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 First Quarter Results By: Manhattan Associates via Business Wire April 23, 2024 at 16:04 PM EDT RPO Bookings Increase 31% over Prior Year on Solid Demand Company Raises 2024 Full-Year Guidance Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $254.6 million for the first quarter ended March 31, 2024. GAAP diluted earnings per share for Q1 2024 was $0.86 compared to $0.62 in Q1 2023. Non-GAAP adjusted diluted earnings per share for Q1 2024 was $1.03 compared to $0.80 in Q1 2023. “We are very pleased with our solid start to 2024 and better than expected first quarter results. Manhattan’s fundamentals are strong, as demand continues to drive favorable pipeline and revenue momentum,” said Manhattan Associates president and CEO Eddie Capel. “While macro volatility persists, we are optimistic about our growing market opportunity. Our global teams are executing very well for our customers and are focused on delivering leading innovation across supply chain execution, Omni-channel solutions, and retail point of sale markets,” Mr. Capel concluded. FIRST QUARTER 2024 FINANCIAL SUMMARY: Consolidated total revenue for the three months ended March 31, 2024, was $254.6 million, compared to $221.0 million for the three months ended March 31, 2023. Cloud subscription revenue was $78.0 million for the three months ended March 31, 2024, compared to $57.2 million for the three months ended March 31, 2023. License revenue was $2.8 million for the three months ended March 31, 2024, compared to $5.4 million for the three months ended March 31, 2023. Services revenue was $132.2 million for the three months ended March 31, 2024, compared to $116.2 million for the three months ended March 31, 2023. GAAP diluted earnings per share for the three months ended March 31, 2024, was $0.86, compared to $0.62 for the three months ended March 31, 2023. Adjusted diluted earnings per share, a non-GAAP measure, was $1.03 for the three months ended March 31, 2024, compared to $0.80 for the three months ended March 31, 2023. GAAP operating income was $57.6 million for the three months ended March 31, 2024, compared to $47.1 million for the three months ended March 31, 2023. Adjusted operating income, a non-GAAP measure, was $79.7 million for the three months ended March 31, 2024, compared to $63.7 million for the three months ended March 31, 2023. Cash flow from operations was $54.7 million for the three months ended March 31, 2024, compared to $58.7 million for the three months ended March 31, 2023. Days Sales Outstanding was 74 days at March 31, 2024, compared to 70 days at December 2023. Cash totaled $207.5 million at March 31, 2024, compared to $270.7 million at December 31, 2023. During the three months ended March 31, 2024, the Company repurchased 293,592 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $73.4 million. In April 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 $ 1,026 $ 1,034 10 % 11 % Operating margin: GAAP operating margin - current guidance 20.8 % 21.2 % Equity-based compensation 8.8 % 8.7 % Adjusted operating margin(1) - current guidance 29.6 % 29.9 % Diluted earnings per share (EPS): GAAP EPS - current guidance $ 2.78 $ 2.86 -1 % 1 % Equity-based compensation, net of tax 1.22 1.22 Excess tax benefit on stock vesting(2) (0.14 ) (0.14 ) Adjusted EPS(1) - current guidance $ 3.86 $ 3.94 3 % 5 % (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 first quarter financial results will be held today, April 23, 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’ second 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 months ended March 31, 2024. Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation – 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 March 31, 2024 2023 (unaudited) (unaudited) Revenue: Cloud subscriptions $ 78,027 $ 57,220 Software license 2,810 5,352 Maintenance 34,972 35,650 Services 132,195 116,170 Hardware 6,548 6,621 Total revenue 254,552 221,013 Costs and expenses: Cost of cloud subscriptions, maintenance and services 118,955 103,327 Cost of software license 332 302 Research and development 35,010 30,794 Sales and marketing 19,929 18,065 General and administrative 21,203 19,953 Depreciation and amortization 1,493 1,487 Total costs and expenses 196,922 173,928 Operating income 57,630 47,085 Other