Carvana (CVNA) Q2 2025 Earnings Call July 30, 2025 05:30 PM ET Speaker0Good afternoon, and welcome to the Carvana Second Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Meg Kehan, Investor Relations. Please go ahead.Speaker1Thank you. Good afternoon, ladies and gentlemen, and thank you for joining us on Carvana's second quarter twenty twenty five earnings conference ca ...

Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew by 4% to $19.5 billion, with revenue increasing by over 4% to $2.73 billion [7][30] - Non-GAAP operating income rose by 8% to $775 million, and non-GAAP earnings per share increased by 16% year over year to $1.37 [7][30] - The take rate was 14%, showing a modest year-over-year increase, with advertising, shipping, and financial services contributing positively [38] Business Line Data and Key Metrics Changes - Focus categories experienced GMV growth of over 10%, significantly outpacing core categories [8][31] - Collectibles, particularly trading cards, were the largest contributors to growth, with triple-digit GMV growth for Pokémon cards [8][9] - Motors, Parts, and Accessories (P&A) contributed nearly one point of year-over-year GMV growth, driven by strength across major markets [11] Market Data and Key Metrics Changes - U.S. market GMV growth accelerated to 7%, driven by healthy consumer demand and strong performance in trading cards [33] - International GMV grew nearly 2% on an FX neutral basis, with foreign exchange providing a tailwind [34] - The U.K. and Germany investments helped navigate lower growth environments, with cross-border volume growth remaining stable [35] Company Strategy and Development Direction - The company is focused on enhancing the consumer-to-consumer (C2C) experience in the U.K. and expanding capabilities in live commerce [19][20] - Generative AI is being leveraged to optimize listings and personalize customer engagement, driving higher quality visits [14][15] - The company aims to maintain a disciplined balance between top and bottom line growth while investing in strategic initiatives for long-term value [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of trading card categories despite potential fluctuations in growth [9][86] - The company anticipates continued healthy consumer trends in the U.S. and plans to reinvest a portion of top-line upside into strategic initiatives [41][44] - The outlook for the remainder of the year considers potential disruptions from tariffs and the elimination of de minimis exemptions [42][46] Other Important Information - The company returned approximately $760 million to shareholders through repurchases and cash dividends [30] - eBay was recognized as one of Time's World's Most Sustainable Companies and Newsweek's World's Greenest Companies 2025 [27] - The company plans to target share repurchases of approximately $2.5 billion for the full year [47] Q&A Session Summary Question: Insights on marketing and AI positioning - Management highlighted a full funnel marketing approach and noted efficiencies in lower funnel marketing spend due to competitive dynamics [54][56] Question: Future category growth expectations - Management indicated that existing focus categories will continue to drive growth, with ongoing investments in both new and established categories [61][62] Question: U.S. market strength and strategic investments - Management noted favorable macro conditions in the U.S. and emphasized the importance of strategic investments in C2C initiatives and AI [68][70] Question: Sustainability of GMV growth and active buyer base - Management confirmed that active buyers are crucial for maintaining GMV growth, with a focus on converting active buyers to enthusiasts [90][92] Question: Trading cards market durability and margin outlook - Management acknowledged that trading card growth is not linear but remains optimistic about long-term potential, while also discussing the relationship between top-line growth and margins [85][87]

Financial Data and Key Metrics Changes - Microsoft reported annual revenue of over $281 billion, up 15% year over year, with operating income exceeding $128 billion, an increase of 17% year over year [28][29] - For the fourth quarter, revenue was $76.4 billion, up 18% in constant currency, with earnings per share at $3.65, reflecting a 24% increase [29][30] - Commercial bookings surpassed $100 billion for the first time, increasing 37% in constant currency [29][30] - The commercial remaining performance obligation rose to $368 billion, up 37% in constant currency [30] Business Line Data and Key Metrics Changes - Microsoft Cloud revenue reached $46.7 billion, growing 27% in constant currency, with a gross margin percentage of 68% [31][32] - Productivity and Business Processes revenue was $33.1 billion, up 16% in constant currency, driven by M365 Commercial and Consumer Products [32][33] - Intelligent Cloud segment revenue was $29.9 billion, growing 26% in constant currency, primarily from Azure and on-premises server business [34] - More Personal Computing revenue was $13.5 billion, growing 9%, with Xbox content and services revenue increasing 13% in constant currency [36][37] Market Data and Key Metrics Changes - Azure surpassed $75 billion in annual revenue, up 34%, with