Manhattan Associates Reports Record Fourth Quarter and Full Year Results

RPO Increased 126% over Prior Year on Strong Demand

ATLANTA, Feb. 01, 2022 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $171.5 million for the fourth quarter ended December 31, 2021. GAAP diluted earnings per share for both Q4 2021 and Q4 2020 was $0.32. Non-GAAP adjusted diluted earnings per share for Q4 2021 was $0.48 compared to $0.45 in Q4 2020.

“We ended the year with strong momentum, posting our third consecutive all-time record revenue quarter, which again exceeded our expectations,” said Manhattan Associates president and CEO Eddie Capel. “Our Manhattan Active® solutions continue to elevate our leadership position, and market demand for our unified supply chain commerce platform is increasing across the globe, leading to RPO growth of 126%.”

“We enter 2022 very excited about our opportunity to help our customers digitally transform their supply chains and enable success. While a turbulent global macro environment persists, our business momentum continues to accelerate,” Mr. Capel concluded.

FOURTH QUARTER 2021 FINANCIAL SUMMARY:

• Consolidated total revenue was $171.5 million for Q4 2021, compared to $147.1 million for Q4 2020.
  
  
  • Cloud subscription revenue was $34.8 million for Q4 2021, compared to $23.0 million for Q4 2020.
    
    
  • License revenue was $11.9 million for Q4 2021, compared to $9.6 million for Q4 2020.
    
    
  • Services revenue was $81.6 million for Q4 2021, compared to $70.9 million for Q4 2020.
    
    
• GAAP diluted earnings per share was $0.32 for both Q4 2021 and Q4 2020.
  
  
• Adjusted diluted earnings per share, a non-GAAP measure, was $0.48 for Q4 2021, compared to $0.45 for Q4 2020.
  
  
• GAAP operating income was $27.1 million for Q4 2021, compared to $28.2 million for Q4 2020.
  
  
• Adjusted operating income, a non-GAAP measure, was $39.1 million for Q4 2021, compared to $37.6 million for Q4 2020.
  
  
• Cash flow from operations was $40.1 million for Q4 2021, compared to $38.0 million for Q4 2020. Days Sales Outstanding was 67 days at December 31, 2021, compared to 63 days at September 30, 2021.
  
  
• Cash totaled $263.7 million at December 31, 2021, compared to $246.4 million at September 30, 2021.
  
  
• During the three months ended December 31, 2021, the Company repurchased 128,374 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $20.1 million. In January 2022, our Board of Directors approved raising the Company’s remaining share repurchase authority to an aggregate of $50.0 million of our common stock.
  

FULL YEAR 2021 FINANCIAL SUMMARY:

• Consolidated total revenue for the twelve months ended December 31, 2021, was $663.6 million, compared to $586.4 million for the twelve months ended December 31, 2020.
  
  
  • Cloud subscription revenue was $122.2 million for the twelve months ended December 31, 2021, compared to $79.8 million for the twelve months ended December 31, 2020.
    
    
  • License revenue was $37.1 million for the twelve months ended December 31, 2021, compared to $38.3 million for the twelve months ended December 31, 2020. 
    
    
  • Services revenue was $334.8 million for the twelve months ended December 31, 2021, compared to $303.6 million for the twelve months ended December 31, 2020.
    
    
• GAAP diluted earnings per share for the twelve months ended December 31, 2021, was $1.72, compared to $1.36 for the twelve months ended December 31, 2020.  
  
  
• Adjusted diluted earnings per share, a non-GAAP measure, was $2.23 for the twelve months ended December 31, 2021, compared to $1.76 for the twelve months ended December 31, 2020.
  
  
• GAAP operating income was $134.3 million for the twelve months ended December 31, 2021, compared to $114.1 million for the twelve months ended December 31, 2020.
  
  
• Adjusted operating income, a non-GAAP measure, was $177.9 million for the twelve months ended December 31, 2021, compared to $147.8 million for the twelve months ended December 31, 2020. 
  
  
• Cash flow from operations was $185.2 million for the twelve months ended December 31, 2021, compared to $140.9 million for the twelve months ended December 31, 2020.
  
