Manhattan Associates (MANH) 10-Q 28 Jul 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Jul. 21, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Registrant Name	MANHATTAN ASSOCIATES, INC.
Trading Symbol	MANH
Entity Central Index Key	0001056696
Current Fiscal Year End Date	--12-31
Entity Incorporation, State or Country Code	2Q
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		61,668,802
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-23999
Entity Tax Identification Number	58-2373424
Entity Address, Address Line One	2300 Windy Ridge Parkway
Entity Address, Address Line Two	Tenth Floor
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	770
Local Phone Number	955-7070
Title of each class	Common stock
Name of each exchange on which registered	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 153,294	$ 225,463
Accounts receivable, net of allowance of $5,903 and $6,009, at June 30, 2023 and December 31, 2022, respectively	178,453	166,767
Prepaid expenses and other current assets	28,272	23,145
Total current assets	360,019	415,375
Property and equipment, net	11,754	12,803
Operating lease right-of-use assets	16,052	17,794
Goodwill, net	62,233	62,230
Deferred income taxes	48,259	37,206
Other assets	28,677	24,770
Total assets	526,994	570,178
Current liabilities:
Accounts payable	26,124	25,701
Accrued compensation and benefits	51,937	54,469
Accrued and other liabilities	25,339	24,569
Deferred revenue	227,100	208,807
Income taxes payable	109	2,049
Total current liabilities	330,609	315,595
Operating lease liabilities, long-term	12,459	14,065
Other non-current liabilities	13,376	13,718
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2023 and 2022
Common stock, $0.01 par value; 200,000,000 shares authorized; 61,668,512 and 62,191,570 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	617	621
Retained earnings	196,673	253,711
Accumulated other comprehensive loss	(26,740)	(27,532)
Total shareholders' equity	170,550	226,800
Total liabilities and shareholders' equity	$ 526,994	$ 570,178

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 5,903	$ 6,009
Preferred stock, par value
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	61,668,512	62,191,570
Common stock, shares outstanding	61,668,512	62,191,570

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total revenue	$ 231,016	$ 191,924	$ 452,029	$ 370,880
Total costs	108,813	88,646	212,442	172,073
Research and development	31,600	27,924	62,394	55,379
Sales and marketing	18,563	17,749	36,628	32,139
General and administrative	20,237	18,606	40,190	36,571
Depreciation and amortization	1,320	1,746	2,807	3,493
Total costs and expenses	180,533	154,671	354,461	299,655
Operating income	50,483	37,253	97,568	71,225
Other income, net	1,041	2,243	1,184	2,981
Income before income taxes	51,524	39,496	98,752	74,206
Income tax provision	11,904	8,671	20,341	12,789
Net income	$ 39,620	$ 30,825	$ 78,411	$ 61,417
Basic earnings per share	$ 0.64	$ 0.49	$ 1.26	$ 0.97
Diluted earnings per share	$ 0.63	$ 0.49	$ 1.25	$ 0.97
Weighted average number of shares:
Basic	61,862	62,954	62,036	63,083
Diluted	62,432	63,419	62,599	63,644
Cloud Subscriptions
Total revenue	$ 60,943	$ 42,203	$ 118,163	$ 79,500
Software License
Total revenue	3,745	5,125	9,097	13,483
Total costs	368	880	670	1,282
Maintenance
Total revenue	35,826	35,993	71,476	71,295
Services
Total revenue	124,609	100,941	240,779	190,859
Hardware
Total revenue	5,893	7,662	12,514	15,743
Cloud Subscriptions, Maintenance and Services
Total costs	$ 108,445	$ 87,766	$ 211,772	$ 170,791

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 39,620	$ 30,825	$ 78,411	$ 61,417
Foreign currency translation adjustment	(16)	(4,085)	792	(5,215)
Comprehensive income	$ 39,604	$ 26,740	$ 79,203	$ 56,202

