• Manhattan Associates Reports Record Third Quarter Results

    Источник: Nasdaq GlobeNewswire / 25 окт 2022 16:05:01   America/New_York

    RPO Bookings Increase 69% over Prior Year on Strong Demand

    Company Raises 2022 Full-Year Revenue and EPS Guidance

    ATLANTA, Oct. 25, 2022 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $198.1 million for the third quarter ended September 30, 2022. GAAP diluted earnings per share was $0.47 for Q3 2022 compared to $0.57 for Q3 2021. Non-GAAP adjusted diluted earnings per share for Q3 2022 was $0.66 compared to $0.71 in Q3 2021.

    “We are very pleased with our quarterly results, delivering record Q3 revenue and better than expected earnings per share. Demand is strong and resilient across our differentiated cloud product portfolio,” said Manhattan Associates president and CEO Eddie Capel.

    “We are committed to our customers’ success and continue to invest in industry leading innovation to help digitally transform their businesses. While the global macro environment remains turbulent, our business fundamentals are strong and our increased 2022 guidance appropriately accounts for continued volatility,” Mr. Capel concluded.

    THIRD QUARTER 2022 FINANCIAL SUMMARY:

    • Consolidated total revenue was $198.1 million for Q3 2022, compared to $169.2 million for Q3 2021.
      • Cloud subscription revenue was $45.3 million for Q3 2022, compared to $32.2 million for Q3 2021.
      • License revenue was $6.4 million for Q3 2022, compared to $8.5 million for Q3 2021.
      • Services revenue was $103.4 million for Q3 2022, compared to $88.2 million for Q3 2021.
    • GAAP diluted earnings per share was $0.47 for Q3 2022, compared to $0.57 for Q3 2021.
    • Adjusted diluted earnings per share, a non-GAAP measure, was $0.66 for Q3 2022, compared to $0.71 for Q3 2021.
    • GAAP operating income was $36.8 million for Q3 2022, compared to $42.4 million for Q3 2021.
    • Adjusted operating income, a non-GAAP measure, was $51.3 million for Q3 2022, compared to $53.0 million for Q3 2021.
    • Cash flow from operations was $39.9 million for Q3 2022, compared to $59.7 million for Q3 2021. Days Sales Outstanding was 67 days at September 30, 2022, compared to 63 days at June 30, 2022.
    • Cash totaled $197.1 million at September 30, 2022, compared to $213.8 million at June 30, 2022.
    • During the three months ended September 30, 2022, the Company repurchased 346,620 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $50.0 million. In October 2022, our Board of Directors approved replenishing the Company’s remaining share repurchase authority to an aggregate of $75.0 million of our common stock.

    NINE MONTH 2022 FINANCIAL SUMMARY:

    • Consolidated total revenue for the nine months ended September 30, 2022, was $569.0 million, compared to $492.1 million for the nine months ended September 30, 2021.
      • Cloud subscription revenue was $124.8 million for the nine months ended September 30, 2022, compared to $87.4 million for the nine months ended September 30, 2021.
      • License revenue was $19.9 million for the nine months ended September 30, 2022, compared to $25.1 million for the nine months ended September 30, 2021.
      • Services revenue was $294.3 million for the nine months ended September 30, 2022, compared to $253.2 million for the nine months ended September 30, 2021.
    • GAAP diluted earnings per share for the nine months ended September 30, 2022, was $1.43, compared to $1.40 for the nine months ended September 30, 2021.
    • Adjusted diluted earnings per share, a non-GAAP measure, was $1.95 for the nine months ended September 30, 2022, compared to $1.75 for the nine months ended September 30, 2021.
    • GAAP operating income was $108.0 million for the nine months ended September 30, 2022, compared to $107.2 million for the nine months ended September 30, 2021.
    • Adjusted operating income, a non-GAAP measure, was $152.2 million for the nine months ended September 30, 2022, compared to $138.8 million for the nine months ended September 30, 2021.
    • Cash flow from operations was $124.4 million for the nine months ended September 30, 2022, compared to $145.1 million for the nine months ended September 30, 2021.
    • During the nine months ended September 30, 2022, the Company repurchased 1,146,536 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $150.1 million.

    2022 GUIDANCE

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

       Guidance Range - 2022 Full Year
    		 
     ($'s in millions, except operating margin and EPS) $ Range % Growth Range 
               
     Total revenue - current guidance $750 $753 13% 13% 
               
     Operating margin:         
     GAAP operating margin - current guidance 17.5% 17.7%     
     Equity-based compensation 8.0% 7.9%     
     Adjusted operating margin(1)- current guidance 25.5% 25.6%     
               
     Diluted earnings per share (EPS):         
     GAAP EPS - current guidance $1.71 $1.73 -1% 1% 
     Equity-based compensation, net of tax 0.79 0.79     
     Excess tax benefit on stock vesting (0.07) (0.07)     
     Adjusted EPS(1)- current guidance $2.43 $2.45 9% 10% 
               
     (1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based 
     compensation and acquisition-related costs, and the related income tax effects of those items if applicable. 
       


