MANH Manhattan Associates Inc

 

 

 

United States

Securities And Exchange Commission

Washington, DC 20549

______________

FORM 8-K

____________

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 30, 2024

 

Manhattan Associates, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Georgia		0-23999		58-2373424
(State or Other Jurisdiction of Incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

2300 Windy Ridge Parkway, Tenth Floor, Atlanta, Georgia

30339

(Address of Principal Executive Offices)

(Zip Code)

 

(770) 955-7070

(Registrant’s telephone number, including area code)

 

NONE

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	MANH	Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

 

On January 30, 2024, Manhattan Associates, Inc. (“we”, “our”, or the “Company”) issued a press release providing its financial results for the three and twelve months ended December 31, 2023. A copy of this press release is attached as Exhibit 99.1. Pursuant to General Instruction B.2 of Form 8-K, this exhibit is “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

Non-GAAP Financial Measures in the Press Release

The press release includes, as additional information regarding our operating results, our adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share (collectively, “adjusted results”), which exclude the impact of equity-based compensation and related income tax effects. We have developed our internal reporting, compensation and planning systems using these additional financial measures.

These various measures are not in accordance with, or alternatives for, financial measures calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) and may be different from similarly titled non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP.

Non-GAAP measures used in the press release exclude the impact of equity-based compensation and related income tax effects because equity-based compensation expense typically does not require cash settlement by the Company. We also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes related to the stock award from the compensation expense recorded for financial reporting purposes.

We assess our operating performance using these adjusted measures and believe our peers also typically present non-GAAP results similarly adjusted. Further, we rely on adjusted results as primary measures to review and assess the operating performance of our management team in connection with our executive compensation and bonus plans.

Management refers to adjusted results in making operating decisions because we believe they provide meaningful supplemental information regarding our operational performance and our ability to invest in research and development and fund capital expenditures and acquisitions. In addition, adjusted results facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results.

We similarly believe reporting adjusted results facilitates investors’ understanding of our historical operating trends because it provides supplemental measurement information in evaluating the operating results of our business. We also believe that adjusted results provide a basis for comparisons to other companies in the industry and enable investors to evaluate our operating performance in a manner consistent with our internal basis of measurement.

 

 

 

 

 

 

 

 

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Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit
Number	Description
99.1	Press Release, dated January 30, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

Manhattan Associates, Inc.

 

 

 

By: /s/ Dennis B. Story

Dennis B. Story

Executive Vice President, Chief Financial Officer and Treasurer

 

 

 

Dated: January 30, 2024

 

3

 

 

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Exhibit 99.1

 

 

Contact:		Michael Bauer		Rick Fernandez
		Senior Director, Investor Relations		Director, Corporate Communications
		Manhattan Associates, Inc.		Manhattan Associates, Inc.
		678-597-7538		678-597-6988
		mbauer@manh.com		rfernandez@manh.com

 

Manhattan Associates Reports Record Fourth Quarter and Full Year Results

RPO Bookings Increase 36% over Prior Year on Strong Demand

 

ATLANTA – January 30, 2024 – Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $238.3 million for the fourth quarter ended December 31, 2023. GAAP diluted earnings per share for Q4 2023 was $0.78 compared to $0.60 in Q4 2022. Non-GAAP adjusted diluted earnings per share for Q4 2023 was $1.03 compared to $0.81 in Q4 2022.

“Manhattan’s business fundamentals and momentum are strong. Our fourth quarter results exceeded expectations, capping a very successful year for our company,” said Manhattan Associates president and CEO Eddie Capel.

“While appropriately cautious regarding the global economy, Manhattan enters 2024 from a position of strength, and we are optimistic about our growing market opportunity. We remain firmly committed to helping our customers succeed by delivering leading innovation across supply chain execution, omnichannel and retail point of sale markets,” Mr. Capel concluded.

FOURTH QUARTER 2023 FINANCIAL SUMMARY:

 

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 Adjusted diluted earnings per share, a non-GAAP measure, was $1.03 for Q4 2023, compared to $0.81 for Q4 2022.

 GAAP operating income was $58.9 million for Q4 2023, compared to $44.7 million for Q4 2022.

 Adjusted operating income, a non-GAAP measure, was $76.8 million for Q4 2023, compared to $59.9 million for Q4 2022.

 Cash flow from operations was $88.4 million for Q4 2023, compared to $55.2 million for Q4 2022. Days Sales Outstanding was 70 days at December 31, 2023, compared to 71 days at September 30, 2023.

 Cash totaled $270.7 million at December 31, 2023, compared to $182.3 million at September 30, 2023.

 During the three months ended December 31, 2023, the Company did not repurchase shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors. Our $75.0 million repurchase authority replenished by our Board of Directors in October 2023 remains in effect.
 

