Automatic Data Processing, Inc. (NASDAQ:ADP) Citi's 2024 Global TMT Conference September 5, 2024 10:50 AM ET Company Participants Joe DeSilva - Executive Vice President, Global Sales Conference Call Participants Peter Christiansen - Citi Investment Research Peter Christiansen Good morning, everyone. My name is Pete Christiansen. I'm with Citi's Equity Research Department covering info services, HR, HCM services, fintech and crypto all have been everywhere here. But great to have Joe DeSilva here. EVP of Glo ...

Summary of Intuitive Surgical, Inc. (NASDAQ:ISRG) Conference Call Company Overview - **Company**: Intuitive Surgical, Inc. - **Event**: Wells Fargo 2024 Healthcare Conference - **Date**: September 5, 2024 - **Participants**: Jamie Samath (CFO), Brandon Lamm (Investor Relations), Larry Biegelsen (Medical Device Analyst, Wells Fargo) Key Points Industry and Market Dynamics - **Market Performance**: In Q2, Intuitive Surgical placed 341 systems globally, representing an 18% increase year-over-year, with 70 of those being da Vinci 5 systems in the U.S. [11][12] - **European Market**: System placements in Europe were lower than the previous year due to government health budget pressures, particularly in Germany and the U.K. [12] - **China Market**: The company noted a dynamic environment in China, with placements affected by anti-corruption initiatives and increased domestic competition. [29][30] Product Launch and Technology - **da Vinci 5 System**: The da Vinci 5 system has received positive feedback from experienced surgeons, particularly regarding its integration, autonomy, and new technologies like Force Feedback and Case Insights. [3][16] - **Future Upgrades**: Planned software and hardware upgrades include integrating Hub technology into the Vision Tower and enhancing the surgeon console with skill simulator capabilities. [7][8] - **Trade-in Strategy**: The company plans to start accepting trade-ins for da Vinci 5 around mid-2025, allowing customers to evaluate their programs based on economic benefits. [14] Financial Performance - **Gross Margin**: Q2 gross margin was reported at 70%, exceeding expectations, but is projected to decrease in the second half of 2024 due to increased depreciation expenses and a shift in revenue mix towards new products with lower margins. [42][44] - **ASP Trends**: Average Selling Prices (ASPs) were up about 4% year-over-year, but future ASP increases may be affected by the mix of outright purchases versus leases. [22][24] Operational Insights - **Utilization Rates**: Utilization growth was about 2% in the first half of the year, lower than historical averages, but expected to normalize as procedure comparisons stabilize. [36] - **Procedure Growth**: The company raised the bottom end of its guidance range for procedure growth based on strong performance in the first half of the year, despite uncertainties in bariatric procedures and the China market. [38] Competitive Landscape - **Competition in Europe and Asia**: The competitive environment remains stable outside of China, where local manufacturers are increasing their presence. Intuitive Surgical maintains a high win ratio in tenders in Europe and Japan. [78][79] - **Local Manufacturing in China**: The company has begun local manufacturing in China to meet tender requirements for domestically produced systems. [81] Future Outlook - **Strategic Focus**: The company aims to prioritize R&D to capitalize on growth opportunities in robotics and computer-assisted interventions. [61] - **Long-term Margin Goals**: Intuitive Surgical aspires to achieve gross margins of 70% over the next 3 to 5 years, with trade-ins from the da Vinci 5 launch expected to contribute positively to margins in the long term. [64][68] Additional Considerations - **Bariatric Procedures**: The company is monitoring the stabilization of bariatric procedures, which have seen a decline, and anticipates potential recovery if physician strikes in Korea resolve. [39][49] - **CapEx and Depreciation**: Significant CapEx spending is expected to lead to increased depreciation expenses, impacting gross margins in the near term. [54][56] This summary encapsulates the key insights and data points discussed during the conference call, providing a comprehensive overview of Intuitive Surgical's current position and future outlook in the healthcare market.

Start Time: 13:30 January 1, 0000 2:00 PM ET Manulife Financial Corporation (NYSE:MFC) 25th Scotiabank Financials Summit Conference September 05, 2024, 13:30 AM ET Company Participants Roy Gori - President and CEO Conference Call Participants Meny Grauman - Scotiabank Operator Meny Grauman Hello, again. It's my pleasure to close out the Lifeco portion of the day with Roy Gori, President and CEO of Manulife. Roy Gori Good to see you, Roy. Meny Grauman Good to see you as well. Roy Gori I think the last time ...