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities:
Net income	$ 78,411	$ 61,417
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,807	3,493
Equity-based compensation	34,568	29,676
Loss (gain) on disposal of equipment	22	(92)
Deferred income taxes	(11,038)	(12,535)
Unrealized foreign currency loss (gain)	1,577	(2,087)
Changes in operating assets and liabilities:
Accounts receivable, net	(11,024)	(11,703)
Other assets	(5,825)	(6,697)
Accounts payable, accrued and other liabilities	(2,593)	(587)
Income taxes	(5,359)	(3,519)
Deferred revenue	17,740	27,116
Net cash provided by operating activities	99,286	84,482
Investing activities:
Purchase of property and equipment	(1,675)	(2,243)
Net cash used in investing activities	(1,675)	(2,243)
Financing activities:
Repurchase of common stock	(169,115)	(127,787)
Net cash used in financing activities	(169,115)	(127,787)
Foreign currency impact on cash	(665)	(4,387)
Net change in cash and cash equivalents	(72,169)	(49,935)
Cash and cash equivalents at beginning of period	225,463	263,706
Cash and cash equivalents at end of period	$ 153,294	$ 213,771

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2021	$ 250,644	$ 631		$ 269,841	$ (19,828)
Balance (in shares) at Dec. 31, 2021		63,154,494
Repurchase of common stock	(127,787)	$ (10)	$ (29,670)	(98,107)
Repurchase of common stock (in shares)		(1,006,894)
Restricted stock units issuance		$ 6	(6)
Restricted stock units issuance (in shares)		570,913
Equity-based compensation	29,676		29,676
Foreign currency translation adjustment	(5,215)				(5,215)
Net income	61,417			61,417
Balance at Jun. 30, 2022	208,735	$ 627		233,151	(25,043)
Balance (in shares) at Jun. 30, 2022		62,718,513
Balance at Mar. 31, 2022	217,136	$ 631		237,463	(20,958)
Balance (in shares) at Mar. 31, 2022		63,113,221
Repurchase of common stock	(50,679)	$ (5)	(15,537)	(35,137)
Repurchase of common stock (in shares)		(420,785)
Restricted stock units issuance		$ 1	(1)
Restricted stock units issuance (in shares)		26,077
Equity-based compensation	15,538		15,538
Foreign currency translation adjustment	(4,085)				(4,085)
Net income	30,825			30,825
Balance at Jun. 30, 2022	208,735	$ 627		233,151	(25,043)
Balance (in shares) at Jun. 30, 2022		62,718,513
Balance at Dec. 31, 2022	226,800	$ 621		253,711	(27,532)
Balance (in shares) at Dec. 31, 2022		62,191,570
Repurchase of common stock	(169,115)	$ (10)	(33,656)	(135,449)
Repurchase of common stock (in shares)		(1,108,415)
Restricted stock units issuance		$ 6	(6)
Restricted stock units issuance (in shares)		585,357
Excise tax accrued	(906)		(906)
Equity-based compensation	34,568		34,568
Foreign currency translation adjustment	792				792
Net income	78,411			78,411
Balance at Jun. 30, 2023	170,550	$ 617	0	196,673	(26,740)
Balance (in shares) at Jun. 30, 2023		61,668,512
Balance at Mar. 31, 2023	181,072	$ 620		207,176	(26,724)
Balance (in shares) at Mar. 31, 2023		62,026,840
Repurchase of common stock	(67,427)	$ (3)	(17,301)	(50,123)
Repurchase of common stock (in shares)		(385,047)
Restricted stock units issuance (in shares)		26,719
Excise tax on net stock repurchases	(627)		(627)
Equity-based compensation	17,928		17,928
Foreign currency translation adjustment	(16)				(16)
Net income	39,620			39,620
Balance at Jun. 30, 2023	$ 170,550	$ 617	$ 0	$ 196,673	$ (26,740)
Balance (in shares) at Jun. 30, 2023		61,668,512

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 39,620	$ 30,825	$ 78,411	$ 61,417

