Facebook (FB) Transcript Smart Summary™ — Legal Discussions Get Longer and Instagram Innovates

In this final installment of our earnings season blog posts (informed by Sentieo’s transcript Smart Summary™), we’re covering Facebook (FB).

We kicked the week off by “getting to the meat” of Beyond Meat’s call on Monday night. While growth and margin expansion were strong, our keyword surfacing highlighted McDonald’s as a key topic.

We then looked at Tuesday’s transcript from Merck. While its VIP drug Keytruda is growing nicely, the Smart Summary™ highlighted pricing pressure concerns.

YUM! Brands, the parent of KFC, Pizza Hut and Taco Bell, reported on Wednesday morning. Smart Summary™ was useful to check on the many moving parts of this global, multi-brand QSR chain — from regional comp sales across brands to unit growth. Our sentiment scoring noted a particular analyst question about system-wide margin pressures. (Because it was deep in the transcript, a human reader could have missed this). Our blog posts above also feature short videos, with our Head of Research Nick Mazing reviewing how transcript push notifications work in Sentieo, and what he chooses to hone in on for each ticker.

For Facebook, since it is a well-covered company, we will focus on a smaller set of topics: 2020 guidance, regulatory discussions, and product innovation. 

On the guidance side, we see 2020 revenue growth deceleration, but this is widely expected, as Facebook is already large. We also see concrete expense numbers; there have been questions regarding Facebook’s investment in combating fake news and other undesirable content. 

There is a very lengthy regulatory discussion on this call. We see various entities/regulations mentioned on this call. Investors pay close attention to the regulatory environment. Heavy regulation tends to benefit the incumbent players, and Facebook is poised to lock out threats, similar to what happened in the US with the cigarette companies and the “Master Settlement Agreement.”

Contrast this Q3 2019 regulatory discussion versus Q3 2018. We can see below that the category in the Smart Summary™ was blank. 

We can also see the spike in Facebook’s 10-K/10-Q mentions of FTC. They went from single mentions to 27-30 more recently. 

We can also see the financial impacts. The FTC levied a fine in the billions of dollars, which we can see when we chain together the breakout table in the latest 10-Q with the same table in prior filings. 

The last highlight from this call is product, specifically Facebook’s innovation around Instagram. Our NLP-based keyword surfacing picked up the conversation there as the top keyword on that call. 

 

Check out our quick video walkthrough on Facebook.

Smart Summary™ is just a part of Sentieo’s research platform. To find out more about us, please get in touch

YUM! Brands’ Q3 Transcript Smart Summary™ — Extracting the Essentials From a Call With Many Moving Parts

This week, we continue to use Sentieo’s transcript Smart Summary™ to highlight selected reporting companies. We apply machine learning and natural language processing to create a more efficient and a more repeatable process. On Tuesday, we highlighted Beyond Meat (Nasdaq:BYND), and on Wednesday, we looked at Merck. (While Keytruda continues to power through, we picked up pricing pressure warnings for 2020.)

In today’s highlight, we are looking YUM! Brands (NYSE:YUM), the parent of global restaurant chains KFC, Taco Bell, and Pizza Hut. The company reports many metrics about its business: domestic (US) and international unit growth, comparable store (“like for like”) sales growth, and “systemwide” sales growth (reflective of the health of the franchisee system). 

Additionally, the company has a minority investment in order aggregator/delivery company Grubhub, which further complicates the financial reporting, as YUM reports mark-to-market adjustments on top of the operating earnings. 

In this post, we will share our highlights from the Smart Summary™ PDF that we received in our email inbox a few minutes after the original transcript came through. (The Sentieo platform is much larger and more interactive that what you see in this post, so we encourage you to check it out.)

With Smart Summary™, the transcripts are parsed by a ML tool which classifies and scores sentences based on broad classifications, such as Guidance or Legal. (See below). Smart Summary™ runs a layer of NLP processing on top of that, classifying sentiment (positive/negative/neutral), looking for “deflection” statements, and surfacing keywords. 

Looking at the YUM Q3 call Guidance section, we immediately spot the big delta between the GAAP and non-GAAP earnings. We also see the red (negative) outlook for Pizza Hut US, a unit that has been weak for a while. 

As we mentioned earlier, the transcript (as well as the press release) are very KPI-heavy. The convenient sentence extraction and classification helps you get the full picture faster.

We also note a number of negative sentiment questions from the analysts on the call, with the most “negative” analyst question being about system-wide margin pressures. 

The keyword surfacing logically picked up Same Store Sales, Net New Units, and System Sales.  We are highlighting just one of these here; unit growth keeps up, so the sentiment overlay is green. 

