GlobeNewswire Inc | Jul 27, 2021 04:05PM EDT

July 27, 2021

RPO Bookings Increase 117% over Prior Year on Strong Demand

Company Raises 2021 Full-Year Revenue and EPS Guidance

ATLANTA, July 27, 2021 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $166.1 million for the second quarter ended June30, 2021. GAAP diluted earnings per share for Q2 2021 was $0.48 compared to $0.30 for Q2 2020. Non-GAAP adjusted diluted earnings per share for Q2 2021 was $0.61 compared to $0.40 in Q2 2020.

Q2 was another solid quarter of growth for Manhattan Associates resulting in record total revenue and record earnings per share. These results exceeded our expectations and were strong compared to our previous all-time record in Q2 2019, preceding the COVID pandemic, said Manhattan Associates President and CEO Eddie Capel.

Accelerating demand for our suite of Manhattan Active omnichannel, inventory and supply chain cloud solutions drove record Q2 bookings with RPO increasing 117% to $489 million. Mr. Capel continued, With our business momentum strengthening and revenue visibility increasing, we are again raising our 2021 guidance.

SECOND QUARTER 2021 FINANCIAL SUMMARY:

-- Consolidated total revenue was $166.1 million for Q2 2021, compared to $135.6 million for Q2 2020. Cloud subscription revenue was $28.6 million for Q2 2021, compared to $18.5 million for Q2 2020.License revenue was $8.8 million for Q2 2021, compared to $5.7 million for Q2 2020.Services revenue was $84.7 million for Q2 2021, compared to $71.8 million for Q2 2020. -- GAAP diluted earnings per share was $0.48 for Q2 2021, compared to $0.30 for Q2 2020. -- Adjusted diluted earnings per share, a non-GAAP measure, was $0.61 for Q2 2021, compared to $0.40 for Q2 2020. -- GAAP operating income was $39.4 million for Q2 2021, compared to $26.7 million for Q2 2020. -- Adjusted operating income, a non-GAAP measure, was $50.2 million for Q2 2021, compared to $34.3 million for Q2 2020. -- Cash flow from operations was $45.5 million for Q2 2021, compared to $48.8 million for Q2 2020. Days Sales Outstanding was 62 days at June30, 2021, compared to 61 days at March 31, 2021. -- Cash totaled $209.3 million at June 30, 2021, compared to $197.2 million at March 31, 2021. -- During the three months ended June30, 2021, the Company repurchased 243,273 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $32.9 million. In July 2021, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Companys common stock.

SIX MONTH 2021 FINANCIAL SUMMARY:

-- Consolidated total revenue for the six months ended June30, 2021, was $323.0 million, compared to $289.5 million for the six months ended June30, 2020. Cloud subscription revenue was $55.2 million for the six months ended June30, 2021, compared to $35.8 million for the six months ended June30, 2020.License revenue was $16.7 million for the six months ended June30, 2021, compared to $15.4 million for the six months ended June30, 2020.Services revenue was $165.1 million for the six months ended June30, 2021, compared to $159.2 million for the six months ended June30, 2020. -- GAAP diluted earnings per share for the six months ended June30, 2021, was $0.83, compared to $0.65 for the six months ended June30, 2020. -- Adjusted diluted earnings per share, a non-GAAP measure, was $1.04 for the six months ended June30, 2021, compared to $0.80 for the six months ended June30, 2020. -- GAAP operating income was $64.8 million for the six months ended June30, 2021, compared to $50.9 million for the six months ended June30, 2020. -- Adjusted operating income, a non-GAAP measure, was $85.8 million for the six months ended June30, 2021, compared to $66.2 million for the six months ended June30, 2020. -- Cash flow from operations was $85.4 million for the six months ended June30, 2021, compared to $60.4 million for the six months ended June30, 2020. -- During the six months ended June30, 2021, the Company repurchased 457,695 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $59.9 million.

