It's time now for the 360 round. Let's bring in our panel to discuss earnings from Disney. Joining us now, James Trinowski, head of emerging tech at Consumer Choice Center, and Matt Doljen, the senior equity analyst at Morning Star.James, love to just start with your thoughts on this report. >> Yeah, thank you for having me. I think that it's a mixed bag for Disney because on one end, I think that we've seen some really promising stuff.Their model of direct to consumer, of growing their subscriber rate, uh, ...

Welcome back to Money Movers. A major shakeup today at Novo Nordisk. The chairman and vice chair along with five independent board members, all not standing for reelection at the company's extraordinary general meeting in November.This follows Novo shakeup of its top post back in May when the company ousted CEO and appointed a new CEO in August. Novo Nordis just wrapping up its investor conference call today. HSBC's Rajeskumar was on the call and joined us with his reaction.Uh I I'm just making a list of al ...

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved a revenue growth of 26% to $509 million, generated adjusted EBITDA of $122 million, and free cash flow of $99 million, surpassing the entire free cash flow delivered in 2023 [4][30] - The adjusted diluted earnings per share for Q2 was $0.92, exceeding the guidance of $0.85 to $0.89 [29] - Gross margin expanded to 72.3%, exceeding guidance of 70.5% [28] Business Line Data and Key Metrics Changes - The company reported double-digit online growth in both its brands, Il Makiage and Spoiled Child, with Il Makiage expected to reach $1 billion in revenue by 2028 [12][24] - Spoiled Child is projected to cross $200 million in revenue this year, having launched only three years ago [13][42] Market Data and Key Metrics Changes - International sales represented approximately 15% of total net revenue, with a growth of over 40% in the first half of 2025, amounting to around $85 million [25][62] - The company is focusing on expanding its international presence, particularly in markets like the UK, Germany, Canada, Australia, and Israel, where it aims to replicate its U.S. success [27][62] Company Strategy and Development Direction - The company aims to become one of the largest beauty companies globally, with a focus on expanding its product offerings into healthcare, starting with dermatology [5][15] - Investments are being made in technology and new brands, with a strong emphasis on innovation and consumer demand for high-efficacy products [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record-breaking year in 2025, with expected net revenue between $799 million and $804 million, representing a year-over-year growth of 23% to 24% [32] - The company plans to front-load investments in 2026, which may impact EBITDA margins in the first half of the year but is expected to maintain a long-term growth algorithm of 20% revenue growth and 20% adjusted EBITDA margin [34] Other Important Information - The company successfully issued its first convertible exchangeable note, upsized to $600 million, which significantly increased its cash position to $815 million [31] - The company is preparing for the launch of Brand Three, which will enter the medical-grade space, focusing on dermatology and offering both OTC and prescription products [13][15] Q&A Session Summary Question: What is driving the sequential compression in gross margin for Q3? - Management explained that gross margin is not a primary metric managed by teams, who focus on contribution margin, and that seasonality and lower revenue dollars in Q3 and Q4 contribute to the compression [39][40] Question: Will the company constrain growth on existing brands to manage future growth? - Management confirmed that they often constrain growth to ensure sustainable long-term growth, maintaining a commitment to 20% revenue growth and 20% adjusted EBITDA margin [51][52] Question: What are the investment plans for Brand Three and expected returns? - Management indicated that significant investments are being made in new brands and technology, with expectations of substantial future returns similar to past successful launches [56][57] Question: What are the growth drivers for international markets? - Management highlighted that international markets could be as large as the U.S. business, with strong growth in established markets and potential in new testing markets [62] Question: How will the go-to-market strategy differ for Brand Three? - Management stated that while the strategy will leverage existing technology and user base, it will also incorporate personalized treatments developed over two years [71][72] Question: What long-term revenue streams are anticipated from Brand Three? - Management outlined that Brand Three will operate as a telehealth platform with medical-grade products, focusing on compliance and leveraging existing user data for product development [78][80]

