Yahoo Finance Manhattan Associates Inc (MANH) Q1 2024 Earnings Call Transcript Highlights: Robust Growth and ...
Total Revenue: $255 million, up 15% year-over-year.
Cloud Revenue: $78 million, up 36% year-over-year.
Services Revenue: $132 million, up 14% year-over-year.
Adjusted Operating Profit: $80 million, with a margin of 31.3%.
Adjusted Earnings Per Share (EPS): $1.03, up 29% year-over-year.
GAAP Earnings Per Share (EPS): $0.86, up 39% year-over-year.
Operating Cash Flow: $55 million.
Free Cash Flow Margin: 21%.
Adjusted EBITDA Margin: 32%.
Deferred Revenue: $265 million, up 21% year-over-year.
Cash and Cash Equivalents: $208 million, with zero debt.
Share Repurchases: $73 million invested in the quarter.
RPO (Remaining Performance Obligations): $1.5 billion, up 31% year-over-year.
Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you provide an update on the adoption of cloud WMS, including any statistics on sites up and running or conversations with hesitant customers? A: (Eddie Capel, President, CEO & Director) - Yes, the live site count for cloud WMS is about 225. There's strong momentum with no reticence observed in moving to the cloud, both from new and existing customers. Some customers are aggressively migrating, with large automated facilities going live more than once a month on a global scale.
Q: How is the zero downtime feature of your software influencing customer conversations about adopting additional solutions like TMS or RMS? A: (Eddie Capel, President, CEO & Director) - The zero downtime feature is accelerating conversations about unified commerce. Customers like Schneider Electric are purchasing both WMS and TMS simultaneously, indicating a strong trend towards unified supply chain execution. Conversations typically involve discussions about both WMS and TMS, even if the purchase isn't simultaneous.
Q: Can you comment on the free cash flow expectations for Q2 and the full year? A: (Dennis B. Story, Executive VP, CFO & Treasurer) - Q2 will see a rebound from Q1, with a free cash flow margin of 25% to 26%. For the full year, the margin might slightly increase from this range, incorporating a bit of conservatism.
Q: For global supply chain projects that span multiple distribution centers, what is the typical project timeline? A: (Eddie Capel, President, CEO & Director) - A typical project involving unified supply chain execution across 30 to 50 distribution centers would likely take around three years, possibly longer depending on the project's size and scope.
Q: How has the customer feedback been for the point-of-sale solutions in early 2024? A: (Eddie Capel, President, CEO & Director) - The feedback has been positive, with successful implementations and a new significant customer win. The point-of-sale solution is proving its merit independently, attracting new customers who have not previously engaged with other Manhattan Associates' products.
Q: Could you provide an update on the Shopify partnership, particularly regarding product integration efforts? A: (Eddie Capel, President, CEO & Director) - The partnership with Shopify is progressing well, with both teams collaborating closely on building standard integrations. This partnership aims to align with a potential wave of e-commerce platform replacements, leveraging Manhattan Associates' enterprise-class order management system.
Q: What are the opportunities for partnering with other companies to leverage customer data more effectively as more workflows and data move to the cloud? A: (Eddie Capel, President, CEO & Director) - Partnering with companies like Google enhances our ability to leverage data for analytics and AI, providing significant benefits to our customers. These partnerships help in monetizing the data and enhancing the functionalities of our systems.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
