Winning is getting easier: management describes the effort needed to land each new piece of business visibly falling, wi
The model's full reasoning — Q1 2018 call → NOWe need to determine if management conveys that winning business has become easier than in the past, with real recent proof, and still in effect. Let's scan the transcript for relevant statements. Key points: - Larry Merlo: "we delivered solid performance in the first quarter in line with our expectations." Not about ease. - Dave Denton: "we are continuing to make significant progress in our enterprise streamlining efforts" - that's about efficiency, not winning business. - On PBM selling season: "our retention rate is currently in line with rates that we've seen in prior years" - that's not easier, just in line. - "We expect RFP opportunities in the 2019 season to be less than the opportunities we see in the past few years." That's about fewer opportunities, not easier wins. - Jon Roberts: "they very clearly told us that they're looking to us for innovation... they are looking to reduce the number of vendors." That's about demand, not necessarily easier. - Larry Merlo: "we are seeing RFP activity down. And I do think that, tied to your question, there is a better of a wait-and-see approach" - that's about market conditions, not easier. - On Retail/Long-Term Care: "our initiatives to expand our partnerships including those with other PBMs and health plans, have progressed well and we continue to see opportunities for 2020 and beyond." That's about progress, not necessarily easier. - "We have seen an uptick by a number of both Optum and Cigna clients of many CVS Pharmacy and MinuteClinic programs." That's about increased adoption, but is it easier? It's about growth, not necessarily a contrast with past difficulty. - Dave Denton: "The first quarter results underscored the early success we are achieving in our four-point plan to return to healthy growth. Our partnerships are driving script growth, while our streamlining effort is improving enterprise-wide efficiencies." That's about growth and efficiency, not about winning business being easier. Look for any explicit comparison: "easier than it used to be" or "less effort" etc. I don't see that. There is mention of "we are seeing a greater benefit from the broader relationships we established last year with payers" - that's about benefiting from past relationships, but not necessarily that it's easier now than before. Also, "our market shares increased by nearly 140 basis points" - that's growth, not ease.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| NICE | NICE Ltd. | Q4 2023 | 2024-02-22 | B+ |
| ACGL | Arch Capital Group Ltd. | Q4 2023 | 2024-02-15 | B+ |
| VRNS | Varonis Systems, Inc. | Q2 2016 | 2016-08-09 | B+ |
| ACCO | ACCO Brands Corporation | Q1 2016 | 2016-04-27 | B+ |
ACCO · Q1 2016 → YESThe question is: Does management convey that IT HAS RECENTLY BECOME EASIER FOR THE COMPANY TO WIN BUSINESS THAN IT USED TO BE, based on real recent wins, and still in effect. YES The transcript shows management conveying that winning business has become easier than in the company's recent past. Boris Elisman states that customers have seen the value of the company's strong brands during the past couple of seasons, resulting in broader and deeper penetration in mass retailers and continued share gains.
NICE · Q4 2023 → YESThe question is: Does management convey that IT HAS RECENTLY BECOME EASIER FOR THE COMPANY TO WIN BUSINESS THAN IT USED TO BE, grounded in real business won recently, and still in effect.
VRNS · Q2 2016 → YESThe question is whether management conveys that it has recently become easier for the company to win business than it used to be, grounded in real recent wins, and still in effect.