Summary
Manhattan Associates opened fiscal 2024 with double-digit top-line growth. Total revenue for the first quarter ended March 31, 2024, was $254.6 million, up 15.2% from the prior-year quarter. Operating income rose 22.4% to $57.6 million. Net income climbed 38.7% to $53.8 million. Diluted earnings per share rose 38.7% to $0.86. Operating margin expanded to 22.6%, up 1.3 percentage points from the prior-year quarter. On a non-GAAP basis, adjusted diluted earnings per share were $1.03 and adjusted operating income was $79.7 million. The company also raised its full-year guidance.
The revenue mix shows how far the cloud transition has run. Cloud subscriptions accounted for 30% of total revenue, software license 1%, maintenance 14%, services 52%, and hardware 3%. Cloud revenue now represents about 97% of total software revenue. International revenue was approximately 33% of total revenue. Remaining performance obligations, or RPO, stood at $1.5 billion, up 25.0% from the prior-year quarter. Over 98% of RPO represents cloud native subscriptions with a non-cancelable term greater than one year. Maintenance contracts typically run one year and are not included in RPO. Deferred revenue was $263.9 million, up 22.0% from the prior-year quarter. Those backlog figures point to a healthy book of contracted future business.
The mix also matters on the services side. Services is the largest single line at 52% of total revenue, and it is tied closely to cloud implementations. Management said the share of professional services revenue tied to cloud subscriptions was approximately 73% in the first quarter of 2024, up from 64% in the prior-year quarter. That shift supports the case that services growth follows cloud demand rather than legacy license work. License revenue keeps shrinking as customers choose cloud-native products.
Cash generation was mixed. Operating cash flow was $54.7 million, down 6.8% from the prior-year quarter. Management tied the decline to higher bonus payments and the timing of cash collections from customers. Capital expenditures were $2.3 million, up 248.5% from the prior-year quarter, as the company invested to support growth. The balance sheet carries no debt and no credit facilities. Manhattan returned capital through share repurchases, and in April 2024 the board replenished the remaining repurchase authority to an aggregate of $75.0 million. Management said existing cash will be sufficient to meet working capital and capital expenditure needs for at least the next twelve months.
Guidance for the full year 2024 was raised. On a non-GAAP basis, the company guided adjusted operating margin to 29.6% to 29.9% and adjusted diluted earnings per share to $3.86 to $3.94, which implies 3% to 5% growth. Management stayed cautious on the global economy. It noted that macro volatility persists and that sales cycles for large cloud subscriptions could be extended. Other named risks include competition, pricing pressures, international operations, foreign currency exchange risk, and geopolitical instability, including the wars in Ukraine and the Middle East. Inflation and disruption in the retail sector also made the list of factors that could shape customer spending.
The headline numbers show solid demand for Manhattan's supply chain and omnichannel software. Revenue growth of 15.2% and operating margin expansion of 1.3 percentage points point to operating leverage. RPO growth of 25.0% and deferred revenue growth of 22.0% suggest customers are committing to longer cloud contracts. The softer operating cash flow and the jump in capital expenditures bear watching. The full-year plan leans on continued investment in cloud innovation and global sales capacity. Execution against that plan will decide whether the current growth rate holds.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $254.6M | $238.3M | +6.8% | $221.0M | +15.2% |
| Gross profit | $135.3M | $131.5M | +2.8% | $117.4M | +15.2% |
| Gross margin | 53.1% | 55.2% | -2.1 pp | 53.1% | +0.0 pp |
| Research & development | $35.0M | $31.3M | +11.8% | $30.8M | +13.7% |
| Sales & marketing | $19.9M | $20.2M | -1.4% | $18.1M | +10.3% |
| General & administrative | $21.2M | $19.6M | +8.1% | $20.0M | +6.3% |
| Total operating expenses | $196.9M | $179.4M | +9.8% | $173.9M | +13.2% |
| Operating income (loss) | $57.6M | $58.9M | -2.1% | $47.1M | +22.4% |
| Operating margin | 22.6% | 24.7% | -2.1 pp | 21.3% | +1.3 pp |
| Net income (loss) | $53.8M | $48.7M | +10.4% | $38.8M | +38.7% |
| Net margin | 21.1% | 20.5% | +0.7 pp | 17.6% | +3.6 pp |
| Diluted EPS | $0.86 | $0.78 | +$0.08 | $0.62 | +$0.24 |
Risks
MD&A states that while first quarter 2024 results exceeded expectations, the company remains cautious about the global economy and expects geopolitical and economic volatility to continue shaping customers' and prospects' enterprise software buying decisions.
MD&A warns that sales cycles for large cloud subscriptions in target markets could be extended because software purchases are often part of customers' larger capital commitments and the current business climate may affect timing of strategic capital expenditures.
MD&A describes the supply chain and omnichannel software markets as intensely competitive with rapid technological change, and says the company aims to grow cloud subscriptions and software license revenues faster than competitors through innovation.
MD&A notes the business model is singularly focused on complex commerce enablement software, and cloud subscriptions revenue now represents about 97% of total software revenue, making results dependent on continued cloud adoption and cloud subscription growth.
Forward-looking factors in the filing include the ability to attract and retain highly skilled employees, and MD&A says the company continues to invest in global teams and headcount capacity to support customers and growth.
MD&A reports international revenue was approximately $83.7 million, or about 33% of total revenue, in the three months ended March 31, 2024, and notes foreign currency losses of $0.6 million in the quarter, exposing results to international operations and currency risk.
SaaS KPIs
All quarters →Adjusted Operating Income
Remaining Performance Obligations (RPO)
Cloud Subscriptions Revenue
Cloud Subscriptions Revenue Growth
Summary, forecast, risks and KPIs are extracted from MANHATTAN ASSOCIATES INC's SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.