Manhattan Associates (MANH) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 and first half 2024 results, with total revenue up 15% year-over-year to $265.3M, driven by strong cloud and services growth, and exceeding expectations.

• Cloud revenue grew 35% to $82.4M, now 31% of total revenue, reflecting customer migration to cloud solutions.

• Adjusted EPS rose 34% to $1.18, and GAAP diluted EPS increased to $0.85 from $0.63 in Q2 2023.

• Robust demand, high customer satisfaction, and continued R&D investment are driving technological leadership.

• RPO bookings increased 29% year-over-year, reflecting strong demand.

Financial highlights

• Q2 2024 revenue was $265.3M, up 15% year-over-year; six-month revenue was $519.9M, up 15%.

• Cloud revenue totaled $82.4M in Q2 (up 35%); six-month cloud revenue was $160.4M (up 36%).

• Adjusted operating profit was $92.9M in Q2 (up from $68.4M); adjusted operating margin was 35%.

• Q2 operating cash flow was $73.3M, with $128.0M for the first half; ended Q2 with $202.7M in cash and no debt.

• Share repurchases totaled $75M in Q2 and $148.4M year-to-date.

Outlook and guidance

• 2024 full-year revenue guidance raised to $1.036–$1.044B, representing 12% growth; adjusted EPS guidance raised to $4.22–$4.30.

• Adjusted operating margin midpoint increased to 32.1%; GAAP operating margin expected at 22.8%–23.1%.

• Q3 revenue targeted at $261–$265M; Q4 midpoint at $257M.

• Management remains cautious on the global economy but expects continued growth driven by cloud demand and digital transformation.

• No anticipated borrowing needs for 2024; priority remains on R&D and share repurchases.