8-K

United States

Securities And Exchange Commission

Washington, DC 20549

______________

FORM 8-K

_____________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 25, 2023

Manhattan Associates, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Georgia	0-23999	58-2373424
(State or Other Jurisdiction of Incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

2300 Windy Ridge Parkway, Tenth Floor, Atlanta, Georgia

30339

(Address of Principal Executive Offices)

(Zip Code)

(770) 955-7070

(Registrant’s telephone number, including area code)

NONE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	MANH	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 25, 2023, Manhattan Associates, Inc. (“we”, “our”, or the “Company”) issued a press release providing its financial results for the three months ended March 31, 2023. A copy of this press release is attached as Exhibit 99.1. Pursuant to General Instruction B.2 of Form 8-K, this exhibit is “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

Non-GAAP Financial Measures in the Press Release

The press release includes, as additional information regarding our operating results, our adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share (collectively, “adjusted results”), which variously exclude the impact of equity-based compensation and related income tax effects. We have developed our internal reporting, compensation and planning systems using these additional financial measures.

These various measures are not in accordance with, or alternatives for, financial measures calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) and may be different from similarly titled non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP.

Non-GAAP measures used in the press release exclude the impact of equity-based compensation and related income tax effects because equity-based compensation expense typically does not require cash settlement by the Company. We do not include this expense when assessing our operating performance and believe our peers also typically present non-GAAP results that exclude equity-based compensation expense. We similarly exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes related to the stock award from the compensation expense recorded for financial reporting purposes.

We believe reporting adjusted results facilitates investors’ understanding of our historical operating trends because it provides supplemental measurement information in evaluating the operating results of our business. We also believe that adjusted results provide a basis for comparisons to other companies in the industry and enable investors to evaluate our operating performance in a manner consistent with our internal basis of measurement. Management refers to adjusted results in making operating decisions because we believe they provide meaningful supplemental information regarding our operational performance and our ability to invest in research and development and fund capital expenditures and acquisitions. In addition, adjusted results facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results.

Further, we rely on adjusted results as primary measures to review and assess the operating performance of our Company and our management team in connection with our executive compensation and bonus plans.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit
Number	Description
99.1	Press Release, dated April 25, 2023

2

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Manhattan Associates, Inc.

By: /s/ Dennis B. Story

Dennis B. Story

Executive Vice President, Chief Financial Officer and Treasurer

Dated: April 25, 2023

3

EX-99

Exhibit 99.1

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 First Quarter Results

RPO Bookings Increase 42% over Prior Year on Strong Demand

Company Raises 2023 Full-Year Guidance

ATLANTA – April 25, 2023 –Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $221.0 million for the first quarter ended March 31, 2023. GAAP diluted earnings per share for Q1 2023 was $0.62 compared to $0.48 in Q1 2022. Non-GAAP adjusted diluted earnings per share for Q1 2023 was $0.80 compared to $0.60 in Q1 2022.

“Manhattan Associates is off to a great start to 2023. Demand is strong, customer satisfaction is solid, and our consistent investment in R&D continues to extend our leadership position. Cloud and services revenue growth exceeded our expectations. This drove better than expected top-line and earnings growth in the quarter,” said Manhattan Associates president and CEO Eddie Capel.

“While we remain appropriately cautious regarding the global economy, we continue to set aggressive growth and investment goals that are aligned to best help our customers digitally transform their businesses,” Mr. Capel concluded.

FIRST QUARTER 2023 FINANCIAL SUMMARY:

•Consolidated total revenue was $221.0 million for Q1 2023, compared to $179.0 million for Q1 2022.

oCloud subscription revenue was $57.2 million for Q1 2023, compared to $37.3 million for Q1 2022.

oLicense revenue was $5.4 million for Q1 2023, compared to $8.4 million for Q1 2022.

 

oServices revenue was $116.2 million for Q1 2023, compared to $89.9 million for Q1 2022.

•GAAP diluted earnings per share was $0.62for Q1 2023, compared to $0.48 for Q1 2022.

 Adjusted diluted earnings per share, a non-GAAP measure, was $0.80for Q1 2023, compared to $0.60 for Q1 2022.

 GAAP operating income was $47.1 million for Q1 2023, compared to $34.0 million for Q1 2022.

