Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $265.3 million for the second quarter ended June 30, 2024. GAAP dilu...
RPO Bookings Increase 29% over Prior Year on Strong Demand
Company Raises 2024 Full-Year Guidance
ATLANTA: Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $265.3 million for the second quarter ended June 30, 2024. GAAP diluted earnings per share for Q2 2024 was $0.85 compared to $0.63 in Q2 2023. Non-GAAP adjusted diluted earnings per share for Q2 2024 was $1.18 compared to $0.88 in Q2 2023.
“Our second quarter was another solid quarter of growth, margin expansion, and cash flow. We have achieved record second quarter and first half results, each exceeding expectations,” said Manhattan Associates president and CEO Eddie Capel.
“Manhattan’s business fundamentals are solid, as our global teams continue to execute well for our customers and deliver industry leading innovation to the market. While we remain appropriately cautious regarding the global economy, we enter the second half of the year with a record pipeline and are optimistic on our growing opportunity,” Mr. Capel concluded.
SECOND QUARTER 2024 FINANCIAL SUMMARY:
SIX MONTH 2024 FINANCIAL SUMMARY:
2024 GUIDANCE
Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2024:
|
| Guidance Range - 2024 Full Year | |||||||
| ($'s in millions, except operating margin and EPS) | $ Range |
| % Growth Range |
| ||||
|
|
|
|
|
|
|
|
|
|
| Total revenue - current guidance | $1,036 |
| $1,044 |
| 12% |
| 12% |
|
|
|
|
|
|
|
|
|
|
|
| Operating margin: |
|
|
|
|
|
|
|
|
| GAAP operating margin - current guidance | 22.8% |
| 23.1% |
|
|
|
|
|
| Equity-based compensation | 9.2% |
| 9.1% |
|
|
|
|
|
| Adjusted operating margin(1) - current guidance | 32.0% |
| 32.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share (EPS): |
|
|
|
|
|
|
|
|
| GAAP EPS - current guidance | $3.08 |
| $3.16 |
| 9% |
| 12% |
|
| Equity-based compensation, net of tax | 1.29 |
| 1.29 |
|
|
|
|
|
| Excess tax benefit on stock vesting(2) | (0.15) |
| (0.15) |
|
|
|
|
|
| Adjusted EPS(1) - current guidance | $4.22 |
| $4.30 |
| 13% |
| 15% |
|
|
|
|
|
|
|
|
|
|
|
| (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 second quarter financial results will be held today, July 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’ third quarter 2024 earnings release.
GAAP VERSUS NON-GAAP PRESENTATION
Manhattan Associates provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and six months ended June 30, 2024.
Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation – net of income tax effects. They also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes from the compensation expense recorded for financial reporting purposes. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.
ABOUT MANHATTAN ASSOCIATES
Manhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.
Manhattan Associates designs, builds and delivers leading edge cloud solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.
This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2024 Guidance” and statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including inflation; disruption and transformation in the retail sector and our vertical markets; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; global instability, including the wars in Ukraine and the Middle East; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.
###
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Income | ||||||||
(in thousands, except per share amounts) | ||||||||
|
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||
|
| 2024 |
| 2023 |
| 2024 |
| 2023 |
|
| (unaudited) |
| (unaudited) |
| (unaudited) |
| (unaudited) |
Revenue: |
|
|
|
|
|
|
|
|
Cloud subscriptions |
| $82,361 |
| $60,943 |
| $160,388 |
| $118,163 |
Software license |
| 3,061 |
| 3,745 |
| 5,871 |
| 9,097 |
Maintenance |
| 35,273 |
| 35,826 |
| 70,245 |
| 71,476 |
Services |
| 136,831 |
| 124,609 |
| 269,026 |
| 240,779 |
Hardware |
| 7,792 |
| 5,893 |
| 14,340 |
| 12,514 |
Total revenue |
| 265,318 |
| 231,016 |
| 519,870 |
| 452,029 |
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of cloud subscriptions, maintenance and services |
| 119,696 |
| 108,445 |
| 238,651 |
| 211,772 |
Cost of software license |
| 345 |
| 368 |
| 677 |
| 670 |
Research and development |
| 35,334 |
| 31,600 |
| 70,344 |
| 62,394 |
Sales and marketing |
| 19,154 |
| 18,563 |
| 39,083 |
| 36,628 |
General and administrative |
| 21,112 |
| 20,237 |
| 42,315 |
| 40,190 |
Depreciation and amortization |
| 1,489 |
| 1,320 |
| 2,982 |
| 2,807 |
Total costs and expenses |
| 197,130 |
| 180,533 |
| 394,052 |
| 354,461 |
Operating income |
| 68,188 |
| 50,483 |
| 125,818 |
| 97,568 |
Other income, net |
| 914 |
| 1,041 |
| 1,910 |
| 1,184 |
Income before income taxes |
| 69,102 |
| 51,524 |
| 127,728 |
| 98,752 |
Income tax provision |
| 16,336 |
| 11,904 |
| 21,161 |
| 20,341 |
Net income |
| $52,766 |
| $39,620 |
| $106,567 |
| $78,411 |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
| $0.86 |
| $0.64 |
| $1.73 |
| $1.26 |
Diluted earnings per share |
| $0.85 |
| $0.63 |
| $1.71 |
| $1.25 |
|
|
|
|
|
|
|
|
|
Weighted average number of shares: |
|
|
|
|
|
|
|
|
Basic |
| 61,421 |
| 61,862 |
| 61,523 |
|
Related newsLast NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readAI Strengthening Cybersecurity Software, ISG Says$III #AI--Growing and evolving security threats make it increasingly important for enterprises to deploy advanced cybersecurity software and to understand… Mitsubishi Electric’s ME Innovation Fund Invests in AI-assisted PLM Systems…Mitsubishi Electric Corporation (TOKYO: 6503) announced today that its ME Innovation Fund has invested in Things, Inc., a Japan-based startup that develops… Team8 Expands Cyber and AI Focus with New Partner Appointments, Ori Barzilay…Team8 a global venture fund that builds and invests in companies across cybersecurity, data, AI, fintech, and digital health, as well as their intersections… PropStream Announces Acquisition of Batch Leads and Batch Dialer, Enhancing…#BrianTepfer--PropStream, a leading real estate data and analytics platform and company in the Stewart Information Services Corporation family of companies… G11 Media Networks |