The Phenomenon of “Double-Click” in Earnings Calls
Earnings calls are an essential tool for investors and analysts to assess the financial performance of companies. In these calls, executives present insights into the company’s financial performance and future growth strategy, and analysts have the opportunity to pose questions to gain a better understanding of the business. However, a new trend has emerged in these discussions, where analysts have started using the phrase “double click” to probe deeper into specific areas they wish to clarify further.
The term “double click” comes from the action of double-clicking a mouse button, which opens a new window with more detail on the selected item. In earnings calls, analysts use this phrase as a metaphor to signify their desire to delve deeper into a particular area of the business or financial statements. This article explores the growing trend of using “double click” in earnings calls and how companies respond to it.
What Does “Double Click” Mean in Earnings Calls?
In earnings calls, “double click” is a metaphor used to indicate that the analyst or investor wants to explore a particular topic in more detail. When they use this phrase, they are asking executives to provide additional information, clarify or expand on a point. It is a way to “drill down” into certain areas of the company’s business operations or financial statements that the analyst finds compelling or potentially problematic.
The use of “double click” is becoming increasingly prevalent in earnings calls, with analysts using it to gain insights into topics ranging from a company’s growth strategy, revenue streams, cost structures, competitive landscape, and regulatory issues. The phrase has become a shorthand for probing deeper into specific areas and seeking additional information from executives.
Examples of “Double Click” in Earnings Calls
The following examples illustrate how analysts are using “double click” in earnings calls and what insights they seek.
On cloud verticalization:“Satya, in his prepared remarks, talked about an increase in the verticalization of Azure. Can we double click on that a bit more?”
On the exceptional growth in Europe:“[C]It’s curious to hear or maybe if you can double click on what is driving the exceptional growth here in Europe.”
About new customers:”Just double click on the customers coming to Salesforce and engage with you about some of the new stuff we’ll be hearing in June.”
These are just a few examples of how analysts are using “double click” to get more information from executives. The use of this phrase has become so prevalent that it is becoming almost a cliché in earnings calls.
Why are Analysts Using “Double Click” More Frequently?
Analysts are using “double click” more frequently for several reasons. First, it allows them to get more detailed information from executives on specific topics. This is particularly important in complex industries or when companies are undergoing significant changes in their business operations or financial performance.
Second, it allows analysts to ask more sophisticated and nuanced questions that go beyond the surface-level information provided by executives. By using “double click”, analysts can frame their questions in a way that demonstrates their in-depth knowledge of the company and industry.
Third, it provides a shorthand for analysts to signal that they want to probe deeper into a particular issue. It saves time and avoids ambiguity, as executives understand exactly what information the analysts seek.
How Do Companies Respond to “Double Click” Questions?
Companies have adapted to the increasing use of “double click” by analysts in earnings calls. Some executives have started using the phrase themselves, indicating that they are aware of the trend and understand what the analysts are asking for. This shows that companies are paying attention to analyst questions and are responsive to their needs.
However, some executives may feel uncomfortable when asked to “double click” as it could signal a lack of transparency or an attempt to evade a question. Executives must strike a balance between providing enough information to satisfy analysts’ questions without revealing too much sensitive information.
Conclusion
The use of “double click” in earnings calls is a growing trend that shows no signs of slowing down. Analysts use this phrase to probe deeper into specific areas of a company’s financial or business operations, seeking more detailed information from executives. Companies have adapted to this trend, indicating that they are responsive to analysts’ needs. However, executives must balance transparency with protecting sensitive company information when answering these types of questions.
Additional Piece
As the use of “double click” in earnings calls becomes more prevalent in the financial industry, it highlights the changing nature of investor relations. In the past, companies have been guarded in their interactions with investors and analysts. They have provided just enough information to meet regulatory requirements, without revealing more than they needed to.
However, investor expectations have evolved, and companies are now seeking to build long-term relationships with investors by providing more transparency and clarity on their operations. In this context, the use of “double click” can be seen as a natural evolution of the investor-company relationship.
By using “double click” to probe deeper into specific areas of a company’s business or financial operations, analysts signal their desire for more transparency and accountability. They demonstrate their knowledge of the company and the industry and show that they are not satisfied with vague or generic answers.
For companies, responding to “double click” questions can be a way to build trust with investors and analysts. By providing detailed and transparent responses to these questions, companies can demonstrate their expertise and commitment to long-term growth. It can also help them to identify potential challenges and opportunities proactively, which can be beneficial for both the company and its investors.
In conclusion, the trend of using “double click” in earnings calls is a positive development for the financial industry. It reflects the growing importance of transparency, accountability, and long-term relationships between companies, investors, and analysts. As investor expectations continue to evolve, companies that adapt to this changing landscape are likely to be the most successful in the long term.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
A specter lurks in the profit calls: the double-click specter.
If you haven’t come across this phrase before, it’s possible that, as a naive and tiny baby that you are, you think that it’s just interacting with software.
And, of course, a “double-click” search on the AlphaSense analytics platform also turns up some tech demos (although not many, based on Alphaville’s half-baked QA process).
But the truth is far more sinister.
