International Business Machines Corporation (NYSE:IBM) Morgan Stanley Technology, Media and Telecom Conference Call March 5, 2024 11:00 AM ET Company Participants Jim Kavanaugh - CFO Conference Call Participants Erik Woodring - Morgan Stanley Erik Woodring Welcome, everyone, to Day two of the Flagship Morgan Stanley TMT Conference. My name is Erik Woodring. I'm the lead hardware analyst here based out of New York. I'm very delighted to welcome Jim Kavanaugh, CFO of IBM, with us today. Been in IBM for almost ...

Summary of The Walt Disney Company Conference Call Company Overview - **Company**: The Walt Disney Company (NYSE: DIS) - **Date**: March 5, 2024 - **Participants**: Bob Iger (CEO), Ben Swinburne (Morgan Stanley Analyst) Key Points Company Health and Strategy - The company has significantly improved over the past 15 months since Bob Iger's return as CEO, addressing various operational issues and focusing on profitability [6][9] - The streaming business is on a path to profitability, with expectations to achieve this by the fourth fiscal quarter of 2024 [9] - The studio has faced challenges but remains a leader in the global box office, with a strong upcoming film slate [7][10] Streaming Business - A new management structure for streaming has been implemented, focusing on cost reduction and technology improvements to enhance customer acquisition and retention [15][16] - Disney+ aims to integrate Hulu into its platform, which has shown to reduce churn rates significantly when bundled [18][27] - The company has removed $7.5 billion in costs, with expectations to exceed this amount, positively impacting the bottom line [15] ESPN and Sports Strategy - ESPN is transitioning to a digital platform, with plans to launch an app-based service available on an à la carte basis [28][32] - The company is focusing on attracting younger audiences who have moved away from traditional cable bundles [31] - ESPN's programming remains strong, with growing ratings for both live sports and related content [30] Studio Performance - The studio is focusing on quality over quantity, with management changes and a commitment to improving the film slate [40][42] - Disney has reduced the output of Marvel films to enhance quality and avoid audience fatigue [43] - Upcoming films include major titles like "Deadpool," "Moana," and "Mufasa," with a strong pipeline through 2026 [45] Parks and Resorts - The company is investing $60 billion over the next 10 years in Parks and Resorts, with 70% allocated to expanding capacity [49] - The Parks segment is experiencing low to mid-teens growth in operating income, indicating strong performance [12][53] - New attractions based on popular IPs like "Avatar" and "Frozen" are being developed to enhance visitor experiences [51][52] Investment in Gaming - Disney's $1.5 billion investment in Epic Games aims to create a Disney universe for engaging with IP through gaming [54][56] - The strategy reflects a long-term vision to leverage Disney's IP in the gaming sector, appealing to younger demographics [55] Joint Ventures and Market Position - Disney is forming a joint venture in India with Reliance to strengthen its market presence while mitigating risks [60] - The company is navigating a contested proxy season with activist investors, emphasizing the complexity of managing its diverse business segments [61][62] Future Outlook - Bob Iger expresses optimism about Disney's future, citing a strong executive team and a robust balance sheet to support growth initiatives [67][68] - The company aims to embrace disruption and continue innovating in the entertainment space [69] Additional Insights - The importance of creativity and accountability in the production process has been highlighted as crucial for future success [7][41] - The integration of technology and content strategy is seen as vital for enhancing profitability in the streaming sector [15][19]

NXP Semiconductors N.V. (NASDAQ:NXPI) Morgan Stanley Technology, Media & Telecom Conference March 5, 2024 11:45 AM ET Company Participants Jeff Palmer - Director, IR Conference Call Participants Joseph Moore - Morgan Stanley Joseph Moore Good. All right. Thank you, everybody. Welcome back. I'm Joe Moore, Morgan Stanley Semiconductor Research. Very happy to have with us today, Jeff Palmer, our Director of Investor Relations for NXP. So Jeff, I think maybe if you could just start off with a little bit of an o ...

