Manhattan Associates Reports Record Fourth Quarter and Full Year Results

Manhattan Associates, Inc.

RPO Increased 50% over Prior Year on Strong Demand

ATLANTA, Feb. 02, 2023 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $198.1 million for the fourth quarter ended December 31, 2022. GAAP diluted earnings per share for Q4 2022 was $0.60 compared to $0.32 in Q4 2021. Non-GAAP adjusted diluted earnings per share for Q4 2022 was $0.81 compared to $0.48 in Q4 2021.

“Manhattan's business momentum is strong, and our fourth quarter results exceeded expectations. This contributed to the company achieving record top- and bottom-line results in 2022," said Manhattan Associates president and CEO Eddie Capel.

“We enter 2023 optimistic about our market opportunity and remain committed to investing in market leading innovation. We are confident these investments will contribute to our high levels of customer satisfaction and extend our positioning as the leading innovator in core Supply Chain Execution, Omni-channel and retail Point of Sale solutions," Capel concluded.

FOURTH QUARTER 2022 FINANCIAL SUMMARY:

• Consolidated total revenue was $198.1 million for Q4 2022, compared to $171.5 million for Q4 2021.

  • Cloud subscription revenue was $51.7 million for Q4 2022, compared to $34.8 million for Q4 2021.

  • License revenue was $5.0 million for Q4 2022, compared to $11.9 million for Q4 2021.

  • Services revenue was $99.8 million for Q4 2022, compared to $81.6 million for Q4 2021.

• GAAP diluted earnings per share was $0.60 for Q4 2022, compared to $0.32 for Q4 2021.

• Adjusted diluted earnings per share, a non-GAAP measure, was $0.81 for Q4 2022, compared to $0.48 for Q4 2021.

• GAAP operating income was $44.7 million for Q4 2022, compared to $27.1 million for Q4 2021.

• Adjusted operating income, a non-GAAP measure, was $59.9 million for Q4 2022, compared to $39.1 million for Q4 2021.

• Cash flow from operations was $55.2 million for Q4 2022, compared to $40.1 million for Q4 2021. Days Sales Outstanding was 77 days at December 31, 2022, compared to 67 days at September 30, 2022.

• Cash totaled $225.5 million at December 31, 2022, compared to $197.1 million at September 30, 2022.

• During the three months ended December 31, 2022, the Company repurchased 206,418 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $25.2 million. In January 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.
  

FULL YEAR 2022 FINANCIAL SUMMARY:

• Consolidated total revenue for the twelve months ended December 31, 2022, was $767.1 million, compared to $663.6 million for the twelve months ended December 31, 2021.

  • Cloud subscription revenue was $176.5 million for the twelve months ended December 31, 2022, compared to $122.2 million for the twelve months ended December 31, 2021.

  • License revenue was $24.8 million for the twelve months ended December 31, 2022, compared to $37.1 million for the twelve months ended December 31, 2021.

  • Services revenue was $394.1 million for the twelve months ended December 31, 2022, compared to $334.8 million for the twelve months ended December 31, 2021.

• GAAP diluted earnings per share for the twelve months ended December 31, 2022, was $2.03, compared to $1.72 for the twelve months ended December 31, 2021.

• Adjusted diluted earnings per share, a non-GAAP measure, was $2.76 for the twelve months ended December 31, 2022, compared to $2.23 for the twelve months ended December 31, 2021.

• GAAP operating income was $152.7 million for the twelve months ended December 31, 2022, compared to $134.3 million for the twelve months ended December 31, 2021.

• Adjusted operating income, a non-GAAP measure, was $212.1 million for the twelve months ended December 31, 2022, compared to $177.9 million for the twelve months ended December 31, 2021.

• Cash flow from operations was $179.6 million for the twelve months ended December 31, 2022, compared to $185.2 million for the twelve months ended December 31, 2021.

• During the twelve months ended December 31, 2022, the Company repurchased 1,352,954 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $175.4 million.

2023 GUIDANCE

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

		Guidance Range - 2023 Full Year
	($'s in millions, except operating margin and EPS)	$ Range						% Growth Range
	Total revenue	$820			$833			7%			9%
	Operating Margin:
	GAAP operating margin		17.6%			18.8%
	Equity-based compensation		7.9%			7.7%
	Adjusted operating margin(1)		25.5%			26.5%
	Diluted earnings per share (EPS):
	GAAP EPS	$1.81			$1.95			-11%			-4%
	Equity-based compensation		0.86			0.86
	Excess tax benefit on stock vesting(2)		(0.06)			(0.06)
	Adjusted EPS(1)	$2.61			$2.75			-5%			0%
	(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based
	compensation and acquisition-related costs, and the related income tax effects of those items if applicable.
	(2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2023.

