Question Bank › Earned recurrence: demand arriving from first-ha

Earned recurrence: demand arriving from first-hand-proven buyers, still early

Calls Tested
489
Answered YES
4
Hit Rate
0.8%
rare by design

Autodesk, Inc. (ADSK) — this company's answers

NO on the Q3 2019 call 2018-11-20 A
The model's full reasoning — Q3 2019 call → NOWe need to determine if management describes that a meaningful share of current business growth is arriving without the company having to persuade the buyer, i.e., earned recurrence from parties with direct prior experience, and that this pattern is still early with most contribution ahead. Let's analyze the transcript. The question asks about "earned-recurrence pattern" where demand is increasingly generated by parties with direct prior experience, not by company's own selling push. Also, management must convey that this is still early enough that most of the business it will generate is still ahead. Look for statements about renewals, expansions, customer behavior, etc. The transcript mentions strong renewal rates, M2S program, collections adoption, EBA growth, etc. But are these described as "earned recurrence" where prior experience drives demand? Or are they driven by company's pricing, promotions, sales efforts? Key points: - Renewal rates for maintenance and product subscriptions picked up slightly, in line with planning assumptions. That's not necessarily "earned recurrence" but normal renewal. - M2S program: customers migrating to product subscriptions, with high renewal rates because program is sticky. That's more about program design. - EBA growth: strong, but that's company's sales effort. - Collections adoption: faster than planned, but that's due to product mix and pricing. - The question specifically asks about "parties with DIRECT PRIOR EXPERIENCE" generating business on their own initiative. Is there any mention of customers expanding, returning, deepening based on their own experience? There is mention of "expanded deal with Daiwa House" and "Ford to an EBA" but these are company-initiated sales efforts. Also, the question asks if management conveys that this pattern is still early with most contribution ahead. There is no such statement. The transcript focuses on company's execution, pricing, sales, and product adoption. There is no explicit description of a phenomenon where prior experience itself drives demand without persuasion. The renewal rates are in line with planning, not described as a new driver. The M2S program is a company initiative. So the answer is NO. Thus, answer NO.

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Show the exact prompt the model was given
Using ONLY the supplied earnings call transcript and no outside information: On this call, does management describe that a MEANINGFUL SHARE OF THE COMPANY'S CURRENT BUSINESS GROWTH is arriving WITHOUT THE COMPANY HAVING TO PERSUADE THE BUYER — that is, demand is increasingly generated by parties with DIRECT PRIOR EXPERIENCE of what the company provides (customers with first-hand experience expanding, returning, renewing, deepening, or referencing; parties that have already used, deployed, trialed, tested, sampled, piloted, or bought an initial piece of what the company sells now coming back for more; an installed base pulling follow-on business through on its own), rather than by the company's own selling, marketing, pricing, promotions, or new-logo acquisition push — AND does management convey that this earned-recurrence pattern is STILL EARLY enough that most of the business it will generate is still ahead of the reported results? Answer YES when management's own words convey, in whatever form fits the business, ONE coherent phenomenon: parties with first-hand experience of the company's offering are generating business on their own initiative — as a real, current, observable pattern in how the company's demand is being produced today — and management treats this as meaningful to where the company is heading with most of the contribution still ahead. Management need not use any particular vocabulary; it may show up in how it describes demand sources, customer behavior, reorder dynamics, expansion of proven relationships, or the decreasing role of persuasion in winning business. Answer NO if growth is described mainly through the company's own selling push, pricing actions, promotions, marketing, or new-logo acquisition, however strong. NO if the 'return' activity is merely a contractually forced renewal, a standing subscription auto-charge, or an ordinary slow-order cadence, with no sense that prior experience itself is now driving the demand. NO if the earned recurrence is only hoped for, planned, or projected rather than already observable. NO if the only evidence is one isolated anecdote with no broader pattern. NO if the recurrence is already mature and fully reflected in the reported results, with no meaningful contribution still ahead. NO if management attributes the shift to a one-time event, a temporary spike, or a pull-forward it expects to reverse. NO if the idea appears only in an analyst's question that management does not itself affirm. Use only the supplied transcript. Answer only YES or NO.

Companies that answered YES

TickerCompanyCallDateCall grade
LTRX Lantronix, Inc. Q3 2024 2024-04-29 C
DASH DoorDash, Inc. Q3 2023 2023-11-01 C+
ATI Allegheny Technologies Incorporated Q1 2018 2018-04-24 B
UPLD Upland Software, Inc. Q4 2017 2018-03-08 C+

How the model reasoned

ATI · Q1 2018 → YESThe question is about whether management describes a meaningful share of the company's current business growth arriving without the company having to persuade the buyer, from parties with direct prior...YES Management describes a meaningful share of current growth coming from parties with direct prior experience—Boeing and Airbus exercising their supply chain after assessing geopolitical risks, plus customers awarding forgings based on 2017 actions and continuing to do so in 2018—while treating this as still early, with most of the contribution 2019–2020 and beyond as the multi-year production expansion unfolds.
LTRX · Q3 2024 → YESThe question is: Does management describe that a MEANINGFUL SHARE OF THE COMPANY'S CURRENT BUSINESS GROWTH is arriving WITHOUT THE COMPANY HAVING TO PERSUADE THE BUYER — demand generated by parties wi...
DASH · Q3 2023 → YESThe question is: Does management describe that a MEANINGFUL SHARE OF THE COMPANY'S CURRENT BUSINESS GROWTH is arriving WITHOUT THE COMPANY HAVING TO PERSUADE THE BUYER — demand generated by parties wi...

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Not investment advice. Artul.ai publishes AI-generated earnings-call quality grades and expected-volatility estimates — never buy or sell recommendations. We tested over 1,600 predictive hypotheses against 165,000 transcripts; the honest result, including what failed, is documented in our methodology.