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[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Do we have additional questions at this time?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. So the dataset, so we're expecting two datasets. One will come from 514 that's added on top of a NUC. And the other one will be 514 in the backdrop of patients that haven't received any new therapy. So they are viremic, they've got higher viral loads. So one population will have very low viral loads. The other one will have higher viral loads. So -- and the study with regards to the nuc, it's going to be -- a lot of it's going to be about safety and tolerability and how the two molecules play well together over a 28-day period. You're not likely to get a lot of information about virology in that patient population over that time period, because they are already reasonably suppressed. It's only 28 days. So you wouldn't expect to see some of the viral antigens, if you were to ever move to be moving on that. So it's one kind of a study. It's a necessary study, because it is sort of the standard-of-care.
And then ultimately we're going to be looking at the viremic study data, which will be one in which we can get a little bit more information over that 28-day period. We should be able to see a good solid DNA drop in those subjects over a 28-day period, probably a multi-log drop would be encouraging, something, say, more than two logs or so. And you should also be able to see an effect on RNA as well. Probably RNA effects usually not as pronounced as DNA effects, but you should still be able to see something in that over a 28-day timeframe. So those are the kinds of data that we'll be reporting and they give us key information in terms of PK and PD safety and help us really understand dose ranging for future studies.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
No, it's interesting. You recall that we built that facility last decade as a regas facility, and it's fully contracted for 20 years. And those contracts are in place and will continue to serve its current role through 2028. And so I think this was just making sure that, that facility was available to support both markets in Mexico and the United States. And they have ongoing obligations and contracts with CFE down there.
But it does highlight something that's important, Ryan, which is the value of storage. So there's been a lot of, obviously, discussions around the value of electric storage, which I think has a great future. But the value of storage in California, I think the increasing importance of storage in Texas has really been highlighted in the last couple of weeks.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hello. Good morning.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey, Randy. So this is Karl. Yes, we have the 90-day lockup from the closing of the transaction. So whenever it closes, plus 90 days, and then we are free to do whatever we want to do after those 90 days. We are exploring alternatives. And I think it's fair to say that we receive a lot of inbound proposals from investment banks and other financiers.
Alternatives for that ownership block, which is worth around $1 billion or close to $10 per Golar share. If -- we could either margin lend against it or margin loans, you can typically see proceeds of at least 60% LTV. We are looking at alternatives to refinancing the CV involving the NFE shares, which may or may not include an exchangeable. So instead of doing a convertible to the LNG shares, they do an exchangeable to NFE shares.
We are also looking at other alternatives. But a primary focus for us is what we have outlined on slide 23, closing the valuation gap, and we will push forward initiatives to close the gap, and that will very likely include distribution of parts of our NFE holdings to DLNG shareholders.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Adam, we have that number somewhere, can we get back to you with that?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. I don't really have a commentary on sort of the acquisition dynamics. But what I would say, it's a recognition that the space is young and growing. And we're investing heavily.
You have larger caps, as evidenced by Adobe and Citrix wanting to participate. So I think there's really strong agreement that there's growth opportunity. And we're maniacally focused on our strategy and executing it. And I will say that those -- both neither of those events meaningfully caused us to adjust our strategy or our investment posture.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Sure. Bye.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
You bet, Ken.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
2020 is such an anomaly. So we were working really, really hard to lay the groundwork for Q4 in '21. But the market just paused for a, call it, a five- to six-month period effectively on the transaction side. So I hope we're through that. I don't see that continuing based on the pulse we have. I think the choppiness you'll see from us is the larger transactions. We did 13 and $330 million in Q4. You add one large deal to that mix, and it's an entirely different quarter. And I think you'll start to see that evolution over the coming years.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
[Speech Overlap] multi-myeloma.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey, guys. Congrats on a solid quarter.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey, Tyler.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Chris, thanks for the question. Yeah, let me be clear about this. So, going forward, all of the InsuranceSuite Cloud deals will be on Guidewire Cloud Platform. We worked with some of the early Guidewire Cloud customers on migration to Guidewire Cloud. But going forward, everybody that's buying cloud and specifically InsuranceSuite will be going direct to Guidewire Cloud Platform.
