Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Manhattan Associates Reports Record Revenue and Earnings By: Manhattan Associates Inc. via Business Wire July 25, 2023 at 16:05 PM EDT RPO Bookings Increase 38% over Prior Year on Strong Demand Company Raises 2023 Full-Year Guidance Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $231.0 million for the second quarter ended June 30, 2023. GAAP diluted earnings per share for Q2 2023 was $0.63 compared to $0.49 in Q2 2022. Non-GAAP adjusted diluted earnings per share for Q2 2023 was $0.88 compared to $0.69 in Q2 2022. “Manhattan delivered record second quarter and first half results. Robust demand drove Q2 cloud revenue growth of 44% and service revenue growth of 23%. These strong results exceeded our expectations, leading to our top-line outperformance and solid earnings leverage in the quarter,” said Manhattan Associates president and CEO Eddie Capel. “While appropriately cautious regarding the global economy, we are optimistic on our opportunity. To extend our leadership position, we remain committed to investing in industry leading innovation across supply chain execution, omnichannel and retail point of sale markets to best help our customers achieve more by digitally transforming their businesses,” Mr. Capel concluded. SECOND QUARTER 2023 FINANCIAL SUMMARY: Consolidated total revenue was $231.0 million for Q2 2023, compared to $191.9 million for Q2 2022. Cloud subscription revenue was $60.9 million for Q2 2023, compared to $42.2 million for Q2 2022. License revenue was $3.7 million for Q2 2023, compared to $5.1 million for Q2 2022. Services revenue was $124.6 million for Q2 2023, compared to $100.9 million for Q2 2022. GAAP diluted earnings per share was $0.63 for Q2 2023, compared to $0.49 for Q2 2022. Adjusted diluted earnings per share, a non-GAAP measure, was $0.88 for Q2 2023, compared to $0.69 for Q2 2022. GAAP operating income was $50.5 million for Q2 2023, compared to $37.3 million for Q2 2022. Adjusted operating income, a non-GAAP measure, was $68.4 million for Q2 2023, compared to $52.8 million for Q2 2022. Cash flow from operations was $40.6 million for Q2 2023, compared to $52.7 million for Q2 2022. Days Sales Outstanding was 70 days at June 30, 2023, compared to 65 days at March 31, 2023. Cash totaled $153.3 million at June 30, 2023, compared to $181.6 million at March 31, 2023. During the three months ended June 30, 2023, the Company repurchased 381,357 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $66.8 million. In July 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock. SIX MONTH 2023 FINANCIAL SUMMARY: Consolidated total revenue for the six months ended June 30, 2023, was $452.0 million, compared to $370.9 million for the six months ended June 30, 2022. Cloud subscription revenue was $118.2 million for the six months ended June 30, 2023, compared to $79.5 million for the six months ended June 30, 2022. License revenue was $9.1 million for the six months ended June 30, 2023, compared to $13.5 million for the six months ended June 30, 2022. Services revenue was $240.8 million for the six months ended June 30, 2023, compared to $190.9 million for the six months ended June 30, 2022. GAAP diluted earnings per share for the six months ended June 30, 2023, was $1.25, compared to $0.97 for the six months ended June 30, 2022. Adjusted diluted earnings per share, a non-GAAP measure, was $1.67 for the six months ended June 30, 2023, compared to $1.29 for the six months ended June 30, 2022. GAAP operating income was $97.6 million for the six months ended June 30, 2023, compared to $71.2 million for the six months ended June 30, 2022. Adjusted operating income, a non-GAAP measure, was $132.1 million for the six months ended June 30, 2023, compared to $100.9 million for the six months ended June 30, 2022. Cash flow from operations was $99.3 million for the six months ended June 30, 2023, compared to $84.5 million for the six months ended June 30, 2022. During the six months ended June 30, 2023, the Company repurchased 896,195 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $140.9 million. 2023 GUIDANCE Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2023: Guidance Range - 2023 Full Year ($'s in millions, except operating margin and EPS) $ Range % Growth Range Total revenue - current guidance $886 $894 15% 17% Operating margin: GAAP operating margin - current guidance 19.5% 19.8% Equity-based compensation 7.9% 7.8% Adjusted operating margin(1) - current guidance 27.4% 27.6% Diluted earnings per share (EPS): GAAP EPS - current guidance $2.18 $2.22 7% 9% Equity-based compensation, net of tax 0.95 0.95 Excess tax benefit on stock vesting(2) (0.06) (0.06) Adjusted EPS(1) - current guidance $3.07 $3.11 11% 13% (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 2023. 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 and guideposts in the supplemental information below, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. Those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release. 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 and guideposts, should be considered historical only, and Manhattan Associates disclaims any obligation to update them. CONFERENCE CALL Manhattan Associates’ conference call regarding its second quarter 2023 financial results will be held today, July 25, 2023, 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’ third quarter 2023 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 six months ended June 30, 2023. 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. 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 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 “2023 Guidance” and “Guideposts,” statements we make about market adoption of our cloud-based solution and other 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 in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; disruption in the retail sector; risks related to our products’ technology and customer implementations; global instability, including the war in Ukraine; 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, 2022, 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) Revenue: Cloud subscriptions $60,943 $42,203 $118,163 $79,500 Software license 3,745 5,125 9,097 13,483 Maintenance 35,826 35,993 71,476 71,295 Services 124,609 100,941 240,779 190,859 Hardware 5,893 7,662 12,514 15,743 Total revenue 231,016 191,924 452,029 370,880 Costs and expenses: Cost of cloud subscriptions, maintenance and services 108,445 87,766 211,772 170,791 Cost of software license 368 880 670 1,282 Research and development 31,600 27,924 62,394 55,379 Sales and marketing 18,563 17,749 36,628 32,139 General and administrative 20,237 18,606 40,190 36,571 Depreciation