Core Insights - Manhattan Associates reported better-than-expected fourth-quarter and full-year results for 2025, highlighting record cloud bookings and significant growth in remaining performance obligations (RPO) and total revenue [4][6][19] Financial Performance - For the full year, revenue totaled $1.08 billion, reflecting a 4% increase on an as-reported basis, with a 5% growth when excluding license and maintenance revenue [1] - Fourth-quarter revenue reached $270 million, up 6% year over year, with cloud revenue increasing by 20% to $109 million [3][6] - Full-year cloud revenue rose 21% to $408 million, while services revenue declined 4% to $503 million [1][3] Remaining Performance Obligations (RPO) - RPO ended the quarter at $2.2 billion, marking a 25% year-over-year increase and a 7% sequential rise [2][6] - The company guided for RPO of $2.62 billion to $2.68 billion for 2026, implying 18% to 20% growth [5][14] Cloud Revenue and Growth Metrics - Management introduced a new "ramped ARR" metric, which exceeded $600 million, up 23% year-over-year, indicating strong cloud revenue growth as subscription contracts ramp to full pricing [5][9] - Cloud revenue is expected to increase by 21% to $492 million in 2026 [16] Profitability and Cash Flow - Adjusted operating profit for Q4 was $91 million, representing a 33.8% margin, while full-year adjusted operating profit was $387 million with a 35.8% margin [6] - Fourth-quarter operating cash flow increased by 40% to $147 million, with a free cash flow margin of 52.7% [7] Strategic Initiatives - The company emphasized investments in AI agents and the Active platform, aiming to enhance customer productivity and satisfaction [11][12] - A reorganization of the global sales team and hiring of key executives were noted to support growth initiatives [13] Guidance and Outlook - Total revenue guidance for 2026 is set between $1.133 billion and $1.153 billion, implying a 10% growth excluding license and maintenance attrition [15] - Adjusted EPS guidance for 2026 is projected between $5.04 and $5.20, with GAAP EPS expected to be between $3.37 and $3.53 [16]

Core Insights - The company reported strong demand for its solutions despite a challenging global macro environment, with high customer satisfaction and significant investments in R&D leading to market differentiation [1][2] - Total revenue for Q3 increased by 12% to $267 million, with adjusted earnings per share rising by 29% to $1.35, driven by robust cloud and services revenue growth [2][19] - Remaining performance obligation (RPO) grew by 27% to approximately $1.7 billion, indicating strong future revenue visibility [1][19] Financial Performance - Q3 total revenue was $267 million, a 12% year-over-year increase, while cloud revenue reached $86 million, up 33% [19][20] - Adjusted operating profit was $99 million, with an adjusted operating margin of 37.1%, reflecting strong cloud and services revenue growth [20][21] - The company ended the quarter with $215 million in cash and zero debt, allowing for $50 million in share repurchases [21][22] Market Position and Strategy - The company maintains a strong pipeline with a win rate of about 70%, indicating confidence in achieving the high end of its 2024 RPO bookings guidance of $1.8 billion [5][20] - 80% of Q3 deals originated from retail, manufacturing, and wholesale sectors, showcasing the company's diverse customer base [6] - The introduction of the Manhattan Active Supply Chain Planning solution has generated notable interest, particularly among existing warehouse management and transportation management system users [10][11] Product Development and Innovation - The Manhattan Active Supply Chain Planning solution is designed to provide real-time demand data and improve operational metrics, enhancing customer fulfillment capabilities [12][13] - The company has integrated generative AI capabilities into its applications, with plans for further enhancements in 2025 [17][18] - New features like Fulfillment Experience Insights and Postgame Spotlight are aimed at optimizing omnichannel fulfillment processes for customers [15][16] Future Outlook - The company is tightening its 2024 revenue guidance to a range of $1.039 billion to $1.041 billion, representing 12% growth, and is increasing its operating margin guidance to 34% [25][26] - Preliminary guidance for 2025 targets total revenue of $1.13 billion to $1.14 billion, with cloud revenue expected to grow by 23% [27][28] - The company anticipates RPO to reach $2.15 billion in 2025, reflecting a 21% growth [28]

Core Insights - Manhattan Associates (MANH) announced enhancements to its Manhattan Active Omni platform aimed at helping retailers optimize both in-store and online sales while improving customer experiences across various touchpoints [1] Group 1: Product Enhancements - The new capabilities include embedded agentic AI designed for store associates and customer service teams, providing real-time sales and fulfillment insights [1] - Manhattan introduced three new AI agents: a Store Associate Agent, a Contact Center Agent, and an OMS Configuration Agent, all integrated within the Manhattan Active Omni user interface [1]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $263 million, up 3% year-over-year [36] - Cloud revenue increased 21% to $94 million, while services revenue declined 8% to $121 million [37] - RPO ended the quarter at approximately $1.9 billion, up 25% year-over-year and 6% sequentially [38] - Adjusted operating profit was $91 million with an adjusted operating margin of 34.7%, up over 340 basis points year-over-year [40] - Adjusted earnings per share (EPS) for Q1 was $1.19, up 16%, while GAAP EPS was 85 cents, down 1% [41] Business Line Data and Key Metrics Changes - The company experienced a 25% year-over-year increase in RPOs, driven by strong demand for mission-critical solutions [22] - Approximately 50% of new cloud bookings in Q1 were generated from net new logos, indicating strong demand for products [71] - Services team completed over 100 go-lives for customers in Q1, showcasing operational effectiveness [25] Market Data and Key Metrics Changes - The addressable market is forecasted to grow at a double-digit CAGR for the next several years, indicating robust market potential [15] - Competitive win rates remained consistent at about 70%, reflecting strong market positioning [24] - The company has established healthy footprints across diverse sectors including retail, grocery, life sciences, and technology [23] Company Strategy and Development Direction - The company is focused on organic innovation and capital allocation strategy to expand its addressable market [14] - Investment in sales and marketing is prioritized to drive growth and capitalize on new product offerings [64] - The launch of new products like Enterprise Promise and Fulfill aims to optimize B2B order fulfillment, addressing evolving customer needs [26] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding near-term services revenue growth due to macroeconomic uncertainties [21] - The company remains optimistic about its position in the market and long-term growth opportunities despite current challenges [20] - Management reiterated full-year guidance for RPO and total revenue, reflecting confidence in business fundamentals [45] Other Important Information - The company was named Google’s Cloud Business Applications Partner of the Year for supply chain and logistics, highlighting its innovation in the Google Cloud ecosystem [18] - The company ended the quarter with $206 million in cash and zero debt, indicating a strong balance sheet [42] Q&A Session Summary Question: Insights on cloud bookings and RPO dynamics - Management indicated strong pipeline in Q2 and confidence in guidance despite macro uncertainties [59][60] Question: Growth investments and monetization of products - Management plans to invest in sales specialists to drive growth and maintain high win rates [64] Question: Linear progression of bookings and sales activity - Management noted a balanced product portfolio and strong demand across verticals, with high expectations for Q2 [68][71] Question: Resilience of cloud bookings drivers - Management stated that no particular segment is more resilient, but all channels remain important for growth [78][80] Question: Visibility on multi-year ramps and growth trajectory - Management confirmed strong visibility into contract durations and ramp processes, supporting confidence in growth [95][97] Question: FX impact on guidance - Management indicated that FX swings represent less than 1% impact on revenue guidance [104][105] Question: Strength of large deals in the pipeline - Management reported favorable conditions in the pipeline, with confidence in closure rates compared to last year [111][112]