Microsoft Corporation - Shareholder-Analyst Call - NasdaqGS:MSFT

NasdaqGS:MSFT

During the Microsoft Corporation Shareholder/Analyst Call on September 19, 2013, "B. Turner" (whose full name is not provided in the transcript) made several statements in response to questions and comments. Here is a detailed summary of his contributions:

1. Regarding Azure Margins and Workloads:

   • On the question about Azure's commitment to match Amazon's prices for compute, storage, and bandwidth, and how to think about Azure's margin structure given Amazon's low-margin strategy, B. Turner responded by highlighting the difference between Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).
   • He noted that while IaaS economics have lower margins, Microsoft started Azure with PaaS, which they believe has leading-edge technology compared to competitors, including Amazon.
   • In the PaaS space, Microsoft sees higher margin potential due to customers rewriting their applications for the cloud, leveraging pay-as-you-go services, and fully utilizing cloud services.
   • The strategy is to onboard customers with IaaS and then upsell them to PaaS as they evolve their IT departments.

2. Monitoring Cloud Business Growth:

   • When asked how investors should monitor the growth of the Cloud business, B. Turner mentioned that the new reporting structure would provide clearer and more granular insights into cloud services, both consumer and commercial.
   • He suggested that the level of detail and precision in the reporting would be significantly improved compared to previous reports.

3. Responding to a Question on Mile Markers in New Reporting Structure:

   • Although the question was directed at Amy E. Hood, B. Turner interjected to emphasize the importance of the new reporting structure in providing clarity and precision regarding cloud services.

4. Setting Clear Targets for Priorities:

   • In response to a question about setting benchmarks for success in Office 365, Azure, Windows PC, and mobile devices, B. Turner indicated that clear targets had been set for these areas for the current and next fiscal years.
   • He highlighted that these targets were quantitative and that employees were compensated based on achieving them, indicating the company's commitment to these goals.

These summaries provide a detailed overview of B. Turner's contributions during the call.

The transcript provided does not include any statements made by an "Unknown Executive." All executive speakers are identified by name in the provided text. Here are the named executives and their titles:

• Amy E. Hood - Executive VP & CFO
• B. Turner - An executive whose first name is not specified
• Christopher Suh - Former Corporate VP & CFO of Cloud+ AI Group
• Julie Larson-Green - Former Chief Experience Officer of Office Experience Organization
• Kirill Tatarinov - Former Executive Vice President of Microsoft Business Solutions
• Lu Qi - Former Executive Vice President of Applications and Service Group
• Satya Nadella - Chairman & CEO
• Steven A. Ballmer - Former Director
• Tami L. Reller - Former Executive Vice President of Marketing
• Terry Myerson - Former Executive Vice President

If there were any statements made by an unknown executive, they would be listed under "Unknown Executive (Executives) Say:" but there are no such entries in the provided transcript. If you have specific parts of the transcript you'd like summarized or questions about, please let me know.

Christopher Suh, the Former Corporate Vice President and Chief Financial Officer of the Cloud+AI Group at Microsoft, made several comments during the Microsoft Corporation Shareholder/Analyst Call on September 19, 2013. Here is a detailed summary of his remarks:

1. Opening Remarks:

   • Welcomed attendees to the 2013 Microsoft Financial Analyst Meeting.
   • Noted that this was the first analyst meeting in a couple of years and that Microsoft had decided to communicate more frequently at events such as product launches.
   • Mentioned recent events, including Build and E3.
   • Acknowledged the decision to hold a focused event dedicated to the investment community due to the significant changes happening within the company.

2. Forward-Looking Statements:

   • Reminded attendees that the presentations contained forward-looking statements about future events.
   • Emphasized that these statements were based on current expectations and assumptions subject to risks and uncertainties.
   • Directed attendees to the Risk Factors sections of Microsoft’s SEC filings for details on potential risks.
   • Stated that Microsoft did not undertake any duty to update any forward-looking statements.

3. During Q&A:

   • Responded to questions by directing the flow of the event and indicating when to move to specific questions or paddles.

4. Closing Remarks:

   • Announced the conclusion of the Financial Analyst Meeting.
   • Thanked attendees for coming and participating.
   • Invited attendees to stay for a reception and informal conversation with Microsoft executives.
   • Mentioned a survey that some attendees had completed and announced plans to select a winner the following week.

5. Additional Comments:

   • Christopher Suh also mentioned an audio gap, suggesting that parts of his remarks may not have been fully recorded or transcribed.

Throughout the call, Christopher Suh primarily facilitated the event, providing introductory remarks, moderating the question-and-answer session, and closing the meeting.

During the Microsoft Corporation Shareholder/Analyst call on September 19, 2013, Amy E. Hood, who was the Executive Vice President and Chief Financial Officer, made several statements. Here’s a detailed summary of her comments:

1. On Guidance and Outlook:

   • Amy recognized the challenges in providing clear guidance and outlook, acknowledging that the methods used in the past may have been difficult to follow.
   • She expressed a commitment to improving the clarity and insight provided in future guidance.
   • She promised to give it a good shot in the upcoming quarter and invited feedback from analysts to ensure improvement.

2. On New Reporting Structure:

   • In response to a question about the new reporting structure and whether it would simplify targets for the street, Amy indicated that she hoped to provide more insight and clarity on the outlook.
   • She acknowledged the frustration with multiple metrics and committed to working on simplifying the guidance process.
   • She invited further feedback after the first quarter under the new structure to assess its effectiveness.

3. On Measuring Success:

   • Amy confirmed that clear, quantitative targets had been set for the four strategic priorities (Office 365, Azure, Windows PC, and mobile devices) for the current and following years.
   • She noted that these targets were known and understood by the sales team and were tied to compensation, indicating a strong alignment between strategy and execution.

4. On Unearned Revenue Disclosures:

   • In response to a question about unearned revenue for businesses transitioning from a licensing to a subscription model, Amy confirmed that unearned revenue would be included in the key performance indicators (KPIs) to be shared in the near future.
   • This disclosure would allow analysts to monitor the booking process for these businesses.

In summary, Amy E. Hood addressed concerns about guidance, outlined the company's commitment to clearer communication, and provided details on the new reporting structure and measures of success. She also confirmed that the company would be disclosing unearned revenue to help analysts track the progress of subscription-based businesses.