Manhattan Associates (MANH) 10-Q 28 Jul 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 22, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
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		62,718,739
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, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 213,771	$ 263,706
Accounts receivable, net of allowance of $3,046 and $2,419, at June 30, 2022 and December 31, 2021, respectively	133,852	124,420
Prepaid expenses and other current assets	26,929	20,293
Total current assets	374,552	408,419
Property and equipment, net	12,343	13,889
Operating lease right-of-use assets	23,198	27,272
Goodwill, net	62,227	62,239
Deferred income taxes	20,093	7,650
Other assets	21,876	20,239
Total assets	514,289	539,708
Current liabilities:
Accounts payable	25,154	19,625
Accrued compensation and benefits	45,598	53,104
Accrued and other liabilities	22,385	22,741
Deferred revenue	178,019	153,196
Income taxes payable	70	376
Total current liabilities	271,226	249,042
Operating lease liabilities, long-term	18,934	23,157
Other non-current liabilities	15,394	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; 62,718,513 and 63,154,494 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	627	631
Retained earnings	233,151	269,841
Accumulated other comprehensive loss	(25,043)	(19,828)
Total shareholders' equity	208,735	250,644
Total liabilities and shareholders' equity	$ 514,289	$ 539,708

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 3,046	$ 2,419
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	62,718,513	63,154,494
Common stock, shares outstanding	62,718,513	63,154,494

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Total revenue	$ 191,924	$ 166,114	$ 370,880	$ 322,964
Total costs	88,646	70,628	172,073	144,693
Research and development	27,924	23,213	55,379	47,473
Sales and marketing	17,749	13,750	32,139	27,146
General and administrative	18,606	17,082	36,571	34,651
Depreciation and amortization	1,746	2,084	3,493	4,219
Total costs and expenses	154,671	126,757	299,655	258,182
Operating income	37,253	39,357	71,225	64,782
Other income, net	2,243	306	2,981	13
Income before income taxes	39,496	39,663	74,206	64,795
Income tax provision	8,671	9,070	12,789	11,559
Net income	$ 30,825	$ 30,593	$ 61,417	$ 53,236
Basic earnings per share	$ 0.49	$ 0.48	$ 0.97	$ 0.84
Diluted earnings per share	$ 0.49	$ 0.48	$ 0.97	$ 0.83
Weighted average number of shares:
Basic	62,954	63,537	63,083	63,591
Diluted	63,419	64,276	63,644	64,371
Cloud Subscriptions
Total revenue	$ 42,203	$ 28,595	$ 79,500	$ 55,238
Software License
Total revenue	5,125	8,823	13,483	16,661
Total costs	880	556	1,282	1,112
Maintenance
Total revenue	35,993	37,732	71,295	73,891
Services
Total revenue	100,941	84,703	190,859	165,062
Hardware
Total revenue	7,662	6,261	15,743	12,112
Cloud Subscriptions, Maintenance and Services
Total costs	$ 87,766	$ 70,072	$ 170,791	$ 143,581

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 30,825	$ 30,593	$ 61,417	$ 53,236
Foreign currency translation adjustment	(4,085)	(428)	(5,215)	(957)
Comprehensive income	$ 26,740	$ 30,165	$ 56,202	$ 52,279

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net income	$ 61,417	$ 53,236
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,493	4,219
Equity-based compensation	29,676	20,760
(Gain) loss on disposal of equipment	(92)
Deferred income taxes	(12,535)	1,768
Unrealized foreign currency gain	(2,087)	(1,029)
Changes in operating assets and liabilities:
Accounts receivable, net	(11,703)	(5,289)
Other assets	(6,697)	(7,912)
Accounts payable, accrued and other liabilities	(587)	9,592
Income taxes	(3,519)	(1,952)
Deferred revenue	27,116	12,002
Net cash provided by operating activities	84,482	85,395
Investing activities:
Purchase of property and equipment	(2,243)	(1,171)
Net cash used in investing activities	(2,243)	(1,171)
Financing activities:
Purchase of common stock	(127,787)	(79,486)
Net cash used in financing activities	(127,787)	(79,486)
Foreign currency impact on cash	(4,387)	(100)
Net change in cash and cash equivalents	(49,935)	4,638
Cash and cash equivalents at beginning of period	263,706	204,705
Cash and cash equivalents at end of period	$ 213,771	$ 209,343

