Key Takeaways
- Total revenue grew to $265.3 million, surpassing management's expectations.
- Cloud subscription revenue increased by 35% year-over-year.
- Adjusted EPS climbed to $1.18 from $0.88 in Q2 2023.
Manhattan Associates (MANH -0.33%), a provider of supply chain and omnichannel commerce solutions, released its Q2 2024 earnings results on July 23. The company reported notable revenue and earnings growth, surpassing both prior year results and management's expectations. Consolidated total revenue reached $265.3 million, compared to the estimated $256.5 million, and cloud subscription revenue showed a significant increase, aligning with the company's strategic shift toward a Software as a Service (SaaS) model.
| DATA LABEL | Q2 2024 RESULT | Q2 2023 RESULT | % CHANGE QOY |
|---|---|---|---|
| Total Revenue | $265.3 million | $231.0 million | 14.8% |
| Cloud Subscription Revenue | $82.4 million | $60.9 million | 35.3% |
| GAAP Diluted EPS | $0.85 | $0.63 | 35.0% |
| Non-GAAP Adjusted EPS | $1.18 | $0.88 | 34.1% |
| GAAP Operating Income | $68.2 million | $50.5 million | 35.0% |
Source: 2024-04-23 earnings report.
Manhattan Associates' Business Model
Manhattan Associates offers supply chain management, omnichannel commerce, and inventory management services.
Notable Developments This Quarter
Manhattan Associates noted several achievements in Q2 2024. Total revenue grew to $265.3 million, an increase from $231.0 million in Q2 2023. A surge in cloud subscription revenue to $82.4 million from $60.9 million the previous year was a factor.
Meanwhile, GAAP diluted earnings per share (EPS) rose to $0.85 from $0.63 in Q2 2023. The non-GAAP adjusted EPS also showed notable growth, reaching $1.18 compared to $0.88 in the prior year’s quarter.
GAAP operating income was $68.2 million, up from $50.5 million in Q2 2023. Non-GAAP adjusted operating income was $92.9 million, compared to $68.4 million the previous year.
The company's operating cash flow increased to $73.3 million from $40.6 million in Q2 2023.
Also, Manhattan Associates bought back 342,807 shares worth $75.0 million.
Looking Ahead
For the remainder of 2024, Manhattan Associates revised its full-year guidance upward. The revised expectations include total revenue in the range of $1.036 billion to $1.044 billion, reflecting a 12% year-over-year increase. The company also expects GAAP operating margins to be between 22.8% and 23.1%.
The updated guidance for GAAP EPS is $3.08 to $3.16, representing 9% to 12% growth. Adjusted EPS is projected to be between $4.22 and $4.30, translating to growth of 13% to 15%.