2021 GUIDANCE

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

Guidance Range - 2021 Full Year ($'s in millions, except $ Range % Growth operating margin and EPS) Range Total revenue - current $ 643 $ 650 10% 11% guidance Total revenue - previous $ 625 $ 640 guidance Operating Margin: GAAP operating margin - 18.8 % 19.4 % current guidance Equity-based compensation 6.7 % 6.6 % Adjusted operating margin^(1) 25.5 % 26.0 % - current guidance GAAP operating margin - 14.2 % 15.4 % previous guidance Equity-based compensation 6.8 % 6.6 % Adjusted operating margin^(1) 21.0 % 22.0 % - previous guidance Diluted earnings per share (EPS): GAAP EPS - current guidance $ 1.50 $ 1.56 10% 15% Equity-based compensation, 0.57 0.57 net of tax Excess tax benefit on stock (0.07 ) (0.07 ) vesting Adjusted EPS^(1) - current $ 2.00 $ 2.06 14% 17% guidance GAAP EPS - previous guidance $ 1.10 $ 1.20 Equity-based compensation, 0.60 0.60 net of tax Excess tax benefit on stock (0.10 ) (0.10 ) vesting Adjusted EPS^(1) - previous $ 1.60 $ 1.70 guidance ^(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-basedcompensation and acquisition-related costs, and the related income tax effects of these items if applicable.

Manhattan Associates currently intends to publish in each quarterly earnings release certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. See our cautionary note regarding forward-looking statements below. We note in particular that the severity, duration and ultimate impact of the COVID-19 pandemic are difficult to predict at this time. In addition, those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.

Manhattan Associates will make its earnings release and published expectations available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance above, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

The Companys conference call regarding its second quarter financial results will be held today, July 27, 2021, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software.

Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 1771787 or via the web at ir.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates third quarter 2021 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share in this press release as additional information regarding the Companys historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors ability to understand and compare the Companys results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Companys Form 8-K earnings release filing for the three and six months ended June30, 2021.

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation, acquisition-related costs and the amortization of these costs, and (from time to time) restructuring charges all net of income tax effects. We include reconciliations of the Companys GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds and delivers leading edge cloud and on-premise solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains forward-looking statements relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under 2021 Guidance, any statements about the future effect of the COVID-19 pandemic on our business, customers or the global economy, our business prospects following the pandemic, statements we make about market adoption of our cloud-based solution and other statements identified by words such as may, expect, forecast, anticipate, intend, plan, believe, could, seek, project, estimate, and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: the risk that the duration and severity of the COVID-19 pandemic, and its ultimate effects on the global economy, our customers and our business, may be worse than expected; risks related to transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription/cloud-based software-as-a-service model; disruption in the retail sector; the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products technology and customer implementations; and the other risk factors set forth in Item 1A of the Companys Annual Report on Form 10-K for the year ended December 31, 2020, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Income(in thousands, except per share amounts)

Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) (unaudited) Revenue: Cloud $ 28,595 $ 18,503 $ 55,238 $ 35,763 subscriptionsSoftware 8,823 5,681 16,661 15,416 licenseMaintenance 37,732 35,898 73,891 71,642 Services 84,703 71,778 165,062 159,184 Hardware 6,261 3,770 12,112 7,528 Total revenue 166,114 135,630 322,964 289,533 Costs and expenses:Cost ofsoftware 556 591 1,112 1,146 licenseCost of cloudsubscriptions, 70,072 62,434 143,581 136,710 maintenanceand servicesResearch and 23,213 19,931 47,473 43,259 developmentSales and 13,750 9,709 27,146 22,797 marketingGeneral and 17,082 14,016 34,651 30,130 administrativeDepreciationand 2,084 2,257 4,219 4,603 amortizationTotal costs 126,757 108,938 258,182 238,645 and expensesOperating 39,357 26,692 64,782 50,888 incomeOther income 306 (158 ) 13 1,262 (loss), netIncome before 39,663 26,534 64,795 52,150 income taxesIncome tax 9,070 7,330 11,559 10,416 provisionNet income $ 30,593 $ 19,204 $ 53,236 $ 41,734 Basic earnings $ 0.48 $ 0.30 $ 0.84 $ 0.66 per shareDilutedearnings per $ 0.48 $ 0.30 $ 0.83 $ 0.65 share Weightedaverage number of shares:Basic 63,537 63,509 63,591 63,550 Diluted 64,276 64,126 64,371 64,234