income, net 996 143 Income before income taxes 58,626 47,228 Income tax provision 4,825 8,437 Net income $ 53,801 $ 38,791 Basic earnings per share $ 0.87 $ 0.62 Diluted earnings per share $ 0.86 $ 0.62 Weighted average number of shares: Basic 61,625 62,211 Diluted 62,493 62,767 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Reconciliation of Selected GAAP to Non-GAAP Measures (in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Operating income $ 57,630 $ 47,085 Equity-based compensation (a) 22,095 16,640 Adjusted operating income (Non-GAAP) $ 79,725 $ 63,725 Income tax provision $ 4,825 $ 8,437 Equity-based compensation (a) 3,436 2,409 Tax benefit of stock awards vested (b) 8,157 2,955 Adjusted income tax provision (Non-GAAP) $ 16,418 $ 13,801 Net income $ 53,801 $ 38,791 Equity-based compensation (a) 18,659 14,231 Tax benefit of stock awards vested (b) (8,157 ) (2,955 ) Adjusted net income (Non-GAAP) $ 64,303 $ 50,067 Diluted EPS $ 0.86 $ 0.62 Equity-based compensation (a) 0.30 0.23 Tax benefit of stock awards vested (b) (0.13 ) (0.05 ) Adjusted diluted EPS (Non-GAAP) $ 1.03 $ 0.80 Fully diluted shares 62,493 62,767 (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 March 31, 2024 2023 Cost of services $ 9,289 $ 6,516 Research and development 5,240 3,655 Sales and marketing 1,990 1,648 General and administrative 5,576 4,821 Total equity-based compensation $ 22,095 $ 16,640 (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) March 31, 2024 December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 207,524 $ 270,741 Accounts receivable, net of allowance 205,701 181,173 Prepaid expenses and other current assets 31,981 27,276 Total current assets 445,206 479,190 Property and equipment, net 12,684 11,795 Operating lease right-of-use assets 52,031 21,645 Goodwill, net 62,232 62,235 Deferred income taxes 69,868 66,043 Other assets 32,741 32,445 Total assets $ 674,762 $ 673,353 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,401 $ 24,508 Accrued compensation and benefits 48,517 73,210 Accrued and other liabilities 24,920 27,374 Deferred revenue 263,905 237,793 Income taxes payable 8,277 3,030 Total current liabilities 372,020 365,915 Operating lease liabilities, long-term 51,813 17,694 Other non-current liabilities 11,322 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; 61,569,549 and 61,566,037 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 615 615 Retained earnings 266,757 304,701 Accumulated other comprehensive loss (27,765 ) (27,038 ) Total shareholders' equity 239,607 278,278 Total liabilities and shareholders' equity $ 674,762 $ 673,353 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) Three Months Ended March 31, 2024 2023 (unaudited) (unaudited) Operating activities: Net income $ 53,801 $ 38,791 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,493 1,487 Equity-based compensation 22,095 16,640 (Gain) loss on disposal of equipment (138 ) 16 Deferred income taxes (3,869 ) (2,523 ) Unrealized foreign currency loss 501 1,167 Changes in operating assets and liabilities: Accounts receivable, net (25,434 ) 6,730 Other assets (4,520 ) (8,760 ) Accounts payable, accrued and other liabilities (20,809 ) (10,009 ) Income taxes 4,594 7,850 Deferred revenue 27,024 7,327 Net cash provided by operating activities 54,738 58,716 Investing activities: Purchase of property and equipment (2,321 ) (666 ) Net cash used in investing activities (2,321 ) (666 ) Financing activities: Repurchase of common stock (113,834 ) (101,688 ) Net cash used in financing activities (113,834 ) (101,688 ) Foreign currency impact on cash (1,800 ) (230 ) Net change in cash and cash equivalents (63,217 ) (43,868 ) Cash and cash equivalents at beginning of period 270,741 225,463 Cash and cash equivalents at end of period $ 207,524 $ 181,595 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 GAAP Diluted EPS $ 0.62 $ 0.63 $ 0.79 $ 0.78 $ 2.82 $ 0.86 Adjustments to GAAP: Equity-based compensation 0.23 0.25 0.26 0.25 0.97 0.30 Tax benefit of stock awards vested (0.05 ) - - - (0.06 ) (0.13 ) Adjusted Diluted EPS $ 0.80 $ 0.88 $ 1.05 $ 1.03 $ 3.74 $ 1.03 Fully Diluted Shares 62,767 62,432 62,310 62,555 62,608 62,493 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 Revenue: Americas $ 170,759 $ 179,208 $ 186,564 $ 182,664 $ 719,195 $ 196,312 EMEA 39,658 40,902 41,204 