RPO Bookings Increase 27% over Prior Year on
Strong Demand
Leading Supply Chain and Omnichannel Commerce Solutions provider
Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of
$266.7 million for the third quarter ended September 30, 2024. GAAP
diluted earnings per share for Q3 2024 was $1.03 compared to $0.79
in Q3 2023. Non-GAAP adjusted diluted earnings per share for Q3
2024 was $1.35 compared to $1.05 in Q3 2023.
“Manhattan delivered record third quarter and year-to-date
results. Our fundamentals are strong, and we continue to deliver a
balanced financial performance across top-line growth and
profitability and industry leading innovation each quarter,” said
Manhattan Associates president and CEO Eddie Capel.
“While we remain appropriately cautious on the global economy,
we are optimistic on our growing market opportunity and our
long-term strategy. Our fourth quarter is off to a solid start, and
we are providing responsible 2025 parameters,” Mr. Capel
concluded.
THIRD QUARTER 2024 FINANCIAL SUMMARY:
- Consolidated total revenue was $266.7 million for Q3 2024,
compared to $238.4 million for Q3 2023.
- Cloud subscription revenue was $86.5 million for Q3 2024,
compared to $65.0 million for Q3 2023.
- License revenue was $3.8 million for Q3 2024, compared to $3.9
million for Q3 2023.
- Services revenue was $137.0 million for Q3 2024, compared to
$128.0 million for Q3 2023.
- GAAP diluted earnings per share was $1.03 for Q3 2024, compared
to $0.79 for Q3 2023.
- Adjusted diluted earnings per share, a non-GAAP measure, was
$1.35 for Q3 2024, compared to $1.05 for Q3 2023.
- GAAP operating income was $75.1 million for Q3 2024, compared
to $53.4 million for Q3 2023.
- Adjusted operating income, a non-GAAP measure, was $98.9
million for Q3 2024, compared to $72.5 million for Q3 2023.
- Cash flow from operations was $62.3 million for Q3 2024,
compared to $58.6 million for Q3 2023. Days Sales Outstanding was
69 days at September 30, 2024, compared to 66 days at June 30,
2024.
- Cash totaled $215.0 million at September 30, 2024, compared to
$202.7 million at June 30, 2024.
- During the three months ended September 30, 2024, the Company
repurchased 194,712 shares of Manhattan Associates common stock
under the share repurchase program authorized by our Board of
Directors for a total investment of $49.7 million. In October 2024,
our Board of Directors approved replenishing the Company’s
remaining share repurchase authority to an aggregate of $75.0
million of our common stock.
NINE MONTH 2024 FINANCIAL SUMMARY:
- Consolidated total revenue for the nine months ended September
30, 2024, was $786.6 million, compared to $690.5 million for the
nine months ended September 30, 2023.
- Cloud subscription revenue was $246.9 million for the nine
months ended September 30, 2024, compared to $183.2 million for the
nine months ended September 30, 2023.
- License revenue was $9.6 million for the nine months ended
September 30, 2024, compared to $13.0 million for the nine months
ended September 30, 2023.
- Services revenue was $406.0 million for the nine months ended
September 30, 2024, compared to $368.7 million for the nine months
ended September 30, 2023.
- GAAP diluted earnings per share for the nine months ended
September 30, 2024, was $2.74, compared to $2.05 for the nine
months ended September 30, 2023.
- Adjusted diluted earnings per share, a non-GAAP measure, was
$3.55 for the nine months ended September 30, 2024, compared to
$2.72 for the nine months ended September 30, 2023.
- GAAP operating income was $200.9 million for the nine months
ended September 30, 2024, compared to $151.0 million for the nine
months ended September 30, 2023.
- Adjusted operating income, a non-GAAP measure, was $271.5
million for the nine months ended September 30, 2024, compared to
$204.6 million for the nine months ended September 30, 2023.
- Cash flow from operations was $190.3 million for the nine
months ended September 30, 2024, compared to $157.9 million for the
nine months ended September 30, 2023.
- During the nine months ended September 30, 2024, the Company
repurchased 831,111 shares of Manhattan Associates common stock
under the share repurchase program authorized by our Board of
Directors, for a total investment of $198.1 million. In October
2024, our Board of Directors approved replenishing the Company’s
remaining share repurchase authority to an aggregate of $75.0
million of our common stock.
