Alphabet's (GOOG) Management presents at Credit Suisse Technology, Media and Telecom Conference (Transcript)

| About: Alphabet Inc. (GOOG)

Alphabet Inc (NASDAQ:GOOG)

Credit Suisse Technology, Media and Telecom Conference

November 29, 2016 4:30 PM ET

Executives

Sridhar Ramaswamy - Senior Vice President, Ads and Commerce of Google Inc.

Analysts

Stephen Ju - Credit Suisse Securities

Operator

Stephen Ju

Okay. Right. I think we are going to go ahead and started. I am Stephen Ju with the Credit Suisse Internet Equity Research team. And welcome to the conversation with Sridhar Ramaswamy, Senior Vice President of Advertising and Commerce of Google. Before we start I'll read out the Safe Harbor statement. Some of the statements that Mr. Ramaswamy will make today may be considered forward looking. These statements involved a number of risks and uncertainties that could cause actual results to differ materially. Any forward looking statements that Mr. Ramaswamy makes are based on assumptions as of today and Alphabet undertakes no obligation to update them. Please refer to Alphabet's Form 10-K for a discussion of the risk factors that may affect its results. So before we kick it off I think there maybe some of you who may not be as familiar with Sridhar's role at Google. So I wanted to kick it off with the bio. Sridhar oversees all of Google's advertising and commerce products which includes Search, Display, Video advertising, Analytics, Shopping, Payment and Travel. He joined Google as an engineer back in 2003 and since then he has been an integral part of the growth of the Adverts and Google's advertising businesses. Prior to joining Google Sridhar was Director of Engineering for the Analytics platform at E.piphany. He also held research positions at Bell Labs, Lucent Technologies, Bell Communications Research, Bell Corp. Sridhar earned a Bachelor's degree in Computer Science from the Indian Institute of Technology, Madras and he has the Master Degree of Science and PhD in Computer Science from Brown University. He has also published numerous papers on database system and database theory, and holds several patents in that area. Also another preamble in plus one I promise, we are launching a new piece of technology this year in which you can fire up the CS technology app conference app and type in your questions. So open your app and the hit agenda at the bottom of the screen, and locate the session on the schedule and once you click it, you will see an option for live call and Q&A. Click on that and you could submit questions for Sridhar obviously. So that without any further ado we start the Q&A.

So Sridhar we have seen you present at the Google performance summit as well as other industry meeting. But this is probably the first time that's you are speaking in world full of investors. So will you give us quick glimpse into your day-to-day responsibilities and where you spend most of your time?

Sridhar Ramaswamy

Thank you, Stephen.

Stephen Ju

Thank you.

Sridhar Ramaswamy

Glad to be here. I run the Ads and Commerce team and when I speak about priorities both within my team and to external group we as a team focus on key areas like search, video advertising, programmatic advertising and app install at the most. And much of the focus of my team over the past couple of years has been on mobile that's where the growth is, that's not very surprising. And so a lot of the time that I end up spending in day-to-day is on product development and commercialization of our product in these key areas. We made -- we continue to make large and dramatic changes to our products. I think the pace of innovation is really is its strength and a necessity because the world around is changing so rapidly. So a lot of time is spent on product development, else I work very closely with Philipp Schindler who is the Head of Sales on how we actually take these products and commercialize them and take it to advertiser and make sure that they realize the value that we think our product can provide for them.

Stephen Ju

Understood. Now two years ago we had Neal Mohan here on stage. He talked about one of the priorities that Google is to crack brand advertising. Where we are now versus two years ago? What do you think the remaining pain point is, what problem, do you feel like you still need to solve for your advertiser?

Sridhar Ramaswamy

Yes. A lot of our brand advertising strategy unsurprisingly is centered around YouTube which is just an amazing, amazing consumer property with so incredible growth. We've talked about mobile growth being in the many, many ten of percent for example. And so our brand advertising has been focused on things like how do we get our largest advertiser to reach the kind of audience that they increasingly cannot reach with traditional TV. And YouTube and Google are doing very well in video advertising but I would say it's still pretty early. Just this year we've announced a lot of product changes. We are very excited about a new format called bumpers to the six second ad that we think is very, very suitable for mobile and program like Google prefer continued to do very well in terms of attracting commitment and TV dollars. But you are going to see a lot more change come through in how brand advertising is doing. I'd say we are doing well. We have build in large relationships with some of the largest brand advertisers in the world but it's still early. There are still lots more opportunity and growth.

