Manhattan Associates(US:MANH)2025-10-24 16:58Revenue and Performance Obligations - For the three months ended September 30, 2025, the company recognized $49.8 million in revenue from deferred revenue, and for the nine months, it recognized $255.0 million[40]. - As of September 30, 2025, the company has approximately $2.1 billion in remaining performance obligations, with over 98% representing cloud native subscriptions with a non-cancelable term greater than one year[41]. - The company expects to recognize revenue on approximately 38% of remaining performance obligations over the next 24 months[41]. - Total revenue for the three months ended September 30, 2025, was $275.8 million, a 3.9% increase from $266.7 million in the same period of 2024[69]. - Cloud subscriptions revenue for the nine months ended September 30, 2025, reached $299.6 million, up 21.3% from $246.9 million in 2024[69][70]. - Revenue from international sales for the three months ended September 30, 2025, was approximately $96.6 million, an increase from $88.0 million in 2024[69]. Income and Earnings - Net income for the three months ended September 30, 2025, was $58,633,000, a decrease of 7.5% compared to $63,781,000 for the same period in 2024[58]. - Total net income for the nine months ended September 30, 2025, was $167,995,000, slightly down from $170,348,000 in 2024, indicating a decrease of 1.3%[58]. - Basic earnings per share for the three months ended September 30, 2025, was $0.97, down from $1.04 in 2024, while diluted earnings per share was $0.96 compared to $1.03 in 2024[58]. - Diluted earnings per share for the nine months ended September 30, 2025, was $2.75, compared to $2.74 in 2024, showing a marginal increase[58]. Expenses and Costs - Equity-based compensation expense related to restricted stock units (RSUs) was $27.6 million for the three months ended September 30, 2025, compared to $23.9 million for the same period in 2024[51]. - The company recorded a restructuring expense of approximately $2.9 million in the nine months ended September 30, 2025, primarily for employee severance and outplacement services[71]. - Cost of revenue for the nine months ended September 30, 2025, was $350.6 million, a decrease from $357.9 million in 2024[69]. - The Americas segment's costs include all research and development expenses, including those associated with operations in India, which are critical for product development[67]. Assets and Liabilities - The company had cash and cash equivalents of $172.8 million as of September 30, 2025, with no short-term or long-term investments[48]. - Deferred commissions amounted to $45.3 million as of September 30, 2025, with $34.2 million included in other assets and $11.1 million in prepaid expenses[46]. - Total assets as of September 30, 2025, were $768.8 million, compared to $757.6 million as of December 31, 2024[69]. - Goodwill, net, as of September 30, 2025, was $62.2 million, slightly up from $62.2 million as of December 31, 2024[69]. - The company recorded a credit loss reserve of $0.9 million as of September 30, 2025, unchanged from December 31, 2024[44]. Legal and Regulatory Matters - The company is currently involved in multiple legal proceedings, including a consolidated class action lawsuit alleging violations of the Securities Exchange Act, which may impact financial outcomes[63][64]. - The company maintains insurance that may cover liabilities arising from ongoing litigation, subject to policy limits and conditions[64]. Geographic Segments - The company operates through three geographic segments: Americas, EMEA, and APAC, all focused on supply chain commerce solutions[66]. - The Americas segment generated royalty fees of approximately $6.5 million for the three months ended September 30, 2025, compared to $4.8 million in 2024, reflecting a 35.4% increase[67]. - The company eliminated approximately 100 positions in January 2025 to align services capacity with customer demand, impacting the Americas segment[71]. Taxation - The effective tax rate for the three months ended September 30, 2025, was 25.2%, an increase from 16.5% in the same period of 2024[52]. - The company has reinstated 100% bonus depreciation and allows immediate deductions for domestic research and development expenditures under the OBBBA, which will reduce cash taxes owed for 2025[55]. Software Licenses - The company recognized revenue for perpetual software licenses, which accounted for approximately 2% of total revenue[37]. - The majority of software license revenue (over 85%) for the three months ended September 30, 2025, was derived from the warehouse management product group[70]. - The company granted 99,649 RSUs during the three months ended September 30, 2025, compared to 1,273 RSUs in the same period of 2024[49].