Clarivate Plc (CLVT): Business Model Canvas [11-2024 Updated]

Discover how Clarivate Plc (CLVT) utilizes its innovative Business Model Canvas to drive growth and deliver value in the competitive landscape of intelligence and analytics. By leveraging strategic partnerships, a skilled workforce, and extensive databases, Clarivate creates tailored solutions for diverse sectors such as life sciences and intellectual property. Dive deeper into each component of their business model to understand the key elements that contribute to their success.

Clarivate Plc (CLVT) - Business Model: Key Partnerships

Collaborations with academic institutions and governments

Clarivate Plc has established significant collaborations with various academic institutions and government bodies to enhance its product offerings and expand its reach in the research and academic sectors. Notable partnerships include agreements with universities and research organizations that allow access to Clarivate's proprietary databases and analytics tools. For instance, Clarivate collaborates with over 3,000 universities globally, enhancing academic research capabilities.

Partnerships with technology providers for data analytics

Clarivate has partnered with leading technology providers to enhance its data analytics capabilities. These partnerships facilitate the integration of advanced analytics and artificial intelligence within its platforms. For example, Clarivate collaborates with AWS (Amazon Web Services) to utilize cloud computing for improved data processing and analytics. This partnership enables Clarivate to leverage AWS's machine learning services to enhance its research analytics and insights, thereby improving customer offerings.

Partnership	Technology Provider	Purpose	Year Established
Amazon Web Services (AWS)	AWS	Cloud computing and advanced analytics	2021
Microsoft	Microsoft Azure	Data integration and analytics	2022
IBM	IBM Watson	AI and machine learning integration	2023

Alliances with content creators for enriched data offerings

Clarivate has formed strategic alliances with content creators to enrich its data offerings. These partnerships involve content licensing agreements that allow Clarivate to incorporate high-quality content into its databases. For example, Clarivate has agreements with leading publishers and research organizations, which enhance its Web of Science platform by providing access to a broader range of journals and publications. This approach not only increases the volume of data available to users but also improves the quality of insights derived from the data.

Content Partner	Type of Content	Impact on Offerings
Springer Nature	Journal Articles	Expanded research coverage
Wiley	Scientific Publications	Increased data quality
Elsevier	Research Data	Enhanced analytics capabilities

Clarivate Plc (CLVT) - Business Model: Key Activities

Development of analytical tools and software solutions

In 2024, Clarivate Plc generated total revenues of $1,893.7 million, representing a decline of 2.6% from $1,945.1 million in 2023. Subscription revenues, which are critical for the development of analytical tools, amounted to $1,219.8 million, reflecting an increase of 1.0% year-over-year. The company focuses on developing innovative software solutions that cater to the needs of its diverse clientele across segments such as Academia & Government, Intellectual Property, and Life Sciences & Healthcare.

Subscription management and customer support

Clarivate's subscription management systems are vital for maintaining customer relationships and ensuring high retention rates. The total subscription revenues for the third quarter of 2024 were $411.1 million, slightly up from $408.1 million in the same period of 2023. The customer support framework is designed to enhance user experience and engagement, which is reflected in the recurring revenue stream of $317.8 million for the first nine months of 2024. Clarivate’s ongoing commitment to customer support is critical in addressing user queries and facilitating seamless product usage.

Regular updates and maintenance of product offerings

Clarivate emphasizes the importance of continuous product updates and maintenance to meet customer expectations and adapt to market changes. The company recorded $356.1 million in transactional and other revenues for the first nine months of 2024, down from $412.3 million in 2023. This drop highlights the challenges faced in maintaining transactional revenue streams, which are often dependent on the timely updates and enhancements of existing products. Regular updates not only help in retaining existing customers but also play a significant role in attracting new users to their platforms.

Key Activity	2024 Revenue Impact (in millions)	2023 Revenue Impact (in millions)	Year-over-Year Change (%)
Subscription Revenues	$1,219.8	$1,207.3	1.0%
Recurring Revenues	$317.8	$325.5	(2.4%)
Transactional and Other Revenues	$356.1	$412.3	(13.6%)
Total Revenues	$1,893.7	$1,945.1	(2.6%)

Clarivate Plc (CLVT) - Business Model: Key Resources

Extensive databases and proprietary content

Clarivate Plc maintains a vast portfolio of databases and proprietary content that are critical to its business operations. The company’s databases span various sectors, including academic research, intellectual property, and life sciences. As of September 30, 2024, Clarivate reported total revenues of $1,893.7 million, with subscription revenues contributing $1,219.8 million, reflecting a 1.0% increase year-over-year.