Stephen Ju

Got you. You talked about the rate of change before and need to keep I mean Google has been a very heavy investor in AI so when you talk about your advancement here and machine learning and how this is helping you and your team whether it's in a rollout of consumer facing product or towards to help advertisers to take better decisions.

Sridhar Ramaswamy

Yes. So ads is one of the earliest and largest users of machine learning at Google and frankly the world. This is because we've been very intimately involved with things like predicting click through race of ad which was how good an ad is for a consumer. And we've done this from very early on because we've also used this predicted click through race to price ad. So machine learning has been an integral part of the ad system pretty much since the time I joined. And gosh that was like 2003. And as new ways of machine learning whether it is algorithm based on boosting or more recently algorithm based on deep learning and neural network have been developed. We are often either an early adopters of this technology. And so deep learning and neural networks now are an integral part of how ads are served both on search and on display. And we continue to work closely with these teams. So we've developed many of these innovations ourselves because it has such a big impact on us. But we continue to work closely with these teams to take the latest and greatest in their technologies and make our prediction algorithm more and more efficient. I would say again keeping up with the pace of change that's going on here is really important. And yield rich dividends for the ads team and for Google.

Stephen Ju

Got you. Now on to some of the more recent controversies and topics from investor. Take a step back and look at what spurt Google's advertising revenue growth over the last 24 months or so, some of that see like it has come from an increase an ad load on both search and as well as YouTube. We are not used to think about Google running out of inventory any point soon but how worry should investors be in terms of hitting some sort of ceiling when you tick the sponsored links from two to three and four in some cases.

Sridhar Ramaswamy

Yes. So it is really important and I've stressed this in meetings with many of you, I stress this to my team, I stress this again externally that we put the user first when it comes to consumer experience. So we've developed elaborate methodologies that we've published papers on for things like ad blindness the cost of serving ad to users. And we always optimize for the long term. While it is true that we are serving four top ads for ads for example on a very small fraction of queries and you can determine this number empirically yourself just by running or basket a query. I point out that, that is a very small number and the total number or the total fraction of queries on which we show ads overall has more or less remain constant over the last 10 years because user behavior in terms of what they search for in terms of commercial content hasn't really changed a whole lot. And we think of ourselves as very careful steward of the user experience and we have the mathematical expertise to actually figure out do the change like this good for the long term, what's okay and what's not okay. And we're pretty happy with the trade-off that we've made over the past many years.

Stephen Ju

Got you. Back to the topic of brand advertising in TV in particular. TV ads dollars seems very resilient despite what looks like ongoing declines in ratings so can you help us reconcile this with the growth rate that YouTube is experiencing?

Sridhar Ramaswamy

It's one of those cases that I am -- I don't particularly feel like this has to be an either/ or increasingly if people want to reach audiences of a certain age, the younger audience for example, YouTube is kind of the place to be. And the reach that YouTube offer, again we've published stats on this in terms of things like the 18 to 34 years old demographic stay on mobile that is larger than that of any cable TV channel. It is pretty remarkable. So we have been very good at providing advertising for a very large set of our clients. Regarding there going to be a mass shift from TV this year versus that year that question tends to vary by country. In Western Europe I think TV is still well more established and in the US we also see more and more people coming up with unbundled packages for consumer to use and stuff like that. I think there is a big conversion that's going on. So it might end up being the case that there is not really like one moment in time where there is a mass shift where everybody are out feature those technique in a pretty big way.

Stephen Ju

Got you. Another topic that's recent topic on investors mind. I think everybody is pretty consumed with the topic of seeing the anniversarying of the benefits that Google saw from the additional sponsor links, another quarter of last year. I think recent performance on you were on stage to introduce an array of new products and services updates including spend at text ad, and the ability to bid individually across different devices. So will you give us an updates on how these initiatives are going?

