Manhattan Associates Q3 2024 Update

TL;DR

MANH Q3 2024: Revenue streams detailed across hardware, cloud, and maintenance. FY ends Dec 31.

AI Summary

Manhattan Associates Inc. reported its Q3 2024 results, ending September 30, 2024. The filing details various financial components including hardware sales, capitalized contract costs, and revenue from cloud subscriptions and maintenance across different regions like the Americas and Asia Pacific. The company's fiscal year ends on December 31st.

Why It Matters

This filing provides insights into Manhattan Associates' financial performance and revenue streams for the third quarter of 2024, which can influence investor decisions.

Risk Assessment

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

Key Numbers

• Q3 2024 — Reporting Period (Covers the third quarter of 2024.)
• 1231 — Fiscal Year End (Indicates the company's financial year concludes on December 31st.)

Key Players & Entities

• MANHATTAN ASSOCIATES INC (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241025 (date) — Filing Date
• 7709557070 (dollar_amount) — Business Phone Number
• GA (location) — State of Incorporation and Business Address
• 1231 (date) — Fiscal Year End

FAQ

Key Financial Figures

• $0.01 — ows: 61,075,279 shares of common stock, $0.01 par value per share. MANHATTAN ASSOCI

Filing Documents

• manh-20240930.htm (10-Q) — 1965KB
• manh-ex31_1.htm (EX-31.1) — 14KB
• manh-ex31_2.htm (EX-31.2) — 14KB
• manh-ex32.htm (EX-32) — 8KB
• 0000950170-24-117433.txt ( ) — 5897KB
• manh-20240930.xsd (EX-101.SCH) — 605KB
• manh-20240930_htm.xml (XML) — 1034KB

Financial Statements

Financial Statements. Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Shareholders' Equity for the three and nine months ended September 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. 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 25 Item 4.

Controls and Procedures

Controls and Procedures. 25 PART II OTHER INFORMATION Item 1. Legal Proceedings. 27 Item 1A. Risk Factors. 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 27 Item 3. Defaults Upon Senior Securities. 27 Item 4. Mine Safety Disclosures. 27 Item 5. Other Information. 27 Item 6. Exhibits. 28 Signatures. 29 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) September 30, 2024 December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 214,952 $ 270,741 Accounts receivable, net 199,756 181,173 Prepaid expenses and other current assets 37,605 27,276 Total current assets 452,313 479,190 Property and equipment, net 12,809 11,795 Operating lease right-of-use assets 50,094 21,645 Goodwill, net 62,236 62,235 Deferred income taxes 86,551 66,043 Other assets 34,137 32,445 Total assets $ 698,140 $ 673,353 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 23,183 $ 24,508 Accrued compensation and benefits 63,010 73,210 Accrued and other liabilities 23,227 27,374 Deferred revenue 252,537 237,793 Income taxes payable 286 3,030 Total current liabilities 362,243 365,915 Operating lease liabilities, long-term 50,028 17,694 Other non-current liabilities 7,918 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; 61,072,619 and 61,566,037 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 610 615 Retained earnings 303,361 304,701 Accumulated other comprehensive loss ( 26,020