  
• During the twelve months ended December 31, 2021, the Company repurchased 709,200 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $100.0 million.

2022 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2022:

		Guidance Range - 2022 Full Year
	($'s in millions, except operating margin and EPS)	$ Range								% Growth Range
	Total revenue	$700				$715				5	%		8	%
	Operating Margin:
	GAAP operating margin		14.9%				16.1%
	Equity-based compensation		8.1%				7.9%
	Adjusted operating margin(1)		23.0%				24.0%
	Diluted earnings per share (EPS):
	GAAP EPS	$1.31				$1.43				-25	%		-18	%
	Equity-based compensation		0.74				0.74
	Excess tax benefit on stock vesting(2)		(0.07)				(0.07)
	Adjusted EPS(1)	$1.98				$2.10				-11	%		-6	%
	(1)  Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based compensation and acquisition-related costs, and the related income tax effects of those items if applicable.
	(2)  Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2022.

Manhattan Associates currently intends to publish in each quarterly earnings release certain expectations with respect to future financial performance. Those statements, including the guidance provided above and guideposts in the supplemental information below, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below. We note in particular that the severity, duration and ultimate impact of the COVID-19 pandemic are difficult to predict at this time. In addition, those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.

Manhattan Associates will make this earnings release and published expectations available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance and guideposts, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

Manhattan Associates’ conference call regarding its fourth quarter and twelve months ended December 31, 2021, financial results will be held today, February 1, 2022, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software.

Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 3361948 or via the web at ir.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ first quarter 2022 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

Manhattan Associates provides adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and twelve months ended December 31, 2021.

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation, acquisition-related costs and the amortization of these costs, and (from time to time) restructuring charges – all net of income tax effects. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers. 

Manhattan Associates designs, builds and delivers leading edge cloud and on-premise solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2022 Guidance” and “Guideposts,” any statements about the future effect of the COVID-19 pandemic on our business, customers or the global economy, our business prospects following the pandemic, statements we make about market adoption of our cloud-based solution and other statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate,” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: the risk that the duration and severity of the COVID-19 pandemic, and its ultimate effects on the global economy, our customers and our business, may be worse than expected; risks related to transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription/cloud-based software-as-a service model; disruption in the retail sector; the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
	Three Months Ended December 31,								Year Ended December 31,
	2021				2020				2021				2020
	(unaudited)				(unaudited)
Revenue:
Cloud subscriptions	$	34,761			$	23,003			$	122,195			$	79,830
Software license		11,948				9,635				37,070				38,284
Maintenance		37,471				38,801				145,841				147,748
Services		81,565				70,915				334,799				303,569
Hardware		5,749				4,728				23,738				16,941
Total revenue		171,494				147,082				663,643				586,372
Costs and expenses:
Cost of software license		507				1,221				2,309				2,894
Cost of cloud subscriptions, maintenance and services		81,124				65,611				295,518				266,993
Research and development		26,783				20,563				97,628				84,276
Sales and marketing		16,652				13,562				57,855				47,758
General and administrative		17,507				15,778				68,086				61,444
Depreciation and amortization		1,778				2,150				7,914				8,946
Total costs and expenses		144,351				118,885				529,310				472,311
Operating income		27,143				28,197				134,333				114,061
Other loss, net		(232	)			(656	)			(261	)			(285	)
Income before income taxes		26,911				27,541				134,072				113,776
Income tax provision		6,329				7,001				23,600				26,536
Net income	$	20,582			$	20,540			$	110,472			$	87,240
Basic earnings per share	$	0.33			$	0.32			$	1.74			$	1.37
Diluted earnings per share	$	0.32			$	0.32			$	1.72			$	1.36
Weighted average number of shares:
Basic		63,241				63,527				63,445				63,538
Diluted		64,224				64,484				64,323				64,333

