Manhattan Associates (MANH) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $263 million, up 3% year-over-year, driven by 21% cloud revenue growth and a significant license deal.

• Adjusted diluted EPS rose to $1.19, up 16% year-over-year; GAAP EPS was $0.85, nearly flat.

• Leadership transition to new CEO Eric Clark completed, with continued focus on innovation and customer success.

• Company recognized as Google Cloud Business Applications Partner of the Year for Supply Chain and Logistics.

• RPO bookings increased 25% year-over-year, reflecting robust demand for cloud solutions.

Financial highlights

• Cloud revenue grew 21% to $94.3 million; services revenue declined 8% to $121.1 million; license revenue surged 231% to $9.3 million.

• Adjusted operating profit was $91.3 million, with a 34.8% adjusted operating margin, up 340 basis points year-over-year.

• Operating cash flow increased 37% to $75.3 million; free cash flow margin was 28%.

• Cash and cash equivalents at quarter-end were $205.9 million, with zero debt.

• Americas revenue was $194.6 million (-1% YoY), EMEA $55.5 million (+19% YoY), APAC $12.6 million (+9% YoY).

Outlook and guidance

• 2025 revenue guidance: $1.06–$1.07 billion, with adjusted operating margin midpoint of 33.25%.

• Adjusted EPS outlook raised to $4.54–$4.64; GAAP EPS guidance: $3.06–$3.16.

• Cloud revenue expected at $405–$410 million; services revenue at $494–$500 million.

• Maintenance revenue expected to decline 14% at midpoint due to cloud migration.

• Tax rate expected at 21%; diluted share count at 61 million.