Okta, Inc. (NASDAQ:OKTA) KeyBanc 2023 Emerging Technology Summit March 8, 2023 ET Company Participants Brett Tighe - CFO Conference Call Participants Eric Heath - KeyBanc Capital Markets Unidentified Company Representative Great. Let's get started. Eric Heath I'm Eric Heath of the enterprise software team here at KeyBanc. Pleasure to have Brett Tighe here with us with Okta and we also have Dave Gennarelli from IR here as well. Question-and-Answer Session Q - Eric Heath So Brett, let's just jump right into i ...

EPR Properties (NYSE:EPR) Citi’s 2023 Global Property CEO Conference Call March 8, 2023 9:15 AM ET Company Participants Greg Silvers - Chief Executive Officer Mark Peterson - Chief Financial Officer Greg Zimmerman - Chief Investment Officer Conference Call Participants Eric Wolf - Citi Research Eric Wolf Alright. Good morning, everyone and welcome to the 9:15 a.m. session and Citi’s 2023 Global Property CEO Conference. I am Eric Wolf with Citi Research and we are pleased to have with us EPR Properties and C ...

Summary of Waste Management, Inc. Conference Call Company Overview - Waste Management, Inc. (NYSE: WM) is the largest solid waste operator in North America, with a strong franchise and robust collection operations [2][5] Core Business Focus - The company has three strategic focal points: 1. **Pricing**: Emphasized as a key focus, second only to safety. The company has seen significant value from pricing strategies over the past few years [5] 2. **Cost Control**: Aimed at permanent reductions in operating costs and SG&A, particularly through labor management due to a shrinking labor pool [6] 3. **Renewable Natural Gas (RNG) and Recycling**: Plans to discuss renewable natural gas plants and recycling facility upgrades in detail during an upcoming Investor Day [6] Financial Performance and Projections - The company projects EBITDA growth from 2019 to 2026/2027 to be between 75% to nearly 100%, which is notable for a mature industry [6][7] - Historical EBITDA growth from 2019 to 2022 exceeded the previously projected range of 5% to 7% [7][46] Inflation and Pricing Strategy - The company faced challenges in 2022 due to rapid inflation, with reported inflation peaking at 9.5%. Labor costs increased significantly, adding $120 million to expenses [10][11] - Approximately 40% of revenue is tied to contracts with a 12-month look-back for pricing adjustments, which delayed the benefits of price increases until 2023 [17][18] Labor and Automation - The labor pool is shrinking, leading to increased turnover rates, which have risen from 15%-20% a decade ago to 20%-25% currently [12] - The company plans to reduce 5,000 to 7,000 roles through automation and technology integration, enhancing efficiency and safety [13][14] Market Position and Volume Growth - The company anticipates flat volume growth in 2023 but remains optimistic about long-term growth due to market share gains from smaller competitors facing labor challenges [29][30] - The business is described as price inelastic, meaning customers are not highly sensitive to price changes, allowing for potential price increases without significant loss of volume [33][34] Green Capital Expenditures (CapEx) - Waste Management is investing $1 billion in recycling, focusing on upgrading facilities with advanced technology to increase capacity and improve material quality [35][36] - The company expects $240 million in EBITDA from recycling upgrades by 2026, with payback periods of 5-6 years [38] Renewable Natural Gas (RNG) Strategy - The company plans to build 20 RNG plants, expecting to generate $500 million in EBITDA by 2026 [27][44] - Waste Management has a competitive advantage due to its 75% natural gas fleet, allowing for better generation of valuable D3 RIN credits [40][41] Investment Tax Credits - The company is looking to capitalize on investment tax credits available for RNG investments, with potential credits estimated around $300 million [47] Conclusion - Waste Management is positioned for significant growth through strategic pricing, cost control, and investments in green technologies, with a clear path to increasing EBITDA and market share in the coming years [46]

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.