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 and guideposts in the supplemental information below, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. Those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.

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 and guideposts, 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, 2022, financial results will be held today, February 2, 2023, 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 2023 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, 2022.

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, acquisition-related costs and the amortization of these costs, and (from time to time) restructuring charges – all net of income tax effects. 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 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 “2023 Guidance” and “Guideposts,” statements we make about market adoption of our cloud-based solution and other 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; disruption in the retail sector; risks related to our products’ technology and customer implementations; global instability, including the war in Ukraine; 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, 2021, 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.

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,
	2022				2021				2022				2021
	(unaudited)				(unaudited)
Revenue:
Cloud subscriptions	$	51,691			$	34,761			$	176,458			$	122,195
Software license		4,979				11,948				24,848				37,070
Maintenance		35,083				37,471				142,198				145,841
Services		99,812				81,565				394,096				334,799
Hardware		6,538				5,749				29,484				23,738
Total revenue		198,103				171,494				767,084				663,643
Costs and expenses:
Cost of software license		377				507				2,126				2,309
Cost of cloud subscriptions, maintenance and services		89,629				81,124				356,111				295,518
Research and development		27,123				26,783				111,877				97,628
Sales and marketing		16,656				16,652				64,537				57,855
General and administrative		18,107				17,507				73,070				68,086
Depreciation and amortization		1,506				1,778				6,663				7,914
Total costs and expenses		153,398				144,351				614,384				529,310
Operating income		44,705				27,143				152,700				134,333
Other loss, net		828				(232	)			5,421				(261	)
Income before income taxes		45,533				26,911				158,121				134,072
Income tax provision		7,665				6,329				29,162				23,600
Net income	$	37,868			$	20,582			$	128,959			$	110,472
Basic earnings per share	$	0.61			$	0.33			$	2.05			$	1.74
Diluted earnings per share	$	0.60			$	0.32			$	2.03			$	1.72
Weighted average number of shares:
Basic		62,327				63,241				62,768				63,445
Diluted		63,028				64,224				63,408				64,323

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,
	2022				2021						2022					2021
Operating income	$	44,705				27,143					$	152,700					134,333
Equity-based compensation (a)		15,152				11,926						59,361					43,259
Purchase amortization (c)		-				-						-					264
Adjusted operating income (Non-GAAP)	$	59,857			$	39,069					$	212,061				$	177,856
Income tax provision	$	7,665				6,329					$	29,162					23,600
Equity-based compensation (a)		2,045				1,873						9,058					6,272
Tax benefit of stock awards vested (b)		(3	)			14						4,383					4,383
Purchase amortization (c)		-				-						-					65
Adjusted income tax provision (Non-GAAP)	$	9,707			$	8,216					$	42,603				$	34,320
Net income	$	37,868			$	20,582					$	128,959				$	110,472
Equity-based compensation (a)		13,107				10,053						50,303					36,987
Tax benefit of stock awards vested (b)		3				(14	)					(4,383	)				(4,383	)
Purchase amortization (c)		-				-						-					199
Adjusted net income (Non-GAAP)	$	50,978			$	30,621					$	174,879				$	143,275
Diluted EPS	$	0.60			$	0.32					$	2.03				$	1.72
Equity-based compensation (a)		0.21				0.16						0.79					0.58
Tax benefit of stock awards vested (b)		-				-						(0.07	)				(0.07	)
Purchase amortization (c)		-				-						-					-
Adjusted diluted EPS (Non-GAAP)	$	0.81			$	0.48					$	2.76				$	2.23
Fully diluted shares		63,028				64,224						63,408					64,323

(a)     Adjusted results exclude all equity-based compensation to facilitate comparison with our peers and because it typically does not require cash settlement. As explained in our Current Report on Form 8-K filed today with the SEC, we do not include that expense when assessing our operating performance. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives. The Tax Cuts and Jobs Act further increased those limitations.

	Three Months Ended December 31,								Year Ended December 31,
	2022				2021				2022				2021
Cost of services	$	5,609			$	4,390			$	21,876			$	15,159
Research and development		3,341				2,567				13,081				8,814
Sales and marketing		1,543				1,147				6,003				4,345
General and administrative		4,659				3,822				18,401				14,941
Total equity-based compensation	$	15,152			$	11,926			$	59,361			$	43,259

(b)     Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also exclude the related tax benefit (expense) generated upon their vesting.

