T-Mobile US, Inc. (NASDAQ:TMUS) Morgan Stanley Technology, Media & Telecom Conference March 7, 2023 6:55 PM ET Company Participants Neville Ray - President of Technology Conference Call Participants Simon Flannery - Morgan Stanley Simon Flannery All right. Good afternoon, everybody. It's my great pleasure to welcome back Neville Ray, President of Technology at T-Mobile. We're delighted to have you here, but we're also sad because you've announced your retirement, and we'll get into that. But thank you f ...

NVIDIA Corporation (NASDAQ:NVDA) Cowen 43rd Annual Healthcare Conference March 7, 2023 2:10 PM ET Company Participants Kimberly Powell - Vice President, Healthcare Conference Call Participants Matt Ramsay - Cowen Matt Ramsay Anyway thank you for coming and welcome to what I think should be a really exciting and maybe different type of session than you guys are used to in. My name is Matt Ramsay. I lead the semiconductor research practice at Cowen. And I guess we'll start by addressing the elephant in the ro ...

ON Semiconductor Corporation Conference Call Summary Company Overview - **Company**: ON Semiconductor Corporation (NASDAQ: ON) - **Date**: March 7, 2023 - **Participants**: Hassane El-Khoury (President and CEO), Thad Trent (CFO), Joe Moore (Morgan Stanley) Industry Dynamics - **Automotive Market**: - Strong performance in the automotive sector driven by megatrends such as electrification and increased content growth in vehicles, particularly in Level 2+ autonomy and electric vehicles (EVs) [4][12] - Sustained strength in automotive is not tied to the Seasonally Adjusted Annual Rate (SAAR) but rather to the penetration of these trends into the general vehicle population [4] - **Consumer and Compute Markets**: - Notable softness observed since Q2 2022, leading to proactive management of utilization rates [4][5] - **Industrial Market**: - Softness noted in consumer-related industrial sectors, while core industrial segments like energy infrastructure and storage showed significant growth, ending the year with a 75% growth from 2021 [5] Strategic Business Decisions - **Exit Strategy**: - The company has exited $294 million in businesses with less sustainable profit pools, with a commitment to continue this strategy despite market conditions [6][8] - The exit strategy is market-dependent, with an acceleration in exiting certain businesses due to softness in consumer and compute markets [8][9] - **Long-term Supply Agreements (LTSA)**: - Over $16.5 billion in long-term supply agreements secured, providing visibility and stability in revenue [17][22] - These agreements allow for better capital investment decisions based on customer commitments over multiple years [19][20] Market Opportunities - **ADAS and Image Sensors**: - Growth in Advanced Driver Assistance Systems (ADAS) driven by increased vehicle content and camera usage, with expectations of doubling the number of cameras in vehicles over the next five years [31][32] - **Silicon Carbide (SiC)**: - The company is well-positioned in the SiC market, leveraging decades of expertise and investment in technology and packaging [34][36] - Anticipated revenue of $1 billion from SiC, with strong customer demand and successful qualifications with major automotive manufacturers [34][48] Financial Outlook - **Gross Margins**: - 2023 is viewed as a transition year with expected headwinds from SiC start-up expenses and the East Fishkill fab acquisition, but margins are projected to stabilize at or above corporate averages by year-end [57][58] - The company anticipates a gross margin range of 48% to 50% in the long term, with additional tailwinds from exiting subscale fabs and ramping new products [58] Key Takeaways - The automotive sector remains a stronghold for ON Semiconductor, with significant growth opportunities in ADAS and SiC technologies - The proactive management of business exits and inventory levels positions the company favorably for future growth - Long-term supply agreements provide a solid foundation for revenue stability and capital investment planning - The company is navigating current market softness while maintaining a focus on sustainable profit pools and margin improvement strategies

Fortinet, Inc. (NASDAQ:FTNT) Morgan Stanley Technology, Media & Telecom Conference March 7, 2023 6:20 PM ET Company Participants Ken Xie - Founder, Chairman of the Board, and Chief Executive Officer Keith Jensen - Chief Financial Officer Conference Call Participants Hamza Fodderwala - Morgan Stanley Hamza Fodderwala All right. Well, good afternoon, everybody. I hope everyone is doing well. My name is Hamza Fodderwala. I'm the US cybersecurity analyst here at Morgan Stanley. And with me, I have the pleasure ...