44,874 166,638 46,620 APAC 10,596 10,906 10,673 10,717 42,892 11,620 $ 221,013 $ 231,016 $ 238,441 $ 238,255 $ 928,725 $ 254,552 GAAP Operating Income: Americas $ 29,647 $ 32,326 $ 34,655 $ 38,530 $ 135,158 $ 36,687 EMEA 12,793 13,556 14,415 15,959 56,723 15,884 APAC 4,645 4,601 4,378 4,376 18,000 5,059 $ 47,085 $ 50,483 $ 53,448 $ 58,865 $ 209,881 $ 57,630 Adjustments (pre-tax): Americas: Equity-based compensation $ 16,640 $ 17,928 $ 19,030 $ 17,973 $ 71,571 $ 22,095 $ 16,640 $ 17,928 $ 19,030 $ 17,973 $ 71,571 $ 22,095 Adjusted non-GAAP Operating Income: Americas $ 46,287 $ 50,254 $ 53,685 $ 56,503 $ 206,729 $ 58,782 EMEA 12,793 13,556 14,415 15,959 56,723 15,884 APAC 4,645 4,601 4,378 4,376 18,000 5,059 $ 63,725 $ 68,411 $ 72,478 $ 76,838 $ 281,452 $ 79,725 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 Revenue $ (3,084 ) $ 104 $ 2,755 $ 2,341 $ 2,116 $ 648 Costs and expenses (3,616 ) (1,133 ) 1,033 1,212 (2,504 ) 176 Operating income 532 1,237 1,722 1,129 4,620 472 Foreign currency gains (losses) in other income (810 ) (516 ) 387 (527 ) (1,466 ) (564 ) $ (278 ) $ 721 $ 2,109 $ 602 $ 3,154 $ (92 ) 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 Operating income $ 1,632 $ 1,222 $ 728 $ 267 $ 3,849 $ 185 Foreign currency gains (losses) in other income (283 ) (31 ) 812 (105 ) 393 164 Total impact of changes in the Indian Rupee $ 1,349 $ 1,191 $ 1,540 $ 162 $ 4,242 $ 349 4. Other income includes the following components (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Interest income $ 969 $ 1,555 $ 1,371 $ 1,409 $ 5,304 $ 1,414 Foreign currency gains (losses) (810 ) (516 ) 387 (527 ) (1,466 ) (564 ) Other non-operating income (expense) (16 ) 2 (19 ) (15 ) (48 ) 146 Total other income (loss) $ 143 $ 1,041 $ 1,739 $ 867 $ 3,790 $ 996 5. Capital expenditures are as follows (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Capital expenditures $ 666 $ 1,009 $ 1,086 $ 1,969 $ 4,730 $ 2,321 6. Stock Repurchase Activity (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Shares purchased under publicly announced buy-back program 515 381 128 - 1,024 294 Shares withheld for taxes due upon vesting of restricted stock units 208 4 8 2 222 165 Total shares purchased 723 385 136 2 1,246 459 Total cash paid for shares purchased under publicly announced buy-back program $ 74,177 $ 66,769 $ 25,072 $ 0 $ 166,018 $ 73,411 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 Total cash paid for shares repurchased $ 101,688 $ 67,427 $ 26,601 $ 331 $ 196,047 $ 113,834 7. Remaining Performance Obligations We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Over 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 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 30, 2023 March 31, 2024 Remaining Performance Obligations $ 1,153,404 $ 1,238,672 $ 1,324,861 $ 1,427,854 $ 1,516,430 View source version on businesswire.com: https://www.businesswire.com/news/home/20240423967418/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. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Manhattan Associates Reports Record First Quarter Results By: Manhattan Associates via Business Wire April 23, 2024 at 16:04 PM EDT RPO Bookings Increase 31% over Prior Year on Solid Demand Company Raises 2024 Full-Year Guidance Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $254.6 million for the first quarter ended March 31, 2024. GAAP diluted earnings per share for Q1 2024 was $0.86 compared to $0.62 in Q1 2023. Non-GAAP adjusted diluted earnings per share for Q1 2024 was $1.03 compared to $0.80 in Q1 2023. “We are very pleased with our solid start to 2024 and better than expected first quarter results. Manhattan’s fundamentals are strong, as demand continues to drive favorable pipeline and revenue momentum,” said Manhattan Associates president and CEO Eddie Capel. “While macro volatility persists, we are optimistic about our growing market opportunity. Our global teams are executing very well for our customers and are focused on delivering leading innovation across supply chain execution, Omni-channel solutions, and retail point of sale markets,” Mr. Capel concluded. FIRST QUARTER 2024 FINANCIAL SUMMARY: Consolidated total revenue for the three months ended March 31, 2024, was $254.6 million, compared to $221.0 million for the three months ended March 31, 2023. Cloud subscription revenue