On the InsuranceNow side, I think that will take us a bit of time. As it called out, we had this one important milestone this quarter of getting one of the InsuranceNow customers on to that Guidewire Cloud Platform infrastructure. And that's an important milestone for us. But we'll see how we progress the rest of the InsuranceNow customer base and net new customers for InsuranceNow. But the way to think about it is that going forward, every InsuranceSuite Cloud customer would be going to Guidewire Cloud Platform. Does that make sense?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
My pleasure.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. So I think some of the announcements that we've had over the past many months and past quarters and some of the relationships with Inovance that we discussed, so they continue to sort of step in volume increases through the course of that three-year period as these vehicles launch. A lot of these eDrive units aren't launching, for example, this year. They continue to step into '21, '22 and even more in '23. So that's why we kind of curve up through that period.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, I would say, yes, we were pretty pleased this quarter to have our core yield actually pick up a basis point or two. No question, that's a challenge in this environment as the book -- as loans we're putting on are averaging right at that 4 to 4.25, so a little bit below what we're on. Now keep in mind, some of the loans that are paying off that Matt talked about earlier on the early payoffs were some of our acquired loans that were pretty low rates, so you're actually -- that's where you're picking up some of the accretion on the volume there, but again it's a constant process on trying to manage that and it's going to be a challenge to maintain at those levels continuing to go forward. But, our goal is to keep it in that line or drop just slightly.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you. Hi, Wayne. I just have one quick question. Your comment about the revenue was up year-over-year, but expense was down. You mentioned a onetime saving due to the pandemic. Can you please quantify for us? Is it just fair to say that the delta between 4Q 2019 and 4Q 2020, it's kind of the saving we should think about? Thank you.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey, guys. My first question really just noticeable on how maintenance capital was -- at the present. So could you guys speak to how the maintenance capital, how you would view it has improved year-to-date? And maybe what you see is out there with -- how this could help improve it.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
No. It's early stages and we also think that this year, they will not have a material contribution. But usually, before we sell a product, we know. We see the interest, we see how it works, we install it in Varonis, we understand how the marketing efforts are working, and we also see the exposure within the customers, when you install it on Google and install it on Box and Salesforce and Slack, you just see this tremendous exposure and the dangers from the lateral movement. And we believe, strongly believe that it's the biggest blind spot that systems have today. I just think that there is so much -- so much damage that when you see these breaches that organizations are experiencing and they even don't know. So, we strongly believe that there is tremendous opportunity there, and what we have done with 365, we can do with these SaaS applications and we also think that with time, we will have more and more critical data with the SaaS application, and they will be interconnected. And we are very excited about what we can do with SaaS, and we also think that our model, technological model, these functional relationships between users, data, permissions, content is very relevant there, and data on-prem is not going anywhere and we can really be the trust foundation of this digital transformation, and just make sure that organizations can realize all the tremendous productivity benefits without the downside of data breaches, stealing data, insider threat, compliance problems, and so on.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. The number we use is like 10 families per square mile, but it varies in different parts of the. Now in terms of -- we've had no impact to date, obviously, from LinkStar because all they've been doing is running a beta program, and they haven't actually started implementing operational program. So there will be no impact to date.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, just again, a thank you for your interest in KBR and taking the time today to listen to the presentation and ask questions. We do think we're travelling very, very well, the underlying operational performance of the business and the growth fundamentals are clear. And the numbers are, I think, in the continued momentum with a pipeline and where we sit opposite budgets spanned and priorities, I think, hopefully resonates. I do think, obviously, a few questions on excess. But as I said, in my Q&A piece, I think it's a really, really strong outcome for us in terms of removing uncertainty. And it takes a risk off the table. And it really takes us to a point where the overall conclusion of excess will be a cash upside event for KBR as we conclude the CCPP arbitration litigation as it moves into 2022.
So all up, I think, a terrific quarter, I think the fundamentals of the business are sound. And we're very excited about the future and the management team is terrifically together about the way they're thinking about tomorrow. So, thank you again for your time. And obviously, we'll be talking to many of you one on one of course this call. So thank you again, and stay safe and hopefully we'll get to see some of you face to face in the coming once. All the best. Bye-bye.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks Tim. I'm pleased with the video security business in total. Both fixed video and mobile. I think Molloy and Kedzierski and the entire team has done a great job on investing in additional go-to-market, refreshing the product portfolio, both in fixed video, body-worn camera and mobile video. As I mentioned also, I think the secret sauce for us is to not just have great products in video, but also the integration and orchestration of that with the installed base that we have with thousands of LMR and PCR networks around the world.
I'm thrilled with the progress in body-worn camera, both domestically and internationally. We had the big announcement this morning with the French Minister of Interior, but we're taking share. We're clearly -- I think we've been doing that since late last year, the second half of 2020. And it's pretty clear as well that we're taking share, and we took share in. And Jack may want to talk about the progress in public safety as well, which I'm pleased with.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I'd say it's probably similar to Q1.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. The final analysis will follow. Again, you know, the second interim, you have to get certain number of cases and the final analysis, when you get 130. And so they're anticipating sometime in April, second interim.
