Manhattan Associates, Inc. (NASDAQ:MANH) Q1 2019 Earnings Conference Call Transcript

Apr 23, 2019 • 04:30 pm ET

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Manhattan Associates, Inc. (NASDAQ:MANH) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Deidra, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Q1 2019 Earnings 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, April 23rd, 2019.

I would now like to introduce Eddie Capel, CEO; and Dennis Story, CFO of Manhattan Associates. Mr. Story, you may begin your conference.

Executive
Dennis Story

Thank you, Deadra, and good afternoon, everyone. Welcome to Manhattan Associates 2019 first 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 the future financial performance of Manhattan Associates. You are cautioned that these forward-looking statements involve risk and uncertainties are not guarantees of future performance and that actual results may differ materially from the 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 2018 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'll find reconciliation schedules in the Form 8-K, we submitted to the SEC earlier today and on our website at manh.com.

Now I'll turn the call over to Eddie.

Executive
Eddie Capel

Well, good afternoon, everyone, and thank you for joining us to review Manhattan Associates 2019 first quarter results. We delivered record Q1 total revenue of $148 million, that's applying ASC 606 retrospectively and $0.41 of adjusted EPS. Q1 2019 revenue grew 14% versus a fairly weak 2018 comp and EPS was up 11% over Q1 2018. License, cloud and services revenue results all exceeded Q1 revenue targets on strong demand for our products and services. Sequentially Q1 2019 total revenue grew about 3% over Q4 2018, as services revenue growth continued to strengthen on strong demand from new license and cloud sales.

Our operating margin exceeded expectations modestly on our revenue performance and continued focus on investment in the business to deliver long-term growth objectives. Despite appropriate cautions regarding the global macro-volatility, we're bullish on our outlook for 2019, and we are raising at 2019 full-year total revenue and earnings per share guidance, whilst maintaining our operating margin. We're still early in our transition to cloud with aggressive transformative goals and investments earmarked for driving our customer success and in turn our long-term future growth and earnings.

We continue to be very encouraged by our progress on our cloud transition and so far a