Manhattan Associates (MANH), a leading supply chain software provider, experienced a significant plummet of 25.83% in its stock price during intraday trading on Wednesday, January 29th, 2025. The steep decline was primarily driven by the company's weaker outlook for 2025, specifically in its services revenue segment.

In its Q4 2024 earnings report, Manhattan Associates reported better-than-expected results, with record bookings and strong demand across its product portfolio. However, the company's guidance for 2025 raised concerns among investors and analysts.

According to the earnings call transcript, Manhattan Associates' Chief Financial Officer, Dennis Story, revealed that approximately 10% of the company's customers with ongoing implementations had reduced their planned services work for 2025, citing budgetary constraints. As a result, the company cut its 2025 services revenue guidance to a range of $494 million to $500 million, down from previous expectations.

In response to the weaker services outlook, several analysts lowered their price targets for Manhattan Associates. Citigroup cut its target price to $244 from $303, D.A. Davidson lowered its target to $270 from $315, and Raymond James reduced its target to $270 from $305.

Despite the challenges in the services segment, Manhattan Associates remained optimistic about its long-term growth prospects, citing a strong pipeline, multiple growth drivers, and a commitment to innovation. The company's CEO, Eddie Capel, expressed confidence in the company's ability to achieve 20% or higher cloud subscription revenue growth over the next several years.