The company’s flagship products include the Web of Science, Derwent Innovation, and Cortellis, which provide researchers, patent professionals, and life sciences entities with valuable insights and analytics. The gross carrying amount of customer relationships, a key intangible asset, stood at $7,850.2 million as of September 30, 2024.

Skilled workforce with expertise in data analytics

Clarivate's workforce is a significant asset, comprising skilled professionals with expertise in data analytics, research methodology, and technology development. As of September 30, 2024, the company reported a total of 4,000 employees globally. This workforce is crucial for developing and maintaining its sophisticated data analytics platforms.

The company invests heavily in talent acquisition and retention, with total share-based compensation expense amounting to $49.7 million for the nine months ended September 30, 2024. This investment in human capital is vital for driving innovation and enhancing the quality of service provided to clients.

Strong brand reputation in intelligence and analytics sectors

Clarivate enjoys a strong brand reputation within the intelligence and analytics sectors, recognized for its commitment to providing high-quality data and insights. The company’s annual renewal rate for subscriptions remained stable at 92% for both 2024 and 2023, indicating strong customer loyalty and satisfaction.

As of September 30, 2024, Clarivate's total shareholders' equity was reported at $5,513.5 million. This strong equity position underlines the company’s financial stability and enhances its reputation in the marketplace.

Key Resource	Description	Financial Data
Databases and Proprietary Content	Extensive databases in research, IP, and life sciences	Subscription revenues: $1,219.8 million (2024)
Skilled Workforce	4,000 employees specializing in data analytics	Share-based compensation: $49.7 million (2024)
Brand Reputation	Strong customer loyalty with a 92% renewal rate	Total shareholders' equity: $5,513.5 million (2024)

Clarivate Plc (CLVT) - Business Model: Value Propositions

Comprehensive insights for informed decision-making

Clarivate Plc provides data and analytics that empower stakeholders across various sectors to make informed decisions. Their platforms integrate comprehensive datasets, enabling users to access critical information for strategic planning. In the nine months ended September 30, 2024, Clarivate reported total revenues of $1,893.7 million, a decline of 2.6% from $1,945.1 million in the same period of 2023.

Subscription-based access to valuable data and analytics

The company's subscription revenues amounted to $1,219.8 million for the nine months ended September 30, 2024, reflecting a year-over-year increase of 1.0% from $1,207.3 million in the same period of 2023. This growth is driven by price increases, although it is somewhat offset by lower net volume in certain segments. Clarivate's subscription model provides a steady revenue stream, with payments typically made at the beginning of the subscription period, allowing for predictable cash flows.

Revenue Type	9 Months Ended September 30, 2024 (in millions)	9 Months Ended September 30, 2023 (in millions)	Change (%)
Subscription	$1,219.8	$1,207.3	1.0%
Re-occurring	$317.8	$325.5	(2.4%)
Transactional and other	$356.1	$412.3	(13.6%)
Total Revenues	$1,893.7	$1,945.1	(2.6%)

Tailored solutions for various sectors like IP and life sciences

Clarivate offers specialized solutions for different industries, particularly in Intellectual Property (IP) and Life Sciences & Healthcare (LS&H). In the first nine months of 2024, the IP segment generated revenues of $602.3 million, down 5.5% from $637.1 million in the previous year. The LS&H segment also saw a decline, with revenues of $307.9 million compared to $324.1 million in 2023, marking a decrease of 5.0%.

The company’s tailored offerings are designed to meet the unique needs of its clients, enhancing user experience and fostering long-term relationships. This strategic focus enables Clarivate to maintain a competitive edge in the market despite the challenges posed by declining transactional revenues and market fluctuations.

Clarivate Plc (CLVT) - Business Model: Customer Relationships

High customer retention rates through subscription model

Clarivate Plc operates primarily on a subscription-based business model, which has resulted in a high annual renewal rate of 92% for both 2024 and 2023. The subscription revenues for the three months ended September 30, 2024, were reported at $411.1 million, reflecting a 0.7% increase from $408.1 million in the same period of 2023. For the nine months ended September 30, 2024, subscription revenues totaled $1,219.8 million, up 1.0% from $1,207.3 million year-over-year.