And then based on the inflective due dates and how they're getting, we'll know more when they're going to be able to hit the final 130 number. But we believe, by the time they get the second interim, we should have adequate data on the efficacy, as well as, safety.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I would answer the question more generally that we are passionate about serving our state customers and I talk to and my team talks to the leaders of the Medicaid agencies, the governor's people in high administrative positions in government, always trying to understand what their most burning problems are, and whether it's social determinants of health, whether it's the opioid use, epidemic, racial disparities in healthcare. We are creating and providing innovative solutions to solve those problems. Not only through our delivery of our Medicaid product but also in our $150 million commitment and what we call the Molina Cares Accord to put money back into the communities we serve. This is really important part of the relationship with the state customer, not only innovative programs that help drive down cost in the Medicaid program, but being committed to the communities that we serve. So yes, it is a very common theme no matter where we go in our existing states or when we pitch a new state.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you, Devin.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Exactly.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks, Brian. Next question, please.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Sure, Tom. No, thanks for those questions. So International, what we're seeing on the sales and marketing side is really -- as well as what I mentioned previously, it's about the number of new products that we're launching in the market that's driving that growth. And so looking backwards to the U.S., it's the same domestically as we launch more product capability to see the revenue line growing as well.
On the SMB side, we're really not looking at ARPU at this stage right now and at that fine amount of detail. This is a bigger, broader initiative for us. And what we're looking at is can we move the industry in this direction? Can we drive the traffic? Can we drive the conversion rates? And we're really, I'd say, earlier stages of this versus being a little more scientific on what we expect the ARPU to be. What we'll do is we'll see it, we'll pivot, we'll react just like we do with our development.
We're very focused on it from that perspective. But we're pleased with what we're seeing right now in these major new product launches and excited what Rev.Up will bring here in the U.S. right now. And with our SMB, like I said, we're already starting to see some really positive signs from that.
So it will make its way to ARPU and more specifics. But we're focused on the big boulder right now and moving it and getting more detailed as we get more reaction from our clients in the market.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Sure. So I think if you take Q4's gross margin and adjust out the insurance charge, which was kind of a resident in that quarter, that gets you to about 11.4%. For the full year, we think anywhere from maybe 100 to 150 basis points on that -- for the full year. We think Q1 certainly will start off closer to Q4. Price is a very important driver of our gross margin profitability, and our -- what we think pricing -- repricings will be mid- to high single digits. The cadence of that reprice activity is much more impactful in the back half. For example, in Q1, we repriced about 41% of our volume but the vast majority of that happens toward the end of the quarter. So we won't see as much of that price impact on margin in Q1.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
This is George. I think that -- I think that's really I was always really thrived off of land and expand strategy, given that we work with builders. This builder starts with one use case and then they expand out of these cases. I think certainly during the height of the pandemic last year, we saw a different set of use cases emerge and maybe a little bit more urgency around some particular use cases.
But it didn't really change the fundamental shape of how we work within our customer accounts. Twilio typically is a product that developers learn, they love, they build, and then they introduce to other developers, and they expand from there. And I think that's really the magic of the platform and something that we're going to continue to build on in the future.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
So last half of 2020 was -- as Jim said a tremendously impacted by supply chain challenges. So as we look at it from a financial standpoint, the first area that we should talk about is foodservice and we've seen some very interesting trends in the last -- let's say few weeks on foodservice and we have idle capacity in foodservice. So we have no problem filling that foodservice speed. So any growth in the foodservice category is unrestrained and a great opportunity for us is that business, we're confident it's going to continue to improve.
And on the Grocery Products category, we talked about a tremendous Q2 that we had. But Q3 and Q4, I think it's safe to say were crippled by supply chain challenges that really are not existing anymore. By the availability of labor is much better than it was last year and so that's going to be able to allow us to grow Grocery Products in the back half of the year. Jim talked about Refrigerated Foods, how we've had some constraints in the pepperoni business and that we have additional capacity that's come online there and we're doing a very nice job of recovering the pepperoni business, and actually seen some very significant growth in pepperoni in the foodservice category. So I think it's hard to underestimate, how much of an impact the constraint had in 2020 and the opportunity that we have in 2021.
And one of the other things that we haven't talked a lot about is that during this time of constraint, we've found some very significant efficiencies in our operations that have helped us produce product even in a difficult time period. Now as we increase it will be able to take those efficiencies and actually drive cost issues and efficiency issues throughout the operations.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, sure. I would first start off by saying we generally don't have a lot of generic retail and certainly the numbers 1.01 million to 569,000 would support that. What you're seeing there is largely the impact of some of our advan restructuring leases.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Well, you can see on the downstream and at Chart 30, we've put kind of a January estimate and they're still kind of where we're at currently, and it's still well outside that historic range. And so I think today if you look at the industry as a whole across the globe, where margins are at, it's not a sustainable position just because of the losses that are accruing. And if you look back in history, I think there's a certain physics associated with these businesses that say you can only go so low before you're not covering your cost and you're bleeding cash, and so you're going to have to make adjustments.
And that historical range, in my mind, kind of sets those limits. I mean these are commodity businesses. And if you take a price that goes below the marginal cost of supply, it's going to end up costing industry as a whole, and eventually, players will rationalize and drop out. And that -- for as long as I've been in the downstream, that business has been long supply, and it's a slow process to rationalize [ a type ], particularly as more refineries come on out in Asia.