and amortization 1,320 1,746 2,807 3,493 Total costs and expenses 180,533 154,671 354,461 299,655 Operating income 50,483 37,253 97,568 71,225 Other income, net 1,041 2,243 1,184 2,981 Income before income taxes 51,524 39,496 98,752 74,206 Income tax provision 11,904 8,671 20,341 12,789 Net income $39,620 $30,825 $78,411 $61,417 Basic earnings per share $0.64 $0.49 $1.26 $0.97 Diluted earnings per share $0.63 $0.49 $1.25 $0.97 Weighted average number of shares: Basic 61,862 62,954 62,036 63,083 Diluted 62,432 63,419 62,599 63,644 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Reconciliation of Selected GAAP to Non-GAAP Measures (in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating income $50,483 $37,253 $97,568 $71,225 Equity-based compensation (a) 17,928 15,538 34,568 29,676 Adjusted operating income (Non-GAAP) $68,411 $52,791 $132,136 $100,901 Income tax provision $11,904 $8,671 $20,341 $12,789 Equity-based compensation (a) 2,628 2,566 5,037 4,748 Tax benefit of stock awards vested (b) 281 8 3,236 4,383 Adjusted income tax provision (Non-GAAP) $14,813 $11,245 $28,614 $21,920 Net income $39,620 $30,825 $78,411 $61,417 Equity-based compensation (a) 15,300 12,972 29,531 24,928 Tax benefit of stock awards vested (b) (281) (8) (3,236) (4,383) Adjusted net income (Non-GAAP) $54,639 $43,789 $104,706 $81,962 Diluted EPS $0.63 $0.49 $1.25 $0.97 Equity-based compensation (a) 0.25 0.20 0.47 0.39 Tax benefit of stock awards vested (b) - - (0.05) (0.07) Adjusted diluted EPS (Non-GAAP) $0.88 $0.69 $1.67 $1.29 Fully diluted shares 62,432 63,419 62,599 63,644 (a) Adjusted results exclude all equity-based compensation 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 due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of services $7,178 $5,822 $13,694 $10,959 Research and development 3,915 3,425 7,570 6,614 Sales and marketing 1,807 1,546 3,455 2,952 General and administrative 5,028 4,745 9,849 9,151 Total equity-based compensation $17,928 $15,538 $34,568 $29,676 (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) June 30, 2023 December 31, 2022 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 153,294 $ 225,463 Accounts receivable, net of allowance of $5,903 and $6,009, at June 30, 2023 and December 31, 2022, respectively 178,453 166,767 Prepaid expenses and other current assets 28,272 23,145 Total current assets 360,019 415,375 Property and equipment, net 11,754 12,803 Operating lease right-of-use assets 16,052 17,794 Goodwill, net 62,233 62,230 Deferred income taxes 48,259 37,206 Other assets 28,677 24,770 Total assets $ 526,994 $ 570,178 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,124 $ 25,701 Accrued compensation and benefits 51,937 54,469 Accrued and other liabilities 25,339 24,569 Deferred revenue 227,100 208,807 Income taxes payable 109 2,049 Total current liabilities 330,609 315,595 Operating lease liabilities, long-term 12,459 14,065 Other non-current liabilities 13,376 13,718 Shareholders' equity: Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2023 and 2022 - - Common stock, $0.01 par value; 200,000,000 shares authorized; 61,668,512 and 62,191,570 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively 617 621 Retained earnings 196,673 253,711 Accumulated other comprehensive loss (26,740 ) (27,532 ) Total shareholders' equity 170,550 226,800 Total liabilities and shareholders' equity $ 526,994 $ 570,178 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) Six Months Ended June 30, 2023 2022 (unaudited) (unaudited) Operating activities: Net income $ 78,411 $ 61,417 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,807 3,493 Equity-based compensation 34,568 29,676 Loss (gain) on disposal of equipment 22 (92 ) Deferred income taxes (11,038 ) (12,535 ) Unrealized foreign currency loss (gain) 1,577 (2,087 ) Changes in operating assets and liabilities: Accounts receivable, net (11,024 ) (11,703 ) Other assets (5,825 ) (6,697 ) Accounts payable, accrued and other liabilities (2,593 ) (587 ) Income taxes (5,359 ) (3,519 ) Deferred revenue 17,740 27,116 Net cash provided by operating activities 99,286 84,482 Investing activities: Purchase of property and equipment (1,675 ) (2,243 ) Net cash used in investing activities (1,675 ) (2,243 ) Financing activities: Repurchase of common stock (169,115 ) (127,787 ) Net cash used in financing activities (169,115 ) (127,787 ) Foreign currency impact on cash (665 ) (4,387 ) Net change in cash and cash equivalents (72,169 ) (49,935 ) Cash and cash equivalents at beginning of period 225,463 263,706 Cash and cash equivalents at end of period $ 153,294 $ 213,771 MANHATTAN ASSOCIATES, INC. SUPPLEMENTAL INFORMATION 1. GAAP and adjusted earnings per share by quarter are as follows: 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD GAAP Diluted EPS $0.48 $0.49 $0.47 $0.60 $2.03 $0.62 $0.63 $1.25 Adjustments to GAAP: Equity-based compensation 0.19 0.20 0.19 0.21 0.79 0.23 0.25 0.47 Tax benefit of stock awards vested (0.07) - - - (0.07) (0.05) - (0.05) Adjusted Diluted EPS $0.60 $0.69 $0.66 $0.81 $2.76 $0.80 $0.88 $1.67 Fully Diluted Shares 63,871 63,419 63,165 63,028 63,408 62,767 62,432 62,599 2. Revenues and operating income by reportable segment are as follows (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue: Americas $139,540 $151,996 $156,674 $155,674 $603,884 $170,759 $179,208 $349,967 EMEA 32,151 31,614 31,843 33,330 128,938 39,658 40,902 80,560 APAC 7,265 8,314 9,584 9,099 34,262 10,596 10,906 21,502 $178,956 $191,924 $198,101 $198,103 $767,084 $221,013 $231,016 $452,029 GAAP Operating Income: Americas $21,393 $24,507 $22,914 $30,475 $99,289 $29,647 $32,326 $61,973 EMEA 10,517 9,423 9,851 10,239 40,030 12,793 13,556 26,349 APAC 2,062 3,323 4,005 3,991 13,381 4,645 4,601 9,246 $33,972 $37,253 $36,770 $44,705 $152,700 $47,085 $50,483 $97,568 Adjustments (pre-tax): Americas: Equity-based compensation $14,138 $15,538 $14,533 $15,152 $59,361 $16,640 $17,928 $34,568 $14,138 $15,538 $14,533 $15,152 $59,361 $16,640 $17,928 $34,568 Adjusted non-GAAP Operating Income: Americas $35,531 $40,045 $37,447 $45,627 $158,650 $46,287 $50,254 $96,541 EMEA 10,517 9,423 9,851 10,239 40,030 12,793 13,556 26,349 APAC 2,062 3,323 4,005 3,991 13,381 4,645 4,601 9,246 $48,110 $52,791 $51,303 $59,857 $212,061 $63,725 $68,411 $132,136 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): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue $(2,268) $(4,568) $(6,152) $(5,124) $(18,112) $(3,084) $104 $(2,980) Costs and expenses (2,043) (3,862) (5,412) (5,354) (16,671) (3,616) (1,133) (4,749) Operating income (225) (706) (740) 230 (1,441) 532 1,237 1,769 Foreign currency gains (losses) in other income 711 2,056 1,569 353 4,689 (810) (516) (1,326) $486 $1,350 $829 $583 $3,248 $(278) $721 $443 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): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Operating income $470 $710 $1,166 $1,900 $4,246 $1,632 $1,222 $2,854 Foreign currency gains (losses) in other income 809 2,085 1,713 738 5,345 (283) (31) (314) Total impact of changes in the Indian Rupee $1,279 $2,795 $2,879 $2,638 $9,591 $1,349 $1,191 $2,540 4. Other income includes the following components (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Interest income $19 $92 $112 $373 $596 $969 $1,555 $2,524 Foreign currency gains (losses) 711 2,056 1,569 353 4,689 (810) (516) (1,326) Other non-operating income (expense) 8 95 (69) 102 136 (16) 2 (14) Total other income (loss) $738 $2,243 $1,612 $828 $5,421 $143 $1,041 $1,184 5. Capital expenditures are as follows (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Capital expenditures $1,159 $1,084 $1,909 $2,435 $6,587 $666 $1,009 $1,675 6. Stock Repurchase Activity (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Shares purchased under publicly announced buy-back program 383 417 347 206 1,353 515 381 896 Shares withheld for taxes due upon vesting of restricted stock units 203 4 8 2 217 208 4 212 Total shares purchased 586 421 355 208 1,570 723 385 1,108 Total cash paid for shares purchased under publicly announced buy-back program $49,965 $50,151 $50,000 $25,234 $175,350 $74,177 $66,769 $140,946 Total cash paid for shares withheld for taxes due upon vesting of restricted stock units 27,143 528 1,242 197 29,110 27,511 658 28,169 Total cash paid for shares repurchased $77,108 $50,679 $51,242 $25,431 $204,460 $101,688 $67,427 $169,115 7. Remaining Performance Obligations We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Approximately 98% of our RPO represent cloud native subscriptions with a non-cancelable term 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 are not included in the RPO. Our RPO as of the end of each period appears below (in thousands): March 31, 2022 June 30, 2022 September 30, 2022 December 30, 2022 March 31, 2023 June 30, 2023 Remaining Performance Obligations $ 809,540 $ 897,680 $ 969,603 $ 1,051,544 $ 1,153,404 $ 1,238,672 8. The 2017 U.S. Tax Cuts and Jobs Act eliminated the expensing of research and development costs as incurred for tax purposes beginning in 2022. This law changes the timing of cash tax payments, increasing near-term taxable income and payments, but normalizing over time as these expenses are amortized. Our income tax payments increased by approximately $26 million in 2022 due to this law change and we expect a similar negative impact for 2023. While there is still a possibility that legislation may be enacted that defers or eliminates the requirement to capitalize these costs, our current outlook factors in higher cash taxes as we will be required to make these payments, unless the existing law is amended. This legislation does not impact earnings per share, does not create any incremental expense obligation, and does not impact our ability to operationally grow cash flow. 9. Guideposts The following table shows our (i) actual 2022 cloud revenue and remaining performance obligations (“RPO”) results, (ii) revised 2023 cloud revenue guidepost, (iii) 2023 RPO guidepost published as of October 25, 2022, and (iv) guideposts published as of February 1, 2022, for cloud revenue and RPO for 2024. Current Guideposts ($'s in millions) Cloud Revenue Year Low Mid High % Growth(1) 2022⁽²⁾ $176 $176 $176 44% 2023⁽³⁾ $246 $247 $248 40% 2024⁽⁵⁾ $310 $328 $345 33% Remaining Performance Obligations Year Low Mid High % Growth(1) 2022⁽²⁾ $1,052 $1,052 $1,052 50% 2023⁽⁴⁾ $1,300 $1,350 $1,400 28% 2024⁽⁵⁾ $1,600 $1,700 $1,800 26% (1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points. (2) Amounts reflect actual results for 2022. (3) Amounts reflect revised range as of July 25, 2023. (4) Amounts remain unchanged from October 25, 2022. (5) Amounts remain unchanged from February 1, 2022. These guideposts are forward-looking statements and are subject to all the risks and uncertainties applicable to our shorter-term 2023 Guidance, as stated above. In addition, the further into the future we project our financial expectations, the greater the risk that actual results will differ materially; consequently, our guideposts for the following fiscal year may be inherently more uncertain than our guideposts for this fiscal year, or than our 2023 Guidance published above. View source version on businesswire.com: https://www.businesswire.com/news/home/20230725047795/en/Contacts 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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Manhattan Associates Reports Record Revenue and Earnings By: Manhattan Associates Inc. via Business Wire July 25, 2023 at 16:05 PM EDT RPO Bookings Increase 38% over Prior Year on Strong Demand Company Raises 2023 Full-Year Guidance Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $231.0 million for the second quarter ended June 30, 2023. GAAP diluted earnings per share for Q2 2023 was $0.63 compared to $0.49 in Q2 2022. Non-GAAP adjusted diluted earnings per share for Q2 2023 was $0.88 compared to $0.69 in Q2 2022. “Manhattan delivered record second quarter and first half results. Robust demand drove Q2 cloud revenue growth of 44% and service revenue growth of 23%. These strong results exceeded our expectations, leading to our top-line outperformance and solid earnings leverage in the quarter,” said Manhattan Associates president and CEO Eddie Capel. “While appropriately cautious regarding the global economy, we are optimistic on our opportunity. To extend our leadership position, we remain committed to investing in industry leading innovation across supply chain execution, omnichannel and retail point of sale markets to best help our customers achieve more by digitally transforming their businesses,” Mr. Capel concluded. SECOND QUARTER 2023 FINANCIAL SUMMARY: Consolidated total revenue was $231.0 million for Q2 2023, compared to $191.9 million for Q2 2022. Cloud subscription revenue was $60.9 million for Q2 2023, compared to $42.2 million for Q2 2022. License revenue was $3.7 million for Q2 2023, compared to $5.1 million for Q2 2022. Services revenue was $124.6 million for Q2 2023, compared to $100.9 million for Q2 2022. GAAP diluted earnings per share was $0.63 for Q2 2023, compared to $0.49 for Q2 2022. Adjusted diluted earnings per share, a non-GAAP measure, was $0.88 for Q2 2023, compared to $0.69 for Q2 2022. GAAP operating income was $50.5 million for Q2 2023, compared to $37.3 million for Q2 2022. Adjusted operating income, a non-GAAP measure, was $68.4 million for Q2 2023, compared to $52.8 million for Q2 2022. Cash flow from operations was $40.6 million for Q2 