Watch our short video walk-through:

To find out more about the Smart Summary™ and all of Sentieo’s other AI-powered features, please get in touch

 

How to Plot Metrics Across An Entire Company Watchlist

With v3.9 of Sentieo, you can now run comparable analysis or obtain sector-level insights (e.g. Sector Gross Margins, a stock’s multiple relative to the sector) by entering a watchlist in any ticker input box in Plotter. 

Using Watchlists In Sentieo Plotter

You can now plot metrics across an entire watchlist, allowing you to (1) run comparable analysis across a peer group or (2) generate aggregate metrics for a sector. When you arrive at the ticker input box, simply start typing in the name of a watchlist to select it:

watchlist tokenization

Peer Group Comparisons

Use the watchlist function on Stock Price to find outperformers in a peer group:

 

Aggregate Metrics Across a Watchlist

Use the watchlist function on P/E and combine it with Weighted Line to generate a sector-level P/E:

 

The watchlist function is among the most powerful tools in Plotter. We also recommend trying out the following use cases:

  • Comparing recent changes in EPS Estimates
  • Generating sector KPI’s
  • Relative P/E vs. a peer group

 

Other Improvements We Made

 

Saved Series

We made it easier to tag series to tickers and topics, and have also made them easier to find. Try using this with Table Explorer or CSV Uploads to manage your own KPIs.

Correlations

We simplified the correlation section so that you can more easily determine what key factors are driving stock prices and valuations.

Templates

We simplified the templates section and added them to the “Add Series” search results to make them easier to use.

 

Join our upcoming webinar to learn more about our financial data updates in Sentieo v3.9!

Our Latest Release: Private Company Data, New Financial Models, and Automatic Smart Summary™ Email Alerts

Today, the Sentieo team unveiled our latest release! New capabilities in this release include the addition of private company data and search, an improved ability to model equity data through a dramatic increase in the data fields available within the Sentieo Data Terminal, and automated email delivery of earnings transcript Smart Summary™ reports.

Private Company Data

Enhance your corporate research workflow and insights with information on 750,000 private companies, including:

  • corporate profile information (founded date, location, activity sectors)
  • funding rounds
  • investments
  • exits
  • acquisitions

…plus the ability to search for private company news and press releases using Sentieo’s AI-powered Document Search.

 

New Equity Data Financial Models

Save time, improve productivity, and enhance the confidence in financial modeling and investment decisions using the new and improved Sentieo Data Terminal, which includes over 1,300 new data fields and many more pre-created and auditable financial models. (Click image below to zoom in).

Automatic Smart Summary™ Email Alerts

Smart Summary has disrupted the onerous and time-consuming process of reviewing and interpreting earnings calls, and now Sentieo has added the ability for users to receive email alerts for these unique earnings call transcript categorization and analysis reports. Learn more about Smart Summary here. (Click image below to zoom in).

To get more details about the release, contact your Sentieo representative or sign up for our upcoming webinar about the updated Equity Data Terminal. A Sentieo product specialist will be walking through the latest new features!

Sentieo Is SOC 2 Compliant!

Here at Sentieo, we continually invest in security and availability best practices to safeguard the valuable data stored by asset managers and Fortune 500 competitive intelligence, IR, and strategy professionals in our corporate research platform.

We are pleased to announce that we have successfully completed our SOC 2 audit, conducted by A-LIGN, a leading compliance and cybersecurity firm. The report produced by A-LIGN confirms the effectiveness of the policies, procedures, and process controls Sentieo has in place to ensure data security, availability, and privacy.

 

Why SOC 2 Compliance Matters

As more and more organizations adopt SaaS solutions to support business critical operations, the American Institute of Certified Public Accountants (AICPA) created the System and Organization Controls (SOC) for Service Organizations standards to govern how SaaS and cloud service providers assure that their customers’ information is secure and available when needed.

The SOC 2 audit process is rigorous, thorough, and has become the gold standard for security compliance for SaaS companies.

Achieving SOC 2 certification means that Sentieo’s software meets the standards for data oversight and monitoring, and that we can proactively identify and address any unusual activity.

 

Sentieo Security Controls at Work

Sentieo’s financial research platform was designed from the ground up to be a secure, multi-tenant solution. Some of the security safeguards we’ve put in place to protect customer data include:

  • Data transmitted between Sentieo’s platform and our users is encrypted data in transmission using transport layer security (TLS)
  • All database data is encrypted at rest. User passwords are further encrypted within the database and different methods of Single Sign-On (SSO) are supported.
  • Sentieo’s production systems reside within a secure Virtual Private Cloud (VPC) within Amazon Web Services
    • VPC access is secured through a password-protected Virtual Private Network (VPN)
    • Sentieo requires 2-factor authentication for access to our AWS consoles
  • All customer data is logically isolated, with a unique set of authorization tokens used whenever customer data is being submitted to Sentieo.

Learn more about Sentieo Security and Availability. 

