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Q3 Earnings Roundup: Manhattan Associates (NASDAQ:MANH) And The Rest Of The Vertical Software Segment

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Q3 Earnings Roundup: Manhattan Associates (NASDAQ:MANH) And The Rest Of The Vertical Software Segment

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how vertical software stocks fared in Q3, starting with Manhattan Associates (NASDAQ:MANH).

Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 4 vertical software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 2% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.8% since the latest earnings results.

Manhattan Associates (NASDAQ:MANH)

Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ:MANH) offers a software-as-service platform that helps customers manage their supply chains.

Manhattan Associates reported revenues of $266.7 million, up 11.8% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

“Manhattan delivered record third quarter and year-to-date results. Our fundamentals are strong, and we continue to deliver a balanced financial performance across top-line growth and profitability and industry leading innovation each quarter,” said Manhattan Associates president and CEO Eddie Capel.

Manhattan Associates Total Revenue
Manhattan Associates Total Revenue

Manhattan Associates delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 6.6% since reporting and currently trades at $273.43.

Is now the time to buy Manhattan Associates? Access our full analysis of the earnings results here, it’s free.

Best Q3: Alarm.com (NASDAQ:ALRM)

Founded in 2000 as a business unit within MicroStrategy, Alarm.com (NASDAQ:ALRM) is a software-as-a-service platform that enables users to control their security systems and smart home appliances from a single app.

Alarm.com reported revenues of $240.5 million, up 8.4% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.

Alarm.com Total Revenue
Alarm.com Total Revenue

Alarm.com achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.7% since reporting. It currently trades at $60.96.


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