Q1 2025 Manhattan Associates Inc Earnings Call Transcript
Key Points
- Manhattan Associates Inc (MANH) reported better-than-expected top- and bottom-line results for Q1 2025, with a 21% growth in Cloud revenue.
- The company achieved a 25% year-over-year increase in Remaining Performance Obligations (RPO), reaching approximately $1.9 billion.
- Manhattan Associates Inc (MANH) was named Google Cloud's Business Applications Partner of the Year for Supply Chain and Logistics, highlighting its innovation and customer success.
- The company launched a new product, Enterprise Promise and Fulfill, designed to optimize B2B order promising and fulfillment, enhancing customer experiences.
- Manhattan Associates Inc (MANH) maintained a strong competitive win rate of about 70%, with 50% of new Cloud bookings coming from net new logos.
- The macro environment remains uncertain, with potential impacts from tariffs and global economic conditions, leading to cautious near-term outlooks.
- Services revenue declined by 8% year-over-year, reflecting customer budgetary constraints and shifting services work to future periods.
- FX volatility posed a $2 million headwind to Q1 total revenue, although it provided a $14 million tailwind to sequential RPO growth.
- The company remains cautious about near-term Services revenue growth due to the flexibility of time and materials contracts and the changing tariff environment.
- The average contract duration remains at 5.5 to 6 years, with some customers electing longer ramp timelines, potentially delaying revenue recognition.
Good afternoon. My name is Paul. I will be your conference facilitator, today.
At this time, I would like to welcome everyone to the Manhattan Associates' first-quarter 2025 earnings conference call.
(Operator Instructions)
As a reminder, ladies and gentlemen, this call is being recorded today, April 22, 2025.
I would, now, like to introduce your host, Mr. Michael Bauer, Head of Investor Relations of Manhattan Associates. Mr. Bauer, you may begin your conference.
Great. Thanks, Paul. Good afternoon everyone. Welcome to Manhattan Associates' 2025 first-quarter earnings call.
I will review our cautionary language. And then, turn the call over to our Executive Vice Chairman, Eddie Capel, for some brief opening commentary, before he hands it off to our President and Chief Executive Officer, Eric Clark.
During this call, including the Q&A session, we may make forward-looking statements regarding future events of Manhattan
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