Manhattan Associates Reports Record Quarterly Revenue and Earnings

Atlanta, Georgia, UNITED STATES


RPO Bookings Increase 123% over Prior Year on Strong Demand

Company Raises 2021 Full-Year Revenue and EPS Guidance

ATLANTA, Oct. 26, 2021 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $169.2 million for the third quarter ended September 30, 2021. GAAP diluted earnings per share for Q3 2021 was $0.57 compared to $0.39 for Q3 2020. Non-GAAP adjusted diluted earnings per share for Q3 2021 was $0.71 compared to $0.51 in Q3 2020.

“With robust demand across all of our solutions, Manhattan Associates posted strong growth in the quarter, resulting in all-time record revenue and earnings. Cloud and services revenue momentum exceeded our expectations and drove exceptional operating results,” said Manhattan Associates president and CEO Eddie Capel. “Our cloud-native suite of Manhattan Active® solutions continue to drive solid pipeline and revenue momentum. Based on our outlook for the remainder of the year, we are again raising our 2021 full-year revenue and earnings guidance.”

“While appropriately cautious regarding global geopolitical and economic volatility, we continue to be optimistic on the market opportunity ahead. Supply chain complexity and the rapid rate of change in digital commerce have heightened the need for our flexible and agile solutions. Importantly, with positive customer feedback and strong competitive win rates, combined with continued market-leading innovation, we expect to reach an RPO milestone of $1 billion in 2022, about a year earlier than our original expectations,” added Mr. Capel.

THIRD QUARTER 2021 FINANCIAL SUMMARY:

  • Consolidated total revenue was $169.2 million for Q3 2021, compared to $149.8 million for Q3 2020.

    • Cloud subscription revenue was $32.2 million for Q3 2021, compared to $21.1 million for Q3 2020.
    • License revenue was $8.5 million for Q3 2021, compared to $13.2 million for Q3 2020.
    • Services revenue was $88.2 million for Q3 2021, compared to $73.5 million for Q3 2020.
  • GAAP diluted earnings per share was $0.57 for Q3 2021, compared to $0.39 for Q3 2020.
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.71 for Q3 2021, compared to $0.51 for Q3 2020.
  • GAAP operating income was $42.4 million for Q3 2021, compared to $35.0 million for Q3 2020.
  • Adjusted operating income, a non-GAAP measure, was $53.0 million for Q3 2021, compared to $44.1 million for Q3 2020.
  • Cash flow from operations was $59.7 million for Q3 2021, compared to $42.5 million for Q3 2020. Days Sales Outstanding was 63 days at September 30, 2021, compared to 62 days at June 30, 2021.
  • Cash totaled $246.4 million at September 30, 2021, compared to $209.3 million at June 30, 2021.
  • During the three months ended September 30, 2021, the Company repurchased 123,131 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $20.0 million. In October 2021, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.

NINE MONTH 2021 FINANCIAL SUMMARY:

  • Consolidated total revenue for the nine months ended September 30, 2021, was $492.1 million, compared to $439.3 million for the nine months ended September 30, 2020.

    • Cloud subscription revenue was $87.4 million for the nine months ended September 30, 2021, compared to $56.8 million for the nine months ended September 30, 2020.
    • License revenue was $25.1 million for the nine months ended September 30, 2021, compared to $28.6 million for the nine months ended September 30, 2020. 
    • Services revenue was $253.2 million for the nine months ended September 30, 2021, compared to $232.7 million for the nine months ended September 30, 2020.
  • GAAP diluted earnings per share for the nine months ended September 30, 2021, was $1.40, compared to $1.04 for the nine months ended September 30, 2020.  
  • Adjusted diluted earnings per share, a non-GAAP measure, was $1.75 for the nine months ended September 30, 2021, compared to $1.32 for the nine months ended September 30, 2020.
  • GAAP operating income was $107.2 million for the nine months ended September 30, 2021, compared to $85.9 million for the nine months ended September 30, 2020.
  • Adjusted operating income, a non-GAAP measure, was $138.8 million for the nine months ended September 30, 2021, compared to $110.3 million for the nine months ended September 30, 2020. 
  • Cash flow from operations was $145.1 million for the nine months ended September 30, 2021, compared to $102.9 million for the nine months ended September 30, 2020.
  • During the nine months ended September 30, 2021, the Company repurchased 580,826 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $79.9 million.

