Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

Please consider a small donation if you think this website provides you with relevant information  

    

Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
The flexibility that we can offer assures our customer more resilience in the downturn
I would say in the last downturn, we did benefit, obviously, from the various industry verticals we had going in and out of that cycle at different stages
And what you can see from that is that we'll see pretty good growth
And so that subscription model, I mean, it's a fantastic thing
People started to realize moving to the cloud delivered a lot of substantial benefits, but they associate them with what I would call first order benefits, which are things like collaboration and connectivity, which is great in a supply chain
It generates opportunity for us
So they have the benefit
And then as I said, as we then optimize that, that will then create opportunities to improve profit dollars and cash flow dollars over time
So long term, some lots of good opportunity from that
I mean in the past, we've always enjoyed the benefit of our multiple industries, which obviously diversifies the risk for any one particular vertical
And the reason for that is that the reduction in the share price has enabled us to buy back shares below the cost that we've been issuing them to our employees
Not only does it give you a more predictable business, it also gives you a more resilient business in a time like this
One of the questions that I had coming out of the earnings call, I'm sure you did as well was well, was, it's 9% plus, and you're getting a benefit from this agency model
The first one is for the first time, we will be able to see both usage data and purchasing behavior within the customer base, and we think that will show up wide space within our customers where there's opportunity for us
And so our growth engine really is in the low to mid-market segment of the manufacturing base
The perceived benefit to them is that they can turn software services on and off more flexibly
In all those cases, though, you can create terrific value that you can't create in an isolated legacy desktop product
So I think first order benefits are, as Simon said, you moved the data to the cloud and you granulize it
Any customer that's looking to save cost or integrate more flexibility in their IT infrastructure has a much better opportunity of doing that with us than some of these other high-cost solutions that are pretty much fixed
Once you've done that, you've got unique data and high volume with the services necessary to edit it where you can train models and deliver automations
So I think many of those things are integral benefits of moving to the cloud
And secondly, it will make it easier for our customers to purchase our products
So that's one benefit of moving to the cloud
So moving from big files to granular data, and then you can apply AI and machine learning to that granular data, so you can get all the lot of the benefits that Steve has been talking about
One is, obviously, beaten raise for this fiscal year across all metrics
That's great
It's even better in a pandemic, it’s awesome
Good to see you
Simon, first of all, always great to have you at the Barclays Conference event
It allows us to scale
       

Bearish Statements during earnings call

Statement
But the second thing is to understand which we talked about on the call, which is qualitatively what is going into the 9% or more statement, which is some headwinds from the pace of new business growth this year, which has been slower consistent but slower than it was last year
And if you do them at the same time and something goes wrong, then you've got some business continuity issues potentially
Second headwind is FX
They've undermined confidence in their current solutions, and they've caused a lot of confusion for their existing user base, who I think fill a little disenfranchised, that's certainly what people that are new to us would tell you
So if one of those sub-segments has a problem, they suffer that problem perhaps disproportionately to the rest of the market
You're going to lose all your customers
But from what we know today and where rates are, we expect to have a headwind as well next year
And if they want to move off of our platform, they're going to lose that value
That has two negatives to it
It's pretty difficult to come down market from the enterprise
There's also been an issue which is the valuation
And then the third thing is the absence of the true-up revenues that we've had
So what it means is this year, we have a big drag on our free cash flow relative to last year because we were essentially trading $3 last year, $1 this year
And so they've had to buy extra tokens this year at the end of their contracts, and that -- that's a one-off which won't recur next year, right? And so that creates a bit of a headwind for us next year
So an example of that, noneconomic factors, you can actually see in our P&L this year with our APAC growth has been slower, and that's because China lockdown last year, which means we've got less business coming off the balance sheet through the P&L through our APAC business this year
So there are both cyclical and noncyclical reasons why a new product business accelerates and decelerates
So those are all headwinds
The real growth profile is much lower
So what will happen is it will bleed in and build the effect over time that transition from the contra revenue -- from contra into the operating costs will essentially bleed in over time
One, it makes it very difficult for people to collaborate and access that data together
   

Please consider a small donation if you think this website provides you with relevant information