Evidence that AJX and Deere are in sync on precision Ag.
I have read and digested the AgJunction Inc. Q2 2021 Results - Earnings Call Transcript (Aug. 13, 2021), and the Deere & Co. Q3 2021 Results - Earnings Call Transcript (Aug. 20, 2021)
The transcripts contained several almost identical messages:
- The transference of technology from Ag to construction is the clear path forward and is taking place full speed ahead.
- Collecting and connecting data to build a diverse stream of recurring revenue will be an important business for both companies..
- There is a need for speed. "...the opportunity is big in the space, and it's moving fast." (Deere)
- Considering speed to market, adoption rates, and profitability, in precision Ag the conclusion is that opportunities are best addressed near term by enabling a retrofit business model.
Deere is pushing the envelope on all these fronts; AgJunction is clearly up to speed and ahead in some areas. At this point, it matters little who is ahead.
What matters most for AgJunction is that Deere's competitors will have to prepare for battle, and when they make the push, we will see that AgJunction is fully capable of being their preferred arms merchant.
Indications are that what is happening will add to Deere's growth incrementally and AgJunction's by leaps and bounds.
I have read and digested the AgJunction Inc. Q2 2021 Results - Earnings Call Transcript (Aug. 13, 2021), and the Deere & Co. Q3 2021 Results - Earnings Call Transcript (Aug. 20, 2021)
The transcripts contained several almost identical messages:
- The transference of technology from Ag to construction is the clear path forward and is taking place full speed ahead.
- Collecting and connecting data to build a diverse stream of recurring revenue will be an important business for both companies..
- There is a need for speed. "...the opportunity is big in the space, and it's moving fast." (Deere)
- Considering speed to market, adoption rates, and profitability, in precision Ag the conclusion is that opportunities are best addressed near term by adopting a Retrofit Business Model.
Deere is pushing the envelope on all these fronts; AgJunction is clearly up to speed and ahead in some areas. At this point, it matters little who is ahead. What matters is that Deere's competitors will have to prepare for battle, and when they make the push, AgJunction is fully capable of being their preferred arms merchant.
Indications are that what is happening will add to Deere's growth incrementally and AgJunction's by leaps and bounds.