Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $254.6 million for the first quarter ended March 31, 2024. GAAP diluted earnings per share for Q1 2024 was $0.86 compared to $0.62 in Q1 2023. Non-GAAP adjusted diluted earnings per share for Q1 2024 was $1.03 compared to $0.80 in Q1 2023.
We are very pleased with our solid start to 2024 and better than expected first quarter results. Manhattan’s fundamentals are strong, as demand continues to drive favorable pipeline and revenue momentum,” said Manhattan Associates president and CEO Eddie Capel.
“While macro volatility persists, we are optimistic about our growing market opportunity. Our global teams are executing very well for our customers and are focused on delivering leading innovation across supply chain execution, Omni-channel solutions, and retail point of sale markets,” Mr. Capel concluded.
FIRST QUARTER 2024 FINANCIAL SUMMARY:
- Consolidated total revenue for the three months ended March 31, 2024, was $254.6 million, compared to $221.0 million for the three months ended March 31, 2023.
- Cloud subscription revenue was $78.0 million for the three months ended March 31, 2024, compared to $57.2 million for the three months ended March 31, 2023.
- License revenue was $2.8 million for the three months ended March 31, 2024, compared to $5.4 million for the three months ended March 31, 2023.
- Services revenue was $132.2 million for the three months ended March 31, 2024, compared to $116.2 million for the three months ended March 31, 2023.
- GAAP diluted earnings per share for the three months ended March 31, 2024, was $0.86, compared to $0.62 for the three months ended March 31, 2023.
- Adjusted diluted earnings per share, a non-GAAP measure, was $1.03 for the three months ended March 31, 2024, compared to $0.80 for the three months ended March 31, 2023.
- GAAP operating income was $57.6 million for the three months ended March 31, 2024, compared to $47.1 million for the three months ended March 31, 2023.
- Adjusted operating income, a non-GAAP measure, was $79.7 million for the three months ended March 31, 2024, compared to $63.7 million for the three months ended March 31, 2023.
- Cash flow from operations was $54.7 million for the three months ended March 31, 2024, compared to $58.7 million for the three months ended March 31, 2023. Days Sales Outstanding was 74 days at March 31, 2024, compared to 70 days at December 2023.
- Cash totaled $207.5 million at March 31, 2024, compared to $270.7 million at December 31, 2023.
- During the three months ended March 31, 2024, the Company repurchased 293,592 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $73.4 million. In April 2024, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.
2024 GUIDANCE
Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2024:
| Guidance Range – 2024 Full Year | |||||||||||||||
| ($’s in millions, except operating margin and EPS) | $ Range | % Growth Range | |||||||||||||
| Total revenue – current guidance | $ | 1,026 | $ | 1,034 | 10 | % | 11 | % | |||||||
| Operating margin: | |||||||||||||||
| GAAP operating margin – current guidance | 20.8 | % | 21.2 | % | |||||||||||
| Equity-based compensation | 8.8 | % | 8.7 | % | |||||||||||
| Adjusted operating margin(1) – current guidance | 29.6 | % | 29.9 | % | |||||||||||
| Diluted earnings per share (EPS): | |||||||||||||||
| GAAP EPS – current guidance | $ | 2.78 | $ | 2.86 | -1 | % | 1 | % | |||||||
| Equity-based compensation, net of tax | 1.22 | 1.22 | |||||||||||||
| Excess tax benefit on stock vesting(2) | (0.14 | ) | (0.14 | ) | |||||||||||
| Adjusted EPS(1) – current guidance | $ | 3.86 | $ | 3.94 | 3 | % | 5 | % | |||||||
| (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 first quarter financial results will be held today, April 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’ second 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 months ended March 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 – 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.