2023, compared to $52.7 million for Q2 2022. Days Sales Outstanding was 70 days at June 30, 2023, compared to 65 days at March 31, 2023. Cash totaled $153.3 million at June 30, 2023, compared to $181.6 million at March 31, 2023. During the three months ended June 30, 2023, the Company repurchased 381,357 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $66.8 million. In July 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock. SIX MONTH 2023 FINANCIAL SUMMARY: Consolidated total revenue for the six months ended June 30, 2023, was $452.0 million, compared to $370.9 million for the six months ended June 30, 2022. Cloud subscription revenue was $118.2 million for the six months ended June 30, 2023, compared to $79.5 million for the six months ended June 30, 2022. License revenue was $9.1 million for the six months ended June 30, 2023, compared to $13.5 million for the six months ended June 30, 2022. Services revenue was $240.8 million for the six months ended June 30, 2023, compared to $190.9 million for the six months ended June 30, 2022. GAAP diluted earnings per share for the six months ended June 30, 2023, was $1.25, compared to $0.97 for the six months ended June 30, 2022. Adjusted diluted earnings per share, a non-GAAP measure, was $1.67 for the six months ended June 30, 2023, compared to $1.29 for the six months ended June 30, 2022. GAAP operating income was $97.6 million for the six months ended June 30, 2023, compared to $71.2 million for the six months ended June 30, 2022. Adjusted operating income, a non-GAAP measure, was $132.1 million for the six months ended June 30, 2023, compared to $100.9 million for the six months ended June 30, 2022. Cash flow from operations was $99.3 million for the six months ended June 30, 2023, compared to $84.5 million for the six months ended June 30, 2022. During the six months ended June 30, 2023, the Company repurchased 896,195 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $140.9 million. 2023 GUIDANCE Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2023: Guidance Range - 2023 Full Year ($'s in millions, except operating margin and EPS) $ Range % Growth Range Total revenue - current guidance $886 $894 15% 17% Operating margin: GAAP operating margin - current guidance 19.5% 19.8% Equity-based compensation 7.9% 7.8% Adjusted operating margin(1) - current guidance 27.4% 27.6% Diluted earnings per share (EPS): GAAP EPS - current guidance $2.18 $2.22 7% 9% Equity-based compensation, net of tax 0.95 0.95 Excess tax benefit on stock vesting(2) (0.06) (0.06) Adjusted EPS(1) - current guidance $3.07 $3.11 11% 13% (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 2023. 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 and guideposts in the supplemental information below, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. Those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release. 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 and guideposts, should be considered historical only, and Manhattan Associates disclaims any obligation to update them. CONFERENCE CALL Manhattan Associates’ conference call regarding its second quarter 2023 financial results will be held today, July 25, 2023, 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’ third quarter 2023 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 six months ended June 30, 2023. 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. 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 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 “2023 Guidance” and “Guideposts,” statements we make about market adoption of our cloud-based solution and other 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 in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; disruption in the retail sector; risks related to our products’ technology and customer implementations; global instability, including the war in Ukraine; 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, 2022, 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) Revenue: Cloud subscriptions $60,943 $42,203 $118,163 $79,500 Software license 3,745 5,125 9,097 13,483 Maintenance 35,826 35,993 71,476 71,295 Services 124,609 100,941 240,779 190,859 Hardware 5,893 7,662 12,514 15,743 Total revenue 231,016 191,924 452,029 370,880 Costs and expenses: Cost of cloud subscriptions, maintenance and services 108,445 87,766 211,772 170,791 Cost of software license 368 880 670 1,282 Research and development 31,600 27,924 62,394 55,379 Sales and marketing 18,563 17,749 36,628 32,139 General and administrative 20,237 18,606 40,190 36,571 Depreciation and amortization 1,320 1,746 2,807 3,493 Total costs and expenses 180,533 154,671 354,461 299,655 Operating income 50,483 37,253 97,568 71,225 Other income, net 1,041 2,243 1,184 2,981 Income before income taxes 51,524 39,496 98,752 74,206 Income tax provision 11,904 8,671 20,341 12,789 Net income $39,620 $30,825 $78,411 $61,417 Basic earnings per share $0.64 $0.49 $1.26 $0.97 Diluted earnings per share $0.63 $0.49 $1.25 $0.97 Weighted average number of shares: Basic 61,862 62,954 62,036 63,083 Diluted 62,432 63,419 62,599 63,644 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Reconciliation of Selected GAAP to Non-GAAP Measures (in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating income $50,483 $37,253 $97,568 $71,225 Equity-based compensation (a) 17,928 15,538 34,568 29,676 Adjusted operating income (Non-GAAP) $68,411 $52,791 $132,136 $100,901 Income tax provision $11,904 $8,671 $20,341 $12,789 Equity-based compensation (a) 2,628 2,566 5,037 4,748 Tax benefit of stock awards vested (b) 281 8 3,236 4,383 Adjusted income tax provision (Non-GAAP) $14,813 $11,245 $28,614 $21,920 Net income $39,620 $30,825 $78,411 $61,417 Equity-based compensation (a) 15,300 12,972 29,531 24,928 Tax benefit of stock awards vested (b) (281) (8) (3,236) (4,383) Adjusted net income (Non-GAAP) $54,639 $43,789 $104,706 $81,962 Diluted EPS $0.63 $0.49 $1.25 $0.97 Equity-based compensation (a) 0.25 0.20 0.47 0.39 Tax benefit of stock awards vested (b) - - (0.05) (0.07) Adjusted diluted EPS (Non-GAAP) $0.88 $0.69 $1.67 $1.29 Fully diluted shares 62,432 63,419 62,599 63,644 (a) Adjusted results exclude all equity-based compensation 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 due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of services $7,178 $5,822 $13,694 $10,959 Research and development 3,915 3,425 7,570 6,614 Sales and marketing 1,807 1,546 3,455 2,952 General and administrative 5,028 4,745 9,849 9,151 Total equity-based compensation $17,928 $15,538 $34,568 $29,676 (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) June 30, 2023 December 31, 2022 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 153,294 $ 225,463 