Manhattan Associates, Inc. (MANH): Business Model Canvas [10-2024 Updated]
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Manhattan Associates, Inc. (MANH) Bundle
In today's fast-paced business environment, understanding the intricacies of a company's operations is crucial for investors and analysts alike. The Business Model Canvas of Manhattan Associates, Inc. (MANH) reveals how this leading provider of supply chain software solutions positions itself in the market. From key partnerships with tech giants to a focus on cloud-based innovations, Manhattan Associates demonstrates a robust strategy aimed at delivering comprehensive solutions to diverse industries. Explore the components of their business model below to gain insights into their operational excellence and market potential.
Manhattan Associates, Inc. (MANH) - Business Model: Key Partnerships
Collaborations with third-party hardware manufacturers
Manhattan Associates collaborates with various third-party hardware manufacturers to enhance its supply chain solutions. In 2024, the hardware revenue was $19.3 million for the nine months ended September 30, compared to $18.8 million in the same period in 2023, reflecting a 3% increase.
| Partnership | Contribution to Revenue (2024) | Contribution to Revenue (2023) | Percentage Change |
|---|---|---|---|
| Third-Party Hardware Manufacturers | $19.3 million | $18.8 million | 3% |
Partnerships with cloud service providers
In 2024, Manhattan Associates reported cloud subscription revenue of $246.9 million for the nine months ended September 30, up from $183.2 million in 2023, indicating a growth of 35%. The shift towards cloud services is attributed to strategic partnerships with leading cloud service providers, which have enabled the company to offer robust cloud-native solutions.
| Cloud Service Provider | Revenue Contribution (2024) | Revenue Contribution (2023) | Percentage Change |
|---|---|---|---|
| Cloud Partnerships | $246.9 million | $183.2 million | 35% |
Alliances with consulting firms for implementation services
Manhattan Associates has formed alliances with various consulting firms to bolster its implementation services. For the nine months ended September 30, 2024, services revenue, which includes consulting and implementation, was $406.0 million, an increase of 10% from $368.7 million in 2023. The firm’s focus on enhancing customer experience through these partnerships has been a significant driver of revenue growth.
| Consulting Firm Partner | Implementation Revenue Contribution (2024) | Implementation Revenue Contribution (2023) | Percentage Change |
|---|---|---|---|
| Consulting Partnerships | $406.0 million | $368.7 million | 10% |
Manhattan Associates, Inc. (MANH) - Business Model: Key Activities
Development of cloud-based software solutions
Manhattan Associates focuses heavily on the development of cloud-based software solutions tailored for supply chain and omnichannel operations. For the nine months ended September 30, 2024, the company reported cloud subscription revenue of $246.9 million, up from $183.2 million for the same period in 2023, representing a growth of 35%. This growth reflects a significant shift in customer preferences towards cloud-native solutions, with approximately 14% of new cloud subscriptions in the third quarter being signed by new customers.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cloud Subscription Revenue | $86.5 million | $65.0 million | 33% |
| Software License Revenue | $3.8 million | $3.9 million | -3% |
| Maintenance Revenue | $34.5 million | $35.3 million | -2% |
| Services Revenue | $137.0 million | $128.0 million | 7% |
| Total Revenue | $266.7 million | $238.4 million | 12% |
Implementation and support services for clients
In addition to software development, Manhattan Associates provides comprehensive implementation and support services. The services revenue for the nine months ended September 30, 2024, reached $406.0 million, an increase of 10% from $368.7 million in the same period of 2023. The implementation services are designed to assist customers in effectively deploying solutions, ensuring smooth transitions and ongoing support, which is critical for maintaining customer satisfaction and retention.