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
		Three Months Ended December 31,								Year Ended December 31,
		2021				2020				2021				2020
Operating income		$	27,143			$	28,197			$	134,333			$	114,061
Equity-based compensation (a)			11,926				9,287				43,259				33,355
Purchase amortization (c)			-				105				264				429
Adjusted operating income (Non-GAAP)		$	39,069			$	37,589			$	177,856			$	147,845
Income tax provision		$	6,329			$	7,001			$	23,600			$	26,536
Equity-based compensation (a)			1,873				1,132				6,272				3,679
Tax benefit of stock awards vested (b)			14				(31	)			4,383				3,830
Purchase amortization (c)			-				24				65				105
Adjusted income tax provision (Non-GAAP)		$	8,216			$	8,126			$	34,320			$	34,150
Net income		$	20,582			$	20,540			$	110,472			$	87,240
Equity-based compensation (a)			10,053				8,155				36,987				29,676
Tax benefit of stock awards vested (b)			(14	)			31				(4,383	)			(3,830	)
Purchase amortization (c)			-				81				199				324
Adjusted net income (Non-GAAP)		$	30,621			$	28,807			$	143,275			$	113,410
Diluted EPS		$	0.32			$	0.32			$	1.72			$	1.36
Equity-based compensation (a)			0.16				0.13				0.58				0.46
Tax benefit of stock awards vested (b)			-			-					(0.07	)			(0.06	)
Purchase amortization (c)			-			-					-			-
Adjusted diluted EPS (Non-GAAP)		$	0.48			$	0.45			$	2.23			$	1.76
Fully diluted shares			64,224				64,484				64,323				64,333

 

(a)

Adjusted results exclude all equity-based compensation to facilitate comparison with our peers and because it typically does not require cash settlement. As explained in our Current Report on Form 8-K filed today with the SEC, we do not include that expense when assessing our operating performance. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives. The Tax Cuts and Jobs Act further increased those limitations.

 

		Three Months Ended December 31,								Year Ended December 31,
		2021				2020				2021				2020
Cost of services		$	4,390			$	2,850			$	15,159			$	10,156
Research and development			2,567				1,884				8,814				6,810
Sales and marketing			1,147				976				4,345				3,454
General and administrative			3,822				3,577				14,941				12,935
Total equity-based compensation		$	11,926			$	9,287			$	43,259			$	33,355

 

(b)		Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also exclude the related tax benefit (expense) generated upon their vesting.
(c)		Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
		December 31, 2021				December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents		$	263,706			$	204,705
Accounts receivable, net of allowance of $2,419 and $3,497 at December 31, 2021 and December 31, 2020, respectively			124,420				109,202
Prepaid expenses and other current assets			20,293				20,134
Total current assets			408,419				334,041
Property and equipment, net			13,889				17,903
Operating lease right-of-use assets			27,272				31,470
Goodwill, net			62,239				62,252
Deferred income taxes			7,650				5,760
Other assets			20,239				13,986
Total assets		$	539,708			$	465,412
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	19,625			$	17,805
Accrued compensation and benefits			53,104				41,962
Accrued and other liabilities			22,741				21,181
Deferred revenue			153,196				114,164
Income taxes payable			376				1,874
Total current liabilities			249,042				196,986
Operating lease liabilities, long-term			23,157				27,843
Other non-current liabilities			16,865				21,686
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2021 and December 31, 2020			-				-
Common stock, $.01 par value; 200,000,000 shares authorized; 63,154,494 and 63,527,186 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively			631				635
Retained earnings			269,841				236,524
Accumulated other comprehensive loss			(19,828	)			(18,262	)
Total shareholders' equity			250,644				218,897
Total liabilities and shareholders' equity		$	539,708			$	465,412

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
		Year Ended December 31,
		2021				2020
Operating activities:
Net income		$	110,472			$	87,240
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			7,914				8,946
Equity-based compensation			43,259				33,355
Loss on disposal of equipment			7				21
Deferred income taxes			(1,912	)			1,036
Unrealized foreign currency (gain) loss			(493	)			897
Changes in operating assets and liabilities:
Accounts receivable, net			(16,650	)			(6,592	)
Other assets			(6,533	)			(971	)
Accounts payable, accrued and other liabilities			12,256				(3,097	)
Income taxes			(3,667	)			1,886
Deferred revenue			40,530				18,164
Net cash provided by operating activities			185,183				140,885
Investing activities:
Purchases of property and equipment			(4,016	)			(2,730	)
Net cash used in investing activities			(4,016	)			(2,730	)
Financing activities:
Purchase of common stock			(120,418	)			(43,561	)
Net cash used in financing activities			(120,418	)			(43,561	)
Foreign currency impact on cash			(1,748	)			(567	)
Net change in cash and cash equivalents			59,001				94,027
Cash and cash equivalents at beginning of period			204,705				110,678
Cash and cash equivalents at end of period		$	263,706			$	204,705

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1.        Continuing Impact of COVID-19:

Regarding the impact of the COVID-19 pandemic, we remain cautious about the global recovery, which we expect to be protracted.