 Adjusted operating income, a non-GAAP measure, was $63.7 million for Q1 2023, compared to $48.1 million for Q1 2022.

 Cash flow from operations was $58.7 million for Q1 2023, compared to $31.8 million for Q1 2022. Days Sales Outstanding was 65 days at March 31, 2023, compared to 77 days at December 31, 2022.

 Cash totaled $181.6 million at March 31, 2023, compared to $225.5 million at December 31, 2022.

 During the three months ended March 31, 2023, the Company repurchased 514,838 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $74.2 million. In April 2023, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.

 

2023 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2023:

	Guidance Range - 2023 Full Year
($'s in millions, except operating margin and EPS)	$ Range		% Growth Range
Total revenue - current guidance	$856	$864	12%	13%
Operating margin:
GAAP operating margin - current guidance	18.6%	18.9%
Equity-based compensation	7.8%	7.8%
Adjusted operating margin(1) - current guidance	26.4%	26.7%
Diluted earnings per share (EPS):
GAAP EPS - current guidance	$2.00	$2.06	-1%	1%
Equity-based compensation, net of tax	0.90	0.90
Excess tax benefit on stock vesting(2)	(0.05)	(0.05)
Adjusted EPS(1) - current guidance	$2.85	$2.91	3%	5%
(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based
compensation and related income tax effects.
(2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2023.

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. 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 first quarter financial results will be held today, April 25, 2023, 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 webcast will be available until Manhattan Associates’ second quarter 2023 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 months ended March 31, 2023.

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 – 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 “2023 Guidance” and “Guideposts,” 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: economic conditions, including inflation; disruption in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, 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, 2022, 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 March 31,
	2023	2022
	(unaudited)	(unaudited)
Revenue:
Cloud subscriptions	$57,220	$37,297
Software license	5,352	8,358
Maintenance	35,650	35,302
Services	116,170	89,918
Hardware	6,621	8,081
Total revenue	221,013	178,956
Costs and expenses:
Cost of cloud subscriptions, maintenance and services	103,327	83,025
Cost of software license	302	402
Research and development	30,794	27,455
Sales and marketing	18,065	14,390
General and administrative	19,953	17,965
Depreciation and amortization	1,487	1,747
Total costs and expenses	173,928	144,984
Operating income	47,085	33,972
Other income, net	143	738
Income before income taxes	47,228	34,710
Income tax provision	8,437	4,118
Net income	$38,791	$30,592
Basic earnings per share	$0.62	$0.48
Diluted earnings per share	$0.62	$0.48
Weighted average number of shares:
Basic	62,211	63,213
Diluted	62,767	63,871

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2023	2022
Operating income	$47,085	$33,972
Equity-based compensation (a)	16,640	14,138
Adjusted operating income (Non-GAAP)	$63,725	$48,110
Income tax provision	$8,437	$4,118
Equity-based compensation (a)	2,409	2,182
Tax benefit of stock awards vested (b)	2,955	4,375
Adjusted income tax provision (Non-GAAP)	$13,801	$10,675
Net income	$38,791	$30,592
Equity-based compensation (a)	14,231	11,956
Tax benefit of stock awards vested (b)	(2,955)	(4,375)
Adjusted net income (Non-GAAP)	$50,067	$38,173
Diluted EPS	$0.62	$0.48
Equity-based compensation (a)	0.23	0.19
Tax benefit of stock awards vested (b)	(0.05)	(0.07)
Adjusted diluted EPS (Non-GAAP)	$0.80	$0.60
Fully diluted shares	62,767	63,871

(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.