FULL YEAR 2023 FINANCIAL SUMMARY:

 

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2024 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2024:

		Guidance Range - 2024 Full Year
	($'s in millions, except operating margin and EPS)	$ Range				% Growth Range
	Total revenue	$1,015		$1,025		9%		10%
	Operating Margin:
	GAAP operating margin	21.2%		21.8%
	Equity-based compensation	7.5%		7.5%
	Adjusted operating margin(1)	28.7%		29.3%
	Diluted earnings per share (EPS):
	GAAP EPS	$2.81		$2.91		0%		3%
	Equity-based compensation	1.02		1.02
	Excess tax benefit on stock vesting(2)	(0.13)		(0.13)
	Adjusted EPS(1)	$3.69		$3.79		-1%		1%
	(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based
	compensation and the related income tax effects, if applicable.
	(2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2024.

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, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below.

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

 

 

 

 

 

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CONFERENCE CALL

Manhattan Associates’ conference call regarding its fourth quarter and twelve months ended December 31, 2023 financial results will be held today, January 30, 2024, 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 2024 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, 2023.

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 – net of income tax effects. They also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes from the compensation expense recorded for financial reporting purposes. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

 

 

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ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds and delivers leading edge cloud solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2024 Guidance” and statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including inflation; disruption in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; global instability, including the wars in Ukraine and the Middle East; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

 

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
		Three Months Ended December 31,				Year Ended December 31,
		2023		2022		2023		2022
		(unaudited)		(unaudited)
	Revenue:
	Cloud subscriptions	$71,416		$51,691		$254,612		$176,458
	Software license	5,239		4,979		18,206		24,848
	Maintenance	37,164		35,083		143,936		142,198
	Services	119,125		99,812		487,869		394,096
	Hardware	5,311		6,538		24,102		29,484
	Total revenue	238,255		198,103		928,725		767,084
	Costs and expenses:
	Cost of cloud subscriptions, maintenance and services	106,349		89,629		429,263		356,111
	Cost of software license	384		377		1,351		2,126
	Research and development	31,327		27,123		126,814		111,877
	Sales and marketing	20,212		16,656		74,490		64,537
	General and administrative	19,613		18,107		81,174		73,070
	Depreciation and amortization	1,505		1,506		5,752		6,663
	Total costs and expenses	179,390		153,398		718,844		614,384
	Operating income	58,865		44,705		209,881		152,700
	Other income, net	867		828		3,790		5,421
	Income before income taxes	59,732		45,533		213,671		158,121
	Income tax provision	10,996		7,665		37,103		29,162
	Net income	$48,736		$37,868		$176,568		$128,959
	Basic earnings per share	$0.79		$0.61		$2.86		$2.05
	Diluted earnings per share	$0.78		$0.60		$2.82		$2.03
	Weighted average number of shares:
	Basic	61,566		62,327		61,817		62,768
	Diluted	62,555		63,028		62,608		63,408

 

 

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

		Three Months Ended December 31,				Year Ended December 31,
		2023		2022		2023		2022
Operating income		$58,865		44,705		$209,881		152,700
Equity-based compensation (a)		17,973		15,152		71,571		59,361
Adjusted operating income (Non-GAAP)		$76,838		$59,857		$281,452		$212,061
Income tax provision		$10,996		7,665		$37,103		29,162
Equity-based compensation (a)		2,496		2,045		10,563		9,058
Tax benefit of stock awards vested (b)		26		(3)		3,480		4,383
Adjusted income tax provision (Non-GAAP)		$13,518		$9,707		$51,146		$42,603
Net income		$48,736		$37,868		$176,568		$128,959
Equity-based compensation (a)		15,477		13,107		61,008		50,303
Tax benefit of stock awards vested (b)		(26)		3		(3,480)		(4,383)
Adjusted net income (Non-GAAP)		$64,187		$50,978		$234,096		$174,879
Diluted EPS		$0.78		$0.60		$2.82		$2.03
Equity-based compensation (a)		0.25		0.21		0.97		0.79
Tax benefit of stock awards vested (b)		-		-		(0.06)		(0.07)
Adjusted diluted EPS (Non-GAAP)		$1.03		$0.81		$3.74		$2.76
Fully diluted shares		62,555		63,028		62,608		63,408

 

		Three Months Ended December 31,				Year Ended December 31,
		2023		2022		2023		2022
Cost of services		$7,234		$5,609		$28,571		$21,876
Research and development		3,963		3,341		15,674		13,081
Sales and marketing		1,760		1,543		7,093		6,003
General and administrative		5,016		4,659		20,233		18,401
Total equity-based compensation		$17,973		$15,152		$71,571		$59,361

 

 

 

 

 

