Manhattan Associates : Q4 2024 Earnings Manhattan Associates Reports Record Fourth Quarter and Full Year Results

Published: 2025-01-28 16:56:16 ET MANH

Exhibit 99.1

Contact: Michael Bauer

Devika Goel

Senior Director,

Senior Manager,

Investor Relations

Public Relations

Manhattan Associates, Inc.

678-597-7538

678-597-6754

mbauer@manh.com

dgoel@manh.com

Manhattan Associates Reports Record Fourth Quarter and Full Year Results

RPO Bookings Increase 25% over Prior Year on Strong Demand

ATLANTA - January 28, 2025 - 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

Operating Margin:

GAAP operating margin

22.3%

22.9%

Equity-based compensation

9.5%

9.4%

Unusual health insurance claim(3)

1.0%

Restructuring expense(4)

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

Excess tax benefit on stock vesting(2)

(0.12)

Unusual health insurance claim(3)

0.12

Restructuring expense(4)

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.

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.

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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

Revenue:

(unaudited)

$90,330

$337,203

Cloud subscriptions

$71,416

$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:

112,739

469,659

Cost of cloud subscriptions, maintenance and services

106,349

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

Net income

$48,016

$48,736

$218,364

$176,568

Basic earnings per share

$0.79

$3.56

$2.86

Diluted earnings per share

$0.77

$0.78

$3.51

$2.82

Weighted average number of shares:

60,999

61,303

Basic

61,566

61,817

Diluted

62,009

62,555

62,183

62,608

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Operating income

$60,688

58,865

$261,596

209,881

Equity-based compensation (a)

22,592

17,973

93,206

71,571

Unusual health insurance claim (c)

7,002

Adjusted operating income (Non-GAAP)

$90,282

$76,838

$361,804

$281,452

Income tax provision

$14,668

10,996

$48,450

37,103

Equity-based compensation (a)

3,160

2,496

14,127

10,563

Tax benefit of stock awards vested (b)

9,120

3,480

Unusual health insurance claim (c)

1,690

Adjusted income tax provision (Non-GAAP)

$19,575

$13,518

$73,387

$51,146

Net income

$48,016

$48,736

$218,364

$176,568

Equity-based compensation (a)

19,432

15,477

79,079

61,008

Tax benefit of stock awards vested (b)

(57)

(26)

(9,120)

(3,480)

Unusual health insurance claim (c)

5,312

Adjusted net income (Non-GAAP)

$72,703

$64,187

$293,635

$234,096

Diluted EPS

$0.77

$0.78

$3.51

$2.82

Equity-based compensation (a)

0.31

0.25

1.27

0.97

Tax benefit of stock awards vested (b)

(0.15)

(0.06)

Unusual health insurance claim (c)

0.09

Adjusted diluted EPS (Non-GAAP)

$1.17

$1.03

$4.72

$3.74

Fully diluted shares

62,009

62,555

62,183

62,608

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Cost of services

$10,049

$7,234

$41,531

$28,571

Research and development

4,948

3,963

20,760

15,674

Sales and marketing

2,149

1,760

8,444

7,093

General and administrative

5,446

5,016

22,471

20,233

Total equity-based compensation

$22,592

$17,973

$93,206

$71,571

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

December 31, 2024

December 31, 2023

ASSETS

Current Assets:

266,230

Cash and cash equivalents

270,741

Accounts receivable, net

205,475

181,173

Prepaid expenses and other current assets

31,559

27,276

Total current assets

503,264

479,190

Property and equipment, net

13,971

11,795

Operating lease right-of-use assets

47,923

21,645

Goodwill, net

62,226

62,235

Deferred income taxes

94,505

66,043

Other assets

35,662

32,445

Total assets

757,551

673,353

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

26,615

Accounts payable

24,508

Accrued compensation and benefits

72,180

73,210

Accrued and other liabilities

22,275

27,374

Deferred revenue

277,970

237,793

Income taxes payable

1,264

3,030

Total current liabilities

400,304

365,915

Operating lease liabilities, long-term

47,794

17,694

Other non-current liabilities

10,327

11,466

Shareholders' equity:

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or

outstanding at December 31, 2024 and December 31, 2023

Common stock, $.01 par value; 200,000,000 shares authorized; 60,921,191 and

61,566,037 shares issued and outstanding at December 31, 2024 and December 31,

609

2023, respectively

615

Retained earnings

329,439

304,701

Accumulated other comprehensive loss

(30,922)

(27,038)

Total shareholders' equity

299,126

278,278

Total liabilities and shareholders' equity

757,551

673,353

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

Year Ended December 31,

2024

2023

Operating activities:

218,364

Net income

176,568

Adjustments to reconcile net income to net cash provided by operating activities:

6,301

Depreciation and amortization

5,752

Equity-based compensation

93,206

71,571

(Gain) Loss on disposal of equipment

(133)

Deferred income taxes

(28,689)

(28,844 )

Unrealized foreign currency loss (gain)

(380)

1,280

Changes in operating assets and liabilities:

(26,702)

Accounts receivable, net

(13,084 )

Other assets

(4,157)

(10,925 )

Accounts payable, accrued and other liabilities

1,248

18,123

Income taxes

(6,242)

(1,416 )

Deferred revenue

42,187

27,136

Net cash provided by operating activities

295,003

246,218

Investing activities:

(8,675)

Purchases of property and equipment

(4,730 )

Net cash used in investing activities

(8,675)

(4,730 )

Financing activities:

(286,366)

Purchase of common stock

(196,047 )

Net cash used in financing activities

(286,366)

(196,047 )

Foreign currency impact on cash

(4,473)

(163 )

Net change in cash and cash equivalents

(4,511)

45,278

Cash and cash equivalents at beginning of period

270,741

225,463

Cash and cash equivalents at end of period

266,230

270,741

Disclaimer

Manhattan Associates Inc. published this content on January 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 28, 2025 at 21:55:09.813.