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	1. Basis of Presentation and Principles of Consolidation Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Manhattan Associates, Inc. and its subsidiaries (the “Company,” “we,” “us,” “our,” or “Manhattan”) have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information, with the instructions to Form 10-Q and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of our financial position at June 30, 2023, the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year or any other interim period. These statements should be read in conjunction with our audited consolidated financial statements and management’s discussion and analysis included in our annual report on Form 10-K for the year ended December 31, 2022 . Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and the accounts of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
Revenue Recognition [Abstract]
Revenue Recognition	2. Revenue Recognition We recognize revenue when we transfer control of the promised products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. We derive our revenue from cloud subscriptions, software licenses, customer support services and software enhancements (“maintenance”), implementation and training services, and sales of hardware. We exclude sales and usage-based taxes from revenue. Nature of Products and Services Cloud subscriptions includes software as a service (SaaS) and arrangements which provide customers with the right to use our software within a cloud environment that we provide and manage, where the customer does not have the right to take possession of the software without significant penalty. SaaS and hosting revenues are recognized ratably over the contract period. For contracts that include a perpetual license and hosting services, we generally consider the arrangement as an overall service, recognized over the initial hosting term. The software license fee typically due at the outset of the arrangement is not payable again if the customer renews the hosting services, so that the customer’s option to renew the hosting services is a material right, the revenue from which, if the option is exercised, we will recognize over the applicable renewal period. Managed services account for less than 2 % of our Cloud subscription contracts. Our perpetual software licenses provide the customer with a right to use the software as it exists at the time of purchase. We recognize revenue for distinct software licenses once the license period has begun and we have made the software available to the customer. Our perpetual software licenses are typically sold with maintenance under which we provide a comprehensive 24 hours per day, 365 days per year program that provides customers with software upgrades, when and if available, which include additional or improved functionality and technological advances incorporating emerging supply chain and industry initiatives. Revenue related to maintenance is generally paid in advance and recognized ratably over the term of the agreement, typically twelve months. Perpetual software license revenue accounts for approximately 2 % of total revenue. Our services revenue consists of fees generated from implementation, training, and application managed services, including reimbursements of out-of-pocket expenses in connection with our implementation services. Implementation services include system planning, design, configuration, testing, and other software implementation support, and are typically optional and distinct from our software. Following implementation, customers who have purchased perpetual licenses may purchase application managed services to support and maintain our software. Fees for our services are separately priced and are generally billed on an hourly basis, and revenue is recognized over time as the services are performed. In certain situations, we render professional services under agreements based upon a fixed fee for portions of or all of the engagement. Revenue related to fixed-fee-based services contracts is recognized over time based on the proportion performed. As part of a complete solution, our customers periodically purchase hardware products developed and manufactured by third parties from us for use with the software licenses purchased from us. These products include computer hardware, radio frequency terminal networks, radio frequency identification (RFID) chip readers, bar code printers and scanners, and other peripherals. As we do not physically control the hardware that we sell, we are acting as an agent in the transaction and recognize our hardware revenue net of related cost. We recognize hardware revenue when control is transferred to the customer upon shipment. Significant Judgments Our customer contracts include the sale of multiple SaaS services or licensed products. Judgement is required to determine whether each service or product sold is a distinct performance obligation that should be accounted for separately. We allocate the transaction price to the distinct performance obligations based on relative standalone selling price (“SSP”). We estimate SSP based on the prices we charge our customers or by using other information such as market conditions and other observable inputs. However, the selling price of our software licenses is highly variable. Thus, we estimate SSP for software licenses using the residual approach, determined based on total transaction price less the SSP of other goods and services promised in the contract. Contract Balances Timing of invoicing to customers may differ from timing of revenue recognition. Payment terms for our software licenses vary. We have an established history of collecting under the terms of our software license contracts without providing refunds or concessions to our customers. Cloud subscriptions and maintenance are typically billed annually in advance. We typically bill our professional services monthly as performed. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with predictable ways to purchase our software and services, not to provide or receive financing. Additionally, we are applying the practical expedient to exclude from consideration any contracts with payment terms of one year or less as we rarely offer terms extending beyond one year or invoice more than a year in advance. Deferred revenue mainly represents amounts collected prior to having completed performance of cloud subscriptions, maintenance, and professional services. In the three and six months ended June 30, 2023 , we recognized $ 59.4 million and $ 142.7 million of revenue that was included in the deferred revenue balance as of December 31, 2022. In the three months ended June 30, 2023 , we recognized $ 89.4 million of revenue that was included in the deferred revenue balance as of March 31, 2023. Remaining Performance Obligations As of June 30, 2023 , approximately $ 1.2 billion of revenue, approximately 98 % of which is cloud-native subscriptions, is expected to be recognized from remaining performance obligations (“RPO”) with a non-cancelable term greater than 1 year (including deferred revenue as well as amounts that are expected to be invoiced and recognized as revenue in future periods). We expect to recognize revenue on approximately 40 % of these remaining performance obligations over the next 24 months with the balance recognized thereafter. We have elected not to provide disclosures regarding remaining performance obligations for contracts with a term of 1 year or less. Returns and Allowances We have not experienced significant returns or warranty claims to date and, as a result, have no t recorded a provision for the cost of returns and product warranty claims. We record an allowance for credit losses based on historical experience of write-offs and a detailed assessment of accounts receivable. Additions to the allowance for credit losses generally represent a sales allowance on services revenue, which are recorded to operations as a reduction to services revenue. The total amount charged to operations was $ 0.7 million and $ 0.2 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 1.2 million for both the six months ended June 30, 2023 and 2022. Our analysis involved utilizing a model of internal historical losses data. In estimating the allowance for credit losses, we considered the age of the accounts receivable, our historical write-offs, and the historical creditworthiness of the customer, among other factors. Should any of these factors change, the estimates made by us will also change accordingly, which could affect the level of our future allowances. We also analyzed future expected credit losses given ever present changes to future risks in projected economic conditions and future risks of customer collection. Deferred Commissions We consider sales commissions to be incremental costs of obtaining a contract with a customer. We defer and recognize an asset for sales commissions related to performance obligations with an expected period of benefit of more than one year. We apply the practical expedient to expense sales commissions when the amortization period would have been one year or less. Deferred commissions were $ 35.1 million as of June 30, 2023 , of which $ 26.2 million is included in other assets and $ 8.9 million is included in prepaid expenses. Sales commission expense is included in Sales and Marketing expense in the accompanying Consolidated Statements of Income. Amortization of sales commissions was $ 2.3 million and $ 1.9 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 4.6 million and $ 3.7 million for the six months ended June 30, 2023 and 2022 , respectively. No impairment losses were recognized during the periods.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	3. Fair Value Measurement We measure our investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is affected by a number of factors, including the type of asset or liability and its characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1–Quoted prices in active markets for identical instruments. • Level 2–Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. Unrealized holding gains and losses are reflected as a net amount in a separate component of shareholders’ equity until realized. For the purposes of computing realized gains and losses, cost is determined on a specific identification basis. At June 30, 2023, our cash and cash equivalents were $ 70.4 million and $ 82.9 million, respectively. We had neither short-term investments nor long-term investments at June 30, 2023 . Cash equivalents consist of highly liquid money market funds. For money market funds, we use quoted prices from active markets that are classified at Level 1, the highest level of observable input in the disclosure hierarchy framework. We had no investments classified at Level 2 or Level 3 at June 30, 2023 .

