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]