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

Three Months Ended June Six Months Ended June 30, 30, 2021 2020 2021 2020 Operating $ 39,357 $ 26,692 $ 64,782 $ 50,888 incomeEquity-basedcompensation 10,709 7,492 20,760 15,056 (a)Purchaseamortization 107 110 214 217 (c)Adjustedoperating $ 50,173 $ 34,294 $ 85,756 $ 66,161 income(Non-GAAP) Income tax $ 9,070 $ 7,330 $ 11,559 $ 10,416 provisionEquity-basedcompensation 1,478 759 2,896 1,649 (a)Tax benefit ofstock awards 402 60 4,057 3,742 vested (b)Purchaseamortization 26 27 53 54 (c)Adjusted incometax provision $ 10,976 $ 8,176 $ 18,565 $ 15,861 (Non-GAAP) Net income $ 30,593 $ 19,204 $ 53,236 $ 41,734 Equity-basedcompensation 9,231 6,733 17,864 13,407 (a)Tax benefit ofstock awards (402 ) (60 ) (4,057 ) (3,742 )vested (b)Purchaseamortization 81 82 161 163 (c)Adjusted netincome $ 39,503 $ 25,959 $ 67,204 $ 51,562 (Non-GAAP) Diluted EPS $ 0.48 $ 0.30 $ 0.83 $ 0.65 Equity-basedcompensation 0.14 0.10 0.28 0.21 (a)Tax benefit ofstock awards (0.01 ) - (0.06 ) (0.06 )vested (b)Purchaseamortization - - - - (c)Adjusteddiluted EPS $ 0.61 $ 0.40 $ 1.04 $ 0.80 (Non-GAAP) Fully diluted 64,276 64,126 64,371 64,234 shares

Adjusted results exclude all equity-based compensation to facilitate comparison with our peers and because it typically does not require cash settlement.As explained in our Current Report on Form 8-K filed today with the SEC, we do not include this expense when assessing our operating(a) performance.We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives.The Tax Cuts and Jobs Act further increased those limitations.

Three Months Ended June Six Months Ended June 30, 30, 2021 2020 2021 2020 Cost of services $ 3,513 $ 2,326 $ 6,792 $ 4,611 Research and 2,116 1,522 4,108 3,063 developmentSales and 1,111 756 2,125 1,559 marketingGeneral and 3,969 2,888 7,735 5,823 administrativeTotalequity-based $ 10,709 $ 7,492 $ 20,760 $ 15,056 compensation

Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial(b) reporting purposes. As discussed above, we excluded equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also excluded the related tax benefit (expense) generated upon their vesting. Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to(c) facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(in thousands, except share and per share data)

June 30, December31, 2021 2020 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 209,343 $ 204,705 Accounts receivable, net of allowance of$4,178 and $3,497, at June 30, 2021 and 113,955 109,202 December31, 2020, respectivelyPrepaid expenses and other current assets 23,934 20,134 Total current assets 347,232 334,041 Property and equipment, net 15,115 17,903 Operating lease right-of-use assets 28,744 31,470 Goodwill, net 62,246 62,252 Deferred income taxes 3,975 5,760 Other assets 17,685 13,986 Total assets $ 474,997 $ 465,412 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 22,031 $ 17,805 Accrued compensation and benefits 49,728 41,962 Accrued and other liabilities 18,915 21,181 Deferred revenue 125,993 114,164 Income taxes payable 194 1,874 Total current liabilities 216,861 196,986 Operating lease liabilities, long-term 24,959 27,843 Other non-current liabilities 20,727 21,686 Shareholders' equity: Preferred stock, no par value; 20,000,000shares authorized, no shares issued or - - outstanding in 2021 and 2020Common stock, $0.01 par value;200,000,000 shares authorized; 63,397,603and 63,527,186 shares issued and 634 635 outstanding at June 30, 2021 andDecember31, 2020, respectivelyRetained earnings 231,035 236,524 Accumulated other comprehensive loss (19,219 ) (18,262 )Total shareholders' equity 212,450 218,897 Total liabilities and shareholders' $ 474,997 $ 465,412 equity

