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Mar 31, 2023

Manhattan Associates Q1 2023 Earnings Report

Manhattan Associates reported record first quarter results, with RPO bookings increasing 42% year-over-year due to strong demand, and raised its full-year 2023 guidance.

Key Takeaways

Manhattan Associates had a strong start to 2023, with revenue reaching $221.0 million. GAAP diluted earnings per share was $0.62, and non-GAAP adjusted diluted earnings per share was $0.80. The company's cloud and services revenue growth exceeded expectations, driving better-than-expected top-line and earnings growth.

Consolidated total revenue was $221.0 million, compared to $179.0 million for Q1 2022.

Cloud subscription revenue was $57.2 million, compared to $37.3 million for Q1 2022.

GAAP diluted earnings per share was $0.62, compared to $0.48 for Q1 2022.

Adjusted diluted earnings per share, a non-GAAP measure, was $0.80, compared to $0.60 for Q1 2022.

Total Revenue
$221M
Previous year: $179M
+23.5%
EPS
$0.8
Previous year: $0.6
+33.3%
Gross Profit
$117M
Previous year: $95.5M
+22.9%
Cash and Equivalents
$182M
Previous year: $216M
-16.1%
Free Cash Flow
$58.1M
Previous year: $30.6M
+89.5%
Total Assets
$531M
Previous year: $512M
+3.7%

Manhattan Associates

Manhattan Associates

Manhattan Associates Revenue by Segment

Manhattan Associates Revenue by Geographic Location

Forward Guidance

Manhattan Associates provides revenue guidance for the full year 2023. Total revenue is expected to be between $856 million and $864 million. GAAP EPS is expected to be between $2.00 and $2.06. Adjusted EPS is expected to be between $2.85 and $2.91.

Positive Outlook

  • Total revenue current guidance between $856 million and $864 million, representing 12%-13% growth.
  • Adjusted operating margin current guidance between 26.4% and 26.7%.
  • Adjusted EPS current guidance between $2.85 and $2.91, representing 3%-5% growth.

Challenges Ahead

  • GAAP operating margin current guidance between 18.6% and 18.9%.
  • GAAP EPS current guidance between $2.00 and $2.06, representing -1% to 1% growth.
  • Equity-based compensation is expected to be 7.8% of revenue.
  • Excess tax benefit on stock vesting is expected to be ($0.05).
  • Increased income tax payments due to the 2017 U.S. Tax Cuts and Jobs Act.

Revenue & Expenses

Visualization of income flow from segment revenue to net income