was $78.0 million for the three months ended March 31, 2024, compared to $57.2 million for the three months ended March 31, 2023. License revenue was $2.8 million for the three months ended March 31, 2024, compared to $5.4 million for the three months ended March 31, 2023. Services revenue was $132.2 million for the three months ended March 31, 2024, compared to $116.2 million for the three months ended March 31, 2023. GAAP diluted earnings per share for the three months ended March 31, 2024, was $0.86, compared to $0.62 for the three months ended March 31, 2023. Adjusted diluted earnings per share, a non-GAAP measure, was $1.03 for the three months ended March 31, 2024, compared to $0.80 for the three months ended March 31, 2023. GAAP operating income was $57.6 million for the three months ended March 31, 2024, compared to $47.1 million for the three months ended March 31, 2023. Adjusted operating income, a non-GAAP measure, was $79.7 million for the three months ended March 31, 2024, compared to $63.7 million for the three months ended March 31, 2023. Cash flow from operations was $54.7 million for the three months ended March 31, 2024, compared to $58.7 million for the three months ended March 31, 2023. Days Sales Outstanding was 74 days at March 31, 2024, compared to 70 days at December 2023. Cash totaled $207.5 million at March 31, 2024, compared to $270.7 million at December 31, 2023. During the three months ended March 31, 2024, the Company repurchased 293,592 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $73.4 million. In April 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 $ 1,026 $ 1,034 10 % 11 % Operating margin: GAAP operating margin - current guidance 20.8 % 21.2 % Equity-based compensation 8.8 % 8.7 % Adjusted operating margin(1) - current guidance 29.6 % 29.9 % Diluted earnings per share (EPS): GAAP EPS - current guidance $ 2.78 $ 2.86 -1 % 1 % Equity-based compensation, net of tax 1.22 1.22 Excess tax benefit on stock vesting(2) (0.14 ) (0.14 ) Adjusted EPS(1) - current guidance $ 3.86 $ 3.94 3 % 5 % (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 first quarter financial results will be held today, April 23, 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’ second 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 months ended March 31, 2024. Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation – 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 March 31, 2024 2023 (unaudited) (unaudited) Revenue: Cloud subscriptions $ 78,027 $ 57,220 Software license 2,810 5,352 Maintenance 34,972 35,650 Services 132,195 116,170 Hardware 6,548 6,621 Total revenue 254,552 221,013 Costs and expenses: Cost of cloud subscriptions, maintenance and services 118,955 103,327 Cost of software license 332 302 Research and development 35,010 30,794 Sales and marketing 19,929 18,065 General and administrative 21,203 19,953 Depreciation and amortization 1,493 1,487 Total costs and expenses 196,922 173,928 Operating income 57,630 47,085 Other income, net 996 143 Income before income taxes 58,626 47,228 Income tax provision 4,825 8,437 Net income $ 53,801 $ 38,791 Basic earnings per share $ 0.87 $ 0.62 Diluted earnings per share $ 0.86 $ 0.62 Weighted average number of shares: Basic 61,625 62,211 Diluted 62,493 62,767 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Reconciliation of Selected GAAP to Non-GAAP Measures (in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Operating income $ 57,630 $ 47,085 Equity-based compensation (a) 22,095 16,640 Adjusted operating income (Non-GAAP) $ 79,725 $ 63,725 Income tax provision $ 4,825 $ 8,437 Equity-based compensation (a) 3,436 2,409 Tax benefit of stock awards vested (b) 8,157 2,955 Adjusted income tax provision (Non-GAAP) $ 16,418 $ 13,801 Net income $ 53,801 $ 38,791 Equity-based compensation (a) 18,659 14,231 Tax benefit of stock awards vested (b) (8,157 ) (2,955 ) Adjusted net income (Non-GAAP) $ 64,303 $ 50,067 Diluted EPS $ 0.86 $ 0.62 Equity-based compensation (a) 0.30 0.23 Tax benefit of stock awards vested (b) (0.13 ) (0.05 ) Adjusted diluted EPS (Non-GAAP) $ 1.03 $ 0.80 Fully diluted shares 62,493 62,767 (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 March 31, 2024 2023 Cost of services $ 9,289 $ 6,516 Research and development 5,240 3,655 Sales and marketing 1,990 1,648 General and administrative 5,576 4,821 Total equity-based compensation $ 22,095 $ 16,640 (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) March 31, 2024 December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 207,524 $ 270,741 Accounts receivable, net of allowance 205,701 181,173 Prepaid expenses and other current assets 31,981 27,276 Total current assets 445,206 479,190 Property and equipment, net 12,684 11,795 Operating lease right-of-use assets 52,031 21,645 Goodwill, net 62,232 62,235 Deferred income taxes 69,868 66,043 Other assets 32,741 32,445 Total assets $ 674,762 $ 673,353 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,401 $ 24,508 Accrued compensation and benefits 48,517 73,210 Accrued and other liabilities 24,920 27,374 Deferred revenue 263,905 237,793 Income taxes payable 8,277 3,030 Total current liabilities 372,020 365,915 Operating lease liabilities, long-term 51,813 17,694 Other non-current liabilities 11,322 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; 61,569,549 and 61,566,037 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 615 615 Retained earnings 266,757 304,701 Accumulated other comprehensive loss (27,765 ) (27,038 ) Total shareholders' equity 239,607 278,278 Total liabilities and shareholders' equity $ 674,762 $ 673,353 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) Three Months Ended March 31, 2024 2023 (unaudited) (unaudited) Operating activities: Net income $ 53,801 $ 38,791 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,493 1,487 Equity-based compensation 22,095 16,640 (Gain) loss on disposal of equipment (138 ) 16 Deferred income taxes (3,869 ) (2,523 ) Unrealized foreign currency loss 501 1,167 Changes in operating assets and liabilities: Accounts receivable, net (25,434 ) 6,730 Other assets (4,520 ) (8,760 ) Accounts payable, accrued and other liabilities (20,809 ) (10,009 ) Income taxes 4,594 7,850 Deferred revenue 27,024 7,327 Net cash provided by operating activities 54,738 58,716 Investing activities: Purchase of property and equipment (2,321 ) (666 ) Net cash used in investing activities (2,321 ) (666 ) Financing activities: Repurchase of common stock (113,834 ) (101,688 ) Net cash used in financing activities (113,834 ) (101,688 ) Foreign currency impact on cash (1,800 ) (230 ) Net change in cash and cash equivalents (63,217 ) (43,868 ) Cash and cash equivalents at beginning of period 270,741 225,463 Cash and cash equivalents at end of period $ 207,524 $ 181,595 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 GAAP Diluted EPS $ 0.62 $ 0.63 $ 0.79 $ 0.78 $ 2.82 $ 0.86 Adjustments to GAAP: Equity-based compensation 0.23 0.25 0.26 0.25 0.97 0.30 Tax benefit of stock awards vested (0.05 ) - - - (0.06 ) (0.13 ) Adjusted Diluted EPS $ 0.80 $ 0.88 $ 1.05 $ 1.03 $ 3.74 $ 1.03 Fully Diluted Shares 62,767 62,432 62,310 62,555 62,608 62,493 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 Revenue: Americas $ 170,759 $ 179,208 $ 186,564 $ 182,664 $ 719,195 $ 196,312 EMEA 39,658 40,902 41,204 44,874 166,638 46,620 APAC 10,596 10,906 10,673 10,717 42,892 11,620 $ 221,013 $ 231,016 $ 238,441 $ 238,255 $ 928,725 $ 254,552 GAAP Operating Income: Americas $ 29,647 $ 32,326 $ 34,655 $ 38,530 $ 135,158 $ 36,687 EMEA 12,793 13,556 14,415 15,959 56,723 15,884 APAC 4,645 4,601 4,378 4,376 18,000 5,059 $ 47,085 $ 50,483 $ 53,448 $ 58,865 $ 209,881 $ 57,630 Adjustments (pre-tax): Americas: Equity-based compensation $ 16,640 $ 17,928 $ 19,030 $ 17,973 $ 71,571 $ 22,095 $ 16,640 $ 17,928 $ 19,030 $ 17,973 $ 71,571 $ 22,095 Adjusted non-GAAP Operating Income: Americas $ 46,287 $ 50,254 $ 53,685 $ 56,503 $ 206,729 $ 58,782 EMEA 12,793 13,556 14,415 15,959 56,723 15,884 APAC 4,645 4,601 4,378 4,376 18,000 5,059 $ 63,725 $ 68,411 $ 72,478 $ 76,838 $ 281,452 $ 79,725 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 Revenue $ (3,084 ) $ 104 $ 2,755 $ 2,341 $ 2,116 $ 648 Costs and expenses (3,616 ) (1,133 ) 1,033 1,212 (2,504 ) 176 Operating income 532 1,237 1,722 1,129 4,620 472 Foreign currency gains (losses) in other income (810 ) (516 ) 387 (527 ) (1,466 ) (564 ) $ (278 ) $ 721 $ 2,109 $ 602 $ 3,154 $ (92 ) 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 Operating income $ 1,632 $ 1,222 $ 728 $ 267 $ 3,849 $ 185 Foreign currency gains (losses) in other income (283 ) (31 ) 812 (105 ) 393 164 Total impact of changes