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Manhattan Associates Reports Record Fourth Quarter and Full Year Results

ATLANTA, Feb. 02, 2023 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $198.1 million for the fourth quarter ended December 31, 2022. GAAP diluted earnings per share for Q4 2022 was $0.60 compared to $0.32 in Q4 2021. Non-GAAP adjusted diluted earnings per share for Q4 2022 was $0.81 compared to $0.48 in Q4 2021.

“Manhattan's business momentum is strong, and our fourth quarter results exceeded expectations. This contributed to the company achieving record top- and bottom-line results in 2022," said Manhattan Associates president and CEO Eddie Capel.

“We enter 2023 optimistic about our market opportunity and remain committed to investing in market leading innovation. We are confident these investments will contribute to our high levels of customer satisfaction and extend our positioning as the leading innovator in core Supply Chain Execution, Omni-channel and retail Point of Sale solutions," Capel concluded. 

FOURTH QUARTER 2022 FINANCIAL SUMMARY:

  • Consolidated total revenue was $198.1 million for Q4 2022, compared to $171.5 million for Q4 2021.
    • Cloud subscription revenue was $51.7 million for Q4 2022, compared to $34.8 million for Q4 2021.
    • License revenue was $5.0 million for Q4 2022, compared to $11.9 million for Q4 2021.
    • Services revenue was $99.8 million for Q4 2022, compared to $81.6 million for Q4 2021.
  • GAAP diluted earnings per share was $0.60 for Q4 2022, compared to $0.32 for Q4 2021.
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.81 for Q4 2022, compared to $0.48 for Q4 2021.
  • GAAP operating income was $44.7 million for Q4 2022, compared to $27.1 million for Q4 2021.
  • Adjusted operating income, a non-GAAP measure, was $59.9 million for Q4 2022, compared to $39.1 million for Q4 2021.
  • Cash flow from operations was $55.2 million for Q4 2022, compared to $40.1 million for Q4 2021. Days Sales Outstanding was 77 days at December 31, 2022, compared to 67 days at September 30, 2022.
  • Cash totaled $225.5 million at December 31, 2022, compared to $197.1 million at September 30, 2022.
  • During the three months ended December 31, 2022, the Company repurchased 206,418 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $25.2 million. In January 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.

FULL YEAR 2022 FINANCIAL SUMMARY:

  • Consolidated total revenue for the twelve months ended December 31, 2022, was $767.1 million, compared to $663.6 million for the twelve months ended December 31, 2021.
    • Cloud subscription revenue was $176.5 million for the twelve months ended December 31, 2022, compared to $122.2 million for the twelve months ended December 31, 2021.
    • License revenue was $24.8 million for the twelve months ended December 31, 2022, compared to $37.1 million for the twelve months ended December 31, 2021.
    • Services revenue was $394.1 million for the twelve months ended December 31, 2022, compared to $334.8 million for the twelve months ended December 31, 2021.
  • GAAP diluted earnings per share for the twelve months ended December 31, 2022, was $2.03, compared to $1.72 for the twelve months ended December 31, 2021. 
  • Adjusted diluted earnings per share, a non-GAAP measure, was $2.76 for the twelve months ended December 31, 2022, compared to $2.23 for the twelve months ended December 31, 2021.
  • GAAP operating income was $152.7 million for the twelve months ended December 31, 2022, compared to $134.3 million for the twelve months ended December 31, 2021.
  • Adjusted operating income, a non-GAAP measure, was $212.1 million for the twelve months ended December 31, 2022, compared to $177.9 million for the twelve months ended December 31, 2021.
  • Cash flow from operations was $179.6 million for the twelve months ended December 31, 2022, compared to $185.2 million for the twelve months ended December 31, 2021.
  • During the twelve months ended December 31, 2022, the Company repurchased 1,352,954 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $175.4 million.

