1/n Read latest Concalls of some of the world's most valued companies: Cash of their books over $500B.
Microsoft, Apple, Amazon, Facebook, Alphabet.
Mega Thread on Trends, their businesses & how they are dealing with Covid. One by One.
Microsoft, Apple, Amazon, Facebook, Alphabet.
Mega Thread on Trends, their businesses & how they are dealing with Covid. One by One.
2/n $MSFT
"As COVID-19 impacts every aspect of our work and life, we have seen 2 years' worth of digital transformation in 2 months." ~Satya Nadella
Security + Privacy + Compliance: Trustworthy institutions can differentiate+ Monetisation. (World's largest Hedge Fund: customer)
"As COVID-19 impacts every aspect of our work and life, we have seen 2 years' worth of digital transformation in 2 months." ~Satya Nadella
Security + Privacy + Compliance: Trustworthy institutions can differentiate+ Monetisation. (World's largest Hedge Fund: customer)
3/n
"Accelerating Microsoft Teams innovation, adding new capabilities each week, and now support meetings of all sizes, meetings that scale from 250 active participants, to live events for up to 100,000 attendees, to streaming broadcasts."
75m+ daily active users.
"Accelerating Microsoft Teams innovation, adding new capabilities each week, and now support meetings of all sizes, meetings that scale from 250 active participants, to live events for up to 100,000 attendees, to streaming broadcasts."
75m+ daily active users.
4/n
Windows 10 has >1B monthly active devices, up 30% YoY.
Office 365 has 258m Paid seats.
Usage of Windows Virtual Desktop tripled this quarter as organizations deploy virtual desktops to enable secure remote work.
WFH trend. Who benefits?
Windows 10 has >1B monthly active devices, up 30% YoY.
Office 365 has 258m Paid seats.
Usage of Windows Virtual Desktop tripled this quarter as organizations deploy virtual desktops to enable secure remote work.
WFH trend. Who benefits?
5/n
Have 50m+ developers on GitHub.
From Twilio to the U.S. Department of Veterans Affairs, GitHub is where developers go from idea to code and code to cloud.
Largest software repository for Javascript.
"Microsoft was created as a dev tools company."
Have 50m+ developers on GitHub.
From Twilio to the U.S. Department of Veterans Affairs, GitHub is where developers go from idea to code and code to cloud.
Largest software repository for Javascript.
"Microsoft was created as a dev tools company."
6/n
Power Platform: 3.4m+ citizen developers
Create no/low-code apps and workflows in hours or days.
Accelerating Automation.
"If you can use Excel sheets, you can create an app, build a virtual agent, automate workflows, analyze data and share insights in real-time."
Power Platform: 3.4m+ citizen developers
Create no/low-code apps and workflows in hours or days.
Accelerating Automation.
"If you can use Excel sheets, you can create an app, build a virtual agent, automate workflows, analyze data and share insights in real-time."
7/n
Dynamics 365: Remote every part of the operation:
~Manufacturing
~Supply chain management
~Sales and Customer service
Incl. of new scenarios like curbside pickup, contactless shopping, fraud protection (Mastercard: customer), remote customer assistance and operations.
Dynamics 365: Remote every part of the operation:
~Manufacturing
~Supply chain management
~Sales and Customer service
Incl. of new scenarios like curbside pickup, contactless shopping, fraud protection (Mastercard: customer), remote customer assistance and operations.
8/n
LinkedIn: 690m+ Professionals
Learning on the app went 50% increase MoM in March. LinkedIn live streaming went up 158% MoM.
LinkedIn Sales Navigator+ Dynamics 365 gives sales professional tools for more effective remote selling.
LinkedIn: 690m+ Professionals
Learning on the app went 50% increase MoM in March. LinkedIn live streaming went up 158% MoM.
LinkedIn Sales Navigator+ Dynamics 365 gives sales professional tools for more effective remote selling.