Despite the COVID-19 pandemic, our 2021 results exceeded our expectations due to solid demand for our cloud solutions. Our solutions are mission critical, supporting complex global supply chains. Favorable secular tailwinds, such as the digital transformation of businesses in manufacturing, wholesale and retail, coupled with our commitment to investing in organic innovation to deliver leading cloud supply chain, inventory and omnichannel commerce solutions, are in synergistic alignment with current market demand. That alignment is contributing to our strong financial results, higher demand and strong win rates for our solutions for the period.

We remain committed to investing in our business to drive customer success and expand our total addressable market, which we believe will position us well to achieve long-term sustainable growth and earnings.

2.        GAAP and adjusted earnings per share by quarter are as follows:

	2020										2021
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
GAAP Diluted EPS	$0.35		$0.30		$0.39		$0.32		$1.36		$0.35		$0.48		$0.57		$0.32		$1.72
Adjustments to GAAP:
Equity-based compensation	0.10		0.10		0.13		0.13		0.46		0.13		0.14		0.14		0.16		0.58
Tax benefit of stock awards vested	(0.06)		-		-		-		(0.06)		(0.06)		(0.01)		-		-		(0.07)
Purchase amortization	-		-		-		-		-		-		-		-		-		-
Adjusted Diluted EPS	$0.40		$0.40		$0.51		$0.45		$1.76		$0.43		$0.61		$0.71		$0.48		$2.23
Fully Diluted Shares	64,342		64,126		64,427		64,484		64,333		64,466		64,276		64,238		64,224		64,323

3.        Revenues and operating income by reportable segment are as follows (in thousands):

	2020										2021
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Revenue:
Americas	$123,146		$107,368		$121,168		$114,257		$465,939		$122,813		$132,308		$135,233		$135,861		$526,215
EMEA	24,313		21,558		21,721		25,990		93,582		28,434		27,190		27,402		27,548		110,574
APAC	6,444		6,704		6,868		6,835		26,851		5,603		6,616		6,550		8,085		26,854
	$153,903		$135,630		$149,757		$147,082		$586,372		$156,850		$166,114		$169,185		$171,494		$663,643
GAAP Operating Income:
Americas	$16,282		$18,984		$27,296		$18,547		$81,109		$16,116		$28,590		$29,727		$16,746		$91,179
EMEA	6,313		5,515		5,319		7,490		24,637		8,374		8,643		10,485		7,245		34,747
APAC	1,601		2,193		2,361		2,160		8,315		935		2,124		2,196		3,152		8,407
	$24,196		$26,692		$34,976		$28,197		$114,061		$25,425		$39,357		$42,408		$27,143		$134,333
Adjustments (pre-tax):
Americas:
Equity-based compensation	$7,564		$7,492		$9,012		$9,287		$33,355		$10,051		$10,709		$10,573		$11,926		$43,259
Purchase amortization	107		110		107		105		429		107		107		50		-		264
	$7,671		$7,602		$9,119		$9,392		$33,784		$10,158		$10,816		$10,623		$11,926		$43,523
Adjusted non-GAAP Operating Income:
Americas	$23,953		$26,586		$36,415		$27,939		$114,893		$26,274		$39,406		$40,350		$28,672		$134,702
EMEA	6,313		5,515		5,319		7,490		24,637		8,374		8,643		10,485		7,245		34,747
APAC	1,601		2,193		2,361		2,160		8,315		935		2,124		2,196		3,152		8,407
	$31,867		$34,294		$44,095		$37,589		$147,845		$35,583		$50,173		$53,031		$39,069		$177,856

