Manhattan Associates, Inc. (NASDAQ:MANH) Q4 2014 Earnings Conference Call - Final Transcript

Feb 03, 2015 • 04:30 pm ET


Manhattan Associates, Inc. (NASDAQ:MANH) Q4 2014 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Courtney, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Manhattan Associates Fourth Quarter 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions] As a reminder, ladies and gentlemen, this call is being recorded today, Tuesday, February 03, 2015.

I would now like to introduce Dennis Story of Manhattan Associates. Mr. Story, you may begin your conference.

Dennis Story

Thank you, Courtney, and good afternoon, everyone. Welcome to Manhattan Associates 2014 fourth quarter earnings call. I will review our cautionary language and then turn the call over to Eddie Capel, our CEO.

During this call, including the question-and-answer session, we may make forward-looking statements regarding future events or future financial performance of Manhattan Associates. You are cautioned that these forward-looking statements involve risks and uncertainties, are not guarantees of future performance and that actual results may differ materially from projections contained in our forward-looking statements. I refer you to the reports Manhattan Associates files with the SEC for important factors that could cause actual results to differ materially from those in our projections, particularly our Annual Report on Form 10-K for fiscal 2013 and the risk factor discussion in that report. We are under no obligation to update these statements. In addition, our comments include certain non-GAAP financial measures in an effort to provide additional information to investors. All non-GAAP measures have been reconciled to the related GAAP measures in accordance with SEC rules. You will find the reconciliation schedules in our Form 8-K we submitted to the SEC earlier today and on our website at

Now, I'll turn the call over to Eddie.

Eddie Capel

Good afternoon, everyone. 2014 was certainly a very successful year for Manhattan Associates. We posted record results across essentially all financial metrics marking our third consecutive year of record revenue and record earnings per share performance. Our competitive position continues to improve and customer satisfaction has increased across the globe. We continue to invest significantly in innovation to drive competitive differentiation enabling Manhattan to increase market share and continue to successfully expand beyond our core business and into the retail store. While the global macro headwinds persist into 2015, we remain very encouraged by our near term and long-term growth prospects.

We set new Q4 and full year revenue and earnings per share records. Q4 total revenue of $130.4 million increased 21% and adjusted earnings per share of $0.30 increased 25% over Q4 2013. For the full year 2014, total revenue of $492.1 million increased 19% and adjusted earnings per share of $1.16 increased 26% over 2013. The combination of strong revenue growth, prudent expense discipline led to our most successful year in the Company's history. We posted software license revenue of $19.5 million in Q4, up 13% versus Q4 2013. We closed four $1 million plus license deals in the quarter; one with