significant growth across all workloads [6][7] - Microsoft Fabric revenue increased 55% year over year, with over 25,000 customers [11] - LinkedIn revenue grew 9%, with Talent Solutions impacted by hiring market weakness [33][25] - Xbox had 500 million monthly active users, with Game Pass annual revenue reaching nearly $5 billion for the first time [26][27] Company Strategy and Development Direction - Microsoft is focusing on building a comprehensive suite of AI products and tech stack at scale, with significant investments in AI infrastructure [6][10] - The company is expanding its data center capacity, with over 400 data centers across 70 regions, and is committed to maintaining leadership in the cloud infrastructure market [7][8] - Microsoft aims to enhance its commercial cloud offerings to meet unique data residency and sovereignty requirements, introducing the Microsoft Sovereign Cloud [9] - The company is also innovating in consumer applications, integrating AI features across its products, including Copilot in Microsoft 365 and Edge [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive long-term growth amid a generational tech shift with AI [27][51] - The outlook for FY 2026 includes expectations for double-digit revenue and operating income growth, with continued investments in capital expenditures and operating expenses [41][42] - Management highlighted the importance of maintaining operational agility and delivering revenue growth while managing costs effectively [42][51] Other Important Information - Microsoft launched over 100 new security capabilities over the past year, securing nearly 2 million general AI applications [24] - The company reported cash flow from operations of $42.6 billion, up 15%, and returned $9.4 billion to shareholders through dividends and share repurchases [39][40] Q&A Session Summary Question: Insights on Azure migration activity - Management noted that migrations, particularly large ones like Nestle's, are driving Azure growth, alongside the scaling of cloud-native applications and new AI workloads [74][76] Question: Surprises in quarterly performance - Management indicated that while there were no major surprises, the rapid development of stateful app patterns and the sophistication of application frameworks were notable [81][82] Question: Copilot's role in data importance - Management acknowledged that Copilot is just the starting point, with increasing importance placed on data and the development of asynchronous applications [88][90] Question: CapEx and Azure growth outlook - Management emphasized that CapEx is closely tied to the $368 billion contracted backlog, focusing on delivering capacity to meet demand [99][101] Question: Margin management amid AI offerings - Management highlighted that revenue growth and product innovation are key drivers of margin improvement, alongside efficiency gains from AI [108][110]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenues of $2,260 million, a 5% increase year-over-year, driven by strong recurring revenue growth of 7% [15][32] - Adjusted EBITDA margins reached 50% for the first time in history, with adjusted EBITDA of approximately $1,130 million [16][32] - AFFO per share increased by 8% year-over-year, totaling $972 million, exceeding expectations due to strong operating performance and lower income tax expenses [16][33] Business Line Data and Key Metrics Changes - The company closed 4,100 deals across more than 3,300 customers, resulting in $345 million of annualized gross bookings for the quarter [6][27] - Interconnection revenues grew by 8% year-over-year, surpassing $400 million in quarterly revenues for the first time, with a net addition of 6,200 total interconnections [22][23] - The Americas region led cabinet billing, contributing to solid MRR per cabinet yields [7][34] Market Data and Key Metrics Changes - The company noted a notable uptick in inter and intra-region sales, particularly in cloud and AI expansion activities [6][22] - The demand for digital infrastructure is being driven by trends in AI, hybrid, and multi-cloud strategies, with significant customer reliance on Equinix for these needs [10][14] Company Strategy and Development Direction - The company outlined its "Build Bolder" strategy focused on capital expenditure for capacity expansion, aiming to accelerate revenue growth [10][12] - Investments will primarily target major markets generating over $100 million in annual revenue, leveraging established customer relationships [12] - The company anticipates a path to double-digit revenue growth as the "Build Bolder" strategy becomes fully operational [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong customer momentum and a robust pipeline for Q3 and Q4 [20][21] - The company expects to see a meaningful step-up in non-recurring revenues in the second half of the year, particularly in Q4 [16][38] - Management emphasized the importance of addressing customer demand signals, particularly in AI and cloud connectivity [70][72] Other Important Information - The company has 59 major projects underway globally, including 12 XScale projects, and has expanded its footprint in Southeast Asia with the acquisition of three data centers in the Philippines [24][25] - The balance sheet