So I think it's just -- what you're seeing there is the time cycle associated with rebalancing the markets and the supply/demand balance. And obviously, demand is off pretty significantly, what was already a kind of marginally long business. So it will be a function of demand coming back and how quickly that recovers and then continued rationalization. As Stephen said, we've seen last year much higher levels of rationalization.
And my expectation would be if we don't see the margins recover back to within that band that you'll continue to see that.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Good morning, Tommy.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks for taking my question. Congratulations on great results. I guess my question is, when I look at your backlog, it certainly suggest that your order rates were substantially above the revenue that you just reported, probably like $140 million above. Have your overall -- I guess that I'm assuming that your overall visibility has extended. Could you just help us kind of understand how much more visibility you have now? And then maybe help us understand have your lead times extended? What are your current lead times for wire bonders?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, there was a slight increase in the multiple on the MSR. We're still in the low threes, overall. What you're seeing on multiples, just to give you a sense, in the origination business now, you have what I would call conventional production in -- let's just use the correspondent channel. Multiples right now are give or take about four to four and a quarter.
On the Ginnie side, we see multiple something around three and a quarter-ish, three and a quarter to three and a half. So you've seen multiples go up from the lows fairly dramatically. As I pointed out, we ended 12/31 with an overall multiple on our book in the low threes. As we look at -- as we think about other competing factors, clearly, the government is buying pretty much all -- they buy, call it, $7 billion a week of -- of production.
You would think as we get to a more normalized world, at some point, that will stop or that will slow down. As that happens, you're going to see speeds come off. Your point on the primary secondary rate is a good one because we've seen mortgages tighten pretty dramatically, overall. You've seen rates back up, let's say, in the 10-year tenure from 90 to 115 basis points since the end of the year and Fannie two and a halves are unchanged in price.
So overall, tightening of spreads as a result of government buying, I think that will subside at some point. And again, you'll see slower amortization. So to your point, it's not only just a rate thing in the treasury market, but it's also, I think, sponsorship from the government.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey, good morning guys. This is [Indecipherable] on for Chris. Just a quick one. Apologies, if you had already covered it. But could you discuss the driver for the sequential increase in non-operating income in the quarter?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks Noelle.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
No, I'll let Zach give you a little more color on that. But what we're seeing is a very diverse market because all crops are up. So, if we look across our entire distribution chain across the entire United States, we're seeing pretty low inventories. So, one of the great things about having strong commodity prices across the board means that the potato growers are buying as much product as the cotton growers in the delta of Mississippi.
And so, when you have that kind of across the board, commodity price strength, you see drawdown throughout the country. The other good news is we're not seeing the level of imports from the European countries. So, I think that we're extremely well positioned to see 2021 from an entirety standpoint. Be a very solid year.
I'll let Zach lend some color to that.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks, David.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I'm sorry. There we go. Thanks for taking the question. On the Lenovo partnership, can you talk about what the competitive dynamics are there? Are there any other providers that are working with Lenovo and if they have this tied in the integration as you do? And then secondly, just curious with AHV it's kind of settled in at 52%, it's been in the 50% range for a while. Is that something that's going to change at any point down the road or is it probably where it settles in for a while?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey, James.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you, Marcelo.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, Matt. So, I'd probably explain it two ways. One is, the bulk of the increases that we're seeing that I talked about really are coming out of the commodities or input costs, freight and that COVID release. As it relates to opex, what we've been talking about for probably the past year or so has been the fact that we cut about $40 million -- over the course of '19 and '20, we cut about $40 million of discretionary spend over the course of two years because volumes were down and then all of COVID last year and we were expecting in '21 that we'd add back somewhere between a third and a half of that during '21 and that's still our projection.
From an increased perspective, I'd say it's a range now because honestly, I think it's going to depend on how things start to recover and the trajectory of the recovery and how much traveling really happens in going out, but it absolutely includes things like the variable compensation piece. The other discretionary spend remains to be seen.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. John, thanks for the question. I think we've continued to be quite excited about the skin care line and how that's continued to grow. I do believe that there was some artificial inflation from fourth quarter just due to some timing associated with an anticipation of price increases or what have you that I think our customers anticipated but, obviously, was not rolled out. So I do think there was a little bit of a pull into fourth quarter just naturally from customer behavior.
I do believe that the base, that I spoke of earlier, of $7 million and $7.5 million is still the base that we expect and anticipate for this business going into 2021. And I think there will be some lumpiness from time to time as people anticipate pricing increases or there's some stocking of new customers or expansion of customers. But I think what I spoke of, I think, is really, I think, where I'd like to kind of believe the baseline has going forward.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I'll take the last question first. As staggering as that snowstorm wasn't, I'm sure we lost a few cases as a result. All my sales force is talking about is COVID restarts and so forth. So I think it got muted a little bit by the impact of COVID restarts.
But I'm sure we probably postponed some number of cases in various different locations. Derrick, gross margin.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Great. Well, listen, it's Mark here. And thanks everybody for participating in the call. As you heard, we had a record quarter in terms of earnings, not just record; we had industry leading earnings and very strong cash flow, two things we've been known for over the last several years as being at the forefront of the industry.