Research and development in supply chain technology
Research and Development (R&D) remains a core activity for Manhattan Associates, with R&D expenses amounting to $104.7 million for the nine months ended September 30, 2024, compared to $95.5 million for the same period in 2023, reflecting a year-over-year increase of 9%. This investment enables the company to innovate and enhance its supply chain technology offerings, ensuring they remain competitive in a rapidly evolving market.
| R&D Expenses | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| R&D Expenses | $34.3 million | $33.1 million | 4% |
Overall, the strategic focus on cloud solutions, customer support, and R&D solidifies Manhattan Associates' position as a leader in supply chain technology, facilitating sustained revenue growth and enhancing customer value.
Manhattan Associates, Inc. (MANH) - Business Model: Key Resources
Intellectual property in software development
Manhattan Associates holds a significant portfolio of intellectual property, particularly in software development tailored for supply chain and omnichannel commerce solutions. As of September 30, 2024, the company reported a total revenue of $786.6 million for the first nine months of 2024, with cloud subscription revenue contributing $246.9 million, reflecting a 35% increase compared to the same period in 2023.
The company has focused its research and development (R&D) efforts on enhancing its Unified Omnichannel Commerce and Digital Supply Chain solutions, with R&D expenses totaling $34.3 million for the third quarter of 2024. This investment underscores the importance of intellectual property in maintaining competitive advantage in a rapidly evolving market.
Skilled workforce including software engineers and consultants
As of September 30, 2024, Manhattan Associates employed approximately 4,700 individuals globally. The workforce is composed of skilled professionals, including software engineers and consultants, who are essential to the development and implementation of the company’s software solutions. The company’s investment in its workforce is reflected in its operating income, which reached $200.9 million for the first nine months of 2024, compared to $151.0 million in the same period in 2023.
The efficiency and expertise of this skilled workforce contribute significantly to customer satisfaction and retention, as evidenced by the 86% of cloud subscription revenue coming from existing customers.
Strong brand reputation in supply chain management
Manhattan Associates has established a strong brand reputation within the supply chain management sector, recognized as a market leader by industry analysts such as Gartner and ARC Advisory Group. The company's solutions are mission-critical for many leading global brands, which enhances its brand equity and customer loyalty.
In the nine months ending September 30, 2024, the company generated a significant portion of its revenue from its services segment, amounting to $406.0 million, or 52% of total revenue. This consistent performance is indicative of the trust and reliability associated with the Manhattan Associates brand in delivering effective supply chain solutions.
| Resource Type | Description | Financial Impact |
|---|---|---|
| Intellectual Property | Portfolio of software solutions for supply chain management | Revenue: $786.6 million (2024 YTD) |
| Skilled Workforce | Approximately 4,700 employees, including engineers and consultants | Operating Income: $200.9 million (2024 YTD) |
| Brand Reputation | Strong recognition as a market leader in supply chain solutions | Service Revenue: $406.0 million (52% of total revenue) |
Manhattan Associates, Inc. (MANH) - Business Model: Value Propositions
Comprehensive supply chain solutions for diverse industries
Manhattan Associates provides a wide array of supply chain solutions tailored for various industries, including retail, wholesale, manufacturing, and logistics. Their offerings include Unified Omnichannel Commerce and Digital Supply Chain solutions, which are designed to optimize inventory management, transportation, and warehouse operations. For the nine months ended September 30, 2024, the company generated approximately $786.6 million in total revenue, reflecting a 14% increase compared to the same period in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Cloud Subscriptions | $86,485 | $65,033 | 33% |
| Software License | $3,762 | $3,870 | -3% |
| Maintenance | $34,491 | $35,296 | -2% |
| Services | $137,009 | $127,965 | 7% |
| Hardware | $4,934 | $6,277 | -21% |
High-quality customer support and software maintenance
Manhattan Associates emphasizes high-quality customer support and software maintenance, which is crucial for retaining customers and ensuring the effective implementation of their solutions. Maintenance revenue for the three months ended September 30, 2024, totaled $34.5 million, representing 13% of total revenue and a slight decrease of 2% compared to the previous year. The company offers a comprehensive 24/7 support program that includes software upgrades, ensuring customers benefit from the latest technological advancements.
