Growing out of the old self: management itself says the company has quietly become a different business, and the numbers
The model's full reasoning — Q1 2024 call → NOWe need to determine if management conveys that the company today is running on a different basis than its reported results and reputation were built on, with both halves: (1) a change of basis already real, and (2) management says the record and perception lag the change. Let's analyze the transcript. Scott Shaw's opening: "We've had an exceptionally strong start to 2024. And at this point, we see our momentum continuing through the remainder of the year. Lincoln continues to invest in transformative strategies that are driving our growth. At the same time, we are fully capitalizing on the distinct trend in America to question the value and cost of a four year college degree, while the nation skill gap continues to stifle growth and opportunities. Our focus on offering innovative, efficient student curriculums is enabling a growing number of graduates to enter rewarding in-demand careers is also attracting additional corporate partners and broadening our relationship with existing partners." He mentions "transformative strategies" but that's generic. He talks about Lincoln 10.0 hybrid platform. He says: "As we've discussed during previous calls and during our recent Investor Day, our highly scalable hybrid instructional platform, which we've branded Lincoln 10.0 is a cornerstone to our success. We've discussed how Lincoln 10.0 combines hands-on learning at campus facilities with a greater component of classroom work delivered through online instruction. The model is enabling our students to work part time or manage other commitments while pursuing their Lincoln Education and is specifically designed to help a higher percentage of students to graduate. At the same time, the platform is creating instructional efficiencies and increasing productivity. During the quarter, we began to generate material operating leverage through the expanding deployment of 10.0. We achieved more than 200 basis points of improvement in our direct instructional cost as a percent of revenue. When completed by the end of this year, Lincoln 10.0 will be used in teaching approximately 65% of our classes and we expect to generate increasing operating leverage as the year progresses and into 2025." So Lincoln 10.0 is a change in how they teach, but is it a change of basis? It's a hybrid model that improves efficiency.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| SANG | Sangoma Technologies Corporation | Q2 2024 | 2024-02-08 | D |
| WD | Walker & Dunlop, Inc. | Q2 2022 | 2022-08-09 | C+ |
| KD | Kyndryl Holdings, Inc. | Q4 2021 | 2022-03-01 | C+ |
| CAG | Conagra Brands, Inc. | Q2 2017 | 2016-12-22 | C+ |
CALX · Q1 2023 → YESThe question is whether management conveys that the company today is running on a different basis than what its reported results and reputation were built on. Both parts: a change of basis already rea...YES The transcript shows management describing the company as now operating on a fundamentally different basis—selling into a new market of broadband service providers building consolidated networks, shifting from a legacy cyclical model to sequential revenue through platforms, clouds, and managed services—while treating this as an accomplished reality today, not a future plan. They emphasize numbers like 988 BSP deployments, 865 cloud customers, and 334 managed services customers, along with three years of over 25% growth, as evidence of this new foundation already in place.
SANG · Q2 2024 → YESThe question is whether management conveys that the company today is running on a different basis than the one its reported results and reputation were built on. Both parts: a real change of basis alr...
WD · Q2 2022 → YESThe question is whether management conveys that the company today is running on a different basis than the company its reported results and reputation were built on. Specifically, two parts: a change ...