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Manhattan Associates Reports Record First Quarter 2021 Revenue and EPS

ATLANTA, April 27, 2021 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $156.9 million for the first quarter ended March 31, 2021. GAAP diluted earnings per share for both Q1 2021 and Q1 2020 was $0.35. Non-GAAP adjusted diluted earnings per share for Q1 2021 was $0.43 compared to $0.40 for Q1 2020.

“We’re very pleased with our strong start to 2021, delivering the best Q1 revenue and earnings per share performance on record, exceeding our expectations,” said Manhattan Associates President and CEO Eddie Capel. “Accelerating demand for our solutions drove record first quarter bookings with RPO more than doubling over last year to $421 million. Deal activity was solid across our solutions, with demand notably impressive for Manhattan Active® Warehouse Management, which in turn is fueling strong services demand and increased visibility to future revenue growth.” Mr. Capel continued, “Reflective of our great start to the year, we are raising our full-year revenue and EPS guidance.”

“In a turbulent global macro, favorable secular tailwinds are strengthening and continue to showcase the strategic importance of our suite of Manhattan Active omnichannel, inventory and supply chain solutions. We remain focused on enabling our clients to accelerate growth and Push Possible®, while investing significantly in innovation to achieve long-term sustainable growth in 2021 and beyond,” Mr. Capel concluded.


  • Consolidated total revenue was $156.9 million for Q1 2021, compared to $153.9 million for Q1 2020.

    • Cloud subscription revenue was $26.6 million for Q1 2021, compared to $17.3 million for Q1 2020.

    • License revenue was $7.8 million for Q1 2021, compared to $9.7 million for Q1 2020.

    • Services revenue was $80.4 million for Q1 2021, compared to $87.4 million for Q1 2020.

  • GAAP diluted earnings per share was $0.35 for both Q1 2021 and Q1 2020.

  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.43 for Q1 2021, compared to $0.40 for Q1 2020.

  • GAAP operating income was $25.4 million for Q1 2021, compared to $24.2 million for Q1 2020.

  • Adjusted operating income, a non-GAAP measure, was $35.6 million for Q1 2021, compared to $31.9 million for Q1 2020.

  • Cash flow from operations was $39.9 million for Q1 2021, compared to $11.6 million for Q1 2020. Days Sales Outstanding was 61 days at March 31, 2021, compared to 68 days at December 31, 2020.

  • Cash totaled $197.2 million at March 31, 2021, compared to $204.7 million at December 31, 2020.

  • During the three months ended March 31, 2021, the Company repurchased 214,422 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $27.0 million. In April 2021, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.


Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2021:

  Guidance Range - 2021 Full Year
 ($'s in millions, except operating margin and EPS)$ Range  % Growth Range 
 Total revenue - current guidance$625  $640  7% 9% 
 Total revenue - previous guidance$595  $625      
 Operating Margin:            
 GAAP operating margin - current guidance 14.2%  15.4%     
 Equity-based compensation 6.8%  6.6%     
 Adjusted operating margin(1) - current guidance 21.0%  22.0%     
 GAAP operating margin - previous guidance 13.7%  15.0%     
 Equity-based compensation 6.8%  6.5%     
 Adjusted operating margin(1) - previous guidance 20.5%  21.5%     
 Diluted earnings per share (EPS):            
 GAAP EPS - current guidance$1.10  $1.20  -19% -12% 
 Equity-based compensation, net of tax 0.56   0.56      
 Excess tax benefit on stock vesting (0.06)  (0.06)     
 Adjusted EPS(1) - current guidance$1.60  $1.70  -9% -3% 
 GAAP EPS - previous guidance$0.96  $1.11      
 Equity-based compensation, net of tax 0.57   0.57      
 Excess tax benefit on stock vesting (0.09)  (0.09)     
 Adjusted EPS(1) - previous guidance$1.44  $1.59      
 (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 these items if applicable. 

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, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. We note in particular that the severity, duration and ultimate impact of the COVID-19 pandemic are difficult to predict at this time. In addition, 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 its earnings release and published expectations available on the investor relations section of the Manhattan Associates website at Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance above, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.


The Company’s conference call regarding its first quarter 2021 financial results will be held today, April 27, 2021, 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 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.

Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 1407257 or via the web at The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ second quarter 2021 earnings release.


The Company 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 months ended March 31, 2021.

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.


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 and on-premise 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

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 “2021 Guidance,” any statements about the future effect of the COVID-19 pandemic on our business, customers or the global economy, our business prospects following the pandemic, 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: the risk that the duration and severity of the COVID-19 pandemic, and its ultimate effects on the global economy, our customers and our business, may be worse than expected; risks related to transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription/cloud-based software-as-a service model; disruption in the retail sector; the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; 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, 2020, 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.