Accounts receivable, net of allowance of $5,903 and $6,009, at June 30, 2023 and December 31, 2022, respectively 178,453 166,767 Prepaid expenses and other current assets 28,272 23,145 Total current assets 360,019 415,375 Property and equipment, net 11,754 12,803 Operating lease right-of-use assets 16,052 17,794 Goodwill, net 62,233 62,230 Deferred income taxes 48,259 37,206 Other assets 28,677 24,770 Total assets $ 526,994 $ 570,178 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,124 $ 25,701 Accrued compensation and benefits 51,937 54,469 Accrued and other liabilities 25,339 24,569 Deferred revenue 227,100 208,807 Income taxes payable 109 2,049 Total current liabilities 330,609 315,595 Operating lease liabilities, long-term 12,459 14,065 Other non-current liabilities 13,376 13,718 Shareholders' equity: Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2023 and 2022 - - Common stock, $0.01 par value; 200,000,000 shares authorized; 61,668,512 and 62,191,570 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively 617 621 Retained earnings 196,673 253,711 Accumulated other comprehensive loss (26,740 ) (27,532 ) Total shareholders' equity 170,550 226,800 Total liabilities and shareholders' equity $ 526,994 $ 570,178 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) Six Months Ended June 30, 2023 2022 (unaudited) (unaudited) Operating activities: Net income $ 78,411 $ 61,417 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,807 3,493 Equity-based compensation 34,568 29,676 Loss (gain) on disposal of equipment 22 (92 ) Deferred income taxes (11,038 ) (12,535 ) Unrealized foreign currency loss (gain) 1,577 (2,087 ) Changes in operating assets and liabilities: Accounts receivable, net (11,024 ) (11,703 ) Other assets (5,825 ) (6,697 ) Accounts payable, accrued and other liabilities (2,593 ) (587 ) Income taxes (5,359 ) (3,519 ) Deferred revenue 17,740 27,116 Net cash provided by operating activities 99,286 84,482 Investing activities: Purchase of property and equipment (1,675 ) (2,243 ) Net cash used in investing activities (1,675 ) (2,243 ) Financing activities: Repurchase of common stock (169,115 ) (127,787 ) Net cash used in financing activities (169,115 ) (127,787 ) Foreign currency impact on cash (665 ) (4,387 ) Net change in cash and cash equivalents (72,169 ) (49,935 ) Cash and cash equivalents at beginning of period 225,463 263,706 Cash and cash equivalents at end of period $ 153,294 $ 213,771 MANHATTAN ASSOCIATES, INC. SUPPLEMENTAL INFORMATION 1. GAAP and adjusted earnings per share by quarter are as follows: 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD GAAP Diluted EPS $0.48 $0.49 $0.47 $0.60 $2.03 $0.62 $0.63 $1.25 Adjustments to GAAP: Equity-based compensation 0.19 0.20 0.19 0.21 0.79 0.23 0.25 0.47 Tax benefit of stock awards vested (0.07) - - - (0.07) (0.05) - (0.05) Adjusted Diluted EPS $0.60 $0.69 $0.66 $0.81 $2.76 $0.80 $0.88 $1.67 Fully Diluted Shares 63,871 63,419 63,165 63,028 63,408 62,767 62,432 62,599 2. Revenues and operating income by reportable segment are as follows (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue: Americas $139,540 $151,996 $156,674 $155,674 $603,884 $170,759 $179,208 $349,967 EMEA 32,151 31,614 31,843 33,330 128,938 39,658 40,902 80,560 APAC 7,265 8,314 9,584 9,099 34,262 10,596 10,906 21,502 $178,956 $191,924 $198,101 $198,103 $767,084 $221,013 $231,016 $452,029 GAAP Operating Income: Americas $21,393 $24,507 $22,914 $30,475 $99,289 $29,647 $32,326 $61,973 EMEA 10,517 9,423 9,851 10,239 40,030 12,793 13,556 26,349 APAC 2,062 3,323 4,005 3,991 13,381 4,645 4,601 9,246 $33,972 $37,253 $36,770 $44,705 $152,700 $47,085 $50,483 $97,568 Adjustments (pre-tax): Americas: Equity-based compensation $14,138 $15,538 $14,533 $15,152 $59,361 $16,640 $17,928 $34,568 $14,138 $15,538 $14,533 $15,152 $59,361 $16,640 $17,928 $34,568 Adjusted non-GAAP Operating Income: Americas $35,531 $40,045 $37,447 $45,627 $158,650 $46,287 $50,254 $96,541 EMEA 10,517 9,423 9,851 10,239 40,030 12,793 13,556 26,349 APAC 2,062 3,323 4,005 3,991 13,381 4,645 4,601 9,246 $48,110 $52,791 $51,303 $59,857 $212,061 $63,725 $68,411 $132,136 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): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue $(2,268) $(4,568) $(6,152) $(5,124) $(18,112) $(3,084) $104 $(2,980) Costs and expenses (2,043) (3,862) (5,412) (5,354) (16,671) (3,616) (1,133) (4,749) Operating income (225) (706) (740) 230 (1,441) 532 1,237 1,769 Foreign currency gains (losses) in other income 711 2,056 1,569 353 4,689 (810) (516) (1,326) $486 $1,350 $829 $583 $3,248 $(278) $721 $443 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): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Operating income $470 $710 $1,166 $1,900 $4,246 $1,632 $1,222 $2,854 Foreign currency gains (losses) in other income 809 2,085 1,713 738 5,345 (283) (31) (314) Total impact of changes in the Indian Rupee $1,279 $2,795 $2,879 $2,638 $9,591 $1,349 $1,191 $2,540 4. Other income includes the following components (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Interest income $19 $92 $112 $373 $596 $969 $1,555 $2,524 Foreign currency gains (losses) 711 2,056 1,569 353 4,689 (810) (516) (1,326) Other non-operating income (expense) 8 95 (69) 102 136 (16) 2 (14) Total other income (loss) $738 $2,243 $1,612 $828 $5,421 $143 $1,041 $1,184 5. Capital expenditures are as follows (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Capital expenditures $1,159 $1,084 $1,909 $2,435 $6,587 $666 $1,009 $1,675 6. Stock Repurchase Activity (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Shares purchased under publicly announced buy-back program 383 417 347 206 1,353 515 381 896 Shares withheld for taxes due upon vesting of restricted stock units 203 4 8 2 217 208 4 212 Total shares purchased 586 421 355 208 1,570 723 385 1,108 Total cash paid for shares purchased under publicly announced buy-back program $49,965 $50,151 $50,000 $25,234 $175,350 $74,177 $66,769 $140,946 Total cash paid for shares withheld for taxes due upon vesting of restricted stock units 27,143 528 1,242 197 29,110 27,511 658 28,169 Total cash paid for shares repurchased $77,108 $50,679 $51,242 $25,431 $204,460 $101,688 $67,427 $169,115 7. Remaining Performance Obligations We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Approximately 98% of our RPO represent cloud native subscriptions with a non-cancelable term 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 are not included in the RPO. Our RPO as of the end of each period appears below (in thousands): March 31, 2022 June 30, 2022 September 30, 2022 December 30, 2022 March 31, 2023 June 30, 2023 Remaining Performance Obligations $ 809,540 $ 897,680 $ 969,603 $ 1,051,544 $ 1,153,404 $ 1,238,672 