

 

74,490

General and administrative

27,187

 

19,613

 

89,810

 

81,174

Depreciation and amortization

1,631

 

1,505

 

6,301

 

5,752

Total costs and expenses

195,113

 

179,390

 

780,756

 

718,844

Operating income

60,688

 

58,865

 

261,596

 

209,881

Other income, net

1,996

 

867

 

5,218

 

3,790

Income before income taxes

62,684

 

59,732

 

266,814

 

213,671

Income tax provision

14,668

 

10,996

 

48,450

 

37,103

Net income

$48,016

 

$48,736

 

$218,364

 

$176,568

 

 

 

 

 

 

 

 

Basic earnings per share

$0.79

 

$0.79

 

$3.56

 

$2.86

Diluted earnings per share

$0.77

 

$0.78

 

$3.51

 

$2.82

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

Basic

60,999

 

61,566

 

61,303

 

61,817

Diluted

62,009

 

62,555

 

62,183

 

62,608

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Operating income

 

$60,688

 

58,865

 

$261,596

 

209,881

Equity-based compensation (a)

 

22,592

 

17,973

 

93,206

 

71,571

Unusual health insurance claim (c)

 

7,002

 

-

 

7,002

 

-

Adjusted operating income (Non-GAAP)

 

$90,282

 

$76,838

 

$361,804

 

$281,452

 

 

 

 

 

 

 

 

 

Income tax provision

 

$14,668

 

10,996

 

$48,450

 

37,103

Equity-based compensation (a)

 

3,160

 

2,496

 

14,127

 

10,563

Tax benefit of stock awards vested (b)

 

57

 

26

 

9,120

 

3,480

Unusual health insurance claim (c)

 

1,690

 

-

 

1,690

 

-

Adjusted income tax provision (Non-GAAP)

 

$19,575

 

$13,518

 

$73,387

 

$51,146

 

 

 

 

 

 

 

 

 

Net income

 

$48,016

 

$48,736

 

$218,364

 

$176,568

Equity-based compensation (a)

 

19,432

 

15,477

 

79,079

 

61,008

Tax benefit of stock awards vested (b)

 

(57)

 

(26)

 

(9,120)

 

(3,480)

Unusual health insurance claim (c)

 

5,312

 

-

 

5,312

 

-

Adjusted net income (Non-GAAP)

 

$72,703

 

$64,187

 

$293,635

 

$234,096

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$0.77

 

$0.78

 

$3.51

 

$2.82

Equity-based compensation (a)

 

0.31

 

0.25

 

1.27

 

0.97

Tax benefit of stock awards vested (b)

 

-

 

-

 

(0.15)

 

(0.06)

Unusual health insurance claim (c)

 

0.09

 

-

 

0.09

 

-

Adjusted diluted EPS (Non-GAAP)

 

$1.17

 

$1.03

 

$4.72

 

$3.74

 

 

 

 

 

 

 

 

 

Fully diluted shares

 

62,009

 

62,555

 

62,183

 

62,608

(a)

Adjusted results exclude all equity-based compensation, as detailed below, to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly because of Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives.

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Cost of services

 

$10,049

 

$7,234

 

$41,531

 

$28,571

Research and development

 

4,948

 

3,963

 

20,760

 

15,674

Sales and marketing

 

2,149

 

1,760

 

8,444

 

7,093

General and administrative

 

5,446

 

5,016

 

22,471

 

20,233

Total equity-based compensation

 

$22,592

 

$17,973

 

$93,206

 

$71,571

(b)

Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also exclude the related tax benefit (expense) generated upon their vesting.

(c)

Adjustment represents expense for an unusual health insurance claim. Based on the uncommonly large magnitude and nature of the claim, we do not believe that this expense reflects our normal operating activities, and we have excluded the amount from adjusted non-GAAP results.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

266,230

 

 

$

270,741

 

Accounts receivable, net

 

 

205,475

 

 

 

181,173

 

Prepaid expenses and other current assets

 

 

31,559

 

 

 

27,276

 

Total current assets

 

 

503,264

 

 

 

479,190

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

13,971

 

 

 

11,795

 

Operating lease right-of-use assets

 

 

47,923

 

 

 

21,645

 

Goodwill, net

 

 

62,226

 

 

 

62,235

 

Deferred income taxes

 

 

94,505

 

 

 

66,043

 

Other assets

 

 

35,662

 

 

 

32,445

 

Total assets

 

$

757,551

 

 

$

673,353

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

26,615

 

 

$

24,508

 

Accrued compensation and benefits

 

 

72,180

 

 

 

73,210

 

Accrued and other liabilities

 

 

22,275

 

 

 

27,374

 

Deferred revenue

 

 

277,970

 

 

 

237,793

 

Income taxes payable

 

 

1,264

 

 

 

3,030

 

Total current liabilities

 

 

400,304

 

 

 

365,915

 

 

 

 

 

 

 

 

Operating lease liabilities, long-term

 

 

47,794

 

 

 

17,694

 

Other non-current liabilities

 

 

10,327

 

 

 

11,466

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2024 and December 31, 2023

 