2024 GUIDANCE
Manhattan Associates provides the following revenue, operating
margin and diluted earnings per share guidance for the full year
2024:
Guidance Range - 2024 Full
Year
($'s in millions, except operating
margin and EPS)
$ Range
% Growth Range
Total revenue - current
guidance
$1,039
$1,041
12%
12%
Operating margin:
GAAP operating margin - current
guidance
24.9%
25.0%
Equity-based compensation
9.1%
9.1%
Adjusted operating margin(1) - current
guidance
34.0%
34.1%
Diluted earnings per share
(EPS):
GAAP EPS - current guidance
$3.47
$3.49
23%
24%
Equity-based compensation, net of
tax
1.28
1.28
Excess tax benefit on stock
vesting(2)
(0.15)
(0.15)
Adjusted EPS(1) - current
guidance
$4.60
$4.62
23%
24%
(1) Adjusted operating margin and adjusted
EPS are non-GAAP measures that exclude the impact of
equity-based
compensation and related income tax
effects.
(2) Excess tax benefit on stock vesting
expected to occur primarily in the first quarter of 2024.
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 third
quarter financial results will be held today, October 22, 2024, 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’
fourth quarter 2024 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 nine months ended
September 30, 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 – 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 “2024 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Revenue:
Cloud subscriptions
$86,485
$65,033
$246,873
$183,196
Software license
3,762
3,870
9,633
12,967
Maintenance
34,491
35,296
104,736
106,772
Services
137,009
127,965
406,035
368,744
Hardware
4,934
6,277
19,274
18,791
Total revenue
266,681
238,441
786,551
690,470
Costs and expenses:
Cost of cloud subscriptions, maintenance
and services
118,269
111,142
356,920
322,914
Cost of software license
391
297
1,068
967
Research and development
34,349
33,093
104,693
95,487
Sales and marketing
16,586
17,650
55,669
54,278
General and administrative
20,308
21,371
62,623
61,561
Depreciation and amortization
1,688
1,440
4,670
4,247
Total costs and expenses
191,591
184,993
585,643
539,454
Operating income
75,090
53,448
200,908
151,016
Other income, net
1,312
1,739
3,222
2,923
Income before income taxes
76,402
55,187
204,130
153,939
Income tax provision
12,621
5,766
33,782
26,107
Net income
$63,781
$49,421
$170,348
$127,832
Basic earnings per share
$1.04
$0.80
$2.77
$2.07
Diluted earnings per share
$1.03
$0.79
$2.74
$2.05
Weighted average number of shares:
Basic
61,169
61,639
61,404
61,902
Diluted
61,948
62,310
62,186
62,501
MANHATTAN ASSOCIATES, INC. AND
SUBSIDIARIES
Reconciliation of Selected
GAAP to Non-GAAP Measures
(in thousands, except per
share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Operating income
$75,090
$53,448
$200,908
$151,016
Equity-based compensation (a)
23,853
19,030
70,614
53,598
Adjusted operating income (Non-GAAP)
$98,943
$72,478
$271,522
$204,614
Income tax provision
$12,621
$5,766
$33,782
$26,107
Equity-based compensation (a)
3,683
3,030
10,967
8,067
Tax benefit of stock awards vested (b)
579
218
9,063
3,454
Adjusted income tax provision
(Non-GAAP)
$16,883
$9,014
$53,812
$37,628
Net income
$63,781
$49,421
$170,348
$127,832
Equity-based compensation (a)
20,170
16,000
59,647
45,531
Tax benefit of stock awards vested (b)
(579)
(218)
(9,063)
(3,454)
Adjusted net income (Non-GAAP)
$83,372
$65,203
$220,932
$169,909
Diluted EPS
$1.03
$0.79
$2.74
$2.05
Equity-based compensation (a)
0.33
0.26
0.96
0.73
Tax benefit of stock awards vested (b)
(0.01)
-
(0.15)
(0.06)
Adjusted diluted EPS (Non-GAAP)
$1.35
$1.05
$3.55
$2.72
Fully diluted shares
61,948
62,310
62,186
62,501
(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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Cost of services
$10,835
$7,643
$31,482
$21,337
Research and development
5,117
4,141
15,812
11,711
Sales and marketing
2,189
1,878
6,295
5,333
General and administrative
5,712
5,368
17,025
15,217
Total equity-based compensation
$23,853
$19,030
$70,614
$53,598
(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.