8. The 2017 U.S. Tax Cuts and Jobs Act eliminated the expensing of research and development costs as incurred for tax purposes beginning in 2022. This law changes the timing of cash tax payments, increasing near-term taxable income and payments, but normalizing over time as these expenses are amortized. Our income tax payments increased by approximately $26 million in 2022 due to this law change and we expect a similar negative impact for 2023. While there is still a possibility that legislation may be enacted that defers or eliminates the requirement to capitalize these costs, our current outlook factors in higher cash taxes as we will be required to make these payments, unless the existing law is amended. This legislation does not impact earnings per share, does not create any incremental expense obligation, and does not impact our ability to operationally grow cash flow. 9. Guideposts The following table shows our (i) actual 2022 cloud revenue and remaining performance obligations (“RPO”) results, (ii) revised 2023 cloud revenue guidepost, (iii) 2023 RPO guidepost published as of October 25, 2022, and (iv) guideposts published as of February 1, 2022, for cloud revenue and RPO for 2024. Current Guideposts ($'s in millions) Cloud Revenue Year Low Mid High % Growth(1) 2022⁽²⁾ $176 $176 $176 44% 2023⁽³⁾ $246 $247 $248 40% 2024⁽⁵⁾ $310 $328 $345 33% Remaining Performance Obligations Year Low Mid High % Growth(1) 2022⁽²⁾ $1,052 $1,052 $1,052 50% 2023⁽⁴⁾ $1,300 $1,350 $1,400 28% 2024⁽⁵⁾ $1,600 $1,700 $1,800 26% (1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points. (2) Amounts reflect actual results for 2022. (3) Amounts reflect revised range as of July 25, 2023. (4) Amounts remain unchanged from October 25, 2022. (5) Amounts remain unchanged from February 1, 2022. These guideposts are forward-looking statements and are subject to all the risks and uncertainties applicable to our shorter-term 2023 Guidance, as stated above. In addition, the further into the future we project our financial expectations, the greater the risk that actual results will differ materially; consequently, our guideposts for the following fiscal year may be inherently more uncertain than our guideposts for this fiscal year, or than our 2023 Guidance published above. View source version on businesswire.com: https://www.businesswire.com/news/home/20230725047795/en/Contacts 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
Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $231.0 million for the second quarter ended June 30, 2023. GAAP diluted earnings per share for Q2 2023 was $0.63 compared to $0.49 in Q2 2022. Non-GAAP adjusted diluted earnings per share for Q2 2023 was $0.88 compared to $0.69 in Q2 2022. “Manhattan delivered record second quarter and first half results. Robust demand drove Q2 cloud revenue growth of 44% and service revenue growth of 23%. These strong results exceeded our expectations, leading to our top-line outperformance and solid earnings leverage in the quarter,” said Manhattan Associates president and CEO Eddie Capel. “While appropriately cautious regarding the global economy, we are optimistic on our opportunity. To extend our leadership position, we remain committed to investing in industry leading innovation across supply chain execution, omnichannel and retail point of sale markets to best help our customers achieve more by digitally transforming their businesses,” Mr. Capel concluded. SECOND QUARTER 2023 FINANCIAL SUMMARY: Consolidated total revenue was $231.0 million for Q2 2023, compared to $191.9 million for Q2 2022. Cloud subscription revenue was $60.9 million for Q2 2023, compared to $42.2 million for Q2 2022. License revenue was $3.7 million for Q2 2023, compared to $5.1 million for Q2 2022. Services revenue was $124.6 million for Q2 2023, compared to $100.9 million for Q2 2022. GAAP diluted earnings per share was $0.63 for Q2 2023, compared to $0.49 for Q2 2022. Adjusted diluted earnings per share, a non-GAAP measure, was $0.88 for Q2 2023, compared to $0.69 for Q2 2022. GAAP operating income was $50.5 million for Q2 2023, compared to $37.3 million for Q2 2022. Adjusted operating income, a non-GAAP measure, was $68.4 million for Q2 2023, compared to $52.8 million for Q2 2022. Cash flow from operations was $40.6 million for Q2 2023, compared to $52.7 million for Q2 2022. Days Sales Outstanding was 70 days at June 30, 2023, compared to 65 days at March 31, 2023. Cash totaled $153.3 million at June 30, 2023, compared to $181.6 million at March 31, 2023. During the three months ended June 30, 2023, the Company repurchased 381,357 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $66.8 million. In July 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock. SIX MONTH 2023 FINANCIAL SUMMARY: Consolidated total revenue for the six months ended June 30, 2023, was $452.0 million, compared to $370.9 million for the six months ended June 30, 2022. Cloud subscription revenue was $118.2 million for the six months ended June 30, 2023, compared to $79.5 million for the six months ended June 30, 2022. License revenue was $9.1 million for the six months ended June 30, 2023, compared to $13.5 million for the six months ended June 30, 2022. Services revenue was $240.8 million for the six months ended June 30, 2023, compared to $190.9 million for the six months ended June 30, 2022. GAAP diluted earnings per share for the six months ended June 30, 2023, was $1.25, compared to $0.97 for the six months ended June 30, 2022. Adjusted diluted earnings per share, a non-GAAP measure, was $1.67 for the six months ended June 30, 2023, compared to $1.29 for the six months ended June 30, 2022. GAAP operating income was $97.6 million for the six months ended June 30, 2023, compared to $71.2 million for the six months ended June 30, 2022. Adjusted operating income, a non-GAAP measure, was $132.1 million for the six months ended June 30, 2023, compared to $100.9 million for the six months ended June 30, 2022. Cash flow from operations was $99.3 million for the six months ended June 30, 2023, compared to $84.5 million for the six months ended June 30, 2022. During the six months ended June 30, 2023, the Company repurchased 896,195 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $140.9 million. 2023 GUIDANCE Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2023: Guidance Range - 2023 Full Year ($'s in millions, except operating margin and EPS) $ Range % Growth Range Total revenue - current guidance $886 $894 15% 17% Operating margin: GAAP operating margin - current guidance 19.5% 19.8% Equity-based compensation 7.9% 7.8% Adjusted operating margin(1) - current guidance 27.4% 27.6% Diluted earnings per share (EPS): GAAP EPS - current guidance $2.18 $2.22 7% 9% Equity-based compensation, net of tax 0.95 0.95 Excess tax benefit on stock vesting(2) (0.06) (0.06) Adjusted EPS(1) - current guidance $3.07 $3.11 11% 13% (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 2023. 