9/n
Xbox Live: 90m+ monthly active users
Xbox game pass has 10m+ buyers including Increased monetisation of in-game content & services.
Project xCloud gaming service is launched across 7 countries, 8 more new countries soon: Future of Gaming.
Xbox Live: 90m+ monthly active users
Xbox game pass has 10m+ buyers including Increased monetisation of in-game content & services.
Project xCloud gaming service is launched across 7 countries, 8 more new countries soon: Future of Gaming.
10/n
Cloud Business: Azure
Highest no. of datacentre regions among cloud providers, new regions in Mexico & Spain announced.
Built-in AI capabilities: direct to consumer experiences.
Bots are being used by call centres to healthcare institutions to address needs.
Cloud Business: Azure
Highest no. of datacentre regions among cloud providers, new regions in Mexico & Spain announced.
Built-in AI capabilities: direct to consumer experiences.
Bots are being used by call centres to healthcare institutions to address needs.
11/n
Covid effects:
- The supply chain in China returned to more normal operations at a faster pace than we had anticipated
- Significant reduction in advertising spend
- Slowdown in our transactional business across segments, but particularly in small and medium businesses.
Covid effects:
- The supply chain in China returned to more normal operations at a faster pace than we had anticipated
- Significant reduction in advertising spend
- Slowdown in our transactional business across segments, but particularly in small and medium businesses.
12/n
- In Enterprise Services, growth rates slowed as consulting projects were delayed
- On annual contracts in LinkedIn's Talent Solutions business, renewals were impacted by the weak job market
- Huge improvement in cloud business margins due to increased utilisation.
- In Enterprise Services, growth rates slowed as consulting projects were delayed
- On annual contracts in LinkedIn's Talent Solutions business, renewals were impacted by the weak job market
- Huge improvement in cloud business margins due to increased utilisation.
13/n
Little to no impact due to Covid.
Operating Cash Flow for the quarter: $17.5B (up 29% YoY)
Free Cash Flow: $13.7B (up 25% YoY)
This is Power.
Little to no impact due to Covid.
Operating Cash Flow for the quarter: $17.5B (up 29% YoY)
Free Cash Flow: $13.7B (up 25% YoY)
This is Power.
14/n
Satya explains the change is happening in 3 phases which will generate rev. for the long term:
1st: Immediate Business Continuity disruption.
2nd: Partial Recovery with few workers in office+ WFH
3rd: Permanent Structural change in digital adoption.
Free trials to cash.
Satya explains the change is happening in 3 phases which will generate rev. for the long term:
1st: Immediate Business Continuity disruption.
2nd: Partial Recovery with few workers in office+ WFH
3rd: Permanent Structural change in digital adoption.
Free trials to cash.
15/n
On cloud being a secular shift & how Teams help it:
"Transition to the efficient frontier is to be made as quickly as possible so that our customers can have more agility, more elasticity and better unit economics coming out of this or even while you're in this crisis."
On cloud being a secular shift & how Teams help it:
"Transition to the efficient frontier is to be made as quickly as possible so that our customers can have more agility, more elasticity and better unit economics coming out of this or even while you're in this crisis."
16/n $AAPL
launched an iPad Pro, Magic Keyboard, MacBook Air, iPhone SE with good response. Brand Loyalty in a global pandemic+ Innovation
Allowed customers to skip payments without incurring interest on Apple Card for March & April. Window dressing of NPAs: Goldman Sachs BS.
launched an iPad Pro, Magic Keyboard, MacBook Air, iPhone SE with good response. Brand Loyalty in a global pandemic+ Innovation
Allowed customers to skip payments without incurring interest on Apple Card for March & April. Window dressing of NPAs: Goldman Sachs BS.
17/n
Continued Investment in Apple TV (Netflix is losing billions every year on this), Services like facetime & iMessage hit an all-time high usage.
Compensating the retail employees normally despite store closures. Can attest to that as I have been in contact with some.
