Running hot in customers' hands: existing deployments are being used harder than they were sized for
The model's full reasoning — Q3 2023 call → NOWe need to determine if management describes that the company's product/service/capacity is being used more intensively by existing customers than originally planned, with observable current usage behavior. The transcript mentions load growth, particularly commercial load driven by data centers. Julie says: "The vast majority of that loan growth is coming from data centers located in Ohio, Texas and also in the [indiscernible]." She also says: "We have projects in the Q so you kind of see those ebb and flow, but you're right the infrastructure is in place today the pending or incoming request for additional capacity from our customers." This suggests existing customers (data centers) are using more capacity than planned? Actually, the load growth is from new data center customers? Let's read carefully. In the transcript, Chuck says: "Overall, load has come in ahead of plan all year, and the third quarter was no exception. Looking to the bottom right-hand quadrant. Normalized retail load grew 2.1% in Q3 from a year earlier. You also noticed that we have updated our full year 2023 estimates based on the strong loan growth we've experienced year-to-date. Weather normalized retail load is now expected to finish this year 2.3% higher than 2022, an increase that is nearly 3x higher than our original expectations. This strength comes from exceptional growth in commercial load driven by data centers in Ohio, Texas and Indiana, but the third quarter also saw positive trends in our residential class, which is shown in the upper left-hand quadrant of the slide. Residential load increased for the first time in more than a year in Q3 with growth of 0.6% from a year earlier." So the load growth is from data centers. Are these existing customers or new customers? The question is about existing customers using more intensively. The transcript says "driven by the addition of new data center customers" in the upper right quadrant: "In the third quarter, commercial load was 7.5% higher than a year ago, driven by the addition of new data center customers, mostly in Ohio, Texas and Indiana." So it's new customers, not existing customers using more. That would be new logos, not heavier usage within existing relationships.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| APYX | Apyx Medical Corporation | Q4 2023 | 2024-03-21 | C |
| HP | Helmerich & Payne, Inc. | Q1 2024 | 2024-01-30 | C |
| SCPH | scPharmaceuticals Inc. | Q3 2023 | 2023-11-08 | B |
| DASH | DoorDash, Inc. | Q3 2023 | 2023-11-01 | C+ |
| ADPT | Adaptive Biotechnologies Corporation | Q4 2022 | 2023-02-14 | C+ |
| UPWK | Upwork Inc. | Q2 2022 | 2022-07-27 | C+ |
| FLYW | Flywire Corporation | Q1 2022 | 2022-05-14 | B+ |
| SOPH | SOPHiA GENETICS SA | Q4 2021 | 2022-03-15 | C |
| RELY | Remitly Global, Inc. | Q4 2021 | 2022-03-02 | B |
| ASAN | Asana, Inc. | Q2 2022 | 2021-09-01 | B+ |
| TJX | The TJX Companies, Inc. | Q2 2021 | 2021-08-18 | C |
| WES | Western Midstream Partners, LP | Q3 2018 | 2018-10-31 | D |
| HOLX | Hologic, Inc. | Q4 2017 | 2017-11-08 | D |
| BCE | BCE Inc. | Q2 2017 | 2017-08-05 | B+ |
| CCOI | Cogent Communications Holdings, Inc. | Q2 2017 | 2017-08-03 | B |
| GEO | The GEO Group, Inc. | Q2 2016 | 2016-08-02 | B+ |
TJX · Q2 2021 → YESThe question is about whether management describes that the company's product, service, capacity, or offering — already deployed with existing customers — is being used more intensively than originall...
WES · Q3 2018 → YESThe question is about whether management describes that the company's product, service, capacity, or offering — already deployed with existing customers — is being used more intensively than originall...
BCE · Q2 2017 → YESThe question is about whether management describes that the company's product, service, capacity, or offering — already deployed with existing customers — is being used more intensively than originall...