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Sep 30, 2022

Manhattan Associates Q3 2022 Earnings Report

Reported record Q3 revenue and better than expected earnings per share due to strong demand.

Key Takeaways

Manhattan Associates reported revenue of $198.1 million for the third quarter ended September 30, 2022, with GAAP diluted earnings per share of $0.47 and non-GAAP adjusted diluted earnings per share of $0.66. Demand is strong and resilient across their differentiated cloud product portfolio, and they are committed to investing in industry leading innovation.

Consolidated total revenue was $198.1 million for Q3 2022, compared to $169.2 million for Q3 2021.

Cloud subscription revenue was $45.3 million for Q3 2022, compared to $32.2 million for Q3 2021.

GAAP diluted earnings per share was $0.47 for Q3 2022, compared to $0.57 for Q3 2021.

Adjusted diluted earnings per share, a non-GAAP measure, was $0.66 for Q3 2022, compared to $0.71 for Q3 2021.

Total Revenue
$198M
Previous year: $169M
+17.1%
EPS
$0.66
Previous year: $0.71
-7.0%
Gross Profit
$102M
Previous year: $97.7M
+4.4%
Cash and Equivalents
$197M
Previous year: $246M
-20.0%
Free Cash Flow
$38M
Previous year: $58.7M
-35.2%
Total Assets
$515M
Previous year: $514M
+0.1%

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 2022: Total revenue is expected to be between $750 million and $753 million.

Positive Outlook

  • Total revenue is expected to be between $750 million and $753 million, representing a growth of 13%.
  • GAAP operating margin is expected to be between 17.5% and 17.7%.
  • Adjusted operating margin is expected to be between 25.5% and 25.6%.
  • GAAP EPS is expected to be between $1.71 and $1.73.
  • Adjusted EPS is expected to be between $2.43 and $2.45, representing a growth of 9% to 10%.

Challenges Ahead

  • GAAP EPS is expected to be between $1.71 and $1.73, representing a decline of -1% to 1%.
  • The 2017 U.S. Tax Cuts and Jobs Act eliminated the expensing of research and development costs as incurred for tax purposes beginning in 2022, increasing near-term taxable income and payments.
  • Cash outlook for 2022 includes the negative impact of approximately $25 million to $30 million in additional income tax payments.
  • Economic conditions, including inflation, may impact future performance.
  • Global instability, including the war in Ukraine, may impact future performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income