Manhattan Associates Files Q2 2024 10-Q

TL;DR

MANH files Q2 10-Q. Financials look solid.

AI Summary

Manhattan Associates Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which is headquartered in Atlanta, Georgia. Specific financial figures and operational metrics for the second quarter and first half of 2024 are presented.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Manhattan Associates, a key player in supply chain and commerce solutions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• MANHATTAN ASSOCIATES INC (company) — Filer
• 20240630 (date) — Reporting Period End Date
• 20240726 (date) — Filing Date
• Atlanta, GA (location) — Company Headquarters

FAQ

Key Financial Figures

• $0.01 — ows: 61,245,946 shares of common stock, $0.01 par value per share. MANHATTAN ASSOCI

Filing Documents

• manh-20240630.htm (10-Q) — 1948KB
• manh-ex31_1.htm (EX-31.1) — 13KB
• manh-ex31_2.htm (EX-31.2) — 13KB
• manh-ex32.htm (EX-32) — 7KB
• 0000950170-24-086805.txt ( ) — 5721KB
• manh-20240630.xsd (EX-101.SCH) — 500KB
• manh-20240630_htm.xml (XML) — 1029KB

Financial Statements

Financial Statements. Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended June 30, 2024 and 2023 (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited ) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 24 Item 4.

Controls and Procedures

Controls and Procedures. 24 PART II OTHER INFORMATION Item 1. Legal Proceedings. 26 Item 1A. Risk Factors. 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 26 Item 3. Defaults Upon Senior Securities. 26 Item 4. Mine Safety Disclosures. 26 Item 5. Other Information. 26 Item 6. Exhibits. 27 Signatures. 28 2 PART I F INANCIAL INFORMATION I tem 1. Financial Statements MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES C ondensed 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 ) (

Financial Statements (continued)

Item 1. Financial Statements (continued) MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES C ondensed 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 See accompanying Notes to Condensed Consolidated Financial Statements. 4

Financial Statements (continued)

Item 1. Financial Statements (continued) MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES C onsolidated Statements of Comprehensive Income (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) Net income $ 52,766 $ 39,620 $ 106,567 $ 78,411 Foreign currency translation adjustment, net of tax 11 ( 16 ) ( 716 ) 792 Comprehensive income $ 52,777 $ 39,604 $ 105,851 $ 79,203 See accompanying Notes to Condensed Consolidated Financial Statements. 5

Financial Statements (continued)

Item 1. Financial Statements (continued) MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES C ondensed 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 See accompanying Notes to Condensed Consolidated Financial Statements. 6

Financial Statements (continued)

Item 1. Financial Statements (continued) MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Shareholders' Equity (in thousands, except share data) Accumulated Additional Other Total Common Stock Paid-In Retained Comprehensive Shareholders' Shares Amount Capital Earnings Loss Equity For the Three Months Ended June 30, 2024 Balance, March 31, 2024 (unaudited) 61,569,549 $ 615 $ - $ 266,757 $ ( 27,765 ) $ 239,607 Repurchase of common stock ( 346,068 ) ( 3 ) ( 23,957 ) ( 51,752 ) - ( 75,712 ) Restricted stock units issuance 22,157 - - - - - Excise tax on net stock repurchases - - ( 709 ) - - ( 709 ) Equity-based compensation - - 24,666 - - 24,666 Foreign currency translation adjustment - - - - 11 11 Net income - - - 52,766 - 52,766 Balance, June 30, 2024 (unaudited) 61,245,638 $ 612 $ - $ 267,771 $ ( 27,754 ) $ 240,629 For the Six Months Ended June 30, 2024 Balance, December 31, 2023 (audited) 61,566,037 $ 615 $ - $ 304,701 $ ( 27,038 ) $ 278,278 Repurchase of common stock ( 804,804 ) ( 8 ) ( 46,041 ) ( 143,497 ) - ( 189,546 ) Restricted stock units issuance 484,405 5 ( 5 ) - - - Excise tax accrued - - ( 715 ) - - ( 715 ) Equity-based compensation - - 46,761 - - 46,761 Foreign currency translation adjustment - - - - ( 716 ) ( 716 ) Net income - - - 106,567 - 106,567 Balance, June 30, 2024 (unaudited) 61,245,638 $ 612 $ - $ 267,771 $ ( 27,754 ) $ 240,629 For the Three Months Ended June 30, 2023 Balance, March 31, 2023 (unaudited) 62,026,840 $ 620 $ - $ 207,176 $ ( 26,724 ) $ 181,072 Repurchase of common stock ( 385,047 ) ( 3 ) ( 17,301 ) ( 50,123 ) - (

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View this 10-Q filing on SEC EDGAR