Summary of Okta, Inc. Conference Call Company Overview - **Company**: Okta, Inc. (NASDAQ: OKTA) - **Event**: Morgan Stanley Technology, Media & Telecom Conference Call - **Date**: March 5, 2024 - **Participants**: Brett Tighe (CFO), Hamza Fodderwala (Morgan Stanley Analyst) Key Points Financial Performance - **Q4 Results**: Strong performance with notable RPO (Remaining Performance Obligations) growth and average contract durations at a two-year high of approximately 2.5 years [2][6] - **Record Margins**: Achieved record margins and free cash flow, attributed to effective execution across the company [3][5] - **Million-Dollar Contracts**: A record number of million-dollar ARR (Annual Recurring Revenue) contracts, growing by 30% year-over-year [9][10] Customer Engagement - **Large Customers**: Success attributed to large customers who tend to sign longer-term deals, indicating strong commitment to Okta's services [7][9] - **Customer Identity**: The customer identity market is seen as a significant growth opportunity, with Okta being the largest vendor in this space [49] Market Dynamics - **Identity Market Size**: The identity market is estimated to be around $80 billion, with substantial room for growth [37] - **Competitive Landscape**: No significant changes in competitive dynamics noted, indicating a stable environment for Okta [36] Strategic Initiatives - **Security Initiatives**: Progress made on security initiatives, including the Secure Identity Commitment, aimed at enhancing security measures [4] - **Focus on Governance and PAM**: Emphasis on expanding into governance and Privileged Access Management (PAM), with early positive signs of customer adoption [12][16] Guidance and Outlook - **Fiscal Year 2025 Guidance**: Projected revenue growth of 10% to 11%, with considerations for macroeconomic stability and potential impacts from recent security incidents [21][22] - **Net Retention Rate**: Expected to remain around 111%, with a focus on upsell opportunities [31][32] Operational Efficiency - **Profitability Improvements**: Significant improvements in profitability driven by cost-effective measures and strategic investments in lower-cost regions [70][71] - **Future Margin Expectations**: Anticipated non-GAAP operating margin to increase from approximately 14% in FY '24 to 18%-19% in FY '25 [72] Channel Strategy - **Channel Growth**: Channel business accounted for about 40% of total revenue in Q4 FY '24, showing growth from previous years [64] - **Partnerships with MSSPs**: Initiatives to work more closely with Managed Security Service Providers (MSSPs) and Global System Integrators (GSIs) to enhance market reach [63][66] AI and Technology Integration - **AI Integration**: Okta has been utilizing AI for a long time, with new products announced that leverage AI for enhanced security and identity management [58][59] Public Sector Focus - **FedRAMP Certification**: Achieved FedRAMP High certification, indicating strong potential in the public sector market [61][62] Additional Insights - **Customer Identity vs. Workforce Identity**: Different buyer personas for customer identity, including roles beyond traditional IT, indicating a broader market engagement strategy [48][49] - **Long-Term Customer Relationships**: Emphasis on the importance of long-term relationships with customers, particularly in light of recent security incidents [25][26] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Okta's strong performance, market opportunities, and future growth strategies.

Corning Incorporated Conference Call Summary Company Overview - **Company**: Corning Incorporated (NYSE: GLW) - **Date**: March 5, 2024 - **Participants**: Edward Schlesinger (CFO), Meta Marshall (Morgan Stanley) Key Industry Insights General Market Conditions - Corning has experienced recessionary demand across most of its portfolio throughout 2023, with expectations that Q1 2024 will mark a bottom for demand recovery [2][3] - The company is observing various signposts across segments to gauge when demand might return, including inventory digestion and deployment rates in Optical Communications and Display segments [3][5] Segment-Specific Insights Optical Communications - Customers have excess inventory, which is expected to be digested by mid-2024, potentially increasing sales even without increased deployments [3][10] - The long-term demand trajectory remains positive due to factors like broadband build-out and cloud computing needs, despite current sales being approximately 30% below trend lines [10][12] Display - Panel maker utilization was depressed in Q4 2023, but an increase is anticipated as the year progresses, indicating potential recovery in demand [5][15] - Price increases have been implemented to maintain profitability, with a focus on achieving a net income ratio of 25-30% [18][52] Life Sciences - Inventory digestion is occurring, particularly in North America and Europe, with expectations for growth as the market normalizes post-COVID [47] - The segment is expected to grow at a low to mid-single-digit rate, with certain subsegments like bioprocessing potentially growing faster [48] Automotive Glass - Corning sees significant opportunities in the automotive sector, with a total addressable market (TAM) of $100 per vehicle driven by trends in emissions control and connectivity [34] - The company has secured $1 billion in multi-year auto glass orders, with sales expected to ramp up as model years progress [36] Specialty Materials - Corning's Gorilla Glass sales have increased despite a decline in smartphone units, indicating strong innovation and market demand [42] - The company is also seeing growth in specialty glass for the semiconductor industry, which is expected to continue as the supply chain expands [43] Financial Performance and Strategy - Corning improved its gross margin by approximately 300 basis points in 2023, with a focus on maintaining profitability and cash flow [8][49] - The company has the capacity to drive an additional $3 billion in sales without significant capital investment, indicating a strong operational leverage point [50] - Capital expenditures for 2024 are expected to be lower than in 2023, with maintenance capital estimated at $1-1.1 billion [50] M&A and Future Outlook - Corning is primarily focused on organic growth but remains open to opportunistic M&A, particularly in the optical and life sciences sectors [67] - The company is cautiously optimistic about the impact of BEAD funds on demand, expecting more significant effects in 2025 than in 2024 [12][14] Additional Considerations - The impact of currency fluctuations, particularly the yen, has been managed through pricing strategies and hedging [24][18] - The company remains the market leader in the display space and is willing to trade market share for profitability [22][18] - Corning is exploring AI opportunities but considers it early days for significant internal applications [56][58] This summary encapsulates the key points discussed during the conference call, highlighting Corning's current market conditions, segment performance, financial strategies, and future outlook.

