EX-99.1 2 manh-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

 

Contact:

Michael Bauer

Rick Fernandez

Senior Director,

Investor Relations

Director,

Corporate Communications

Manhattan Associates, Inc.

 

Manhattan Associates, Inc.

678-597-7538

678-597-6988

mbauer@manh.com

rfernandez@manh.com

 

 

 

Manhattan Associates Reports Record Revenue and Earnings

RPO Bookings Increase 29% over Prior Year on Strong Demand

Company Raises 2024 Full-Year Guidance

 

ATLANTA – July 23, 2024 – Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $265.3 million for the second quarter ended June 30, 2024. GAAP diluted earnings per share for Q2 2024 was $0.85 compared to $0.63 in Q2 2023. Non-GAAP adjusted diluted earnings per share for Q2 2024 was $1.18 compared to $0.88 in Q2 2023.

“Our second quarter was another solid quarter of growth, margin expansion, and cash flow. We have achieved record second quarter and first half results, each exceeding expectations,” said Manhattan Associates president and CEO Eddie Capel.

“Manhattan’s business fundamentals are solid, as our global teams continue to execute well for our customers and deliver industry leading innovation to the market. While we remain appropriately cautious regarding the global economy, we enter the second half of the year with a record pipeline and are optimistic on our growing opportunity,” Mr. Capel concluded.
 

SECOND QUARTER 2024 FINANCIAL SUMMARY:

•
Consolidated total revenue was $265.3 million for Q2 2024, compared to $231.0 million for Q2 2023.
o
Cloud subscription revenue was $82.4 million for Q2 2024, compared to $60.9 million for Q2 2023.
o
License revenue was $3.1 million for Q2 2024, compared to $3.7 million for Q2 2023.

img242893399_0.jpg 

 

 

 

o
Services revenue was $136.8 million for Q2 2024, compared to $124.6 million for Q2 2023.
•
GAAP diluted earnings per share was $0.85 for Q2 2024, compared to $0.63 for Q2 2023.

Adjusted diluted earnings per share, a non-GAAP measure, was $1.18 for Q2 2024, compared to $0.88 for Q2 2023.

GAAP operating income was $68.2 million for Q2 2024, compared to $50.5 million for Q2 2023.

Adjusted operating income, a non-GAAP measure, was $92.9 million for Q2 2024, compared to $68.4 million for Q2 2023.

Cash flow from operations was $73.3 million for Q2 2024, compared to $40.6 million for Q2 2023. Days Sales Outstanding was 66 days at June 30, 2024, compared to 74 days at March 31, 2024.

Cash totaled $202.7 million at June 30, 2024, compared to $207.5 million at March 31, 2024.

During the three months ended June 30, 2024, the Company repurchased 342,807 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $75.0 million. In July 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.

 

SIX MONTH 2024 FINANCIAL SUMMARY:

•
Consolidated total revenue for the six months ended June 30, 2024, was $519.9 million, compared to $452.0 million for the six months ended June 30, 2023.
o
Cloud subscription revenue was $160.4 million for the six months ended June 30, 2024, compared to $118.2 million for the six months ended June 30, 2023.
o
License revenue was $5.9 million for the six months ended June 30, 2024, compared to $9.1 million for the six months ended June 30, 2023.

img242893399_1.jpg 

 

 

 

o
Services revenue was $269.0 million for the six months ended June 30, 2024, compared to $240.8 million for the six months ended June 30, 2023.
•
GAAP diluted earnings per share for the six months ended June 30, 2024, was $1.71, compared to $1.25 for the six months ended June 30, 2023.
•
Adjusted diluted earnings per share, a non-GAAP measure, was $2.21 for the six months ended June 30, 2024, compared to $1.67 for the six months ended June 30, 2023.
•
GAAP operating income was $125.8 million for the six months ended June 30, 2024, compared to $97.6 million for the six months ended June 30, 2023.
•
Adjusted operating income, a non-GAAP measure, was $172.6 million for the six months ended June 30, 2024, compared to $132.1 million for the six months ended June 30, 2023.
•
Cash flow from operations was $128.0 million for the six months ended June 30, 2024, compared to $99.3 million for the six months ended June 30, 2023.
•
During the six months ended June 30, 2024, the Company repurchased 636,399 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $148.4 million. In July 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.