On cloud verticalization:
“Satya, in his prepared remarks, talked about an increase in the verticalization of Azure. Can we double click on that a bit more?” Gregg Moskowitz, Mizuho, on Microsoft’s April 2023 call
On the exceptional growth in Europe:
“[C]It’s curious to hear or maybe if you can double click on what is driving the exceptional growth here in Europe.” JPMorgan’s Samik Chatterjee on Apple’s April 2023 call.
About new customers:
“Just double click on the customers coming to Salesforce and engage with you about some of the new stuff we’ll be hearing in June.” Piper Sandler’s Brent Bracelin on the May 2023 Salesforce call.
About the hold comment:
“I just want to double click on that hold comment you said.” William Blair’s Jack Roberge at Adobe’s March 2023 call.
About security:
“And then secondly, if you could just double-click security.” Matthew Nikman of Deutsche Bank on the May 2023 Cisco call.
On offers:
“Maybe just elaborate on some of the comments that you just made, especially in the company around deals and longevity of deals or removing or pushing new deals, just double click on that.” Morgan Stanley’s Erik Woodring on HP’s March 2023 call.
On the speaker’s own questions:
“Hello guys, thank you very much for answering my questions. So a pair that I want to double click on.” Stan Zlotsky of Morgan Stanley on the October 2020 Zendesk call.
On scrutiny and sales cycles:
“In your prepared remarks, you mentioned that the quarter saw increased deal scrutiny and longer sales cycles, can you just double click on that comment?” Scotiabank’s Patrick Colville in the May 2023 CrowdStrike call.
About the integration of that business:
“Maybe if we could double click on where we are in terms of integrating that business?” William Blair’s Matt Stotler on Ooma’s March 2023 call.
About gross margin:
“George, I guess you wanted to double click on gross margin.” UBS’s Timothy Arcuri on Intel’s October 2020 call.
In the cloud infrastructure:
“I guess Larry, can you double click on OCI? ..” Evercore’s Stewart Kirk Materne III on Oracle’s September 2021 call.
On Software and Services margins:
“So I’m hoping maybe you can touch on that dynamic, that changing composition of growth and dollar earnings leverage, and double-click where you see software and services margins moving in 2020.” Raymond James’ Adam Tindle on Motorola’s February 2020 callout.
I took the words out of my mouth
Digging more specifically: have analysts picked up a new favorite visual tick in “just wanting to [want/wanted] double click”? and can dethrone the king of clichés call?
In that April composition:
“I just wanted to double click on that 3 percent compensation from April.” George Doumet, pf Scotiabank, on Canadian Tire’s May 2023 call.
About orientation:
“I just wanted to double click the guide.” Kevin Kumar of Goldman Sachs at the Paycor HCM May 2023 call.
About the fundraiser:
“Maybe he just wanted to double click on the fundraiser and really this quarter’s mix.” JPMorgan’s Alexander Bernstein on the May 2023 GCM Grosvenor call.
About security:
“I just want to double click, maybe in security.” Rudy Kessinger of DA Davidson & Co on Akamai’s May 2023 call.
On the momentum with partners:
“I just wanted to double click on maybe where you’re seeing momentum with partners in terms of reaching more customers” Truist’s Connor Passarella on the April 2023 SolarWinds call.
About inorganic growth:
“And then I just wanted to double click on the inorganic growth opportunities as well.” Michael Falco of JMP Securities on the March 2023 Marketwise call.
In product packages:
“And then I just wanted to double click on the product bundles that performed better than expected during the quarter.” Jacob Roberge of William Blair on DocuSign’s March 2023 call.
About business strategy:
“I just wanted to double click on some of the investments you’re making around business strategy.” Ari Terjanian of Cleveland Research on Atlassian’s February 2023 call.
About the competitive environment:
“I just want to double click on the competitive environment.” William Blair’s Kamil Mielczarek on the November 2022 Elastic call.
On revenue growth factors:
“So I just wanted to double click on the factors that we saw that influenced revenue growth this quarter.” Piper Sandler’s Mauro Molina on the November 2022 Expensify call.
On cancellation trends:
“So I just wanted to double click on cancellation trends.” Brendan Luecke of Sanford C Bernstein at Rockwell Automation’s November 2022 call.
In that efficiency component:
“I just wanted to double click on that efficiency component.” Jason Michael Kreyer, Craig-Hallum, on the August 2022 LiveRamp call.
About Europe:
“I just want to lick twice in Europe.” Devin Au, KeyBanc, on HireRight’s August 2022 call.
In inventory:
“I just wanted to double click on the inventory a bit more.” Lauren Cassel Schenk, Morgan Stanley, in the August 2022 Revolve call.
About verification in China:
“I just want to double click on verification in China.” Devin Au (again), KeyBanc, on the April 2022 Cadence call.
On the opportunity to improve the mix:
“I just wanted to double click on the opportunity to improve the combination with the change to facilities.” Andrea Teixeira, JPMorgan, in Constellation Brands’ April 2022 call.
Other reading
— How I lost my 25-year battle against corporate bullshit (FOOT)
— How to Clean Up Vomit: 12 Steps (WikiHow)
https://www.ft.com/content/f9696b26-e322-40b9-ba5c-af726a55879c
—————————————————-