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Manhattan Associates
🇺🇸 NASDAQ:MANH
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Sep 30, 2023

Manhattan Associates Q3 2023 Earnings Report

Manhattan Associates reported record revenue and earnings driven by strong demand for cloud solutions, with RPO bookings increasing significantly and full-year guidance raised.

Key Takeaways

Manhattan Associates reported record revenue of $238.4 million for Q3 2023, a significant increase compared to $198.1 million in Q3 2022. GAAP diluted earnings per share increased to $0.79, and non-GAAP adjusted diluted earnings per share reached $1.05. The company raised its 2023 outlook across all metrics and provided preliminary solid 2024 parameters.

Consolidated total revenue reached $238.4 million, up from $198.1 million in Q3 2022.

Cloud subscription revenue increased to $65.0 million, compared to $45.3 million in the previous year.

GAAP diluted earnings per share was $0.79, while adjusted diluted earnings per share was $1.05.

RPO bookings increased 37% over the prior year.

Total Revenue
$238M
Previous year: $198M
+20.4%
EPS
$1.05
Previous year: $0.66
+59.1%
Gross Profit
$127M
Previous year: $102M
+24.6%
Cash and Equivalents
$182M
Previous year: $197M
-7.5%
Free Cash Flow
$57.5M
Previous year: $38M
+51.2%
Total Assets
$573M
Previous year: $515M
+11.3%

Manhattan Associates

Manhattan Associates

Manhattan Associates Revenue by Segment

Manhattan Associates Revenue by Geographic Location

Forward Guidance

Manhattan Associates raised its 2023 full year guidance for total revenue, GAAP operating margin, adjusted operating margin, GAAP EPS, and adjusted EPS.

Positive Outlook

  • Total revenue is projected to be between $912 million and $916 million, representing a 19% growth.
  • GAAP operating margin is expected to be between 21.0% and 21.3%.
  • Adjusted operating margin is projected to be between 28.9% and 29.1%.
  • GAAP EPS is expected to be between $2.59 and $2.61, a 28-29% increase.
  • Adjusted EPS is projected to be between $3.51 and $3.53, a 27-28% increase.

Challenges Ahead

  • Anticipate continued volatility.
  • Economic conditions, including inflation could cause actual results to differ.
  • Disruptions in the retail sector could cause actual results to differ.
  • Global instability, including the wars in Ukraine and the Middle East could cause actual results to differ.
  • 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, which increases near-term taxable income and payments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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