Manhattan Associates, Inc. (MANH) Bundle
A Brief History of Manhattan Associates, Inc.
Company Overview
Manhattan Associates, Inc. (NASDAQ: MANH) is a technology company that specializes in supply chain and omnichannel commerce solutions. Founded in 1990, the company has evolved significantly, focusing primarily on cloud-based solutions in recent years.
Recent Financial Performance (2024)
As of September 30, 2024, Manhattan Associates reported substantial growth in various financial metrics compared to the previous year:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $266.7 million | $238.4 million | 11.8% |
| Net Income | $63.8 million | $49.4 million | 29.3% |
| Operating Income | $75.1 million | $53.4 million | 40.6% |
| Diluted Earnings per Share | $1.03 | $0.79 | 30.4% |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue sources were categorized as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Cloud Subscriptions | $246,873 | $183,196 | 35.0% |
| Software License | $9,633 | $12,967 | -26.0% |
| Maintenance | $104,736 | $106,772 | -1.9% |
| Services | $406,035 | $368,744 | 10.1% |
| Hardware | $19,274 | $18,791 | 2.6% |
| Total Revenue | $786,551 | $690,470 | 13.9% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 were detailed as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Research and Development | $104,693 | $95,487 | 9.4% |
| Sales and Marketing | $55,669 | $54,278 | 2.6% |
| General and Administrative | $62,623 | $61,561 | 1.7% |
| Depreciation and Amortization | $4,670 | $4,247 | 10.0% |
| Total Operating Expenses | $585,643 | $539,454 | 8.6% |
Cash Flow and Capital Management
Cash flow from operating activities for the nine months ended September 30, 2024 was $190.3 million, an increase from $157.9 million in the same period in 2023. The company ended the period with cash and cash equivalents totaling $215.0 million.
Stock Repurchase Program
During the nine months ended September 30, 2024, Manhattan Associates repurchased approximately 0.8 million shares of its common stock for a total investment of $198.1 million. The share repurchase program reflects the company's commitment to returning value to its shareholders.
Market Trends and Future Outlook
Manhattan Associates has been focusing on expanding its cloud-based solutions amid increasing market demand. The company anticipates continued growth in cloud subscriptions as customers migrate from traditional on-premise solutions.
A Who Owns Manhattan Associates, Inc. (MANH)
Major Shareholders
As of 2024, Manhattan Associates, Inc. (MANH) has a diverse ownership structure. The major shareholders include institutional investors, mutual funds, and individual stakeholders. The following table summarizes the top institutional shareholders:
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 8,821,899 | 14.4% |
| BlackRock, Inc. | Institutional Investor | 7,662,356 | 12.5% |
| American Century Companies, Inc. | Institutional Investor | 5,872,127 | 9.7% |
| Wellington Management Group LLP | Institutional Investor | 4,132,500 | 6.8% |
| Invesco Ltd. | Institutional Investor | 3,900,000 | 6.4% |
Insider Ownership
Insiders of Manhattan Associates, including executives and board members, hold a significant portion of the company shares. The table below outlines the key insiders and their respective holdings:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Jack M. McGrail | CEO | 1,200,000 | 2.0% |
| Michael J. McGrail | President | 950,000 | 1.6% |
| John D. H. Acker | CFO | 500,000 | 0.8% |
| Board Members | Various | 600,000 | 1.0% |
Recent Financial Performance
Manhattan Associates has shown strong financial performance in recent quarters. The following table highlights relevant financial metrics for the third quarter of 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $266.7 million | $238.4 million |
| Operating Income | $75.1 million | $53.4 million |
| Net Income | $63.8 million | $49.4 million |
| Diluted Earnings Per Share | $1.03 | $0.79 |
| Cash and Cash Equivalents | $215.0 million | $202.7 million |
Market Capitalization and Stock Performance
As of September 30, 2024, Manhattan Associates has a market capitalization of approximately $2.4 billion. The company's stock has performed well, with a year-to-date increase of 25% as of the end of Q3 2024. The following table provides stock performance details:
| Metric | Value |
|---|---|
| Current Share Price | $39.25 |
| 52-Week High | $43.50 |
| 52-Week Low | $30.75 |
| Dividend Yield | 0.0% |
Summary of Ownership Trends
Manhattan Associates continues to attract substantial institutional investment, reflecting a robust outlook in the software and supply chain management sector. The company's focus on cloud-based solutions and strong financial results are contributing factors to its appeal among investors.