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, 2020	$ 218,897	$ 635		$ 236,524	$ (18,262)
Balance (in shares) at Dec. 31, 2020		63,527,186
Repurchase of common stock	(79,486)	$ (6)	$ (20,755)	(58,725)
Repurchase of common stock (in shares)		(631,014)
Restricted stock units issuance		$ 5	(5)
Restricted stock units issuance (in shares)		501,431
Equity-based compensation	20,760		20,760
Foreign currency translation adjustment	(957)				(957)
Net income	53,236			53,236
Balance at Jun. 30, 2021	212,450	$ 634		231,035	(19,219)
Balance (in shares) at Jun. 30, 2021		63,397,603
Balance at Mar. 31, 2021	204,660	$ 636		222,815	(18,791)
Balance (in shares) at Mar. 31, 2021		63,616,713
Repurchase of common stock	(33,084)	$ (2)	(10,709)	(22,373)
Repurchase of common stock (in shares)		(244,700)
Restricted stock units issuance (in shares)		25,590
Equity-based compensation	10,709		10,709
Foreign currency translation adjustment	(428)				(428)
Net income	30,593			30,593
Balance at Jun. 30, 2021	212,450	$ 634		231,035	(19,219)
Balance (in shares) at Jun. 30, 2021		63,397,603
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

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	6 Months Ended
	Jun. 30, 2022
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, 2022, the results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. The results for the three and six months ended June 30, 2022 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, 2021. Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and the accounts of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2022
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 3% 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 3.6% 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 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. 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, 2022, we recognized $42.9 million and $108.0 million Remaining Performance Obligations As of June 30, 2022, approximately $897.7 million of revenue, over 97% 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 will 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 not recorded a provision for the cost of returns and product warranty claims. We record an allowance for doubtful accounts 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 $0.2 million and $1.3 million for the three months ended June 30, 2022 and 2021, respectively, and $1.2 million and $2.0 million for the six months ended June 30, 2022 and 2021, respectively. 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 $26.0 million as of June 30, 2022, of which $18.9 million is included in other assets and $7.1 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 $1.9 million and $1.2 million for the three months ended June 30, 2022 and 2021, respectively, and $3.7 million and $2.3 million for the six months ended June 30, 2022 and 2021, respectively. No impairment losses were recognized during the periods.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2022
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, 2022, our cash and cash equivalents were $198.2 million and $15.6 million, respectively. We had neither short-term investments nor long-term investments at June 30, 2022. 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, 2022.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	4. Leases We lease our facilities and some of our equipment under noncancelable operating lease arrangements that expire at various dates through 2029. For a few of our facility leases, we have certain options to extend the lease term for up to 10 years, at our sole discretion. We have no finance leases. We present below the operating lease right-of-use assets and lease liabilities as of June 30, 2022 (in thousands): June 30, 2022 ASSETS Operating lease right-of-use assets $ 23,198 LIABILITIES Operating lease liabilities, current (included in accrued and other liabilities) $ 6,575 Operating lease liabilities, long-term 18,934 Total operating lease liabilities $ 25,509 Aggregate future minimum lease payments under noncancelable operating leases as of June 30, 2022 are as follows (in thousands): Year Ending December 31, 2022 (excluding the three months ended March 31, 2022) $ 3,509 2023 6,982 2024 6,196 2025 5,409 2026 2,560 Thereafter 4,618 Total minimum payments required 29,274 Less short-term leases (75 ) Less imputed interest (3,690 ) Total operating lease liabilities $ 25,509 The total lease cost for the three and six months ended June 30, 2022 was $1.9 million and $3.9 million, respectively. Total lease cost for the three months ended June 30, 2022 consisted of $1.8 million of operating lease costs, and $0.1 million of short-term lease costs. For the six months ended June 30, 2022, total lease cost consisted of $3.7 million of operating lease costs, and $0.2 of short-term lease costs. Total lease cost for the three and six months ended June 30, 2021 was $2.0 million and $4.0 million, respectively. Total lease cost for the three months ended June 30, 2021 consisted of $1.9 million of operating lease costs, and $0.1 million of short-term lease costs. For the six months ended June 30, 2021, total lease cost consisted of $3.8 million of operating lease cost, and $0.2 million of short-term lease costs. Our variable lease costs for the three and six months ended June 30, 2022 and 2021 were immaterial. Other information related to operating leases are as follows: Weighted average remaining lease term 4.7 Weighted average discount rate 2 % Supplemental cash flow information - operating cash flows (in thousands): Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 3,723

