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Manhattan Associates Reports Record Fourth Quarter and Full Year Results

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 ...

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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:

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

FULL YEAR 2024 FINANCIAL SUMMARY:

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

2025 GUIDANCE

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

 

 

 

 

 

Guidance Range - 2025 Full Year

 

 

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

$ Range

 

% Growth Range

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$1,060

 

$1,070

 

2%

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin:

 

 

 

 

 

 

 

 

 

GAAP operating margin

22.3%

 

22.9%

 

 

 

 

 

 

Equity-based compensation

9.5%

 

9.4%

 

 

 

 

 

 

Unusual health insurance claim(3)

1.0%

 

1.0%

 

 

 

 

 

 

Restructuring expense(4)

0.2%

 

0.2%

 

 

 

 

 

 

Adjusted operating margin(1)

33.0%

 

33.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (EPS):

 

 

 

 

 

 

 

 

 

GAAP EPS

$3.05

 

$3.15

 

-13%

 

-10%

 

 

Equity-based compensation

1.37

 

1.37

 

 

 

 

 

 

Excess tax benefit on stock vesting(2)

(0.12)

 

(0.12)

 

 

 

 

 

 

Unusual health insurance claim(3)

0.12

 

0.12

 

 

 

 

 

 

Restructuring expense(4)

0.03

 

0.03

 

 

 

 

 

 

Adjusted EPS(1)

$4.45

 

$4.55

 

-6%

 

-4%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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

 

 

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

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

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

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

CONFERENCE CALL

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

GAAP VERSUS NON-GAAP PRESENTATION

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

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

ABOUT MANHATTAN ASSOCIATES

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

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

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

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2024

 

2023

 

2024

 

2023

 

(unaudited)

 

(unaudited)

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Cloud subscriptions

$90,330

 

$71,416

 

$337,203

 

$254,612

Software license

5,452

 

5,239

 

15,085

 

18,206

Maintenance

33,568

 

37,164

 

138,304

 

143,936

Services

119,482

 

119,125

 

525,517

 

487,869

Hardware

6,969

 

5,311

 

26,243

 

24,102

Total revenue

255,801

 

238,255

 

1,042,352

 

928,725

Costs and expenses:

 

 

 

 

 

 

 

Cost of cloud subscriptions, maintenance and services

112,739

 

106,349

 

469,659

 

429,263

Cost of software license

253

 

384

 

1,321

 

1,351

Research and development

32,996

 

31,327

 

137,689

 

126,814

Sales and marketing

20,307

 

20,212

 

75,976

 

74,490

General and administrative

27,187

 

19,613

 

89,810

 

81,174

Depreciation and amortization

1,631

 

1,505

 

6,301

 

5,752

Total costs and expenses

195,113

 

179,390

 

780,756

 

718,844

Operating income

60,688

 

58,865

 

261,596

 

209,881

Other income, net

1,996

 

867

 

5,218

 

3,790

Income before income taxes

62,684

 

59,732

 

266,814

 

213,671

Income tax provision

14,668

 

10,996

 

48,450

 

37,103

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