Manhattan Associates Reports Record Quarterly Revenue and Earnings

ソース: Nasdaq GlobeNewswire / 26 7 2022 16:05:01 America/New_York

RPO Bookings Increase 84% over Prior Year on Strong Demand

Company Raises 2022 Full-Year Revenue and EPS Guidance

ATLANTA, July 26, 2022 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $191.9 million for the second quarter ended June 30, 2022. GAAP diluted earnings per share was $0.49 for Q2 2022 compared to $0.48 for Q2 2021. Non-GAAP adjusted diluted earnings per share for Q2 2022 was $0.69 compared to $0.61 in Q2 2021.

“Manhattan delivered a record second quarter and first half results. Our business momentum is strong, as Q2 cloud revenue growth of 48% and service revenue growth of 19% exceeded our expectations and drove excellent operating results,” said Manhattan Associates president and CEO Eddie Capel.

“While we continue to operate in a turbulent global macro environment, our teams are executing very well for our customers, and demand for our cloud-native solutions remains robust. With our business fundamentals strengthening and revenue visibility increasing, we are again raising our 2022 guidance,” Mr. Capel concluded.

SECOND QUARTER 2022 FINANCIAL SUMMARY:

Consolidated total revenue was $191.9 million for Q2 2022, compared to $166.1 million for Q2 2021.
- Cloud subscription revenue was $42.2 million for Q2 2022, compared to $28.6 million for Q2 2021.
- License revenue was $5.1 million for Q2 2022, compared to $8.8 million for Q2 2021.
- Services revenue was $100.9 million for Q2 2022, compared to $84.7 million for Q2 2021.
GAAP diluted earnings per share was $0.49 for Q2 2022, compared to $0.48 for Q2 2021.
Adjusted diluted earnings per share, a non-GAAP measure, was $0.69 for Q2 2022, compared to $0.61 for Q2 2021.
GAAP operating income was $37.3 million for Q2 2022, compared to $39.4 million for Q2 2021.
Adjusted operating income, a non-GAAP measure, was $52.8 million for Q2 2022, compared to $50.2 million for Q2 2021.
Cash flow from operations was $52.7 million for Q2 2022, compared to $45.5 million for Q2 2021. Days Sales Outstanding was 63 days at June 30, 2022, compared to 66 days at March 31, 2022.
Cash totaled $213.8 million at June 30, 2022, compared to $216.3 million at March 31, 2022.
During the three months ended June 30, 2022, the Company repurchased 416,558 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $50.1 million. In July 2022, our Board of Directors approved raising the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.

SIX MONTH 2022 FINANCIAL SUMMARY:

Consolidated total revenue for the six months ended June 30, 2022, was $370.9 million, compared to $323.0 million for the six months ended June 30, 2021.
- Cloud subscription revenue was $79.5 million for the six months ended June 30, 2022, compared to $55.2 million for the six months ended June 30, 2021.
- License revenue was $13.5 million for the six months ended June 30, 2022, compared to $16.7 million for the six months ended June 30, 2021.
- Services revenue was $190.9 million for the six months ended June 30, 2022, compared to $165.1 million for the six months ended June 30, 2021.
GAAP diluted earnings per share for the six months ended June 30, 2022, was $0.97, compared to $0.83 for the six months ended June 30, 2021.
Adjusted diluted earnings per share, a non-GAAP measure, was $1.29 for the six months ended June 30, 2022, compared to $1.04 for the six months ended June 30, 2021.
GAAP operating income was $71.2 million for the six months ended June 30, 2022, compared to $64.8 million for the six months ended June 30, 2021.
Adjusted operating income, a non-GAAP measure, was $100.9 million for the six months ended June 30, 2022, compared to $85.8 million for the six months ended June 30, 2021.
Cash flow from operations was $84.5 million for the six months ended June 30, 2022, compared to $85.4 million for the six months ended June 30, 2021.
During the six months ended June 30, 2022, the Company repurchased 799,916 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $100.1 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	$733		$741		10%	12%

*Operating Margin:*
GAAP operating margin		17.4%		17.6%
Equity-based compensation		8.1%		8.1%
Adjusted operating margin⁽¹⁾		25.5%		25.7%

*Diluted earnings per share (EPS):*
GAAP EPS	$1.63		$1.67		-5%	-3%
Equity-based compensation, net of tax		0.79		0.79
Excess tax benefit on stock vesting ⁽²⁾		(0.07)		(0.07)
Adjusted EPS⁽¹⁾	$2.35		$2.39		5%	7%


⁽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 these 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 second quarter 2022 financial results will be held today, July 26, 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. The internet broadcast replay will be available until Manhattan Associates’ third 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 six months ended June 30, 2022.