increased to approximately $39 billion, with elevated cash and short-term investments totaling around $4.5 billion [34][35] Q&A Session Summary Question: What helped the interconnection adds this quarter and expectations for future metrics? - Management noted strong interconnection performance with revenues up 8% year-on-year, driven by cloud and AI expansion opportunities [44][45] Question: What is driving strong bookings momentum to start Q3? - Management highlighted broad-based activities across regions and segments, with strong pricing and intra-regional pickups contributing to the momentum [48][50] Question: Can you provide an update on the timing to stabilization in the Build Bolder plan? - Management indicated that the typical build profile is 18 to 24 months, but they expect to accelerate stabilization through fewer build phases and increased enterprise customer demand [57][59] Question: What is the outlook for ExScale leasing in the back half of the year? - Management confirmed a strong track record in ExScale, with 85% of facilities leased or pre-leased, and a robust pipeline supporting step-up in NRR [94][96]

Twin Hospitality Group (TWNP) Q2 2025 Earnings Call July 30, 2025 05:15 PM ET Speaker0Greetings. Welcome to Twin Hospitality Group Inc. Second Quarter twenty twenty five Conference Call hosted by Chief Executive Officer Kim Vilrayma and Chief Financial Officer Ken Kulik. Also joining today's call is Satbrand Inc. Chairman of the Board, Andy Wiederhorn.At this time, all participants have been placed in a listen only mode. Please note that this conference call is being recorded today, 07/30/2025. After the ma ...

Financial Data and Key Metrics Changes - The company reported total revenue of $382.5 million, up 13% year over year on a GAAP basis and up 12.5% year over year on a constant currency basis, exceeding growth expectations [8][9] - Non-GAAP operating margin increased nearly 109 basis points year over year to 21.2%, representing the highest performance in the company's history as a public company [9] - Non-GAAP EPS grew by 10%, exceeding expectations, and free cash flow increased by 20% year over year to $70 million [9][32] Business Line Data and Key Metrics Changes - Cardiovascular segment sales grew by 10% and endoscopy segment sales increased by 81% [24] - Cardiac intervention product sales rose by 23%, with organic growth of approximately 10% [25] - Peripheral intervention products and custom procedure solutions saw sales increases of 6% and above expectations, respectively [25] Market Data and Key Metrics Changes - U.S. sales increased by 17% on a constant currency basis and 10% on an organic constant currency basis [28] - International sales grew by 7% year over year, with a 2% increase on an organic constant currency basis [28] - Sales in China decreased by 6%, attributed to the broader macro environment [29][80] Company Strategy and Development Direction - The company announced the acquisition of BioLife Delaware LLC for $120 million, aimed at enhancing its product offerings in hemostatic solutions [10][11] - A comprehensive marketing plan for the Rhapsody CIE was launched, focusing on expanding physician relationships and securing reimbursement coverage [15][16] - The company is targeting a premium pricing strategy for the Rhapsody CIE, emphasizing its unique treatment options and clinical benefits [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong execution and revenue growth despite a challenging global macro environment [10] - The company acknowledged a two-quarter delay in securing add-on reimbursement for the Rhapsody CIE in the outpatient setting but maintained long-term growth expectations [22][37] - Management emphasized the importance of their reimbursement strategy and ongoing engagement with CMS to secure necessary approvals [21][56] Other Important Information - The company updated its 2025 financial guidance, expecting GAAP net revenue growth of 10% to 11% and non-GAAP diluted EPS in the range of $3.52 to $3.72 [34][39] - The anticipated impact of tariffs on cost of goods was revised down to approximately $7 million, reflecting better-than-expected performance [38] Q&A Session Summary Question: Clarification on Rhapsody reimbursement process - Management clarified that they applied for a new technology APC assignment but did not receive it, and they plan to submit for TPT by September 1 [46][48] Question: Confidence in securing TPT - Management expressed high confidence in meeting TPT guidelines and emphasized the strength of their product data [55][60] Question: Sales performance in cardiac intervention - Management attributed the sales uplift to internal product development and the strategic acquisition of Cook Medical [100][106]

Compass (COMP) Q2 2025 Earnings Call July 30, 2025 05:00 PM ET Company ParticipantsSoham Bhonsle - Head - IRRobert Reffkin - Founder, Chairman & CEOKalani Reelitz - CFOJason Helfstein - MD & Head - InternetNick McAndrew - Equity Research AssociateAlec Brondolo - Director - Equity ResearchChris Kuntarich - Internet Equity ResearchElizabeth Langan - AVP - Equity ResearchJeff Seiner - VP, Internet Equity ResearchConference Call ParticipantsBernie Mcternan - Senior AnalystMichael Ng - AnalystOperatorLadies and ...

