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Manhattan Associates Reports Record Quarterly Revenue and Earnings

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  • MANH

RPO Bookings Increase 123% over Prior Year on Strong Demand

Company Raises 2021 Full-Year Revenue and EPS Guidance

ATLANTA, Oct. 26, 2021 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $169.2 million for the third quarter ended September 30, 2021. GAAP diluted earnings per share for Q3 2021 was $0.57 compared to $0.39 for Q3 2020. Non-GAAP adjusted diluted earnings per share for Q3 2021 was $0.71 compared to $0.51 in Q3 2020.

“With robust demand across all of our solutions, Manhattan Associates posted strong growth in the quarter, resulting in all-time record revenue and earnings. Cloud and services revenue momentum exceeded our expectations and drove exceptional operating results,” said Manhattan Associates president and CEO Eddie Capel. “Our cloud-native suite of Manhattan Active® solutions continue to drive solid pipeline and revenue momentum. Based on our outlook for the remainder of the year, we are again raising our 2021 full-year revenue and earnings guidance.”

“While appropriately cautious regarding global geopolitical and economic volatility, we continue to be optimistic on the market opportunity ahead. Supply chain complexity and the rapid rate of change in digital commerce have heightened the need for our flexible and agile solutions. Importantly, with positive customer feedback and strong competitive win rates, combined with continued market-leading innovation, we expect to reach an RPO milestone of $1 billion in 2022, about a year earlier than our original expectations,” added Mr. Capel.

THIRD QUARTER 2021 FINANCIAL SUMMARY:

  • Consolidated total revenue was $169.2 million for Q3 2021, compared to $149.8 million for Q3 2020.

    • Cloud subscription revenue was $32.2 million for Q3 2021, compared to $21.1 million for Q3 2020.

    • License revenue was $8.5 million for Q3 2021, compared to $13.2 million for Q3 2020.

    • Services revenue was $88.2 million for Q3 2021, compared to $73.5 million for Q3 2020.

  • GAAP diluted earnings per share was $0.57 for Q3 2021, compared to $0.39 for Q3 2020.

  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.71 for Q3 2021, compared to $0.51 for Q3 2020.

  • GAAP operating income was $42.4 million for Q3 2021, compared to $35.0 million for Q3 2020.

  • Adjusted operating income, a non-GAAP measure, was $53.0 million for Q3 2021, compared to $44.1 million for Q3 2020.

  • Cash flow from operations was $59.7 million for Q3 2021, compared to $42.5 million for Q3 2020. Days Sales Outstanding was 63 days at September 30, 2021, compared to 62 days at June 30, 2021.

  • Cash totaled $246.4 million at September 30, 2021, compared to $209.3 million at June 30, 2021.

  • During the three months ended September 30, 2021, the Company repurchased 123,131 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $20.0 million. In October 2021, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.

NINE MONTH 2021 FINANCIAL SUMMARY:

  • Consolidated total revenue for the nine months ended September 30, 2021, was $492.1 million, compared to $439.3 million for the nine months ended September 30, 2020.

    • Cloud subscription revenue was $87.4 million for the nine months ended September 30, 2021, compared to $56.8 million for the nine months ended September 30, 2020.

    • License revenue was $25.1 million for the nine months ended September 30, 2021, compared to $28.6 million for the nine months ended September 30, 2020.

    • Services revenue was $253.2 million for the nine months ended September 30, 2021, compared to $232.7 million for the nine months ended September 30, 2020.

  • GAAP diluted earnings per share for the nine months ended September 30, 2021, was $1.40, compared to $1.04 for the nine months ended September 30, 2020.

  • Adjusted diluted earnings per share, a non-GAAP measure, was $1.75 for the nine months ended September 30, 2021, compared to $1.32 for the nine months ended September 30, 2020.

  • GAAP operating income was $107.2 million for the nine months ended September 30, 2021, compared to $85.9 million for the nine months ended September 30, 2020.

  • Adjusted operating income, a non-GAAP measure, was $138.8 million for the nine months ended September 30, 2021, compared to $110.3 million for the nine months ended September 30, 2020.

