AJX & DE | RETROFIT Business Model | Out front w/same tune. Deere & Co. (DE) Q3 2021 Results - Earnings Call Transcript
Aug. 20, 2021
Kristen E. Owen - Oppenheimer & Co. Inc., Research Division - Associate
Wanted to follow up on some of the TAM and take rates in precision ag. And noted during the quarter that you made some changes to the John Deere-linked business model. Just wondering if you can discuss some of the thought process behind that shift.
And Jahmy, I know you said it's too early to commit to a single autonomy business model, but maybe give us a broader sense of the foundation of recurring revenue
that you have today and how we should think about that evolving across the portfolio. Jahmy J. Hindman - Deere & Company - CTO
Yes, Kristen, business model question first.
I think the reality is in the technology space and autonomy, in particular, that the tech is going to spin faster than the base machine. So we have to be able to provide a business model that allows us and allows customers to take advantage of that latest tech on existing machines and relatively new machines in the fleet, not just brand-new whole goods coming out of the factory. So that's one of the factors that we're taking into account from a business model perspective, just given the rates of change, the disparity and change from a technology perspective on the base machine versus the tech that enables autonomy. Your first question was, Kristen?
AgJunction Inc. (AJXGF) CEO Dr. M. Brett McMickell on Q2 2021 Results - Earnings Call Transcript
Aug. 13, 2021
"And our -- AgJunction has a comprehensive portfolio in the autonomies space from one of the pioneers in the autosteering, which is foundational for being autonomous is you've got to be able to drive up the vehicle and control the vehicle safely. And then all of the other elements that go into autonomy, AgJunction has that comprehensive portfolio today. And then through our modularization approach, we've -- as I've expressed on other earnings calls, we're focused on helping vehicle -- OEMs and farmers through our VAR channel integrate this automation technology and autonomy technology on their vehicles. So we stayed away from developing our own vehicle, let the vehicle manufacturers do what they do best, and that's develop rugged vehicles for the farm or for off-road applications, and then provide them the automation. And we've also looked at this from a retrofit kit.
And so you can see that our partnership with Komatsu is directly aligned with our strategy and providing a retrofit kit. And by providing the retrofit kit, we can address - quickly address different platforms and provide automation going forward. So the work that we're doing with our OEMs, we're building and developing and improving our modules, and those can be directly used as we extend into different vehicles. So AgJunction has got an incredible patented, protected, comprehensive portfolio. We're already focused on the retrofit."
"And we are --
we've got partnerships with leading OEMs. So I think we're very well positioned."