Financial Data and Key Metrics Changes - The company reported a constant currency Annual Recurring Revenue (ARR) of $2,372 million, reflecting a 9.3% year-over-year growth [17] - Free cash flow for Q3 was $242 million, up 14% year-over-year [17] - Total debt at the end of Q3 was $1,236 million, with a leverage ratio of 1.2 times [17] Business Line Data and Key Metrics Changes - ARR growth in the CAD segment was 8%, primarily driven by CREO, while PLM saw a 10% increase, mainly from Windchill, CodeBeamer, and IoT [17] - The Americas experienced an 8% growth in constant currency ARR, Europe and Asia Pacific both saw an 11% increase [17] Market Data and Key Metrics Changes - The company noted that policy and trade uncertainties had led some customers to slow or phase deals, but signs of stabilization were observed by quarter-end [9] - Demand remained resilient across various verticals and geographies, indicating that the company's solutions are considered mission-critical [9] Company Strategy and Development Direction - The company is focused on enhancing its product data foundation strategy, which is central to its vision of AI-driven transformation [12][13] - The relationship with NVIDIA is highlighted as a significant opportunity for innovation and collaboration in AI and product data intelligence [14] - The company aims to maintain a net debt position and return excess cash to shareholders through share repurchases [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position in the market and the ongoing transformation of its go-to-market strategy [6][15] - There is optimism regarding the pipeline for Q4, with several meaningful opportunities identified [15] - Management acknowledged the challenges posed by input costs and tariff discussions but noted that customers are adapting to the environment [9] Other Important Information - The company is actively repurchasing shares under a $2 billion authorization, having repurchased $75 million worth of shares in Q3 [17] - The company expects to buy back approximately $300 million of common stock in fiscal '25, with $75 million expected in Q4 [17] Q&A Session Summary Question: Update on go-to-market initiatives and verticalization - Management noted progress in the go-to-market transformation, with improvements in win rates and rep productivity [29][30] Question: Confidence going into Q4 amid macro outlook - Management highlighted a strong pipeline and increased clarity in customer conversations, contributing to confidence for Q4 [36][38] Question: Changes in customer behavior due to tariff uncertainty - Management observed that while uncertainty has decreased, customers are still facing challenges with higher input costs [48][50] Question: Impact of AI on ARR uplift - Management indicated that AI is becoming a critical part of customer conversations, with positive feedback from early adopters [64][66] Question: Thoughts on M&A speculation - Management refrained from commenting on market speculation but emphasized the company's strategic leadership in its space [60] Question: Progress of ServiceMax business - Management discussed the importance of ServiceMax in cross-selling opportunities and its connection to core products like Windchill [76][82] Question: Improvement in multi-solution sales - Management noted an increase in discussions around multi-product offerings, indicating a positive trend in the pipeline [92][93] Question: Timeline for seeing outcomes from go-to-market transition - Management expects to see more significant outcomes from the go-to-market transition by mid to late next year [100][101] Question: Long-term commercial optimization strategies - Management is rigorously discussing commercial levers and believes there are opportunities for growth through pricing strategies [104][106]