2021 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2021:

  Guidance Range - 2021 Full Year
 ($'s in millions, except operating margin and EPS)$ Range % Growth Range 
          
 Total revenue - current guidance$ 653  $ 655  11% 12% 
          
 Total revenue - previous guidance$643  $650      
          
 Operating Margin:        
 GAAP operating margin - current guidance 19.1%  19.4%     
 Equity-based compensation 6.7%  6.6%     
 Adjusted operating margin(1) - current guidance 25.8%  26.0%     
          
 GAAP operating margin - previous guidance 18.8%  19.4%     
 Equity-based compensation 6.7%  6.6%     
 Adjusted operating margin(1) - previous guidance 25.5%  26.0%     
          
 Diluted earnings per share (EPS):        
 GAAP EPS - current guidance$1.61  $1.63  18% 20% 
 Equity-based compensation, net of tax 0.58   0.58      
 Excess tax benefit on stock vesting (0.07)  (0.07)     
 Adjusted EPS(1) - current guidance$ 2.12  $ 2.14  20% 22% 
          
 GAAP EPS - previous guidance$1.50  $1.56      
 Equity-based compensation, net of tax 0.57   0.57      
 Excess tax benefit on stock vesting (0.07)  (0.07)     
 Adjusted EPS(1) - previous guidance$2.00  $2.06      
          
          
 (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 these 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. We note in particular that the severity, duration and ultimate impact of the COVID-19 pandemic are difficult to predict at this time. 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 its 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, financial results will be held today, October 26, 2021, 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.

Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 6277541 or via the web at ir.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ fourth quarter 2021 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, 2021.

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 and on-premise 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 “2021 Guidance” and “Guideposts,” any statements about the future effect of the COVID-19 pandemic on our business, customers or the global economy, our business prospects following the pandemic, 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: 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; risks related to transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription/cloud-based software-as-a service model; disruption in the retail sector; the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; 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, 2020, 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, 
  2021  2020  2021  2020 
  (unaudited)  (unaudited)  (unaudited)  (unaudited) 
Revenue:                
Cloud subscriptions $32,196  $21,064  $87,434  $56,827 
Software license  8,461   13,233   25,122   28,649 
Maintenance  34,479   37,305   108,370   108,947 
Services  88,172   73,470   253,234   232,654 
Hardware  5,877   4,685   17,989   12,213 
Total revenue  169,185   149,757   492,149   439,290 
Costs and expenses:                
Cost of software license  690   527   1,802   1,673 
Cost of cloud subscriptions, maintenance and services  70,813   64,672   214,394   201,382 
Research and development  23,372   20,454   70,845   63,713 
Sales and marketing  14,057   11,399   41,203   34,196 
General and administrative  15,928   15,536   50,579   45,666 
Depreciation and amortization  1,917   2,193   6,136   6,796 
Total costs and expenses  126,777   114,781   384,959   353,426 
Operating income  42,408   34,976   107,190   85,864 
Other (loss) income, net  (42)  (891)  (29)  371 
Income before income taxes  42,366   34,085   107,161   86,235 
Income tax provision  5,712   9,119   17,271   19,535 
Net income $36,654  $24,966  $89,890  $66,700 
                 
Basic earnings per share $0.58  $0.39  $1.42  $1.05 
Diluted earnings per share $0.57  $0.39  $1.40  $1.04 
                 
Weighted average number of shares:                
Basic  63,363   63,524   63,514   63,541 
Diluted  64,238   64,427   64,339   64,298 


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2021  2020  2021  2020 
                 
Operating income $42,408  $34,976  $107,190  $85,864 
Equity-based compensation (a)  10,573   9,012   31,333   24,068 
Purchase amortization (c)  50   107   264   324 
Adjusted operating income (Non-GAAP) $53,031  $44,095  $138,787  $110,256 
                 
                 
Income tax provision $5,712  $9,119  $17,271  $19,535 
Equity-based compensation (a)  1,503   898   4,399   2,547 
Tax benefit of stock awards vested (b)  312   119   4,369   3,861 
Purchase amortization (c)  12   27   65   81 
Adjusted income tax provision (Non-GAAP) $7,539  $10,163  $26,104  $26,024 
                 
