Winning is getting easier: management describes the effort needed to land each new piece of business visibly falling, wi
The model's full reasoning — Q1 2023 call → NOWe need to determine if management conveys that it has recently become easier for the company to win business than it used to be, grounded in real recent wins, and still in effect. Looking at the transcript, Ted Karkus discusses several business lines. He talks about the manufacturing facility: "We have a manufacturing facility that is at capacity for which we have enormous demand. We are extremely well thought of in the industry. And from a lozenge brand's point of view, reliability of supply is critically important. The retailers go ballistic... So there are supply chain issues in the lozenges business, which is a rather large business globally. And so we have brands, some of the largest brands in the world are coming to us and want us to do their manufacturing, some of them want us to do all of their manufacturing, not only in the United States but globally." This indicates that brands are coming to them, which suggests less effort in winning business. However, does he compare against the company's own past? He says "We originally kept this business primarily just to keep our infrastructure and distribution in place... But this is a business that's actually exploding. It's growing almost a 100% per year." He mentions growth but not necessarily a contrast between past difficulty and current ease. He does say "we have demand for at least $25 million of revenues next year in 2024, and we're just constrained by how quickly we can build out the additional capacity." That suggests demand is high, but not explicitly that it's easier than before. He does mention "reliability of supply is critically important" and that retailers get upset when shelves are empty, implying that because of supply chain issues, brands are coming to them. But is that a temporary condition? Possibly, but he says "some of the largest brands in the world are coming to us" - that is real business won. However, is there a comparison to the company's own past? He says "I originally kept this business primarily just to keep our infrastructure and distribution in place" implying that before it was just for maintaining distribution, but now it's exploding. That could be a contrast. Now for Nebula Genomics: "In the meantime, our revenues are running up more than 100% year over year anyway." That's growth, but again no explicit comparison of ease.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| NICE | NICE Ltd. | Q4 2023 | 2024-02-22 | B+ |
| ACGL | Arch Capital Group Ltd. | Q4 2023 | 2024-02-15 | B+ |
| VRNS | Varonis Systems, Inc. | Q2 2016 | 2016-08-09 | B+ |
| ACCO | ACCO Brands Corporation | Q1 2016 | 2016-04-27 | B+ |
ACCO · Q1 2016 → YESThe question is: Does management convey that IT HAS RECENTLY BECOME EASIER FOR THE COMPANY TO WIN BUSINESS THAN IT USED TO BE, based on real recent wins, and still in effect. YES The transcript shows management conveying that winning business has become easier than in the company's recent past. Boris Elisman states that customers have seen the value of the company's strong brands during the past couple of seasons, resulting in broader and deeper penetration in mass retailers and continued share gains.
NICE · Q4 2023 → YESThe question is: Does management convey that IT HAS RECENTLY BECOME EASIER FOR THE COMPANY TO WIN BUSINESS THAN IT USED TO BE, grounded in real business won recently, and still in effect.
VRNS · Q2 2016 → YESThe question is whether management conveys that it has recently become easier for the company to win business than it used to be, grounded in real recent wins, and still in effect.