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity-Based Compensation	5. Equity-Based Compensation We granted 23,923 and 52,237 restricted stock units (RSUs) during the three months ended June 30, 2022 and 2021, respectively, and granted 677,129 and 376,828 RSUs during the six months ended June 30, 2022 and 2021, respectively. Equity-based compensation expense related to RSUs was $15.5 million and $10.7 million during the three months ended June 30, 2022 and 2021, respectively, and $29.7 million and $20.8 million during the six months ended June 30, 2022 and 2021, respectively. We present below a summary of changes during the six months ended June 30, 2022 in our unvested units of restricted stock: Number of shares/units Outstanding at December 31, 2021 1,388,467 Granted 677,129 Vested (570,913 ) Forfeited (24,073 ) Outstanding at June 30, 2022 1,470,610

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes Our effective tax rate was 22.0% and 22.9% for the three months ended June 30, 2022 and 2021, respectively, and 17.2% and 17.8% for the six months ended June 30, 2022 and 2021, respectively. The decrease in the effective tax rate for three months ended June 30, 2022 is due to 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, 2022, our uncertain tax positions decreased by $0.7 million due to settlement of a tax contingency. There has been no change to our policy that recognizes potential interest and penalties related to uncertain tax positions within our global operations in income tax expense. 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 the U.S. federal, substantially all state and local income tax examinations and substantially all non-U.S. income tax examinations for years before 2010.

Basic and Diluted Net Income Pe

Basic and Diluted Net Income Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Basic and Diluted Net Income Per Share	7. 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, 2022 and 2021 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in (in thousands, except per share data) Net income $ 30,825 $ 30,593 $ 61,417 $ 53,236 Earnings per share: Basic $ 0.49 $ 0.48 $ 0.97 $ 0.84 Effect of CESs - - - (0.01 ) Diluted $ 0.49 $ 0.48 $ 0.97 $ 0.83 Weighted average number of shares: Basic 62,954 63,537 63,083 63,591 Effect of CESs 465 739 561 780 Diluted 63,419 64,276 63,644 64,371 The number of anti-dilutive CESs during the three and six months ended June 30, 2022 and 2021 was immaterial.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments And Contingencies Disclosure [Abstract]
Contingencies	8. 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.