 

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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

$1,036

 

$1,044

 

12%

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin:

 

 

 

 

 

 

 

 

 

GAAP operating margin - current guidance

22.8%

 

23.1%

 

 

 

 

 

 

Equity-based compensation

9.2%

 

9.1%

 

 

 

 

 

 

Adjusted operating margin(1) - current guidance

32.0%

 

32.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (EPS):

 

 

 

 

 

 

 

 

 

GAAP EPS - current guidance

$3.08

 

$3.16

 

9%

 

12%

 

 

Equity-based compensation, net of tax

1.29

 

1.29

 

 

 

 

 

 

Excess tax benefit on stock vesting(2)

(0.15)

 

(0.15)

 

 

 

 

 

 

Adjusted EPS(1) - current guidance

$4.22

 

$4.30

 

13%

 

15%

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

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CONFERENCE CALL

Manhattan Associates’ conference call regarding its second quarter financial results will be held today, July 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’ third 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 and six months ended June 30, 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.

 

img242893399_1.jpg 

 

 

 

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds and delivers leading edge cloud solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2024 Guidance” and statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including inflation; disruption and transformation in the retail sector and our vertical markets; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; global instability, including the wars in Ukraine and the Middle East; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

 

###

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Revenue:

 

 

 

 

 

 

 

 

Cloud subscriptions

 

$82,361

 

$60,943

 

$160,388

 

$118,163

Software license

 

3,061

 

3,745

 

5,871

 

9,097

Maintenance

 

35,273

 

35,826

 

70,245

 

71,476

Services

 

136,831

 

124,609

 

269,026

 

240,779

Hardware

 

7,792

 

5,893

 

14,340

 

12,514

Total revenue

 

265,318

 

231,016

 

519,870

 

452,029

Costs and expenses:

 

 

 

 

 

 

 

 

Cost of cloud subscriptions, maintenance and services

 

119,696

 

108,445

 

238,651

 

211,772

Cost of software license

 

345

 

368

 

677

 

670

Research and development

 

35,334

 

31,600

 

70,344

 

62,394

Sales and marketing

 

19,154

 

18,563

 

39,083

 

36,628

General and administrative

 

21,112

 

20,237

 

42,315

 

40,190

Depreciation and amortization

 

1,489

 

1,320

 

2,982

 

2,807

Total costs and expenses

 

197,130

 

180,533

 

394,052

 

354,461

Operating income

 

68,188

 

50,483

 

125,818

 

97,568

Other income, net

 

914

 

1,041

 

1,910

 

1,184

Income before income taxes

 

69,102

 

51,524

 

127,728

 

98,752

Income tax provision

 

16,336

 

11,904

 

21,161

 

20,341

Net income

 

$52,766

 

$39,620

 

$106,567

 

$78,411

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$0.86

 

$0.64

 

$1.73

 

$1.26

Diluted earnings per share

 

$0.85

 

$0.63

 

$1.71

 

$1.25

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

Basic

 

61,421

 

61,862

 

61,523

 

62,036

Diluted

 

62,118

 

62,432

 

62,305

 

62,599

 

 

 

 

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Operating income

 

$68,188

 

$50,483

 

$125,818

 

$97,568

Equity-based compensation (a)

 

24,666

 

17,928

 

46,761

 

34,568

Adjusted operating income (Non-GAAP)

 

$92,854

 

$68,411

 

$172,579

 

$132,136

 

 

 

 

 

 

 

 

 

Income tax provision

 

$16,336

 

$11,904

 

$21,161

 

$20,341

Equity-based compensation (a)

 

3,848

 

2,628

 

7,284

 

