Summary
Manhattan Associates closed fiscal 2024 with fourth quarter revenue of $255.8 million, up 7.4% from $238.3 million in the prior year quarter. Full year revenue reached $1,042.4 million, up 12.2% from $928.7 million. Operating income was $60.69 million in the quarter, up 3.1% from $58.86 million. For the full year, operating income was $261.60 million, up 24.6% from $209.88 million. Operating margin was 23.7% in the quarter, down from 24.7% a year earlier. Full year operating margin expanded to 25.1% from 22.6%. Net income was $48.02 million in the quarter, down 1.5% from $48.74 million. Full year net income was $218.36 million, up 23.7% from $176.57 million. Full year diluted EPS was $3.51, up 24.5% from $2.82.
Cash generation remained a strength. Operating cash flow was $104.70 million in the quarter, up 18.5% from $88.36 million. For the full year, operating cash flow was $295.00 million, up 19.8% from $246.22 million. Capital expenditures were $3.13 million in the quarter, up 58.9% from $1.97 million. Full year capital expenditures were $8.68 million, up 83.4% from $4.73 million. Deferred revenue stood at $277.97 million at December 31, 2024, up 16.9% from $237.79 million a year earlier. Remaining performance obligations were $1.80 billion, up 28.6% from $1.40 billion. Foreign exchange movements adversely impacted RPO by approximately $33 million compared to September 30, 2024. Management highlighted strong bookings and solid demand for cloud solutions.
Non-GAAP results showed similar momentum. Adjusted operating income was $90.3 million in the fourth quarter compared to $76.8 million a year earlier. Adjusted diluted EPS was $1.17 compared to $1.03. For the full year, adjusted operating income was $361.8 million compared to $281.5 million, and adjusted diluted EPS was $4.72 compared to $3.74. For full year 2025, Manhattan Associates guides revenue of $1,060 million to $1,070 million, representing 2% to 3% growth. The company guides GAAP operating margin of 22.3% to 22.9% and adjusted operating margin of 33.0% to 33.5%. GAAP EPS guidance is $3.05 to $3.15, down 13% to 10%. Adjusted EPS guidance is $4.45 to $4.55, down 6% to 4%. In January 2025, the company eliminated about 100 positions to align services capacity with customer demand affected by short-term macro-economic uncertainty. It expects to record pre-tax restructuring expense in the first quarter of 2025. An unusual health insurance claim also affected results.
Management remains cautious about the global economy. The company sees risks from inflation, retail sector disruption, delays in product development, competitive and pricing pressures, software errors and information technology failures, security breaches, product implementation challenges, and global instability including the wars in Ukraine and the Middle East. Sales cycles for large cloud subscriptions could be extended. Days sales outstanding was 74 days at December 31, 2024, compared to 69 days at September 30, 2024. The company repurchased 155,444 shares for $43.5 million in the fourth quarter and 986,555 shares for $241.6 million in 2024. In January 2025, the board raised the share repurchase authority to $100.0 million. Manhattan Associates has no debt and no credit facilities. Cloud infrastructure contractual obligations are approximately $239.7 million over the next 6 years. Operating lease obligations total $80.317 million. The company expects existing cash to fund its priorities.
The quarter showed a business with growing revenue and strong cash flow, but also margin pressure in the fourth quarter and a cautious outlook for 2025. Full year operating margin improved, yet fourth quarter operating margin slipped. Net income declined slightly in the quarter even as full year net income rose. The guidance calls for slower revenue growth and lower GAAP EPS in 2025. Management's restructuring and caution on macro conditions suggest the company is preparing for a more uncertain demand environment. RPO growth and deferred revenue growth provide some visibility into future revenue, though foreign exchange remains a headwind.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $255.8M | $266.7M | -4.1% | $238.3M | +7.4% |
| Gross profit | $142.8M | $148.0M | -3.5% | $131.5M | +8.6% |
| Gross margin | 55.8% | 55.5% | +0.3 pp | 55.2% | +0.6 pp |
| Research & development | $33.0M | $34.3M | -3.9% | $31.3M | +5.3% |
| Sales & marketing | $20.3M | $16.6M | +22.4% | $20.2M | +0.5% |
| General & administrative | $27.2M | $20.3M | +33.9% | $19.6M | +38.6% |
| Total operating expenses | $195.1M | $191.6M | +1.8% | $179.4M | +8.8% |
| Operating income (loss) | $60.7M | $75.1M | -19.2% | $58.9M | +3.1% |
| Operating margin | 23.7% | 28.2% | -4.4 pp | 24.7% | -1.0 pp |
| Net income (loss) | $48.0M | $63.8M | -24.7% | $48.7M | -1.5% |
| Net margin | 18.8% | 23.9% | -5.2 pp | 20.5% | -1.7 pp |
| Diluted EPS | $0.77 | $1.03 | -$0.26 | $0.78 | -$0.01 |
Risks
MD&A remains cautious about the global economy and says geopolitical and economic volatility likely will continue to shape customers' and prospects' enterprise software buying decisions. It also notes that current sales cycles for large cloud subscriptions in target markets could be extended.
MD&A discloses that customers experienced budgetary constraints during the second half of 2024 which negatively impacted professional services revenue related to cloud subscriptions. Services revenue was 51% of total revenue in 2024, and continued budget tightening could pressure implementation and services growth.
Revenue depends on cloud subscriptions and related professional services; cloud subscriptions were 32% of total revenue in 2024 and 96% of total cloud and software license revenue. If customers discontinue cloud subscriptions or reduce professional services scope, revenue could decrease significantly.
Cloud solutions rely on third-party data center providers, and failures, defects, delays, interruptions, higher renewal costs, or industry consolidation could disrupt services and hurt profitability. The risk factor states providers have no obligation to renew agreements on commercially reasonable terms.
The filing newly details generative AI risks, including potential difficulty obtaining U.S. copyright or other IP rights for code developed using AI tools, customer reluctance in regulated industries to adopt AI features, incomplete or inaccurate AI outputs, and evolving regulations such as the EU AI Act and Colorado AI Act.
The largest market, retail, is undergoing significant disruption driven by digital commerce, causing traditional retailers to evaluate store networks and costs and potentially delay purchase decisions. Extended sales cycles for large cloud subscriptions could materially affect revenue and results.
Intense competition from ERP and supply chain vendors such as Oracle, SAP, Infor, and Blue Yonder/Panasonic could force price reductions, fewer customer orders, reduced margins, and loss of market share. The company may need to modify pricing models due to price competition.
Success depends on executives and key technical and sales personnel, and competition for software engineers and sales executives may increase compensation costs that are not offset by revenue. Immigration restrictions may hinder hiring or retention of foreign nationals, who are a significant part of the U.S. professional workforce.
International revenue was approximately $346.2 million, or 33% of total revenue, in 2024, exposing the company to foreign laws, tariffs, adverse tax treatment, and currency fluctuations. Its large development center in Bangalore, India, has no natural in-market revenue hedge to mitigate currency risk to operating expenses.
SaaS KPIs
All quarters →Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from MANHATTAN ASSOCIATES INC's SEC filings for Q4 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 2, 2026.