Summary of Sirius XM Holdings Inc. Conference Call Company Overview - **Company**: Sirius XM Holdings Inc. (NASDAQ: SIRI) - **Event**: Morgan Stanley Technology, Media & Telecom Conference - **Date**: March 7, 2023 Key Points Industry and Market Position - Sirius XM has 32 million self-pay subscribers, primarily generated from the automotive sector, maintaining a dominant position in-car audio services, surpassing all AM/FM combined services [3][4] - The company is targeting a market of approximately 50 million to 55 million adults in the U.S. who are highly engaged in audio but currently underserved by Sirius XM's offerings [5] Growth Opportunities - **Subscriber Growth**: The primary growth opportunity lies in increasing the subscriber base, particularly in the automotive sector, which is expected to recover in the latter half of 2023 [3][6] - **Product and Technology Investments**: Investments are being made to enhance product offerings and technology infrastructure to improve demand and retention [6] - **Podcasting**: There is significant potential for growth in podcasting, with efforts to improve monetization over time [6] Financial Guidance and Challenges - Revenue is expected to remain relatively flat year-on-year due to headwinds, particularly in advertising sales, which saw a 3% decline in Q4 2022 [8][11] - The company anticipates modestly negative subscriber growth in Q1 2023, with expectations for improvement in subsequent quarters [11] - Average Revenue Per User (ARPU) is undergoing a rate increase, which is expected to impact revenue positively later in the year [10][11] Cost Management - Sirius XM has reduced its workforce by approximately 8% as part of a broader cost management strategy to address advertising headwinds and delayed auto sales recovery [25][26] - The company is focusing on improving operational efficiency and has cut back on discretionary spending, including marketing and new content investments [27][28] Streaming and Consumer Engagement - The company is revamping its streaming product to enhance user experience and personalization, with a consumer app relaunch expected in Q4 2023 [14][20] - Sirius XM aims to be agnostic in how consumers access its services, whether through in-car systems or standalone streaming subscriptions [22] Automotive Partnerships - The penetration rate of Sirius XM in new cars is around 82-83%, with ongoing discussions with OEMs to increase this further [32] - The company is also focusing on improving trial starts and conversion rates in the used car market, which presents unique challenges due to its fragmented nature [34][36] Churn and Retention - The company has maintained a low churn rate of around 1.5-1.6%, attributed to better retention strategies and increased engagement with non-music content [40][41] Future Outlook - The company expects to maintain gross margins in the low 50s despite rising royalty costs [49] - Sirius XM is cautious about capital returns in the current macro environment, with a focus on maintaining flexibility in its financial strategy [53] Conclusion - Sirius XM is strategically positioned to leverage its automotive dominance and expand its subscriber base through enhanced product offerings and targeted marketing efforts, while navigating current financial headwinds and operational challenges [3][6][25]

Microsoft Corporation (NASDAQ:MSFT) Morgan Stanley Technology, Media & Telecom Conference March 7, 2023 5:05 PM ET Company Participants Scott Guthrie - Executive Vice President, Cloud + AI Conference Call Participants Keith Weiss - Morgan Stanley Keith Weiss Excellent. Thank you everyone for joining us. My name is Keith Weiss. I run the US Software Research effort here at Morgan Stanley. And I'm really pleased to have with us from Microsoft Scott Guthrie, Executive Vice President of Cloud + AI. I think ther ...

