On October 22, 2024, Manhattan Associates Inc (MANH, Financial) released its 8-K filing, reporting impressive financial results for the third quarter of 2024. The company, a leader in supply chain and omnichannel commerce solutions, achieved record revenue and earnings, significantly surpassing analyst estimates. This performance underscores the company's robust market position and strategic execution.
Company Overview
Founded in 1990, Manhattan Associates Inc provides software solutions that enable retailers, wholesalers, manufacturers, and logistics providers to manage their supply chains, inventory, and omnichannel operations. Serving over 1,200 customers globally, the company is a key player in the software industry, driving innovation and efficiency in commerce operations.
Q3 2024 Financial Performance
Manhattan Associates reported a total revenue of $266.7 million for Q3 2024, exceeding the analyst estimate of $263.12 million. This marks a significant increase from the $238.4 million reported in Q3 2023. The company's GAAP diluted earnings per share (EPS) reached $1.03, surpassing the estimated $0.75 and reflecting a substantial rise from $0.79 in the previous year. Non-GAAP adjusted diluted EPS was $1.35, compared to $1.05 in Q3 2023.
Revenue Breakdown and Key Metrics
The revenue growth was driven by a 33% increase in cloud subscription revenue, which reached $86.5 million, up from $65.0 million in Q3 2023. Services revenue also saw an increase, totaling $137.0 million compared to $128.0 million in the previous year. License revenue remained relatively stable at $3.8 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $266.7 million | $238.4 million |
| Cloud Subscription Revenue | $86.5 million | $65.0 million |
| GAAP EPS | $1.03 | $0.79 |
| Non-GAAP Adjusted EPS | $1.35 | $1.05 |
Operational Highlights and Strategic Insights
GAAP operating income for Q3 2024 was $75.1 million, up from $53.4 million in Q3 2023. Adjusted operating income, a non-GAAP measure, was $98.9 million, compared to $72.5 million in the previous year. Cash flow from operations increased to $62.3 million, highlighting the company's strong cash generation capabilities.
“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.
Stock Repurchase and Financial Position
During the quarter, Manhattan Associates repurchased 194,712 shares of its common stock, investing $49.7 million. The company's cash position improved to $215.0 million as of September 30, 2024, compared to $202.7 million at the end of the previous quarter. The Board of Directors has approved replenishing the share repurchase authority to $75.0 million, reflecting confidence in the company's financial health and future prospects.
Conclusion
Manhattan Associates Inc's strong Q3 2024 performance, characterized by record revenue and earnings, highlights its effective strategic execution and robust demand for its solutions. The company's ability to exceed analyst estimates and maintain a strong financial position underscores its leadership in the software industry, making it a compelling consideration for value investors.
Explore the complete 8-K earnings release (here) from Manhattan Associates Inc for further details.
