Manhattan Associates’ first quarter results were well received by the market, with management crediting the company’s unified cloud portfolio and strength in new customer wins as key drivers of growth. CEO Eric Clark emphasized sustained demand across diverse end markets, noting that 21% cloud revenue growth and a 25% increase in remaining performance obligations (RPO) underscored the value of Manhattan’s solutions in helping customers manage supply chain uncertainty. Management also cited a balanced mix of new and existing client activity, highlighting consistent win rates and broad product adoption.
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Manhattan Associates (MANH) Q1 CY2025 Highlights:
- Revenue: $262.8 million vs analyst estimates of $256.8 million (3.2% year-on-year growth, 2.3% beat)
- Adjusted EPS: $1.19 vs analyst estimates of $1.03 (15.7% beat)
- The company reconfirmed its revenue guidance for the full year of $1.07 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $4.59 at the midpoint, a 2% increase
- Operating Margin: 24%, up from 22.6% in the same quarter last year
- Billings: $279.9 million at quarter end, in line with the same quarter last year
- Market Capitalization: $11.63 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Manhattan Associates’s Q1 Earnings Call
- Terry Tillman (Truist Securities) asked about the impact of tariffs and macro uncertainty on sales pipeline activity. CEO Eric Clark responded that while caution is warranted, current bookings and services demand remain solid, with no adverse changes seen so far.
- Brian Peterson (Raymond James) inquired about the rationale for maintaining operating margin targets. CFO Dennis Story explained that continued investment in sales and marketing is a priority, and the margin outlook incorporates both growth initiatives and prudent cost management.
- Joe Vruwink (Baird) questioned the resiliency of new logo wins versus migrations and cross-sell activity. Executive Vice Chairman Eddie Capel noted that while new logo activity was strong this quarter, bookings composition varies and all segments are seen as resilient amid ongoing supply chain needs.
- Dylan Becker (William Blair) sought clarity on customers’ investment priorities given the uncertain macro backdrop. Capel responded that precise execution and inventory management remain top customer concerns, supporting demand for Manhattan’s solutions even as broader uncertainty persists.
- George Kurosawa (Citi) asked about the company’s process for reiterating guidance amid market volatility. Clark and Capel emphasized ongoing customer engagement and pipeline analysis as the basis for maintaining outlook confidence.
Catalysts in Upcoming Quarters
In future quarters, our analyst team will be watching (1) trends in cloud adoption rates and the mix of new versus existing customer bookings, (2) continued progress on product launches like Enterprise Promise and Fulfill and AI-driven features, and (3) execution against sales and marketing expansion plans. We will also monitor how macroeconomic headwinds, such as tariffs and shifting customer budgets, affect services revenue and contract deployments.
Manhattan Associates currently trades at $192.06, up from $162.26 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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