5,037

Tax benefit of stock awards vested (b)

 

327

 

281

 

8,484

 

3,236

Adjusted income tax provision (Non-GAAP)

 

$20,511

 

$14,813

 

$36,929

 

$28,614

 

 

 

 

 

 

 

 

 

Net income

 

$52,766

 

$39,620

 

$106,567

 

$78,411

Equity-based compensation (a)

 

20,818

 

15,300

 

39,477

 

29,531

Tax benefit of stock awards vested (b)

 

(327)

 

(281)

 

(8,484)

 

(3,236)

Adjusted net income (Non-GAAP)

 

$73,257

 

$54,639

 

$137,560

 

$104,706

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$0.85

 

$0.63

 

$1.71

 

$1.25

Equity-based compensation (a)

 

0.34

 

0.25

 

0.63

 

0.47

Tax benefit of stock awards vested (b)

 

(0.01)

 

-

 

(0.14)

 

(0.05)

Adjusted diluted EPS (Non-GAAP)

 

$1.18

 

$0.88

 

$2.21

 

$1.67

 

 

 

 

 

 

 

 

 

Fully diluted shares

 

62,118

 

62,432

 

62,305

 

62,599

 

a)
Adjusted results exclude all equity-based compensation, as detailed below, to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly because of Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives.

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Cost of services

 

$11,358

 

$7,178

 

$20,647

 

$13,694

Research and development

 

5,455

 

3,915

 

10,695

 

7,570

Sales and marketing

 

2,116

 

1,807

 

4,106

 

3,455

General and administrative

 

5,737

 

5,028

 

11,313

 

9,849

Total equity-based compensation

 

$24,666

 

$17,928

 

$46,761

 

$34,568

 

(b)
Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also exclude the related tax benefit (expense) generated upon their vesting.

 

 

 

 

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

202,709

 

 

$

270,741

 

Accounts receivable, net

 

 

191,226

 

 

 

181,173

 

Prepaid expenses and other current assets

 

 

32,211

 

 

 

27,276

 

Total current assets

 

 

426,146

 

 

 

479,190

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

13,392

 

 

 

11,795

 

Operating lease right-of-use assets

 

 

51,181

 

 

 

21,645

 

Goodwill, net

 

 

62,230

 

 

 

62,235

 

Deferred income taxes

 

 

78,529

 

 

 

66,043

 

Other assets

 

 

33,834

 

 

 

32,445

 

Total assets

 

$

665,312

 

 

$

673,353

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

25,581

 

 

$

24,508

 

Accrued compensation and benefits

 

 

54,550

 

 

 

73,210

 

Accrued and other liabilities

 

 

23,167

 

 

 

27,374

 

Deferred revenue

 

 

258,987

 

 

 

237,793

 

Income taxes payable

 

 

425

 

 

 

3,030

 

Total current liabilities

 

 

362,710

 

 

 

365,915

 

 

 

 

 

 

 

 

Operating lease liabilities, long-term

 

 

50,842

 

 

 

17,694

 

Other non-current liabilities

 

 

11,131

 

 

 

11,466

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2024 and 2023

 

 

-

 

 

 

-

 

Common stock, $0.01 par value; 200,000,000 shares authorized; 61,245,638 and 61,566,037 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

 

 

612

 

 

 

615

 

Retained earnings

 

 

267,771

 

 

 

304,701

 

Accumulated other comprehensive loss

 

 

(27,754

)

 

 

(27,038

)

Total shareholders' equity

 

 

240,629

 

 

 

278,278

 

Total liabilities and shareholders' equity

 

$

665,312

 

 

$

673,353

 

 

 

 

 

 

 

 

 

 

 

 

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

(unaudited)

 

 

(unaudited)

 

Operating activities:

 

 

 

 

 

 

Net income

 

$

106,567

 

 

$

78,411

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

2,982

 

 

 

2,807

 

Equity-based compensation

 

 

46,761

 

 

 

34,568

 

