Reportable Segments

3 Months Ended

Mar. 31, 2025

We manage our business by geographic segment and have three geographic reportable segments: the Americas (North, Latin and South America); 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 (Chief Executive Officer) reviews the variances in each reportable segment’s operating income compared to prior periods and to budget on a monthly basis to evaluate performance and allocate resources (including employees, financial or capital).

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 $7.0 million and $4.4 million for the three months ended March 31, 2025 and 2024, 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. There are certain corporate expenses included in the Americas segment that we do not charge to the other segments. Such expenses include research and development, stock compensation, 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. Expense related to an unusual health insurance claim is included within "Operating expenses" within the Americas segment for three months ended March 31, 2025.

In accordance with segment reporting topic of the FASB Codification, we present below certain financial information by reportable segment for the three months ended March 31, 2025 and 2024 (in thousands):


	Three Months Ended March 31,
	2025								2024
	Americas		EMEA		APAC		Consolidated		Americas		EMEA		APAC		Consolidated
Revenue:
Cloud subscriptions	$	74,111	$	17,207	$	2,988	$	94,306	$	61,132	$	14,501	$	2,394	$	78,027
Software license		1,450		7,536		306		9,292		1,829		486		495		2,810
Maintenance		25,915		4,171		2,058		32,144		27,876		4,674		2,422		34,972
Services		87,497		26,352		7,278		121,127		99,115		26,771		6,309		132,195
Hardware		5,642		276		-		5,918		6,360		188		-		6,548
Total revenue		194,615		55,542		12,630		262,787		196,312		46,620		11,620		254,552

Costs and Expenses:
Cost of revenue		82,802		26,121		5,644		114,567		88,982		25,086		5,219		119,287
Operating expenses		73,713		5,525		1,340		80,578		69,405		5,433		1,304		76,142
Depreciation and amortization		1,309		193		39		1,541		1,238		217		38		1,493
Restructuring expense		2,929		-		-		2,929		-		-		-		-
Total costs and expenses		160,753		31,839		7,023		199,615		159,625		30,736		6,561		196,922
Operating income	$	33,862	$	23,703	$	5,607	$	63,172	$	36,687	$	15,884	$	5,059	$	57,630
Interest income								1,101								1,414
Other income (loss), net								236								(418	)
Income before income taxes							$	64,509							$	58,626

In the following table, we present goodwill, long-lived assets, and total assets by reportable segment as of March 31, 2025 and December 31, 2024 (in thousands):


	As of March 31, 2025								As of December 31, 2024
	Americas		EMEA		APAC		Consolidated		Americas		EMEA		APAC		Consolidated
Goodwill, net	$	54,766	$	5,503	$	1,963	$	62,232	$	54,766	$	5,497	$	1,963	$	62,226
Long lived assets		83,532		12,352		2,381		98,265		83,517		11,501		2,538		97,556
Total assets		562,814		121,207		24,200		708,221		633,157		102,222		22,172		757,551

For the three months ended March 31, 2025 and 2024, we derived revenue from sales to customers outside the United States of approximately $91.5 million and $83.7 million, respectively. Our remaining revenue was derived from domestic sales.

Cloud subscriptions revenue primarily relates to our Manhattan Active omnichannel, warehouse management solutions, and transportation management solutions for the three months ended March 31, 2025. The majority of our software license revenue (over 70%) relates to our warehouse management product group for the three months ended March 31, 2025.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

MANHATTAN ASSOCIATES INC 10-Q