In This Article:
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Total Revenue: $263 million, up 3% year-over-year.
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Cloud Revenue: Increased 21% to $94 million.
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Services Revenue: Declined 8% to $121 million.
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RPO (Remaining Performance Obligations): $1.9 billion, up 25% year-over-year.
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Adjusted Operating Margin: 34.7%, up over 340 basis points year-over-year.
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Adjusted EPS: $1.19, up 16% year-over-year.
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GAAP EPS: $0.85, down 1% year-over-year.
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Operating Cash Flow: Increased 37% to $75 million.
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Free Cash Flow Margin: 28%.
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Deferred Revenue: Increased 12% to $298 million.
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Cash and Cash Equivalents: $206 million with zero debt.
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Share Repurchases: $100 million invested in share repurchases.
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2025 Revenue Guidance: $1.06 billion to $1.07 billion.
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2025 Adjusted EPS Guidance: Increased to $4.54 to $4.64.
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2025 Cloud Revenue Guidance: $405 million to $410 million.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Manhattan Associates Inc (NASDAQ:MANH) reported better-than-expected top- and bottom-line results for Q1 2025, with a 21% growth in Cloud revenue.
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The company achieved a 25% year-over-year increase in Remaining Performance Obligations (RPO), reaching approximately $1.9 billion.
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Manhattan Associates Inc (NASDAQ:MANH) was named Google Cloud's Business Applications Partner of the Year for Supply Chain and Logistics, highlighting its innovation and customer success.
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The company launched a new product, Enterprise Promise and Fulfill, designed to optimize B2B order promising and fulfillment, enhancing customer experiences.
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Manhattan Associates Inc (NASDAQ:MANH) maintained a strong competitive win rate of about 70%, with 50% of new Cloud bookings coming from net new logos.
Negative Points
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The macro environment remains uncertain, with potential impacts from tariffs and global economic conditions, leading to cautious near-term outlooks.
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Services revenue declined by 8% year-over-year, reflecting customer budgetary constraints and shifting services work to future periods.
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FX volatility posed a $2 million headwind to Q1 total revenue, although it provided a $14 million tailwind to sequential RPO growth.
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The company remains cautious about near-term Services revenue growth due to the flexibility of time and materials contracts and the changing tariff environment.
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The average contract duration remains at 5.5 to 6 years, with some customers electing longer ramp timelines, potentially delaying revenue recognition.
Q & A Highlights
Q: Can you provide insights into the sales pipeline and how the year might unfold given the current macroeconomic uncertainties, particularly with tariffs? A: Eric Clark, President and CEO, stated that despite the uncertainties, Manhattan Associates had a solid Q1 with strong pipeline visibility into Q2. They remain confident in their guidance, noting that any challenges would likely first appear in Services. However, they are not currently seeing such challenges and continue to experience strong bookings and demand.