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

		December 31, 2023				December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents		$	270,741			$	225,463
Accounts receivable, net			181,173				166,767
Prepaid expenses and other current assets			27,276				23,145
Total current assets			479,190				415,375
Property and equipment, net			11,795				12,803
Operating lease right-of-use assets			21,645				17,794
Goodwill, net			62,235				62,230
Deferred income taxes			66,043				37,206
Other assets			32,445				24,770
Total assets		$	673,353			$	570,178
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	24,508			$	25,701
Accrued compensation and benefits			73,210				54,469
Accrued and other liabilities			27,374				24,569
Deferred revenue			237,793				208,807
Income taxes payable			3,030				2,049
Total current liabilities			365,915				315,595
Operating lease liabilities, long-term			17,694				14,065
Other non-current liabilities			11,466				13,718
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2023 and December 31, 2022			-				-
Common stock, $.01 par value; 200,000,000 shares authorized; 61,566,037 and 62,191,570 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively			615				621
Retained earnings			304,701				253,711
Accumulated other comprehensive loss			(27,038	)			(27,532	)
Total shareholders' equity			278,278				226,800
Total liabilities and shareholders' equity		$	673,353			$	570,178

 

 

 

 

 

 

 

 

 

 

 

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

		Year Ended December 31,
		2023				2022
Operating activities:
Net income		$	176,568			$	128,959
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			5,752				6,663
Equity-based compensation			71,571				59,361
Loss (Gain) on disposal of equipment			57				(89	)
Deferred income taxes			(28,844	)			(29,711	)
Unrealized foreign currency loss (gain)			1,280				(1,515	)
Changes in operating assets and liabilities:
Accounts receivable, net			(13,084	)			(44,056	)
Other assets			(10,925	)			(10,247	)
Accounts payable, accrued and other liabilities			18,123				11,794
Income taxes			(1,416	)			765
Deferred revenue			27,136				57,706
Net cash provided by operating activities			246,218				179,630
Investing activities:
Purchases of property and equipment			(4,730	)			(6,587	)
Net cash used in investing activities			(4,730	)			(6,587	)
Financing activities:
Purchase of common stock			(196,047	)			(204,460	)
Net cash used in financing activities			(196,047	)			(204,460	)
Foreign currency impact on cash			(163	)			(6,826	)
Net change in cash and cash equivalents			45,278				(38,243	)
Cash and cash equivalents at beginning of period			225,463				263,706
Cash and cash equivalents at end of period		$	270,741			$	225,463

 

 

 

 

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MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

 

1. GAAP and adjusted earnings per share by quarter are as follows:

 

	2022										2023
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
GAAP Diluted EPS	$0.48		$0.49		$0.47		$0.60		$2.03		$0.62		$0.63		$0.79		$0.78		$2.82
Adjustments to GAAP:
Equity-based compensation	0.19		0.20		0.19		0.21		0.79		0.23		0.25		0.26		0.25		0.97
Tax benefit of stock awards vested	(0.07)		-		-		-		(0.07)		(0.05)		-		-		-		(0.06)
Adjusted Diluted EPS	$0.60		$0.69		$0.66		$0.81		$2.76		$0.80		$0.88		$1.05		$1.03		$3.74
Fully Diluted Shares	63,871		63,419		63,165		63,028		63,408		62,767		62,432		62,310		62,555		62,608

2. Revenues and operating income by reportable segment are as follows (in thousands):
 

	2022										2023
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Revenue:
Americas	$139,540		$151,996		$156,674		$155,674		$603,884		$170,759		$179,208		$186,564		$182,664		$719,195
EMEA	32,151		31,614		31,843		33,330		128,938		39,658		40,902		41,204		44,874		166,638
APAC	7,265		8,314		9,584		9,099		34,262		10,596		10,906		10,673		10,717		42,892
	$178,956		$191,924		$198,101		$198,103		$767,084		$221,013		$231,016		$238,441		$238,255		$928,725
GAAP Operating Income:
Americas	$21,393		$24,507		$22,914		$30,475		$99,289		$29,647		$32,326		$34,655		$38,530		$135,158
EMEA	10,517		9,423		9,851		10,239		40,030		12,793		13,556		14,415		15,959		56,723
APAC	2,062		3,323		4,005		3,991		13,381		4,645		4,601		4,378		4,376		18,000
	$33,972		$37,253		$36,770		$44,705		$152,700		$47,085		$50,483		$53,448		$58,865		$209,881
Adjustments (pre-tax):
Americas:
Equity-based compensation	$14,138		$15,538		$14,533		$15,152		$59,361		$16,640		$17,928		$19,030		$17,973		$71,571
	$14,138		$15,538		$14,533		$15,152		$59,361		$16,640		$17,928		$19,030		$17,973		$71,571
Adjusted non-GAAP Operating Income:
Americas	$35,531		$40,045		$37,447		$45,627		$158,650		$46,287		$50,254		$53,685		$56,503		$206,729
EMEA	10,517		9,423		9,851		10,239		40,030		12,793		13,556		14,415		15,959		56,723
APAC	2,062		3,323		4,005		3,991		13,381		4,645		4,601		4,378		4,376		18,000
	$48,110		$52,791		$51,303		$59,857		$212,061		$63,725		$68,411		$72,478		$76,838		$281,452