Flexibility of cloud-based and on-premise options
Manhattan Associates provides flexibility through both cloud-based and on-premise deployment options, catering to diverse customer preferences. The shift towards cloud solutions is evident, with cloud subscription revenue increasing by 35% year-over-year for the nine months ended September 30, 2024, amounting to $246.9 million. Customers exhibit a clear preference for cloud-based services, with approximately 86% of new cloud subscriptions signed in the nine months being with existing customers.
| Deployment Model | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Cloud Subscriptions | $86,485 | $65,033 | 33% |
| On-Premise Solutions | $3,762 | $3,870 | -3% |
Manhattan Associates, Inc. (MANH) - Business Model: Customer Relationships
Ongoing support through professional services
In the third quarter of 2024, Manhattan Associates reported services revenue of $137.0 million, accounting for 51% of total revenue. This marked a 7% increase compared to $127.9 million in the same quarter of 2023.
For the nine months ended September 30, 2024, services revenue totaled $406.0 million, representing 52% of total revenue, up from $368.7 million in the same period of 2023. The Americas segment contributed $304.2 million to this total, while EMEA and APAC generated $80.2 million and $21.6 million, respectively.
Manhattan Associates provides comprehensive professional services, including planning, implementation, and ongoing support, which are vital for customer success and satisfaction.
Regular engagement through customer feedback and updates
Customer engagement is crucial for maintaining and enhancing relationships. As of September 30, 2024, approximately 86% of new cloud subscriptions were signed with existing customers. The company actively seeks feedback through various channels to ensure their solutions meet evolving customer needs, evidenced by an increase in cloud subscriptions revenue of $246.9 million for the nine months ended September 30, 2024, up from $183.2 million in the same period of 2023.
Furthermore, the percentage of professional services revenue related to cloud subscriptions increased to 74% in the third quarter of 2024, compared to 70% in the previous year. This highlights the importance of continuous customer interaction to drive service uptake and enhance customer satisfaction.
Building long-term partnerships with clients
Manhattan Associates is focused on establishing long-term partnerships with clients by offering tailored solutions that address specific industry needs. As of September 30, 2024, the company had approximately $1.7 billion in remaining performance obligations, over 98% of which are cloud-native subscriptions.
In the nine months ended September 30, 2024, cloud subscriptions revenue increased by $63.7 million compared to the same period in the prior year. The company’s commitment to innovation and customer success fosters strong relationships, encouraging clients to renew contracts and expand their use of Manhattan's solutions.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Services Revenue | $137.0 million | $127.9 million | 7% |
| Cloud Subscriptions Revenue | $246.9 million | $183.2 million | 35% |
| Professional Services Revenue (Cloud) | 74% | 70% | 4% |
| Remaining Performance Obligations | $1.7 billion | N/A | N/A |
Overall, the focus on ongoing support, customer feedback, and long-term partnerships is integral to Manhattan Associates' strategy, ensuring they meet customer needs and foster loyalty within a competitive market.
Manhattan Associates, Inc. (MANH) - Business Model: Channels
Direct sales through the company's website and sales team
Manhattan Associates, Inc. utilizes its website as a direct sales channel, enabling customers to access its software solutions and services. The company reported a consolidated total revenue of $266.7 million for the third quarter of 2024, reflecting a 12% increase compared to $238.4 million in the same quarter of 2023. The sales team plays a crucial role in acquiring new customers and managing relationships with existing ones, contributing to the overall revenue growth.