                 
Net income $36,654  $24,966  $89,890  $66,700 
Equity-based compensation (a)  9,070   8,114   26,934   21,521 
Tax benefit of stock awards vested (b)  (312)  (119)  (4,369)  (3,861)
Purchase amortization (c)  38   80   199   243 
Adjusted net income (Non-GAAP) $45,450  $33,041  $112,654  $84,603 
                 
                 
Diluted EPS $0.57  $0.39  $1.40  $1.04 
Equity-based compensation (a)  0.14   0.13   0.42   0.33 
Tax benefit of stock awards vested (b)  -  -   (0.07)  (0.06)
Purchase amortization (c)  -  -   -  - 
Adjusted diluted EPS (Non-GAAP) $0.71  $0.51  $1.75  $1.32 
                 
Fully diluted shares  64,238   64,427   64,339   64,298 

(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 this 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, 
  2021  2020  2021  2020 
                 
Cost of services $3,977  $2,695  $10,769  $7,306 
Research and development  2,139   1,863   6,247   4,926 
Sales and marketing  1,073   919   3,198   2,478 
General and administrative  3,384   3,535   11,119   9,358 
Total equity-based compensation $10,573  $9,012  $31,333  $24,068 

(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 excluded 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 excluded 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, 2021  December 31, 2020 
  (unaudited)     
ASSETS        
Current assets:        
Cash and cash equivalents $246,445  $204,705 
Accounts receivable, net of allowance of $3,930 and $3,497, at September 30, 2021 and December 31, 2020, respectively  115,344   109,202 
Prepaid expenses and other current assets  23,878   20,134 
Total current assets  385,667   334,041 
         
Property and equipment, net  14,272   17,903 
Operating lease right-of-use assets  27,602   31,470 
Goodwill, net  62,242   62,252 
Deferred income taxes  5,939   5,760 
Other assets  18,561   13,986 
Total assets $514,283  $465,412 
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $21,647  $17,805 
Accrued compensation and benefits  51,626   41,962 
Accrued and other liabilities  20,589   21,181 
Deferred revenue  136,452   114,164 
Income taxes payable  2,548   1,874 
Total current liabilities  232,862   196,986 
         
Operating lease liabilities, long-term  23,881   27,843 
Other non-current liabilities  18,913   21,686 
         
Shareholders' equity:        
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2021 and 2020  -   - 
Common stock, $0.01 par value; 200,000,000 shares authorized; 63,281,757 and 63,527,186 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively  633   635 
Retained earnings  257,507   236,524 
Accumulated other comprehensive loss  (19,513)  (18,262)
Total shareholders' equity  238,627   218,897 
Total liabilities and shareholders' equity $514,283  $465,412 


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)

  Nine Months Ended September 30, 
  2021  2020 
  (unaudited)  (unaudited) 
Operating activities:        
Net income $89,890  $66,700 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization  6,136   6,796 
Equity-based compensation  31,333   24,068 
Loss on disposal of equipment  14   15 
Deferred income taxes  (213)  2,409 
Unrealized foreign currency (gain) loss  (949)  415 
Changes in operating assets and liabilities:        
Accounts receivable, net  (7,296)  (3,799)
Other assets  (8,328)  2,331 
Accounts payable, accrued and other liabilities  13,429   (15,446)
Income taxes  (2,965)  547 
Deferred revenue  24,029   18,832 
Net cash provided by operating activities  145,080   102,868 
         
Investing activities:        
Purchase of property and equipment  (2,158)  (1,928)
Net cash used in investing activities  (2,158)  (1,928)
         
Financing activities:        
Purchase of common stock  (100,242)  (43,523)
Net cash used in financing activities  (100,242)  (43,523)
         
Foreign currency impact on cash  (940)  (1,841)
         
Net change in cash and cash equivalents  41,740   55,576 
Cash and cash equivalents at beginning of period  204,705   110,678 
Cash and cash equivalents at end of period $246,445  $166,254 


MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1.   Continuing Impact of COVID-19:

Regarding the impact of the COVID-19 pandemic, we remain cautious about the global recovery, which we expect to be protracted.

