Filings follow the ebb and flow of waves, in a figurative sense. We know the cadence of every filing season - the timing of when the companies announce their earnings, conduct the earnings/investor calls, and then file their 10-Q or 10-K with the SEC. If you’re an investor or analyst, you mark your calendars and prioritize your investment analyses based on the companies you cover.
But, what if you’re a data aggregator, like us as idaciti, where you have to ingest the data of every single company?
We don’t have the luxury of prioritizing, especially when the market is eager to ingest the financial data as soon as it is released. For us, all companies are created equally. Our goal is to deliver that data to the market with the same level of importance if you were Apple or ‘Emily's Chocolate Factory.’
We recently analyzed the patterns of both the preliminary filings (Earnings Releases) and final filings (10-K, 20-F, 10-Q) by companies for 2020 Q1 and Q2. Not surprisingly, the filings tend to cluster within a 1-2-week window for each quarter. From the graph below, you can see that there are certain days in that 1-2 week window when more than 25% of public companies announce their earnings and file their final financial reports.
When we took a close look at one specific peak day, we saw that the peak filing hours are near the end of the day. We have observed similar patterns for other peak filing days as well.
Intraday Data Delivery Made Possible by XBRL
This tsunami of filings can overwhelm any investor or analyst, especially if they are analyzing many companies. Suppose you’re a data aggregator who does not leverage the latest advancements in digital technology and structured data (i.e., XBRL). In that case, you may be forced to prioritize collecting financial data based on the relative ‘importance’ of a company to the market. So, the reality may be that not all company data are handled equally - some get delivered more quickly to the market than others.
At idaciti, we leverage structured data, machine learning, and our proprietary technology to process ALL COMPANIES with the same process and speed. Whether it is a large Fortune 50 company or a small-cap company, we deliver the normalized data to investors and analysts within minutes of the company filing being made available by the SEC.
Democratization of Financial Data
Advocates of the XBRL standard have long hailed the ‘democratization of financial data’ as the holy grail for the movement. We, of course, believe wholeheartedly in that. However, we also think that this only gets us part of the way there. To truly democratize access to financial data, we also believe that all the necessary metadata and traceback of each data point back to the source location are essential for both credibility and transparency.
This is how we are different.
Not only do we treat all companies as equals, but we also treat all data as equal. We provide transparency to each data point, whether on the face statement or buried in the footnotes to the financials — all within minutes of the company filing with the SEC.
Dealing with the financial data tsunami requires XBRL data and technology as complementary solutions. Trying to survive this onslaught with one solution but not the other is like swimming against the tide.
We, at idaciti, have the winning combination to help you face that wave.