2023 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2023:

   
  Guidance Range - 2023 Full Year 
 ($'s in millions, except operating margin and EPS)$ Range % Growth Range 
          
 Total revenue$820 $833 7% 9% 
          
 Operating Margin:        
 GAAP operating margin 17.6%  18.8%     
 Equity-based compensation 7.9%  7.7%     
 Adjusted operating margin(1) 25.5%  26.5%     
          
 Diluted earnings per share (EPS):        
 GAAP EPS$1.81 $1.95 -11% -4% 
 Equity-based compensation 0.86  0.86     
 Excess tax benefit on stock vesting(2) (0.06)  (0.06)     
 Adjusted EPS(1)$2.61 $2.75 -5% 0% 
          
 (1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based 
 compensation and acquisition-related costs, and the related income tax effects of those items if applicable. 
 (2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2023. 
          


Manhattan Associates currently intends to publish in each quarterly earnings release certain expectations with respect to future financial performance. Those statements, including the guidance provided above and guideposts in the supplemental information below, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. Those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.

Manhattan Associates will make this earnings release and published expectations available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance and guideposts, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

Manhattan Associates’ conference call regarding its fourth quarter and twelve months ended December 31, 2022, financial results will be held today, February 2, 2023, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software. The Internet webcast will be available until Manhattan Associates’ first quarter 2023 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

Manhattan Associates provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and twelve months ended December 31, 2022.

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation, acquisition-related costs and the amortization of these costs, and (from time to time) restructuring charges – all net of income tax effects. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers. 

Manhattan Associates designs, builds and delivers leading edge cloud solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc.  Forward-looking statements in this press release include, without limitation, the information set forth under “2023 Guidance” and “Guideposts,” statements we make about market adoption of our cloud-based solution and other statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including inflation; disruption in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; disruption in the retail sector; risks related to our products’ technology and customer implementations; global instability, including the war in Ukraine; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.




MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
 
 Three Months Ended December 31,  Year Ended December 31, 
 2022  2021  2022  2021 
 (unaudited)  (unaudited)       
Revenue:           
Cloud subscriptions$51,691  $34,761  $176,458  $122,195 
Software license 4,979   11,948   24,848   37,070 
Maintenance 35,083   37,471   142,198   145,841 
Services 99,812   81,565   394,096   334,799 
Hardware 6,538   5,749   29,484   23,738 
Total revenue 198,103   171,494   767,084   663,643 
Costs and expenses:           
Cost of software license 377   507   2,126   2,309 
Cost of cloud subscriptions, maintenance and services 89,629   81,124   356,111   295,518 
Research and development 27,123   26,783   111,877   97,628 
Sales and marketing 16,656   16,652   64,537   57,855 
General and administrative 18,107   17,507   73,070   68,086 
Depreciation and amortization 1,506   1,778   6,663   7,914 
Total costs and expenses 153,398   144,351   614,384   529,310 
Operating income 44,705   27,143   152,700   134,333 
Other loss, net 828   (232)  5,421   (261)
Income before income taxes 45,533   26,911   158,121   134,072 
Income tax provision 7,665   6,329   29,162   23,600 
Net income$37,868  $20,582  $128,959  $110,472 
            
Basic earnings per share$0.61  $0.33  $2.05  $1.74 
Diluted earnings per share$0.60  $0.32  $2.03  $1.72 
            
Weighted average number of shares:           
Basic 62,327   63,241   62,768   63,445 
Diluted 63,028   64,224   63,408   64,323 




 MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
 
 Three Months Ended December 31,   Year Ended December 31, 
 2022  2021   2022  2021 
             
Operating income$44,705   27,143   $152,700   134,333 
Equity-based compensation (a) 15,152   11,926    59,361   43,259 
Purchase amortization (c) -   -    -   264 
Adjusted operating income (Non-GAAP)$59,857  $39,069   $212,061  $177,856 
             
             
Income tax provision$7,665   6,329   $29,162   23,600 
Equity-based compensation (a) 2,045   1,873    9,058   6,272 
Tax benefit of stock awards vested (b) (3)  14    4,383   4,383 
Purchase amortization (c) -   -    -   65 
Adjusted income tax provision (Non-GAAP)$9,707  $8,216   $42,603  $34,320 
             
             
Net income$37,868  $20,582   $128,959  $110,472 
Equity-based compensation (a) 13,107   10,053    50,303   36,987 
Tax benefit of stock awards vested (b) 3   (14)   (4,383)  (4,383)
Purchase amortization (c) -   -    -   199 
Adjusted net income (Non-GAAP)$50,978  $30,621   $174,879  $143,275 
             
