What happened

Shares of Manhattan Associates (NASDAQ:MANH) grew a robust 11.4% in November, according to data from S&P Global Market Intelligence. Though there wasn't much news from the company during the month, the stock's movement was perhaps a delayed positive reaction to the company's Oct. 22 third-quarter earnings report.

In addition, Manhattan Associates likely benefited from generally rising market sentiment for technology stocks, which outpaced the broader market in November on greater optimism for a U.S.-China trade deal.

Two workers sort through cardboard boxes in a back storeroom and look at a tablet computer.

Image source: Getty Images.

So what

In the third quarter, Manhattan Associates reported 14% revenue growth and adjusted earnings-per-share (EPS) growth of 4%. While the EPS figure may seem like a letdown, both figures beat analyst expectations. Manhattan Associates is also making a transition to delivering its software via the cloud, rather than with a one-off license. Typically when companies do that, growth is suppressed for a period of time as subscriptions are recognized monthly or quarterly, rather than as one-time large purchases.

Adding fuel to the fire, management also raised its full-year guidance across the board, raising revenue expectations to 9%-10% growth, up from 7% to 8% growth, and operating margins to 17.7%-17.9%, up from previous guidance of 15.6% to 15.8%.

Now what

Clearly, customers are getting satisfaction from and growing their use of Manhattan Associates' solutions. The company's software helps businesses efficiently manage inventory, supply chain, and logistics, which are key capabilities in the new world of omnichannel retail. In addition, the company's point-of-sale software, a new product just being adopted by initial customers, puts Manhattan squarely in competition with some very prominent fintech companies as well.

All in all, as long as U.S. consumer spending remains healthy, Manhattan Associates' products should remain in demand, boding well for this software company's future.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.