Sridhar Ramaswamy

Yes. Back to the point of needing to innovate continuously, this is still a very nascent field. Mobile commerce is still evolving. We'll talk a little bit more later on about what we like my team is doing to make mobile commerce more efficient. But we think we need to continue to drive the user experience forward. So at the performance summit we introduced what we call enhance text ad, a new format two little separate headlines more suitable for mobile, a cleaned up visible overall, while they seem like cosmetic changes trying to get a business that is tens of billions of dollars large to shift completely over from an old format to a new format is the change that we are in the process of making. It's going pretty well. Advertising are seeing pretty positive results in many cases from this. Similarly tablet bidding was a control that many of our advertisers wanted. They felt like they could realize differential value from doing this. And so that's going pretty well. Things like remarketing for search ad, the top acronym of RLSA that is also something that a lot of advertisers are taking advantage off. In addition, we've also done continue to work on innovation within the core of how mobile search ad work. All of these have kept the momentum going in there. And things like to enhance text ad migration. We expect to be well on our way to finishing it up in the first half of next year. I think overall good positive momentum in the ecosystem. And good positive momentum in the value that advertisers are getting from all.

Stephen Ju

Okay. So I think there is in some quarters and like there is perception that there is lurch forward because of a new product innovation but the case that you want to make is one of continues innovation.

Sridhar Ramaswamy

And again as an engineer and product leader at Google, I focus on how you can get the most changes out the fastest. When you start worrying about a year-on-year comparison, a nice change you are about to launch you are in trouble. There is clearly -- there is a strong belief on the product management on the part of my team that we will continue to drive that innovation forward. And that's really what we push for.

Stephen Ju

Got you. You've also spoken at conferences about being mobile first at Google. Does this open a possibilities for Google to better address the roughly 85% of commerce that is not yet happening online. To the extent, you have introduced new features to help advertisers track store visits. What has been the reaction from advertisers and how nascent is this opportunity for you?

Sridhar Ramaswamy

Yes. So I talked in a number of places about how mobile can drive an enormous amount of local commerce as Stephen said 80% plus of commerce happens locally and advertising clearly influence the some of it but how do you create product that actually make a measurable difference to retailers. So we've worked on things like local inventory ads which are now a three year old product that helps you see what is available from the stores around you. In addition, we've done things like put location extension when you search for a store or a particular product so that advertisers can tell you, hey; this product a bicycle is actually available in the store that is next to you. So based on our location data that we get from people that use our apps and phone, we release a product called store visit about I think two Decembers ago on 2014. And we've been scaling it up to more and more countries and it have been in 11 countries. So roughly speaking an advertiser can see how many store visits to their location that they give that actually driven by click that happened on their app. That's one thing to be, a lot of them are very happy to see this metric. But of course there are a follow up questions of how much of this is incremental. How do you value this in the context of the advertising dollars that I am spending overall? Probably we are able to make the math work for them where they take things like average out of value that a consumer spends when they walk in to a store and back out of value that they should be putting into bidding our spending. But as you can imagine this is a complicated process because most retailers manage their local store budget, advertising budget completely different from their online budget. And it's really this conversation that we are in the process of driving. I'd say they are still early nascent conversations. How to turn it all into a kind of efficient feedback loop that Google search advertising is so famous for. That's a work in progress.

Stephen Ju

Understood. Building on the offline commerce discussion I think Google has recently taken steps to show advertising on maps.

Sridhar Ramaswamy

Yes.

Stephen Ju

How is this progressing and what are the challenges to monetize map effectively?

Sridhar Ramaswamy

It's still super early. We are very conscious of the need to be again very thoughtful about user experience and user value. And efforts announced and some of the reporters were like oh are you going to show ads that are driving direction that might be distracting. So we are still iterating on the format. We are running a number of experiments. It's pretty early to say anything definite about it. But it is an area that we'll continue to invest in. You'll see more about in the next few --

Stephen Ju

Got you. Let's talk about travel. Switch gears a little bit. So you've recently released Google Trips which help --

Sridhar Ramaswamy

The app

Stephen Ju

The app itself which helps consumer plans their trips better. Seemed like to me that between flight and hotel search and the underlying pieces are there for Google to create probably an inter modal search engine. If I wanted to go on to trip Barcelona, I need just to been in Barcelona, you should be able to put together the entire trip for me. Is Google Trips basically the first step towards that goal?