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 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; economic conditions, including inflation; disruption in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, system disruption and security breaches; disruption in the retail sector; risks related to our products’ technology and customer implementations; global instability, including the war in Ukraine; 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, 2021, 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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenue:
Cloud subscriptions	$	42,203	$	28,595	$	79,500	$	55,238
Software license		5,125		8,823		13,483		16,661
Maintenance		35,993		37,732		71,295		73,891
Services		100,941		84,703		190,859		165,062
Hardware		7,662		6,261		15,743		12,112
Total revenue		191,924		166,114		370,880		322,964
Costs and expenses:
Cost of software license		880		556		1,282		1,112
Cost of cloud subscriptions, maintenance and services		87,766		70,072		170,791		143,581
Research and development		27,924		23,213		55,379		47,473
Sales and marketing		17,749		13,750		32,139		27,146
General and administrative		18,606		17,082		36,571		34,651
Depreciation and amortization		1,746		2,084		3,493		4,219
Total costs and expenses		154,671		126,757		299,655		258,182
Operating income		37,253		39,357		71,225		64,782
Other income, net		2,243		306		2,981		13
Income before income taxes		39,496		39,663		74,206		64,795
Income tax provision		8,671		9,070		12,789		11,559
Net income	$	30,825	$	30,593	$	61,417	$	53,236

Basic earnings per share	$	0.49	$	0.48	$	0.97	$	0.84
Diluted earnings per share	$	0.49	$	0.48	$	0.97	$	0.83

Weighted average number of shares:
Basic		62,954		63,537		63,083		63,591
Diluted		63,419		64,276		63,644		64,371

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021

Operating income	$	37,253		$	39,357		$	71,225		$	64,782
Equity-based compensation (a)		15,538			10,709			29,676			20,760
Purchase amortization (c)		-			107			-			214
Adjusted operating income (Non-GAAP)	$	52,791		$	50,173		$	100,901		$	85,756

Income tax provision	$	8,671		$	9,070		$	12,789		$	11,559
Equity-based compensation (a)		2,566			1,478			4,748			2,896
Tax benefit of stock awards vested (b)		8			402			4,383			4,057
Purchase amortization (c)		-			26			-			53
Adjusted income tax provision (Non-GAAP)	$	11,245		$	10,976		$	21,920		$	18,565

Net income	$	30,825		$	30,593		$	61,417		$	53,236
Equity-based compensation (a)		12,972			9,231			24,928			17,864
Tax benefit of stock awards vested (b)		(8	)		(402	)		(4,383	)		(4,057	)
Purchase amortization (c)		-			81			-			161
Adjusted net income (Non-GAAP)	$	43,789		$	39,503		$	81,962		$	67,204

Diluted EPS	$	0.49		$	0.48		$	0.97		$	0.83
Equity-based compensation (a)		0.20			0.14			0.39			0.28
Tax benefit of stock awards vested (b)		-			(0.01	)		(0.07	)		(0.06	)
Purchase amortization (c)		-			-			-			-
Adjusted diluted EPS (Non-GAAP)	$	0.69		$	0.61		$	1.29		$	1.04

Fully diluted shares		63,419			64,276			63,644			64,371

(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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

Cost of services	$	5,822	$	3,513	$	10,959	$	6,792
Research and development		3,425		2,116		6,614		4,108
Sales and marketing		1,546		1,111		2,952		2,125
General and administrative		4,745		3,969		9,151		7,735
Total equity-based compensation	$	15,538	$	10,709	$	29,676	$	20,760

(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)

	June 30, 2022			December 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	213,771		$	263,706
Accounts receivable, net of allowance of $3,046 and $2,419, at June 30, 2022 and December 31, 2021, respectively		133,852			124,420
Prepaid expenses and other current assets		26,929			20,293
Total current assets		374,552		$	408,419

Property and equipment, net		12,343			13,889
Operating lease right-of-use assets		23,198			27,272
Goodwill, net		62,227			62,239
Deferred income taxes		20,093			7,650
Other assets		21,876			20,239
Total assets	$	514,289		$	539,708

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	25,154		$	19,625
Accrued compensation and benefits		45,598			53,104
Accrued and other liabilities		22,385			22,741
Deferred revenue		178,019			153,196
Income taxes payable		70			376
Total current liabilities		271,226			249,042