 

 

 

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3. Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

 

	2022										2023
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Revenue	($2,268)		($4,568)		($6,152)		($5,124)		($18,112)		($3,084)		$104		$2,755		$2,341		$2,116
Costs and expenses	(2,043)		(3,862)		(5,412)		(5,354)		(16,671)		(3,616)		(1,133)		1,033		1,212		(2,504)
Operating income	(225)		(706)		(740)		230		(1,441)		532		1,237		1,722		1,129		4,620
Foreign currency gains (losses) in other income	711		2,056		1,569		353		4,689		(810)		(516)		387		(527)		(1,466)
	$486		$1,350		$829		$583		$3,248		($278)		$721		$2,109		$602		3,154

 

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):
 

	2022										2023
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Operating income	$470		$710		$1,166		$1,900		$4,246		$1,632		$1,222		$728		$267		$3,849
Foreign currency gains (losses) in other income	809		2,085		1,713		738		5,345		(283)		(31)		812		(105)		393
Total impact of changes in the Indian Rupee	$1,279		$2,795		$2,879		$2,638		$9,591		$1,349		$1,191		$1,540		$162		$4,242

4. Other income includes the following components (in thousands):
 

	2022										2023
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Interest income	$19		$92		$112		$373		$596		$969		$1,555		$1,371		$1,409		5,304
Foreign currency gains (losses)	711		2,056		1,569		353		4,689		(810)		(516)		387		(527)		(1,466)
Other non-operating income (expense)	8		95		(69)		102		136		(16)		2		(19)		(15)		(48)
Total other income	$738		$2,243		$1,612		$828		$5,421		$143		$1,041		$1,739		$867		$3,790

5. Capital expenditures are as follows (in thousands):
 

	2022										2023
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Capital expenditures	$1,159		$1,084		$1,909		$2,435		$6,587		$666		$1,009		$1,086		$1,969		$4,730

 

 

 

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6. Stock Repurchase Activity (in thousands):

 

	2022										2023
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Shares purchased under publicly-announced buy-back program	383		417		347		206		1,353		515		381		128		-		1,024
Shares withheld for taxes due upon vesting of restricted stock	203		4		8		2		217		208		4		8		2		222
Total shares purchased	586		421		355		208		1,570		723		385		136		2		1,246
Total cash paid for shares purchased under publicly-announced buy-back program	$49,965		$50,151		$50,000		$25,234		$175,350		$74,177		$66,769		$25,072		$0		$166,018
Total cash paid for shares withheld for taxes due upon vesting of restricted stock	27,143		528		1,242		197		29,110		27,511		658		1,529		331		30,029
Total cash paid for shares repurchased	$77,108		$50,679		$51,242		$25,431		$204,460		$101,688		$67,427		$26,601		$331		$196,047

 

 

7. Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Over 98% of our RPO represent cloud native subscriptions with a non-cancelable term greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts are typically one year and not included in the RPO. Our RPO as of the end of each period appears below (in thousands):

 

	March 31, 2022				June 30, 2022				September 30, 2022				December 31, 2022				March 31, 2023				June 30, 2023				September 30, 2023				December 31, 2023
Remaining Performance Obligations	$	809,540			$	897,680			$	969,603			$	1,051,544			$	1,153,404			$	1,238,672			$	1,324,861			$	1,427,854

 

8. The 2017 U.S. Tax Cuts and Jobs Act eliminated the expensing of research and development costs as incurred for tax purposes beginning in 2022.

This law changes the timing of cash tax payments, increasing near-term taxable income and payments, but normalizing over time as these expenses are amortized. Our income tax payments increased by approximately $24 million and $26 million in 2023 and 2022, respectively, due to this law change. While there is still a possibility that legislation may be enacted that defers or eliminates the requirement to capitalize these costs, our current outlook factors in higher cash taxes as we will be required to make these payments unless the existing law is amended. This legislation does not impact earnings per share, does not create any incremental expense obligation and does not impact our ability to operationally grow cash flow.

 

 

 

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v3.24.0.1

Document and Entity Information	Jan. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 30, 2024
Entity Registrant Name	Manhattan Associates, Inc.
Entity Central Index Key	0001056696
Entity Emerging Growth Company	false
Securities Act File Number	0-23999
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-2373424
Entity Address, Address Line One	2300 Windy Ridge Parkway
Entity Address, Address Line Two	Tenth Floor
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	770
Local Phone Number	955-7070
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	MANH
Security Exchange Name	NASDAQ

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