Sridhar Ramaswamy

So I'll place this into a larger context of mobile search needing to satisfy your goal or your task as opposed to answering a query that you have currently. This is a vision that Larry has talked about before publicly a vision of assist and suggests where we do more than answer a query. What you are seeing in travel is one expression of that. And this is where you see the full strength of Google come into play. Google flight is an amazing product. It can answer questions that most other search engine, flight search engine cannot really answer on questions like I want to go a funny place or what are all the locations I can flight to from San Francisco within a certain budget range. So we are pretty excited by that. We are pretty excited by our ability to make recommendations to you. For example, if you visit a new place and use a trip app you can come up with the list of essentially highlight all new that you can go and visit and have been pleasantly surprised I have gone to different towns and realized wow there is dam right next door. So I think we are interested first and foremost in creating a great consumer experience. We think things like monetization in areas like hotels and other places that we might look at that naturally come. So our scale product is still search and if we can help you do a great job in terms of planning a trip whether its flight or hotel or other attraction, I think we actually have done a pretty significant job. But if we can even convince you as a consumer to use the trips app and have all of that information available even offline mind you, one of the things that all of us run into as we go to new place, our plan quite doesn't work and it becomes a struggle to actually use our phone. Trips apps make that easy as well. So it's part of larger consumer vision of what we think travel can be. And we've been very much at the mentality of if we get the product right we will get monetization opportunity.

Stephen Ju

Yes. Well, here is to hoping that it is the next step billion dollar -- a billion user platform some dark in highlight --

Sridhar Ramaswamy

Our hope as well.

Stephen Ju

Okay, got you. So talking about assistance, as you look longer term you talked about mobile first world, are we moving to a voice driven world and in that world what kind of ad units do you think Google might be serving?

Sridhar Ramaswamy

I think we need to be open minded about this. At this point, the assistance team and there is an assistance team within my group as well. And the main assistance team is part of the search team. They are laser focused on creating an amazing consumer experience, on making sure that experience is really, really a joy for people to be using. We are keeping an open mind about the kind of monetization opportunity that they are going to be. I think it can range from being purely transactional meaning we make it convenient for you to fulfill a transaction with this assistance or it can involve promotion. But one thing that we are all clear about is the days of three top text ads followed by 10 organic results is a thing of the past in the voice driven world. So we are very much keeping an open mind on what this needs to be and focusing much more on what's the consumer experience, it's scale, we'll figure that as we talk about.

Stephen Ju

Yes. It seems like to me if you make it easier for the consumers to do something they should be doing more of it.

Sridhar Ramaswamy

That's correct. I mean this was our thesis for mobile. If people think there are lot of worries about it was mobile incremental, was it taking away from desktop but it turned out that mobile expanded the pie. We need to have a similar positive attitude towards wide search and assistant and focus on creating great consumer experience.

Stephen Ju

Yes. Another sort of topic let's talk about ad blocker. So seems like for search and YouTube it should not be a huge problem but it does affect your display business. The fact that consumers opting to use ad blocker as a single for change right. What can Google do help the consumer as well as the advertisers?

Sridhar Ramaswamy

Yes. It is a real problem. And as you correctly point out it is consumer-ish. I think there are still too many site in which the ad experience is pretty ad. Whether its ads that start auto playing a video or ads that completely color up a screen and you can't quite find the ad, all of us have been through it and it can be very frustrating. So we announced recently just a couple of months ago that we are going to be a part of coalition that the IAB in New York which is a US advertising body, we are starting, this is coalition for better ad. We are working with them to come up with a quantitative standard for what an acceptable ad experience is going to be. And then we want to work with a larger ecosystem of browsers for example to make sure that there is pressure and self regulation on the part of advertisers and publishers to only lead on that consumer don't find offensive. I think that is very, very sorely needed and we think that's the right way out of this current problem. I think without self policing there is going to be more and more bad experiences and more and more consumers turning off ad kind of across the whole. And I think frankly all of us suffer because it is going to drive a lot of small publishers that are valuable site that you and I use on a regular basis out of business. So we feel very passionately that is part of Google's larger mission of making the world's information be available to everybody and so there is some sense of urgency that we feel about getting this coalition right and making sure that it's rolled out right.

