I should have mentioned Manhattan Associates when I bought it recently at slightly above $40. It’s been climbing since then, and is now over $50. It could be called a turnaround situation, but the change is in their moving to subscriptions for their software.
Their growth is probably not as rapid as, say, Mongo, but they have a long and solid track record, being profitable for a long time, and their change to subscriptions should fuel another high-growth era.
I had such high hopes for this software company but unwound through 2017 after several disappointing quarters and dim prospects for improvement. How did they miss the boat? Was their TAM too small or did they fail to compete with their product?
I think that back then they were not too far along in changing to cloud subscriptions for their software. They’re not finished with that. They still have quite a bit more license revenue than subscription revenue, but the subscription revenue is growing. The details are listed in the latest quarterly results:
“Consolidated total revenue was $144.4 million in Q4 2018, compared to $144.1 million in Q4 2017. License revenue was $13.3 million in Q4 2018, compared to $14.7 million in Q4 2017. Cloud subscription revenue was $6.8 million in Q4 2018, compared to $3.2 million in Q4 2017.”
Their situation is arguably like Adobe’s was when they switched to subscriptions.