  • Cash flow from operations was $145.1 million for the nine months ended September 30, 2021, compared to $102.9 million for the nine months ended September 30, 2020.

  • During the nine months ended September 30, 2021, the Company repurchased 580,826 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $79.9 million.

2021 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2021:

Guidance Range - 2021 Full Year

($'s in millions, except operating margin and EPS)

$ Range

% Growth Range

Total revenue - current guidance

$

653

$

655

11

%

12

%

Total revenue - previous guidance

$

643

$

650

Operating Margin:

GAAP operating margin - current guidance

19.1

%

19.4

%

Equity-based compensation

6.7

%

6.6

%

Adjusted operating margin(1) - current guidance

25.8

%

26.0

%

GAAP operating margin - previous guidance

18.8

%

19.4

%

Equity-based compensation

6.7

%

6.6

%

Adjusted operating margin(1) - previous guidance

25.5

%

26.0

%

Diluted earnings per share (EPS):

GAAP EPS - current guidance

$

1.61

$

1.63

18

%

20

%

Equity-based compensation, net of tax

0.58

0.58

Excess tax benefit on stock vesting

(0.07

)

(0.07

)

Adjusted EPS(1) - current guidance

$

2.12

$

2.14

20

%

22

%

GAAP EPS - previous guidance

$

1.50

$

1.56

Equity-based compensation, net of tax

0.57

0.57

Excess tax benefit on stock vesting

(0.07

)

(0.07

)

Adjusted EPS(1) - previous guidance

$

2.00

$

2.06

(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 these items if applicable.

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. We note in particular that the severity, duration and ultimate impact of the COVID-19 pandemic are difficult to predict at this time. In addition, 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 its 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 third quarter, financial results will be held today, October 26, 2021, 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.

Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 6277541 or via the web at ir.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ fourth quarter 2021 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 nine months ended September 30, 2021.

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 and on-premise 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 “2021 Guidance” and “Guideposts,” any statements about the future effect of the COVID-19 pandemic on our business, customers or the global economy, our business prospects following the pandemic, 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: the risk that the duration and severity of the COVID-19 pandemic, and its ultimate effects on the global economy, our customers and our business, may be worse than expected; risks related to transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription/cloud-based software-as-a service model; disruption in the retail sector; the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce; 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; 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, 2020, 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 September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenue:

Cloud subscriptions

$

32,196

$

21,064

$

87,434

$

56,827

Software license

8,461

13,233

25,122

28,649

Maintenance

34,479

37,305

108,370

108,947

Services

88,172

73,470

253,234

232,654

Hardware

5,877

4,685

17,989

12,213

Total revenue

169,185

149,757

492,149

439,290

Costs and expenses:

Cost of software license

690

527

1,802

1,673

Cost of cloud subscriptions, maintenance and services

70,813

64,672

214,394

201,382

Research and development

23,372

20,454

70,845

63,713

Sales and marketing

14,057

11,399

41,203

34,196

General and administrative

15,928

15,536

50,579

45,666

Depreciation and amortization

1,917

2,193

6,136

6,796

Total costs and expenses

126,777

114,781

384,959

353,426

Operating income

42,408

34,976

107,190

85,864

Other (loss) income, net

(42

)

(891

)

(29

)

371

Income before income taxes

42,366

34,085

107,161

86,235

Income tax provision

5,712

9,119

17,271

19,535

Net income

$

36,654

$

24,966

$

89,890

$

66,700

Basic earnings per share

$

0.58

$

0.39

$

1.42

$

1.05

Diluted earnings per share

$

0.57

$

0.39

$

1.40

$

1.04

Weighted average number of shares:

Basic

63,363

63,524

63,514

63,541

Diluted

64,238

64,427

64,339

64,298


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Operating income

$

42,408

$

34,976

$

107,190

$

85,864

Equity-based compensation (a)

10,573

9,012

31,333

24,068

Purchase amortization (c)

50

107

264

324

Adjusted operating income (Non-GAAP)

$

53,031

$

44,095

$

138,787

$

110,256

Income tax provision

$

5,712

$

9,119

$

17,271

$

19,535

Equity-based compensation (a)