We're making a lot of progress moving toward some pretty big catalyst for our company from a value creation standpoint. And we look forward to our next quarterly call to update you on how much more progress with me. Thanks a lot and have a great week. Take care.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Well, there's been plenty of data points even year to date, enhancing, if anything, the understanding of the value that the patented iBridge framework delivers to B2C operators already active in multiple states who have relatively recently implemented that capability. We think the rewards program of retail casinos has always and will continue to always sit at their ability or at the heart of their ability to compete aggressively against online-only players. So it's an incredibly important and strategic intellect property asset of ours.
I think it is very well-known within the industry. And patent licensing is always a balancing act, you know, that there is a need to enforce intellectual property here in the U.S. in an appropriately balanced and measured way. And we intend to continue to press the merits of licensing the intellectual property on people who may or may not be infringing on it even today.
So we're very conservative. We're very careful. We know the enhanced actual value. We priced it and licensed it at a market rate, and we'll continue to respond to the opportunities with a real degree of flexibility.
But for sure, this is probably the most important piece of patented technical capability that exists in the crossover world between retail and online gambling today.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Sure. Well, there's nothing approved right now for these individuals. So we don't really think that there's much need to control on the background therapies. We would expect the registration endpoints to be a little bit longer-term, 12 to 24 months focused on function.
But that's based on prior Phase 2 and 2/3 studies that have been completed, probably going to be focused on gate. But as far as enriching the population, we'll have to see what the Phase 1b data look like before we discuss what the ideal target population is for Phase 3.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, sure. Let me take that one, Kevin. Yes. So that range still exists. It's about -- it can be $0.75 a dollar. I think of it more as $0.50 to a $1 per ton for every $10 of Brent crude. When we looked at -- and it depends by mode, right, of course. When we set our plan, we were right around $50 Brent for 2021 and, obviously, I think today it's around $63. So there is some pressure there. But -- so when I look at the first quarter, I think, we'll actually be down year-over-year in shipping and handling freight in Salt. That's really mix-driven.
If we continue to see weather like we have and we -- it ends up on a normal basis because of the incremental highway deicing sales volumes, you're going to see that blended salt distribution cost lower year-over-year. But based on what you said and where oil is, certainly in the back half, we would expect to see some pressure and that could be middle-single-digit pressure in the back half of 2021, just really fuel-related.
As it relates to the fourth quarter, we really did a good job internally through our logistics team. We talked a little bit about it in our prepared remarks, how we optimized our distribution network, and we did a lot of good value-add opportunities in there and that really muted the fuel cost increases that we were seeing in the back half of 2020. So, as I said, probably looking lower year-over-year in the first quarter and there could be some mid-single-digit back half 2021 pressure in freight.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hi. Good afternoon. Thanks for taking the question. To follow-up there, Dave, on -- now that Phase 1 for Wynnewood looks like end of 3Q, but you're close to picking the technology provider or how you're going to go about Phase 2 of the project? That's right, Phase 1 being moved to 3Q, and now you're looking at Phase 2.
Is there any way in terms of timing to pull up the pretreatment, especially in this environment where we're at elevated RINs and elevated feedstock costs. How should we be thinking about timing of Phase 2? I think originally, the plan was sort of more toward the end of next year, but is there some flexibility in that in terms of accelerating that?
And then I have a follow-up on feedstocks.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Good afternoon and thank you.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hi, there, thanks for the time. A slightly different take on the competitive environment question. With the seemingly significant opportunity to deploy capital into the sale leaseback market, I was just hoping to hear an update on the competitive landscape there. I know we were already seeing some participants' pullback before COVID. And for a period last year, some of the debt markets' certain lessors used to finance their growth, were not open. So how do you see the competitive set that actually has available dry powder to execute on the sale leaseback field available in the market today versus what that competitive sale leaseback market looks like pre-COVID? Thanks.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Hey, Lance. Well, the first part of your question, we entered 2020 with 1 million subscriptions and we exited 2020 with 3.5 million. So there's your growth profile through the year. T-Mo was a great customer. And they placed their confidence in us, and this is managing subscriptions for principally as enterprise and their government sector. And as Magenta and Yellow came together last year, it was really a boost in the demand for that capability with us. And as well, now you know they're having Inseego Connect. So, I mean, that was the principal driver. It was the demand from the markets for subscriptions for devices. And that's what we provide as a service. So overall, triple-digit growth last year. We're going to moderate our view this year. We think it's going to be very, very strong double-digit, but in the subscribed portion that is, but we still see very strong growth opportunity in 2021.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Sure. So as we've grown as we merged and brought together the two companies, both companies were serving these large IDMs, and we had back end a lot of strength from the Rudolph side from the back end from the nanometrics side, some front end. When our customers are looking at the total spend together, they're looking at putting together a more comprehensive plan, so giving us more visibility, letting us understand where their expansion plans are coming across both the front end and back end and making sure that we have the visibility to ramp along with them.
