Manhattan Associates (NASDAQ: MANH), a leading provider of supply chain optimization software, reported impressive financial results for the first quarter of fiscal year 2024. The company exceeded analysts’ expectations, posting a 15.2% year-over-year increase in revenue to $254.6 million. This growth was driven by strong performance in both the subscription and services segments of the business.
Manhattan Associates also raised its full-year revenue guidance to approximately $1.03 billion, aligning with analysts’ estimates. The company’s non-GAAP earnings per share improved to $1.03, a significant increase compared to $0.80 in the same quarter last year.
In addition to its financial performance, Manhattan Associates highlighted key metrics such as gross margin, free cash flow, and record backlog (RPO) of $1.5 billion, indicating a healthy pipeline of future revenue.
While the company’s results were largely positive, management expressed caution regarding macroeconomic volatility in its end markets. This weighed on investor sentiment, resulting in a 5% decline in the stock price after the earnings announcement.
Overall, Manhattan Associates’ Q1 results demonstrated solid execution and a positive outlook for the future. However, investors should consider management’s concerns regarding the macroeconomic environment as they assess the company’s prospects going forward.