Operating Segments

Operating Segments	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Operating Segments	9. Operating 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 executive officer and chief financial officer evaluate 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 $1.9 million and $1.3 million for the three months ended June 30, 2022 and 2021, respectively, and $4.4 million and $2.9 million for the six months ended June 30, 2022, respectively, In accordance with the segment reporting topic of the FASB Accounting Standards Codification, we present below certain financial information by reportable segment Three Months Ended June 30, 2022 2021 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 36,184 $ 4,947 $ 1,072 $ 42,203 $ 24,654 $ 3,187 $ 754 $ 28,595 Software license 3,459 1,262 404 5,125 7,421 842 560 8,823 Maintenance 29,126 4,738 2,129 35,993 29,213 6,208 2,311 37,732 Services 75,608 20,624 4,709 100,941 64,790 16,922 2,991 84,703 Hardware 7,619 43 - 7,662 6,230 31 - 6,261 Total revenue 151,996 31,614 8,314 191,924 132,308 27,190 6,616 166,114 Costs and Expenses: Cost of revenue 67,062 17,700 3,884 88,646 53,105 14,252 3,271 70,628 Operating expenses 58,863 4,331 1,085 64,279 48,763 4,104 1,178 54,045 Depreciation and amortization 1,564 160 22 1,746 1,850 191 43 2,084 Total costs and expenses 127,489 22,191 4,991 154,671 103,718 18,547 4,492 126,757 Operating income $ 24,507 $ 9,423 $ 3,323 $ 37,253 $ 28,590 $ 8,643 $ 2,124 $ 39,357 Six Months Ended June 30, 2022 2021 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 67,613 $ 9,849 $ 2,038 $ 79,500 $ 47,143 $ 6,765 $ 1,330 $ 55,238 Software license 7,461 5,261 761 13,483 11,581 3,994 1,086 16,661 Maintenance 57,083 9,631 4,581 71,295 57,449 11,770 4,672 73,891 Services 143,727 38,933 8,199 190,859 126,970 32,961 5,131 165,062 Hardware 15,652 91 - 15,743 11,978 134 - 12,112 Total revenue 291,536 63,765 15,579 370,880 255,121 55,624 12,219 322,964 Costs and Expenses: Cost of revenue 129,805 34,435 7,833 172,073 108,412 29,676 6,605 144,693 Operating expenses 112,704 9,068 2,317 124,089 98,268 8,538 2,464 109,270 Depreciation and amortization 3,127 322 44 3,493 3,735 393 91 4,219 Total costs and expenses 245,636 43,825 10,194 299,655 210,415 38,607 9,160 258,182 Operating income $ 45,900 $ 19,940 $ 5,385 $ 71,225 $ 44,706 $ 17,017 $ 3,059 $ 64,782 Cloud subscriptions revenue primarily relates to our Manhattan Active omnichannel, warehouse management solutions, and transportation management solutions for the six months ended June 30, 2022. The majority of our software license revenue relates to our warehouse management product group (over 80%) for the three and six months ended June 30, 2022. At June 30, 2022, total assets for the Americas, EMEA and APAC segments were $439.2 million, $57.8 million and $17.3 million, respectively.

Basis of Presentation and Pri_2

Basis of Presentation and Principles of Consolidation (Policies)	6 Months Ended
	Jun. 30, 2022
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, 2022, the results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. The results for the three and six months ended June 30, 2022 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, 2021.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and the accounts of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Summary of Operating Lease Right-of-Use Assets and Lease Liabilities	We present below the operating lease right-of-use assets and lease liabilities as of June 30, 2022 (in thousands): June 30, 2022 ASSETS Operating lease right-of-use assets $ 23,198 LIABILITIES Operating lease liabilities, current (included in accrued and other liabilities) $ 6,575 Operating lease liabilities, long-term 18,934 Total operating lease liabilities $ 25,509
Aggregate Future Minimum Lease Payments Under Noncancelable Operating Leases	Aggregate future minimum lease payments under noncancelable operating leases as of June 30, 2022 are as follows (in thousands): Year Ending December 31, 2022 (excluding the three months ended March 31, 2022) $ 3,509 2023 6,982 2024 6,196 2025 5,409 2026 2,560 Thereafter 4,618 Total minimum payments required 29,274 Less short-term leases (75 ) Less imputed interest (3,690 ) Total operating lease liabilities $ 25,509
Schedule of Other Information Related to Leases	Other information related to operating leases are as follows: Weighted average remaining lease term 4.7 Weighted average discount rate 2 % Supplemental cash flow information - operating cash flows (in thousands): Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 3,723