Continued Investment in Apple TV (Netflix is losing billions every year on this), Services like facetime & iMessage hit an all-time high usage.
Compensating the retail employees normally despite store closures. Can attest to that as I have been in contact with some.
18/n
"While we felt some temporary supply constraints in February, our operations team, suppliers and manufacturing partners have been safely returning to work and production was back at typical levels toward the end of March."
Supply Chain Management is top-notch.
"While we felt some temporary supply constraints in February, our operations team, suppliers and manufacturing partners have been safely returning to work and production was back at typical levels toward the end of March."
Supply Chain Management is top-notch.
19/n
Great products with high adaptability during these times will define their brand. Helping teachers, students to stay associated.
Made Final Cut Pro X and Logic Pro X open for free for 90 days: Network effects X creators.
Apple Watch health data is driving Telemedicine:
Great products with high adaptability during these times will define their brand. Helping teachers, students to stay associated.
Made Final Cut Pro X and Logic Pro X open for free for 90 days: Network effects X creators.
Apple Watch health data is driving Telemedicine:
20/n
Value Migration to services biz:
515m paid subscriptions across the services on our platform, up 35m QoQ (Highest ever)
Latest survey of consumers from 451 Research: iPhone customer satisfaction of 99% for iPhone 11, 11 Pro and 11 Pro Max. This drives service business.
Value Migration to services biz:
515m paid subscriptions across the services on our platform, up 35m QoQ (Highest ever)
Latest survey of consumers from 451 Research: iPhone customer satisfaction of 99% for iPhone 11, 11 Pro and 11 Pro Max. This drives service business.
21/n
Wearables, Home and Accessories established a new March quarter record, with revenue of $6.3 billion, up 23% YoY.
Apple watch is gobbling up the market share as 75% of the people purchasing it this quarter, were new to the product. (As big as a Fortune 140 company)
Wearables, Home and Accessories established a new March quarter record, with revenue of $6.3 billion, up 23% YoY.
Apple watch is gobbling up the market share as 75% of the people purchasing it this quarter, were new to the product. (As big as a Fortune 140 company)
22/n
Enterprise market: Remote deployments of iPads & Macs & maintaining Security.
"Some of our largest customers offering Mac to employees have been able to easily set up and secure their devices from home, benefiting from Apple Business Manager and zero-touch deployment."
Enterprise market: Remote deployments of iPads & Macs & maintaining Security.
"Some of our largest customers offering Mac to employees have been able to easily set up and secure their devices from home, benefiting from Apple Business Manager and zero-touch deployment."
23/n
Returned $22B to shareholders during the March quarter= $18.5B open market repurchases of 64.7m Apple shares+ $3.4B in dividends and equivalents.
Announced $50B more buybacks adding to a $435B in total. With an avg buyback price of $131 per share: created a lot of wealth.
Returned $22B to shareholders during the March quarter= $18.5B open market repurchases of 64.7m Apple shares+ $3.4B in dividends and equivalents.
Announced $50B more buybacks adding to a $435B in total. With an avg buyback price of $131 per share: created a lot of wealth.
24/n
Severely Affected:
- Apple Care is comprised of our product repair business and the warranty agreements.
- Advertising, which is comprised of third-party agreements, App Store search ads and Apple News ads.
- Commodities that Apple consumes. (Positive for margins)
Severely Affected:
- Apple Care is comprised of our product repair business and the warranty agreements.
- Advertising, which is comprised of third-party agreements, App Store search ads and Apple News ads.
- Commodities that Apple consumes. (Positive for margins)
25/n
Why did Apple saw a sales uptick in April:
-New Products
-Stimulus programs
-Online Education & Remote Working.
Will manage the SG&A portion tightly. Liquidity matters in this environment.
Online sales went crazy. (Overall sales up even after lockdown)
Why did Apple saw a sales uptick in April:
-New Products
-Stimulus programs
-Online Education & Remote Working.