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	4. Equity-Based Compensation We granted 11,107 and 23,923 restricted stock units (RSUs) during the three months ended June 30, 2023 and 2022 , respectively, and granted 581,333 and 677,129 RSUs during the six months ended June 30, 2023 and 2022, respectively. Equity-based compensation expense related to RSUs was $ 17.9 million and $ 15.5 million during the three months ended June 30, 2023 and 2022, respectively, and $ 34.6 million and $ 29.7 million during the six months ended June 30, 2023 and 2022, respectively. We present below a summary of changes during the six months ended June 30, 2023 in our unvested units of restricted stock: Number of shares/units Outstanding at December 31, 2022 1,427,831 Granted 581,333 Vested ( 585,357 ) Forfeited ( 10,608 ) Outstanding at June 30, 2023 1,413,199

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes Our effective tax rate was 23.1 % and 22.0 % for the three months ended June 30, 2023 and 2022, respectively, and 20.6 % and 17.2 % for the six months ended June 30, 2023 and 2022, respectively. The increase in the effective tax rate for three months ended June 30, 2023 is due to a decrease of favorable tax contingency reserve settlements. The increase in the effective tax rate for the six months ended June 30, 2023 is due to a net decrease of excess tax benefits on restricted stock vesting and a decrease of favorable tax contingency reserve settlements. We apply the provisions for income taxes related to, among other things, accounting for uncertain tax positions and disclosure requirements in accordance with Accounting Standards Classification (ASC) 740, Income Taxes. For the three months ended June 30, 2023 , our uncertain tax positions decreased by a net $ 0.3 million due to the settlement of a tax contingency reserve. We conduct business globally and, as a result, file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, Manhattan is subject to examination by taxing authorities throughout the world. We are no longer subject to U.S. federal, substantially all state and local income tax examinations and substantially all non-U.S. income tax examinations for years before 2010. Under the Inflation Reduction Act of 2022, we are subject to a 1% excise tax on stock repurchases, net of stock issuances, beginning in 2023. We have included the tax in the cost of our stock repurchases as a reduction of shareholders' equity.

