Manhattan Associates (MANH) Shares Tumble 24% After Citing Headwinds for Services Business & Revealing 2025 GAAP EPS Expected to Shrink - Hagens Berman

SAN FRANCISCO, Feb. 6, 2025 /PRNewswire/ -- On Jan. 29, 2025, the price of software solutions company Manhattan Associates, Inc. (NASDAQ: MANH) tumbled $72.26 lower (-24%) after reporting its Q4 and FY 2024 financial results and providing 2025 revenue guidance which was below analysts' consensus estimates.

Hagens Berman urges Manhattan Associates investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

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Manhattan Associates, Inc. (MANH) Investigation:

In a recent development, Manhattan Associates, Inc. (MANH) finds itself at the center of an investigation scrutinizing its public declarations regarding the business and growth prospects of its services business — a crucial component of the company's revenue. This business encompasses solutions planning and implementation, consulting, customer training, and reimbursements from out-of-pocket expenses.

Historically, Manhattan Associates assured investors that the growth in services was tightly linked to the expansion of cloud sales and customer upgrade cycles. The company conveyed confidence that robust demand for its cloud solutions would drive services revenue growth, while downplaying uncertainties in the global macroeconomic environment.

However, on Jan. 28, 2025, the company disclosed disappointing Q4 2024 services revenue of $119.5 million, growing by a mere 0.3% compared to the year-ago quarter. This figure fell approximately $2 million short of the guidance provided in October 2024.

The company further explained that delays in professional services work and deferred deals contributed to the disappointing performance, predicting that services revenue would hit a low point in Q1 2025. Solid revenue growth in this sector, according to the company, would not resume until mid-year, with year-over-year growth projected to pick up thereafter.

Moreover, Manhattan Associates revealed emerging challenges in its services business, noting that around 10% of customers with ongoing implementations had scaled back their planned services work for the upcoming calendar and fiscal year.

Adding to investor concerns, the company announced that its FY 2025 total revenues would see modest growth of just 2% to 3%, while GAAP EPS was expected to decline by 10% to 13%.

In reaction to these announcements, the stock price of Manhattan Associates plunged approximately 24% on Jan. 29, 2025, wiping out over $4 billion of shareholder value.

The recent developments have prompted shareholder rights firm Hagens Berman to open an investigation.

"We're investigating whether Manhattan Associates may have intentionally misled investors about the sustainability of its business model and revenue growth," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Manhattan Associates and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Manhattan Associates investigation, read more »

Whistleblowers: Persons with non-public information regarding Manhattan Associates should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP