Manhattan Associates (MANH) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024, surpassing $1 billion in total revenue, with new highs in RPO, operating profit, free cash flow, and EPS, driven by strong demand and 25% year-over-year RPO bookings growth.

• Q4 revenue grew 7% year-over-year to $256 million, with cloud revenue up 26% and adjusted EPS up 14% to $1.17.

• Cloud subscription revenue and adjusted EPS both saw double-digit growth year-over-year.

• Entering 2025 with strong momentum, high customer satisfaction, and a robust pipeline, but cautious on macroeconomic headwinds impacting services.

Financial highlights

• Full-year 2024 revenue reached $1.042 billion, up 12% year-over-year; cloud revenue totaled $337.2 million, up 32%.

• Q4 adjusted operating profit was $90.3 million (35.3% margin), up over 300 bps year-over-year; full-year adjusted operating profit was $362 million (34.7% margin), up 440 bps.

• Q4 operating cash flow rose 18% to $105 million; full-year operating cash flow was $295 million.

• RPO at year-end was $1.78 billion, up 25% year-over-year and 6% sequentially.

• $242 million in share repurchases in 2024; year-end cash balance of $266 million and no debt.

Outlook and guidance

• 2025 revenue guidance: $1.06–$1.07 billion (2–3% growth year-over-year); RPO targeted at $2.11–$2.15 billion (20% growth at midpoint).

• Cloud revenue expected at $405–$410 million (21% growth at midpoint); services revenue $494–$500 million, with sequential improvement through the year.

• Adjusted operating margin expected at 33–33.5%; adjusted EPS guidance of $4.45–$4.55, with GAAP EPS $3.05–$3.15 due to one-time items.

• Cloud subscription revenue projected to grow 20%+ annually for several years, surpassing services revenue by end of 2026.

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