v3.25.2
Reportable Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Reportable Segments
8.
Reportable Segments

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 $6.0 million and $4.6 million for the three months ended June 30, 2025 and 2024, respectively, and $12.9 million and $9.0 million for the six months ended June 30, 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 the six months ended June 30, 2025.

 

In accordance with segment reporting topic of the FASB Codification, we present below certain financial information by reportable segment for the three and six months ended June 30, 2025 and 2024 (in thousands):

 

Three Months Ended June 30,

 

 

2025

 

 

2024

 

 

Americas

 

EMEA

 

APAC

 

Consolidated

 

 

Americas

 

EMEA

 

APAC

 

Consolidated

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud subscriptions

$

77,281

 

$

19,675

 

$

3,466

 

$

100,422

 

 

$

64,665

 

$

15,371

 

$

2,325

 

$

82,361

 

Software license

 

908

 

 

327

 

 

293

 

 

1,528

 

 

 

2,430

 

 

362

 

 

269

 

 

3,061

 

Maintenance

 

27,786

 

 

5,071

 

 

2,200

 

 

35,057

 

 

 

28,621

 

 

4,531

 

 

2,121

 

 

35,273

 

Services

 

94,167

 

 

27,186

 

 

7,546

 

 

128,899

 

 

 

102,469

 

 

26,632

 

 

7,730

 

 

136,831

 

Hardware

 

6,464

 

 

42

 

 

9

 

 

6,515

 

 

 

7,770

 

 

22

 

 

-

 

 

7,792

 

    Total revenue

 

206,606

 

 

52,301

 

 

13,514

 

 

272,421

 

 

 

205,955

 

 

46,918

 

 

12,445

 

 

265,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

$

83,745

 

$

26,222

 

$

6,248

 

 

116,215

 

 

 

89,818

 

 

24,810

 

 

5,413

 

 

120,041

 

Operating expenses

 

73,457

 

 

6,074

 

 

1,295

 

 

80,826

 

 

 

69,628

 

 

4,673

 

 

1,299

 

 

75,600

 

Depreciation and amortization

 

1,345

 

 

198

 

 

41

 

 

1,584

 

 

 

1,209

 

 

240

 

 

40

 

 

1,489

 

Restructuring charge

 

8

 

 

-

 

 

-

 

 

8

 

 

 

-

 

 

-

 

 

-

 

 

-

 

Total costs and expenses

 

158,555

 

 

32,494

 

 

7,584

 

 

198,633

 

 

 

160,655

 

 

29,723

 

 

6,752

 

 

197,130

 

Operating income

$

48,051

 

$

19,807

 

$

5,930

 

$

73,788

 

 

$

45,300

 

$

17,195

 

$

5,693

 

$

68,188

 

Interest income

 

 

 

 

 

 

 

852

 

 

 

 

 

 

 

 

 

1,503

 

Other (loss) income, net

 

 

 

 

 

 

 

(137

)

 

 

 

 

 

 

 

 

(589

)

Income before income taxes

 

 

 

 

 

 

$

74,503

 

 

 

 

 

 

 

 

$

69,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

Americas

 

EMEA

 

APAC

 

Consolidated

 

 

Americas

 

EMEA

 

APAC

 

Consolidated

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud subscriptions

$

151,392

 

$

36,882

 

$

6,454

 

$

194,728

 

 

$

125,797

 

$

29,872

 

$

4,719

 

$

160,388

 

Software license

 

2,358

 

 

7,863

 

 

599

 

 

10,820

 

 

 

4,259

 

 

848

 

 

764

 

 

5,871

 

Maintenance

 

53,701

 

 

9,242

 

 

4,258

 

 

67,201

 

 

 

56,497

 

 

9,205

 

 

4,543

 

 

70,245

 

Services

 

181,664

 

 

53,538

 

 

14,824

 

 

250,026

 

 

 

201,584

 

 

53,403

 

 

14,039

 

 

269,026

 

Hardware

 

12,106

 

 

318

 

 

9

 

 

12,433

 

 

 

14,130

 

 

210

 

 

-

 

 

14,340

 

    Total revenue

 

401,221

 

 

107,843

 

 

26,144

 

 

535,208

 

 

 

402,267

 

 

93,538

 

 

24,065

 

 

519,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

166,547

 

 

52,343

 

 

11,892

 

 

230,782

 

 

 

178,800

 

 

49,896

 

 

10,632

 

 

239,328

 

Operating expenses

 

147,170

 

 

11,599

 

 

2,635

 

 

161,404

 

 

 

139,033

 

 

10,106

 

 

2,603

 

 

151,742

 

Depreciation and amortization

 

2,654

 

 

391

 

 

80

 

 

3,125

 

 

 

2,447

 

 

457

 

 

78

 

 

2,982

 

Restructuring expense

 

2,937

 

 

-

 

 

-

 

 

2,937

 

 

 

-

 

 

-

 

 

-

 

 

-

 

Total costs and expenses

 

319,308

 

 

64,333

 

 

14,607

 

 

398,248

 

 

 

320,280

 

 

60,459

 

 

13,313

 

 

394,052

 

Operating income

$

81,913

 

$

43,510

 

$

11,537

 

$

136,960

 

 

$

81,987

 

$

33,079

 

$

10,752

 

$

125,818

 

Interest income

 

 

 

 

 

 

 

1,953

 

 

 

 

 

 

 

 

 

2,917

 

Other income (loss), net

 

 

 

 

 

 

 

99

 

 

 

 

 

 

 

 

 

(1,007

)

Income before income taxes

 

 

 

 

 

 

$

139,012

 

 

 

 

 

 

 

 

$

127,728

 

 

In the following table, we present goodwill, long-lived assets, and total assets by reportable segment as of June 30, 2025 and December 31, 2024 (in thousands):

 

 

As of June 30, 2025

 

 

As of December 31, 2024

 

 

 

Americas

 

 

EMEA

 

 

APAC

 

 

Consolidated

 

 

Americas

 

 

EMEA

 

 

APAC

 

 

Consolidated

 

Goodwill, net

 

$

54,766

 

 

$

5,515

 

 

$

1,963

 

 

$

62,244

 

 

$

54,766

 

 

$

5,497

 

 

$

1,963

 

 

$

62,226

 

Long lived assets

 

 

84,831

 

 

 

12,506

 

 

 

2,262

 

 

 

99,599

 

 

 

83,517

 

 

 

11,501

 

 

 

2,538

 

 

 

97,556

 

Total assets

 

 

596,428

 

 

 

122,090

 

 

 

26,166

 

 

 

744,684

 

 

 

633,157

 

 

 

102,222

 

 

 

22,172

 

 

 

757,551

 

 

We derived revenue from sales to customers outside the United States of approximately $91.5 million and $88.8 million for the three months ended June 30, 2025 and 2024, respectively, and approximately $183.0 million and $172.5 million for the six months ended June 30, 2025 and 2024, 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 six months ended June 30, 2025. The majority of our software license revenue (over 90% and over 70%) relates to our warehouse management product group for the three and six months ended June 30, 2025, respectively.