Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $255.8 million for the fourth quarter ended December 31, 2024. GAAP ...
RPO Bookings Increase 25% over Prior Year on Strong Demand
ATLANTA: Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $255.8 million for the fourth quarter ended December 31, 2024. GAAP diluted earnings per share for Q4 2024 was $0.77 compared to $0.78 in Q4 2023. Non-GAAP adjusted diluted earnings per share for Q4 2024 was $1.17 compared to $1.03 in Q4 2023.
“Manhattan ended the year strong, posting record bookings that exceeded our expectations,” said Manhattan Associates president and CEO Eddie Capel. “In 2024, we surpassed the one billion in total revenue milestone and extended our position as the leading innovator in supply chain and omnichannel retail end-markets.
“We enter 2025 excited about our growing market opportunity and are executing well on our business strategy. While we remain appropriately cautious on the turbulent macro environment, our business momentum is solid, and our team is devoted to our customers’ success,” Mr. Capel concluded.
FOURTH QUARTER 2024 FINANCIAL SUMMARY:
FULL YEAR 2024 FINANCIAL SUMMARY:
2025 GUIDANCE
Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2025:
|
|
| ||||||||
|
| Guidance Range - 2025 Full Year |
| |||||||
| ($'s in millions, except operating margin and EPS) | $ Range |
| % Growth Range |
| |||||
|
|
|
|
|
|
|
|
|
| |
| Total revenue | $1,060 |
| $1,070 |
| 2% |
| 3% |
| |
|
|
|
|
|
|
|
|
|
| |
| Operating Margin: |
|
|
|
|
|
|
|
| |
| GAAP operating margin | 22.3% |
| 22.9% |
|
|
|
|
| |
| Equity-based compensation | 9.5% |
| 9.4% |
|
|
|
|
| |
| Unusual health insurance claim(3) | 1.0% |
| 1.0% |
|
|
|
|
| |
| Restructuring expense(4) | 0.2% |
| 0.2% |
|
|
|
|
| |
| Adjusted operating margin(1) | 33.0% |
| 33.5% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| Diluted earnings per share (EPS): |
|
|
|
|
|
|
|
| |
| GAAP EPS | $3.05 |
| $3.15 |
| -13% |
| -10% |
| |
| Equity-based compensation | 1.37 |
| 1.37 |
|
|
|
|
| |
| Excess tax benefit on stock vesting(2) | (0.12) |
| (0.12) |
|
|
|
|
| |
| Unusual health insurance claim(3) | 0.12 |
| 0.12 |
|
|
|
|
| |
| Restructuring expense(4) | 0.03 |
| 0.03 |
|
|
|
|
| |
| Adjusted EPS(1) | $4.45 |
| $4.55 |
| -6% |
| -4% |
| |
|
|
|
|
|
|
|
|
|
| |
| (1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based compensation, expense related to an unusual health insurance claim, restructuring expense, and the related income tax effects, if applicable. |
| ||||||||
| (2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2025. |
| ||||||||
| (3) Adjustment represents expense for an unusual health insurance claim. Based on the uncommonly large magnitude and nature of the claim, we do not believe that this expense reflects our normal operating activities, and we have excluded the amount from adjusted non-GAAP results. |
| ||||||||
| (4) In January 2025, the Company eliminated about 100 positions to align our services capacity with customer demand which has been impacted by short-term macro-economic uncertainty. We expect to record a pre-tax restructuring expense in the first quarter of 2025. |
| ||||||||
|
|
|
|
|
|
|
|
|
|
Manhattan Associates currently intends to publish in each quarterly earnings release certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below.
Manhattan Associates will make this earnings release and published expectations available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.
CONFERENCE CALL
Manhattan Associates’ conference call regarding its fourth quarter and twelve months ended December 31, 2024 financial results will be held today, January 28, 2025, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software. The Internet webcast will be available until Manhattan Associates’ first quarter 2025 earnings release.
GAAP VERSUS NON-GAAP PRESENTATION
Manhattan Associates provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and twelve months ended December 31, 2024.
Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation and expense related to an unusual health insurance claim – net of income tax effects. They also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes from the compensation expense recorded for financial reporting purposes. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.
ABOUT MANHATTAN ASSOCIATES
Manhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.
Manhattan Associates designs, builds and delivers leading edge cloud solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.
This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2025 Guidance” and statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including inflation; disruption and transformation in the retail sector and our vertical markets; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; global instability, including the wars in Ukraine and the Middle East; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Income | ||||||||
(in thousands, except per share amounts) | ||||||||
| Three Months Ended December 31, |
| Year Ended December 31, | |||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |
| (unaudited) |
| (unaudited) |
|
|
|
| |
Revenue: |
|
|
|
|
|
|
| |
Cloud subscriptions | $90,330 |
| $71,416 |
| $337,203 |
| $254,612 | |
Software license | 5,452 |
| 5,239 |
| 15,085 |
| 18,206 | |
Maintenance | 33,568 |
| 37,164 |
| 138,304 |
| 143,936 | |
Services | 119,482 |
| 119,125 |
| 525,517 |
| 487,869 | |
Hardware | 6,969 |
| 5,311 |
| 26,243 |
| 24,102 | |
Total revenue | 255,801 |
| 238,255 |
| 1,042,352 |
| 928,725 | |
Costs and expenses: |
|
|
|
|
|
|
| |
Cost of cloud subscriptions, maintenance and services | 112,739 |
| 106,349 |
| 469,659 |
| 429,263 | |
Cost of software license | 253 |
| 384 |
| 1,321 |
| 1,351 | |
Research and development | 32,996 |
| 31,327 |
| 137,689 |
| 126,814 | |
Sales and marketing | 20,307 |
| 20,212 |
| 75,976 |
| 74,490 | |
General and administrative | 27,187 |
| 19,613 |
| 89,810 |
| 81,174 | |
Depreciation and amortization | 1,631 |
| 1,505 |
| 6,301 |
| 5,752 | |
Total costs and expenses | 195,113 |
| 179,390 |
| 780,756 |
| 718,844 | |
Operating income | 60,688 |
| 58,865 |
| 261,596 |
| 209,881 | |
Other income, net | 1,996 |
| 867 |
| 5,218 |
| 3,790 | |
Income before income taxes | 62,684 |
| 59,732 |
| 266,814 |
| 213,671 | |
Income tax provision | 14,668 |
| 10,996 |
| 48,450 |
| 37,103 | |
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related newsLast NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readRocket Lab Launches Next Batch of Satellites for Kinéis Constellation$RKLB--Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today successfully launched… AO Mainnet Launches, Ushering in a New Era of Decentralized Computing…AO, a revolutionary platform for decentralized computing, launches its mainnet today following a highly successful testnet phase, with key milestones… DAT iQ heads to Manifest Vegas to help shippers and brokers prep for a…DAT Freight & Analytics will showcase its DAT iQ analytics platform for shippers and a new carrier identity-authentication system for DAT One customers… DYOPATH Named to CRN’s MSP 500 List for 2025DYOPATH announced today that CRN®, a brand of The Channel Company, has recognized DYOPATH on its Managed Service Provider (MSP) 500 list in the Elite… G11 Media Networks |