Running hot in customers' hands: existing deployments are being used harder than they were sized for
The model's full reasoning — Q3 2019 call → NOWe need to determine if management describes existing customers using the product more intensively than originally planned, with observable current usage behavior. The transcript mentions strong ARR growth, but that's overall. Specific points: "We had record growth in total ARR and total ARPS." "We experienced strong growth in our enterprise business during the quarter which speaks of the strategic importance of our products and a healthy demand environment." That's not about usage intensity. "We hit a milestone of four million total subscriptions." That's count. "The maintenance-to-subscription program continues to perform well and we’re seeing an increase in the adoption of collections." That's adoption, not usage intensity. "BIM 360 delivered broad based strength driving cloud ARR growth" - again growth. "We are enhancing our construction offering with the acquisition of PlanGrid." Not about usage. Scott Herren: "ARPS benefited from a 17% increase in ARPS, a 14% increase in subscriptions, and 30% growth in billings." That's pricing and subs. "We added 143,000 subs" etc. "The renewal rates for both maintenance and product subscriptions picked up slightly from Q2 and were in line with our planning assumptions." That's renewal rates, not usage intensity. "We expect the renewal rates for product subscriptions to continue to increase as the product mix shifts toward higher value products." That's mix. Andrew Anagnost: "We had record growth in total ARR and total ARPS. In fact, this is the highest growth quarter for both since we started our business model transition over four years ago." That's growth, not usage. "We experienced strong growth in our enterprise business during the quarter which speaks of the strategic importance of our products and a healthy demand environment." That's demand, not usage intensity. There is a mention of EBA: "Our new EBA with them is one of the largest we have signed and it increases the account value by 16 fold." That's a single account, but it's about account value, not usage intensity. Also "We are partnering with Ford to help them explore new workflows utilizing our most advanced software functionality, such as general design and fusion and our flexible token based EBAs. This will allow them to benefit from the breadth of our product portfolio.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| APYX | Apyx Medical Corporation | Q4 2023 | 2024-03-21 | C |
| HP | Helmerich & Payne, Inc. | Q1 2024 | 2024-01-30 | C |
| SCPH | scPharmaceuticals Inc. | Q3 2023 | 2023-11-08 | B |
| DASH | DoorDash, Inc. | Q3 2023 | 2023-11-01 | C+ |
| ADPT | Adaptive Biotechnologies Corporation | Q4 2022 | 2023-02-14 | C+ |
| UPWK | Upwork Inc. | Q2 2022 | 2022-07-27 | C+ |
| FLYW | Flywire Corporation | Q1 2022 | 2022-05-14 | B+ |
| SOPH | SOPHiA GENETICS SA | Q4 2021 | 2022-03-15 | C |
| RELY | Remitly Global, Inc. | Q4 2021 | 2022-03-02 | B |
| ASAN | Asana, Inc. | Q2 2022 | 2021-09-01 | B+ |
| TJX | The TJX Companies, Inc. | Q2 2021 | 2021-08-18 | C |
| WES | Western Midstream Partners, LP | Q3 2018 | 2018-10-31 | D |
| HOLX | Hologic, Inc. | Q4 2017 | 2017-11-08 | D |
| BCE | BCE Inc. | Q2 2017 | 2017-08-05 | B+ |
| CCOI | Cogent Communications Holdings, Inc. | Q2 2017 | 2017-08-03 | B |
| GEO | The GEO Group, Inc. | Q2 2016 | 2016-08-02 | B+ |
TJX · Q2 2021 → YESThe question is about whether management describes that the company's product, service, capacity, or offering — already deployed with existing customers — is being used more intensively than originall...
WES · Q3 2018 → YESThe question is about whether management describes that the company's product, service, capacity, or offering — already deployed with existing customers — is being used more intensively than originall...
BCE · Q2 2017 → YESThe question is about whether management describes that the company's product, service, capacity, or offering — already deployed with existing customers — is being used more intensively than originall...