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Manhattan Associates helps retailers, wholesalers, manufacturers and logistics providers manage warehouses, inventory and sales across online and physical stores. Retail is its largest market. Customers pay recurring fees to use its Manhattan Active cloud applications, with software updates included in multiyear contracts.
Getting the software working in a customer's business is a major part of what it sells. Most customers also pay Manhattan for services such as implementation, data conversion, training and integration with existing systems, usually billed by the hour. These services are its largest revenue source; together with cloud subscriptions, they provide most of its revenue. A smaller stream comes from support and upgrades for customers using older, permanently licensed software.
The business depends on winning and retaining cloud subscribers, which also generates demand for services. Successful implementation and ongoing support matter because customers rely on the software in their operations. Retailers' willingness to invest in new systems is important, but no single customer dominates revenue.
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Manhattan Associates’ results hinge on spending to modernize supply chains and omnichannel operations, with Blue Yonder/Panasonic an important rival missing from this list.
Descartes and Manhattan Associates compete for retailers, manufacturers and logistics providers paying for software to plan and execute shipments. Descartes’ demand from those customers offers a read on the logistics-software spending that also matters to Manhattan.
SAP competes with Manhattan Associates when enterprises choose supply-chain software built into a broader business-management system, or ERP, rather than specialist applications. SAP’s push to integrate its cloud applications is worth watching for how it positions that broader suite against Manhattan’s specialist software.
Oracle competes with Manhattan Associates for enterprises buying supply-chain software and retailers buying software to handle checkout transactions at the point of sale. Oracle’s offerings in those two areas are the relevant competition for Manhattan, rather than its broader hardware and services businesses.
SPS Commerce and Manhattan Associates address different parts of retail supply-chain digitization: SPS connects companies with trading partners and maintains transaction standards, while Manhattan manages inventory and fulfillment. Demand for SPS’s partner connections offers a view of spending on the transaction infrastructure behind those retail operations.
IBM’s Sterling Commerce applications compete for enterprise spending with Manhattan Associates’ software for carrying out supply-chain operations and managing commerce across sales channels. Sterling Commerce product news is therefore more directly relevant to Manhattan than IBM’s broader hybrid-cloud and AI business.
Trimble’s transportation and logistics business and Manhattan Associates’ supply-chain software both serve companies spending to make freight and distribution more efficient. Trimble’s Transportation and Logistics segment is the part to watch for that demand, rather than its construction or field-systems businesses.
Manhattan Associates Inc earningsThis company
Manhattan Associates is shifting toward cloud subscriptions and related implementation work, and this report will show whether that business is still expanding.
Read cloud-subscription revenue alongside remaining performance obligations (contracted amounts expected to be recognized as revenue later), then check whether services revenue is keeping pace. Growth in both, with stronger services, would suggest customers are signing up for cloud software and moving into implementation. Slower subscription and obligation growth, with weaker services, would point to less momentum in both commitments and deployments, while declining maintenance revenue adds pressure to the transition.
SPS Commerce, Inc. earningsSPSC
SPS Commerce's report will show whether demand for retail supply-chain connections is strengthening, a nearby spending signal for Manhattan Associates' inventory and fulfillment software.
Watch customer demand for SPS Commerce's connections between trading partners. Stronger demand would show retailers and suppliers still investing in digital information exchange across their supply chains, a supportive backdrop for Manhattan Associates' inventory and fulfillment software. Weaker demand would point to cooling in this adjacent spending, but would not by itself show that demand for Manhattan's products has fallen.
Trimble Inc. earningsTRMB
Trimble's Transportation and Logistics business will show whether freight and distribution companies are still buying efficiency tools, a customer spending signal for Manhattan Associates' supply-chain software.
Focus on Trimble's Transportation and Logistics business, not its construction or field-systems results. Strength there would show freight and distribution companies are still spending to improve efficiency, a constructive demand signal for Manhattan Associates' supply-chain software sold to these customers. Weakness would suggest those buyers may be tightening efficiency spending.
Descartes Systems Group Inc earningsDSGX
Descartes Systems Group's report will show demand for shipment software among retailers, manufacturers, and logistics providers, customer groups that also buy overlapping supply-chain software from Manhattan Associates.
Watch demand for Descartes Systems Group's software from retailers, manufacturers, and logistics providers. Stronger demand would show that these customers are still paying for shipment-planning and execution tools, supporting the market backdrop for Manhattan Associates' transportation-management products. Weaker demand could point to tighter budgets or competitive pressure on Descartes in this overlapping market.