So the volume purchase agreements are meant to give that indication. In some cases, they're more formal than others. All of it is meant to define a year. So this isn't over multiple years. I think that was part of your question. It's all for this year. So it's an indication of what they see, what they expect to spend this year across our products.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
That's correct. Yeah, that's -- as you indicate that number is primarily scrap and that's exactly how you calculate the gain.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
No, I mean, I think warrants -- we were getting quite a few warrants. Yeah, I'd say, six, seven years ago, nine years ago, 10 years ago, I think in the where we're focused with private equity groups, and that's a large majority of what we're doing today. Getting warrants is going to be a pretty hairy situation, which we haven't been doing much of. So it's more direct equity investments alongside the private equity groups, and then providing the debt solution as well. And that's been the approach for over the recent years, if you will.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I'm sorry, Anja, I didn't quite hear the other business, what you said. Could you just repeat that?[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, Harlan. So we have seen a very strong pipeline. And that started with Rome, but we see that expanding with Milan. I think if you look at the breadth of platform offerings from all the largest OEMs for Milan, it's just broader than our past generation.
And I think people are also starting to come up with more appliances, and we've done quite a bit more ISV optimization as well. So our visibility is very good into the second half of the year, and it's also very good into 2022. I think the good piece about this, as you said, it is longer design cycles. But with large companies and certainly with some of the Tier 2 cloud guys, we've seen good strong visibility for multiple quarters.
And then as we think about sort of the small, medium business and more of the channel business, I think all of that is a strong opportunity for us.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
About one-third.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Sure. So for the glass, it's a relatively new issue, and it's primarily in U.K. and Continental Europe. So the glass suppliers, there's two suppliers that have float lines that manufacture the glass that have gone down and they're on force majeure with the customers on allocation.
Now obviously, we don't buy that, but any of our window and door customers that use glass, it will impact their ability to manufacture. So there's restricted capacity in both the U.K. and Europe for glass. It's mainly a European issue.
As it is being relatively new, there's very little of that impact baked into our guidance. What's baked into our guidance is what we're being told now. So the only comment being is that that situation worsens and something else were to happen unexpectedly, that could have an impact. And that is not baked into our guidance.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I might ask Kevin to supplement these comments, but I would tell you that, I think we've benefited from positive and progressive regulation in the state for a long period of time. And there is no question that electrification will be a dominant near-term and long-term secular trend. But what's interesting to me is that, there is growing convergence around the role of, not just electric infrastructure, but natural gas infrastructure, because natural gas is what's allowing us to find that efficient frontier. I hosted a guest in our center of excellence here yesterday and we were looking at our real-time Board and I think we are at right around 82% renewable penetration on SDG&E system at a point in time yesterday afternoon. And that's only possible because you've made those investments in a resilient grid backed up by batteries and you've got all of the peaking and necessary load support from your natural gas side. So, this was one of the lessons learned from our blackouts in California last summer.
So, I think there is this kind of convergence that over a long periods of time to continue to push cleaner forms of energy. Natural gas has a role and we're still using a lot of natural gas, obviously, in power production. So there will always be points of differences. There'll be robust dialogues. There'll be conflict of discussions around energy policy. But over long periods of time, I think the state has done a great job and you will recall, in the most recent GRC, the PUC approved the largest capital spending program in the history of SoCalGas and it's really a flexion of their commitment to safety and reliability and I think the long-term importance of that system.
And, Kevin, would you like to make any more comments about natural gas generally in the state?[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Absolutely.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I would just point you back to the capital allocation program, it's part of sort of four pronged capital allocation program that we have.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, that's exactly right. When you think of the delay, think of it in terms of certain countries had travel restrictions. So, I couldn't get boots on the ground to really qualify the supply chain, fulfillment and things of that nature. So, that was really a delay.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I think, yeah. I think our focus for this year was to get higher than 10%, just the EBITDA margins. You know, when we started the year, I think, as we've witnessed with this sudden change by the government with the withdrawal of the troops, it is going to impact our goal. I don't think we're going to do 10% adjusted EBITDA margins in the segment.
So you know, maybe closer to 8% or 9%. I think when -- then that's for this year. So I think, again, as I look forward to next year, I'd like to get us back to the 10%, that's the target. Our commercial segment, you know, we've done pretty well.
Each of the first three quarters, we've done north of 17% adjusted EBITDA margins. You know, if we start getting incremental volume on some of these large opportunities that we're talking about, it will come. Normally when you do development work such as customization or customer-funding type R&D, margins on those initial programs are relatively low. You get the benefit of production.