Will manage the SG&A portion tightly. Liquidity matters in this environment.
Online sales went crazy. (Overall sales up even after lockdown)
26/n $AMZN
“From online shopping to AWS to Prime Video and Fire TV, the current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced” ~Jeff Bezos.
+stocking and delivery of essential items.
“From online shopping to AWS to Prime Video and Fire TV, the current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced” ~Jeff Bezos.
+stocking and delivery of essential items.
27/n
In early March, Experienced a major surge in customer demand, particularly for household staples, health and personal care, groceries and even home office supplies.
Lower demand for discretionary items such as apparel, shoes, and wireless products.
+Supply Disruptions.
In early March, Experienced a major surge in customer demand, particularly for household staples, health and personal care, groceries and even home office supplies.
Lower demand for discretionary items such as apparel, shoes, and wireless products.
+Supply Disruptions.
28/n
Reaction: Heath.
6-foot social distancing +100 million masks, tens of millions of gloves, & other cleaning supplies.
Temperature checks across our operations network+ plexiglass between cashier & customers (whole foods)+ Raised wages & overtime premiums for employees.
Reaction: Heath.
6-foot social distancing +100 million masks, tens of millions of gloves, & other cleaning supplies.
Temperature checks across our operations network+ plexiglass between cashier & customers (whole foods)+ Raised wages & overtime premiums for employees.
29/n
Reaction: Business
-Hired 175,000+ employees
-Reduced Marketing spend on non-priority items
-Third-party sellers i.e. mostly MSMEs remained resilient(>50% of sales)
Network pivoted to shipping priority products in 1 to 4 days. The real issues in the supply chain:
Reaction: Business
-Hired 175,000+ employees
-Reduced Marketing spend on non-priority items
-Third-party sellers i.e. mostly MSMEs remained resilient(>50% of sales)
Network pivoted to shipping priority products in 1 to 4 days. The real issues in the supply chain:
30/n
Costs:
+$5B total estimated Covid provisions in Q1&2 ($300m for employee testing)
-Saving substantially in travel, entertainment & meeting costs (Every cost that doesn't create value is permanently removed)
Costs:
+$5B total estimated Covid provisions in Q1&2 ($300m for employee testing)
-Saving substantially in travel, entertainment & meeting costs (Every cost that doesn't create value is permanently removed)
31/n
AWS: Diversified customer base from start-ups, enterprises, the public sector
Video conferencing, gaming, remote learning, entertainment= higher growth.
Hospitality and Travel certainly have contracted
Saving $0.8B+ a quarter due to better utilisation of server assets.
AWS: Diversified customer base from start-ups, enterprises, the public sector
Video conferencing, gaming, remote learning, entertainment= higher growth.
Hospitality and Travel certainly have contracted
Saving $0.8B+ a quarter due to better utilisation of server assets.
32/n
Prime program: A all-in-one package being utilised presently.
Pickup in Prime shopping benefits
Frequency of shopping rose+ larger basket sizes
Increased use of video benefits
+Alexa is showing grown communication on a set of factors.
Prime program: A all-in-one package being utilised presently.
Pickup in Prime shopping benefits
Frequency of shopping rose+ larger basket sizes
Increased use of video benefits
+Alexa is showing grown communication on a set of factors.
33/n
Oil being a major component of long haul transportation: saves a fortune at these prices.
Then again, No demand issue. Bigger problems in:
Maintaining Cost structure, the ability to get products, your capacity for shipping and delivering.
Oil being a major component of long haul transportation: saves a fortune at these prices.
Then again, No demand issue. Bigger problems in:
Maintaining Cost structure, the ability to get products, your capacity for shipping and delivering.
34/n $FB
"I worry the reopening in certain places to quickly before infection rates have been reduced to very minimal levels, will almost guarantee future outbreaks and worse, longer-term health and economic outcomes." ~Mark Zuckerberg
+Limiting the spread of misinformation.
