Manhattan Associates(US:MANH)2022-10-25 22:46Financial Data and Key Metrics Changes - Q3 total revenue reached a record $198 million, up 17% year-over-year and up 21% in constant currency [28] - Adjusted earnings per share for Q3 was $0.66, with GAAP earnings per share at $0.47 [32] - RPO increased 69% to $970 million, with a constant currency increase of 76% [13][29] - Operating cash flow for Q3 was $40 million, with year-to-date operating cash flow at $124 million [33] Business Line Data and Key Metrics Changes - Cloud revenue for Q3 totaled $45 million, reflecting a 41% increase [29] - Global services revenue was a record $103 million, up 17% [31] - The company experienced strong demand for services, with over 100 go-lives in the quarter [15] Market Data and Key Metrics Changes - Demand for cloud solutions remained strong across all product portfolios, with double-digit revenue growth across all geographies [10] - Retail, manufacturing, and wholesale sectors drove over 80% of bookings in the quarter [14] Company Strategy and Development Direction - The company is focusing on aggressive growth and investment goals, particularly in innovation and customer success [9] - The strategy includes expanding the addressable market and enhancing customer satisfaction through industry-leading solutions [12] - The company aims for sustainable double-digit top-line growth and top quartile operating margins in the SaaS sector [41] Management's Comments on Operating Environment and Future Outlook - Management remains cautious regarding the global economy but optimistic about the company's growth trajectory [10][50] - The company is raising its 2022 guidance for both revenue and earnings, anticipating a strong finish to the year [36] - For 2023, the preliminary revenue estimate is between $800 million and $820 million, representing 16% growth excluding license and maintenance attrition [43] Other Important Information - The company won a TrustRadius 2020 Tech Cares Award for its corporate social responsibility and ESG initiatives [24] - The company plans to continue investing in hiring, with over 500 new team members added in the first nine months of 2022 [11] Q&A Session Summary Question: Impact of retail and e-commerce on business - Management noted modest adjustments in conversations with retailers, emphasizing the importance of customer loyalty and satisfaction [56][57] Question: Product cycle around cloud WMS - The company reported about 80 customers under contract for cloud WMS, with strong global demand [58][59] Question: Maintenance revenue decline and customer readiness - Management indicated that maintenance revenue is expected to decline in 2023, but there is no major change in customer dynamics [65][66] Question: Revenue guidance visibility for 2023 - Management expressed good visibility into cloud revenue based on prior deals, while services revenue visibility is less certain but still strong [81][84] Question: Margin outlook for next year - Management acknowledged strong demand and the need for aggressive hiring, which may impact margin improvements [75][76] Question: Dynamics of active WMS customers - Management reported a balanced mix of new and existing customers, with opportunities for expansion in both categories [77][96]