Manhattan Associates Reports Record Fourth Quarter and Full Year Results

RPO Bookings Increase 36% over Prior Year on Strong Demand

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:

• Consolidated total revenue was $238.3 million for Q4 2023, compared to $198.1 million for Q4 2022.
  • Cloud subscription revenue was $71.4 million for Q4 2023, compared to $51.7 million for Q4 2022.
  • License revenue was $5.2 million for Q4 2023, compared to $5.0 million for Q4 2022.
  • Services revenue was $119.1 million for Q4 2023, compared to $99.8 million for Q4 2022.
• GAAP diluted earnings per share was $0.78 for Q4 2023, compared to $0.60 for Q4 2022.
• 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:

• Consolidated total revenue for the twelve months ended December 31, 2023, was $928.7 million, compared to $767.1 million for the twelve months ended December 31, 2022.
  • Cloud subscription revenue was $254.6 million for the twelve months ended December 31, 2023, compared to $176.5 million for the twelve months ended December 31, 2022.
  • License revenue was $18.2 million for the twelve months ended December 31, 2023, compared to $24.8 million for the twelve months ended December 31, 2022.
  • Services revenue was $487.9 million for the twelve months ended December 31, 2023, compared to $394.1 million for the twelve months ended December 31, 2022.
• GAAP diluted earnings per share for the twelve months ended December 31, 2023, was $2.82, compared to $2.03 for the twelve months ended December 31, 2022.
• Adjusted diluted earnings per share, a non-GAAP measure, was $3.74 for the twelve months ended December 31, 2023, compared to $2.76 for the twelve months ended December 31, 2022.
• GAAP operating income was $209.9 million for the twelve months ended December 31, 2023, compared to $152.7 million for the twelve months ended December 31, 2022.
• Adjusted operating income, a non-GAAP measure, was $281.5 million for the twelve months ended December 31, 2023, compared to $212.1 million for the twelve months ended December 31, 2022.
• Cash flow from operations was $246.2 million for the twelve months ended December 31, 2023, compared to $179.6 million for the twelve months ended December 31, 2022.
• During the twelve months ended December 31, 2023, the Company repurchased 1,024,328 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $166.0 million.

2024 GUIDANCE

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

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.

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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