Reordering the pecking order: management describes the company winning on a stage where it used to be too small to play
The model's full reasoning — Q2 2022 call → NOWe need to determine if management describes moving up a tier in the market, competing and winning at a level previously above it, with real results already, and early stage. Transcript: Dustin mentions "continued momentum in the enterprise. We’re closing larger deals and expanding seats across departments and geographies quickly in large organizations. Our largest customers are recognizing the increasing value and scalability of our unique Work Graph data model. This is reflected in our over $50,000 customer cohort growth and the expansions in the base." Also "we saw another Fortune 50 company expand their deployment to more than 25,000 seats." Chris mentions "We had some spectacular customer wins this quarter, including mass media and entertainment conglomerate ViacomCBS." Also "Just Eat Takeaway... expanded the use of Asana’s enterprise solution in Q2 with a multiyear agreement that enables all employees to manage their work in the Asana platform." "Cohesity... chose to standardize on Asana’s enterprise solution." Also "Gorillas... we did a 3-year ELA for Asana wall-to-wall with them this past quarter." Does this indicate a change in tier? The company is growing enterprise customers, larger deals, but is that a new tier? The company has been selling to enterprises before. The question asks: "does management convey that the company has recently begun to be treated as a legitimate contender in situations, against rivals, or for business that previously would have gone to bigger, more established, or more entrenched players, and that this has already produced real results in the current period?" Management talks about winning large deals, expanding to 25,000 seats, etc. But do they explicitly say that they previously couldn't compete for these? They say "continued momentum in the enterprise" and "investments paying off in enterprise, driving continued enterprise momentum." They don't explicitly contrast with a previous tier. They mention "our value proposition is clearly resonating with our customers" and "IDC study validates." They talk about "scalability that the Work Graph enables" and "shows our value proposition is resonating with some of the biggest enterprises in the world." This suggests they are now winning big deals, but is that a change in tier? They have been selling to enterprises for a while.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| SANG | Sangoma Technologies Corporation | Q2 2024 | 2024-02-08 | D |
| PFIE | Profire Energy, Inc. | Q1 2023 | 2023-05-13 | B |
| WD | Walker & Dunlop, Inc. | Q2 2022 | 2022-08-09 | C+ |
| PRIM | Primoris Services Corporation | Q2 2018 | 2018-08-11 | C+ |
PRIM · Q2 2018 → YESThe question is: Does management describe that the company is NOW COMPETING AND WINNING AT A LEVEL OF THE MARKET THAT USED TO BE ABOVE IT? YES The transcript shows management describing exactly this tier shift in the T&D segment: after the Willbros acquisition, the group “has been able to sign new awards with customers that have been hesitant because of previous concerns about their financial viability” and has received work from “some of the largest electrical utilities in the country.” David King notes that the work “outpaces anything he has seen in his 40-plus years,” and Pete Moerbeek adds that the one-year MSA revenue alone is now $1.1 million. Management presents these wins as a direct result of Primoris’s financial strength and parent-company backing, which previously excluded the T&D business from the largest accounts. The commentary frames the development as newly enabled and still early (only one month of T&D performance), satisfying all three required elements: a clear change in competitive tier, real business already won, and contribution still incremental relative to the company’s prior scale.
SANG · Q2 2024 → YESThe question is: Does management describe that the company is NOW COMPETING AND WINNING AT A LEVEL OF THE MARKET THAT USED TO BE ABOVE IT? YES The transcript shows management describing a shift to competing at a higher tier with sophisticated mid-market clients through bundled offerings, illustrated by a recent win with a statewide park department that larger vendors couldn't serve affordably. They explicitly note this represents a change in tier ("the type of client the bundled capabilities of Sangoma can reach ... Sangoma is well positioned to play in both the small market and more sophisticated mid-market") and that it has already produced real results ("this recent win"), while conveying it is early ("there'll be a lag before it delivers material results.
WD · Q2 2022 → YESThe question is: Does management describe that the company is NOW COMPETING AND WINNING AT A LEVEL OF THE MARKET THAT USED TO BE ABOVE IT? YES The transcript shows management explicitly describing a tier shift: from competing "predominantly with the likes of JPMorgan and Wells Fargo" to "going head-to-head with CBRE and JLL," enabled by technology investments that now allow them to "successfully compete against these much larger firms.