"I worry the reopening in certain places to quickly before infection rates have been reduced to very minimal levels, will almost guarantee future outbreaks and worse, longer-term health and economic outcomes." ~Mark Zuckerberg
+Limiting the spread of misinformation.
35/n
>3B people actively using Facebook, Instagram, WhatsApp or Messenger each month.
Messaging, Voice & Video calling had a surge.
Top Priority: Stability+ Reliability.
Doubling the size of WhatsApp (Most popular end-to-end encrypted calling service) video calls from 4 to 8.
>3B people actively using Facebook, Instagram, WhatsApp or Messenger each month.
Messaging, Voice & Video calling had a surge.
Top Priority: Stability+ Reliability.
Doubling the size of WhatsApp (Most popular end-to-end encrypted calling service) video calls from 4 to 8.
36/n
Other video systems: Video rooms+ Live video (usage is left on the imagination of the users: It's working out)
Other video systems: Video rooms+ Live video (usage is left on the imagination of the users: It's working out)
37/n
Helping Small businesses & Entrepreneurs directly sell items & services from FB: Bye Bye most Indian Startups
Digital Presence= Primary Storefront
This was in line with the investment in Jio Platforms: an initiative to connect millions of shops across India with WhatsApp.
Helping Small businesses & Entrepreneurs directly sell items & services from FB: Bye Bye most Indian Startups
Digital Presence= Primary Storefront
This was in line with the investment in Jio Platforms: an initiative to connect millions of shops across India with WhatsApp.
38/n
Change:
-More segments to build as new needs surface.
-Take market share in products, Fb is able to build.
-Economic recovery will come, this is the investment phase.
+The Importance of maintaining high margins: Learnt in this downturn.
Change:
-More segments to build as new needs surface.
-Take market share in products, Fb is able to build.
-Economic recovery will come, this is the investment phase.
+The Importance of maintaining high margins: Learnt in this downturn.
39/n
Ad revenue for Q1 was $17.4B, up 17% YoY.
Strong growth in Gaming & relative stability in Technology, E-commerce. Severe Decline in Auto+ Travel.
Biz using Fb+Insta over websites, messaging apps for delivering goods.
Sheryl uses stories dramatically for communication:
Ad revenue for Q1 was $17.4B, up 17% YoY.
Strong growth in Gaming & relative stability in Technology, E-commerce. Severe Decline in Auto+ Travel.
Biz using Fb+Insta over websites, messaging apps for delivering goods.
Sheryl uses stories dramatically for communication:
40/n
Sheryl on Small Businesses
"There are 140 million of them, as well as the 8 million who are our advertisers and the funnel between those. That's the nuts and bolts of our business. We're continuing to work on it everyday through this crisis and we'll continue beyond that."
Sheryl on Small Businesses
"There are 140 million of them, as well as the 8 million who are our advertisers and the funnel between those. That's the nuts and bolts of our business. We're continuing to work on it everyday through this crisis and we'll continue beyond that."
41/n
Mark Zuckerberg on Jio:
"All the products and technology that we're building to enable that partnership are going to be things that we want to do around the world... working with them to drive this vision forward and then extending it everywhere over the coming years."
Mark Zuckerberg on Jio:
"All the products and technology that we're building to enable that partnership are going to be things that we want to do around the world... working with them to drive this vision forward and then extending it everywhere over the coming years."
42/n
On Advertising:
"we've seen a fall-off in some of the more sorts of broad-based brand advertising right now and really a focus on those things that are driving direct results today, which isn't really surprising given the economic climate."
Fast Profits.
On Advertising:
"we've seen a fall-off in some of the more sorts of broad-based brand advertising right now and really a focus on those things that are driving direct results today, which isn't really surprising given the economic climate."
Fast Profits.
43/n
On Video Games: VR/AR investments.