Financial Data and Key Metrics Changes - The company reported record highest ever consolidated net revenue results in the second quarter of 2025, driven by a diverse portfolio and global presence [6][7][17] - BetMGM North America raised full year 2025 guidance for the second time, implying an EBITDA turnaround of nearly $400 million compared to last year [8][19] - Adjusted EBITDAR in Las Vegas declined by $72 million, primarily due to the MGM Grand's room remodel and midweek performance issues [21][22] Business Line Data and Key Metrics Changes - BetMGM North America saw a 36% increase in revenue from operations, with iGaming growing 29% and sports betting top line growing 56% [18][19] - MGM Digital, excluding BetMGM North America, grew its top line by 14%, with expectations of over $150 million in EBITDA enhancements in 2025 [24][25] - MGM China achieved record adjusted EBITDAR and market share of 16.6%, with a focus on premium mass players [11][12][23] Market Data and Key Metrics Changes - Las Vegas experienced record table games and slot volumes, but the adjusted EBITDAR decline was isolated to specific properties [9][20] - MGM China reported a 3% increase in adjusted EBITDAR, with strong performance across all business segments [23] - Regional properties achieved record high net revenues, demonstrating stability during volatile times [12] Company Strategy and Development Direction - The company aims to be the world's premier gaming entertainment company, leveraging its unmatched portfolio diversity to drive growth [6][7][27] - MGM is focused on capitalizing on significant near-term catalysts in BetMGM and Las Vegas, as well as mid to long-term catalysts in MGM Digital and development projects [7][8][14] - The company is positioned to benefit from major events in Las Vegas, including the new MLB stadium and ongoing renovations at the Las Vegas Convention Center [9][10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about restoring growth in Las Vegas during the fourth quarter, supported by positive bookings and convention activity [22][50] - The company remains confident in its ability to attract premium customers despite challenges in the value-oriented segment [91][92] - Management highlighted the importance of maintaining a strong balance sheet while pursuing growth opportunities in international markets [17][29] Other Important Information - The company repurchased 8 million shares for $217 million, with board approval for an additional $2 billion in share repurchases [25][26] - MGM's exclusive relationship with Marriott is driving higher quality customer bookings, with a significant increase in room nights booked [10][44] - The company is actively working on legislative issues related to tax impacts on the gaming community [65][66] Q&A Session Summary Question: Impact of MGM Grand disruption - The estimated impact remains at $65 million, with about $40 million experienced in the first six months [34] Question: Pricing and value concerns in Vegas - Luxury products are performing well, with ADR up 4%, while value-oriented properties are facing challenges [36][37] Question: Digital business cross benefits - Significant growth in Nevada monthly actives and strong player engagement are noted, with a focus on omnichannel advantages [41] Question: Update on Bonvoy arrangement - The partnership is on track, with over 900,000 room nights expected this year and positive customer spending trends [43] Question: Visitation decline on the Strip - International visitation has been an issue, but premium customer attraction remains strong [90][91] Question: Dividend policy at MGM China - A new dividend policy of 50% of distributable net income has been approved, providing substantial cash flow for MGM Resorts [60][61] Question: Buyback strategy amidst growth pipeline - The company is cautious with share repurchases due to its development pipeline but remains within leverage targets [70][71]

Alkami (ALKT) Q2 2025 Earnings Call July 30, 2025 05:00 PM ET Company ParticipantsSteve Calk - Head - IRAlex Shootman - CEO & DirectorBryan Hill - CFORyan Powderly-Gross - VP - Equity ResearchCharles Nabhan - MD - Equity Research- Payments/FintechAdam Hotchkiss - VP - Emerging Software Equity ResearchConference Call ParticipantsCristopher Kennedy - Research Analyst - Financial Services & TechnologyIsabella Camaj - Equity Research AnalystJeff Van Rhee - Senior Research AnalystMayank Tandon - Senior AnalystPa ...