Basic and Diluted Net Income Pe

Basic and Diluted Net Income Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Basic and Diluted Net Income Per Share	6. Basic and Diluted Net Income Per Share Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented. Diluted net income per share is computed using net income divided by Weighted Shares and the treasury stock method effect of common equivalent shares (CESs) outstanding for each period presented. In the following table, we present a reconciliation of earnings per share and the shares used in the computation of earnings per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except per share data) (in thousands, except per share data) Net income $ 39,620 $ 30,825 $ 78,411 $ 61,417 Earnings per share: Basic $ 0.64 $ 0.49 $ 1.26 $ 0.97 Effect of CESs ( 0.01 ) - ( 0.01 ) - Diluted $ 0.63 $ 0.49 $ 1.25 $ 0.97 Weighted average number of shares: Basic 61,862 62,954 62,036 63,083 Effect of CESs 570 465 563 561 Diluted 62,432 63,419 62,599 63,644 The number of anti-dilutive CESs during the three and six months ended June 30, 2023 and 2022 was immaterial.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	7. Contingencies From time to time, we may be involved in litigation relating to claims arising out of the ordinary course of business, and occasionally legal proceedings not in the ordinary course. Many of our installations involve products that are critical to the operations of our clients’ businesses. Any failure in one of our products could result in a claim for substantial damages against us, regardless of our responsibility for such failure. Although we attempt to limit contractually our liability for damages arising from product failures or negligent acts or omissions, there can be no assurance that the limitations of liability set forth in our contracts will be enforceable in all instances. We are not currently a party to any legal proceedings in the ordinary course of business or other legal proceedings the result of which we believe is likely to have a material adverse impact on our business, financial position, results of operations, or cash flows. We expense legal costs associated with loss contingencies as such legal costs are incurred.

Reportable Segments

Reportable Segments	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Reportable Segments	8. Reportable Segments We manage our business by geographic region and have three geographic reportable segments: North and Latin America (the “Americas”); Europe, the Middle East and Africa (EMEA); and Asia Pacific (APAC). All segments derive revenue from the sale and implementation of our supply chain commerce solutions. The individual products sold by the segments are similar in nature and are all designed to help companies manage the effectiveness and efficiency of their supply chain commerce. We use the same accounting policies for each reportable segment. The chief operating decision maker evaluates performance based on revenue and operating results for each reportable segment. The Americas segment charges royalty fees to the other segments based on software licenses and cloud subscriptions sold by those reportable segments. The royalties, which totaled approximately $ 3.1 million and $ 1.9 million for the three months ended June 30, 2023 and 2022, respectively, and $ 6.5 million and $ 4.5 million for the three and six months ended June 30, 2023 and 2022, respectively, are included in costs of revenue for each segment with a corresponding reduction in the Americas segment’s cost of revenue. The revenues represented below are from external customers only. The geography-based costs consist of costs for professional services personnel, direct sales and marketing expenses, infrastructure costs to support the employee and customer base, billing and financial systems, management and general and administrative support. Certain corporate expenses included in the Americas segment are not charged to the other segments. Such expenses include research and development, certain marketing and general and administrative costs that support the global organization, and the amortization of acquired developed technology. Costs in the Americas segment include all research and development costs, including the costs associated with our operations in India. In accordance with the segment reporting topic of the FASB Accounting Standards Codification, we present below certain financial information by reportable segment for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 2022 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 49,612 $ 9,782 $ 1,549 $ 60,943 $ 36,184 $ 4,947 $ 1,072 $ 42,203 Software license 2,468 501 776 3,745 3,459 1,262 404 5,125 Maintenance 28,571 4,902 2,353 35,826 29,126 4,738 2,129 35,993 Services 92,743 25,638 6,228 124,609 75,608 20,624 4,709 100,941 Hardware 5,814 79 - 5,893 7,619 43 - 7,662 Total revenue 179,208 40,902 10,906 231,016 151,996 31,614 8,314 191,924 Costs and Expenses: Cost of revenue 81,356 22,592 4,865 108,813 67,062 17,700 3,884 88,646 Operating expenses 64,356 4,626 1,418 70,400 58,863 4,331 1,085 64,279 Depreciation and amortization 1,170 128 22 1,320 1,564 160 22 1,746 Total costs and expenses 146,882 27,346 6,305 180,533 127,489 22,191 4,991 154,671 Operating income $ 32,326 $ 13,556 $ 4,601 $ 50,483 $ 24,507 $ 9,423 $ 3,323 $ 37,253 Six Months Ended June 30, 2023 2022 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 95,966 $ 19,111 $ 3,086 $ 118,163 $ 67,613 $ 9,849 $ 2,038 $ 79,500 Software license 5,054 1,851 2,192 9,097 7,461 5,261 761 13,483 Maintenance 56,987 9,760 4,729 71,476 57,083 9,631 4,581 71,295 Services 179,557 49,727 11,495 240,779 143,727 38,933 8,199 190,859 Hardware 12,403 111 - 12,514 15,652 91 - 15,743 Total revenue 349,967 80,560 21,502 452,029 291,536 63,765 15,579 370,880 Costs and Expenses: Cost of revenue 158,723 44,267 9,452 212,442 129,805 34,435 7,833 172,073 Operating expenses 126,724 9,724 2,764 139,212 112,704 9,068 2,317 124,089 Depreciation and amortization 2,547 220 40 2,807 3,127 322 44 3,493 Total costs and expenses 287,994 54,211 12,256 354,461 245,636 43,825 10,194 299,655 Operating income $ 61,973 $ 26,349 $ 9,246 $ 97,568 $ 45,900 $ 19,940 $ 5,385 $ 71,225 Cloud subscriptions revenue primarily relates to our Manhattan Active omnichannel, warehouse management solutions, and transportation management solutions for the six months ended June 30, 2023 . The majority of our software license revenue (over 75 %) relates to our warehouse management product group for the three and six months ended June 30, 2023. At June 30, 2023 , total assets for the Americas, EMEA and APAC segments were $ 424.1 million, $ 83.0 million and $ 19.9 million, respectively.