 

-

 

 

 

-

 

Common stock, $.01 par value; 200,000,000 shares authorized; 60,921,191 and 61,566,037 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively

 

 

609

 

 

 

615

 

Retained earnings

 

 

329,439

 

 

 

304,701

 

Accumulated other comprehensive loss

 

 

(30,922

)

 

 

(27,038

)

Total shareholders' equity

 

 

299,126

 

 

 

278,278

 

Total liabilities and shareholders' equity

 

$

757,551

 

 

$

673,353

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

Net income

 

$

218,364

 

 

$

176,568

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

6,301

 

 

 

5,752

 

Equity-based compensation

 

 

93,206

 

 

 

71,571

 

(Gain) Loss on disposal of equipment

 

 

(133

)

 

 

57

 

Deferred income taxes

 

 

(28,689

)

 

 

(28,844

)

Unrealized foreign currency loss (gain)

 

 

(380

)

 

 

1,280

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(26,702

)

 

 

(13,084

)

Other assets

 

 

(4,157

)

 

 

(10,925

)

Accounts payable, accrued and other liabilities

 

 

1,248

 

 

 

18,123

 

Income taxes

 

 

(6,242

)

 

 

(1,416

)

Deferred revenue

 

 

42,187

 

 

 

27,136

 

Net cash provided by operating activities

 

 

295,003

 

 

 

246,218

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(8,675

)

 

 

(4,730

)

Net cash used in investing activities

 

 

(8,675

)

 

 

(4,730

)

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

Purchase of common stock

 

 

(286,366

)

 

 

(196,047

)

Net cash used in financing activities

 

 

(286,366

)

 

 

(196,047

)

 

 

 

 

 

 

 

Foreign currency impact on cash

 

 

(4,473

)

 

 

(163

)

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(4,511

)

 

 

45,278

 

Cash and cash equivalents at beginning of period

 

 

270,741

 

 

 

225,463

 

Cash and cash equivalents at end of period

 

$

266,230

 

 

$

270,741

 

 

 

 

 

 

 

 

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

1. GAAP and adjusted earnings per share by quarter are as follows:

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

GAAP Diluted EPS

$0.62

 

$0.63

 

$0.79

 

$0.78

 

$2.82

 

$0.86

 

$0.85

 

$1.03

 

$0.77

 

$3.51

Adjustments to GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

0.23

 

0.25

 

0.26

 

0.25

 

0.97

 

0.30

 

0.34

 

0.33

 

0.31

 

1.27

Tax benefit of stock awards vested

(0.05)

 

-

 

-

 

-

 

(0.06)

 

(0.13)

 

(0.01)

 

(0.01)

 

-

 

(0.15)

Unusual health insurance claim

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

0.09

 

0.09

Adjusted Diluted EPS

$0.80

 

$0.88

 

$1.05

 

$1.03

 

$3.74

 

$1.03

 

$1.18

 

$1.35

 

$1.17

 

$4.72

Fully Diluted Shares

62,767

 

62,432

 

62,310

 

62,555

 

62,608

 

62,493

 

62,118

 

61,948

 

62,009

 

62,183

2. Revenues and operating income by reportable segment are as follows (in thousands):

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

Revenue:

Americas

$170,759

 

$179,208

 

$186,564

 

$182,664

 

$719,195

 

$196,312

 

$205,955

 

$205,852

 

$194,367

 

$802,486

EMEA

39,658

 

40,902

 

41,204

 

44,874

 

166,638

 

46,620

 

46,918

 

48,082

 

48,903

 

190,523

APAC

10,596

 

10,906

 

10,673

 

10,717

 

42,892

 

11,620

 

12,445

 

12,747

 

12,531

 

49,343

 

$221,013

 

$231,016

 

$238,441

 

$238,255

 

$928,725

 

$254,552

 

$265,318

 

$266,681

 

$255,801

 

$1,042,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Income:

Americas

$29,647

 

$32,326

 

$34,655

 

$38,530

 

$135,158

 

$36,687

 

$45,300

 

$49,033

 

$36,323

 

$167,343

EMEA

12,793

 

13,556

 

14,415

 

15,959

 

56,723

 

15,884

 

17,195

 

20,521

 

18,896

 

72,496

APAC

4,645

 

4,601

 

4,378

 

4,376

 

18,000

 

5,059

 

5,693

 

5,536

 

5,469

 

21,757

 

$47,085

 

$50,483

 

$53,448

 

$58,865

 

$209,881

 

$57,630

 

$68,188

 

$75,090

 

$60,688

 

$261,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (pre-tax):

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based comp

$16,640

 

$17,928

 

$19,030

 

$17,973

 

$71,571

 

$22,095

 

$24,666

 

$23,853

 

$22,592

 

$93,206

Unusual health insurance claim

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

7,002

 

7,002

 

$16,640

 

$17,928

 

$19,030

 

$17,973

 

$71,571

 

$22,095

 

$24,666

 

$23,853

 

$29,594

 

$100,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-GAAP Operating Income:

Americas

$46,287

 

$50,254

 

