Financial Results Manhattan Associates Reports Record Q4 and Full-Year Performance
Manhattan Associates Inc. (NASDAQ: MANH), a global leader in supply chain and omnichannel commerce solutions, has announced its financial results for the fourth quarter and full year ended December 31, 2024. Financial Results The company reported a strong financial performance, achieving record revenue and earnings. Notably, Manhattan Associates exceeded the significant milestone of one billion dollars in total annual revenue, reinforcing its leadership position in supply chain and retail technology solutions.
Fourth Quarter 2024 Performance Highlights
For Financial Results the fourth quarter of 2024, Manhattan Associates reported total revenue of $255.8 million, reflecting an increase from $238.3 million in the fourth quarter of 2023. The growth was primarily driven by a strong demand for cloud-based solutions, reflecting the continued digital transformation across industries.
Key financial highlights for Q4 2024 include:
- Cloud subscription revenue: $90.3 million, up from $71.4 million in Q4 2023.
- License revenue: $5.5 million, compared to $5.2 million in Q4 2023.
- Services revenue: $119.5 million, slightly higher than the $119.1 million reported in Q4 2023.
- GAAP diluted earnings per share (EPS): $0.77, compared to $0.78 in Q4 2023.
- Non-GAAP adjusted diluted EPS: $1.17, an increase from $1.03 in Q4 2023.
- GAAP operating income: $60.7 million, up from $58.9 million in Q4 2023.
- Non-GAAP adjusted operating income: $90.3 million, a rise from $76.8 million in Q4 2023.
- Cash flow from operations: $104.7 million, up from $88.4 million in Q4 2023.
- Days Sales Outstanding (DSO): 74 days as of December 31, 2024, compared to 69 days at the end of Q3 2024.
- Total cash balance: $266.2 million, compared to $215.0 million at the end of Q3 2024.
Manhattan Associates continued its commitment to returning value to shareholders. In Q4 2024, the company repurchased 155,444 shares of common stock for a total investment of $43.5 million. Furthermore, in January 2025, the Board of Directors approved an increase in Financial Results the company’s share repurchase authorization to an aggregate of $100.0 million.
Full-Year 2024 Performance Highlights
Manhattan Associates demonstrated consistent growth throughout 2024, achieving significant milestones in revenue and profitability.
Key financial highlights for the full year include:
- Total revenue: $1.042 billion, up from $928.7 million in 2023.
- Cloud subscription revenue: $337.2 million, compared to $254.6 million in 2023.
- License revenue: $15.1 million, compared to $18.2 million in 2023.
- Services revenue: $525.5 million, up from $487.9 million in 2023.
- GAAP diluted EPS: $3.51, compared to $2.82 in 2023.
- Non-GAAP adjusted diluted EPS: $4.72, up from $3.74 in 2023.
- GAAP operating income: $261.6 million, up from $209.9 million in 2023.
- Non-GAAP adjusted operating income: $361.8 million, compared to $281.5 million in 2023.
- Cash flow from operations: $295.0 million, compared to $246.2 million in 2023.
During 2024, Financial Results the company repurchased 986,555 shares of its common stock under the Board-authorized repurchase program, investing a total of $241.6 million. With the newly approved share repurchase authorization in January 2025, Manhattan Associates continues to demonstrate confidence in its long-term growth strategy.
CEO Commentary
Manhattan Associates’ President and CEO, Eddie Capel, expressed his satisfaction with the company’s performance, stating:
“Manhattan ended the year strong, posting record bookings that exceeded our expectations. In 2024, we surpassed the one-billion-dollar revenue milestone, further extending our leadership position as an innovator in supply chain and omnichannel retail end-markets.”
Looking ahead, Capel emphasized the company’s optimism about its market position and the opportunities in 2025:
“We enter 2025 excited about our growing market opportunity and are executing well on our business strategy. While we remain appropriately cautious about the turbulent macroeconomic environment, our business momentum is solid, and our team is devoted to our customers’ success.”
Conference Call and Investor Relations
Manhattan Associates will host a conference call to discuss its financial results on January 28, 2025, at 4:30 p.m. Eastern Time. The call will include an overview of the company’s financial performance, business updates, and expectations for the coming quarters. Financial Results Investors can access the live webcast through the Investor Relations section of the Manhattan Associates website at ir.manh.com.
Understanding GAAP vs. Non-GAAP Measures
Manhattan Associates reports both GAAP and non-GAAP financial measures to provide investors with a clearer understanding of its financial performance.
Non-GAAP adjustments exclude:
- Equity-based compensation expenses
- Certain tax benefits or deficiencies related to stock awards
- Unusual health insurance claim expenses
The company believes that these non-GAAP measures provide meaningful insights for investors by focusing on the core performance of its business, independent of non-recurring or non-operational items. A detailed reconciliation of GAAP to non-GAAP financial measures is available in the supplemental materials accompanying the earnings release.
Looking Ahead: 2025 Business Strategy
As Manhattan Associates enters 2025, it remains focused on innovation, customer success, and global expansion. Financial Results The company plans to:
- Accelerate cloud adoption: As more enterprises transition to cloud-based supply chain and omnichannel solutions, Manhattan Associates aims to strengthen its leadership in this space.
- Expand AI and automation capabilities: Leveraging advanced analytics and machine learning to enhance efficiency and decision-making for customers.
- Enhance customer experience: Continued investment in research and development to improve product functionality and integration capabilities.
- Drive international growth: Expansion in key global markets, particularly in Europe and Asia, where demand for supply chain optimization solutions is rising.
Despite potential macroeconomic challenges, including inflationary pressures and supply chain disruptions, the company is well-positioned for sustained growth through its strong customer relationships, technology leadership, and commitment to innovation.
Final Thoughts
Manhattan Associates has once again delivered strong financial results, demonstrating resilience and leadership in an evolving marketplace. With record revenue, robust cash flow, and increasing market demand for its cloud-based solutions, the company is poised for continued success in 2025 and beyond. Investors, analysts, and industry stakeholders will be closely monitoring Manhattan Associates’ strategic moves as it navigates an exciting and dynamic business environment.