Manhattan Associates Reports Record Fourth Quarter & Full Year Results

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Leading Supply Chain and Omnichannel Commerce Solutions
provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $198.1 million for the fourth quarter ended December 31, 2022. GAAP diluted earnings per share for Q4 2022 was $0.60 compared to $0.32 in Q4 2021. Non-GAAP adjusted diluted earnings per share for Q4 2022 was $0.81 compared to $0.48 in Q4 2021.

“Manhattan’s business momentum is strong, and our fourth quarter results exceeded expectations. This contributed to the company achieving record top- and bottom-line results in 2022,” said Manhattan Associates president and CEO Eddie Capel.

“We enter 2023 optimistic about our market opportunity and remain committed to investing in market leading innovation. We are confident these investments will contribute to our high levels of customer satisfaction and extend our positioning as the leading innovator in core Supply Chain Execution, Omni-channel and retail Point of Sale solutions,” Capel concluded.

FOURTH QUARTER 2022 FINANCIAL SUMMARY:

  • • Consolidated total revenue was $198.1 million for Q4 2022, compared to $171.5 million for Q4 2021.

o Cloud subscription revenue was $51.7 million for Q4 2022, compared to $34.8 million for Q4 2021.

o License revenue was $5.0 million for Q4 2022, compared to $11.9 million for Q4 2021.

o Services revenue was $99.8 million for Q4 2022, compared to $81.6 million for Q4
2021.

  • • GAAP diluted earnings per share was $0.60 for Q4 2022, compared to $0.32 for Q4 021.
  • • Adjusted diluted earnings per share, a non-GAAP measure, was $0.81 for Q4 2022, compared to $0.48 for Q4 2021.
  • • GAAP operating income was $44.7 million for Q4 2022, compared to $27.1 million for Q4 2021.
  • • Adjusted operating income, a non-GAAP measure, was $59.9 million for Q4 2022, compared to $39.1 million for Q4 2021.
  • • Cash flow from operations was $55.2 million for Q4 2022, compared to $40.1 million for Q4 2021. Days Sales Outstanding was 77 days at December 31, 2022, compared to 67 days at September 30, 2022.
  • • Cash totaled $225.5 million at December 31, 2022, compared to $197.1 million at September 30, 2022.
  • • During the three months ended December 31, 2022, the Company repurchased 206,418 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $25.2 million. In January 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.

FULL YEAR 2022 FINANCIAL SUMMARY:

  • • Consolidated total revenue for the twelve months ended December 31, 2022, was $767.1 million, compared to $663.6 million for the twelve months ended December 31, 2021.

o Cloud subscription revenue was $176.5 million for the twelve months ended December 31, 2022, compared to $122.2 million for the twelve months ended December 31, 2021.

o License revenue was $24.8 million for the twelve months ended December 31, 2022, compared to $37.1 million for the twelve months ended December 31, 2021.

o Services revenue was $394.1 million for the twelve months ended December 31,
2022, com

  • GAAP diluted earnings per share for the twelve months ended December 31, 2022, was $2.03, compared to $1.72 for the twelve months ended December 31, 2021.

  • • Adjusted diluted earnings per share, a non-GAAP measure, was $2.76 for the twelve months ended December 31, 2022, compared to $2.23 for the twelve months ended December 31, 2021.

  • • GAAP operating income was $152.7 million for the twelve months ended December 31, 2022, compared to $134.3 million for the twelve months ended December 31, 2021.

  • • Adjusted operating income, a non-GAAP measure, was $212.1 million for the twelve months ended December 31, 2022, compared to $177.9 million for the twelve months ended December 31, 2021.

  • • Cash flow from operations was $179.6 million for the twelve months ended December 31, 2022, compared to $185.2 million for the twelve months ended December 31, 2021.

  • • During the twelve months ended December 31, 2022, the Company repurchased 1,352,954 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $175.4 million.

2023 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2023:

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 and guideposts in the supplemental information below, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. Those statements do not reflect the potential impact of mergers, acquisitionsor other business combinations that may be completed after the date of the release.

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 and guideposts, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

Manhattan Associates’ conference call regarding its fourth quarter and twelve months ended December 31, 2022, financial results will be held today, February 2, 2023, 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’ first quarter 2023 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 twelve months ended December 31, 2022.

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, acquisition-related costs and the amortization of these costs, and (from time to time) restructuring charges – all net of income tax effects. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.