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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) Revenue: Cloud subscriptions $ 86,485 $ 65,033 $ 246,873 $ 183,196 Software license 3,762 3,870 9,633 12,967 Maintenance 34,491 35,296 104,736 106,772 Services 137,009 127,965 406,035 368,744 Hardware 4,934 6,277 19,274 18,791 Total revenue 266,681 238,441 786,551 690,470 Costs and expenses: Cost of cloud subscriptions, maintenance and services 118,269 111,142 356,920 322,914 Cost of software license 391 297 1,068 967 Research and development 34,349 33,093 104,693 95,487 Sales and marketing 16,586 17,650 55,669 54,278 General and administrative 20,308 21,371 62,623 61,561 Depreciation and amortization 1,688 1,440 4,670 4,247 Total costs and expenses 191,591 184,993 585,643 539,454 Operating income 75,090 53,448 200,908 151,016 Other income, net 1,312 1,739 3,222 2,923 Income before income taxes 76,402 55,187 204,130 153,939 Income tax provision 12,621 5,766 33,782 26,107 Net income $ 63,781 $ 49,421 $ 170,348 $ 127,832 Basic earnings per share $ 1.04 $ 0.80 $ 2.77 $ 2.07 Diluted earnings per share $ 1.03 $ 0.79 $ 2.74 $ 2.05 Weighted average number of shares: Basic 61,169 61,639 61,404 61,902 Diluted 61,948 62,310 62,186 62,501 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) Net income $ 63,781 $ 49,421 $ 170,348 $ 127,832 Foreign currency translation adjustment, net of tax 1,734 ( 2,086 ) 1,018 ( 1,294 ) Comprehensive income $ 65,515 $ 47,335 $ 171,366 $ 126,538 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) Nine Months Ended September 30, 2024 2023 (unaudited) (unaudited) Operating activities: Net income $ 170,348 $ 127,832 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,670 4,247 Equity-based compensation 70,614 53,598 (Gain) loss on disposal of equipment ( 131 ) 42 Deferred income taxes ( 20,544 ) ( 18,359 ) Unrealized foreign currency loss 906 922 Changes in operating assets and liabilities: Accounts receivable, net ( 17,515 ) ( 17,168 ) Other assets ( 9,688 ) ( 7,747 ) Accounts payable, accrued and other liabilities ( 13,367 ) 13,477 Income taxes ( 7,956 ) ( 4,347 ) Deferred revenue 12,962 5,362 Net cash provided by operating activities 190,299 157,859 Investing activities: Purchase of property and equipment ( 5,547 ) ( 2,761 ) Net cash used in investing activities ( 5,547 ) ( 2,761 ) Financing activities: Repurchase of common stock ( 241,150 ) ( 195,716 ) Net cash used in financing activities ( 241,150 ) ( 195,716 ) Foreign currency impact on cash 609 ( 2,533 ) Net change in cash and cash equivalents ( 55,789 ) ( 43,151 ) Cash and cash equivalents at beginning of period 270,741 225,463 Cash and cash equivalents at end of period $ 214,952 $ 182,312 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 September 30, 2024 Balance, June 30, 2024 (unaudited) 61,245,638 $ 612 $ - $ 267,771 $ ( 27,754 ) $ 240,629 Repurchase of common stock ( 202,209 ) ( 2 ) ( 23,411 ) ( 28,191 ) - ( 51,604 ) Restricted stock units issuance 29,190 - - - - - Excise tax on net stock repurchases - - ( 442 ) - - ( 442 ) Equity-based compensation - - 23,853 - - 23,853 Foreign currency translation adjustment - - - - 1,734 1,734 Net income - - - 63,781 - 63,781 Balance, September 30, 2024 (unaudited) 61,072,619 $ 610 $ - $ 303,361 $ ( 26,020 ) $ 277,951 For the Nine Months Ended September 30, 2024 Balance, December 31, 2023 (audited) 61,566,037 $ 615 $ - $ 304,701 $ ( 27,038 ) $ 278,278 Repurchase of common stock ( 1,007,013 ) ( 10 ) ( 69,452 ) ( 171,688 ) - ( 241,150 ) Restricted stock units issuance 513,595 5 ( 5 ) - - - Excise tax accrued - - ( 1,157 ) - - ( 1,157 ) Equity-based compensation - - 70,614 - - 70,614 Foreign currency translation adjustment - - - - 1,018 1,018 Net income - - - 170,348 - 170,348 Balance, September 30, 2024 (unaudited) 61,072,619 $ 610 $ - $ 303,361 $ ( 26,020 ) $ 277,951 For the Three Months Ended September 30, 2023 Balance, June 30, 2023 (unaudited) 61,668,512 $ 617 $ - $ 196,673 $ ( 26,740 ) $ 170,550 Repurchase of common stock ( 136,165 ) ( 1 ) ( 18,82

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View this 10-Q filing on SEC EDGAR