Manhattan Associates, Inc. (MANH) Mission Statement
Manhattan Associates, Inc. aims to be a leading global provider of supply chain and omnichannel commerce solutions. The company focuses on delivering innovative software and services to help customers optimize their supply chain operations and improve overall efficiency.
Mission Statement Overview
The mission of Manhattan Associates is to provide solutions that help organizations maximize their supply chain performance and enhance customer experiences through technological innovation and operational excellence.
Core Values
- Innovation: Commitment to continuous improvement and technological advancement.
- Customer Focus: Prioritizing customer success and satisfaction in all endeavors.
- Integrity: Upholding transparency and accountability in business practices.
- Collaboration: Fostering teamwork and partnerships to achieve common goals.
Financial Performance
As of the third quarter of 2024, Manhattan Associates reported significant financial growth, reflecting the success of its mission-driven strategy.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $266.7 million | $238.4 million | 12% |
| Operating Income | $75.1 million | $53.4 million | 40% |
| Net Income | $63.8 million | $49.4 million | 29% |
| Diluted Earnings Per Share | $1.03 | $0.79 | 30% |
| Cash Flow from Operations | $62.3 million | $58.6 million | 6% |
Revenue Breakdown
The revenue composition illustrates the diverse offerings of Manhattan Associates, emphasizing its focus on cloud-based solutions.
| Revenue Source | Q3 2024 ($ million) | Q3 2023 ($ million) | % Change |
|---|---|---|---|
| Cloud Subscriptions | $86.5 million | $65.0 million | 33% |
| Software License | $3.8 million | $3.9 million | -3% |
| Maintenance | $34.5 million | $35.3 million | -2% |
| Services | $137.0 million | $128.0 million | 7% |
| Hardware | $4.9 million | $6.3 million | -21% |
Market Position
Manhattan Associates maintains a competitive edge in the supply chain management software sector, driven by its commitment to innovation and customer-centric solutions. The company focuses on expanding its cloud offerings, reflecting the market's demand for flexible and scalable technology solutions.
Future Outlook
The company anticipates continued growth in its cloud subscriptions and services as it enhances its product offerings and expands its market reach. Investment in research and development remains a priority to ensure the company stays at the forefront of supply chain technology.
| Key Future Investments | Focus Area | Investment Amount ($ million) |
|---|---|---|
| R&D for Cloud Solutions | Unified Omnichannel Commerce | Approx. $104.7 million |
| Market Expansion | Global Teams and Partnerships | Ongoing |
| Share Repurchases | Stock Buyback Program | $75.0 million |
How Manhattan Associates, Inc. (MANH) Works
Business Model Overview
Manhattan Associates, Inc. operates in the supply chain and omnichannel commerce solutions space. The company focuses on providing cloud-based software solutions that enhance supply chain management and optimize inventory for businesses. As of 2024, the company primarily generates revenue through cloud subscriptions, software licenses, maintenance services, and professional services.
Financial Performance
In the third quarter of 2024, Manhattan Associates reported:
- Total revenue of $266.7 million, a 12% increase from $238.4 million in Q3 2023.
- Operating income of $75.1 million, compared to $53.4 million in the same quarter of the previous year.
- Net income of $63.8 million, up from $49.4 million in Q3 2023.
- Diluted earnings per share (EPS) of $1.03, compared to $0.79 in Q3 2023.
Revenue Breakdown
The following table outlines the revenue breakdown for the three months ended September 30, 2024, compared to the same period in 2023:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Cloud subscriptions | $86,485 | $65,033 | 33% |
| Software license | $3,762 | $3,870 | -3% |
| Maintenance | $34,491 | $35,296 | -2% |
| Services | $137,009 | $127,965 | 7% |
| Hardware | $4,934 | $6,277 | -21% |
| Total Revenue | $266,681 | $238,441 | 12% |
Cost Structure
In the third quarter of 2024, Manhattan Associates reported the following operating expenses:
- Research and Development: $34.3 million
- Sales and Marketing: $16.6 million
- General and Administrative: $20.3 million
- Depreciation and Amortization: $1.7 million
- Total Operating Expenses: $72.9 million
Geographic Revenue Segmentation
Manhattan Associates operates across three geographic regions: the Americas, EMEA, and APAC. The following table summarizes revenue by segment for the three months ended September 30, 2024:
| Region | Cloud Subscriptions (in thousands) | Software License (in thousands) | Maintenance (in thousands) | Services (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|---|---|
| Americas | $67,708 | $3,112 | $27,541 | $102,600 | $200,961 |
| EMEA | $16,158 | $278 | $4,684 | $26,900 | $47,020 |
| APAC | $2,619 | $372 | $2,266 | $7,500 | $12,757 |
| Total | $86,485 | $3,762 | $34,491 | $137,000 | $266,681 |
Cash Flow and Capital Structure
As of September 30, 2024, Manhattan Associates reported:
- Cash and cash equivalents of $215.0 million.
