MANHATTAN ASSOCIATES INC Q1 FY2025 earnings call

• Manhattan had a solid start to 2025 with better-than-expected top and bottom line results. • Cloud revenue growth of 21% drove top line outperformance. • RPO ended at $1.9 billion, up 25% year-over-year. • Q1 competitive win rates were about 70%, with 50% of new cloud bookings from net-new logos. • Launched Enterprise Promise and Fulfill to optimize B2B order promising and fulfillment. • Closed a deal with a luxury department store for Omnichannel Commerce applications. • Manhattan Assist features expanded, allowing various users to ask questions using generative AI capabilities.

For the first quarter, total revenue was $263 million, up 3%. Cloud revenue increased 21% to $94 million, while Services revenue declined 8% to $121 million. RPO ended the quarter at $1.9 billion, up 25% year-over-year. FX volatility was a $2 million headwind to Q1 total revenue but a $14 million tailwind to sequential RPO growth.

• Target RPO: $2.11 billion to $2.15 billion. • Target total revenue: $1.06 billion to $1.07 billion. • Q2 total revenue expected $263 million to $265 million, Q3 $271 million, Q4 $267 million (accounting for retail peak seasonality). • Adjusted operating margin midpoint 33.25%. • Adjusted EPS range $4.54 to $4.64, up from prior range. • Cloud revenue expected $405 million to $410 million for full year, Services revenue $494 million to $500 million, maintenance revenue $118 million to $120 million.

• Turbulent global macro environment could impact performance. • FX volatility may affect results. • Uncertainty in services revenue growth due to macro environment and tariff changes. • Timing of large deals and booking mix variability.

Q: Probe on cloud bookings, RPO, and sales pipeline amid tariffs and uncertainty.

A: Eric noted strong Q1 RPO, solid pipeline in Q2, with 50% of new cloud bookings in Q1 from net-new logos.

Q: Insights from talking to customers leading to reiterating guidance.

A: Eddie and Eric mentioned constant communication with customers and prospects led to reiterating the guide.

Q: FX component in full-year revenue guide.

A: Dennis stated FX is a less than 1% tailwind.

Q: Strength of large deals in pipeline and closure rates.

A: Eddie said pipeline is favorable, with large deals proportionally similar to prior year.

Q: Customers navigating macro and investment cycles.

A: Eddie and Eric discussed precise execution and inventory management being top of mind for customers.