Isobar and alpha-DNA are out with their latest “TopLine” Digital Strength Index report.
As you would imagine, digitally stronger companies are healthier companies in many respects, and the report nicely sizes up the benefits to companies that undergo successful digital transformation.
It takes a deep dive into the subject, examining 10,000 data points across the top 1,000 companies in the U.S.
Some key findings from this report include:
Companies in the top decile beat quarterly earnings estimates 65% of the time over the past five years. The bottom decile? Just 52.7% of the time.
Of the 11 industry sectors examined in the report, consumer discretionary and information technology lead in digital strength.
The long-term impact of being a digital “laggard” is devastating, with a 14.9% loss in shareholder value over a three-year period -- a decline that increases with time, per the report.
When compared to last year’s report, the separation between the top 30 companies and the bottom 30 has increased across all sectors except Healthcare. There is also a 22% swing in revenue performance between digital leaders and laggards.
There is rich detail in the nearly 40-page report and you can access it here.