Running hot in customers' hands: existing deployments are being used harder than they were sized for
The model's full reasoning — Q3 2021 call → NOWe need to determine if management describes that the company's product/service/capacity/offering is being used more intensively by existing customers than originally planned, with this heavier usage observed in the current business. The transcript discusses occupancy rates increasing, but that's about utilization of facilities. The question is about existing customers using more than expected. Management mentions that state customers increased utilization, occupancy up. But is that described as heavier usage than originally planned? They say "we did see many of our state customers increased their utilization of our facilities which contributed to modest increases in our occupancy compared with the prior year quarter." That is about occupancy increasing, but is it above what was planned? They also mention that they are increasing staffing in anticipation of higher utilization rates. But is that a current observed pattern? They say "we are leaning way forward, on increasing our staffing levels in anticipation of higher utilization rates of our partners." That suggests they expect higher utilization, but is it already observed? They also mention that courtroom operations gradually reopened and they anticipate this trend to continue. So it's more about recovery from pandemic lows, not necessarily above original expectations. The question asks: "is being USED, CONSUMED, RUN, OR DRAWN ON MORE INTENSIVELY than those relationships were originally sized, scoped, or expected to require" - that implies that the existing customers are using more than originally planned. The transcript talks about occupancy increasing from pandemic lows, but that is still below pre-pandemic levels. They say "criminal justice related populations meaningfully below their pre-pandemic levels." So they are not above original expectations; they are recovering. Also, they mention that they are increasing staffing in anticipation of higher utilization, but that is future. The observed current usage is still below pre-pandemic. So it's not heavier than originally planned; it's just recovering. Also, they mention ICE detainee populations doubled during first half of 2021, but that is from a low base.
| 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...