Partnerships with resellers and distributors
Manhattan Associates partners with various resellers and distributors to extend its market reach. In the nine months ended September 30, 2024, the company generated $786.6 million in consolidated revenue, with cloud subscription revenue accounting for $246.9 million, a 35% increase from the prior year. These partnerships enhance distribution capabilities and facilitate access to a broader customer base.
| Channel Type | Revenue Contribution | Growth Rate |
|---|---|---|
| Direct Sales | $266.7 million (Q3 2024) | 12% |
| Cloud Subscriptions | $246.9 million (9M 2024) | 35% |
| Software License | $9.6 million (9M 2024) | -26% |
Participation in industry conferences and events
Manhattan Associates actively participates in industry conferences and events, showcasing its solutions and networking with potential customers and partners. This engagement is critical for brand visibility and thought leadership in the supply chain solutions market. The company has reported that approximately 14% of new non-cancelable cloud subscriptions signed in the three months ended September 30, 2024 were with new customers, indicating the effectiveness of these channels.
Manhattan Associates, Inc. (MANH) - Business Model: Customer Segments
Retailers and wholesalers
Manhattan Associates serves a diverse array of retailers and wholesalers, focusing on enhancing their supply chain operations through advanced software solutions. As of September 30, 2024, the company reported total revenue of $786.6 million for the nine months ending, with services revenue accounting for approximately $406.0 million, which represents 52% of total revenue. The cloud subscriptions revenue from this segment increased significantly, reaching $246.9 million, up from $183.2 million during the same period in 2023.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Cloud Subscriptions | 86,485 | 65,033 | 33% |
| Services | 137,009 | 127,965 | 7% |
| Maintenance | 34,491 | 35,296 | -2% |
| Total Revenue | 266,681 | 238,441 | 12% |
Manufacturers and logistics providers
Manufacturers and logistics providers represent another essential customer segment for Manhattan Associates. These clients benefit from the company's innovative digital supply chain solutions, which are designed to streamline operations and improve efficiency. The company's operating income for the nine months ended September 30, 2024, was $200.9 million, reflecting a strong operating margin of 25.5%. The continuous investment in research and development, which amounted to $34.3 million for Q3 2024, is aimed at enhancing offerings tailored to the needs of manufacturers and logistics providers.
| Segment | Revenue (Q3 2024) (in thousands) | Revenue (Q3 2023) (in thousands) | Operating Income (Nine Months Ended Sept 30, 2024) (in millions) |
|---|---|---|---|
| Manufacturers | Estimated Revenue | Estimated Revenue | 200.9 |
| Logistics Providers | Estimated Revenue | Estimated Revenue | 200.9 |
Enterprises seeking supply chain optimization
Enterprises focused on supply chain optimization are increasingly turning to Manhattan Associates for solutions that enhance operational efficiency and enable scalability. The company's cloud subscriptions revenue, which is largely derived from this segment, totaled $246.9 million for the nine months ended September 30, 2024. The company has positioned itself as a market leader in supply chain management, with a strong emphasis on innovation and customer-centric solutions, which has driven a 14% increase in new cloud subscriptions from existing customers.
| Metrics | Q3 2024 | Q3 2023 | Growth Rate |
|---|---|---|---|
| Cloud Subscriptions Revenue | $86,485,000 | $65,033,000 | 33% |
| Services Revenue | $137,009,000 | $127,965,000 | 7% |
| Operating Margin | 28.2% | 22.4% | 5.8% |
Manhattan Associates, Inc. (MANH) - Business Model: Cost Structure
Research and Development Expenses
For the nine months ended September 30, 2024, Manhattan Associates incurred $104.7 million in research and development (R&D) expenses, reflecting an increase from $95.5 million in the same period in 2023. This increase was primarily attributed to a $10.5 million rise in compensation and other personnel-related expenses, countered by a $1.2 million decrease in performance-based compensation expense.
| Period | R&D Expenses (in millions) |
|---|---|
| 2024 Q3 | $34.3 |
| 2023 Q3 | $33.1 |
| 2024 9M | $104.7 |
| 2023 9M | $95.5 |
Sales and Marketing Costs
Sales and marketing expenses for the nine months ended September 30, 2024, totaled $55.7 million, up from $54.3 million in the previous year. The increase was primarily due to a $2.2 million rise in compensation and other personnel-related expenses, alongside a $0.3 million increase in marketing and campaign programs.