"China tends to for us index pretty highly with gaming and e-commerce and those segments that are driven toward online outcomes, where we're seeing strength."
China is not just focused on taking market share, but MIND SHARE.
On Video Games: VR/AR investments.
"China tends to for us index pretty highly with gaming and e-commerce and those segments that are driven toward online outcomes, where we're seeing strength."
China is not just focused on taking market share, but MIND SHARE.
44/n
On Whatapp Monetisation talks:
Talks about ads, payments, more commerce: remains an untapped opportunity.
Tells about how bad this business model is (founded: 2009) & the dreams ahead.
On Whatapp Monetisation talks:
Talks about ads, payments, more commerce: remains an untapped opportunity.
Tells about how bad this business model is (founded: 2009) & the dreams ahead.
45/n $GOOGL
"Newer technologies like AI, Bluetooth exposure notifications, and 3D printing are being used to help fight the disease head-on. It's clear that once the emergency has passed, the world will not look the same" ~Sundar Pichai
ReInvention of business models on the way
"Newer technologies like AI, Bluetooth exposure notifications, and 3D printing are being used to help fight the disease head-on. It's clear that once the emergency has passed, the world will not look the same" ~Sundar Pichai
ReInvention of business models on the way
46/n
"We'll see a long-term acceleration of movement from businesses to digital services...These changes will be significant and lasting."
One prepares for a crisis in good times. & acts fast when it strikes. This helped Alphabet.
"We'll see a long-term acceleration of movement from businesses to digital services...These changes will be significant and lasting."
One prepares for a crisis in good times. & acts fast when it strikes. This helped Alphabet.
47/n
Ad business: Major slowdown in March. (Correlation with virus affected zones)
"Announced that merchants can list products in Google Shopping for free. It's been widely rolled out in the U.S. with more countries to come."
If Google enters your biz, you better change it.
Ad business: Major slowdown in March. (Correlation with virus affected zones)
"Announced that merchants can list products in Google Shopping for free. It's been widely rolled out in the U.S. with more countries to come."
If Google enters your biz, you better change it.
48/n
Ad spends on search is dependant on Economic recovery: due to its quick adjustability feature.
Marketers see it as highly cost-effective & ROI based. Network effects.
Google is better diversified in this recession: CLOUD business.
Ad spends on search is dependant on Economic recovery: due to its quick adjustability feature.
Marketers see it as highly cost-effective & ROI based. Network effects.
Google is better diversified in this recession: CLOUD business.
49/n
Previewed Android 11: Includes seamless 5G connectivity and a smarter keyboard with a faster messaging experience (the current culture drives updates)
2.5B+ monthly active Play devices worldwide.
Youtube Subscriptions at an all-time high.
Previewed Android 11: Includes seamless 5G connectivity and a smarter keyboard with a faster messaging experience (the current culture drives updates)
2.5B+ monthly active Play devices worldwide.
Youtube Subscriptions at an all-time high.
50/n
Biggest costs associated with data centres (Youtube monetisation?)
Content acquisition costs primarily for YouTube's advertising-supported content
+ content costs for YouTube TV (Netflix is a great business)
Youtube advertising revenue up 33% YoY helped.
Biggest costs associated with data centres (Youtube monetisation?)
Content acquisition costs primarily for YouTube's advertising-supported content
+ content costs for YouTube TV (Netflix is a great business)
Youtube advertising revenue up 33% YoY helped.
51/n
Google is focused on 4 key areas:
-Creating Valuable products
-Trustworthy experience
-Executing at scale
-Investing for the future
Betting on the big trends:
"if you are thinking about cars and you've been hesitant to do virtual car showrooming, now is the time."
End.
Google is focused on 4 key areas:
-Creating Valuable products
-Trustworthy experience
-Executing at scale
-Investing for the future
Betting on the big trends:
"if you are thinking about cars and you've been hesitant to do virtual car showrooming, now is the time."
End.