Bristol-Myers Squibb Company (NYSE:BMY) Morgan Stanley 22nd Annual Global Healthcare Conference September 5, 2024 1:05 PM ET Company Participants Chris Boerner - Chief Executive Officer David Elkins - Executive Vice President and Chief Financial Officer Conference Call Participants Terence Flynn - Morgan Stanley Terence Flynn Okay, great. Thanks for joining us everybody. I’m Terence Flynn, the U.S. Biopharma Analyst here at Morgan Stanley. Before we get started for important disclosures, please see the Morg ...

Microsoft Corporation (NASDAQ:MSFT) Citi 2024 Global TMT Conference September 5, 2024 1:20 PM ET Company Participants Arun Ulag – Corporate Vice President-Azure Data Conference Call Participants Tyler Radke – Citi Tyler Radke All right. Good afternoon, everybody. My name is Tyler Radke. Thanks for joining day 2 of the Citi Tech Conference. I co-head the software sector here. I know we got a super packed room. I believe most seats are taken, but if you have one open, feel free to raise your hand and folks ca ...

Pan American Silver Corp. (NYSE:PAAS) Jefferies Industrials Conference 2024 September 5, 2024 8:00 AM ET Company Participants Ignacio Couturier - CFO Conference Call Participants Matthew Murphy - Jefferies Matthew Murphy Yeah, okay. Up next we have Pan American Silver presenting the story is CFO, Ignacio Couturier who's been with the company for 20 years. Ignacio Couturier 22 years. Matthew Murphy 22 years. And he's going to take us through a bit of a presentation and then, we'll throw it open to some Q&A. ...

Zscaler, Inc. (NASDAQ:ZS) Citi Global TMT Conference September 5, 2024 11:40 AM ET Company Participants Jay Chaudhry – Chief Executive Officer and Founder Remo Canessa – Chief Financial Officer Conference Call Participants Fatima Boolani – Citi Fatima Boolani Everybody, Fatima Boolani here. I jointly run their software research team here at Citi. I have the pleasure of the Zscaler's C-suite on the stage with me. It's my right, Jay Chaudhry, CEO and Founder; and to his right, the inimitable CFO, Remo Canessa ...

Peloton Interactive, Inc. (NASDAQ:PTON) Citi Global TMT Conference September 5, 2024 10:00 AM ET Company Participants Liz Coddington - CFO Conference Call Participants Ron Josey - Citi Ron Josey All right. We got the thumbs up. So welcome, everybody. I'm Ron Josey. I cover [Internet] sector here at Citi. It's always so exciting to have with me, Liz Coddington, Peloton CFO. I think we all know what Peloton is, and show hands if anyone have a Peloton in the room. Yes, it's a good amount of them soon. Maybe we ...

Summary of Marriott International, Inc. Conference Call Company Overview - **Company**: Marriott International, Inc. (NASDAQ: MAR) - **Event**: BofA Gaming and Lodging Results Conference - **Date**: September 5, 2024 Key Points Industry Insights - **Travel and Tourism Sector**: The sector is showing resilience despite economic uncertainties, with consumers prioritizing travel and experiences over other expenditures [10][11] - **Political Landscape**: The upcoming elections in Washington D.C. are expected to create a gridlock in federal government, which may lead to minimal changes in tax and labor policies [7][8] Financial Performance - **Leisure Segment Growth**: Leisure RevPAR (Revenue per Available Room) grew 40% globally over the past five years, with a normalization trend showing 2% growth in Q2 and July [13][14] - **Business Transient Recovery**: Steady quarter-over-quarter improvement in business transient travel, with small and medium-sized businesses recovering faster than large corporates [16] - **Group Segment Outlook**: High single-digit revenue growth expected for the group segment in 2024 and 2025 based on forward bookings [16] Market Challenges - **China Market Weakness**: Significant macroeconomic challenges in China, leading to a 10% decline in RevPAR in July. However, long-term growth potential remains strong, with record deal signings in the first half of 2024 [21][23] - **Consumer Confidence**: A crisis of consumer confidence in China is affecting demand, particularly in secondary and tertiary markets [21][28] Development and Growth Strategy - **Construction Activity**: U.S. and Canada construction starts increased by 40%, indicating a positive trend in development activity [34] - **Conversion Strategy**: Focus on conversions as a growth strategy, with a significant portion of signings and openings coming from conversions [35][47] - **Long-term Growth Targets**: Confidence in achieving a multiyear CAGR of 5% to 5.5% in net unit growth [54] Technology Investments - **Technology Overhaul**: Major investment in re-platforming key technology systems (reservations, property management, loyalty) to enhance guest experience and operational efficiency [57][59] - **Revenue Enhancement Opportunities**: New technology platforms expected to improve revenue generation by facilitating easier access to various services for guests [60] Miscellaneous - **Private Charter Business**: Notable growth in private charter business for the Ritz-Carlton Yacht, indicating a new revenue stream [5] - **Geopolitical Factors**: Ongoing geopolitical issues affecting inbound travel to China, impacting overall performance [30] This summary encapsulates the key insights and developments discussed during the conference call, highlighting the current state and future outlook of Marriott International and the broader hospitality industry.

