Loading...
01/10 20:10
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings report shows strong cloud revenue growth and a solid cash position, but concerns about implementation delays, competitive pressures, and customer spending trends affect the overall sentiment. The Q&A reveals cautious optimism but highlights uncertainties in service revenue and cloud transition. The share repurchase program is a positive indicator, yet the lack of specific guidance on certain issues raises caution. Overall, the mixed signals from the financial performance and strategic challenges balance each other out, leading to a neutral outlook.
Total Revenue Q4 2024 $256,000,000, up 7% year-over-year; driven by strong cloud revenue growth.
Total Revenue Full Year 2024 $1,040,000,000, up 12% year-over-year; reflects overall business growth.
Cloud Revenue Q4 2024 $90,000,000, up 26% year-over-year; indicates strong demand for cloud solutions.
Cloud Revenue Full Year 2024 $337,000,000, up 32% year-over-year; highlights the transition to cloud services.
Remaining Performance Obligation (RPO) Q4 2024 $1,800,000,000, up 25% year-over-year; strong performance across product suite.
RPO Full Year 2024 $1,800,000,000, up 6% sequentially; reflects solid demand despite FX headwinds.
Service Revenue Q4 2024 $119,000,000, slightly up year-over-year; impacted by budgetary constraints from customers.
Adjusted Operating Profit Q4 2024 $90,000,000, with an operating margin of 35.3%, representing over a 300 basis point improvement year-over-year.
Full Year Adjusted Operating Profit 2024 $362,000,000, with a 34.7% operating margin, a 4.40 basis points improvement over 2023.
Earnings Per Share Q4 2024 $1.17, up 14% year-over-year; reflects strong operational performance.
GAAP Earnings Per Share Q4 2024 $2.77, down 1% year-over-year; includes a non-recurring charge of $7,000,000.
Full Year Adjusted Earnings Per Share 2024 $4.72, up 26% year-over-year; driven by strong revenue growth.
Full Year GAAP Earnings Per Share 2024 $3.51, up 24% year-over-year; reflects overall business performance.
Operating Cash Flow Q4 2024 $105,000,000, up 18% year-over-year; indicates strong cash generation.
Full Year Operating Cash Flow 2024 $295,000,000; reflects solid cash collections.
Free Cash Flow Margin Q4 2024 39.7%; indicates strong cash flow generation relative to revenue.
Deferred Revenue Q4 2024 $279,000,000, up 17% year-over-year; reflects strong demand for services.
Cash Position Q4 2024 $266,000,000 with 0 debt; indicates strong balance sheet.
Share Repurchases Q4 2024 $44,000,000; total buybacks in 2024 were $242,000,000.
New Product Launches: Launched Manhattan Active Supply Chain Planning and introduced Iris, the next iteration of point of sale.
Point of Sale Deployments: Successfully deployed point of sale systems for retailers like PacSun and Octerex.
Customer Implementations: Record number of customer implementations planned for 2025.
Market Expansion: Entered 2025 with strong business momentum and optimism about growing market opportunities.
Customer Acquisition: Acquisition of new customers and conversions of on-premise customers to cloud solutions.
Cloud Subscription Growth: Expecting 20% plus cloud subscription revenue growth over the next several years.
Operational Efficiencies: Increased efficiency in implementing software, leading to lower service revenue expectations.
R&D Investment: Invested $138 million in R&D in 2024, totaling nearly $1 billion since cloud transition.
Strategic Shift: Transitioning focus from services to software, with expectations for software revenue to exceed services by 2026.
Customer Budget Adjustments: Customers reduced planned services work due to budget constraints.
Global Economic Conditions: The company remains cautious about the global economy, which has become more acute, potentially impacting performance.
Customer Budget Constraints: Approximately 10% of customers with in-flight implementations have reduced their planned services work for the upcoming calendar and fiscal year due to budgetary constraints.
Service Revenue Decline: Services revenue is expected to trough in Q1 2025 due to shifts in professional services work to future periods and reduced customization.
Foreign Exchange Headwinds: Foreign exchange volatility has been a headwind, impacting RPO growth by $23 million and total revenue guidance for 2025 by $20 million.
Implementation Delays: Some large-scale projects have been pushed out, affecting the anticipated revenue from services.
Competitive Pressures: The company faces competitive pressures as Tier 1 partners increasingly implement their software, impacting service demand.
Investment in R&D: The company continues to invest heavily in R&D, which is crucial for maintaining competitive advantage and driving future growth.
Customer Spending Trends: Customers are showing a tendency to slow down spending on services, impacting the company's revenue expectations.
Total Revenue Milestone: Surpassed $1,000,000,000 total revenue milestone in 2024.
RPO Performance: Q4 RPO performance exceeded expectations, entering 2025 with strong business momentum.
Customer Implementations: Record number of customer implementations expected in 2025.
Cloud Subscription Growth: Anticipate 20% plus cloud subscription revenue growth over the next several years.
Investment in R&D: Invested about $138,000,000 in research and development in 2024.
Point of Sale Technology: Significant interest in point of sale technology, with successful deployments.
2025 Total Revenue Guidance: Expect total revenue of $1.06 to $1.07 billion for 2025.
2025 RPO Guidance: Targeting RPO of $2.11 to $2.15 billion for 2025.
2025 Adjusted Operating Margin: Expect adjusted operating margin of 33% to 33.5% for 2025.
2025 Cloud Revenue Guidance: Expect cloud revenue of $405 million to $410 million for 2025.
2025 Services Revenue Guidance: Expect services revenue of $494 million to $500 million for 2025.
2025 EPS Guidance: Expect adjusted EPS of $4.45 to $4.55 for 2025.
Share Repurchase Program: In Q4, Manhattan Associates invested $44,000,000 in share repurchases, totaling $242,000,000 in buybacks for the full year 2024. The Board increased the share repurchase authority to $100,000,000 from the previous $75,000,000.
The company's earnings call reflects a positive outlook with raised revenue and EPS guidance, strong cloud and services revenue growth, and a robust pipeline. Management's optimism about achieving 2026 goals, along with positive feedback on AI initiatives and strategic investments in sales and marketing, further supports this sentiment. While there are some uncertainties in AI revenue projections, the overall sentiment is positive, suggesting a likely stock price increase in the short term.
The earnings call summary shows strong financial performance, with growth in operating cash flow, free cash flow margin, and deferred revenue. The Q&A section further supports positive sentiment, highlighting confidence in sustaining cloud subscription revenue growth, successful go-to-market investments, and strong RPO bookings. However, the conservative services revenue guide and lack of direct responses on certain growth impacts temper the overall positive outlook slightly. Overall, the sentiment leans positive, with the potential for a 2% to 8% stock price increase.
The earnings call presents a mixed picture. Positive aspects include strong cloud revenue growth, a robust pipeline, and a significant share repurchase program, which could support the stock price. However, challenges such as macroeconomic risks, customer budget constraints, and potential tariff impacts create uncertainties. The cautious tone in the Q&A, particularly management's avoidance of specific details on tariffs and challenges, adds to the uncertainty. The neutral sentiment reflects the balance between positive growth in cloud services and the risks presented by the macro environment and competitive pressures.
The earnings report shows strong cloud revenue growth and a solid cash position, but concerns about implementation delays, competitive pressures, and customer spending trends affect the overall sentiment. The Q&A reveals cautious optimism but highlights uncertainties in service revenue and cloud transition. The share repurchase program is a positive indicator, yet the lack of specific guidance on certain issues raises caution. Overall, the mixed signals from the financial performance and strategic challenges balance each other out, leading to a neutral outlook.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