Basis of Presentation and Pri_2

Basis of Presentation and Principles of Consolidation (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Manhattan Associates, Inc. and its subsidiaries (the “Company,” “we,” “us,” “our,” or “Manhattan”) have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information, with the instructions to Form 10-Q and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of our financial position at June 30, 2023, the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year or any other interim period. These statements should be read in conjunction with our audited consolidated financial statements and management’s discussion and analysis included in our annual report on Form 10-K for the year ended December 31, 2022 .
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and the accounts of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Changes in Unvested Units of Restricted Stock	We present below a summary of changes during the six months ended June 30, 2023 in our unvested units of restricted stock: Number of shares/units Outstanding at December 31, 2022 1,427,831 Granted 581,333 Vested ( 585,357 ) Forfeited ( 10,608 ) Outstanding at June 30, 2023 1,413,199

Basic and Diluted Net Income _2

Basic and Diluted Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Reconciliation of Earnings per Share and Shares in Computation of Earnings Per Share	In the following table, we present a reconciliation of earnings per share and the shares used in the computation of earnings per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except per share data) (in thousands, except per share data) Net income $ 39,620 $ 30,825 $ 78,411 $ 61,417 Earnings per share: Basic $ 0.64 $ 0.49 $ 1.26 $ 0.97 Effect of CESs ( 0.01 ) - ( 0.01 ) - Diluted $ 0.63 $ 0.49 $ 1.25 $ 0.97 Weighted average number of shares: Basic 61,862 62,954 62,036 63,083 Effect of CESs 570 465 563 561 Diluted 62,432 63,419 62,599 63,644

Reportable Segments (Tables)

Reportable Segments (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Financial Information by Reportable Segment	In accordance with the segment reporting topic of the FASB Accounting Standards Codification, we present below certain financial information by reportable segment for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 2022 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 49,612 $ 9,782 $ 1,549 $ 60,943 $ 36,184 $ 4,947 $ 1,072 $ 42,203 Software license 2,468 501 776 3,745 3,459 1,262 404 5,125 Maintenance 28,571 4,902 2,353 35,826 29,126 4,738 2,129 35,993 Services 92,743 25,638 6,228 124,609 75,608 20,624 4,709 100,941 Hardware 5,814 79 - 5,893 7,619 43 - 7,662 Total revenue 179,208 40,902 10,906 231,016 151,996 31,614 8,314 191,924 Costs and Expenses: Cost of revenue 81,356 22,592 4,865 108,813 67,062 17,700 3,884 88,646 Operating expenses 64,356 4,626 1,418 70,400 58,863 4,331 1,085 64,279 Depreciation and amortization 1,170 128 22 1,320 1,564 160 22 1,746 Total costs and expenses 146,882 27,346 6,305 180,533 127,489 22,191 4,991 154,671 Operating income $ 32,326 $ 13,556 $ 4,601 $ 50,483 $ 24,507 $ 9,423 $ 3,323 $ 37,253 Six Months Ended June 30, 2023 2022 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 95,966 $ 19,111 $ 3,086 $ 118,163 $ 67,613 $ 9,849 $ 2,038 $ 79,500 Software license 5,054 1,851 2,192 9,097 7,461 5,261 761 13,483 Maintenance 56,987 9,760 4,729 71,476 57,083 9,631 4,581 71,295 Services 179,557 49,727 11,495 240,779 143,727 38,933 8,199 190,859 Hardware 12,403 111 - 12,514 15,652 91 - 15,743 Total revenue 349,967 80,560 21,502 452,029 291,536 63,765 15,579 370,880 Costs and Expenses: Cost of revenue 158,723 44,267 9,452 212,442 129,805 34,435 7,833 172,073 Operating expenses 126,724 9,724 2,764 139,212 112,704 9,068 2,317 124,089 Depreciation and amortization 2,547 220 40 2,807 3,127 322 44 3,493 Total costs and expenses 287,994 54,211 12,256 354,461 245,636 43,825 10,194 299,655 Operating income $ 61,973 $ 26,349 $ 9,246 $ 97,568 $ 45,900 $ 19,940 $ 5,385 $ 71,225

