NASDAQ$MANH

Manhattan Associates Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Manhattan Associates reported record revenue and earnings, driven by strong demand and growth in cloud and service revenues. The company raised its full-year guidance for 2023.

Manhattan Associates reported a strong second quarter with record revenue of $231.0 million, a 20.4% increase compared to Q2 2022. GAAP EPS was $0.63, and non-GAAP EPS was $0.88. The company's performance was driven by robust demand, with cloud revenue growing by 44% and service revenue by 23%.

  • Consolidated total revenue reached $231.0 million, up from $191.9 million in Q2 2022.
  • Cloud subscription revenue increased to $60.9 million, compared to $42.2 million in the prior year.
  • GAAP diluted earnings per share was $0.63, compared to $0.49 in Q2 2022.
  • RPO bookings increased 38% over prior year on strong demand.

Headline financials

Total Revenue

$231M

Previous: $192M+20.4%
EPS (adj)

$0.88

Previous: $0.69+27.5%
Capital Expenditures

-$1.68M

Previous: -$2.24M+25.3%
Free Cash Flow

$37.9M

Previous: $28.6M+32.8%
Net Income

$39.6M

Previous: $30.8M+28.5%
Operating Income

$50.5M

Previous: $37.3M+35.5%
Gross Profit

$122M

Previous: $103M+18.3%
Cash & Equivalents

$153M

Previous: $214M-28.3%
Total Assets

$527M

Previous: $514M+2.5%
Stock-Based Comp

$17.9M

Previous: $15.5M+15.4%

Revenue & EPS history

Manhattan Associates · Revenue · Quarterly

$231M

Q2 2023+20.4%vs Q2 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

Manhattan Associates · $231M total across 5 segments · Q2 2023

  • Services
    $125M+23.4%
  • Cloud subscriptions
    $60.9M+44.3%
  • Maintenance
    $35.8M-0.5%
  • Hardware
    $5.89M-23.1%
  • Software license
    $3.7M-27.8%

Forward guidance

Manhattan Associates provides revenue, operating margin, and diluted earnings per share guidance for the full year 2023.

Tailwinds

  • Total revenue is expected to be in the range of $886 million to $894 million, representing a growth of 15% to 17%.
  • GAAP operating margin is projected to be between 19.5% and 19.8%.
  • Adjusted operating margin is anticipated to be in the range of 27.4% to 27.6%.
  • GAAP EPS is expected to be between $2.18 and $2.22, a growth of 7% to 9%.
  • Adjusted EPS is projected to be in the range of $3.07 to $3.11, reflecting an 11% to 13% increase.

Headwinds

  • Equity-based compensation is expected to be 7.9% to 7.8%.
  • Excess tax benefit on stock vesting is expected to be ($0.06).
  • The guidance does not reflect the potential impact of mergers, acquisitions, or other business combinations.
  • Actual results may differ materially due to economic conditions, competition, and other risk factors.
  • Currency Fluctuation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.7%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+0.7%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+19.5%

Q2 2019

Best reaction

-24.5%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+2.2%+2.6%
Q4 2025-5.1%-11.2%-20.2%
Q3 2025-5.0%-8.0%-16.7%
Q2 2025-0.2%-1.5%+0.4%
Q1 2025+6.0%+7.5%+14.2%
Q4 2024-24.5%-32.1%-40.1%
Q3 2024-8.2%-6.7%-8.0%
Q2 2024+11.0%+14.8%+15.3%
Q1 2024-9.6%-8.5%-1.3%
Q4 2023+7.4%+10.9%+12.1%
Q3 2023+4.7%+2.2%+20.4%
Q2 2023-1.9%-3.0%-1.2%
Q1 2023+6.4%+6.4%+12.9%
Q4 2022+9.8%+7.0%+7.9%
Q3 2022-7.9%-6.4%-3.7%
Q2 2022+15.5%+18.2%+24.7%
Q1 2022-3.9%-3.1%-11.6%
Q4 2021-4.7%-3.5%-0.2%
Q3 2021+5.6%+6.7%-5.3%
Q2 2021+6.1%+8.4%+10.6%
Q1 2021+12.3%+7.0%+5.8%
Q4 2020+3.5%+13.1%-0.9%
Q3 2020-1.2%-7.4%-2.8%
Q2 2020-1.0%-1.3%-2.4%
Q1 2020+4.8%+5.0%+38.7%
Q4 2019-10.4%-12.1%-22.6%
Q3 2019-2.3%+0.4%+3.3%
Q2 2019+19.5%+23.2%+19.0%
Q1 2019+11.3%+12.2%+9.2%
Q4 2018-4.9%+0.1%+4.5%
Q3 2018-7.3%-5.6%-1.3%
Q2 2018-4.3%-2.8%+11.5%
Q1 2018+1.0%+4.4%+3.4%
Q4 2017-16.4%-17.6%-10.3%
Q3 2017-6.9%-9.7%-10.3%
Q2 2017-8.1%-4.6%-11.6%
Q1 2017-9.5%-8.0%-6.1%
Q4 2016-6.9%-4.4%-0.7%
Q3 2016-8.7%-10.1%-6.9%
Q2 2016-4.0%-6.1%-5.8%
Q1 2016+15.0%
Q4 2015-2.0%
Q3 2015+2.7%
Q2 2015+9.1%
Q1 2015-3.1%
Q4 2014+12.1%
Q3 2014+4.7%
Q2 2014-0.7%
Q1 2014+1.5%
Q4 2013-0.7%
Q3 2013+15.8%
Q2 2013+2.6%
Q1 2013-0.7%
Q4 2012+8.1%
Q3 2012-0.2%
Q2 2012+8.5%
Q1 2011-0.3%
Q1 2012+2.7%
Q4 2009+1.8%
Q1 2010+1.8%
Q4 2011+1.8%
Q3 2010-0.6%
Q3 2011-0.6%
Q2 2010+0.6%
Q4 2010+0.6%
Q2 2011+0.6%

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