And you know, that's it's a little ways off. But you know, again, we're talking very large amounts of hardware coming.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
John, I appreciate the question. And I know we're over time. We appreciate everyone's patience and staying on passed top of the hour. Thank you for that. Thank you for your interest in Sysco. And I just want to leave you with one statement of optimism. I know we talked about December being a really tough month for us and that the quarter had sequentially been decelerating, we're seeing the opposite in Q3, which is a good thing. Our January month which just closed performed better than December and we are seeing sequential improvement in our business trends. I'm even more optimistic into these forward-facing months as those restrictions that are placed upon our customers ease. And it's all going to be tied to the progress that we make in vaccine administration. I think you all know I worked in healthcare for eight years before I came here. The news is giving a doomsday scenario on vaccine administration. It's going better than the news is covering it. And what happens next is vaccines are going to begin to be distributed in places like Walmart and Walgreens and CVS. And when we can get 40,000 places in this country administering vaccines and can make meaningful progress on fighting this crisis, we're going to see governments be much more willing to ease restrictions. And even places like U.K. where we are in complete lockdown, U.K. as a country is doing a terrific job with vaccine administration. And that's going to provide an opportunity for a business recovery in calendar 2021 and we're poised and ready to take advantage of it. Neil, I'm going to toss it over to you, if there's anything else to close out the call.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Rich, this is Harry. I think I'll jump in. I mean I think what we focus in, we realize we're going to get market rent growth, and that's going to vary, and it should be priced in the assets. But the assets that we're buying, we're sourcing properties where we believe we can push NOI above market rent growth. And the market rent growth, the theory is priced, it might be -- there might be some inefficiencies, but primarily, we're focusing where we can do something with the asset, either with the platform, we buy a property near other UDR properties through some capital programs so that we generate outsized NOI growth over and above the market and therefore, outsized returns.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Really thoughtful question, Jim. So we don't have any current bottlenecks in our infrastructure. I would say there are many bottlenecks in the global logistics chain, whether it be Long Beach, whether it be rail out of Long Beach, whether it be availability of trucking.
The list goes on, right? So as we look at our ability to process goods, whether it's through our warehouse or through our cross-dock facilities, we can process a very high volume of goods. And I certainly have no concerns for '21 into '22. You might note that we're significantly expanding our U.S. DC.
Again, that will be open later next year. And we are also -- we have moved to our new DC in the Netherlands, and that will be kind of up to full operation again by the end of the year. So it's in partial operation across the two facilities today but working really well. In terms of longer-term investments, absolutely.
We will -- we continue to grow the business at these rates or the rates we anticipate to continue to grow the business. We will continue to make investments in our infrastructure in the U.S., in EMEA, and some of our key Asian countries as well.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I'm great, Ryan. How about you.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Thanks, Jailendra. We're really happy with the new enrollment. I appreciate you're asking about that because we had a new commentary around that to make sure we gave as much transparency as we can.
We're excited about the fact that we saw a 45% year-over-year growth in unique members. We're also equally excited to see the expansion of those -- the incidence of members who are enrolled in multiple chronic care solutions, having gone from 6% a year ago to 20% of enrollees being enrolled in multiple programs in the second quarter. And that's what translates to overall enrollment expansion of 60%, right? So if you look at each enrollment into each program as a unique incident, that we would have seen 60% growth. But we think the best metric is to give you unique users, as well as what percentage of users are enrolled in multiple programs.
It was in line with our expectations. And so it was -- historically, Livongo was always sort of first half of the year oriented in terms of its new enrollment because clients frequently come on the first two quarters of the year or about generating new enrollment, and then there's modest increases over the course of the year. Historically, about 70% to 80% of the Livongo growth in enrollment came in the first half of the year. I think that's a reasonable proxy for this year.
And so I wouldn't want to get ahead of that in terms of expectations. And that's what's built into our modeling and our guidance.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Hey, good evening, everyone. Can you talk about the cost structure and the margin a little bit? If I look at the guidance correctly here, it looks like continued margin expansion. So any more details there. But more importantly, it's just operating leverage or is it still a lot of efficiency gains that you're getting. You've been doing a lot of that. So just wondering we are still finding opportunities too to, I guess, cut if that's what's happening.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I think you said it well[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hi, good morning hope you're all doing well.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you, Scott.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. I'd say -- we're looking at all those things. It's a great question. So if you do your walk from '20 to '21, the Auryon start-up cost, you can think of in the range of 100 basis points or so. When you put together the inflationary pressures that we're seeing, including freight costs, you're over another 100 basis points. And then just the COVID impact with that we saw on our absorption is even another 100 basis points. Now we think some of those inflationary pressures are going to keep going as we head into FY '22. We're not in a different situation than what you heard from a lot of other companies. So there is going to be that drag as we move forward. We were exiting the year in that north of 56%, but you're going to see a little bit of a pull back as those inflationary pressures -- peer pressure start to accelerate. So that's where we get to our guidance of approximately 55% for FY '22.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks a lot. Thanks a lot Joseph.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I can make a quick answer on the promotion and Matt will come back -- we have already pulled the biggest 5G upgrade from the market, that we did...[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey. Can you guys hear me?[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hey, good morning guys. So on the PPP front, do you have the amount of net origination fees thAt are unearned at this point and expect to recognize over the forgiveness process?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I think it's both. I mean over the last half dozen years we've meaningfully invested internationally, added in terms of acquisitions, hiring individuals. Our London office is now our second largest office. It was much, much smaller really 5 years, 10 years ago. So part of it is our presence, our brand, our position is much greater outside of the United States today than it was even a half a dozen years ago.