 

Future Security Enhancements

Sentieo is fully committed to the ongoing security and availability of customer data. We continue to grow our team of data security experts and will further validate our commitment to the highest standard of security controls and availability by completing our SOC accreditation.

Stay tuned, too, for new enterprise security deployment offerings that will be rolled out later this year.

If you have additional questions regarding Sentieo’s security or availability processes and controls, please reach out to us at hello@sentieo.com.

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Disrupting Transcripts: Short Video Example on UPS

Last week, just in time for earnings season, we released Sentieo’s machine learning-based transcript Smart Summary™ feature. In short, we automated what we used to do as buyside analysts: reading through transcripts and classifying information.

This week, we’ve looked at the newest transcripts from Goldman Sachs and Haliburton in detail. Yesterday, we shared an in-depth video discussing Whirlpool: from redlining the 8-K, to looking at the stock price action post-call, to its Smart Summary™. 

Today’s video is shorter, as we only focus on the Smart Summary™ aspect and we discuss UPS. We were able to extract the important information in about 2 minutes.

The Smart Summary™ is one of two major ML-based product releases we had this month: take a look at our synonym suggestion tool as well. Your searches can be a lot more productive with this dynamic addition to our existing large synonym/acronym dictionary.

If you are ready to test out our platform, please get in touch.

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Disrupting Transcripts: A Smart Summary™ Video Tutorial

This week we’re showcasing our new, machine learning-based transcript Smart Summary™, an entirely new way of reading — and more importantly, summarizing — transcripts

Yesterday, we looked at Halliburton’s transcript Smart Summary™In today’s post, we’re sharing a video that covers Whirlpool (NYSE:WHR), a “classic” industrials company. We review the earnings 8-K, discuss the positive after-market reaction to the guidance increase, and then we dive into the transcript to see why the stock actually declined after the call. 

To try using Smart Summary™ in your own research workflow, sign up for a custom demo.

Disrupting Transcripts: How We Used Sentieo’s Transcript Smart Summary™ to Review the Halliburton (HAL) Call

Oilfield services provider Halliburton (NYSE:HAL) is the first installment in this week’s Smart Summary™ showcase. We are applying our newly released machine learning-based tool to improve our own reading while saving time. Below, we will highlight how we picked out the critical pieces of information on the call in just a handful of minutes. 

If you haven’t read this feature’s announcement post, here’s a recap. Smart Summary™ is a one-click application of machine learning that “slices” transcripts in several ways. One of these slices is a broad Classification, like “Guidance” or “KPIs. (See 1 below).

The second slice (2) is based off NLP-powered sentiment (green and red labels). The third application is based on surfaced Key Terms: products, brands, and geographies (3). The fourth and most innovative application is the removal of the chronological flow all together; sentences are sorted in a table view mode, and can be ranked by “signal strength.”(4) 

(1) (2) This is what the clickable Classifications look like for HAL’s transcript:

(3) Top NLP-surfaced Key Terms are clickable as well.

(4) Clicking the Table Icon in the upper right will open the sortable sentence Table View. (Click on image to zoom in).

With this in mind, here is what we are seeing as key pieces of information in HAL’s transcript.

Free Cash Flow has been and will continue to be positive. This is really good news given the FCF challenges in the energy industry:

Directly related to FCF, HAL is cutting back on capex and is focusing on margins:

Increased activity in several regions led revenue growth in the quarter, while the overall outlook is optimistic:

Switching from the full transcript view to the summary view for the Guidance classification, we see the summary at the end of the call: guarded optimism and focus on margins and capex. 

We complete the final review of the transcript using Table View: the non-chronological way to extract information from transcripts. We can see how key sentences on the topics highlighted above are picked up by NLP. Readers can sort sentences along several categories. 

In terms of Guidance “loading,” we see Free Cash Flow ranked highly multiple times:

Ranked purely on sentiment, we can see that the overall business did well in the quarter across several geographies:

Ranking for Products and Markets, we see new product discussions as well as the pricing signals.

Investors can also easily pick up the negatives in the results and in the outlook: large legacy frac fleet, soft pricing seen by competitors, some segments might see revenue declines. 

Reading non-chronologically does not mean reading out of context. Simply click on the Context link to see the phrase within context. 

The Table View is also available for the NLP-surfaced Key Terms. In one glance we can see whether these terms are used more or less quarter-over-quarter, and by whom (analysts vs. management). We see how prominently “North America,” “capex,” and “Free Cash Flow” are featured. An added time-saving convenience is that these Key Terms are click-through: clicking on one will search all HAL transcripts for that term, so you can get immediate historical context in seconds. 

Here we have clicked on Capex, and we can see highlights in the most recent transcript: note how Sentieo’s synonym search picks up various forms of the term.

