Manhattan Associates(US:MANH)2022-02-02 02:39Financial Data and Key Metrics Changes - Total revenue increased 17% to $171 million in Q4 2021, with full-year revenue totaling $664 million, up 13% [17] - Adjusted earnings per diluted share rose 7% to $0.48 in Q4, with full-year earnings per share at $2.23, reflecting a 27% growth [18] - Cloud revenue for Q4 reached $35 million, up 51%, with full-year cloud revenue totaling $122 million, up 53% [17] - RPO (Remaining Performance Obligations) grew to $699 million, a 126% increase year-over-year [17] Business Line Data and Key Metrics Changes - Global services revenue in Q4 was $82 million, up 15%, with full-year services revenue at $335 million, up 10% [17] - 20% of 2021 contracted bookings came from net new customers, indicating strong demand from both new and existing clients [6] - The company achieved a win rate of 75% in Q4, highlighting strong market demand for its offerings [6] Market Data and Key Metrics Changes - The company reported strong demand across various verticals, with retail, manufacturing, and wholesale accounting for over 80% of bookings in Q4 [6] - The customer base for Manhattan Active Warehouse Management has expanded to nearly 60 customers globally, indicating strong market interest [8] Company Strategy and Development Direction - The company aims to become a cloud-first organization, with cloud solutions representing 90% of its pipeline opportunities [3] - Plans to add approximately 500 net new employees globally to support growth and innovation [5] - Increased investment in research and development to nearly $100 million in 2022 to meet future customer needs [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth potential, citing strong demand for unified commerce and supply chain cloud solutions [5] - The company anticipates sustainable, profitable growth, despite global macroeconomic turbulence [25] - Management noted that supply chain disruptions continue to drive demand for their solutions, emphasizing the importance of supply chain flexibility and agility [48] Other Important Information - The company ended the year with $264 million in cash and zero debt, reflecting strong financial health [19] - A significant portion of the customer base is transitioning from on-premise solutions to cloud-native applications, with about 50% of new customers being existing clients [79] Q&A Session Summary Question: How much are customers wanting to buy both WMS and TMS? - Management confirmed that vendor consolidation is a goal and that conversations about purchasing both solutions are occurring, depending on customer capacity to implement [29][30] Question: What is the visibility regarding RPO activity? - Management indicated strong visibility and confidence in future performance, supported by a robust installed base [32] Question: Are customers willing to commit to more products now? - Management noted that there is a great opportunity for cross-sell and up-sell, with about 15% of 2021 bookings coming from such activities [45] Question: How is the demand environment affected by supply chain disruptions? - Management stated that while disruptions will continue, demand remains high for digital transformation and supply chain optimization [48] Question: What are the biggest new opportunities for the company? - Management highlighted modernization of supply chains and the shift of traditional wholesalers to direct-to-consumer models as key growth drivers [53] Question: How is the point-of-sale business trending? - Management reported building momentum in the point-of-sale business, with increasing demand and reference accounts [71] Question: Are there changes in customer budgeting cycles? - Management indicated no significant changes in customer budgeting cycles [73] Question: Has labor been a bottleneck in services? - Management confirmed that they have been able to hire effectively and have not seen significant delays in customer engagement due to labor shortages [77]