Manhattan Associates(US:MANH)2024-04-23 23:06Financial Data and Key Metrics Changes - Q1 total revenue increased 15% to $255 million, adjusted earnings per share increased 29% to $1.03, both exceeding expectations [4][39] - RPO increased 31% to just over $1.5 billion, indicating strong demand for cloud solutions [11][39] - Adjusted operating profit was $80 million with an adjusted operating margin of 31.3%, up 250 basis points year-over-year [24] Business Line Data and Key Metrics Changes - Cloud revenue grew 36% to $78 million, while services revenue increased 14% to $132 million [4][39] - Professional services team completed over 100 go-lives, contributing to services revenue growth [6] Market Data and Key Metrics Changes - Retail, manufacturing, and wholesale sectors drove over 80% of bookings in the quarter [11] - New customers accounted for approximately one-third of new bookings, indicating a healthy mix of conversions, upsells, and cross-sells [5] Company Strategy and Development Direction - The company continues to invest in innovation and customer success, aiming to expand its addressable market [6][16] - Strategic investments include enhancements in supply chain execution and omni-channel solutions, with a focus on delivering industry-leading features [19][20] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about business opportunities despite global macroeconomic uncertainties [46] - The company is raising its 2024 revenue guidance to a range of $1.026 billion to $1.034 billion, representing 17% growth [43][42] Other Important Information - Deferred revenue increased 21% to $265 million, with a strong cash position of $208 million and zero debt [25] - The company plans to hire several hundred associates in 2024, having already welcomed over 100 new employees in Q1 [6][94] Q&A Session Summary Question: Update on Cloud WMS adoption - Management reported strong momentum with customers going live at a rate of over one site per month, particularly in large automated facilities [48] Question: Timeline for global supply chain projects - The rollout of a unified supply chain execution program across multiple distribution centers typically takes about three years [55] Question: Feedback on point of sale solutions - The company continues to receive positive feedback, securing new customers and expanding its point of sale offerings [57] Question: Update on Shopify partnership - The partnership is progressing well, with ongoing integration efforts and a focus on e-commerce platform replacements [61] Question: Demand backdrop and market volatility - Management acknowledged ongoing macro volatility but noted strong performance across diverse verticals [84][105]