in the Indian Rupee $ 1,349 $ 1,191 $ 1,540 $ 162 $ 4,242 $ 349 4. Other income includes the following components (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Interest income $ 969 $ 1,555 $ 1,371 $ 1,409 $ 5,304 $ 1,414 Foreign currency gains (losses) (810 ) (516 ) 387 (527 ) (1,466 ) (564 ) Other non-operating income (expense) (16 ) 2 (19 ) (15 ) (48 ) 146 Total other income (loss) $ 143 $ 1,041 $ 1,739 $ 867 $ 3,790 $ 996 5. Capital expenditures are as follows (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Capital expenditures $ 666 $ 1,009 $ 1,086 $ 1,969 $ 4,730 $ 2,321 6. Stock Repurchase Activity (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Shares purchased under publicly announced buy-back program 515 381 128 - 1,024 294 Shares withheld for taxes due upon vesting of restricted stock units 208 4 8 2 222 165 Total shares purchased 723 385 136 2 1,246 459 Total cash paid for shares purchased under publicly announced buy-back program $ 74,177 $ 66,769 $ 25,072 $ 0 $ 166,018 $ 73,411 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 Total cash paid for shares repurchased $ 101,688 $ 67,427 $ 26,601 $ 331 $ 196,047 $ 113,834 7. Remaining Performance Obligations We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Over 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 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 30, 2023 March 31, 2024 Remaining Performance Obligations $ 1,153,404 $ 1,238,672 $ 1,324,861 $ 1,427,854 $ 1,516,430 View source version on businesswire.com: https://www.businesswire.com/news/home/20240423967418/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 $254.6 million for the first quarter ended March 31, 2024. GAAP diluted earnings per share for Q1 2024 was $0.86 compared to $0.62 in Q1 2023. Non-GAAP adjusted diluted earnings per share for Q1 2024 was $1.03 compared to $0.80 in Q1 2023. “We are very pleased with our solid start to 2024 and better than expected first quarter results. Manhattan’s fundamentals are strong, as demand continues to drive favorable pipeline and revenue momentum,” said Manhattan Associates president and CEO Eddie Capel. “While macro volatility persists, we are optimistic about our growing market opportunity. Our global teams are executing very well for our customers and are focused on delivering leading innovation across supply chain execution, Omni-channel solutions, and retail point of sale markets,” Mr. Capel concluded. FIRST QUARTER 2024 FINANCIAL SUMMARY: Consolidated total revenue for the three months ended March 31, 2024, was $254.6 million, compared to $221.0 million for the three months ended March 31, 2023. Cloud subscription revenue was $78.0 million for the three months ended March 31, 2024, compared to $57.2 million for the three months ended March 31, 2023. License revenue was $2.8 million for the three months ended March 31, 2024, compared to $5.4 million for the three months ended March 31, 2023. Services revenue was $132.2 million for the three months ended March 31, 2024, compared to $116.2 million for the three months ended March 31, 2023. GAAP diluted earnings per share for the three months ended March 31, 2024, was $0.86, compared to $0.62 for the three months ended March 31, 2023. Adjusted diluted earnings per share, a non-GAAP measure, was $1.03 for the three months ended March 31, 2024, compared to $0.80 for the three months ended March 31, 2023. GAAP operating income was $57.6 million for the three months ended March 31, 2024, compared to $47.1 million for the three months ended March 31, 2023. Adjusted operating income, a non-GAAP measure, was $79.7 million for the three months ended March 31, 2024, compared to $63.7 million for the three months ended March 31, 2023. Cash flow from operations was $54.7 million for the three months ended March 31, 2024, compared to $58.7 million for the three months ended March 31, 2023. Days Sales Outstanding was 74 days at March 31, 2024, compared to 70 days at December 2023. Cash totaled $207.5 million at March 31, 2024, compared to $270.7 million at December 31, 2023. During the three months ended March 31, 2024, the Company repurchased 293,592 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $73.4 million. In April 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 $ 1,026 $ 1,034 10 % 11 % Operating margin: GAAP