(c)     Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
		December 31, 2022				December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents		$	225,463			$	263,706
Accounts receivable, net of allowance of $6,009 and $2,419, at December 31, 2022 and December 31, 2021, respectively			166,767				124,420
Prepaid expenses and other current assets			23,145				20,293
Total current assets			415,375				408,419
Property and equipment, net			12,803				13,889
Operating lease right-of-use assets			17,794				27,272
Goodwill, net			62,230				62,239
Deferred income taxes			37,206				7,650
Other assets			24,770				20,239
Total assets		$	570,178			$	539,708
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	25,701			$	19,625
Accrued compensation and benefits			54,469				53,104
Accrued and other liabilities			24,569				22,741
Deferred revenue			208,807				153,196
Income taxes payable			2,049				376
Total current liabilities			315,595				249,042
Operating lease liabilities, long-term			14,065				23,157
Other non-current liabilities			13,718				16,865
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2022 and December 31, 2021			-				-
Common stock, $.01 par value; 200,000,000 shares authorized; 62,191,570 and 63,154,494 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively			621				631
Retained earnings			253,711				269,841
Accumulated other comprehensive loss			(27,532	)			(19,828	)
Total shareholders' equity			226,800				250,644
Total liabilities and shareholders' equity		$	570,178			$	539,708

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
		Year Ended December 31,
		2022				2021
Operating activities:
Net income		$	128,959			$	110,472
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			6,663				7,914
Equity-based compensation			59,361				43,259
Loss on disposal of equipment			(89	)			7
Deferred income taxes			(29,711	)			(1,912	)
Unrealized foreign currency (gain) loss			(1,515	)			(493	)
Changes in operating assets and liabilities:
Accounts receivable, net			(44,056	)			(16,650	)
Other assets			(10,247	)			(6,533	)
Accounts payable, accrued and other liabilities			11,794				12,256
Income taxes			765				(3,667	)
Deferred revenue			57,706				40,530
Net cash provided by operating activities			179,630				185,183
Investing activities:
Purchases of property and equipment			(6,587	)			(4,016	)
Net cash used in investing activities			(6,587	)			(4,016	)
Financing activities:
Purchase of common stock			(204,460	)			(120,418	)
Net cash used in financing activities			(204,460	)			(120,418	)
Foreign currency impact on cash			(6,826	)			(1,748	)
Net change in cash and cash equivalents			(38,243	)			59,001
Cash and cash equivalents at beginning of period			263,706				204,705
Cash and cash equivalents at end of period		$	225,463			$	263,706

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

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

	2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
GAAP Diluted EPS	$0.35		$0.48		$0.57		$0.32		$1.72		$0.48		$0.49		$0.47		$0.60		$2.03
Adjustments to GAAP:
Equity-based compensation	0.13		0.14		0.14		0.16		0.58		0.19		0.20		0.19		0.21		0.79
Tax benefit of stock awards vested	(0.06)		(0.01)		-		-		(0.07)		(0.07)		-		-		-		(0.07)
Purchase amortization	-		-		-	-	-	-	-	-	-		-		-	-	-	-	-
Adjusted Diluted EPS	$0.43		$0.61		$0.71		$0.48		$2.23		$0.60		$0.69		$0.66		$0.81		$2.76
Fully Diluted Shares	64,466		64,276		64,238		64,224		64,323		63,871		63,419		63,165		63,028		63,408

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

	2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Revenue:
Americas	$122,813		$132,308		$135,233		$135,861		$526,215		$139,540		$151,996		$156,674		$155,674		$603,884
EMEA	28,434		27,190		27,402		27,548		110,574		32,151		31,614		31,843		33,330		128,938
APAC	5,603		6,616		6,550		8,085		26,854		7,265		8,314		9,584		9,099		34,262
	$156,850		$166,114		$169,185		$171,494		$663,643		$178,956		$191,924		$198,101		$198,103		$767,084
GAAP Operating Income:
Americas	$16,116		$28,590		$29,727		$16,746		$91,179		$21,393		$24,507		$22,914		$30,475		$99,289
EMEA	8,374		8,643		10,485		7,245		34,747		10,517		9,423		9,851		10,239		40,030
APAC	935		2,124		2,196		3,152		8,407		2,062		3,323		4,005		3,991		13,381
	$25,425		$39,357		$42,408		$27,143		$134,333		$33,972		$37,253		$36,770		$44,705		$152,700
Adjustments (pre-tax):
Americas:
Equity-based    compensation	$10,051		$10,709		$10,573		$11,926		$43,259		$14,138		$15,538		$14,533		$15,152		$59,361
Purchase amortization	107		107		50		-		264		-		-		-		-		-
	$10,158		$10,816		$10,623		$11,926		$43,523		$14,138		$15,538		$14,533		$15,152		$59,361
Adjusted non-GAAP Operating Income:
Americas	$26,274		$39,406		$40,350		$28,672		$134,702		$35,531		$40,045		$37,447		$45,627		$158,650
EMEA	8,374		8,643		10,485		7,245		34,747		10,517		9,423		9,851		10,239		40,030
APAC	935		2,124		2,196		3,152		8,407		2,062		3,323		4,005		3,991		13,381
	$35,583		$50,173		$53,031		$39,069		$177,856		$48,110		$52,791		$51,303		$59,857		$212,061