Condensed Consolidated Statements of Income
(in thousands, except per share amounts)

  Three Months Ended March 31, 
  2021  2020 
  (unaudited)  (unaudited) 
Cloud subscriptions $26,643  $17,260 
Software license  7,838   9,735 
Maintenance  36,159   35,744 
Services  80,359   87,406 
Hardware  5,851   3,758 
Total revenue  156,850   153,903 
Costs and expenses:        
Cost of software license  556   555 
Cost of cloud subscriptions, maintenance and services  73,509   74,276 
Research and development  24,260   23,328 
Sales and marketing  13,396   13,088 
General and administrative  17,569   16,114 
Depreciation and amortization  2,135   2,346 
Total costs and expenses  131,425   129,707 
Operating income  25,425   24,196 
Other (loss) income, net  (293)  1,420 
Income before income taxes  25,132   25,616 
Income tax provision  2,489   3,086 
Net income $22,643  $22,530 
Basic earnings per share $0.36  $0.35 
Diluted earnings per share $0.35  $0.35 
Weighted average number of shares:        
Basic  63,645   63,592 
Diluted  64,466   64,342 

Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)

  Three Months Ended March 31, 
  2021  2020 
Operating income $25,425  $24,196 
Equity-based compensation (a)  10,051   7,564 
Purchase amortization (c)  107   107 
Adjusted operating income (Non-GAAP) $35,583  $31,867 
Income tax provision $2,489  $3,086 
Equity-based compensation (a)  1,418   890 
Tax benefit of stock awards vested (b)  3,655   3,682 
Purchase amortization (c)  27   27 
Adjusted income tax provision (Non-GAAP) $7,589  $7,685 
Net income $22,643  $22,530 
Equity-based compensation (a)  8,633   6,674 
Tax benefit of stock awards vested (b)  (3,655)  (3,682)
Purchase amortization (c)  80   81 
Adjusted net income (Non-GAAP) $27,701  $25,603 
Diluted EPS $0.35  $0.35 
Equity-based compensation (a)  0.13   0.10 
Tax benefit of stock awards vested (b)  (0.06)  (0.06)
Purchase amortization (c)  -   - 
Adjusted diluted EPS (Non-GAAP) $0.43  $0.40 
Fully diluted shares  64,466   64,342 

(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 this 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 March 31, 
  2021  2020 
Cost of services $3,279  $2,285 
Research and development  1,992   1,541 
Sales and marketing  1,014   803 
General and administrative  3,766   2,935 
Total equity-based compensation $10,051  $7,564 

(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 excluded 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 excluded 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.

Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)

  March 31,
  December 31,
Current assets:        
Cash and cash equivalents $197,166  $204,705 
Accounts receivable, net of allowance of $3,451 and $3,497, at March 31, 2021 and December 31, 2020, respectively  106,274   109,202 
Prepaid expenses and other current assets  26,611   20,134 
Total current assets  330,051   334,041 
Property and equipment, net  16,484   17,903 
Operating lease right-of-use assets  29,581   31,470 
Goodwill, net  62,244   62,252 
Deferred income taxes  2,117   5,760 
Other assets  18,051   13,986 
Total assets $458,528  $465,412 
Current liabilities:        
Accounts payable $18,327  $17,805 
Accrued compensation and benefits  44,643   41,962 
Accrued and other liabilities  20,401   21,181 
Deferred revenue  122,939   114,164 
Income taxes payable  428   1,874 
Total current liabilities  206,738   196,986 
Operating lease liabilities, long-term  26,132   27,843 
Other non-current liabilities  20,998   21,686 
Shareholders' equity:        
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2021 and 2020  -   - 
Common stock, $0.01 par value; 200,000,000 shares authorized; 63,616,713 and 63,527,186 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively  636   635 
Retained earnings  222,815   236,524 
Accumulated other comprehensive loss  (18,791)  (18,262)
Total shareholders' equity  204,660   218,897 
Total liabilities and shareholders' equity $458,528  $465,412 

Condensed Consolidated Statements of Cash Flows
(in thousands)

  Three Months Ended March 31, 
  2021  2020 
  (unaudited)  (unaudited) 
Operating activities:        
Net income $22,643  $22,530 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization  2,135   2,346 
Equity-based compensation  10,051   7,564 
(Gain) loss on disposal of equipment  (2)  7 
Deferred income taxes  3,636   5,511 
Unrealized foreign currency gain  (386)  (1,130)
Changes in operating assets and liabilities:        
Accounts receivable, net  2,204   (12,217)
Other assets  (9,467)  (4,889)
Accounts payable, accrued and other liabilities  2,661   (14,794)
Income taxes  (2,878)  (5,385)
Deferred revenue  9,288   12,045 
Net cash provided by operating activities  39,885   11,588 
Investing activities:        
Purchase of property and equipment  (569)  (1,245)
Net cash used in investing activities  (569)  (1,245)
Financing activities:        
Purchase of common stock  (46,402)  (43,032)
Net cash used in financing activities  (46,402)  (43,032)
Foreign currency impact on cash  (453)  (2,710)
Net change in cash and cash equivalents  (7,539)  (35,399)
Cash and cash equivalents at beginning of period  204,705   110,678 
Cash and cash equivalents at end of period $197,166  $75,279 


1.   Continuing Impact of COVID-19:

Regarding the impact of the novel coronavirus disease (“COVID-19”) pandemic, we remain cautious about the global recovery, which we expect to be slow and protracted.