operating margin - current guidance 20.8 % 21.2 % Equity-based compensation 8.8 % 8.7 % Adjusted operating margin(1) - current guidance 29.6 % 29.9 % Diluted earnings per share (EPS): GAAP EPS - current guidance $ 2.78 $ 2.86 -1 % 1 % Equity-based compensation, net of tax 1.22 1.22 Excess tax benefit on stock vesting(2) (0.14 ) (0.14 ) Adjusted EPS(1) - current guidance $ 3.86 $ 3.94 3 % 5 % (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 first quarter financial results will be held today, April 23, 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’ second 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 months ended March 31, 2024. Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation – 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 March 31, 2024 2023 (unaudited) (unaudited) Revenue: Cloud subscriptions $ 78,027 $ 57,220 Software license 2,810 5,352 Maintenance 34,972 35,650 Services 132,195 116,170 Hardware 6,548 6,621 Total revenue 254,552 221,013 Costs and expenses: Cost of cloud subscriptions, maintenance and services 118,955 103,327 Cost of software license 332 302 Research and development 35,010 30,794 Sales and marketing 19,929 18,065 General and administrative 21,203 19,953 Depreciation and amortization 1,493 1,487 Total costs and expenses 196,922 173,928 Operating income 57,630 47,085 Other income, net 996 143 Income before income taxes 58,626 47,228 Income tax provision 4,825 8,437 Net income $ 53,801 $ 38,791 Basic earnings per share $ 0.87 $ 0.62 Diluted earnings per share $ 0.86 $ 0.62 Weighted average number of shares: Basic 61,625 62,211 Diluted 62,493 62,767 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Reconciliation of Selected GAAP to Non-GAAP Measures (in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Operating income $ 57,630 $ 47,085 Equity-based compensation (a) 22,095 16,640 Adjusted operating income (Non-GAAP) $ 79,725 $ 63,725 Income tax provision $ 4,825 $ 8,437 Equity-based compensation (a) 3,436 2,409 Tax benefit of stock awards vested (b) 8,157 2,955 Adjusted income tax provision (Non-GAAP) $ 16,418 $ 13,801 Net income $ 53,801 $ 38,791 Equity-based compensation (a) 18,659 14,231 Tax benefit of stock awards vested (b) (8,157 ) (2,955 ) Adjusted net income (Non-GAAP) $ 64,303 $ 50,067 Diluted EPS $ 0.86 $ 0.62 Equity-based compensation (a) 0.30 0.23 Tax benefit of stock awards vested (b) (0.13 ) (0.05 ) Adjusted diluted EPS (Non-GAAP) $ 1.03 $ 0.80 Fully diluted shares 62,493 62,767 (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 March 31, 2024 2023 Cost of services $ 9,289 $ 6,516 Research and development 5,240 3,655 Sales and marketing 1,990 1,648 General and administrative 5,576 4,821 Total equity-based compensation $ 22,095 $ 16,640 (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) March 31, 2024 December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 207,524 $ 270,741 Accounts receivable, net of allowance 205,701 181,173 Prepaid expenses and other current assets 31,981 27,276 Total current assets 445,206 479,190 Property and equipment, net 12,684 11,795 Operating lease right-of-use assets 52,031 21,645 Goodwill, net 62,232 62,235 Deferred income taxes 69,868 66,043 Other assets 32,741 32,445 Total assets $ 674,762 $ 673,353 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,401 $ 24,508 Accrued compensation and benefits 48,517 73,210 Accrued and other liabilities 24,920 27,374 Deferred revenue 263,905 237,793 Income taxes payable 8,277 3,030 Total current liabilities 372,020 365,915 Operating lease liabilities, long-term 51,813 17,694 Other non-current liabilities 11,322 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; 61,569,549 and 61,566,037 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 615 615 Retained earnings 266,757 304,701 Accumulated other comprehensive loss (27,765 ) (27,038 ) Total shareholders' equity 239,607 278,278 Total liabilities and shareholders' equity $ 674,762 $ 673,353 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) Three Months Ended March 31, 2024 2023 (unaudited) (unaudited) Operating activities: Net income $ 53,801 $ 38,791 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,493 1,487 Equity-based compensation 22,095 16,640 (Gain) loss on disposal of equipment (138 ) 16 Deferred income taxes (3,869 ) (2,523 ) Unrealized foreign currency