Company and Industry Overview * **Company**: Merck & Co., Inc. (NYSE:MRK) * **Industry**: Healthcare, Pharmaceuticals, Biotechnology Key Points GARDASIL * **Revenue Target**: Merck aims to achieve $11 billion in GARDASIL revenue by 2030, driven by international markets. * **International Expansion**: Merck focuses on increasing vaccine coverage rates, expanding coverage in NIPs, and targeting the private market and low middle-income segments. * **Manufacturing Capacity**: Merck has invested in manufacturing capacity to meet growing demand for GARDASIL, particularly in low middle-income markets. KEYTRUDA * **Growth Outlook**: KEYTRUDA is expected to see growth in 2024, driven by expansion into new tumor types and earlier treatment settings. * **Early-Stage Settings**: Early-stage KEYTRUDA is expected to be the primary driver of growth in 2024, with significant potential in triple-negative breast cancer and other tumor types. * **Subcutaneous Formulation**: Merck is exploring the subcutaneous formulation of KEYTRUDA for O-U.S. markets, aiming to improve patient convenience and access. Sotatercept * **PAH Approval**: Merck is confident in the approval of sotatercept for PAH in the EU and Japan, with a potential launch in the second half of 2024. * **Market Opportunity**: Sotatercept has the potential to become a significant revenue driver for Merck, with a target cardiovascular business of $15 billion by the mid-2030s. Vaccines * **Prevnar**: Merck is focused on expanding the Prevnar franchise, including the launch of VAXNEUVANCE for the pediatric segment and V116 for the adult segment. * **Dengue**: Merck is developing a dengue vaccine with potential for significant impact in the Southern Hemisphere and other regions. * **VAXELIS**: Merck is making steady progress with VAXELIS, a hexavalent vaccine covering multiple diseases. HIV * **Islatravir-Doravirine Combination**: Merck is developing an islatravir-doravirine combination for HIV, aiming to differentiate from existing treatments and address unmet needs. China * **Market Growth**: Merck has seen significant growth in China, driven by the launch of GARDASIL and other innovative products. * **Government Support**: The Chinese government's focus on improving healthcare standards and access has been beneficial for Merck. * **Partnerships**: Merck has formed partnerships with local companies to leverage the growing scientific ecosystem in China. Future Outlook * **Competitive Advantage**: Merck's competitive advantage lies in its pipeline of innovative products and its focus on patient care. * **Long-Term Growth**: Merck is focused on long-term growth, with a focus on expanding its pipeline and addressing unmet medical needs.

Verizon Communications Inc. (NYSE:VZ) Morgan Stanley Technology, Media & Telecom Conference March 5, 2024 11:45 AM ET Company Participants Tony Skiadas - Executive Vice President & CFO Conference Call Participants Simon Flannery - Morgan Stanley Simon Flannery All right. Good morning, everybody. Great pleasure to welcome Tony Skiadas from Verizon. Welcome, Tony. I think you have a safe harbor for us. Tony Skiadas Thanks, Simon, and good to be here. So before we get started, I need to draw your attention to ...

Datadog, Inc. (NASDAQ:DDOG) Morgan Stanley Technology, Media & Telecom Conference March 5, 2024 12:30 PM ET Company Participants Olivier Pomel - CEO David Obstler - CFO Conference Call Participants Sanjit Singh - Morgan Stanley Sanjit Singh All right. Good morning. We are here to talk Datadog and Observability. We have CEO, Olivier Pomel; and CFO, David Obstler. Olivier and David, thank you for coming to the TMT Conference once again. I think you've been here, I think, 3 or 4 years in a row now. So we reall ...

Gilead Sciences, Inc. (NASDAQ:GILD) TD Cowen 44th Annual Health Care Conference March 5, 2024 12:50 PM ET Company Participants Andy Dickinson - Chief Financial Officer Conference Call Participants Tyler Van Buren - TD Cowen Tyler Van Buren Welcome, and good afternoon, everyone. Welcome again to TD Cowen's 44th Annual Healthcare Conference, Day 2. My name is Tyler Van Buren, senior biotech analyst here. For our next session, very pleased to have a fireside chat with Gilead. And from Gilead, it's my pleasure ...

Plug Power Inc. (NASDAQ:PLUG) Special Call (Unlocking the Future: Hydrogen Mobility Fueling Solutions) March 5, 2024 12:00 PM ET Company Participants Meryl Fritz - Manager, Marketing & Communications Tim Lowrey - Director, Sales at Plug Cryo Adam Van De Mortel - Sales Engineering Manager Conference Call Participants Meryl Fritz All right, and I believe we're live. Hi everyone and welcome to this month's episode of Green Hydrogen with Plug. My name is Meryl and I'll be your moderator for today's session. In ...