(Gain) loss on disposal of equipment

 

 

(124

)

 

 

22

 

Deferred income taxes

 

 

(12,519

)

 

 

(11,038

)

Unrealized foreign currency loss

 

 

610

 

 

 

1,577

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(11,153

)

 

 

(11,024

)

Other assets

 

 

(2,088

)

 

 

(5,825

)

Accounts payable, accrued and other liabilities

 

 

(18,082

)

 

 

(2,593

)

Income taxes

 

 

(7,043

)

 

 

(5,359

)

Deferred revenue

 

 

22,089

 

 

 

17,740

 

Net cash provided by operating activities

 

 

128,000

 

 

 

99,286

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(4,538

)

 

 

(1,675

)

Net cash used in investing activities

 

 

(4,538

)

 

 

(1,675

)

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

Repurchase of common stock

 

 

(189,546

)

 

 

(169,115

)

Net cash used in financing activities

 

 

(189,546

)

 

 

(169,115

)

 

 

 

 

 

 

 

Foreign currency impact on cash

 

 

(1,948

)

 

 

(665

)

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(68,032

)

 

 

(72,169

)

Cash and cash equivalents at beginning of period

 

 

270,741

 

 

 

225,463

 

Cash and cash equivalents at end of period

 

$

202,709

 

 

$

153,294

 

 

 

 

 

 

 

 

 

 

 

 

 

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

 

1. GAAP and adjusted earnings per share by quarter are as follows:

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

YTD

GAAP Diluted EPS

$0.62

 

$0.63

 

$0.79

 

$0.78

 

$2.82

 

$0.86

 

$0.85

 

$1.71

Adjustments to GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

0.23

 

0.25

 

0.26

 

0.25

 

0.97

 

0.30

 

0.34

 

0.63

Tax benefit of stock awards vested

(0.05)

 

-

 

-

 

-

 

(0.06)

 

(0.13)

 

(0.01)

 

(0.14)

 Adjusted Diluted EPS

$0.80

 

$0.88

 

$1.05

 

$1.03

 

$3.74

 

$1.03

 

$1.18

 

$2.21

Fully Diluted Shares

62,767

 

62,432

 

62,310

 

62,555

 

62,608

 

62,493

 

62,118

 

62,305

2. Revenues and operating income by reportable segment are as follows (in thousands):
 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

YTD

Revenue:

Americas

$170,759

 

$179,208

 

$186,564

 

$182,664

 

$719,195

 

$196,312

 

$205,955

 

$402,267

EMEA

39,658

 

40,902

 

41,204

 

44,874

 

166,638

 

46,620

 

46,918

 

93,538

APAC

10,596

 

10,906

 

10,673

 

10,717

 

42,892

 

11,620

 

12,445

 

24,065

 

$221,013

 

$231,016

 

$238,441

 

$238,255

 

$928,725

 

$254,552

 

$265,318

 

$519,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Income:

Americas

$29,647

 

$32,326

 

$34,655

 

$38,530

 

$135,158

 

$36,687

 

$45,300

 

$81,987

EMEA

12,793

 

13,556

 

14,415

 

15,959

 

56,723

 

15,884

 

17,195

 

33,079

APAC

4,645

 

4,601

 

4,378

 

4,376

 

18,000

 

5,059

 

5,693

 

10,752

 

$47,085

 

$50,483

 

$53,448

 

$58,865

 

$209,881

 

$57,630

 

$68,188

 

$125,818

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (pre-tax):

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based
   compensation

$16,640

 

$17,928

 

$19,030

 

$17,973

 

$71,571

 

$22,095

 

$24,666

 

$46,761

 

$16,640

 

$17,928

 

$19,030

 

$17,973

 

$71,571

 

$22,095

 

$24,666

 

$46,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-GAAP Operating Income:

Americas

$46,287

 

$50,254

 

$53,685

 

$56,503

 

$206,729

 

$58,782

 

$69,966

 

$128,748

EMEA

12,793

 