Dedicated customer support and account management

Clarivate emphasizes customer satisfaction through dedicated support services. The company maintains a robust account management structure, ensuring personalized service for its clients. This focus on customer service is a critical factor in achieving a strong customer retention rate. Furthermore, the company monitors its Annualized Contract Value (ACV), which was $1,596.4 million as of September 30, 2024, indicating a 1.1% increase from $1,579.2 million in 2023. This metric reflects the potential subscription revenue generated from existing customers.

Regular engagement through webinars and training sessions

Clarivate actively engages with its customers through various educational initiatives, including webinars and training sessions designed to optimize the use of its products. This engagement strategy not only enhances customer experience but also fosters loyalty and encourages renewals. The company’s efforts in this area are reflected in the stability of its customer base and the consistent growth of subscription revenues despite market fluctuations.

Metrics	2024 (Q3)	2023 (Q3)	Change (%)
Subscription Revenues	$411.1 million	$408.1 million	0.7%
Annual Renewal Rate	92%	92%	0%
Annualized Contract Value (ACV)	$1,596.4 million	$1,579.2 million	1.1%

The subscription model's predictability allows Clarivate to anticipate and manage customer needs effectively, which is critical in maintaining competitive advantage in the information services market.

Clarivate Plc (CLVT) - Business Model: Channels

Direct sales through online platforms

Clarivate Plc utilizes its online platforms for direct sales, contributing significantly to its revenue stream. For the three months ended September 30, 2024, the company reported subscription revenues of $411.1 million, up from $408.1 million in the same period of 2023, reflecting a growth of 0.7%. The majority of these revenues are generated through its subscription-based services, which customers typically pay at the beginning of the subscription period, ensuring a steady cash flow throughout the year.

Partnerships with resellers and distributors

Clarivate has established partnerships with various resellers and distributors, enhancing its market reach. These partnerships allow the company to leverage the networks of its partners to distribute its products more effectively. As of September 30, 2024, the company reported total revenues of $1,893.7 million for the nine months ended, a decrease from $1,945.1 million in 2023, indicating challenges in the transactional segment which saw a decline of 13.6%. The partnerships play a critical role in navigating these challenges and maintaining customer engagement.

Participation in industry conferences and trade shows

Clarivate actively participates in industry conferences and trade shows to promote its products and forge connections with potential clients. These events are pivotal for showcasing new technologies and services. While specific revenue impacts from these events are not directly quantified, they contribute to brand visibility and customer acquisition efforts. The company's annual renewal rate for subscriptions remained steady at 92% for both the nine months ended September 30, 2024, and 2023, suggesting that engagement efforts, including participation in such events, are effective in retaining customers.

Channel	Revenue (Q3 2024)	Revenue Change (YoY)	Annual Renewal Rate
Direct Sales (Online)	$411.1 million	+0.7%	92%
Partnerships	Part of $1,893.7 million Total Revenue	-2.6%	N/A
Industry Conferences	N/A	N/A	92%

Clarivate Plc (CLVT) - Business Model: Customer Segments

Academic institutions and researchers

Clarivate Plc serves a diverse range of academic institutions, providing them with access to a variety of research and analytics tools. As of September 30, 2024, the Academia & Government segment generated revenues of $321.3 million for the three months ended September 30, 2024, compared to $327.2 million in the same period of 2023, reflecting a decline of 1.8% year-over-year.

The annual renewal rate for subscription services within this segment was 92% for both 2024 and 2023. The total annualized contract value (ACV) for academic institutions was approximately $1,596.4 million as of September 30, 2024.

Corporations in life sciences and healthcare

Corporations within the life sciences and healthcare sector utilize Clarivate's services for intellectual property management and research analytics. The Life Sciences & Healthcare segment reported revenues of $101.1 million for the three months ended September 30, 2024, down from $108.3 million in the prior year, marking a decrease of 6.6%.

These corporations often engage in subscription-based models, with revenues from this segment totaling $307.9 million for the nine months ended September 30, 2024, down from $324.1 million the previous year, reflecting a year-to-date decline of 5.0%. The ACV for this segment was also positively impacted by price increases, although overall volume declined.