| Period | Sales and Marketing Expenses (in millions) |
|---|---|
| 2024 Q3 | $16.6 |
| 2023 Q3 | $17.7 |
| 2024 9M | $55.7 |
| 2023 9M | $54.3 |
Operational Costs Related to Software Maintenance and Support
Operational costs associated with software maintenance and support amounted to $104.7 million for the nine months ended September 30, 2024, consistent with the previous year's $106.8 million. Maintenance revenue for the same period totaled $104.7 million, representing 13% of total revenue for 2024.
| Period | Maintenance Revenue (in millions) |
|---|---|
| 2024 Q3 | $34.5 |
| 2023 Q3 | $34.5 |
| 2024 9M | $104.7 |
| 2023 9M | $106.8 |
Manhattan Associates, Inc. (MANH) - Business Model: Revenue Streams
Cloud Subscription Fees
For the nine months ended September 30, 2024, Manhattan Associates generated $246.9 million in cloud subscription revenue, reflecting a 35% increase compared to $183.2 million in the same period of 2023. This revenue accounted for 31% of total revenue for the nine months of 2024, up from 27% in 2023.
In the third quarter of 2024, cloud subscription revenue rose to $86.5 million, an increase of 33% from $65.0 million in the third quarter of 2023. The breakdown of cloud subscription revenue by geographic segment for the third quarter of 2024 is as follows:
| Segment | Cloud Subscription Revenue (in thousands) | Year-Over-Year Growth |
|---|---|---|
| Americas | $67,708 | 28% |
| EMEA | $16,158 | 56% |
| APAC | $2,619 | 42% |
| Total | $86,485 | 33% |
Software Licenses and Maintenance Revenue
Software license revenue for the nine months ended September 30, 2024 totaled $9.6 million, a decrease of 26% from $12.97 million in 2023. This represented 1% of total revenue for 2024, down from 2% in 2023.
In the third quarter of 2024, software license revenue was $3.8 million, accounting for 1% of total revenue, compared to $3.9 million in the same quarter of 2023.
Maintenance revenue for the nine months ended September 30, 2024 was $104.7 million, a slight decrease of 2% from $106.8 million in 2023, making up 13% of total revenue in both years. For the third quarter of 2024, maintenance revenue was $34.5 million, or 13% of total revenue, down from $35.3 million in 2023.
Professional Services and Hardware Sales
Professional services revenue for the nine months ended September 30, 2024 reached $406.0 million, an increase of 10% compared to $368.7 million in 2023. This accounted for 52% of total revenue for the nine months of 2024, compared to 53% in 2023.
In the third quarter of 2024, services revenue was $137.0 million, reflecting a 7% increase from $128.0 million in the same quarter of 2023, and representing 51% of total revenue for Q3 2024.
Hardware sales totaled $19.3 million for the nine months ended September 30, 2024, an increase of 3% from $18.8 million in 2023. In the third quarter of 2024, hardware revenue was $4.9 million, a decrease of 21% compared to $6.3 million in the third quarter of 2023.
| Revenue Stream | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Cloud Subscriptions | $86,485 | $65,033 | 33% |
| Software Licenses | $3,762 | $3,870 | -3% |
| Maintenance | $34,491 | $35,296 | -2% |
| Services | $137,009 | $127,965 | 7% |
| Hardware | $4,934 | $6,277 | -21% |
| Total Revenue | $266,681 | $238,441 | 12% |
The overall revenue for Manhattan Associates for the nine months ended September 30, 2024 was $786.6 million, representing a 14% increase from $690.5 million in 2023.
Article updated on 8 Nov 2024
Resources:
- Manhattan Associates, Inc. (MANH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Manhattan Associates, Inc. (MANH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Manhattan Associates, Inc. (MANH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.