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Changes in Unvested Units of Restricted Stock	We present below a summary of changes during the six months ended June 30, 2022 in our unvested units of restricted stock: Number of shares/units Outstanding at December 31, 2021 1,388,467 Granted 677,129 Vested (570,913 ) Forfeited (24,073 ) Outstanding at June 30, 2022 1,470,610

Basic and Diluted Net Income _2

Basic and Diluted Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 and 2021 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in (in thousands, except per share data) Net income $ 30,825 $ 30,593 $ 61,417 $ 53,236 Earnings per share: Basic $ 0.49 $ 0.48 $ 0.97 $ 0.84 Effect of CESs - - - (0.01 ) Diluted $ 0.49 $ 0.48 $ 0.97 $ 0.83 Weighted average number of shares: Basic 62,954 63,537 63,083 63,591 Effect of CESs 465 739 561 780 Diluted 63,419 64,276 63,644 64,371

Operating Segments (Tables)

Operating Segments (Tables)	6 Months Ended
	Jun. 30, 2022
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 Three Months Ended June 30, 2022 2021 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 36,184 $ 4,947 $ 1,072 $ 42,203 $ 24,654 $ 3,187 $ 754 $ 28,595 Software license 3,459 1,262 404 5,125 7,421 842 560 8,823 Maintenance 29,126 4,738 2,129 35,993 29,213 6,208 2,311 37,732 Services 75,608 20,624 4,709 100,941 64,790 16,922 2,991 84,703 Hardware 7,619 43 - 7,662 6,230 31 - 6,261 Total revenue 151,996 31,614 8,314 191,924 132,308 27,190 6,616 166,114 Costs and Expenses: Cost of revenue 67,062 17,700 3,884 88,646 53,105 14,252 3,271 70,628 Operating expenses 58,863 4,331 1,085 64,279 48,763 4,104 1,178 54,045 Depreciation and amortization 1,564 160 22 1,746 1,850 191 43 2,084 Total costs and expenses 127,489 22,191 4,991 154,671 103,718 18,547 4,492 126,757 Operating income $ 24,507 $ 9,423 $ 3,323 $ 37,253 $ 28,590 $ 8,643 $ 2,124 $ 39,357 Six Months Ended June 30, 2022 2021 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 67,613 $ 9,849 $ 2,038 $ 79,500 $ 47,143 $ 6,765 $ 1,330 $ 55,238 Software license 7,461 5,261 761 13,483 11,581 3,994 1,086 16,661 Maintenance 57,083 9,631 4,581 71,295 57,449 11,770 4,672 73,891 Services 143,727 38,933 8,199 190,859 126,970 32,961 5,131 165,062 Hardware 15,652 91 - 15,743 11,978 134 - 12,112 Total revenue 291,536 63,765 15,579 370,880 255,121 55,624 12,219 322,964 Costs and Expenses: Cost of revenue 129,805 34,435 7,833 172,073 108,412 29,676 6,605 144,693 Operating expenses 112,704 9,068 2,317 124,089 98,268 8,538 2,464 109,270 Depreciation and amortization 3,127 322 44 3,493 3,735 393 91 4,219 Total costs and expenses 245,636 43,825 10,194 299,655 210,415 38,607 9,160 258,182 Operating income $ 45,900 $ 19,940 $ 5,385 $ 71,225 $ 44,706 $ 17,017 $ 3,059 $ 64,782