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

Six Months Ended June 30, 2021 2020 (unaudited) (unaudited) Operating activities: Net income $ 53,236 $ 41,734 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 4,219 4,603 Equity-based compensation 20,760 15,056 Loss on disposal of equipment - 10 Deferred income taxes 1,768 4,234 Unrealized foreign currency gain (1,029 ) (741 )Changes in operating assets and liabilities: Accounts receivable, net (5,289 ) (7,469 ) Other assets (7,912 ) (619 ) Accounts payable, accrued and other 9,592 (21,787 )liabilities Income taxes (1,952 ) 568 Deferred revenue 12,002 24,799 Net cash provided by operating activities 85,395 60,388 Investing activities: Purchase of property and equipment (1,171 ) (1,752 )Net cash used in investing activities (1,171 ) (1,752 ) Financing activities: Purchase of common stock (79,486 ) (43,155 )Net cash used in financing activities (79,486 ) (43,155 ) Foreign currency impact on cash (100 ) (2,521 ) Net change in cash and cash equivalents 4,638 12,960 Cash and cash equivalents at beginning of 204,705 110,678 periodCash and cash equivalents at end of period $ 209,343 $ 123,638

MANHATTAN ASSOCIATES, INC.SUPPLEMENTAL INFORMATION

1.Continuing Impact of COVID-19:

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

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

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

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

2020 2021 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD GAAP Diluted EPS $ 0.35 $ 0.30 $ 0.39 $ 0.32 $ 1.36 $ 0.35 $ 0.48 $ 0.83 Adjustments to GAAP:Equity-based 0.10 0.10 0.13 0.13 0.46 0.13 0.14 0.28 compensationTax benefit of (0.06 ) - - - (0.06 ) (0.06 ) (0.01 ) (0.06 )stock awards vestedPurchase - - - - - - - - amortizationAdjusted Diluted $ 0.40 $ 0.40 $ 0.51 $ 0.45 $ 1.76 $ 0.43 $ 0.61 $ 1.04 EPSFully Diluted 64,342 64,126 64,427 64,484 64,333 64,466 64,276 64,371 Shares

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

2020 2021 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue: Americas $ 123,146 $ 107,368 $ 121,168 $ 114,257 $ 465,939 $ 122,813 $ 132,308 $ 255,121 EMEA 24,313 21,558 21,721 25,990 93,582 28,434 27,190 55,624 APAC 6,444 6,704 6,868 6,835 26,851 5,603 6,616 12,219 $ 153,903 $ 135,630 $ 149,757 $ 147,082 $ 586,372 $ 156,850 $ 166,114 $ 322,964 GAAP Operating Income: Americas $ 16,282 $ 18,984 $ 27,296 $ 18,547 $ 81,109 $ 16,116 $ 28,590 $ 44,706 EMEA 6,313 5,515 5,319 7,490 24,637 8,374 8,643 17,017 APAC 1,601 2,193 2,361 2,160 8,315 935 2,124 3,059 $ 24,196 $ 26,692 $ 34,976 $ 28,197 $ 114,061 $ 25,425 $ 39,357 $ 64,782 Adjustments (pre-tax): Americas: Equity-based $ 7,564 $ 7,492 $ 9,012 $ 9,287 $ 33,355 $ 10,051 $ 10,709 $ 20,760 compensationPurchase amortization 107 110 107 105 429 107 107 214 $ 7,671 $ 7,602 $ 9,119 $ 9,392 $ 33,784 $ 10,158 $ 10,816 $ 20,974 Adjusted non-GAAP Operating Income: Americas $ 23,953 $ 26,586 $ 36,415 $ 27,939 $ 114,893 $ 26,274 $ 39,406 $ 65,680 EMEA 6,313 5,515 5,319 7,490 24,637 8,374 8,643 17,017 APAC 1,601 2,193 2,361 2,160 8,315 935 2,124 3,059 $ 31,867 $ 34,294 $ 44,095 $ 37,589 $ 147,845 $ 35,583 $ 50,173 $ 85,756

