Manhattan Associates (MANH) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our future revenue is dependent on continuing sales from cloud subscriptions, which in turn drive sales of professional services
2. 02Delays in implementing our products could adversely impact our business, results of operations, cash flow, and financial condition
3. 03Our liability to clients may be substantial if our systems fail, which could adversely impact our business, results of operations, cash flow, and financial condition
4. 04Our ability to sell our cloud solutions is highly dependent on the quality of our services offerings, and our failure to offer high quality services could adversely impact our business, results of operations, cash flow, and financial condition
5. 05Our use of generative artificial intelligence (“AI”) tools may expose us to operational, compliance or other risks, which could adversely impact our business, results of operations, cash flow and financial condition, and subject us to legal liability
6. 06Protection of our proprietary rights
7. 07AI adoption-related risk
8. 08Cybersecurity and Third-Party Rights
9. 09Our pricing models may need to be modified due to price competition
10. 10We may encounter long sales cycles, particularly with our larger customers, which could have an adverse effect on the amount, timing, and predictability of our revenue, adversely affecting our business, results of operations, cash flow, and financial condition
11. 11Our technology must be advanced if we are to remain competitive
12. 12Our ability to maintain and develop our brand is critical for our continued success
13. 13Disruption in our vertical markets could materially affect our revenues and results of operations
14. 14Inability to attract, integrate, and retain management and other personnel could adversely impact our business, results of operations, cash flow, and financial condition
15. 15We may not be able to continue to successfully compete with other companies
16. 16Our operating results are substantially dependent on one line of business
17. 17Because we recognize revenue from our cloud subscriptions over the term of the subscription, downturns or upturns in new business may not be immediately reflected in our results of operations
18. 18Our research and development activities may not generate significant returns
19. 19Our growth is dependent upon the successful development of our direct and indirect sales channel mix
20. 20Mergers or other strategic transactions involving our competitors could weaken our competitive position or reduce our revenue
21. 21Our business, results of operations, cash flow, and financial condition may be adversely affected if we cannot integrate acquired companies or manage joint ventures
22. 22Our business may require additional capital

Risks Related to Our Intellectual Property and Cybersecurity

1. 23Our software may contain undetected errors or “bugs” causing harm to our reputation, which could adversely impact our business, results of operations, cash flow, and financial condition
2. 24If we are unable to develop software applications that interoperate with computing platforms developed by others, our business, results of operations, cash flow, and financial condition may be adversely affected
3. 25We incorporate third-party software in our solutions, the failure or unavailability of which could adversely affect our ability to sell, support, and service our products
4. 26Liability for intellectual property claims can be costly and result in the loss of significant rights, which could adversely impact our business, results of operations, cash flow, and financial condition
5. 27Our failure to adequately protect our proprietary rights could adversely impact our business, results of operations, cash flow, and financial condition
6. 28The use of open source software in our products may expose us to additional risks and harm our intellectual property, which could adversely impact our business, results of operations, cash flow, and financial condition

Risks Related to Laws and Regulations

1. 29We may have exposure to additional tax liabilities
2. 30We can be subject to criminal or civil liability if we fail to comply with anti-corruption and anti-boycott regulations, and that can adversely affect our business, financial condition, and results of operations
3. 31Other laws and regulations

Risks Related to International Operations

1. 32Our international operations have many associated risks
2. 33Our operating results may include foreign currency gains and losses
3. 34Our employee retention and hiring may be hindered by immigration restrictions, which could adversely impact our business, results of operations, cash flow, and financial condition

Risks Related to Our Common Stock

1. 35Our stock price has been highly volatile
2. 36Our operating results are difficult to predict and could cause our stock price to fall
3. 37Our articles of incorporation and bylaws and Georgia law may inhibit a takeover of our company

Other Risk Factors

1. 38Economic, political and market conditions can adversely affect our business, results of operations, cash flow and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price
2. 39Changes in, or interpretation of, accounting principles could result in unfavorable accounting changes
3. 40Adverse litigation results could affect our business
4. 41The effects of a pandemic, such as the COVID-19 pandemic, or other major public health crisis could materially adversely affect our business, results of operations and financial condition
5. 42Fires or other catastrophic events at our principal facilities could disrupt our business