MANHATTAN ASSOCIATES, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(in thousands, except share
and per share data)
September 30, 2024
December 31, 2023
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
214,952
$
270,741
Accounts receivable, net
199,756
181,173
Prepaid expenses and other current
assets
37,605
27,276
Total current assets
452,313
479,190
Property and equipment, net
12,809
11,795
Operating lease right-of-use assets
50,094
21,645
Goodwill, net
62,236
62,235
Deferred income taxes
86,551
66,043
Other assets
34,137
32,445
Total assets
$
698,140
$
673,353
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
23,183
$
24,508
Accrued compensation and benefits
63,010
73,210
Accrued and other liabilities
23,227
27,374
Deferred revenue
252,537
237,793
Income taxes payable
286
3,030
Total current liabilities
362,243
365,915
Operating lease liabilities, long-term
50,028
17,694
Other non-current liabilities
7,918
11,466
Shareholders' equity:
Preferred stock, no par value; 20,000,000
shares authorized, no shares issued or outstanding in 2024 and
2023
-
-
Common stock, $0.01 par value; 200,000,000
shares authorized; 61,072,619 and 61,566,037 shares issued and
outstanding at September 30, 2024 and December 31, 2023,
respectively
610
615
Retained earnings
303,361
304,701
Accumulated other comprehensive loss
(26,020
)
(27,038
)
Total shareholders' equity
277,951
278,278
Total liabilities and shareholders'
equity
$
698,140
$
673,353
MANHATTAN ASSOCIATES, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Cash Flows
(in thousands)
Nine Months Ended September
30,
2024
2023
(unaudited)
(unaudited)
Operating activities:
Net income
$
170,348
$
127,832
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
4,670
4,247
Equity-based compensation
70,614
53,598
(Gain) loss on disposal of equipment
(131
)
42
Deferred income taxes
(20,544
)
(18,359
)
Unrealized foreign currency loss
906
922
Changes in operating assets and
liabilities:
Accounts receivable, net
(17,515
)
(17,168
)
Other assets
(9,688
)
(7,747
)
Accounts payable, accrued and other
liabilities
(13,367
)
13,477
Income taxes
(7,956
)
(4,347
)
Deferred revenue
12,962
5,362
Net cash provided by operating
activities
190,299
157,859
Investing activities:
Purchase of property and equipment
(5,547
)
(2,761
)
Net cash used in investing activities
(5,547
)
(2,761
)
Financing activities:
Repurchase of common stock
(241,150
)
(195,716
)
Net cash used in financing activities
(241,150
)
(195,716
)
Foreign currency impact on cash
609
(2,533
)
Net change in cash and cash
equivalents
(55,789
)
(43,151
)
Cash and cash equivalents at beginning of
period
270,741
225,463
Cash and cash equivalents at end of
period
$
214,952
$
182,312
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
YTD
GAAP Diluted EPS
$0.62
$0.63
$0.79
$0.78
$2.82
$0.86
$0.85
$1.03
$2.74
Adjustments to GAAP:
Equity-based compensation
0.23
0.25
0.26
0.25
0.97
0.30
0.34
0.33
0.96
Tax benefit of stock awards vested
(0.05)
-
-
-
(0.06)
(0.13)
(0.01)
(0.01)
(0.15)
Adjusted Diluted EPS
$0.80
$0.88
$1.05
$1.03
$3.74
$1.03
$1.18
$1.35
$3.55
Fully Diluted Shares
62,767
62,432
62,310
62,555
62,608
62,493
62,118
61,948
62,186
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
YTD
Revenue:
Americas
$170,759
$179,208
$186,564
$182,664
$719,195
$196,312
$205,955
$205,852
$608,119
EMEA
39,658
40,902
41,204
44,874
166,638
46,620
46,918
48,082
141,620
APAC
10,596
10,906
10,673
10,717
42,892
11,620
12,445
12,747
36,812
$221,013