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation Of Revenue [Line Items]
Revenue expected to be recognized from remaining performance obligations	$ 897,700,000		$ 897,700,000
Percentage of revenue expected to be recognized from remaining performance obligations	97%		97%
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 doubtful accounts recorded to operations	200,000	$ 1,300,000	$ 1,200,000	$ 2,000,000
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	1,900,000	$ 1,200,000	$ 3,700,000	$ 2,300,000
Impairment losses	0
Balance as of December 31, 2021
Disaggregation Of Revenue [Line Items]
Deferred revenue recognized	42,900,000		108,000,000
Balance as of March 31, 2022
Disaggregation Of Revenue [Line Items]
Deferred revenue recognized	62,500,000
Sales Commission
Disaggregation Of Revenue [Line Items]
Deferred commissions	26,000,000		26,000,000
Sales Commission | Other Assets
Disaggregation Of Revenue [Line Items]
Deferred commissions	18,900,000		18,900,000
Sales Commission | Prepaid Expenses
Disaggregation Of Revenue [Line Items]
Deferred commissions	$ 7,100,000		$ 7,100,000
Cloud Subscriptions
Disaggregation Of Revenue [Line Items]
Maximum percentage of managed services			3%
Perpetual Software License Revenue | Sales Revenue, Net | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Total software revenue, perpetual software license percentage			3.60%

Revenue Recognition - Additio_2

Revenue Recognition - Additional Information (Detail 1)	Jun. 30, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01
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, 2022 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Cash balance	$ 198,200,000
Cash equivalents	15,600,000
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 - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Option to extend, lease term			10 years
Total lease cost	$ 1.9	$ 2	$ 3.9	$ 4
Operating lease costs	1.8	1.9	3.7	3.8
Short-term lease costs	$ 0.1	$ 0.1	$ 0.2	$ 0.2

Leases - Summary of Operating L

Leases - Summary of Operating Lease Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
ASSETS
Operating lease right-of-use assets	$ 23,198	$ 27,272
LIABILITIES
Operating lease liabilities, current (included in accrued and other liabilities)	$ 6,575
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued and other liabilities
Operating lease liabilities, long-term	$ 18,934	$ 23,157
Total operating lease liabilities	$ 25,509

Leases - Aggregate Future Minim

Leases - Aggregate Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2022 (excluding the three months ended March 31, 2022)	$ 3,509
2023	6,982
2024	6,196
2025	5,409
2026	2,560
Thereafter	4,618
Total minimum payments required	29,274
Less short-term leases	(75)
Less imputed interest	(3,690)
Total operating lease liabilities	$ 25,509

Leases - Other Information Rela

Leases - Other Information Related to Leases (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Leases [Abstract]
Weighted average remaining lease term	4 years 8 months 12 days
Weighted average discount rate	2%
Supplemental cash flow information - operating cash flows (in thousands):
Operating cash flows for operating leases	$ 3,723

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock expense	$ 15.5	$ 10.7	$ 29.7	$ 20.8
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of restricted units granted in the period	23,923	52,237	677,129	376,828

Summary of Changes in Unvested

Summary of Changes in Unvested Units of Restricted Stock (Detail) - Restricted Stock Units - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, Outstanding at December 31, 2021			1,388,467
Number of units, Granted	23,923	52,237	677,129	376,828
Number of units, Vested			(570,913)
Number of units, Forfeited			(24,073)
Number of units, Outstanding at June 30, 2022	1,470,610		1,470,610

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	22%	22.90%	17.20%	17.80%
Uncertain tax positions decreased	$ 0.7

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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 30,825	$ 30,593	$ 61,417	$ 53,236
Earnings per share:
Basic	$ 0.49	$ 0.48	$ 0.97	$ 0.84
Effect of CESs				(0.01)
Diluted	$ 0.49	$ 0.48	$ 0.97	$ 0.83
Weighted average number of shares:
Basic	62,954	63,537	63,083	63,591
Effect of CESs	465	739	561	780
Diluted	63,419	64,276	63,644	64,371

Operating Segments - Additional

Operating Segments - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) Segment	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment			3
Total assets	$ 514,289		$ 514,289		$ 539,708
Warehouse Management Product Group | Product Concentration Risk | Sales Revenue, Net
Segment Reporting Information [Line Items]
Percentage of software license revenue	80%		80%
Americas
Segment Reporting Information [Line Items]
Americas royalty fees	$ 1,900	$ 1,300	$ 4,400	$ 2,900
Total assets	439,200		439,200
EMEA
Segment Reporting Information [Line Items]
Total assets	57,800		57,800
APAC
Segment Reporting Information [Line Items]
Total assets	$ 17,300		$ 17,300

