Manhattan Associates Inc Reports Record Results with Strong Q4 and Full Year Performance
Revenue: Q4 2023 revenue reached $238.3 million, a 20.3% increase from Q4 2022.
Earnings Per Share: GAAP diluted EPS for Q4 2023 was $0.78, up from $0.60 in Q4 2022.
Cloud Subscription Growth: Cloud subscription revenue soared to $71.4 million in Q4 2023, a 38.1% jump from the previous year.
Operating Income: GAAP operating income for Q4 2023 was $58.9 million, a 31.8% increase from Q4 2022.
Cash Flow: Cash flow from operations for Q4 2023 was robust at $88.4 million, significantly higher than $55.2 million in Q4 2022.
Full Year Financials: Full year revenue was $928.7 million, and GAAP diluted EPS was $2.82 for 2023.
2024 Guidance: MANH projects full year 2024 revenue between $1,015 million and $1,025 million with GAAP EPS between $2.81 and $2.91.
On January 30, 2024, Manhattan Associates Inc (NASDAQ:MANH) released its 8-K filing, announcing record fourth quarter and full year results. The company, a leading provider of supply chain and omnichannel commerce solutions, reported a significant increase in revenue and earnings per share (EPS) for both the quarter and the full year, driven by strong demand for its cloud subscription services.
Company Overview
Founded in 1990, Manhattan Associates has established itself as a critical player in the software industry, helping retailers, wholesalers, manufacturers, and logistics providers optimize their supply chains, inventory, and omnichannel operations. With over 1,200 customers globally, the company's solutions are designed to converge front-end sales with back-end supply chain execution, promoting top-line growth and bottom-line profitability.
Financial Performance and Challenges
Manhattan Associates Inc (NASDAQ:MANH) reported a consolidated total revenue of $238.3 million for Q4 2023, marking a 20.3% increase from $198.1 million in Q4 2022. This growth was largely fueled by a 38.1% increase in cloud subscription revenue, which rose to $71.4 million. Services revenue also saw a healthy increase, reaching $119.1 million. The company's GAAP diluted EPS for Q4 2023 was $0.78, up from $0.60 in the same quarter the previous year, while non-GAAP adjusted diluted EPS was $1.03, compared to $0.81 in Q4 2022.
Despite these strong results, the company remains cautiously optimistic in the face of global economic uncertainties. However, MANH's CEO Eddie Capel expressed confidence in the company's market opportunity and commitment to innovation, which is crucial for maintaining momentum in the competitive software industry.
"Manhattans 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.
Key Financial Metrics
Key financial metrics from the income statement, balance sheet, and cash flow statement highlight the company's robust performance. GAAP operating income for Q4 2023 was $58.9 million, a 31.8% increase from the previous year. Cash flow from operations was particularly strong at $88.4 million for the quarter, and the company ended the year with $270.7 million in cash. These figures underscore the company's operational efficiency and its ability to generate cash, which is vital for ongoing investment in product development and potential strategic initiatives.
For the full year 2023, MANH reported a total revenue of $928.7 million, with cloud subscription revenue contributing $254.6 million, a testament to the growing shift towards cloud-based solutions in the supply chain and omnichannel commerce sectors. The company's GAAP diluted EPS for the full year was $2.82, reflecting a strong year-over-year growth.
2024 Outlook
Looking ahead, Manhattan Associates provided guidance for 2024, projecting total revenue between $1,015 million and $1,025 million, which would represent a 9-10% growth. The company anticipates a GAAP operating margin between 21.2% and 21.8%, and GAAP EPS between $2.81 and $2.91. These projections suggest that MANH expects to continue its growth trajectory in the coming year.
Manhattan Associates' performance in Q4 and the full year of 2023 demonstrates the company's strong position in the market and its ability to capitalize on the increasing demand for cloud-based solutions. With a solid financial foundation and a clear strategic direction, MANH is well-positioned to navigate the challenges ahead and continue delivering value to its customers and shareholders.
For more detailed information, investors are encouraged to review the full earnings release and financial statements available on the investor relations section of the Manhattan Associates website at ir.manh.com.
Explore the complete 8-K earnings release (here) from Manhattan Associates Inc for further details.
This article first appeared on GuruFocus.