Legal firms and patent practitioners

Legal firms and patent practitioners form another critical customer segment for Clarivate. This segment falls under the Intellectual Property (IP) category, which generated $199.8 million in revenues for the three months ended September 30, 2024, compared to $211.7 million in the same quarter of 2023, reflecting a decrease of 5.6%.

For the nine months ended September 30, 2024, the IP segment's revenues totaled $602.3 million, down from $637.1 million in 2023, indicating a decline of 5.5%. This segment also reported a year-to-date decline in transactional revenues, which significantly affected overall performance.

Customer Segment	Q3 2024 Revenue (in million)	Q3 2023 Revenue (in million)	Year-over-Year Change (%)	Annualized Contract Value (ACV) (in million)	Annual Renewal Rate (%)
Academic Institutions	$321.3	$327.2	-1.8%	$1,596.4	92%
Life Sciences & Healthcare	$101.1	$108.3	-6.6%	N/A	N/A
Legal Firms & Patent Practitioners	$199.8	$211.7	-5.6%	N/A	N/A

Clarivate Plc (CLVT) - Business Model: Cost Structure

Personnel expenses for skilled labor

As of September 30, 2024, Clarivate Plc reported personnel costs contributing to the overall cost of revenues, which includes salaries, benefits, and share-based compensation. The total share-based compensation expense amounted to $49.7 million for the nine months ended September 30, 2024, down from $97.1 million in the same period of the previous year. Additionally, the total cost of revenues decreased by 4.8% year-over-year, primarily due to reduced share-based compensation.

Technology and infrastructure investments

Clarivate's technology and infrastructure investments are significant components of their cost structure. The company reported depreciation and amortization expenses of $541.0 million for the nine months ended September 30, 2024, compared to $527.5 million for the same period in 2023. These costs are associated with computer hardware, software, and other technology enhancements necessary for maintaining and upgrading their operational capabilities.

Marketing and sales expenses to acquire new customers

Marketing and sales expenses are critical for customer acquisition, particularly in the competitive landscape of intellectual property and life sciences. The selling, general and administrative (SG&A) costs, which encompass marketing expenses, amounted to $600.5 million for the nine months ended September 30, 2024, an increase from $560.0 million in the same period of 2023. This reflects ongoing investments in sales efforts to drive new customer growth amid fluctuating revenue streams.

Cost Category	Expense (in millions)	Change from Previous Year (%)
Personnel Expenses	$49.7	-48.9%
Technology Investments (Depreciation & Amortization)	$541.0	2.6%
Marketing & Sales Expenses (SG&A)	$600.5	7.9%

Clarivate Plc (CLVT) - Business Model: Revenue Streams

Recurring subscription fees from licenses

For the three months ended September 30, 2024, Clarivate Plc generated $411.1 million in subscription revenues, a slight increase from $408.1 million in the same period of 2023, reflecting a growth rate of 0.7%. For the nine months ended September 30, 2024, subscription revenues reached $1,219.8 million, compared to $1,207.3 million in 2023, marking an increase of 1.0%.

Transactional revenues from consulting services

Transactional and other revenues for Clarivate Plc totaled $104.4 million for the three months ended September 30, 2024, a significant decrease from $132.3 million in the prior year, representing a decline of 21.1%. For the nine months ended September 30, 2024, this revenue stream amounted to $356.1 million, down from $412.3 million in 2023, which is a decrease of 13.6%.

Re-occurring revenues from IP maintenance services

Re-occurring revenues, primarily derived from patent and trademark maintenance services, amounted to $106.7 million in the third quarter of 2024, a slight decline from $106.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, these revenues totaled $317.8 million, down from $325.5 million in the previous year, indicating a decrease of 2.4%.

Revenue Stream	Q3 2024 Revenue ($ million)	Q3 2023 Revenue ($ million)	Change (%)	9M 2024 Revenue ($ million)	9M 2023 Revenue ($ million)	Change (%)
Subscription Fees	411.1	408.1	0.7%	1,219.8	1,207.3	1.0%
Transactional Revenues	104.4	132.3	-21.1%	356.1	412.3	-13.6%
Re-occurring Revenues	106.7	106.8	-0.1%	317.8	325.5	-2.4%

Updated on 16 Nov 2024

Resources:

1. Clarivate Plc (CLVT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Clarivate Plc (CLVT)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Clarivate Plc (CLVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.