$231,016
$238,441
$238,255
$928,725
$254,552
$265,318
$266,681
$786,551
GAAP Operating Income:
Americas
$29,647
$32,326
$34,655
$38,530
$135,158
$36,687
$45,300
$49,033
$131,020
EMEA
12,793
13,556
14,415
15,959
56,723
15,884
17,195
20,521
53,600
APAC
4,645
4,601
4,378
4,376
18,000
5,059
5,693
5,536
16,288
$47,085
$50,483
$53,448
$58,865
$209,881
$57,630
$68,188
$75,090
$200,908
Adjustments (pre-tax):
Americas:
Equity-based compensation
$16,640
$17,928
$19,030
$17,973
$71,571
$22,095
$24,666
$23,853
$70,614
$16,640
$17,928
$19,030
$17,973
$71,571
$22,095
$24,666
$23,853
$70,614
Adjusted non-GAAP Operating
Income:
Americas
$46,287
$50,254
$53,685
$56,503
$206,729
$58,782
$69,966
$72,886
$201,634
EMEA
12,793
13,556
14,415
15,959
56,723
15,884
17,195
20,521
53,600
APAC
4,645
4,601
4,378
4,376
18,000
5,059
5,693
5,536
16,288
$63,725
$68,411
$72,478
$76,838
$281,452
$79,725
$92,854
$98,943
$271,522
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
YTD
Revenue
$(3,084)
$104
$2,755
$2,341
$2,116
$648
$(531)
$936
$1,053
Costs and expenses
(3,616)
(1,133)
1,033
1,212
(2,504)
176
(673)
211
(286)
Operating income
532
1,237
1,722
1,129
4,620
472
142
725
1,339
Foreign currency gains (losses) in other
income
(810)
(516)
387
(527)
(1,466)
(564)
(577)
(331)
$(1,472)
$(278)
$721
$2,109
$602
$3,154
$(92)
$(435)
$394
$(133)
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
YTD
Operating income
$1,632
$1,222
$728
$267
$3,849
$185
$307
$261
$753
Foreign currency gains (losses) in other
income
(283)
(31)
812
(105)
393
164
41
284
489
Total impact of changes in the Indian
Rupee
$1,349
$1,191
$1,540
$162
$4,242
$349
$348
$545
$1,242
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
YTD
Interest income
$969
$1,555
$1,371
$1,409
$5,304
$1,414
$1,503
$1,636
$4,553
Foreign currency gains (losses)
(810)
(516)
387
(527)
(1,466)
(564)
(577)
(331)
(1,472)
Other non-operating income (expense)
(16)
2
(19)
(15)
(48)
146
(12)
7
141
Total other income (loss)
$143
$1,041
$1,739
$867
$3,790
$996
$914
$1,312
$3,222
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
YTD
Capital expenditures
$666
$1,009
$1,086
$1,969
$4,730
$2,321
$2,217
$1,009
$5,547
6. Stock Repurchase Activity (in
thousands):
2023
2024
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
3rd Qtr
YTD
Shares purchased under publicly announced
buy-back program
515
381
128
-
1,024
294
343
194
831
Shares withheld for taxes due upon vesting
of restricted stock units
208
4
8
2
222
165
3
8
176
Total shares purchased
723
385
136
2
1,246
459
346
202
1,007
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
$198,097
Total cash paid for shares withheld for
taxes due upon vesting of restricted stock units
27,511
658
1,529
331
30,029
40,423
713
1,917
43,053
Total cash paid for shares repurchased
$101,688
$67,427
$26,601
$331
$196,047
$113,834
$75,712
$51,604
$241,150
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
Remaining Performance Obligations
$1,153,404
$1,238,672
$1,324,861
$1,427,854
$1,516,430
$1,601,531
$1,686,421
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241022598637/en/
Michael Bauer Senior Director, Investor Relations Manhattan
Associates, Inc. 678-597-7538 mbauer@manh.com
Rick Fernandez Director, Corporate Communications Manhattan
Associates, Inc. 678-597-6988 rfernandez@manh.com
Manhattan Associates (NASDAQ:MANH)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
Manhattan Associates (NASDAQ:MANH)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024