Our results for the first quarter exceeded our expectations due to solid demand for our cloud solutions. Our solutions are mission critical, supporting complex global supply chains. Favorable secular tailwinds, such as the digital transformation of businesses in manufacturing, wholesale and retail, coupled with our commitment to investing in organic innovation to deliver leading cloud supply chain, inventory and omnichannel commerce solutions was in synergistic alignment with current market demand during the first quarter of 2021. This alignment contributed to higher demand and strong win rates for our solutions for the quarter.

We remain committed to investing in our business to drive customer success and expand our total addressable market, which we believe will position us well to achieve long-term sustainable growth and earnings. As previously announced, we have reversed the temporary actions that we had previously taken, effective on April 1, 2020, to manage operating expenses and cash flow due to the COVID-19 pandemic, and our Board of Directors has reinstated our share repurchase program.

2.   GAAP and Adjusted earnings per share by quarter are as follows:

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr 
GAAP Diluted EPS$0.35  $0.30  $0.39  $0.32  $1.36  $0.35 
Adjustments to GAAP:                       
Equity-based compensation 0.10   0.10   0.13   0.13   0.46   0.13 
Tax benefit of stock awards vested (0.06)  -   -   -   (0.06)  (0.06)
Purchase amortization -   -   -   -   -   - 
Adjusted Diluted EPS$0.40  $0.40  $0.51  $0.45  $1.76  $0.43 
Fully Diluted Shares 64,342   64,126   64,427   64,484   64,333   64,466 

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

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr 
Americas$123,146  $107,368  $121,168  $114,257  $465,939  $122,813 
EMEA 24,313   21,558   21,721   25,990   93,582   28,434 
APAC 6,444   6,704   6,868   6,835   26,851   5,603 
 $153,903  $135,630  $149,757  $147,082  $586,372  $156,850 
GAAP Operating Income: 
Americas$16,282  $18,984  $27,296  $18,547  $81,109  $16,116 
EMEA 6,313   5,515   5,319   7,490   24,637   8,374 
APAC 1,601   2,193   2,361   2,160   8,315   935 
 $24,196  $26,692  $34,976  $28,197  $114,061  $25,425 
Adjustments (pre-tax): 
Equity-based compensation$7,564  $7,492  $9,012  $9,287  $33,355  $10,051 
Purchase amortization 107   110   107   105   429   107 
 $7,671  $7,602  $9,119  $9,392  $33,784  $10,158 
Adjusted non-GAAP Operating Income: 
Americas$23,953  $26,586  $36,415  $27,939  $114,893  $26,274 
EMEA 6,313   5,515   5,319   7,490   24,637   8,374 
APAC 1,601   2,193   2,361   2,160   8,315   935 
 $31,867  $34,294  $44,095  $37,589  $147,845  $35,583 

4.   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):

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr 
Revenue$(988) $(777) $1,165  $1,946  $1,346  $2,932 
Costs and expenses (996)  (1,430)  291   918   (1,217)  2,000 
Operating income 8   653   874   1,028   2,563   932 
Foreign currency (losses) gains in other income 1,348   (193)  (913)  (639)  (397)  (287)
 $1,356  $460  $(39) $389  $2,166  $645 

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):

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr 
Operating income$308  $895  $601  $445  $2,249  $79 
Foreign currency (losses) gains in other income 1,450   262   (1,165)  (381)  166   315 
Total impact of changes in the Indian Rupee$1,758  $1,157  $(564) $64  $2,415  $394 

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

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr 
Interest income$68  $28  $8  $(6) $98  $(15)
Foreign currency (losses) gains 1,348   (193)  (913)  (639)  (397)  (287)
Other non-operating (expense) income 4   7   14   (11)  14   9 
Total other (loss) income$1,420  $(158) $(891) $(656) $(285) $(293)

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

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr 
Capital expenditures$1,245  $507  $176  $802  $2,730  $569 

7.   Stock Repurchase Activity (in thousands):

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr 
Shares purchased under publicly announced buy-back program 337   -   -   -   337   214 
Shares withheld for taxes due upon vesting of restricted stock units 219   2   4   -   225   172 
Total shares purchased 556   2   4   -   562   386 
Total cash paid for shares purchased under publicly announced buy-back program$25,000  $-  $-  $-  $25,000  $26,988 
Total cash paid for shares withheld for taxes due upon vesting of restricted stock units 18,032   123   368   38   18,561   19,414 
Total cash paid for shares repurchased$43,032  $123  $368  $38  $43,561  $46,402 

8.   Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Our reported performance obligations primarily represent cloud 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). Our deferred revenue on the balance sheet primarily relates to our maintenance contracts, which are typically one year in duration 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,
  June 30,
  September 30,
  December 31,
  March 31,
Remaining Performance Obligations$202,793  $225,470  $257,287  $308,761  $421,196 

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

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