Operating Segments - Schedule o

Operating Segments - Schedule of Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Total revenue	$ 191,924	$ 166,114	$ 370,880	$ 322,964
Cost of revenue	88,646	70,628	172,073	144,693
Operating expenses	64,279	54,045	124,089	109,270
Depreciation and amortization	1,746	2,084	3,493	4,219
Total costs and expenses	154,671	126,757	299,655	258,182
Operating income	37,253	39,357	71,225	64,782
Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	42,203	28,595	79,500	55,238
Software License
Segment Reporting Information [Line Items]
Total revenue	5,125	8,823	13,483	16,661
Cost of revenue	880	556	1,282	1,112
Maintenance
Segment Reporting Information [Line Items]
Total revenue	35,993	37,732	71,295	73,891
Services
Segment Reporting Information [Line Items]
Total revenue	100,941	84,703	190,859	165,062
Hardware
Segment Reporting Information [Line Items]
Total revenue	7,662	6,261	15,743	12,112
Americas
Segment Reporting Information [Line Items]
Total revenue	151,996	132,308	291,536	255,121
Cost of revenue	67,062	53,105	129,805	108,412
Operating expenses	58,863	48,763	112,704	98,268
Depreciation and amortization	1,564	1,850	3,127	3,735
Total costs and expenses	127,489	103,718	245,636	210,415
Operating income	24,507	28,590	45,900	44,706
Americas | Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	36,184	24,654	67,613	47,143
Americas | Software License
Segment Reporting Information [Line Items]
Total revenue	3,459	7,421	7,461	11,581
Americas | Maintenance
Segment Reporting Information [Line Items]
Total revenue	29,126	29,213	57,083	57,449
Americas | Services
Segment Reporting Information [Line Items]
Total revenue	75,608	64,790	143,727	126,970
Americas | Hardware
Segment Reporting Information [Line Items]
Total revenue	7,619	6,230	15,652	11,978
EMEA
Segment Reporting Information [Line Items]
Total revenue	31,614	27,190	63,765	55,624
Cost of revenue	17,700	14,252	34,435	29,676
Operating expenses	4,331	4,104	9,068	8,538
Depreciation and amortization	160	191	322	393
Total costs and expenses	22,191	18,547	43,825	38,607
Operating income	9,423	8,643	19,940	17,017
EMEA | Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	4,947	3,187	9,849	6,765
EMEA | Software License
Segment Reporting Information [Line Items]
Total revenue	1,262	842	5,261	3,994
EMEA | Maintenance
Segment Reporting Information [Line Items]
Total revenue	4,738	6,208	9,631	11,770
EMEA | Services
Segment Reporting Information [Line Items]
Total revenue	20,624	16,922	38,933	32,961
EMEA | Hardware
Segment Reporting Information [Line Items]
Total revenue	43	31	91	134
APAC
Segment Reporting Information [Line Items]
Total revenue	8,314	6,616	15,579	12,219
Cost of revenue	3,884	3,271	7,833	6,605
Operating expenses	1,085	1,178	2,317	2,464
Depreciation and amortization	22	43	44	91
Total costs and expenses	4,991	4,492	10,194	9,160
Operating income	3,323	2,124	5,385	3,059
APAC | Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	1,072	754	2,038	1,330
APAC | Software License
Segment Reporting Information [Line Items]
Total revenue	404	560	761	1,086
APAC | Maintenance
Segment Reporting Information [Line Items]
Total revenue	2,129	2,311	4,581	4,672
APAC | Services
Segment Reporting Information [Line Items]
Total revenue	$ 4,709	$ 2,991	$ 8,199	$ 5,131