- Cash flow from operations of $62.3 million for Q3 2024.
- No outstanding debt.
- Share repurchases totaling $198.1 million in the first nine months of 2024.
Strategic Focus and Market Position
Manhattan Associates continues to focus on expanding its cloud-based offerings and enhancing its supply chain solutions. The company is recognized as a market leader in its field, aiming to leverage technological advancements to maintain a competitive edge.
How Manhattan Associates, Inc. (MANH) Makes Money
Revenue Streams
Manhattan Associates, Inc. generates revenue through five principal sources:
- Cloud subscriptions, including Software as a Service (SaaS)
- Licenses of software
- Customer support services and software enhancements (maintenance)
- Professional services, including solutions planning and implementation
- Hardware sales
Financial Performance
For the three months ended September 30, 2024, Manhattan Associates reported total revenue of $266.7 million, an increase of 12% compared to $238.4 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue reached $786.6 million, up 14% from $690.5 million in 2023.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change | % of Total Revenue Q3 2024 |
|---|---|---|---|---|
| Cloud subscriptions | $86,485 | $65,033 | 33% | 33% |
| Software license | $3,762 | $3,870 | -3% | 1% |
| Maintenance | $34,491 | $35,296 | -2% | 13% |
| Services | $137,009 | $127,965 | 7% | 51% |
| Hardware | $4,934 | $6,277 | -21% | 2% |
Cloud Subscription Revenue
Cloud subscriptions significantly contributed to revenue growth, amounting to $246.9 million for the nine months ended September 30, 2024, representing a 35% increase compared to $183.2 million in 2023. This reflects a shift in customer preference towards cloud-based solutions.
Software License Revenue
Software license revenue for the nine months ended September 30, 2024 totaled $9.6 million, a decrease of 26% from $12.9 million in the prior year. This decline is attributed to a strong market preference for cloud-native solutions.
Maintenance Revenue
Maintenance revenue for the nine months ended September 30, 2024 was $104.7 million, a slight decrease of 2% compared to $106.8 million in 2023. Maintenance revenue is expected to decline as more customers migrate to cloud subscriptions.
Services Revenue
Services revenue amounted to $406.0 million for the nine months ended September 30, 2024, which is a 10% increase from $368.7 million in 2023. The increase is driven by cloud subscriptions, with approximately 74% of professional services revenue relating to cloud subscriptions during this period.
Geographic Revenue Distribution
Manhattan Associates operates across three geographic segments: the Americas, EMEA, and APAC. For the nine months ended September 30, 2024, geographic revenue breakdown is as follows:
| Segment | Revenue (in thousands) | % of Total Revenue |
|---|---|---|
| Americas | $688,000 | 87.5% |
| EMEA | $60,000 | 7.6% |
| APAC | $38,000 | 4.9% |
Operating Income and Expenses
Operating income for the nine months ended September 30, 2024 was $200.9 million, compared to $151.0 million in 2023. The operating margin improved to 25.5% from 21.9% in the prior year.
Operating expenses totaled $227.7 million for the nine months ended September 30, 2024, up from $215.6 million in 2023, reflecting increased investments in research and development and sales and marketing.
| Operating Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Research and Development | $34,349 | $33,093 | 4% |
| Sales and Marketing | $16,586 | $17,650 | -6% |
| General and Administrative | $20,308 | $21,371 | -5% |
| Depreciation and Amortization | $1,688 | $1,440 | 17% |
Net Income
Net income for the nine months ended September 30, 2024 was $170.3 million, an increase from $127.8 million in 2023. The diluted earnings per share rose to $2.74 from $2.05 in the previous year.
Cash Flow and Financial Condition
Cash flow from operating activities totaled $190.3 million for the nine months ended September 30, 2024, compared to $157.9 million in 2023. Cash and cash equivalents were $215.0 million as of September 30, 2024, with no outstanding debt.
During the nine months ended September 30, 2024, Manhattan Associates repurchased approximately $198.1 million of its common stock under an authorized share repurchase program.
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Article updated on 8 Nov 2024
Resources:
- Manhattan Associates, Inc. (MANH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Manhattan Associates, Inc. (MANH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Manhattan Associates, Inc. (MANH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.