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation Of Revenue [Line Items]
Revenue expected to be recognized from remaining performance obligations	$ 1,200,000,000		$ 1,200,000,000
Percentage of revenue expected to be recognized from remaining performance obligations	98%		98%
Remaining performance obligation, explanation			We expect to recognize revenue on approximately 40% of these remaining performance obligations over the next 24 months with the balance recognized thereafter.
Percentage of expected revenue recognition			40%
Provision for cost of return and product warranty claims recorded	$ 0		$ 0
Allowance for credit losses recorded to operations	700,000	$ 200,000	$ 1,200,000	$ 1,200,000
Revenue, practical expedient, remaining performance obligation, description			We apply the practical expedient to expense sales commissions when the amortization period would have been one year or less.
Amortization of sales commissions	2,300,000	1,900,000	$ 4,600,000	3,700,000
Impairment losses	0	$ 0	0	$ 0
Balance as of December 31, 2022
Disaggregation Of Revenue [Line Items]
Deferred revenue recognized	59,400,000		142,700,000
Balance as of March 31, 2023
Disaggregation Of Revenue [Line Items]
Deferred revenue recognized	89,400,000
Sales Commission
Disaggregation Of Revenue [Line Items]
Deferred commissions	35,100,000		35,100,000
Sales Commission | Other Assets
Disaggregation Of Revenue [Line Items]
Deferred commissions	26,200,000		26,200,000
Sales Commission | Prepaid Expenses
Disaggregation Of Revenue [Line Items]
Deferred commissions	$ 8,900,000		$ 8,900,000
Cloud Subscriptions
Disaggregation Of Revenue [Line Items]
Maximum percentage of managed services			2%
Perpetual Software License Revenue | Sales Revenue, Net | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Total software revenue, perpetual software license percentage			2%

Revenue Recognition - Additio_2

Revenue Recognition - Additional Information (Detail 1)	Jun. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01
Disaggregation Of Revenue [Line Items]
Revenue recognized on remaining performance obligations period	24 months

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail)	Jun. 30, 2023 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Cash balance	$ 70,400,000
Cash equivalents	82,900,000
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Investments	0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Investments	$ 0

Leases - Summary of Operating L

Leases - Summary of Operating Lease Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Operating lease right-of-use assets	$ 16,052	$ 17,794
LIABILITIES
Operating lease liabilities, long-term	$ 12,459	$ 14,065

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock expense	$ 17.9	$ 15.5	$ 34.6	$ 29.7
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of restricted units granted in the period	11,107	23,923	581,333	677,129

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Changes in Unvested Units of Restricted Stock (Detail) - Restricted Stock Units - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, Outstanding at December 31, 2022			1,427,831
Number of units, Granted	11,107	23,923	581,333	677,129
Number of units, Vested			(585,357)
Number of units, Forfeited			(10,608)
Number of units, Outstanding at June 30, 2023	1,413,199		1,413,199

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	23.10%	22%	20.60%	17.20%
Uncertain tax positions decreased settlement			$ 0.3

Reconciliation of Earnings per

Reconciliation of Earnings per Share and Shares in Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 39,620	$ 30,825	$ 78,411	$ 61,417
Earnings per share:
Basic	$ 0.64	$ 0.49	$ 1.26	$ 0.97
Effect of CESs	(0.01)		(0.01)
Diluted	$ 0.63	$ 0.49	$ 1.25	$ 0.97
Weighted average number of shares:
Basic	61,862	62,954	62,036	63,083
Effect of CESs	570	465	563	561
Diluted	62,432	63,419	62,599	63,644

