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

 

Merck Q3 Transcript Smart Summary™ – Keytruda Growth Continues, But Pricing Pressure Looms

As a part of our earnings season coverage, we’re continuing to use Sentieo’s transcript Smart Summary™ to highlight selected reporting companies. Smart Summary™ applies machine learning and natural language processing to create a more efficient and a more repeatable process for transcript analysis. Yesterday, we highlighted Beyond Meat (Nasdaq:BYND), where we definitely went beyond the meat of the matter and into the details.

In this piece, we will take a quick look at pharmaceutical giant Merck. We are using the newly-released email push notification functionality for the Smart Summary™ transcript, which provides users with both the summary and the full transcript in a single PDF. We’ll go through parts of the Smart Summary™ PDF for Merck, but you can view the full report here.

The key headline from the MRK release was that the company increased its 2019 non-GAAP EPS guidance. We can see this clearly in the Guidance section of the summary. 

In the KPI section, we see several interesting tidbits: tax rate, Animal Health division data, plus comments on Keytruda, an important drug. 


The pricing pressure comment that was ranked high in Guidance was also notably ranked high in the Products/Markets section as well.

On the Legal/Regulatory front, we see comments around drug approvals. 

In addition to the ML-based classification, we also apply NLP (Natural Language Processing) in three dimensions: sentiment (positive/negative), deflection (language associated with “deflection”), as well as keyword surfacing. 

In Merck’s transcript, we see a lot of highly-scored positive sentences (100 out of 100). 

On the negative side, we see the pricing pressures in 2020 comments (already picked up and classified by the ML layer) marked as mostly negative.

We can also see that pricing is the most negative analyst question as well!

The top keyword based on our algorithmic keyword surfacing is Keytruda, a relatively new but popular drug.

The second and third keywords are also product related. Below we see an active discussion around Gardasil capacity.

And the focus on Keytruda and Gardasil is justified. Using Sentieo’s Table Explorer table chaining tool on the 8-K filing, we can see that both drugs continue to grow, with Keytruda now approaching 30% of revenues. 

Watch the video below to see it in action:

View the full report on Merck here, and try using Smart Summary™ for yourself by signing up for access for Sentieo.

“Getting To The Meat” of the Beyond Meat (Nasdaq: BYND) Earnings Call

Beyond Meat (Nasdaq: BYND) reports triple-digit revenue growth,1600 bps margin improvement, ups FY guidance — all of which were picked up and highlighted by Sentieo’s ML/NLP-based transcript Smart Summary.™  

Sentieo’s transcript Smart Summary™ uses machine learning and natural language processing to help you go through transcripts faster, highlight important information you might have missed, objectively quantify sentiment and deflection statements, and surface keywords and keyword trends. All of this happens at the click of a button on our platform, and for clients with enabled alerts, also via email.  

You no longer have to read transcripts chronologically; you can sort the document based on classifications, as well as “x-ray” for trending (and disappearing!) keywords. 

Today we will highlight BYND’s results from Monday, October 28, 2019, as we saw them in our email alert with the PDF document. 

Using machine learning, we trained a tool to read and classify sentences in transcripts in several buckets, including Guidance, KPIs, and more. 

Right on top, we can see the robust guidance increase by the fast-growing meat alternative company. 

We can see the current quarter results’ highlights in the KPIs section:

The massive 1,600 bps gross margin expansion was picked up there, too. 

Our NLP processing picks up Deflection as well as Positive/Negative sentiment. We can see some softly optimistic language under Deflection. 

The Negative sentiment highlights include competitive pressure from incumbents as well as lower volume in newer points of distribution. 

One keyword that stood out is McDonald’s: a high profile restaurant partner that is running a very limited test only in Canada. We see the analyst being very inquisitive about it. 

To view the full Smart Summary PDF, search for the transcript in Sentieo and click on the Smart Summary icon. If you don’t have access to Sentieo yet, view the full summary here.

You can also check out the video below for a Sentieo walkthrough!

Stay tuned for our next earnings Smart Summary™ tomorrow!

Want to try Smart Summary™ for yourself? Get started with a free trial.

Introducing Smart Summary™ Enhancements: PDF Report Email Alerts, Highlighting, and Sentiment/Deflection Charts

In our last release, we introduced Smart Summary™ — a whole new way to read transcripts. 

Our latest release builds on our transcript sentiment tool with Smart Summary™ enhancements to help you save time and get more insights, especially during earnings season.

 

 

 

Download a PDF Report 

To get a Smart Summary PDF report as you’re researching in Sentieo, click on the PDF icon in the top right-hand corner of the Smart Summary™ panel to immediately download a PDF of the report.

 

 

 

 

 

 

 

Check Out Your Report

Your PDF report will include language classifications like Guidance, KPIs, Deflection, and much more.

 

Get Smart Summary Reports Sent Straight to Your Inbox

Now you can automatically receive a Smart Summary™ PDF report in your email inbox when you schedule alerts for a single company or a group of companies in a saved watchlist. Don’t miss a beat during earnings season!

 

Sentiment & Deflection Charts

We also added two new, at-a-glance charts to the Smart Summary™ panel.

One visualizes the trends of Management Sentiment, Analyst Sentiment, and the “spread” between them. (See left screenshot below).

The second chart shows the company’s Deflection score going back 2 years. (See screenshot on right).

Use these visual cues to get quick insights into the companies that you cover.

 

Highlight and Tag Transcript Content

Now you can highlight and add tags to transcript content while in Smart Summary™. Highlighted text is automatically tagged to the company ticker for easy surfacing in the future.

You’ll never lose track of your highlights, annotations, and notes, which are all centralized in your Sentieo Notebook.

 

Video Walkthrough

Our Head of Research runs through how to get the most insights out of Smart Summary:

Start saving time and finding new insights today with a free trial of Sentieo!