    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. In addition, 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 third quarter 2022 financial results will be held today, October 25, 2022, 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 broadcast replay will be available until Manhattan Associates’ fourth quarter 2022 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 and nine months ended September 30, 2022.

    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, acquisition-related costs and the amortization of these costs and (from time to time) restructuring charges – all 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 “2022 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, system 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, 2021, 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
    September 30,    		  Nine Months Ended
    September 30,    		 
      2022  2021  2022  2021 
      (unaudited)  (unaudited)  (unaudited)  (unaudited) 
    Revenue:            
    Cloud subscriptions $45,267  $32,196  $124,767  $87,434 
    Software license  6,386   8,461   19,869   25,122 
    Maintenance  35,820   34,479   107,115   108,370 
    Services  103,425   88,172   294,284   253,234 
    Hardware  7,203   5,877   22,946   17,989 
    Total revenue  198,101   169,185   568,981   492,149 
    Costs and expenses:            
    Cost of software license  467   690   1,749   1,802 
    Cost of cloud subscriptions, maintenance and services  95,691   70,813   266,482   214,394 
    Research and development  29,375   23,372   84,754   70,845 
    Sales and marketing  15,742   14,057   47,881   41,203 
    General and administrative  18,392   15,928   54,963   50,579 
    Depreciation and amortization  1,664   1,917   5,157   6,136 
    Total costs and expenses  161,331   126,777   460,986   384,959 
    Operating income  36,770   42,408   107,995   107,190 
    Other income (loss), net  1,612   (42)  4,593   (29)
    Income before income taxes  38,382   42,366   112,588   107,161 
    Income tax provision  8,708   5,712   21,497   17,271 
    Net income $29,674  $36,654  $91,091  $89,890 
                 
    Basic earnings per share $0.47  $0.58  $1.45  $1.42 
    Diluted earnings per share $0.47  $0.57  $1.43  $1.40 
                 
    Weighted average number of shares:            
    Basic  62,592   63,363   62,917   63,514 
    Diluted  63,165   64,238   63,483   64,339 


    MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
    Reconciliation of GAAP to Non-GAAP Measures
    (in thousands, except per share amounts)
     
      Three Months Ended
    September 30,
    		 Nine Months Ended
    September 30,
      2022
    		 2021
    		 2022
    		 2021
                 
    Operating income $36,770  $42,408  $107,995  $107,190 
    Equity-based compensation (a)  14,533   10,573   44,209   31,333 
    Purchase amortization (c)  -   50   -   264 
    Restructuring charge (d)  -   -   -   - 
    Adjusted operating income (Non-GAAP) $51,303  $53,031  $152,204  $138,787 
                 
    Income tax provision $8,708  $5,712  $21,497  $17,271 
    Equity-based compensation (a)  2,265   1,503   7,013   4,399 
    Tax benefit of stock awards vested (b)  3   312   4,386   4,369 
    Purchase amortization (c)  -   12      65 
    Adjusted income tax provision (Non-GAAP) $10,976  $7,539  $32,896  $26,104 
                 
    Net income $29,674  $36,654  $91,091  $89,890 
    Equity-based compensation (a)  12,268   9,070   37,196   26,934 
    Tax benefit of stock awards vested (b)  (3)  (312)  (4,386)  (4,369)
    Purchase amortization (c)  -   38   -   199 
    Adjusted net income (Non-GAAP) $41,939  $45,450  $123,901  $112,654 
                 
    Diluted EPS $0.47  $0.57  $1.43  $1.40 
    Equity-based compensation (a)  0.19   0.14   0.59   0.42 
    Tax benefit of stock awards vested (b)  -   -   (0.07)  (0.07)
    Purchase amortization (c)  -   -   -   - 
    Adjusted diluted EPS (Non-GAAP) $0.66  $0.71  $1.95  $1.75 
                 
    Fully diluted shares  63,165   64,238   63,483   64,339 
                     
    (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. The Tax Cuts and Jobs Act further increased those limitations.


      Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2022 2021 2022 2021
             
    Cost of services $5,308  $3,977  $16,267  $10,769 
    Research and development  3,126   2,139   9,740   6,247 
    Sales and marketing  1,508   1,073   4,460   3,198 
    General and administrative  4,591   3,384   13,742   11,119 
    Total equity-based compensation $14,533  $10,573  $44,209  $31,333 
     
    (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.
    (c) Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.


    MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (in thousands, except share and per share data)
     
      September 30, 2022  December 31, 2021 
      (unaudited)    
    ASSETS      
    Current assets:      
    Cash and cash equivalents $197,055  $263,706 
    Accounts receivable, net of allowance of $3,296 and $2,419, at September 30, 2022 and December 31, 2021, respectively  143,504   124,420 
    Prepaid expenses and other current assets  26,136   20,293 
    Total current assets  366,695   408,419 
           
    Property and equipment, net  12,265   13,889 
    Operating lease right-of-use assets  21,169   27,272 
    Goodwill, net  62,218   62,239 
    Deferred income taxes  28,231   7,650 
    Other assets  24,141   20,239 
    Total assets $514,719  $539,708 
           
    LIABILITIES AND SHAREHOLDERS' EQUITY      
    Current liabilities:      
    Accounts payable $27,360  $19,625 
    Accrued compensation and benefits  62,560   53,104 
    Accrued and other liabilities  22,507   22,741 
    Deferred revenue  169,390   153,196 
    Income taxes payable  2,153   376 
    Total current liabilities  283,970   249,042 
           
    Operating lease liabilities, long-term  17,186   23,157 
    Other non-current liabilities  15,429   16,865 
           
    Shareholders' equity:      
    Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2022 and 2021  -   - 
    Common stock, $0.01 par value; 200,000,000 shares authorized; 62,394,460 and 63,154,494 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively  624   631 
    Retained earnings  226,119   269,841 
    Accumulated other comprehensive loss  (28,609)  (19,828)
    Total shareholders' equity  198,134   250,644 
    Total liabilities and shareholders' equity $514,719  $539,708 


    MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
     
      Nine Months Ended September 30, 
      2022  2021 
      (unaudited)  (unaudited) 
    Operating activities:      
    Net income $91,091  $89,890 
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization  5,157   6,136 
    Equity-based compensation  44,209   31,333 
    (Gain) loss on disposal of equipment  (20)  14 
    Deferred income taxes  (20,736)  (213)
    Unrealized foreign currency gain  (2,933)  (949)
    Changes in operating assets and liabilities:      
    Accounts receivable, net  (23,384)  (7,296)
    Other assets  (9,190)  (8,328)
    Accounts payable, accrued and other liabilities  20,743   13,429 
    Income taxes  (730)  (2,965)
    Deferred revenue  20,195   24,029 
    Net cash provided by operating activities  124,402   145,080 
           
    Investing activities:      
    Purchase of property and equipment  (4,152)  (2,158)
    Net cash used in investing activities  (4,152)  (2,158)
           
    Financing activities:      
    Purchase of common stock  (179,029)  (100,242)
    Net cash used in financing activities  (179,029)  (100,242)
           
    Foreign currency impact on cash  (7,872)  (940)
           
    Net change in cash and cash equivalents  (66,651)  41,740 
    Cash and cash equivalents at beginning of period  263,706   204,705 
    Cash and cash equivalents at end of period $197,055  $246,445 
             

    MANHATTAN ASSOCIATES, INC.
    SUPPLEMENTAL INFORMATION

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

     2021 2022
     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr YTD
    GAAP Diluted EPS$0.35 $0.48 $0.57 $0.32 $1.72 $0.48 $0.49 $0.47 $1.43
    Adjustments to GAAP:                 
    Equity-based compensation0.13 0.14 0.14 0.16 0.58 0.19 0.20 0.19 0.59
    Tax benefit of stock awards vested(0.06) (0.01) - - (0.07) (0.07) - - (0.07)
    Purchase amortization- - - - - - - - -
    Adjusted Diluted EPS$0.43 $0.61 $0.71 $0.48 $2.23 $0.60 $0.69 $0.66 $1.95
    Fully Diluted Shares64,466 64,276 64,238 64,224 64,323 63,871 63,419 63,165 63,483
                      

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

     2021
    		 2022
     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr YTD
    Revenue:
    Americas$122,813 $132,308 $135,233 $135,861 $526,215 $139,540 $151,996 $156,674 $448,210
    EMEA28,434 27,190 27,402 27,548 110,574 32,151 31,614 31,843 95,608
    APAC5,603 6,616 6,550 8,085 26,854 7,265 8,314 9,584 25,163
     $156,850 $166,114 $169,185 $171,494 $663,643 $178,956 $191,924 $198,101 $568,981
                      
    GAAP Operating Income:
    Americas$16,116 $28,590 $29,727 $16,746 $91,179 $21,393 $24,507 $22,914 $68,814
    EMEA8,374 8,643 10,485 7,245 34,747 10,517 9,423 9,851 29,791
    APAC935 2,124 2,196 3,152 8,407 2,062 3,323 4,005 9,390
     $25,425 $39,357 $42,408 $27,143 $134,333 $33,972 $37,253 $36,770 $107,995
                      