Atlassian Corporation (NASDAQ:TEAM) Citi's 2024 Global TMT Conference Industry/Company - **Industry**: Software, particularly enterprise collaboration and project management - **Company**: Atlassian Corporation (NASDAQ:TEAM) Key Points and Evidence 1. **Company Milestones**: - Revenue of close to $4.4 billion with $1.4 billion in free cash flow in FY '24. - Hit first $1 billion quarter in revenue and subscription. - Released Atlassian Intelligence capabilities in the platform, bringing GenAI into workflows across Jira and Confluence. - Jira, a $1.8 billion business, continues to grow at least as fast as the overall Atlassian business. - Reached 300,000 customer mark. - Completed first $1 billion acquisition with Loom, which has performed well post-acquisition. - Customers with over $1 million in contract value grew 50% last year. - [3, 5, 7, 9] 2. **Focus Areas**: - Enterprise adoption - AI and Atlassian Intelligence - System of work (Atlassian portfolio of products) - [6, 7, 8] 3. **Enterprise Adoption**: - Substantial investments in R&D for scale, reliability, data management, data residency, security, compliance, and certification. - Data center enterprise customers choosing to adopt Cloud due to enterprise readiness of products. - [6] - Launched Atlassian Intelligence and Rovo, an AI agent building framework. - Thousands of customers have adopted Atlassian Intelligence. - [7] - Atlassian portfolio of products used in a mission-critical way by many customers. - [8] 4. **GTM Strategy**: - Focus on consolidation rather than traditional enterprise sales motion. - Explain the consolidation story and support the consolidation narrative for customers. - Bring channel partners into the conversation to provide value-added services. - [15, 16] 5. **Cross-Selling and Expansion**: - $14 billion opportunity for cross-selling existing product base to existing enterprise customers. - Demonstrating total cost of ownership (TCO) benefits for customers who consolidate tools. - Approach from multiple insertion points at the bottom and follow a coexistence strategy for several years, followed by a displacement strategy. - [19, 20, 24] 6. **JSM (Jira Service Management)**: - Fastest-growing business at Atlassian. - $600 million business growing faster than other core businesses. - Advantages in price, horizontal nature of tools, and time to value. - Greenfield vs. brownfield approach: enter at mid-market range and smaller range, displacing email or Excel sheets. - [31, 32, 33, 34, 35] 7. **Pricing Strategy**: - Price for value with steady price increases across the entire portfolio. - No fatigue from customers around pricing due to R&D investments and customer value delivered. - Exploration of consumption-based pricing, especially in AI world. - [37, 38, 40, 41] 8. **Cloud Migration**: - Server end-of-life as a symbolic moment of moving away from on-premise products. - Cloud as the ultimate destination for all customers. - Migrations coming from server and data center customer bases. - Running programs to support customers' journey from data center to cloud, including ride-along programs and channel partners. - [42, 43, 44, 45, 46, 47] 9. **CRO Transition**: - Looking for a CRO to address the next set of problems as a company: scaling the machine, meeting enterprise customers where they are, and ensuring customer adoption and deployment. - CRO will focus on procurement, delivery, and go-to-market, while R&D team focuses on product innovation. - [48, 49, 50] 10. **Resource Allocation and M&A**: - Continue to be smart and prudent about M&A to expand audiences and improve adjacencies. - Loom acquisition as a great example of an acquisition that aligns with product ethos and go-to-market motion. - R&D will continue to be one of the most important investments, with smart and efficient allocation. - [56, 57, 58, 59, 60]