Reportable Segments - Additiona

Reportable Segments - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment			3
Total assets	$ 526,994		$ 526,994		$ 570,178
Warehouse Management Product Group | Product Concentration Risk | Sales Revenue, Net
Segment Reporting Information [Line Items]
Percentage of software license revenue	75%		75%
Americas
Segment Reporting Information [Line Items]
Americas royalty fees	$ 3,100	$ 1,900	$ 6,500	$ 4,500
Total assets	424,100		424,100
EMEA
Segment Reporting Information [Line Items]
Total assets	83,000		83,000
APAC
Segment Reporting Information [Line Items]
Total assets	$ 19,900		$ 19,900

Reportable Segments - Schedule

Reportable Segments - Schedule of Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 231,016	$ 191,924	$ 452,029	$ 370,880
Cost of revenue	108,813	88,646	212,442	172,073
Operating expenses	70,400	64,279	139,212	124,089
Depreciation and amortization	1,320	1,746	2,807	3,493
Total costs and expenses	180,533	154,671	354,461	299,655
Operating income	50,483	37,253	97,568	71,225
Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	60,943	42,203	118,163	79,500
Software License
Segment Reporting Information [Line Items]
Total revenue	3,745	5,125	9,097	13,483
Cost of revenue	368	880	670	1,282
Maintenance
Segment Reporting Information [Line Items]
Total revenue	35,826	35,993	71,476	71,295
Services
Segment Reporting Information [Line Items]
Total revenue	124,609	100,941	240,779	190,859
Hardware
Segment Reporting Information [Line Items]
Total revenue	5,893	7,662	12,514	15,743
Americas
Segment Reporting Information [Line Items]
Total revenue	179,208	151,996	349,967	291,536
Cost of revenue	81,356	67,062	158,723	129,805
Operating expenses	64,356	58,863	126,724	112,704
Depreciation and amortization	1,170	1,564	2,547	3,127
Total costs and expenses	146,882	127,489	287,994	245,636
Operating income	32,326	24,507	61,973	45,900
Americas | Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	49,612	36,184	95,966	67,613
Americas | Software License
Segment Reporting Information [Line Items]
Total revenue	2,468	3,459	5,054	7,461
Americas | Maintenance
Segment Reporting Information [Line Items]
Total revenue	28,571	29,126	56,987	57,083
Americas | Services
Segment Reporting Information [Line Items]
Total revenue	92,743	75,608	179,557	143,727
Americas | Hardware
Segment Reporting Information [Line Items]
Total revenue	5,814	7,619	12,403	15,652
EMEA
Segment Reporting Information [Line Items]
Total revenue	40,902	31,614	80,560	63,765
Cost of revenue	22,592	17,700	44,267	34,435
Operating expenses	4,626	4,331	9,724	9,068
Depreciation and amortization	128	160	220	322
Total costs and expenses	27,346	22,191	54,211	43,825
Operating income	13,556	9,423	26,349	19,940
EMEA | Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	9,782	4,947	19,111	9,849
EMEA | Software License
Segment Reporting Information [Line Items]
Total revenue	501	1,262	1,851	5,261
EMEA | Maintenance
Segment Reporting Information [Line Items]
Total revenue	4,902	4,738	9,760	9,631
EMEA | Services
Segment Reporting Information [Line Items]
Total revenue	25,638	20,624	49,727	38,933
EMEA | Hardware
Segment Reporting Information [Line Items]
Total revenue	79		111	91
APAC
Segment Reporting Information [Line Items]
Total revenue	10,906	8,314	21,502	15,579
Cost of revenue	4,865	3,884	9,452	7,833
Operating expenses	1,418	1,085	2,764	2,317
Depreciation and amortization	22	22	40	44
Total costs and expenses	6,305	4,991	12,256	10,194
Operating income	4,601	3,323	9,246	5,385
APAC | Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	1,549	1,072	3,086	2,038
APAC | Software License
Segment Reporting Information [Line Items]
Total revenue	776	404	2,192	761
APAC | Maintenance
Segment Reporting Information [Line Items]
Total revenue	2,353	2,129	4,729	4,581
APAC | Services
Segment Reporting Information [Line Items]
Total revenue	$ 6,228	$ 4,709	$ 11,495	$ 8,199