Despite the COVID-19 pandemic, our results for the first nine months exceeded our expectations due to solid demand for our cloud solutions. Our solutions are mission critical, supporting complex global supply chains. Favorable secular tailwinds, such as the digital transformation of businesses in manufacturing, wholesale and retail, coupled with our commitment to investing in organic innovation to deliver leading cloud supply chain, inventory and omnichannel commerce solutions, are in synergistic alignment with current market demand. This alignment contributed to higher demand and strong win rates for our solutions for the period.

We remain committed to investing in our business to drive customer success and expand our total addressable market, which we believe will position us well to achieve long-term sustainable growth and earnings.

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

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr  2nd Qtr  3rd Qtr  YTD 
GAAP Diluted EPS$0.35  $0.30  $0.39  $0.32  $1.36  $0.35  $0.48  $0.57  $1.40 
Adjustments to GAAP:                                   
Equity-based compensation 0.10   0.10   0.13   0.13   0.46   0.13   0.14   0.14   0.42 
Tax benefit of stock awards vested (0.06)  -   -   -   (0.06)  (0.06)  (0.01)  -   (0.07)
Purchase amortization -   -   -   -   -   -  -   -   - 
Adjusted Diluted EPS$0.40  $0.40  $0.51  $0.45  $1.76  $0.43  $0.61  $0.71  $1.75 
Fully Diluted Shares 64,342   64,126   64,427   64,484   64,333   64,466   64,276   64,238   64,339 

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

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr  2nd Qtr  3rd Qtr  YTD 
Revenue: 
Americas$123,146  $107,368  $121,168  $114,257  $465,939  $122,813  $132,308  $135,233  $390,354 
EMEA 24,313   21,558   21,721   25,990   93,582   28,434   27,190   27,402   83,026 
APAC 6,444   6,704   6,868   6,835   26,851   5,603   6,616   6,550   18,769 
 $153,903  $135,630  $149,757  $147,082  $586,372  $156,850  $166,114  $169,185  $492,149 
                                    
GAAP Operating Income: 
Americas$16,282  $18,984  $27,296  $18,547  $81,109  $16,116  $28,590  $29,727  $74,433 
EMEA 6,313   5,515   5,319   7,490   24,637   8,374   8,643   10,485   27,502 
APAC 1,601   2,193   2,361   2,160   8,315   935   2,124   2,196   5,255 
 $24,196  $26,692  $34,976  $28,197  $114,061  $25,425  $39,357  $42,408  $107,190 
                                    
Adjustments (pre-tax): 
Americas:                                   
Equity-based
  compensation
$7,564  $7,492  $9,012  $9,287  $33,355  $10,051  $10,709  $10,573  $31,333 
Purchase amortization 107   110   107   105   429   107   107   50   264 
 $7,671  $7,602  $9,119  $9,392  $33,784  $10,158  $10,816  $10,623  $31,597 
                                    
                                    
Adjusted non-GAAP Operating Income: 
Americas$23,953  $26,586  $36,415  $27,939  $114,893  $26,274  $39,406  $40,350  $106,030 
EMEA 6,313   5,515   5,319   7,490   24,637   8,374   8,643   10,485   27,502 
APAC 1,601   2,193   2,361   2,160   8,315   935   2,124   2,196   5,255 
 $31,867  $34,294  $44,095  $37,589  $147,845  $35,583  $50,173  $53,031  $138,787 
                                    

4.   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):

                                    
 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr  2nd Qtr  3rd Qtr  YTD 
Revenue$(988) $(777) $1,165  $1,946  $1,346  $2,932  $3,209  $823  $6,964 
Costs and expenses (996)  (1,430)  291   918   (1,217)  2,000   2,442   551   4,993 
Operating income 8   653   874   1,028   2,563   932   767   272   1,971 
Foreign currency gains (losses)
  in other income
 1,348   (193)  (913)  (639)  (397)  (287)  315   (30)  (2)
 $1,356  $460  $(39) $389  $2,166  $645  $1,082  $242  $1,969 

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):