$53,685

 

$56,503

 

$206,729

 

$58,782

 

$69,966

 

$72,886

 

$65,917

 

$267,551

EMEA

12,793

 

13,556

 

14,415

 

15,959

 

56,723

 

15,884

 

17,195

 

20,521

 

18,896

 

72,496

APAC

4,645

 

4,601

 

4,378

 

4,376

 

18,000

 

5,059

 

5,693

 

5,536

 

5,469

 

21,757

 

$63,725

 

$68,411

 

$72,478

 

$76,838

 

$281,452

 

$79,725

 

$92,854

 

$98,943

 

$90,282

 

$361,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

Revenue

$(3,084)

 

$104

 

$2,755

 

$2,341

 

$2,116

 

$648

 

$(531)

 

$936

 

$316

 

$1,369

Costs and expenses

(3,616)

 

(1,133)

 

1,033

 

1,212

 

(2,504)

 

176

 

(673)

 

211

 

(227)

 

(513)

Operating income

532

 

1,237

 

1,722

 

1,129

 

4,620

 

472

 

142

 

725

 

543

 

1,882

Foreign currency gains (losses) in other income

(810)

 

(516)

 

387

 

(527)

 

(1,466)

 

(564)

 

(577)

 

(331)

 

519

 

(953)

 

$(278)

 

$721

 

$2,109

 

$602

 

$3,154

 

$(92)

 

$(435)

 

$394

 

$1,062

 

$929

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

Operating income

$1,632

 

$1,222

 

$728

 

$267

 

$3,849

 

$185

 

$307

 

$261

 

$302

 

$1,055

Foreign currency gains (losses) in other income

(283)

 

(31)

 

812

 

(105)

 

393

 

164

 

41

 

284

 

1,283

 

1,772

Total impact of changes in the Indian Rupee

$1,349

 

$1,191

 

$1,540

 

$162

 

$4,242

 

$349

 

$348

 

$545

 

$1,585

 

$2,827

4. Other income includes the following components (in thousands):

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

Interest income

$969

 

$1,555

 

$1,371

 

$1,409

 

$5,304

 

$1,414

 

$1,503

 

$1,636

 

$1,476

 

$6,029

Foreign currency gains (losses)

(810)

 

(516)

 

387

 

(527)

 

(1,466)

 

(564)

 

(577)

 

(331)

 

519

 

(953)

Other non-operating income (expense)

(16)

 

2

 

(19)

 

(15)

 

(48)

 

146

 

(12)

 

7

 

1

 

142

Total other income

$143

 

$1,041

 

$1,739

 

$867

 

$3,790

 

$996

 

$914

 

$1,312

 

$1,996

 

$5,218

5. Capital expenditures are as follows (in thousands):

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

Capital expenditures

$666

 

$1,009

 

$1,086

 

$1,969

 

$4,730

 

$2,321

 

$2,217

 

$1,009

 

$3,128

 

$8,675

6. Stock Repurchase Activity (in thousands):

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

Shares purchased under publicly-announced buy-back program

515

 

381

 

128

 

-

 

1,024

 

294

 

343

 

194

 

156

 

987

Shares withheld for taxes due upon vesting of restricted stock

208

 

4

 

8

 

2

 

222

 

165

 

3

 

8

 

2

 

178

Total shares purchased

723

 

385

 

136

 

2

 

1,246

 

459

 

346

 

202

 

158

 

1,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash paid for shares purchased under publicly-announced buy-back program

$74,177

 

$66,769

 

$25,072

 

$0

 

$166,018

 

$73,411

 

$74,999

 

$49,687

 

$43,539

 

$241,636

Total cash paid for shares withheld for taxes due upon vesting of restricted stock

27,511

 

658

 

1,529

 

331

 

30,029

 

40,423

 

713

 

1,917

 

569

 

43,622

Total cash paid for excise tax

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1,108

 

1,108

Total cash paid for shares repurchased

$101,688

 

$67,427

 

$26,601

 

$331

 

$196,047

 

$113,834

 

$75,712

 

$51,604

 

$45,216

 

$286,366

7. Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Over 98% of our RPO represents cloud native subscriptions with non-cancelable terms greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts are typically one year and not included in the RPO. Our RPO as of the end of each period appears below (in thousands):

 

 

March 31, 2023

 

June 30, 2023

 

September 30, 2023

 

December 31, 2023

 

March 31, 2024

 

June 30, 2024

 

September 30, 2024

 

December 31, 2024

Remaining Performance Obligations

$1,153,404

 

$1,238,672

 

$1,324,861

 

$1,427,854

 

$1,516,430

 

$1,601,531

 

$1,686,421

 

$1,780,400

 

For the quarter ending December 31, 2024, foreign exchange movements adversely impacted RPO by approximately $33 million compared to the quarter ending September 30, 2024.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128677341/en/

Michael Bauer Senior Director, Investor Relations Manhattan Associates, Inc. 678-597-7538 mbauer@manh.com

Devika Goel Senior Manager, Public Relations Manhattan Associates, Inc. 678-597-6754 dgoel@manh.com