Financial Data and Key Metrics Changes - Second quarter revenue was $59 million, down approximately 18.3% year over year and 5.4% sequentially, reflecting continued softness in core casino and casual games [15] - Adjusted EBITDA for the quarter was $10.7 million, down 24% year over year and 14.2% sequentially, indicating limited flow through due to revenue softness [15] - DAU was 2.3 million, down from 2.6 million in the first quarter and 3.2 million in the previous year [16] - MAU was 10 million, down from 11.4 million in the first quarter [16] - ARPDAU was $0.28, up slightly from $0.26 last quarter and $0.25 a year ago, reflecting stronger monetization [16] Business Line Data and Key Metrics Changes - The core social casino portfolio continued to soften, with ongoing declines in DAU across most titles, partially offset by stronger unit level monetization in Mykonami [10] - Direct to consumer revenue for Q2 was $6.7 million, representing 13.9% of total in-app purchase revenue, up 107% year over year and 34% sequentially [10][17] - The casual portfolio remains under pressure due to challenging market dynamics, with a focus on product updates to improve engagement and retention [11] Market Data and Key Metrics Changes - The market is experiencing a rapid rise in social casinos leveraging sweepstakes mechanics, reshaping player behavior and monetization [4] - The company is seeing clear evidence that its sweepstakes proposition resonates with players, with player retention, engagement, and monetization trending positively [6] Company Strategy and Development Direction - The company launched a reinvention program last year to adapt to market changes, focusing on developing sweepstakes capabilities, expanding direct to consumer sales, and modernizing core games [5][18] - A phased approach is being taken to scale the sweepstakes initiative, with plans to be live across all eligible U.S. states later this year [7] - The company is exploring strategic acquisitions to accelerate momentum and position itself for market leadership in the sweepstakes category [8][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the core business but remains confident in the strategic steps being taken to adapt and evolve [18] - The company is not changing its full-year revenue and adjusted EBITDA guidance despite pacing below expectations, as it continues to evaluate investments and market dynamics [17] Other Important Information - The balance sheet remains strong, with approximately $112.9 million in cash and no debt, providing strategic latitude for capital deployment [13] - The company is committed to building a stronger, more diversified foundation to drive renewed momentum in the future [18] Q&A Session Summary Question: Can you split DAU and MAU declines between social casino and casual games? - Management indicated that declines were substantial in both categories, with more dramatic impacts in the casual space due to reduced user acquisition investments [24] Question: Any quantitative KPIs on sweepstakes performance? - Management reported positive improvements across key metrics such as retention and conversion rates, feeling optimistic about the progress made [27] Question: Guidance for Q3 expectations? - Management stated that Q3 is not expected to differ significantly from Q2, focusing on executing initiatives to restore momentum [31] Question: Any technical aspects remaining for the sweepstakes platform? - All core functionality is in place, with ongoing refinements and testing of marketing approaches to ensure effective scaling [36] Question: What types of strategic acquisitions are being considered? - The company is open to meaningful M&A opportunities to bolster efforts in the sweepstakes category and gain market share [40] Question: How does the company manage regulatory pressures regarding sweepstakes? - Management evaluates regulatory risks on a state-by-state basis and adjusts capital deployment accordingly, aiming to legitimize the sweepstakes opportunity [52] Question: Is there enough cash to manage through the transition? - Management confirmed a strong cash position, allowing for aggressive investment in growth initiatives [61]

Financial Performance - Levi Strauss reported a phenomenal quarter with 9% organic sales growth, exceeding estimates [1][3] - The company's earnings beat expectations by $0.13 [1] - Management raised the full-year forecast despite tariff impacts [2] - The company is aiming to become a $10 billion stronger, more profitable entity [5] Strategic Initiatives - Levi Strauss is pivoting to become DTC (Direct-to-Consumer) first and a head-to-toe lifestyle retailer rooted in denim [4] - The company is focusing and rationalizing SKUs (Stock Keeping Units), which are down in the mid-teens [7][8] - Driving for more commonality in assortment globally, increasing from single digits to approximately 30%, creating supply chain efficiencies [8] Market Performance - International business is up 10%, with women's outperforming with double-digit growth [5] - Tops business, a key part of lifestyle expansion, is up 16% [6] - European numbers show incredible organic growth of 14% to 15% [9] Tariff Impact & Mitigation - The company has assumed tariffs of 30% from China and 10% from the rest of the world in its guidance [19] - The net impact of tariffs is estimated to be around 20 basis points, or a couple of pennies on EPS [19] - Mitigation strategies include leveraging long-standing vendor relationships, increasing volume, modest surgical pricing, and full-price selling [19][20] Brand & Marketing - Focuses on social media, music, and sports to drive relevancy with younger consumers [13] - Collaborations with brands like Nike and designers like Sakai are driving brand heat [15][16]

Financial Performance - Levi Strauss adjusted earnings per share beat expectations by 22 cents [1] - Levi Strauss revenues exceeded expectations at 145 billion dollars [1] - Operating margin reached 75%, surpassing the street's expectation of 6% [2] - Gross margin slightly exceeded analyst expectations at 626% [2] Business Strategy & Growth - Direct-to-consumer revenues increased by 11%, now accounting for 50% of net revenues [2] - Wholesale revenues increased by 3% [3] Future Outlook - The company is raising its full-year top and bottom-line guidance, incorporating the impact of tariffs [3] - The company assumes tariffs will remain at approximately 30% on China and 10% for the rest of the world [3] - The company is raising its dividend to 14 cents per share [3] Market Reaction - Shares are moving higher by almost 85% in response to Levi's results [3]