4.Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

2020 2021 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Revenue $ (988 ) $ (777 ) $ 1,165 $ 1,946 $ 1,346 $ 2,932 $ 3,209 $ 6,141 Costs and (996 ) (1,430 ) 291 918 (1,217 ) 2,000 2,442 4,442 expensesOperating 8 653 874 1,028 2,563 932 767 1,699 incomeForeigncurrencygains 1,348 (193 ) (913 ) (639 ) (397 ) (287 ) 315 28 (losses)in otherincome $ 1,356 $ 460 $ (39 ) $ 389 $ 2,166 $ 645 $ 1,082 $ 1,727

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

2020 2021 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full 1st 2nd Qtr YTD Year QtrOperating $ 308 $ 895 $ 601 $ 445 $ 2,249 $ 79 $ (294 ) $ (215 )incomeForeigncurrencygains 1,450 262 (1,165 ) (381 ) 166 315 535 850 (losses)in otherincomeTotalimpact ofchanges $ 1,758 $ 1,157 $ (564 ) $ 64 $ 2,415 $ 394 $ 241 $ 635 in theIndianRupee

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

2020 2021 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full 1st Qtr 2nd YTD Year QtrInterest income $ 68 $ 28 $ 8 $ (6 ) $ 98 $ (15 ) $ (10 ) $ (25 )Foreign currency gains 1,348 (193 ) (913 ) (639 ) (397 ) (287 ) 315 28 (losses)Other non-operatingincome 4 7 14 (11 ) 14 9 1 10 (expense)Total other income (loss) $ 1,420 $ (158 ) $ (891 ) $ (656 ) $ (285 ) $ (293 ) $ 306 $ 13

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

2020 2021 1st Qtr 2nd 3rd 4th Full 1st 2nd YTD Qtr Qtr Qtr Year Qtr QtrCapital $ 1,245 $ 507 $ 176 $ 802 $ 2,730 $ 569 $ 602 $ 1,171 expenditures

7.Stock Repurchase Activity (in thousands):

2020 2021 1st Qtr 2nd 3rd 4th Full Year 1st Qtr 2nd Qtr YTD Qtr Qtr QtrSharespurchasedunderpublicly 337 - - - 337 214 244 458 announcedbuy-backprogramShareswithheldfor taxesdue upon 219 2 4 - 225 172 1 173 vesting ofrestrictedstock unitsTotalshares 556 2 4 - 562 386 245 631 purchased Total cashpaid forsharespurchasedunder $ 25,000 $ - $ - $ - $ 25,000 $ 26,988 $ 32,894 $ 59,882 publiclyannouncedbuy-backprogramTotal cashpaid forshareswithheldfor taxes 18,032 123 368 38 18,561 19,414 190 19,604 due uponvesting ofrestrictedstock unitsTotal cashpaid for $ 43,032 $ 123 $ 368 $ 38 $ 43,561 $ 46,402 $ 33,084 $ 79,486 sharesrepurchased

8.Remaining Performance Obligations

We disclose revenue we expect to recognize from our remaining performance obligations. Our reported performance obligations primarily represent cloud subscriptions with a non-cancelable term greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Our deferred revenue on the balance sheet primarily relates to our maintenance contracts, which are typically one year in duration and are not included in the remaining performance obligations. Below are our remaining performance obligations as of the end of each period (in thousands):

March 31, June 30, September December March 31, June 30, 2020 2020 30, 31, 2021 2021 2020 2020RemainingPerformance $ 202,793 $ 225,470 $ 257,287 $ 308,761 $ 421,196 $ 488,718 Obligations

Contact: Michael Bauer Rick Fernandez Senior Director, Director, Investor Relations CorporateCommunications Manhattan Associates, Inc. Manhattan Associates, Inc. 678-597-7538 678-597-6988 mbauer@manh.com rfernandez@manh.com