Operating lease liabilities, long-term		18,934			23,157
Other non-current liabilities		15,394			16,865

Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2022 and 2021		-			-
Common stock, $0.01 par value; 200,000,000 shares authorized; 62,718,513 and 63,154,494 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		627			631
Retained earnings		233,151			269,841
Accumulated other comprehensive loss		(25,043	)		(19,828	)
Total shareholders' equity		208,735			250,644
Total liabilities and shareholders' equity	$	514,289		$	539,708

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)

	Six Months Ended June 30,
	2022			2021
	(unaudited)			(unaudited)
Operating activities:
Net income	$	61,417		$	53,236
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,493			4,219
Equity-based compensation		29,676			20,760
(Gain) loss on disposal of equipment		(92	)	-
Deferred income taxes		(12,535	)		1,768
Unrealized foreign currency gain		(2,087	)		(1,029	)
Changes in operating assets and liabilities:
Accounts receivable, net		(11,703	)		(5,289	)
Other assets		(6,697	)		(7,912	)
Accounts payable, accrued and other liabilities		(587	)		9,592
Income taxes		(3,519	)		(1,952	)
Deferred revenue		27,116			12,002
Net cash provided by operating activities		84,482			85,395

Investing activities:
Purchase of property and equipment		(2,243	)		(1,171	)
Net cash used in investing activities		(2,243	)		(1,171	)

Financing activities:
Purchase of common stock		(127,787	)		(79,486	)
Net cash used in financing activities		(127,787	)		(79,486	)

Foreign currency impact on cash		(4,387	)		(100	)

Net change in cash and cash equivalents		(49,935	)		4,638
Cash and cash equivalents at beginning of period		263,706			204,705
Cash and cash equivalents at end of period	$	213,771		$	209,343

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

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

2021

2022

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Full Year

1st Qtr

2nd Qtr

YTD

GAAP Diluted EPS

$0.35

$0.48

$0.57

$0.32

$1.72

$0.48

$0.49

$0.97

Adjustments to GAAP:

Equity-based compensation

0.13

0.14

0.16

0.58

0.19

0.20

0.39

Tax benefit of stock awards vested

(0.06)

(0.01)

(0.07)

Purchase amortization

Adjusted Diluted EPS

$0.43

$0.61

$0.71

$0.48

$2.23

$0.60

$0.69

$1.29

Fully Diluted Shares

64,466

64,276

64,238

64,224

64,323

63,871

63,419

63,644

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

		2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		YTD
Revenue:
Americas	$122,813		$132,308		$135,233		$135,861		$526,215		$139,540		$151,996			291,536
EMEA		28,434		27,190		27,402		27,548		110,574		32,151		31,614		63,765
APAC		5,603		6,616		6,550		8,085		26,854		7,265		8,314		15,579
	$156,850		$166,114		$169,185		$171,494		$663,643		$178,956		$191,924		$370,880

GAAP Operating Income:
Americas	$16,116		$28,590		$29,727		$16,746		$91,179		$21,393		$24,507		$45,900
EMEA		8,374		8,643		10,485		7,245		34,747		10,517		9,423		19,940
APAC		935		2,124		2,196		3,152		8,407		2,062		3,323		5,385
	$25,425		$39,357		$42,408		$27,143		$134,333		$33,972		$37,253		$71,225

Adjustments (pre-tax):
Americas:
Equity-based compensation	$10,051		$10,709		$10,573		$11,926		$43,259		$14,138		$15,538		$29,676
Purchase amortization		107		107		50		-		264		-		-		-
	$10,158		$10,816		$10,623		$11,926		$43,523		$14,138		$15,538		$29,676


Adjusted non-GAAP Operating Income:
Americas	$26,274		$39,406		$40,350		$28,672		$134,702		$35,531		$40,045		$75,576
EMEA		8,374		8,643		10,485		7,245		34,747		10,517		9,423		19,940
APAC		935		2,124		2,196		3,152		8,407		2,062		3,323		5,385
	$35,583		$50,173		$53,031		$39,069		$177,856		$48,110		$52,791		$100,901

3. 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):

		2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		YTD
Revenue	$2,932		$3,209		$823		$(716)		$6,248		$(2,268)		$(4,568)		$(6,836)
Costs and expenses		2,000		2,442		551		(887)		4,106		(2,043)		(3,862)		(5,905)
Operating income		932		767		272		171		2,142		(225)		(706)		(931)
Foreign currency (losses) gains in other income		(287)		315		(30)		(243)		(245)		711		2,056		2,767
	$645		$1,082		$242		$(72)		$1,897		$486		$1,350		$1,836