             
Diluted EPS$0.60  $0.32   $2.03  $1.72 
Equity-based compensation (a) 0.21   0.16    0.79   0.58 
Tax benefit of stock awards vested (b) -   -    (0.07)  (0.07)
Purchase amortization (c) -   -    -   - 
Adjusted diluted EPS (Non-GAAP)$0.81  $0.48   $2.76  $2.23 
             
Fully diluted shares 63,028   64,224    63,408   64,323 

(a)     Adjusted results exclude all equity-based compensation to facilitate comparison with our peers and because it typically does not require cash settlement. As explained in our Current Report on Form 8-K filed today with the SEC, we do not include that expense when assessing our operating performance. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives. The Tax Cuts and Jobs Act further increased those limitations.

 Three Months Ended December 31,  Year Ended December 31, 
 2022  2021  2022  2021 
            
Cost of services$5,609  $4,390  $21,876  $15,159 
Research and development 3,341   2,567   13,081   8,814 
Sales and marketing 1,543   1,147   6,003   4,345 
General and administrative 4,659   3,822   18,401   14,941 
Total equity-based compensation$15,152  $11,926  $59,361  $43,259 

(b)     Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also exclude the related tax benefit (expense) generated upon their vesting.

(c)     Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.



MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
 
  December 31, 2022  December 31, 2021 
       
ASSETS      
Current Assets:      
Cash and cash equivalents $225,463  $263,706 
Accounts receivable, net of allowance of $6,009 and $2,419, at December 31, 2022 and December 31, 2021, respectively  166,767   124,420 
Prepaid expenses and other current assets  23,145   20,293 
Total current assets  415,375   408,419 
       
Property and equipment, net  12,803   13,889 
Operating lease right-of-use assets  17,794   27,272 
Goodwill, net  62,230   62,239 
Deferred income taxes  37,206   7,650 
Other assets  24,770   20,239 
Total assets $570,178  $539,708 
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current liabilities:      
Accounts payable $25,701  $19,625 
Accrued compensation and benefits  54,469   53,104 
Accrued and other liabilities  24,569   22,741 
Deferred revenue  208,807   153,196 
Income taxes payable  2,049   376 
Total current liabilities  315,595   249,042 
       
Operating lease liabilities, long-term  14,065   23,157 
Other non-current liabilities  13,718   16,865 
       
Shareholders' equity:      
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2022 and December 31, 2021  -   - 
Common stock, $.01 par value; 200,000,000 shares authorized; 62,191,570 and 63,154,494 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively  621   631 
Retained earnings  253,711   269,841 
Accumulated other comprehensive loss  (27,532)  (19,828)
Total shareholders' equity  226,800   250,644 
Total liabilities and shareholders' equity $570,178  $539,708 



MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
 
  Year Ended December 31,
  2022  2021 
       
Operating activities:      
Net income $128,959  $110,472 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization  6,663   7,914 
Equity-based compensation  59,361   43,259 
Loss on disposal of equipment  (89)  7 
Deferred income taxes  (29,711)  (1,912)
Unrealized foreign currency (gain) loss  (1,515)  (493)
Changes in operating assets and liabilities:      
Accounts receivable, net  (44,056)  (16,650)
Other assets  (10,247)  (6,533)
Accounts payable, accrued and other liabilities  11,794   12,256 
Income taxes  765   (3,667)
Deferred revenue  57,706   40,530 
Net cash provided by operating activities  179,630   185,183 
       
Investing activities:      
Purchases of property and equipment  (6,587)  (4,016)
Net cash used in investing activities  (6,587)  (4,016)
       
Financing activities:      
Purchase of common stock  (204,460)  (120,418)
Net cash used in financing activities  (204,460)  (120,418)
       
Foreign currency impact on cash  (6,826)  (1,748)
       
Net change in cash and cash equivalents  (38,243)  59,001 
Cash and cash equivalents at beginning of period  263,706   204,705 
Cash and cash equivalents at end of period $225,463  $263,706 
       


MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1.     GAAP and adjusted earnings per share by quarter are as follows:

 2021 2022
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
GAAP Diluted EPS$0.35 $0.48 $0.57 $0.32 $1.72 $0.48 $0.49 $0.47 $0.60 $2.03
Adjustments to GAAP:                   
Equity-based compensation0.13 0.14 0.14 0.16 0.58 0.19 0.20 0.19 0.21 0.79
Tax benefit of stock awards vested(0.06) (0.01) - - (0.07) (0.07) - - - (0.07)
Purchase amortization- - ------- - -----
Adjusted Diluted EPS$0.43 $0.61 $0.71 $0.48 $2.23 $0.60 $0.69 $0.66 $0.81 $2.76
Fully Diluted Shares64,466  64,276  64,238  64,224  64,323  63,871  63,419  63,165  63,028  63,408


2.        Revenues and operating income by reportable segment are as follows (in thousands):

 2021 2022
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Revenue:
Americas$122,813 $132,308 $135,233 $135,861 $526,215 $139,540 $151,996 $156,674 $155,674 $603,884
EMEA28,434 27,190 27,402 27,548 110,574 32,151 31,614 31,843 33,330 128,938
APAC5,603 6,616 6,550 8,085 26,854 7,265 8,314 9,584 9,099 34,262
 $156,850 $166,114 $169,185 $171,494 $663,643 $178,956 $191,924 $198,101 $198,103 $767,084
                    
GAAP Operating Income:
Americas$16,116 $28,590 $29,727 $16,746 $91,179 $21,393 $24,507 $22,914 $30,475 $99,289
EMEA8,374 8,643 10,485 7,245 34,747 10,517 9,423 9,851 10,239 40,030
APAC935 2,124 2,196 3,152 8,407 2,062 3,323 4,005 3,991 13,381
 $25,425 $39,357 $42,408 $27,143 $134,333 $33,972 $37,253 $36,770 $44,705 $152,700
                    
Adjustments (pre-tax):
Americas:                   
Equity-based
   compensation
$10,051 $10,709 $10,573 $11,926 $43,259 $14,138 $15,538 $14,533 $15,152 $59,361
Purchase amortization107 107 50 - 264 - - - - -
 $10,158 $10,816 $10,623 $11,926 $43,523 $14,138 $15,538 $14,533 $15,152 $59,361
                    
Adjusted non-GAAP Operating Income:
Americas$26,274 $39,406 $40,350 $28,672 $134,702 $35,531 $40,045 $37,447 $45,627 $158,650
EMEA8,374 8,643 10,485 7,245 34,747 10,517 9,423 9,851 10,239 40,030
APAC935 2,124 2,196 3,152 8,407 2,062 3,323 4,005 3,991 13,381
 $35,583 $50,173 $53,031 $39,069 $177,856 $48,110 $52,791 $51,303 $59,857 $212,061
                    


3.     Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

  2021 2022
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Revenue$2,932 $3,209 $823 ($716) $6,248 ($2,268) ($4,568) ($6,152) ($5,124) ($18,112)
Costs and expenses 2,000 2,442 551 (887) 4,106 (2,043) (3,862) (5,412) (5,354) (16,671)
Operating income 932 767 272 171 2,142 (225) (706) (740) 230 (1,441)
Foreign currency gains
   (losses) in other income
 (287) 315 (30) (243) (245) 711 2,056 1,569 353 4,689
 $645 $1,082 $242 ($72) $1,897 $486 $1,350 $829 $583 $3,248


Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

 2021 2022
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Operating income$79 ($294) ($37) $281 $29 $470 $710 $1,166 $1,900 $4,246
Foreign currency gains
   (losses) in other income
315 535 3 (9) 844 809 2,085 1,713 738 5,345
Total impact of
   changes in the
   Indian Rupee
$394 $241 ($34) $272 $873 $1,279 $2,795 $2,879 $2,638 $9,591


4.        Other income includes the following components (in thousands):

 2021 2022
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Interest income($15) ($10) ($9) $102 $68 $19 $92 $112 $373 596
Foreign currency gains
   (losses)
(287) 315 (30) (243) (245) 711 2,056 1,569 353 4,689
Other non-operating
   income (expense)
9 1 (3) (91) (84) 8 95 (69) 102 136
Total other income (loss)($293) $306 ($42) ($232) ($261) $738 $2,243 $1,612 $828 $5,421


