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%), while GAAP EPS was $0.85, nearly flat year-over-year.

• CEO transition completed, with new leadership focused on innovation and growth.

• 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 34.7% margin, up 340 basis points year-over-year.

• Operating cash flow increased 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

• Full-year 2025 revenue guidance is $1.06–$1.07 billion, with adjusted operating margin at 33.0–33.5%.

• Full-year adjusted EPS raised to $4.54–$4.64; GAAP EPS to $3.06–$3.16.

• Cloud revenue for 2025 expected at $405–$410 million; services at $494–$500 million.

• Maintenance revenue expected to decline 14% to $118–$120 million due to cloud migration.

• Guidance excludes equity-based compensation, unusual health insurance claim, and restructuring expense.