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 and guideposts in the supplemental information below, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. Those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release. 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 and guideposts, should be considered historical only, and Manhattan Associates disclaims any obligation to update them. CONFERENCE CALL Manhattan Associates’ conference call regarding its second quarter 2023 financial results will be held today, July 25, 2023, 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’ third quarter 2023 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 six months ended June 30, 2023. 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. 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 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 “2023 Guidance” and “Guideposts,” statements we make about market adoption of our cloud-based solution and other 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 in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; disruption in the retail sector; risks related to our products’ technology and customer implementations; global instability, including the war in Ukraine; 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, 2022, 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) Revenue: Cloud subscriptions $60,943 $42,203 $118,163 $79,500 Software license 3,745 5,125 9,097 13,483 Maintenance 35,826 35,993 71,476 71,295 Services 124,609 100,941 240,779 190,859 Hardware 5,893 7,662 12,514 15,743 Total revenue 231,016 191,924 452,029 370,880 Costs and expenses: Cost of cloud subscriptions, maintenance and services 108,445 87,766 211,772 170,791 Cost of software license 368 880 670 1,282 Research and development 31,600 27,924 62,394 55,379 Sales and marketing 18,563 17,749 36,628 32,139 General and administrative 20,237 18,606 40,190 36,571 Depreciation and amortization 1,320 1,746 2,807 3,493 Total costs and expenses 180,533 154,671 354,461 299,655 Operating income 50,483 37,253 97,568 71,225 Other income, net 1,041 2,243 1,184 2,981 Income before income taxes 51,524 39,496 98,752 74,206 Income tax provision 11,904 8,671 20,341 12,789 Net income $39,620 $30,825 $78,411 $61,417 Basic earnings per share $0.64 $0.49 $1.26 $0.97 Diluted earnings per share $0.63 $0.49 $1.25 $0.97 Weighted average number of shares: Basic 61,862 62,954 62,036 63,083 Diluted 62,432 63,419 62,599 63,644 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Reconciliation of Selected GAAP to Non-GAAP Measures (in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating income $50,483 $37,253 $97,568 $71,225 Equity-based compensation (a) 17,928 15,538 34,568 29,676 Adjusted operating income (Non-GAAP) $68,411 $52,791 $132,136 $100,901 Income tax provision $11,904 $8,671 $20,341 $12,789 Equity-based compensation (a) 2,628 2,566 5,037 4,748 Tax benefit of stock awards vested (b) 281 8 3,236 4,383 Adjusted income tax provision (Non-GAAP) $14,813 $11,245 $28,614 $21,920 Net income $39,620 $30,825 $78,411 $61,417 Equity-based compensation (a) 15,300 12,972 29,531 24,928 Tax benefit of stock awards vested (b) (281) (8) (3,236) (4,383) Adjusted net income (Non-GAAP) $54,639 $43,789 $104,706 $81,962 Diluted EPS $0.63 $0.49 $1.25 $0.97 Equity-based compensation (a) 0.25 0.20 0.47 0.39 Tax benefit of stock awards vested (b) - - (0.05) (0.07) Adjusted diluted EPS (Non-GAAP) $0.88 $0.69 $1.67 $1.29 Fully diluted shares 62,432 63,419 62,599 63,644 (a) Adjusted results exclude all equity-based compensation 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 due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of services $7,178 $5,822 $13,694 $10,959 Research and development 3,915 3,425 7,570 6,614 Sales and marketing 1,807 1,546 3,455 2,952 General and administrative 5,028 4,745 9,849 9,151 Total equity-based compensation $17,928 $15,538 $34,568 $29,676 (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) June 30, 2023 December 31, 2022 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 153,294 $ 225,463 Accounts receivable, net of allowance of $5,903 and $6,009, at June 30, 2023 and December 31, 2022, respectively 178,453 166,767 Prepaid expenses and other current assets 28,272 23,145 Total current assets 360,019 415,375 Property and equipment, net 11,754 12,803 Operating lease right-of-use assets 16,052 17,794 Goodwill, net 62,233 62,230 Deferred income taxes 48,259 37,206 Other assets 28,677 24,770 Total assets $ 526,994 $ 570,178 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,124 $ 25,701 Accrued compensation and benefits 51,937 54,469 Accrued and other liabilities 25,339 24,569 Deferred revenue 227,100 208,807 Income taxes payable 109 2,049 Total current liabilities 330,609 315,595 Operating lease liabilities, long-term 12,459 14,065 Other non-current liabilities 13,376 13,718 Shareholders' equity: Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2023 and 2022 - - Common stock, $0.01 par value; 200,000,000 shares authorized; 61,668,512 and 62,191,570 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively 617 621 Retained earnings 196,673 253,711 Accumulated other comprehensive loss (26,740 ) (27,532 ) Total shareholders' equity 170,550 226,800 Total liabilities and shareholders' equity $ 526,994 $ 570,178 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) Six Months Ended June 30, 2023 2022 (unaudited) (unaudited) Operating activities: Net income $ 78,411 $ 61,417 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,807 3,493 Equity-based compensation 34,568 29,676 Loss (gain) on disposal of equipment 22 (92 ) Deferred income taxes (11,038 ) (12,535 ) Unrealized foreign currency loss (gain) 1,577 (2,087 ) Changes in operating assets and liabilities: Accounts receivable, net (11,024 ) (11,703 ) Other assets (5,825 ) (6,697 ) Accounts payable, accrued and other liabilities (2,593 ) (587 ) Income taxes (5,359 ) (3,519 ) Deferred revenue 17,740 27,116 Net cash provided by operating activities 99,286 84,482 Investing activities: Purchase of property and equipment (1,675 ) (2,243 ) Net cash used in investing activities (1,675 ) (2,243 ) Financing activities: Repurchase of common stock (169,115 ) (127,787 ) Net cash used in financing activities (169,115 ) (127,787 ) Foreign currency impact on cash (665 ) (4,387 ) Net change in cash and cash equivalents (72,169 ) (49,935 ) Cash and cash equivalents at beginning of period 225,463 263,706 Cash and cash equivalents at end of period $ 153,294 $ 213,771 MANHATTAN ASSOCIATES, INC. SUPPLEMENTAL INFORMATION 1. GAAP and adjusted earnings per share by quarter are as follows: 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD GAAP Diluted EPS $0.48 $0.49 $0.47 $0.60 $2.03 $0.62 $0.63 $1.25 Adjustments to GAAP: Equity-based compensation 0.19 0.20 0.19 0.21 0.79 0.23 0.25 0.47 Tax benefit of stock awards vested (0.07) - - - (0.07) (0.05) - (0.05) Adjusted Diluted EPS $0.60 $0.69 $0.66 $0.81 $2.76 $0.80 $0.88 $1.67 Fully Diluted Shares 63,871 63,419 63,165 63,028 63,408 62,767 62,432 62,599 2. Revenues and operating income by reportable segment are as follows (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue: Americas $139,540 $151,996 $156,674 $155,674 $603,884 $170,759 $179,208 $349,967 EMEA 32,151 31,614 31,843 33,330 128,938 39,658 40,902 80,560 APAC 7,265 8,314 9,584 9,099 34,262 10,596 10,906 21,502 $178,956 $191,924 $198,101 $198,103 $767,084 $221,013 $231,016 $452,029 GAAP Operating Income: Americas $21,393 $24,507 $22,914 $30,475 $99,289 $29,647 $32,326 $61,973 EMEA 10,517 9,423 9,851 10,239 40,030 12,793 13,556 26,349 APAC 2,062 3,323 4,005 3,991 13,381 4,645 4,601 9,246 $33,972 $37,253 $36,770 $44,705 $152,700 $47,085 $50,483 $97,568 Adjustments (pre-tax): Americas: Equity-based compensation $14,138 $15,538 $14,533 $15,152 $59,361 $16,640 $17,928 $34,568 $14,138 $15,538 $14,533 $15,152 $59,361 $16,640 $17,928 $34,568 Adjusted non-GAAP Operating Income: Americas $35,531 $40,045 $37,447 $45,627 $158,650 $46,287 $50,254 $96,541 EMEA 10,517 9,423 9,851 10,239 40,030 12,793 13,556 26,349 APAC 2,062 3,323 4,005 3,991 13,381 4,645 4,601 9,246 $48,110 $52,791 $51,303 $59,857 $212,061 $63,725 $68,411 $132,136 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): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue $(2,268) $(4,568) $(6,152) $(5,124) $(18,112) $(3,084) $104 $(2,980) Costs and expenses (2,043) (3,862) (5,412) (5,354) (16,671) (3,616) (1,133) (4,749) Operating income (225) (706) (740) 230 (1,441) 532 1,237 1,769 Foreign currency gains (losses) in other income 711 2,056 1,569 353 4,689 (810) (516) (1,326) $486 $1,350 $829 $583 $3,248 $(278) $721 $443 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): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Operating income $470 $710 $1,166 $1,900 $4,246 $1,632 $1,222 $2,854 Foreign currency gains (losses) in other income 809 2,085 1,713 738 5,345 (283) (31) (314) Total impact of changes in the Indian Rupee $1,279 $2,795 $2,879 $2,638 $9,591 $1,349 $1,191 $2,540 4. Other income includes the following components (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Interest income $19 $92 $112 $373 $596 $969 $1,555 $2,524 Foreign currency gains (losses) 711 2,056 1,569 353 4,689 (810) (516) (1,326) Other non-operating income (expense) 8 95 (69) 102 136 (16) 2 (14) Total other income (loss) $738 $2,243 $1,612 $828 $5,421 $143 $1,041 $1,184 5. Capital expenditures are as follows (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Capital expenditures $1,159 $1,084 $1,909 $2,435 $6,587 $666 $1,009 $1,675 6. Stock Repurchase Activity (in thousands): 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Shares purchased under publicly announced buy-back program 383 417 347 206 1,353 515 381 896 Shares withheld for taxes due upon vesting of restricted stock units 203 4 8 2 217 208 4 212 Total shares purchased 586 421 355 208 1,570 723 385 1,108 Total cash paid for shares purchased under publicly announced buy-back program $49,965 $50,151 $50,000 $25,234 $175,350 $74,177 $66,769 $140,946 Total cash paid for shares withheld for taxes due upon vesting of restricted stock units 27,143 528 1,242 197 29,110 27,511 658 28,169 Total cash paid for shares repurchased $77,108 $50,679 $51,242 $25,431 $204,460 $101,688 $67,427 $169,115 7. Remaining Performance Obligations We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Approximately 98% of our RPO represent cloud native subscriptions with a non-cancelable term 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 are not included in the RPO. Our RPO as of the end of each period appears below (in thousands): March 31, 2022 June 30, 2022 September 30, 2022 December 30, 2022 March 31, 2023 June 30, 2023 Remaining Performance Obligations $ 809,540 $ 897,680 $ 969,603 $ 1,051,544 $ 1,153,404 $ 1,238,672 8. The 2017 U.S. Tax Cuts and Jobs Act eliminated the expensing of research and development costs as incurred for tax purposes beginning in 2022. This law changes the timing of cash tax payments, increasing near-term taxable income and payments, but normalizing over time as these expenses are amortized. Our income tax payments increased by approximately $26 million in 2022 due to this law change and we expect a similar negative impact for 2023. While there is still a possibility that legislation may be enacted that defers or eliminates the requirement to capitalize these costs, our current outlook factors in higher cash taxes as we will be required to make these payments, unless the existing law is amended. This legislation does not impact earnings per share, does not create any incremental expense obligation, and does not impact our ability to operationally grow cash flow. 9. Guideposts The following table shows our (i) actual 2022 cloud revenue and remaining performance obligations (“RPO”) results, (ii) revised 2023 cloud revenue guidepost, (iii) 2023 RPO guidepost published as of October 25, 2022, and (iv) guideposts published as of February 1, 2022, for cloud revenue and RPO for 2024. Current Guideposts ($'s in millions) Cloud Revenue Year Low Mid High % Growth(1) 2022⁽²⁾ $176 $176 $176 44% 2023⁽³⁾ $246 $247 $248 40% 2024⁽⁵⁾ $310 $328 $345 33% Remaining Performance Obligations Year Low Mid High % Growth(1) 2022⁽²⁾ $1,052 $1,052 $1,052 50% 2023⁽⁴⁾ $1,300 $1,350 $1,400 28% 2024⁽⁵⁾ $1,600 $1,700 $1,800 26% (1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points. (2) Amounts reflect actual results for 2022. (3) Amounts reflect revised range as of July 25, 2023. (4) Amounts remain unchanged from October 25, 2022. (5) Amounts remain unchanged from February 1, 2022. These guideposts are forward-looking statements and are subject to all the risks and uncertainties applicable to our shorter-term 2023 Guidance, as stated above. In addition, the further into the future we project our financial expectations, the greater the risk that actual results will differ materially; consequently, our guideposts for the following fiscal year may be inherently more uncertain than our guideposts for this fiscal year, or than our 2023 Guidance published above. View source version on businesswire.com: https://www.businesswire.com/news/home/20230725047795/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