And then partly the international business I think has lagged the US for many years. And while there has been some stops and starts in it over the last year or two, at least for us it does feel like it is picking up from where it's been. Maybe it's finally due to some resolution of Brexit, maybe it's because they're coming off of a lower base. And as you mentioned before, [Indecipherable] just because we also have a greater presence. I think all of that is causing our business profile and results to be growing rather nicely at the moment internationally.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Good morning. Thanks, guys, for taking my question. Encouraging news on the collections, obviously, and the traffic numbers as well. Just wanted to ask you a little bit about the balance sheet, particularly as your leasing costs rose by about 50%, it appears. And obviously, the line hasn't been renewed yet. What about equity? Your stock has been pretty volatile, but it's making -- it's one of the better performance so far this year. You spiked at one point. What are your thoughts around raising equity when you're trading at a premium to NAV.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hello.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, I think it's a great question. Our guidance is more based on the labor constraints that we see in the marketplace. The base market, the consumer demand through all of our channels continues to be very strong. We've got no concerns about changes that are there and I fully expect that. I think with the volume we have, we are moving through the peak part of the decking season that we will start to see some inventories build, but we're not seeing a fall-off in consumer demand from a growth perspective.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Well, again, I think the first bar to get agreement with is FDA. And as you say, the opioid-reduction component was a very important one. And it may have greater importance to the FDA, but I think it also has importance to EMA. But I think that the driver of the proposal to EMA will be based on how FDA reviews the data.
And so I think the sequence is clear to us. First, the FDA meeting.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you, everyone, who has joined us today for your continued interest and time. We hope each of you stay safe and healthy, and we look forward to speaking with you again soon. Have a great day. Thank you.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Great, thank you very much. Two questions. Just one from a franchisee profitability perspective or maybe you can apply just through your company operated ownership, but obviously sales are strong, but clearly the cost pressures are prevalent, and I appreciate the color you provided in terms of commodity and labor cost inflation. I was just wondering, how franchisees are responding to those pressures whether there is a push for incremental pricing or whether there's other initiatives you've got to mitigate the cost pressures, specifically around the labor side, wondering whether you're seeing or hearing of any shortages or perhaps maybe your sales are strong enough where you don't feel the need to necessarily respond to those presumably short-term pressures. And then one follow-up.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. So from a commodity standpoint, we've seen in Q1 the pressure has started in Q1, and we estimate something like $3 million to $4 million of impact on our results. Some of it, we've been able to pass it through to customers. And this is especially valid -- and this will be increasingly valid for IP, CCT and also our rail business.
We expect that this trend to increase and to strengthen in Q2 and the second half. One of the reasons is because we have contracts on steel, and we booked 6 months in advance. And so at the end of Q1, we're running out of our last booking that was relatively favorable in terms of price.
The difficulty is going to be in Friction, where this is a really competitive environment. And as a result, it's very difficult to get in front of our customers and ask for a price increase. So I think that here, we're going to try to offset it with productivity as much as we can, use some of the escalator contracts we have with our -- with some of our customers and then try to negotiate lower price reductions, contractual price reductions in order to offset some of that impact.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Sure. I can start. This is Brian. For me, I think the quarter went pretty much right as expected in both cases. It's -- we are ending out of the quarter very strong. You saw the site adds and all. The installations have gone well. I tell you the business is strong, and it was right in line with what we were forecasting in. I'll let Joe and Eric add more detail but it was right in where I thought we would end up for the quarter.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I mean if they don't renew by 30th, then we will go through our releasing initiative to find additional operators to take over those properties.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you, Alicia. Regarding India, we also observed the local situations closely. India has, as we mentioned in our earnings, continue to be a top-grossing market and where our game performed very strongly. Time spent per user continues to be very high.
We see a rising pay user ratio there. We see it as a highly promising market, and we'll continue to contribute meaningfully to our growth in a game with a very long runway. And we will focus on promoting our game and user engagement in India. And in terms of food delivery, we see it as a category on Shopee and we see very strong user reception naturally.
And, you know, similar to how we're able to grow all these other categories on Shopee through strong execution, right business model, and user engagements. And, you know, as we've mentioned before, you know, for food, we see it as more of a complementary to our other e-commerce offerings. And, you know, if we do become the market leader naturally like what happened in Vietnam, we're happy to see that. But we see it as a focus on healthy growth and sustainable growth as part of the overall e-commerce ecosystem.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hi.[/INST]
Direction (UP or DOWN): DOWN | DOWN |