Dell Technologies Inc. Conference Call Summary Company Overview - **Company**: Dell Technologies Inc. (NYSE: DELL) - **Event**: Morgan Stanley Technology, Media & Telecom Conference - **Date**: March 7, 2023 Key Points Financial Performance - **Fiscal Year 2023 Performance**: - Total revenue: $102.3 billion, up 1% year-over-year [4] - Record operating income: $8.6 billion, up 11% [4] - Record EPS: $7.61, up 22% [4] - **Segment Performance**: - Infrastructure Solutions Group (ISG) revenue: $38.4 billion, up 12% [4] - Record performance in server and networking revenue [4] - Storage business grew 10% in Q4 [5] Market Dynamics - **Demand Environment**: - First half of FY23 saw a 12% increase, while the second half experienced a 9% decline due to deteriorating demand [4] - Caution in spending observed across customer segments, with IT budgets holding up but requiring more approvals [9] - **Geographic Performance**: - North America performed better, while China showed weakness [9] - Strength noted in financial services and construction sectors [9] PC Market Insights - **Current Market Conditions**: - Price competition intensified, especially in the consumer segment [14] - Total addressable market (TAM) projected at just under 206 million units, focusing on lucrative profit pools in commercial and premium consumer segments [16] - **Long-term Outlook**: - Anticipation of a market refresh as companies delay projects but remain committed to technology spending [11][17] ISG Business Outlook - **Growth Trends**: - ISG had a record year with $38.4 billion in revenue [22] - Caution persists in the server business, with storage showing strength [22] - **Guidance**: - Mid-20% decline expected in ISG for Q1, with overall company guidance down mid-teens for the year [24] Cost Management and Margins - **Gross Margin Expectations**: - Anticipated improvement of about 100 basis points due to a shift towards storage and deflationary cost trends [34] - **Operating Expenses**: - Expected to be a tailwind, but descaling may pressure operating margins [34] Capital Allocation Strategy - **Shareholder Returns**: - Commitment to return 40% to 60% of adjusted free cash flow to shareholders [39] - Dividend increased by 12% [39] - **M&A Focus**: - Targeting talent and technology acquisitions that align with growth strategies [39] AI and Cloud Strategy - **AI Integration**: - AI embedded in solutions to enhance performance and efficiency [43] - Focus on private data sets for AI applications, aligning with core business strengths [45] - **APEX Initiative**: - Continued growth with a doubling of customers and crossing $1 billion in ARR [47] Long-term Vision - **Market Positioning**: - Leadership in x86 servers, storage categories, and commercial PC business [50] - Structural share gainer with significant market share headroom [32] - **Execution and Growth**: - Historical revenue growth of 6% and EPS growth of 18% over the last three years [52] - Strong free cash flow generation of $18.5 billion over four years [52] Conclusion - **Investor Outlook**: - Encouragement for long-term investors to reassess Dell's competitive advantages and market positioning amidst macroeconomic challenges [52] This summary encapsulates the key insights and data points from the conference call, providing a comprehensive overview of Dell Technologies Inc.'s current performance, market dynamics, and strategic outlook.

The Toronto-Dominion Bank (NYSE:TD) RBC Capital Markets Global Financial Institutions Conference Call March 7, 2023 11:20 AM ET Company Participants Kelvin Tran - Chief Financial Officer Conference Call Participants Darko Mihelic - RBC Capital Markets Darko Mihelic Good morning, everybody. My name is Darko Mihelic. For those of you who haven't met me, I'm the research analyst in Toronto. I cover the Canadian banks and the Canadian life insurers. And welcome to the session. We're excited to have Kelvin Tran, ...

American Tower Corporation (NYSE:AMT) Citi's 2023 Global Property CEO Conference March 7, 2023 3:00 PM ET Company Participants Tom Bartlett - President and CEO Conference Call Participants Mike Rollins - Citi Mike Rollins Welcome to 3:00 P.M. session at Citi's 2023 Global Property CEO Conference. For those of you I haven't had an opportunity to meet, I'm Mike Rollins with Citi Research, and we're pleased to have with us American Tower and CEO, Tom Bartlett. This session is for Citi clients only. If media or ...

Texas Instruments Incorporated (NASDAQ:TXN) Morgan Stanley Technology, Media & Telecom Conference March 7, 2023 12:50 PM ET Company Participants Joe Moore - Semiconductor Industry Analyst Conference Call Participants Dave Pahl - VP, IR Rafael Lizardi - CFO Joe Moore Great. Welcome back. I'm Joe Moore. I'm very happy to have with us here today the management team of Texas Instruments. Rafael Lizardi, CFO; and Dave Pahl who runs Investor Relations. Just a quick research hedge for important disclosures, please ...