4.        Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

	2020										2021
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Revenue	($988)		($777)		$1,165		$1,946		$1,346		$2,932		$3,209		$823		($716)		$6,248
Costs and expenses	(996)		(1,430)		291		918		(1,217)		2,000		2,442		551		(887)		4,106
Operating income	8		653		874		1,028		2,563		932		767		272		171		2,142
Foreign currency gains (losses) in other income	1,348		(193)		(913)		(639)		(397)		(287)		315		(30)		(243)		(245)
	$1,356		$460		($39)		$389		$2,166		$645		$1,082		$242		($72)		$1,897

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

	2020										2021
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Operating income	$308		$895		$601		$445		$2,249		$79		($294)		($37)		$281		$29
Foreign currency gains (losses) in other income	1,450		262		(1,165)		(381)		166		315		535		3		(9)		844
Total impact of changes in the Indian Rupee	$1,758		$1,157		($564)		$64		$2,415		$394		$241		($34)		$272		$873

5.        Other income includes the following components (in thousands):

	2020										2021
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Interest income	$68		$28		$8		($6)		$98		($15)		($10)		($9)		$102		$68
Foreign currency gains (losses)	1,348		(193)		(913)		(639)		(397)		(287)		315		(30)		(243)		(245)
Other non-operating income (expense)	4		7		14		(11)		14		9		1		(3)		(91)		(84)
Total other income (loss)	$1,420		($158)		($891)		($656)		($285)		($293)		$306		($42)		($232)		($261)

6.        Capital expenditures are as follows (in thousands):

	2020															2021
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Full Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Full Year
Capital expenditures	$1,245			$507			$176			$802			$2,730			$569			$602			$987			$1,858			$4,016

7.        Stock Repurchase Activity (in thousands):

	2020										2021
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Shares purchased under publicly-announced buy-back program	337		-		-		-		337		214		244		123		128		709
Shares withheld for taxes due upon vesting of restricted stock	219		2		4		-		225		172		1		5		1		179
Total shares purchased	556		2		4		-		562		386		245		128		129		888
Total cash paid for shares purchased under publicly-announced buy-back program	$25,000		$0		$0		$0		$25,000		$26,988		$32,894		$19,994		$20,117		$99,993
Total cash paid for shares withheld for taxes due upon vesting of restricted stock	18,032		123		368		38		18,561		19,414		190		762		59		20,425
Total cash paid for shares repurchased	$43,032		$123		$368		$38		$43,561		$46,402		$33,084		$20,756		$20,176		$120,418

8.         Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Our reported performance obligations primarily represent cloud subscriptions with a non-cancelable term greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts are typically one year in duration and are not included in the remaining performance obligations. Below are our remaining performance obligations as of the end of each period (in thousands):

	March 31, 2020			June 30, 2020			September 30, 2020			December 31, 2020			March 31, 2021			June 30, 2021			September 30, 2021			December 31, 2021
Remaining Performance Obligations	$202,793			$225,470			$257,287			$308,761			$421,196			$488,718			$573,712			$699,244

9.         Guideposts

The following table shows (i) actual 2021 results for cloud revenue and remaining performance obligations (“RPO”) and (ii) current guideposts for cloud revenue and RPO for each year 2022 through 2024.

	Current Guideposts
	($'s in millions)
	Cloud Revenue
	Year			Low			Mid			High			% Growth(1)
	2021(2)			$122			$122			$122			53%
	2022			$161			$164			$167			34%
	2023			$220			$230			$240			40%
	2024			$310			$328			$345			42%
	Remaining Performance Obligations
	Year			Low			Mid			High			% Growth(1)
	2021(2)			$699			$699			$699			126%
	2022			$950			$1,000			$1,050			43%
	2023			$1,250			$1,325			$1,400			33%
	2024			$1,600			$1,700			$1,800			28%
	(1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points. (2) 2021 represents the actual results.

 

Contact:		Michael Bauer		Rick Fernandez
		Senior Director, Investor Relations		Director,  Corporate Communications
		Manhattan Associates, Inc.		Manhattan Associates, Inc.
		678-597-7538		678-597-6988
		mbauer@manh.com		rfernandez@manh.com