    Adjustments (pre-tax):
    Americas:                 
    Equity-based compensation$10,051 $10,709 $10,573 $11,926 $43,259 $14,138 $15,538 $14,533 $44,209
    Purchase amortization107 107 50 - 264 - - - -
     $10,158 $10,816 $10,623 $11,926 $43,523 $14,138 $15,538 $14,533 $44,209
                      
    Adjusted non-GAAP Operating Income:
    Americas$26,274 $39,406 $40,350 $28,672 $134,702 $35,531 $40,045 $37,447 $113,023
    EMEA8,374 8,643 10,485 7,245 34,747 10,517 9,423 9,851 29,791
    APAC935 2,124 2,196 3,152 8,407 2,062 3,323 4,005 9,390
     $35,583 $50,173 $53,031 $39,069 $177,856 $48,110 $52,791 $51,303 $152,204
                      

    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):

     2021 2022
     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr YTD
    Revenue$2,932 $3,209 $823 $(716) $6,248 $(2,268) $(4,568) $(6,152) $(12,988)
    Costs and expenses2,000 2,442 551 (887) 4,106 (2,043) (3,862) (5,412) (11,317)
    Operating income932 767 272 171 2,142 (225) (706) (740) (1,671)
    Foreign currency (losses) gains in other income(287) 315 (30) (243) (245) 711 2,056 1,569 4,336
     $645 $1,082 $242 $(72) $1,897 $486 $1,350 $829 $2,665
                      

    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):

     2021 2022
     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr YTD
    Operating income$79 $(294) $(37) $281 $29 $470 $710 $1,166 $2,346
    Foreign currency gains (losses) in other income315 535 3 (9) 844 809 2,085 1,713 4,607
    Total impact of changes in the Indian Rupee$394 $241 $(34) $272 $873 $1,279 $2,795 $2,879 $6,953
                      

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

     2021 2022
     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr YTD
    Interest income$(15) $(10) $(9) $102 $68 $19 $92 $112 $223
    Foreign currency gains (losses)(287) 315 (30) (243) (245) 711 2,056 1,569 4,336
    Other non-operating income (expense)9 1 (3) (91) (84) 8 95 (69) 34
    Total other income (loss)$(293) $306 $(42) $(232) $(261) $738 $2,243 $1,612 $4,593
                      

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

     2021
    		 2022
     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr YTD
    Capital expenditures$569 $602 $987 $1,858 $4,016 $1,159 $1,084 $1,909 $4,152
                      

    6. Stock Repurchase Activity (in thousands):

     2021 2022
     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr YTD
    Shares purchased under publicly announced buy-back program214 244 123 128 709 383 417 347 1,147
    Shares withheld for taxes due upon vesting of restricted stock units172 1 5 1 179 203 4 8 215
    Total shares purchased386 245 128 129 888 586 421 355 1,362
                      
    Total cash paid for shares purchased under publicly announced buy-back program$26,988 $32,894 $19,994 $20,117 $99,993 $49,965 $50,151 $50,000 $150,116
    Total cash paid for shares withheld for taxes due upon vesting of restricted stock units19,414 190 762 59 20,425 27,143 528 1,242 28,913
    Total cash paid for shares repurchased$46,402 $33,084 $20,756 $20,176 $120,418 $77,108 $50,679 $51,242 $179,029
                      

    7. Remaining Performance Obligations

    We disclose revenue we expect to recognize from our remaining performance obligations. Over 97% of our reported performance obligations 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 in duration and are not included in the remaining performance obligations. Below are our remaining performance obligations as of the end of each period (in thousands):

     March 31, 2021 June 30, 2021 September
    30, 2021    		 December
    30, 2021    		 March 31, 2022 June 30, 2022 September
    30, 2022
    Remaining Performance Obligations$421,196 $488,718 $573,712 $699,244 $809,540 $897,680 $969,603
                  

    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. As such, our cash outlook for 2022 includes the negative impact of approximately $25 million to $30 million in additional income tax payments. 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 (i) revised 2022 and 2023 cloud revenue and remaining performance obligations (“RPO”) guideposts and (ii) 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) $172 $172 $173 41% 
     2023 (2) $230 $232 $233 35% 
     2024 (3) $310 $328 $345 41% 
               
     Remaining Performance Obligations 
     Year Low Mid High % Growth(1) 
     2022 (2) $1,030 $1,040 $1,050 49% 
     2023 (2) $1,300 $1,350 $1,400 30% 
     2024 (3) $1,600 $1,700 $1,800 26% 
               
     (1) Year-over-year percentage growth is calculated based on the actual or forecasted mid-points.
     (2) Amount reflects revised range as of October 25, 2022. 
     (3) 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 2022 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 longer-term guideposts may be inherently more uncertain than our shorter-term guidance.


    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
         

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