Q4 2024 Manhattan Associates Inc Earnings Call Transcript
Key Points
- Manhattan Associates Inc (MANH) surpassed the $1 billion total revenue milestone in 2024, achieving new records in RPO, total revenue, operating profit, free cash flow, and earnings per share.
- Q4 2024 was a record quarter with revenue increasing by 7% to $256 million, highlighted by 26% growth in cloud revenue.
- The company achieved a 25% increase in remaining performance obligation (RPO) to $1.8 billion, indicating strong future revenue potential.
- Manhattan Associates Inc (MANH) has a strong pipeline with a 70% win rate and significant opportunities for sustainable future growth.
- The company is committed to innovation, investing $138 million in research and development in 2024, which is expanding its total addressable market.
- Approximately 10% of customers with in-flight implementations have reduced their planned services work for the upcoming year, impacting services revenue.
- Services revenue is expected to trough in Q1 2025 due to deal pushes, reduced customization, and higher partner utilization.
- Foreign exchange headwinds have impacted RPO growth and are expected to continue affecting financial performance in 2025.
- The company anticipates a reduction in services revenue for 2025, which could create some financial volatility.
- Despite strong software demand, there is sluggishness in the services segment, partly due to budgetary constraints among customers.
Good afternoon. My name is Julian Bell, and I will be your conference facilitator for today. At this time, I would like to welcome everyone to Manhattan Associates Q4 2024 Earnings Conference Call. (Operator Instructions) As a reminder, ladies and gentlemen, this call is being recorded today, January 28, 2025.
I would now like to introduce you to our host, Mr. Michael Bauer, Head of Investor Relations of Manhattan Associates. Mr. Bauer, you may begin your conference.
Great. Thank you, Julian, and good afternoon, everyone. Welcome to Manhattan Associates 2024 Fourth Quarter Earnings Call. I will review our cautionary language and then turn the call over to Eddie Capel, our CEO. During this call, including the question-and-answer session, we may make forward-looking statements regarding future events or the future financial fulfillment of Manhattan Associates.
You're cautioned that these forward-looking statements involve risks and uncertainties, are not guarantees of
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