5.        Capital expenditures are as follows (in thousands):

 2021
 2022
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Capital expenditures$569 $602 $987 $1,858 $4,016 $1,159 $1,084 $1,909 $2,435 $6,587


6.        Stock Repurchase Activity (in thousands):

 2021 2022
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Shares purchased under publicly-announced buy-back program214 244 123 128 709 383 417 347 206 1,353
Shares withheld for taxes due upon vesting of restricted stock172 1 5 1 179 203 4 8 2 217
Total shares purchased386 245 128 129 888 586 421 355 208 1,570
                    
Total cash paid for shares purchased under publicly-announced buy-back program$26,988 $32,894 $19,994 $20,117 $99,993 $49,965 $50,151 $50,000 $25,234 $175,350
Total cash paid for shares withheld for taxes due upon vesting of restricted stock19,414 190 762 59 20,425 27,143 528 1,242 197 29,110
Total cash paid for shares repurchased$46,402 $33,084 $20,756 $20,176 $120,418 $77,108 $50,679 $51,242 $25,431 $204,460


7.        Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Over 97% of our reported performance obligations represent cloud native subscriptions with a non-cancelable term greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts are typically one year and are not included in the remaining performance obligations. Below are our remaining performance obligations as of the end of each period (in thousands):

 March 31,
2021
  June 30,
2021
  September
30, 2021
  December 31,
2021
  March 31,
2022
  June 30,
2022
  September
30, 2022
  December
31, 2022
 
Remaining
Performance
Obligations
$421,196  $488,718  $573,712  $699,244  $809,540  $897,680  $969,603  $1,051,544 


8.        The 2017 U.S. Tax Cuts and Jobs Act eliminated the expensing of research and development costs as incurred for tax purposes beginning in 2022.             

This law changes the timing of cash tax payments, increasing near-term taxable income and payments, but normalizing over time as these expenses are amortized.  As such, our cash was negatively impacted by approximately $26 million in additional income tax payments.  This legislation does not impact earnings per share, does not create any incremental expense obligation and does not impact our ability to operationally grow cash flow.

9.        Guideposts

The following table shows our (i) actual 2022 cloud revenue and remaining performance obligations (“RPO”) results, (ii) revised 2023 cloud revenue guidepost, (iii) 2023 RPO guidepost published as of October 25, 2022, and (iv) guideposts published as of February 1, 2022, for cloud revenue and RPO for 2024.

 Current Guideposts 
 ($'s in millions) 
           
 Cloud Revenue 
 Year Low Mid High % Growth(1) 
 2022⁽²⁾ $176 $176 $176 44% 
 2023⁽³⁾ $232 $234 $236 33% 
 2024⁽⁵⁾ $310 $328 $345 40% 
           
 Remaining Performance Obligations 
 Year Low Mid High % Growth(1) 
 2022⁽²⁾ $1,052 $1,052 $1,052 50% 
 2023⁽⁴⁾ $1,300 $1,350 $1,400 28% 
 2024⁽⁵⁾ $1,600 $1,700 $1,800 26% 
           
 (1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points. 
 (2) Amount reflects actual results for 2022. 
 (3) Amount reflects revised range as of February 2, 2023. 
 (4) Amount remain unchanged from October 25, 2022. 
 (5) Amounts remain unchanged from February 1, 2022. 

These guideposts are forward-looking statements and are subject to all the risks and uncertainties applicable to our shorter-term 2023 Guidance, as stated above. In addition, the further into the future we project our financial expectations, the greater the risk that actual results will differ materially; consequently, our longer-term guideposts may be inherently more uncertain than our shorter-term guidance.

Contact: Michael Bauer Rick Fernandez
  Senior Director, 
Investor Relations
 Director,
Corporate Communications
  Manhattan Associates, Inc. Manhattan Associates, Inc.
  678-597-7538 678-597-6988
  mbauer@manh.com rfernandez@manh.com
     


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