To learn more about how using the latest ML-based tools can help you and your team be more productive, please get in touch with us

 

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Introducing Sentieo’s New Document Search User Interface

Sentieo users are now able to try the beta release of our brand new Document Search user interface (UI). While it may seem familiar, the UI has been rebuilt using modern tech such as React. This new build enables significantly less memory consumption and greater responsiveness across the board. Plus, we’ve extended Sentieo’s sentiment and natural language processing capabilities to include a host of new AI-powered features detailed here.

AI-Powered Features

 

Smart Summary™

With Sentieo’s new, ML-driven transcript Smart Summary™, we enable analysts to pick up the important information across multiple classifications, such as guidance and KPIs.

To trigger Smart Summary™, users can simply click the “brain” icon on any transcript. To learn more about Smart Summary™, read this post.

 

 

Query Autocomplete

Our data science team has built an algorithm to identify key terms and topics for all companies within our database. Similar to a Google search, when a user starts typing inside of the query box, Sentieo will automatically populate suggested terms for you based on actual terms used by the company. This makes it much easier to find exactly the keywords you are looking for. Autocomplete intelligently populates based on which tickers and watchlists you have selected in the ticker box.

 

Suggested Synonyms

We are very excited to announce a giant leap forward for our Synonyms system. We have been using an NLP + machine learning-based algorithm for the last couple years to help us internally define and expand our deep synonym library. We are now very excited to open up that system to Sentieo users with our new Suggested Synonyms feature.

Using Suggested Synonyms, Sentieo is able to parse your query and automatically suggest possible synonyms to expand your search. While all of these synonyms may not be pertinent to your search, the function lets you quickly decide which you would like to add to your search. Just click the suggested synonym and it will automatically be added to your search query:

General Document Search Improvements

The Sources Selector

When we looked at usage analytics, we realized that the Document Type filter was the most used filter by a large margin. To make this filter more accessible and easier to use, we’ve made it a part of the main search interface. Additionally, we have renamed the filter to “Sources” to more accurately represent the functionality.

We have also added a quick “only” selector to the right of each source that lets users quickly focus on a single source. 

Additionally, click the > icon at the far right to load up the more granular filters:

All additional filtering is now available with the Filter Button:

 

Configure and Control Your Results Pane

We’ve added the ability for users to easily resize the results panel. Simply drag the divider or use the maximize/minimize button. As you expand, the application will automatically switch to a table view when enough space is present. 

While in the table view, you can also control what columns are visible. Currently, the list of options is limited but the Sentieo team will be adding to this over the coming months. 

For smaller screens, we’ve also added the option to toggle between split pane and results-only views.

 

Company Summary

If you run a search with a ticker but without a query, the Sentieo initial results page shows you all company documents, as well as a company summary and share price performance. We have taken some key metrics and links out of our EDT Summary and provided them within Document Search. Additionally, users can see a historical stock price graph in the company summary.

 

Improved Document Viewer

We’ve made serious upgrades to our Document Viewer as well. You will notice faster load times for documents across the board. Additionally, we have relocated the highlights and the index panel to the right of the document.

We have also relocated the Redlining function to the top right of the document viewer.

 

To try the new Document Search interface for yourself, please log in, or get in touch!

 

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Disrupting Transcripts: Applying Sentieo’s Smart Summary™ During Earnings Season

After last week’s release of Sentieo’s machine learning-based Smart Summary™ for transcriptsthis week we will be highlighting exactly how to use this powerful new feature to ensure that you don’t miss important information this earnings season, and that you also save time.  

The Smart Summary™ tool classifies a document’s language based on several categories such as Guidance, KPIs, and company-specific key terms (like product names) into a convenient, time-saving format. Further, it applies an NLP sentiment filter to highlight positive and negative language. 

Smart Summary™ is the latest machine learning and natural language processing-based tool released by Sentieo this year. We’ve also released a dynamic synonym suggestions feature for Document Search based on our own, internal synonym search tool. Additionally, we added company-specific autocomplete suggestions to our search. And earlier this year, we rolled out Table Explorer, a flexible and auditable tool that identifies, chains and visualizes tables in SEC filings. 

During the next few days, we will be selecting and publishing our highlights from current transcripts to show how effective Smart Summary™ can be in your research workflow. (Stay tuned).

For example, if we look at the transcript from the Goldman Sachs call last week (below), we can pick up essential corporate and macro information (color-coded as needed), under the Financials and KPIs classification. Scrolling down in the Smart Summary™, we see record assets under supervision: good news in green, versus slower Chinese GDP growth in red, a couple of paragraphs down. The full context is right there as well. 

In addition to viewing by Classification group, users can quickly scroll through all positive and negative highlights, regardless of Classification. 

In the Key Terms field, we catch up on Marcus, Goldman’s growing consumer banking franchise. We can see a mix of positive and neutral statements. 

For the next few days, the blog will be highlighting exactly how we’re applying this powerful new functionality. To try it yourself, please get in touch

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