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Running hot in customers' hands

Running hot in customers' hands: existing deployments are being used harder than they were sized for

Calls Tested
496
Answered YES
16
Hit Rate
3.2%
rare by design

Gogo Inc. (GOGO) — this company's answers

NO on the Q1 2016 call 2016-05-06 C+
The model's full reasoning — Q1 2016 call → NOWe need to determine if management describes that the company's product/service/capacity is already deployed and being used more intensively by existing customers than originally expected, with this heavier usage observable in current business. Scan the transcript for relevant statements. Michael Small mentions "2Ku is now in commercial service" and "2Ku awards now exceed 1000 aircraft." But that's about awards, not usage intensity. Norman Smagley discusses ARPA (average revenue per aircraft) and mentions "annualized ARPA of 134,000 was consistent with the prior year, but grew 15% year-over-year excluding aircraft we have added since the beginning of 2015, primarily regional jets and aircraft with new airline partners." That indicates same-aircraft ARPA growth, but is that about usage intensity? ARPA is revenue per aircraft, which could be driven by usage, but the context is about dilution from new aircraft. He says "We expect continued ARPA dilution over the next couple of quarters as we finish installing regional jets and launch new airline partners. The dilution from these aircraft will start to diminish as these new fleets become seasoned and as we begin to upgrade Delta planes to 2Ku. We expect ARPA growth to be modest in 2017 and accelerate in 2018 as we get more 2Ku aircraft online." That suggests ARPA growth is expected in future, not currently observed as a pattern of heavier usage. Michael Small says "we are making great progress on the increasing volume of STCs, completion of which will keep us on track to exceed our 75 2Ku installation target this year." That's about installations, not usage. He also says "All told we installed or upgraded more than 500 aircraft across commercial and business aviation this quarter, another Company record." That's about installs. He mentions "Gogo Biz 4G is now flying on our test lab and customers are beginning to provision their planes in preparation for 4G's commercial launch in 2017." That's future. He says "we are seeing tremendous ARPA growth in Business Aviation where the bandwidth is plenty for those size aircraft. And we are seeing 15% ARPA growth on the planes that have been in the network for a while." That is a direct statement about existing planes showing ARPA growth. But is that due to heavier usage? ARPA is revenue per aircraft, which could be from more usage or higher prices.

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Show the exact prompt the model was given
Using ONLY the supplied earnings call transcript and no outside information: On this call, does management describe that the company's product, service, capacity, or offering — as ALREADY deployed, installed, adopted, or in use with its EXISTING customers — is being USED, CONSUMED, RUN, OR DRAWN ON MORE INTENSIVELY than those relationships were originally sized, scoped, or expected to require, with this heavier usage described as actually observable in the current business? Answer YES when management's own words convey, in whatever form fits the industry, ONE coherent phenomenon: the intensity of real-world usage inside relationships the company has already won is climbing on its own, ahead of what the company or the customer originally planned for. Any genuine expression of this counts — for example: customers consuming, processing, transacting, or ordering through the company's product or platform at rates above what their arrangement anticipated; installed equipment, systems, or capacity being run harder, longer, or at higher utilization than customers initially operated it; usage, volumes, or activity per existing account growing noticeably faster than the count of accounts; customers exhausting, outgrowing, or burning through what they bought sooner than expected and coming back earlier or bigger as a result; consumption-based or usage-based activity from the existing base running ahead of the levels those customers committed to; or management observing that the base it already serves keeps needing more of the product per customer than it used to. What matters is that the pressure originates in OBSERVED USAGE BEHAVIOR of customers the company already has — the existing base is running hot — and that management presents this as a current, real pattern in the business (grounded in what accounts are actually doing now) with the resulting additional business still mostly ahead rather than fully reflected in the reported results. Answer NO if growth is described mainly as winning new customers, new markets, or new logos rather than heavier use within existing relationships. NO if management describes only ordinary same-customer growth, routine reorders at the usual pace, or price increases on unchanged usage. NO if the heavier usage is only hoped for, projected, or expected from a future rollout rather than already being observed. NO if the intensity is attributed chiefly to a one-time spike, seasonal peak, stockpiling, pull-forward, or temporary condition management expects to unwind. NO if usage or utilization is described as flat, declining, or normalizing downward. NO if the only evidence is a single account anecdote with no sense of a broader pattern. NO if the idea appears only in an analyst's question or model that management does not itself affirm. Use only the supplied transcript. Answer only YES or NO.

Companies that answered YES

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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+

How the model reasoned

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...

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Not investment advice. Artul.ai publishes AI-generated earnings-call quality grades and expected-volatility estimates — never buy or sell recommendations. We tested over 1,600 predictive hypotheses against 165,000 transcripts; the honest result, including what failed, is documented in our methodology.