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.
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| Statement |
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| And so that provides a very strong foundation for us either to grow |
| So I feel very good about those |
| This is margin expansion |
| And it’s net-net, it’s a very good thing for us |
| And that’s exactly what is generating this very strong growth that you’ve seen on this subscription fee |
| We look at retention rates, very strong, credit numbers very strong as well |
| We laid out, as we were exiting the pandemic, this plan with Steve, Jeff and some others, we saw an opportunity for us to accelerate growth |
| So, I feel confident about the opportunity |
| It’s quite amazing for a company our size to generate this kind of growth |
| So that gives me confidence in terms of our ability to sustain that double-digit revenue growth |
| The first thing is the demand from new care members is very strong and the quality of that demand from our credit profile standpoint is very strong |
| And I would say it’s working even a bit better than what we laid out in the original plan from a revenue growth standpoint |
| We benefit from that |
| Now if you take a giant step back and think about more long-term, what gives us confidence in our ability to grow in double-digit in the next few years? The first thing – and this is always we’ve start, the revenue pool we play in is growing at about 7%, 8% every year |
| So, our opportunity to grow is much higher |
| The stock has had an amazing run |
| But I feel confident and comfortable about our position |
| And listen this is a big win for us, as you said |
| And as we actually raise prices, people are reengaging with us and we are repricing the back book and people are very confident paying this fee, and we keep onboarding more-and-more fee-paying card members |
| You’ve done a great job |
| This is ROA increase – ROE increase |
| They are so much better |
| But net-net, I think is a good thing |
| There is a lot of benefits in having the relationship with the merchant and the card member that you can see in some metrics such as the fraud rate, right |
| So that marketing machine, that marketing engine is working really well at American Express |
| So, we think it’s good stuff |
| So, we feel that – and coverage, which has always been an issue, is actually improving |
| And it’s because we have a lot more data from – on every transaction, which allows us to identify those out of patterns, transactions a lot better than our competitors |
| So yes, the stock did really, really well |
| It’s really working really well |
| Statement |
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| And what we call organic spend, which is a power version of same-store sales is negative and has been for a few quarters now |
| Now you kind of hear the other side of it a little bit where people are concerned that it is some part of your balance sheet growth, and that could be part of the problem that you might face as those customers face adverse economic scenario |
| I’m just curious if you feel like there’s some T&E fatigue at this point in time |
| Sanjay Sakhrani And maybe just on a related the small business growth has been slower |
| It’s been a hot topic of late, right? And I was really surprised, I guess, how little people believed in them before earnings, but then after earnings, they were like, wow |
| So, I don’t want to exhaust there is a lot there, and you guys can read the transcripts there, but I am just at a high level, people have always been concerned about the mix of NII as a percentage of the total revenues, right? That’s sort of the market |
| It’s that the value proposition that we added to the product was not rich enough |
| What’s happening, though, is that the tenured card member base is spending a bit less than they were in the past |
| The other question was why is American Express not accepted everywhere |
| And these were the two big strategic questions that people had |
| So, it’s not like we are outgrowing massively the rest of the industry |
| We expect that growth to moderate over time |
| So listen, this group of this segment, this group of card members going through a lot with the interest rates, with supply chain disruption, with either the massive bounce back post COVID, it will take a while probably to settle |
| But I am just curious, if we back that out, we just think about the competitive dynamics |
| We need to keep innovating |
| It’s challenging to do it, but we feel that, that was the way for us |
| But franchise attrition, very, very, very small |
| Maybe you can just talk about if there’s any green shoots, any signs that it might rebound |
| And that’s why we haven’t seen adverse effect |
| From a credit standpoint, I’m not too concerned with that |
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