Manhattan Associates Reports Record Results

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.

Results for the fourth Quarter ended December 31, 2022: Consolidated total revenue was $198.1 million for Q4 2022, compared to $171.5 million for Q4 2021.
• Cloud subscription revenue was $51.7 million for Q4 2022, compared to $34.8 million for Q4 2021.
• License revenue was $5.0 million for Q4 2022, compared to $11.9 million for Q4 2021.
• 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 2021.
• 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 totalled $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.
– 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.
– 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.
– Services revenue was $394.1 million for the twelve months ended December 31, 2022, compared to $334.8 million for the twelve months ended December 31, 2021.
– 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 the Board of Directors, for a total investment of $175.4 million.