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr  2nd Qtr  3rd Qtr  YTD 
Operating income$308  $895  $601  $445  $2,249  $79  $(294) $(37) $(252)
Foreign currency gains
  (losses) in other income
 1,450   262   (1,165)  (381)  166   315   535   3   853 
Total impact of changes in the
  Indian Rupee
$1,758  $1,157  $(564) $64  $2,415  $394  $241  $(34) $601 

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

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr  2nd Qtr  3rd Qtr  YTD 
Interest income$68  $28  $8  $(6) $98  $(15) $(10) $(9) $(34)
Foreign currency gains (losses) 1,348   (193)  (913)  (639)  (397)  (287)  315   (30)  (2)
Other non-operating
  income (expense)
 4   7   14   (11)  14   9   1   (3)  7 
Total other income (loss)$1,420  $(158) $(891) $(656) $(285) $(293) $306  $(42) $(29)

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

 2020  2021             
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  Full Year  1st Qtr  2nd Qtr  3rd Qtr  YTD 
Capital expenditures$1,245  $507  $176  $802  $2,730  $569  $602  $987  $2,158 

7.   Stock Repurchase Activity (in thousands):

 2020  2021 
 1st Qtr  2nd Qtr  3rd Qtr  4th Qtr Full Year  1st Qtr  2nd Qtr  3rd Qtr  YTD 
Shares purchased under publicly announced buy-back program 337   -   -    -   337   214   244   123   581 
Shares withheld for taxes due upon vesting of restricted stock units 219   2   4   -   225   172   1   5   178 
Total shares purchased 556   2   4   -   562   386   245   128   759 
                                    
Total cash paid for shares purchased under publicly announced buy-back program$25,000  $-  $-  $-  $25,000  $26,988  $32,894  $19,994  $79,876 
Total cash paid for shares withheld for taxes due upon vesting of restricted stock units 18,032   123   368   38   18,561   19,414   190   762   20,366 
Total cash paid for shares repurchased$43,032  $123  $368  $38  $43,561  $46,402  $33,084  $20,756  $100,242 

8.   Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Our reported performance obligations primarily represent cloud 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). Our deferred revenue on the balance sheet primarily relates to our maintenance contracts, which 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,
2020
  June 30,
2020
  September 30,
2020
  December 31,
2020
  March 31,
2021
  June 30,
2021
  September 30,
2021
 
Remaining Performance Obligations$202,793  $225,470  $257,287  $308,761  $421,196  $488,718  $573,712 

9.   Guideposts

The following table shows (i) our guideposts provided on February 2, 2021, for cloud revenue and remaining performance obligations (“RPO”) for each year 2021 through 2023, and (ii) our current guideposts for each year 2021 through 2024.

 Feb 2, 2021 Guideposts  Current Guideposts  
 ($'s in millions)  ($'s in millions)  
                                     
 Cloud Revenue  Cloud Revenue  
 Year Low  Mid  High  %
Growth
(1)
  Year Low  Mid  High  %
Growth
(1)
  
 2021 $108  $109  $110   37% 2021 $120  $121  $121   51% 
 2022 $135  $143  $150   31% 2022 $160  $163  $165   35% 
 2023 $190  $203  $215   42% 2023 $220  $230  $240   42% 
 2024 n/a  n/a  n/a  n/a  2024 $310  $328  $345   42% 
                                     
 Remaining Performance Obligations  Remaining Performance Obligations  
 Year Low  Mid  High  %
Growth
(1)
  Year Low  Mid  High  %
Growth
(1)
  
 2021 $450  $500  $550   62% 2021 $675  $688  $700   123% 
 2022 $625  $700  $775   40% 2022 $950  $1,000  $1,050   45% 
 2023 $850  $950  $1,050   36% 2023 $1,250  $1,325  $1,400   33% 
 2024 n/a  n/a  n/a  n/a  2024 $1,600  $1,700  $1,800   28% 
                                     
 (1) Year-over-year percentage growth is calculated based on the forecasted mid-points.  
                                     


Contact:Michael BauerRick Fernandez
 Senior Director,
Investor Relations
Director, 
Corporate Communications
 Manhattan Associates, Inc.Manhattan Associates, Inc.
 678-597-7538678-597-6988
 mbauer@manh.comrfernandez@manh.com