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):

		2021									2022
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr		Full Year		1st Qtr		2nd Qtr		YTD
Operating income	$79		($294)		($37)	$281		$29		$470		$710		$1,180
Foreign currency gains (losses) in other income		315		535	3		(9)		844		809		2,085		2,894
Total impact of changes in the Indian Rupee	$394		$241		$(34)	$272		$873		$1,279		$2,795		$4,074

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

		2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		YTD
Interest income	($15)		($10)		($9)		$102		$68		$19		$92		$111
Foreign currency gains (losses)		(287)		315		(30)		(243)		(245)		711		2,056		2,767
Other non-operating income (expense)		9		1		(3)		(91)		(84)		8		95		103
Total other income (loss)	$(293)		$306		$(42)		$(232)		$(261)		$738		$2,243		$2,981

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

		2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		YTD
Capital expenditures	$	569	$	602	$	987	$	1,858	$	4,016	$	1,159	$	1,084	$	2,243

6. Stock Repurchase Activity (in thousands):

		2021										2022
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		YTD
Shares purchased under publicly announced buy-back program		214		244		123		128		709		383		417		800
Shares withheld for taxes due upon vesting of restricted stock units		172		1		5		1		179		203		4		207
Total shares purchased		386		245		128		129		888		586		421		1,007

Total cash paid for shares purchased under publicly announced buy-back program	$26,988		$32,894		$19,994		$20,117		$99,993		$49,965		$50,151		$100,116
Total cash paid for shares withheld for taxes due upon vesting of restricted stock units		19,414		190		762		59		20,425		27,143		528		27,671
Total cash paid for shares repurchased	$46,402		$33,084		$20,756		$20,176		$120,418		$77,108		$50,679		$127,787

7. Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Over 97% of our reported performance obligations represent cloud native 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, 2021			June 30, 2021			September 30, 2021			December 31, 2021			March 31, 2022			June 30, 2022
Remaining Performance Obligations	$421,196			$488,718			$573,712			$699,244			$809,540			$897,680

8. The 2017 U.S. Tax Cuts and Jobs Act eliminated the expensing of research and development costs as incurred for tax purposes beginning in 2022.

This law changes the timing of cash tax payments, increasing near-term taxable income and payments, but normalizing over time as these expenses are amortized. As such, our cash outlook for 2022 includes the negative impact of approximately $25 million to $30 million in additional income tax payments. While there is still a possibility that legislation will be enacted that defers or eliminates the requirement to capitalize these costs, our current outlook factors in higher cash taxes as we will be required to make these payments, unless the existing law is amended. This legislation does not impact earnings per share, does not create any incremental expense obligation, and does not impact our ability to operationally grow cash flow.

9. Guideposts

The following table shows (i) actual 2021 results for cloud revenue and remaining performance obligations (“RPO”), (ii) revised 2022 cloud revenue guidepost and (iii) guideposts published as of February 1, 2022, for cloud revenue for 2023 through 2024 and remaining performance obligations (“RPO”) for each year 2022 through 2024. We expect to exceed our 2022 RPO guidepost and plan to update all guideposts on our upcoming third quarter earnings release.

Current Guideposts
($'s in millions)

Cloud Revenue
Year	Low	Mid	High	% Growth⁽¹⁾
2021 ⁽²⁾	$122	$122	$122	53%
2022 ⁽³⁾	$170	$171	$172	40%
2023 ⁽⁴⁾	$220	$230	$240	35%
2024 ⁽⁴⁾	$310	$328	$345	42%

Remaining Performance Obligations
Year	Low	Mid	High	% Growth⁽¹⁾
2021 ⁽²⁾	$699	$699	$699	126%
2022 ⁽⁴⁾	$950	$1,000	$1,050	43%
2023⁽⁴⁾	$1,250	$1,325	$1,400	33%
2024⁽⁴⁾	$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 result.} ^{(3) Amount reflects revised range as of July 26, 2022.} ^{(4) Amounts remain unchanged from February 1, 2022. Will address in Q3 2022 Earnings call.}

These guideposts are forward-looking statements and are subject to all the risks and uncertainties applicable to our shorter-term 2022 Guidance, as stated above. In addition, the further into the future we project our financial expectations, the greater the risk that actual results will differ materially; consequently, our longer-term guideposts may be inherently more uncertain than our shorter-term guidance.


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

Manhattan Associates Reports Record Quarterly Revenue and Earnings

Set Language