Inheritance being cashed in: management is converting a long-held position into current business on purpose
The model's full reasoning — Q3 2022 call → NOWe need to determine if management describes deliberately converting something long-held into current business, with real present-tense activity and most yield still ahead. Key candidates: - B2 Cloud Storage business: It's been growing, but is it a long-held asset being converted? B2 was launched earlier, but the current push is investing in it. However, the question is about converting something long-held that was not previously producing meaningful results. B2 has been producing revenue for years. Not a conversion. - Computer backup price increase: That's a pricing action, not converting a holding. - Partner program: They mention "we have started a major push to succeed with channel partners" and "launch of our online partner portal" and "several new national resellers and distributors have recently begun to sell B2 Reserve". This is new, not long-held. - B2 Reserve: New offering, not long-held. - The storage pod open-sourcing: They mention they open-sourced their storage pod years ago, and now they are leveraging third-party hardware. But that's not converting a holding into business; it's a strategy change. - The blog and community: They mention "our blog reader community" as influencers, but that's not a conversion into business. - The "universal data migration program" - new. Look for something like: "we have been building X for years, and now we are monetizing it." The transcript mentions "our strategy of targeting developers as a key market is working with nine of our top-20 accounts now being developers and the data stored by developers with us growing by 80% over the course of the prior year." That's growth, not conversion. What about the "Backblaze Storage Pod" open-sourcing? They say: "we recently published a detailed announcement about our strategy of moving away from that core storage server to our new storage platform using third-party components, third-party servers. And that strategy is actually something that we had outlined years and years ago when we originally open-sourced our first storage pod hoping that us open-sourcing the storage pod would enable the industry to provide hardware that was easy to use and inexpensive for software companies like us to leverage.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| HCKT | The Hackett Group, Inc. | Q1 2024 | 2024-05-08 | C |
| ASM | Avino Silver & Gold Mines Ltd. | Q4 2023 | 2024-03-21 | C+ |
| HUYA | HUYA Inc. | Q4 2023 | 2024-03-19 | C |
| NICE | NICE Ltd. | Q4 2023 | 2024-02-22 | B+ |
| SANG | Sangoma Technologies Corporation | Q2 2024 | 2024-02-08 | D |
| HP | Helmerich & Payne, Inc. | Q1 2024 | 2024-01-30 | C |
| OPAD | Offerpad Solutions Inc. | Q3 2023 | 2023-11-01 | C |
| APPS | Digital Turbine, Inc. | Q1 2024 | 2023-08-08 | D |
| PFIE | Profire Energy, Inc. | Q1 2023 | 2023-05-13 | B |
| ALGN | Align Technology, Inc. | Q4 2022 | 2023-02-01 | F |
| VNRX | VolitionRx Limited | Q1 2022 | 2022-05-12 | F |
| GFS | GLOBALFOUNDRIES Inc. | Q3 2021 | 2021-11-30 | A |
| ZH | Zhihu Inc. | Q3 2021 | 2021-11-22 | D |
| IRBT | iRobot Corporation | Q3 2021 | 2021-10-28 | D |
| T | AT&T Inc. | Q3 2018 | 2018-10-24 | C+ |
| IRT | Independence Realty Trust, Inc. | Q2 2018 | 2018-08-02 | B |
| CP | Canadian Pacific Railway Limited | Q2 2018 | 2018-07-19 | B+ |
| ROK | Rockwell Automation, Inc. | Q4 2017 | 2017-11-08 | C |
| PTC | PTC Inc. | Q3 2017 | 2017-07-19 | C+ |
| BLKB | Blackbaud, Inc. | Q1 2017 | 2017-05-02 | B+ |
| VRNS | Varonis Systems, Inc. | Q2 2016 | 2016-08-09 | B+ |
T · Q3 2018 → YESThe question is: Does management describe that the company is NOW DELIBERATELY CONVERTING SOMETHING IT HAS LONG HELD OR LONG BUILT INTO CURRENT BUSINESS — an asset, position, etc., accumulated over ti...**YES** Management describes deliberately converting its long-held customer data and advertising inventory (built over years from the 25 million customer base and legacy TV slots) into a new advertising business via Xandr.
VRNS · Q2 2016 → YESThe question is about whether management describes converting something long-held into current business, that's still early. YES The transcript shows management describing the company's decade-plus of accumulated data-generation, audit, classification, and governance capabilities (explicitly "over a decade of experience" and "11 years") as the long-held foundation now being deliberately activated.
NICE · Q4 2023 → YESThe question is about whether management describes converting something long-held into current business, that's still early. YES The transcript shows management describing the deliberate conversion of a long-held asset—billions of historical CX interactions accumulated over years of platform operation—into current AI-driven business.