13,556

 

14,415

 

15,959

 

56,723

 

15,884

 

17,195

 

33,079

APAC

4,645

 

4,601

 

4,378

 

4,376

 

18,000

 

5,059

 

5,693

 

10,752

 

$63,725

 

$68,411

 

$72,478

 

$76,838

 

$281,452

 

$79,725

 

$92,854

 

$172,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

YTD

Revenue

$(3,084)

 

$104

 

$2,755

 

$2,341

 

$2,116

 

$648

 

$(531)

 

$117

Costs and expenses

(3,616)

 

(1,133)

 

1,033

 

1,212

 

(2,504)

 

176

 

(673)

 

(497)

Operating income

532

 

1,237

 

1,722

 

1,129

 

4,620

 

472

 

142

 

614

Foreign currency gains (losses)
   in other income

(810)

 

(516)

 

387

 

(527)

 

(1,466)

 

(564)

 

(577)

 

$(1,141)

 

$(278)

 

$721

 

$2,109

 

$602

 

$3,154

 

$(92)

 

$(435)

 

$(527)

 

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):
 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

YTD

Operating income

$1,632

 

$1,222

 

$728

 

$267

 

$3,849

 

$185

 

$307

 

$492

Foreign currency gains (losses)
    in other income

(283)

 

(31)

 

812

 

(105)

 

393

 

164

 

41

 

205

Total impact of
   changes in the
   Indian Rupee

$1,349

 

$1,191

 

$1,540

 

$162

 

$4,242

 

$349

 

$348

 

$697

4. Other income includes the following components (in thousands):
 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

YTD

Interest income

$969

 

$1,555

 

$1,371

 

$1,409

 

$5,304

 

$1,414

 

$1,503

 

$2,917

Foreign currency gains (losses)

(810)

 

(516)

 

387

 

(527)

 

(1,466)

 

(564)

 

(577)

 

(1,141)

Other non-operating
    income (expense)

(16)

 

2

 

(19)

 

(15)

 

(48)

 

146

 

(12)

 

134

Total other income (loss)

$143

 

$1,041

 

$1,739

 

$867

 

$3,790

 

$996

 

$914

 

$1,910

5. Capital expenditures are as follows (in thousands):
 

 

2023

 

2024

 

 

 

 

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

YTD

Capital expenditures

$666

 

$1,009

 

$1,086

 

$1,969

 

$4,730

 

$2,321

 

$2,217

 

$4,538

 

 

 

 

6. Stock Repurchase Activity (in thousands):

 

 

2023

 

2024

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

YTD

Shares purchased under publicly announced buy-back program

515

 

381

 

128

 

-

 

1,024

 

294

 

343

 

637

Shares withheld for taxes due upon vesting of restricted stock units

208

 

4

 

8

 

2

 

222

 

165

 

3

 

168

Total shares purchased

723

 

385

 

136

 

2

 

1,246

 

459

 

346

 

805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash paid for shares purchased under publicly announced buy-back program

$74,177

 

$66,769

 

$25,072

 

$0

 

$166,018

 

$73,411

 

$74,999

 

$148,410

Total cash paid for shares withheld for taxes due upon vesting of restricted stock units

27,511

 

658

 

1,529

 

331

 

30,029

 

40,423

 

713

 

41,136

Total cash paid for shares repurchased

$101,688

 

$67,427

 

$26,601

 

$331

 

$196,047

 

$113,834

 

$75,712

 

$189,546

 

 

7. Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Over 98% of our RPO represents cloud native subscriptions with non-cancelable terms greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts are typically one year and not included in the RPO. Our RPO as of the end of each period appears below (in thousands):
 

 

March 31, 2023

 

June 30, 2023

 

September 30, 2023

 

December 30, 2023

 

March 31, 2024

 

June 30, 2024

Remaining Performance Obligations

$1,153,404

 

$1,238,672

 

$1,324,861

 

$1,427,854

 

$1,516,430

 

$1,601,531