1,503

898

4,399

2,547

Tax benefit of stock awards vested (b)

312

119

4,369

3,861

Purchase amortization (c)

12

27

65

81

Adjusted income tax provision (Non-GAAP)

$

7,539

$

10,163

$

26,104

$

26,024

Net income

$

36,654

$

24,966

$

89,890

$

66,700

Equity-based compensation (a)

9,070

8,114

26,934

21,521

Tax benefit of stock awards vested (b)

(312

)

(119

)

(4,369

)

(3,861

)

Purchase amortization (c)

38

80

199

243

Adjusted net income (Non-GAAP)

$

45,450

$

33,041

$

112,654

$

84,603

Diluted EPS

$

0.57

$

0.39

$

1.40

$

1.04

Equity-based compensation (a)

0.14

0.13

0.42

0.33

Tax benefit of stock awards vested (b)

-

-

(0.07

)

(0.06

)

Purchase amortization (c)

-

-

-

-

Adjusted diluted EPS (Non-GAAP)

$

0.71

$

0.51

$

1.75

$

1.32

Fully diluted shares

64,238

64,427

64,339

64,298

(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 this 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 September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Cost of services

$

3,977

$

2,695

$

10,769

$

7,306

Research and development

2,139

1,863

6,247

4,926

Sales and marketing

1,073

919

3,198

2,478

General and administrative

3,384

3,535

11,119

9,358

Total equity-based compensation

$

10,573

$

9,012

$

31,333

$

24,068

(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 excluded 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 excluded 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)

September 30, 2021

December 31, 2020

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

246,445

$

204,705

Accounts receivable, net of allowance of $3,930 and $3,497, at September 30, 2021 and December 31, 2020, respectively

115,344

109,202

Prepaid expenses and other current assets

23,878

20,134

Total current assets

385,667

334,041

Property and equipment, net

14,272

17,903

Operating lease right-of-use assets

27,602

31,470

Goodwill, net

62,242

62,252

Deferred income taxes

5,939

5,760

Other assets

18,561

13,986

Total assets

$

514,283

$

465,412

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

21,647

$

17,805

Accrued compensation and benefits

51,626

41,962

Accrued and other liabilities

20,589

21,181

Deferred revenue

136,452

114,164

Income taxes payable

2,548

1,874

Total current liabilities

232,862

196,986

Operating lease liabilities, long-term

23,881

27,843

Other non-current liabilities

18,913

21,686

Shareholders' equity:

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2021 and 2020

-

-

Common stock, $0.01 par value; 200,000,000 shares authorized; 63,281,757 and 63,527,186 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively

633

635

Retained earnings

257,507

236,524

Accumulated other comprehensive loss

(19,513

)

(18,262

)

Total shareholders' equity

238,627

218,897

Total liabilities and shareholders' equity

$

514,283

$

465,412


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)

Nine Months Ended September 30,

2021

2020

(unaudited)

(unaudited)

Operating activities:

Net income

$

89,890

$

66,700

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

6,136

6,796

Equity-based compensation

31,333

24,068

Loss on disposal of equipment

14

15

Deferred income taxes

(213

)

2,409

Unrealized foreign currency (gain) loss

(949

)

415

Changes in operating assets and liabilities:

Accounts receivable, net

(7,296

)

(3,799

)

Other assets

(8,328

)

2,331

Accounts payable, accrued and other liabilities

13,429

(15,446

)

Income taxes

(2,965

)

547

Deferred revenue

24,029

18,832

Net cash provided by operating activities

145,080

102,868

Investing activities:

Purchase of property and equipment

(2,158

)

(1,928

)

Net cash used in investing activities

(2,158

)

(1,928

)

Financing activities:

Purchase of common stock

(100,242

)

(43,523

)

Net cash used in financing activities

(100,242

)

(43,523

)

Foreign currency impact on cash

(940

)

(1,841

)

Net change in cash and cash equivalents

41,740

55,576

Cash and cash equivalents at beginning of period

204,705

110,678

Cash and cash equivalents at end of period

$

246,445

$

166,254


MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1. Continuing Impact of COVID-19:

Regarding the impact of the COVID-19 pandemic, we remain cautious about the global recovery, which we expect to be protracted.

Despite the COVID-19 pandemic, our results for the first nine months exceeded our expectations due to solid demand for our cloud solutions. Our solutions are mission critical, supporting complex global supply chains. Favorable secular tailwinds, such as the digital transformation of businesses in manufacturing, wholesale and retail, coupled with our commitment to investing in organic innovation to deliver leading cloud supply chain, inventory and omnichannel commerce solutions, are in synergistic alignment with current market demand. This alignment contributed to higher demand and strong win rates for our solutions for the period.

We remain committed to investing in our business to drive customer success and expand our total addressable market, which we believe will position us well to achieve long-term sustainable growth and earnings.

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

2020

2021

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

GAAP Diluted EPS

$

0.35

$

0.30

$

0.39

$

0.32

$

1.36

$

0.35

$

0.48

$

0.57

$

1.40

Adjustments to GAAP:

Equity-based compensation

0.10

0.10

0.13

0.13

0.46

0.13

0.14

0.14

0.42

Tax benefit of stock awards vested

(0.06

)

-

-

-

(0.06

)

(0.06

)

(0.01

)

-

(0.07

)

Purchase amortization

-

-

-

-

-

-

-

-

-

Adjusted Diluted EPS

$

0.40

$

0.40

$

0.51

$

0.45

$

1.76

$

0.43

$

0.61

$

0.71

$

1.75

Fully Diluted Shares

64,342

64,126

64,427

64,484

64,333

64,466

64,276

64,238

64,339

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

2020

2021

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Revenue:

Americas

$

123,146

$

107,368

$

121,168

$

114,257

$

465,939

$

122,813

$

132,308

$

135,233

$

390,354

EMEA

24,313

21,558

21,721

25,990

93,582

28,434

27,190

27,402

83,026

APAC

6,444

6,704

6,868

6,835

26,851

5,603

6,616

6,550

18,769

$

153,903

$

135,630

$

149,757

$

147,082

$

586,372

$

156,850

$

166,114

$

169,185

$

492,149

GAAP Operating Income:

Americas

$

16,282

$

18,984

$

27,296

$

18,547

$

81,109

$

16,116

$

28,590

$

29,727

$

74,433

EMEA

6,313

5,515

5,319

7,490

24,637

8,374

8,643

10,485

27,502

APAC

1,601

2,193

2,361

2,160

8,315

935

2,124

2,196

5,255

$

24,196

$

26,692

$

34,976

$

28,197

$

114,061

$

25,425

$

39,357

$

42,408

$

107,190

Adjustments (pre-tax):

Americas:

Equity-based
compensation

$

7,564

$

7,492

$

9,012

$

9,287

$

33,355

$

10,051

$

10,709

$

10,573

$

31,333

Purchase amortization

107

110

107

105

429

107

107

50

264

$

7,671

$

7,602

$

9,119

$

9,392

$

33,784

$

10,158

$

10,816

$

10,623

$

31,597

Adjusted non-GAAP Operating Income:

Americas

$

23,953

$

26,586

$

36,415

$

27,939

$

114,893

$

26,274

$

39,406

$

40,350

$

106,030

EMEA

6,313

5,515

5,319

7,490

24,637

8,374

8,643

10,485

27,502

APAC

1,601

2,193

2,361

2,160

8,315

935

2,124

2,196

5,255

$

31,867

$

34,294

$

44,095

$

37,589

$

147,845

$

35,583

$

50,173

$

53,031

$

138,787

4. 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):

2020

2021

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Revenue

$

(988

)

$

(777

)

$

1,165

$

1,946

$

1,346

$

2,932

$

3,209

$

823

$

6,964

Costs and expenses

(996

)

(1,430

)

291

918

(1,217

)

2,000

2,442

551

4,993

Operating income

8

653

874

1,028

2,563

932

767

272

1,971

Foreign currency gains (losses)
in other income

1,348

(193

)

(913

)

(639

)

(397

)

(287

)

315

(30

)