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):

		2021										2022
	1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Revenue	$2,932			$3,209		$823		($716)		$6,248		($2,268)		($4,568)		($6,152)		($5,124)		($18,112)
Costs and expenses		2,000		2,442		551		(887)		4,106		(2,043)		(3,862)		(5,412)		(5,354)		(16,671)
Operating income		932		767		272		171		2,142		(225)		(706)		(740)		230		(1,441)
Foreign currency gains    (losses) in other income		(287)		315		(30)		(243)		(245)		711		2,056		1,569		353		4,689
	$645			$1,082		$242		($72)		$1,897		$486		$1,350		$829		$583		$3,248

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):

	2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Operating income	$79		($294)		($37)		$281		$29		$470		$710		$1,166		$1,900		$4,246
Foreign currency gains    (losses) in other income	315		535		3		(9)		844		809		2,085		1,713		738		5,345
Total impact of    changes in the    Indian Rupee	$394		$241		($34)		$272		$873		$1,279		$2,795		$2,879		$2,638		$9,591

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

	2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Interest income	($15)		($10)		($9)		$102		$68		$19		$92		$112		$373		596
Foreign currency gains    (losses)	(287)		315		(30)		(243)		(245)		711		2,056		1,569		353		4,689
Other non-operating    income (expense)	9		1		(3)		(91)		(84)		8		95		(69)		102		136
Total other income (loss)	($293)		$306		($42)		($232)		($261)		$738		$2,243		$1,612		$828		$5,421

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

	2021															2022
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Full Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Full Year
Capital expenditures	$569			$602			$987			$1,858			$4,016			$1,159			$1,084			$1,909			$2,435			$6,587

6.        Stock Repurchase Activity (in thousands):

	2021										2022
	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	214		244		123		128		709		383		417		347		206		1,353
Shares withheld for taxes due upon vesting of restricted stock	172		1		5		1		179		203		4		8		2		217
Total shares purchased	386		245		128		129		888		586		421		355		208		1,570
Total cash paid for shares purchased under publicly-announced buy-back program	$26,988		$32,894		$19,994		$20,117		$99,993		$49,965		$50,151		$50,000		$25,234		$175,350
Total cash paid for shares withheld for taxes due upon vesting of restricted stock	19,414		190		762		59		20,425		27,143		528		1,242		197		29,110
Total cash paid for shares repurchased	$46,402		$33,084		$20,756		$20,176		$120,418		$77,108		$50,679		$51,242		$25,431		$204,460

7.        Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Over 97% of our reported performance obligations 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 are not included in the remaining performance obligations. Below are our remaining performance obligations as of the end of each period (in thousands):

	March 31, 2021				June 30, 2021				September 30, 2021				December 31, 2021				March 31, 2022				June 30, 2022				September 30, 2022				December 31, 2022
Remaining Performance Obligations	$	421,196			$	488,718			$	573,712			$	699,244			$	809,540			$	897,680			$	969,603			$	1,051,544

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.  As such, our cash was negatively impacted by approximately $26 million in additional income tax payments.  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.

9.        Guideposts

The following table shows our (i) actual 2022 cloud revenue and remaining performance obligations (“RPO”) results, (ii) revised 2023 cloud revenue guidepost, (iii) 2023 RPO guidepost published as of October 25, 2022, and (iv) guideposts published as of February 1, 2022, for cloud revenue and RPO for 2024.

	Current Guideposts
	($'s in millions)
	Cloud Revenue
	Year		Low			Mid			High			% Growth(1)
	2022⁽²⁾		$176			$176			$176			44%
	2023⁽³⁾		$232			$234			$236			33%
	2024⁽⁵⁾		$310			$328			$345			40%
	Remaining Performance Obligations
	Year		Low			Mid			High			% Growth(1)
	2022⁽²⁾		$1,052			$1,052			$1,052			50%
	2023⁽⁴⁾		$1,300			$1,350			$1,400			28%
	2024⁽⁵⁾		$1,600			$1,700			$1,800			26%
	(1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points.
	(2) Amount reflects actual results for 2022.
	(3) Amount reflects revised range as of February 2, 2023.
	(4) Amount remain unchanged from October 25, 2022.
	(5) Amounts remain unchanged from February 1, 2022.

These guideposts are forward-looking statements and are subject to all the risks and uncertainties applicable to our shorter-term 2023 Guidance, as stated above. In addition, the further into the future we project our financial expectations, the greater the risk that actual results will differ materially; consequently, our longer-term guideposts may be inherently more uncertain than our shorter-term guidance.

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