In This Article:
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Total Revenue: $256 million in Q4, up 7% year-over-year; $1.04 billion for the full year, up 12%.
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Cloud Revenue: $90 million in Q4, up 26%; $337 million for the full year, up 32%.
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RPO (Remaining Performance Obligation): $1.8 billion, up 25% year-over-year.
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Adjusted Earnings Per Share: $1.17 in Q4, up 14%; $4.72 for the full year, up 26%.
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GAAP Earnings Per Share: $3.51 for the full year, up 24%.
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Operating Margin: 35.3% in Q4; 34.7% for the full year, a 440 basis point improvement over 2023.
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Operating Cash Flow: $105 million in Q4, up 18%; $295 million for the full year.
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Free Cash Flow Margin: 39.7% in Q4; 27.5% for the full year.
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Deferred Revenue: $279 million, up 17% year-over-year.
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Cash and Cash Equivalents: $266 million with zero debt.
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Share Repurchases: $44 million in Q4; $242 million for the full year.
Release Date: January 28, 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) surpassed the $1 billion total revenue milestone in 2024, achieving new records in RPO, total revenue, operating profit, free cash flow, and earnings per share.
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Q4 2024 was a record quarter with revenue increasing by 7% to $256 million, highlighted by 26% growth in cloud revenue.
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The company achieved a 25% increase in remaining performance obligation (RPO) to $1.8 billion, indicating strong future revenue potential.
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Manhattan Associates Inc (NASDAQ:MANH) has a strong pipeline with a 70% win rate and significant opportunities for sustainable future growth.
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The company is committed to innovation, investing $138 million in research and development in 2024, which is expanding its total addressable market.
Negative Points
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Approximately 10% of customers with in-flight implementations have reduced their planned services work for the upcoming year, impacting services revenue.
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Services revenue is expected to trough in Q1 2025 due to deal pushes, reduced customization, and higher partner utilization.
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Foreign exchange headwinds have impacted RPO growth and are expected to continue affecting financial performance in 2025.
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The company anticipates a reduction in services revenue for 2025, which could create some financial volatility.
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Despite strong software demand, there is sluggishness in the services segment, partly due to budgetary constraints among customers.
Q & A Highlights
Q: Can you provide more insight into the seasonality of your cloud bookings, particularly in Q1? A: Eddie Capel, President and CEO, stated that there isn't a clear seasonality pattern, except for a slight slowdown in the middle of the year due to vacations. Q4 was a record quarter, and Q1 has started strong, with balanced performance across the product portfolio and geographies.