loss 501 1,167 Changes in operating assets and liabilities: Accounts receivable, net (25,434 ) 6,730 Other assets (4,520 ) (8,760 ) Accounts payable, accrued and other liabilities (20,809 ) (10,009 ) Income taxes 4,594 7,850 Deferred revenue 27,024 7,327 Net cash provided by operating activities 54,738 58,716 Investing activities: Purchase of property and equipment (2,321 ) (666 ) Net cash used in investing activities (2,321 ) (666 ) Financing activities: Repurchase of common stock (113,834 ) (101,688 ) Net cash used in financing activities (113,834 ) (101,688 ) Foreign currency impact on cash (1,800 ) (230 ) Net change in cash and cash equivalents (63,217 ) (43,868 ) Cash and cash equivalents at beginning of period 270,741 225,463 Cash and cash equivalents at end of period $ 207,524 $ 181,595 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 GAAP Diluted EPS $ 0.62 $ 0.63 $ 0.79 $ 0.78 $ 2.82 $ 0.86 Adjustments to GAAP: Equity-based compensation 0.23 0.25 0.26 0.25 0.97 0.30 Tax benefit of stock awards vested (0.05 ) - - - (0.06 ) (0.13 ) Adjusted Diluted EPS $ 0.80 $ 0.88 $ 1.05 $ 1.03 $ 3.74 $ 1.03 Fully Diluted Shares 62,767 62,432 62,310 62,555 62,608 62,493 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 Revenue: Americas $ 170,759 $ 179,208 $ 186,564 $ 182,664 $ 719,195 $ 196,312 EMEA 39,658 40,902 41,204 44,874 166,638 46,620 APAC 10,596 10,906 10,673 10,717 42,892 11,620 $ 221,013 $ 231,016 $ 238,441 $ 238,255 $ 928,725 $ 254,552 GAAP Operating Income: Americas $ 29,647 $ 32,326 $ 34,655 $ 38,530 $ 135,158 $ 36,687 EMEA 12,793 13,556 14,415 15,959 56,723 15,884 APAC 4,645 4,601 4,378 4,376 18,000 5,059 $ 47,085 $ 50,483 $ 53,448 $ 58,865 $ 209,881 $ 57,630 Adjustments (pre-tax): Americas: Equity-based compensation $ 16,640 $ 17,928 $ 19,030 $ 17,973 $ 71,571 $ 22,095 $ 16,640 $ 17,928 $ 19,030 $ 17,973 $ 71,571 $ 22,095 Adjusted non-GAAP Operating Income: Americas $ 46,287 $ 50,254 $ 53,685 $ 56,503 $ 206,729 $ 58,782 EMEA 12,793 13,556 14,415 15,959 56,723 15,884 APAC 4,645 4,601 4,378 4,376 18,000 5,059 $ 63,725 $ 68,411 $ 72,478 $ 76,838 $ 281,452 $ 79,725 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 Revenue $ (3,084 ) $ 104 $ 2,755 $ 2,341 $ 2,116 $ 648 Costs and expenses (3,616 ) (1,133 ) 1,033 1,212 (2,504 ) 176 Operating income 532 1,237 1,722 1,129 4,620 472 Foreign currency gains (losses) in other income (810 ) (516 ) 387 (527 ) (1,466 ) (564 ) $ (278 ) $ 721 $ 2,109 $ 602 $ 3,154 $ (92 ) 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 Operating income $ 1,632 $ 1,222 $ 728 $ 267 $ 3,849 $ 185 Foreign currency gains (losses) in other income (283 ) (31 ) 812 (105 ) 393 164 Total impact of changes in the Indian Rupee $ 1,349 $ 1,191 $ 1,540 $ 162 $ 4,242 $ 349 4. Other income includes the following components (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Interest income $ 969 $ 1,555 $ 1,371 $ 1,409 $ 5,304 $ 1,414 Foreign currency gains (losses) (810 ) (516 ) 387 (527 ) (1,466 ) (564 ) Other non-operating income (expense) (16 ) 2 (19 ) (15 ) (48 ) 146 Total other income (loss) $ 143 $ 1,041 $ 1,739 $ 867 $ 3,790 $ 996 5. Capital expenditures are as follows (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Capital expenditures $ 666 $ 1,009 $ 1,086 $ 1,969 $ 4,730 $ 2,321 6. Stock Repurchase Activity (in thousands): 2023 2024 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Shares purchased under publicly announced buy-back program 515 381 128 - 1,024 294 Shares withheld for taxes due upon vesting of restricted stock units 208 4 8 2 222 165 Total shares purchased 723 385 136 2 1,246 459 Total cash paid for shares purchased under publicly announced buy-back program $ 74,177 $ 66,769 $ 25,072 $ 0 $ 166,018 $ 73,411 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 Total cash paid for shares repurchased $ 101,688 $ 67,427 $ 26,601 $ 331 $ 196,047 $ 113,834 7. Remaining Performance Obligations We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Over 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 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 30, 2023 March 31, 2024 Remaining Performance Obligations $ 1,153,404 $ 1,238,672 $ 1,324,861 $ 1,427,854 $ 1,516,430 View source version on businesswire.com: https://www.businesswire.com/news/home/20240423967418/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