	Three Months Ended March 31,
	2023	2022
Cost of services	$6,516	$5,137
Research and development	3,655	3,189
Sales and marketing	1,648	1,406
General and administrative	4,821	4,406
Total equity-based compensation	$16,640	$14,138

(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.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

	March 31, 2023			December 31, 2022
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	181,595		$	225,463
Accounts receivable, net of allowance of $6,140 and $6,009, at March 31, 2023 and December 31, 2022, respectively		160,568			166,767
Prepaid expenses and other current assets		29,341			23,145
Total current assets		371,504			415,375
Property and equipment, net		12,049			12,803
Operating lease right-of-use assets		16,973			17,794
Goodwill, net		62,233			62,230
Deferred income taxes		39,743			37,206
Other assets		28,341			24,770
Total assets	$	530,843		$	570,178
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	25,357		$	25,701
Accrued compensation and benefits		45,802			54,469
Accrued and other liabilities		24,452			24,569
Deferred revenue		216,312			208,807
Income taxes payable		10,830			2,049
Total current liabilities		322,753			315,595
Operating lease liabilities, long-term		13,044			14,065
Other non-current liabilities		13,974			13,718
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2023 and 2022		-			-
Common stock, $0.01 par value; 200,000,000 shares authorized; 62,026,840 and 62,191,570 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively		620			621
Retained earnings		207,176			253,711
Accumulated other comprehensive loss		(26,724	)		(27,532	)
Total shareholders' equity		181,072			226,800
Total liabilities and shareholders' equity	$	530,843		$	570,178

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended March 31,
	2023			2022
	(unaudited)			(unaudited)
Operating activities:
Net income	$	38,791		$	30,592
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,487			1,747
Equity-based compensation		16,640			14,138
Loss on disposal of equipment		16			-
Deferred income taxes		(2,523	)		(3,985	)
Unrealized foreign currency loss (gain)		1,167			(494	)
Changes in operating assets and liabilities:
Accounts receivable, net		6,730			(8,077	)
Other assets		(8,760	)		(10,934	)
Accounts payable, accrued and other liabilities		(10,009	)		(6,177	)
Income taxes		7,850			6,175
Deferred revenue		7,327			8,807
Net cash provided by operating activities		58,716			31,792
Investing activities:
Purchase of property and equipment		(666	)		(1,159	)
Net cash used in investing activities		(666	)		(1,159	)
Financing activities:
Repurchase of common stock		(101,688	)		(77,108	)
Net cash used in financing activities		(101,688	)		(77,108	)
Foreign currency impact on cash		(230	)		(914	)
Net change in cash and cash equivalents		(43,868	)		(47,389	)
Cash and cash equivalents at beginning of period		225,463			263,706
Cash and cash equivalents at end of period	$	181,595		$	216,317

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

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

	2022					2023
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Full Year	1st Qtr
GAAP Diluted EPS	$0.48	$0.49	$0.47	$0.60	$2.03	$0.62
Adjustments to GAAP:
Equity-based compensation	0.19	0.20	0.19	0.21	0.79	0.23
Tax benefit of stock awards vested	(0.07)	-	-	-	(0.07)	(0.05)
Adjusted Diluted EPS	$0.60	$0.69	$0.66	$0.81	$2.76	$0.80
Fully Diluted Shares	63,871	63,419	63,165	63,028	63,408	62,767

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

	2022					2023
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Full Year	1st Qtr
Revenue:
Americas	$139,540	$151,996	$156,674	$155,674	$603,884	$170,759
EMEA	32,151	31,614	31,843	33,330	128,938	39,658
APAC	7,265	8,314	9,584	9,099	34,262	10,596
	$178,956	$191,924	$198,101	$198,103	$767,084	$221,013
GAAP Operating Income:
Americas	$21,393	$24,507	$22,914	$30,475	$99,289	$29,647
EMEA	10,517	9,423	9,851	10,239	40,030	12,793
APAC	2,062	3,323	4,005	3,991	13,381	4,645
	$33,972	$37,253	$36,770	$44,705	$152,700	$47,085
Adjustments (pre-tax):
Americas:
Equity-based    compensation	$14,138	$15,538	$14,533	$15,152	$59,361	$16,640
	$14,138	$15,538	$14,533	$15,152	$59,361	$16,640
Adjusted non-GAAP Operating Income:
Americas	$35,531	$40,045	$37,447	$45,627	$158,650	$46,287
EMEA	10,517	9,423	9,851	10,239	40,030	12,793
APAC	2,062	3,323	4,005	3,991	13,381	4,645
	$48,110	$52,791	$51,303	$59,857	$212,061	$63,725

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):