(2

)

$

1,356

$

460

$

(39

)

$

389

$

2,166

$

645

$

1,082

$

242

$

1,969

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):

2020

2021

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Operating income

$

308

$

895

$

601

$

445

$

2,249

$

79

$

(294

)

$

(37

)

$

(252

)

Foreign currency gains
(losses) in other income

1,450

262

(1,165

)

(381

)

166

315

535

3

853

Total impact of changes in the
Indian Rupee

$

1,758

$

1,157

$

(564

)

$

64

$

2,415

$

394

$

241

$

(34

)

$

601

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

2020

2021

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Interest income

$

68

$

28

$

8

$

(6

)

$

98

$

(15

)

$

(10

)

$

(9

)

$

(34

)

Foreign currency gains (losses)

1,348

(193

)

(913

)

(639

)

(397

)

(287

)

315

(30

)

(2

)

Other non-operating
income (expense)

4

7

14

(11

)

14

9

1

(3

)

7

Total other income (loss)

$

1,420

$

(158

)

$

(891

)

$

(656

)

$

(285

)

$

(293

)

$

306

$

(42

)

$

(29

)

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

2020

2021

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Capital expenditures

$

1,245

$

507

$

176

$

802

$

2,730

$

569

$

602

$

987

$

2,158

7. Stock Repurchase Activity (in thousands):

2020

2021

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

3rd Qtr

YTD

Shares purchased under publicly announced buy-back program

337

-

-

-

337

214

244

123

581

Shares withheld for taxes due upon vesting of restricted stock units

219

2

4

-

225

172

1

5

178

Total shares purchased

556

2

4

-

562

386

245

128

759

Total cash paid for shares purchased under publicly announced buy-back program

$

25,000

$

-

$

-

$

-

$

25,000

$

26,988

$

32,894

$

19,994

$

79,876

Total cash paid for shares withheld for taxes due upon vesting of restricted stock units

18,032

123

368

38

18,561

19,414

190

762

20,366

Total cash paid for shares repurchased

$

43,032

$

123

$

368

$

38

$

43,561

$

46,402

$

33,084

$

20,756

$

100,242

8. Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Our reported performance obligations primarily represent cloud 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). Our deferred revenue on the balance sheet primarily relates to our maintenance contracts, which are typically one year in duration 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,
2020

June 30,
2020

September 30,
2020

December 31,
2020

March 31,
2021

June 30,
2021

September 30,
2021

Remaining Performance Obligations

$

202,793

$

225,470

$

257,287

$

308,761

$

421,196

$

488,718

$

573,712

9. Guideposts

The following table shows (i) our guideposts provided on February 2, 2021, for cloud revenue and remaining performance obligations (“RPO”) for each year 2021 through 2023, and (ii) our current guideposts for each year 2021 through 2024.

Feb 2, 2021 Guideposts

Current Guideposts

($'s in millions)

($'s in millions)

Cloud Revenue

Cloud Revenue

Year

Low

Mid

High

%
Growth
(1)

Year

Low

Mid

High

%
Growth
(1)

2021

$

108

$

109

$

110

37

%

2021

$

120

$

121

$

121

51

%

2022

$

135

$

143

$

150

31

%

2022

$

160

$

163

$

165

35

%

2023

$

190

$

203

$

215

42

%

2023

$

220

$

230

$

240

42

%

2024

n/a

n/a

n/a

n/a

2024

$

310

$

328

$

345

42

%

Remaining Performance Obligations

Remaining Performance Obligations

Year

Low

Mid

High

%
Growth
(1)

Year

Low

Mid

High

%
Growth
(1)

2021

$

450

$

500

$

550

62

%

2021

$

675

$

688

$

700

123

%

2022

$

625

$

700

$

775

40

%

2022

$

950

$

1,000

$

1,050

45

%

2023

$

850

$

950

$

1,050

36

%

2023

$

1,250

$

1,325

$

1,400

33

%

2024

n/a

n/a

n/a

n/a

2024

$

1,600

$

1,700

$

1,800

28

%

(1) Year-over-year percentage growth is calculated based on the forecasted mid-points.


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