Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
And I think I feel we're well positioned, but it's a huge trend these factories of the future
So it's a real meaningful impact if you connect everything and something happens and the network is down, right, like and we are well positioned because IT we truly understand and we have been for the last five years working with some of these OT vendors who supply these machines to those factories
The Splunk acquisition plays really nicely into how we can grow this story
Whether it's real share gain or loss, depends on after you average out four quarters, right? Like so I would say, go look at our Campus Switching, Campus Wireless business, already because we shipped out so much in the last three, four quarters, we had healthy share gains
And so we feel very well positioned
Ethernet based switching, which today has low share is something that we expect will gain share, and Cisco should gain share with that
And do I have the network for that? And I think we are very well positioned to ride all those trends
So there's a very good reception
Our renewal rates are trended in the right direction, and we think we have upside because our hardware now can work both on cloud and on-prem
So I think on the market share, if you look at the last three, four quarters, in our Campus Switching and Campus Wireless business, we're actually gaining share
Think about six years ago, if memory serves me right, that's when we made this big move to subscription, right? We are seeing very good adoption
We have an industrial IoT portfolio that particularly around IoT switching, that has been doing very well historically
And we are seeing significant adoption growth in Catalyst Center over the last 18 months
But you guys have much better margins than they do
Data it's literally all of the traffic, and Cisco has earned that trust
That's again outside campus but a little closer because as these learning models scale to enterprises, they would need GPU capacity and so this partnership helps NVIDIA and Cisco give that to our enterprise customers
Our adoption on the Meraki portfolio, which is our cloud delivered portfolio, and renewal rates are very, very high, right, like near perfect, if you will
And so I’m really hopeful that whatever you’re seeing is very ephemeral
Adoption is looking good
So adoption is looking good
So that’s a tailwind
So I see us playing AI there, but fundamentally, the one thing that we don't talk enough about is Cisco is a trusted partner in all of these AI models
America's is recovering a little faster than Europe or APJC is, so that's one early evidence
And I think that's something that can be a driver, if we can deliver solutions that actually span that experience
The number of ports those offices required and so this is basically everything is PoE powered, including your desk, a lot of lighting and so it’s extremely power efficient
I think, I finally feel confident if it was just due to a supply chain, we will take back because our supply chain is now fully normalized
Like if a downtime cost you so much dollars relative to the CapEx cost, then they're going to want the software value to be high and that's what we are seeing
And we think that will be a driver of adoption and renewal for our mid market and below segments that are on prem Cat9K today
I think the lines are going to blur even more with where we are taking a portfolio where we no longer, if I play out two years from now, we are already well on our way in Wi-Fi
Sustainability is a big driver as well
       

Bearish Statements during earnings call

Statement
Historically, any vendor, including Cisco, has struggled to execute this
What we are now seeing is a softness in demand relative to that long-term trend line
And all of our competition compete with us in these silos, and we have had some share loss, gain, et cetera
Second thing we are seeing is some macro softness, a little bit of global softness, but there are specific spikes in a few areas, like certain countries in APJC and Europe, we're seeing a little bit more softness than in the Americas
And our SP and cloud have – segments have been softer than our enterprise segments
So, global softness
Like in our Atlanta office, we saw a 30% drop in our overall power consumptions after we digitized, and we had POE where you could turn things on and off basis actual occupancy
And the market underestimates the power of that platform solution we can provide
And for I think for they said for every minute of downtime during a main shift, it's like $12 million loss for this particular because eight cars fewer are produced
Unidentified Analyst [Question Inaudible] Greg Dorai I don’t – it depends, right? I think it sort of has geographic variance to it, right? In APJC, in certain markets, we couldn’t really participate fully during the demand uptick and we did lose share there
And so adoption has been a hurdle
And we know that it’s below that trend line right now
In North America and Europe, yeah, I agree with that statement, right? Like if we had lost share, it was largely due to supply unchoking at different parts, and it’s not been significantly different post-pandemic
But in those segments, if you do want to gain share, and that's your strategy, you have to be price competitive
So there was a lot of excess shipping if you look at our historical trend line that we did in the last three, four quarters
When you look at sort of the long-term competitive landscape, it feels like they basically grew because you guys couldn't deliver products in time due to the pandemic supply constraints
Meta Marshall May be just – you mentioned kind of the softness near term being from digestion of supply or just inventory digestion
The headwind for that has been hybrid work and that this – or will we shutdown offices and therefore the campus ports drop? Of course, if you're living in New York or San Francisco like I am, you do get this real fear, because return to work has been a little slower, but anywhere else in the world, it's actually on an uptick because people are being mandated to come in across Europe, across APJC, across smaller cities in the U.S
Hey, you did a config change in the switch three days ago, and that's correlated to this problem we are seeing here, so you should go and undo that change
All of us knew it
   

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