	2022					2023
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Full Year	1st Qtr
Revenue	$(2,268)	$(4,568)	$(6,152)	$(5,124)	$(18,112)	$(3,084)
Costs and expenses	(2,043)	(3,862)	(5,412)	(5,354)	(16,671)	(3,616)
Operating income	(225)	(706)	(740)	230	(1,441)	532
Foreign currency gains (losses)    in other income	711	2,056	1,569	353	4,689	(810)
	$486	$1,350	$829	$583	$3,248	$(278)

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):

	2022					2023
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Full Year	1st Qtr
Operating income	$470	$710	$1,166	$1,900	$4,246	$1,632
Foreign currency gains (losses)     in other income	809	2,085	1,713	738	5,345	(283)
Total impact of    changes in the    Indian Rupee	$1,279	$2,795	$2,879	$2,638	$9,591	$1,349

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

	2022					2023
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Full Year	1st Qtr
Interest income	$19	$92	$112	$373	$596	$969
Foreign currency gains (losses)	711	2,056	1,569	353	4,689	(810)
Other non-operating     income (expense)	8	95	(69)	102	136	(16)
Total other income (loss)	$738	$2,243	$1,612	$828	$5,421	$143

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

	2022					2023
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Full Year	1st Qtr
Capital expenditures	$1,159	$1,084	$1,909	$2,435	$6,587	$666

6. Stock Repurchase Activity (in thousands):

	2022					2023
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Full Year	1st Qtr
Shares purchased under publicly announced buy-back program	383	417	347	206	1,353	515
Shares withheld for taxes due upon vesting of restricted stock units	203	4	8	2	217	208
Total shares purchased	586	421	355	208	1,570	723
Total cash paid for shares purchased under publicly announced buy-back program	$49,965	$50,151	$50,000	$25,234	$175,350	$74,177
Total cash paid for shares withheld for taxes due upon vesting of restricted stock units	27,143	528	1,242	197	29,110	27,511
Total cash paid for shares repurchased	$77,108	$50,679	$51,242	$25,431	$204,460	$101,688

7. Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations ("RPO"). Approximately 98% of our RPO 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 and are not included in the RPO. Our RPO as of the end of each period appears below (in thousands):

	March 31, 2022		June 30, 2022		September 30, 2022		December 30, 2022		March 31, 2023
Remaining Performance Obligations	$	809,540	$	897,680	$	969,603	$	1,051,544	$	1,153,404

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. Our income tax payments increased by approximately $26 million in 2022 due to this law change and we expect a similar negative impact for 2023. 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 our (i) actual 2022 cloud revenue and remaining performance obligations (“RPO”) results, (ii) revised 2023 cloud revenue guidepost, (iii) 2023 RPO guidepost published as of October 25, 2022, and (iv) guideposts published as of February 1, 2022, for cloud revenue and RPO for 2024.

Current Guideposts
($'s in millions)
Cloud Revenue
Year	Low	Mid	High	% Growth(1)
2022⁽²⁾	$176	$176	$176	44%
2023⁽³⁾	$238	$240	$242	36%
2024⁽⁵⁾	$310	$328	$345	37%
Remaining Performance Obligations
Year	Low	Mid	High	% Growth(1)
2022⁽²⁾	$1,052	$1,052	$1,052	50%
2023⁽⁴⁾	$1,300	$1,350	$1,400	28%
2024⁽⁵⁾	$1,600	$1,700	$1,800	26%
(1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points.
(2) Amounts reflect actual results for 2022.
(3) Amounts reflect revised range as of April 25, 2023.
(4) Amounts remain unchanged from October 25, 2022.
(5) Amounts remain unchanged from February 1, 2022.

These guideposts are forward-looking statements and are subject to all the risks and uncertainties applicable to our shorter-term 2023 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 guideposts for the following fiscal year may be inherently more uncertain than our guideposts for this fiscal year, or than our 2023 Guidance published above.

XML

Document and Entity Information	Apr. 25, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 25, 2023
Entity Registrant Name	Manhattan Associates, Inc.
Entity Central Index Key	0001056696
Entity Emerging Growth Company	false
Securities Act File Number	0-23999
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-2373424
Entity Address, Address Line One	2300 Windy Ridge Parkway
Entity Address, Address Line Two	Tenth Floor
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	770
Local Phone Number	955-7070
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	MANH
Security Exchange Name	NASDAQ