Manhattan Associates: Manhattan Associates First Quarter 2022 Earnings Conference Call

Contact: Michael Bauer

Rick Fernandez

Senior Director,

Director,

Investor Relations

Business communication

Manhattan Associates, Inc.

Manhattan Associates, Inc.

678-597-7538

678-597-6988

[email protected]

[email protected]

Manhattan Associates Reports Record Quarterly Revenue and Profit

RPO bookings up 92% year over year on strong demand

The company increases its revenue and EPS forecast for the year 2022

ATLANTE – April 26, 2022 – Leading provider of omnichannel commerce and supply chain solutions Manhattan Associates Inc. (NASDAQ: MANH) today announced revenue of $179.0 million for the first quarter ended March 31, 2022. GAAP diluted earnings per share was $0.48 for the first quarter of 2022 compared to $0.35 for the first quarter of 2021. Adjusted non-GAAP diluted earnings per share for the first quarter of 2022 was 0. $60, compared to $0.43 in the first quarter of 2021.

“We are off to a strong start to 2022 as strong demand for our cloud-native suite of Manhattan Active® solutions continues to drive strong pipeline and revenue momentum. Cloud and services revenue growth exceeded our expectations and delivered exceptional operating results,” said Eddie Capel, president and CEO of Manhattan Associates.

“We are committed to helping our customers digitally transform their supply chains and are confident in our business trajectory. Although we remain sufficiently cautious regarding macroeconomic volatility, our business fundamentals are solid and we are raising our forecast for 2022,” concluded Mr. Capel. .

FIRST QUARTER 2022 FINANCIAL SUMMARY:

  • GAAP diluted earnings per share were $0.48 for the first quarter of 2022, compared to $0.35 for the first quarter of 2021.

  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.60 for the first quarter of 2022, compared to $0.43 for the first quarter of 2021.

  • GAAP operating income was $34.0 million for the first quarter of 2022, compared to $25.4 million for the first quarter of 2021.

  • Adjusted operating income, a non-GAAP measure, was $48.1 million for the first quarter of 2022, compared to $35.6 million for the first quarter of 2021.

  • Cash flow from operations was $31.8 million for the first quarter of 2022, compared to $39.9 million for the first quarter of 2021. The number of days in the pipeline for sales was 66 days as of March 31 2022, compared to 67 days on December 31, 2021.

  • Cash totaled $216.3 million as of March 31, 2022, compared to $263.7 million as of December 31, 2021.

  • During the quarter ended March 31, 2022, the Company repurchased 383,358 shares of Manhattan Associates common stock under our board-authorized share buyback program for a total investment of $50.0 million. In April 2022, our Board of Directors approved increasing the company’s remaining share repurchase authority to a total of $75.0 million of our common stock.

DIRECTION 2022

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

Guidance ranage – Full year 2022

(in millions of dollars, excluding operating margin and EPS)

Range $

Total revenue

$720

Operating margin:

GAAP operating margin

16.0%

16.7%

Share-based compensation

8.2%

8.1%

Adjusted operating margin(1)

24.2%

24.8%

Diluted earnings per share (EPS):

EPS GAAP

$1.45

Stock-based compensation, net of tax

0.77

Excess tax benefit on the acquisition of shares (2)

(0.08)

Adjusted EPS(1)

$2.14

% growth range

$727

8%

9%

$1.53

-16%

-11%

0.77(0.08)

$2.22

-4%

0%

(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact ofacquisition-related fees and expenses, and related tax consequences of such items, if any.

(2) The excess tax benefit on the acquisition of the shares is expected to occur primarily in the first quarter of 2022.

Manhattan Associates currently intends to release in each quarterly earnings release certain expectations regarding future financial performance. These statements, including the advice provided above and the guidance in the additional information below, are forward-looking. Actual results may differ materially. See our disclaimer 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. Further, these statements do not reflect the potential impact of any mergers, acquisitions or other business combinations that may occur after the date of the release.

Manhattan Associates will post this earnings release and published expectations to the Investor Relations section of the Manhattan Associates website at ir.manh.com. After the issuance of this earnings release, all expectations regarding future financial performance contained in this release, including guidance and benchmarks, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

Manhattan Associates’ first quarter 2022 financial results conference call will be held today, April 26, 2022, at 4:30 p.m. EST. The Company will also discuss its business and expectations for the year and next quarter in more detail on the call. We invite investors to a live webcast of the conference call via the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please visit the website at least 15 minutes before the call to download and install any necessary audio software.

Those unable to listen to the live stream can access a replay shortly after the call by dialing +1.855.859.2056 in the US and Canada, or +1.404.537.3406 outside the US, and entering the conference ID number 3291673 or via the web at ir.manh.com. The telephone replay will be available for two weeks following the call, and the internet webcast will be available until the release of Manhattan Associates’ second quarter 2022 results.

GAAP VERSUS NON-GAAP OVERVIEW

Manhattan Associates provides in this press release adjusted earnings and operating margin, adjusted income tax provision, adjusted net earnings and adjusted diluted earnings per share as additional information regarding the results of Manhattan Associates. historical and projected operations of the company. These measures are not in accordance with or inconsistent with GAAP, and may differ from similarly titled non-GAAP measures used by other companies. The Company believes that the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and forecasts because the measures provide additional information for evaluating the operating results of its businesses. , as opposed to results that include items not indicative of current operating results, and because the Company believes that its peers generally 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, 2022.

Adjusted non-GAAP earnings and operating margin, adjusted income tax provision, adjusted net earnings and adjusted diluted earnings per share exclude the impact of stock-based compensation, related costs acquisition and amortization of such costs, and (from time to time) restructuring charges – all net of income tax effects. We include reconciliations ofCompany’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 downstream supply chain execution. Our software, platform technology and unparalleled experience contribute to both revenue growth and profitability for our customers.

Manhattan Associates designs, builds, and delivers industry-leading cloud solutions so that across the store, through your network, or from your distribution center, you’re 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, information presented under “2022 Directions” and “Guideposts”, any statement regarding the future effect of the COVID-19 pandemic on our business, our customers or the global economy, our business outlook following the pandemic, statements we make about market adoption of our cloud-based solution and other statements identified by words such as “may”, “expects”, “plans”, “anticipates”, “intends”, “plans”, “believes”, “could”, “seeks “, “project”, “estimate” and similar expressions. Prospective investors are cautioned that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially differ from those contemplated by these forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by these forward-looking statements include: 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 industry; delays in product development; competitive and pricing pressures; software errors and information technology failures, system disruptions and security breaches; disruption in the retail industry; risks related to our product technology and customer implementations; global instability, including the war in Ukraine; and 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 Item 1A of Part II of subsequent Quarterly Reports on Form 10-Q . Manhattan Associates assumes no obligation to update or revise any forward-looking statements to reflect changes assumptions, the occurrence of unforeseen events or changes in future operating results.

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Michael P. Boser