Stephen Ju

Yes. And the other product that you introduced recently accelerated mobile pages. How does this help you toward that end goal?

Sridhar Ramaswamy

Accelerated mobile pages were an attempt at a much better consumer experience. It started with a narrow vertical in mind, a news vertical and as you see that on results if you search on Google for news. It's been doing very well. And it's based on an open standard, anybody can adopt it, anybody can run accelerate on mobile pages. It doesn't have to be just Google. And people have introduced ad format into accelerated mobile pages. Results are pretty early from that front in terms of how does a monetization compared to the increased number of page views that you get from having faster loading pages. We continue to work on making that better. But in general we think that mobile ecosystem can be made much better for the consumer. And doing that they'll actually lead to increased usage.

Stephen Ju

Understood. Switching topics a little bit. So advertising -- advertisers have been grappling this year with issues around transparency. There are well publicized issues with third party auditing of Facebook compression and recent ANA report about was pre-scatting on the use of rebates by ad agencies. So do you think advertiser concerned about transparency helps or hinders Google's ad business in general?

Sridhar Ramaswamy

So you actually asked a complicated two part question. One was around metric and transparency. We worked closely with third parties, ComScore or Neilson to make sure that the results that we provide for display advertising are measurable, verifiable by third party. We've been very open about that. And recall also that a vast majority of Google's revenue comes from direct response advertising which has built in measurement, it is based on conversion that advertiser see. So values being measured clearly and by the party that is most affected by. So we think we have overall a good story in terms of working with the industry in making sure that metrics that we give for brand advertising are real and verifiable. On the other side when it comes to our interaction with agencies and advertisers we strive for transparency. We don't do secret contracts. We have all of these information be available to folks so that agencies and advertisers can have the right conversation about where these dollars go. So we feel pretty good about where we are on both these fronts. And we'll continue to work with our big advertisers and agencies for making it even more transparent, making sure that people feel like fair value is being realized for their dollars and for their effort.

Stephen Ju

Got you. Another sort of somewhat general question but wondering if you can talk about the underlying trends you are seeing for problematic, Ruth highlighted it as growth drivers in recent earnings conference calls and secondarily header beating comes up as an issue for a display business. So are you concerned -- if you can go into the little bit about what header beating is and how that impacts you and what is your concern?

Sridhar Ramaswamy

Yes. So I mean header beating is a technique by which publishers try to satisfy the demand for some of their pages even before things like Google site exchange are called, it is a way for them to realize more value on their most valuable pages. And we have -- header beater by itself is not bad. Its implementation can be bad sometimes in that you end up having a lot of calls on the client site that can slowdown the loading of the page. So we work with publishers to see what all technologies that are needed in the underlying platform. We have a version of header beater called exchange bidding that's built right into our platform product that a number of publishers are using. So we will figure out where this -- this is -- at the end of the day Google's publisher product need to serve publishers. We need to make sure that they can realize the most value that they can for the content and the eyeball that they have. So we don't particularly think of it is a threat to our business. But an important evolution in the business that we are happy to be a part of. Now going to problematic, DBM is one of the process growing problematic products ever. We've talked about it in multiple earnings call. Overall, it has excellent usage by top advertisers; of adage top 100 advertisers something like 80% plus of them used DBM to get widespread adoption. We have very solid growth across the board. It is an area that you are very, very happy and comfortable.

Stephen Ju

Got you. At IO think Google, if it is updates to Android page and make it easier for consumers to pay for merchandize in the mobile app. Anything you can share in terms of consumer adoption and benefits and conversion that advertisers maybe seeing presumably that helps to take down transactional friction overall.

Sridhar Ramaswamy

Yes. Reducing transactional friction is really important priority for the commerce part of my team because that ends up helping scale our advertising product. We announced a pretty ambitious program based on a change to Chrome that can be used to provide a much better payment experience for consumers payment credential. But that requires changes on the part of the retailer. So even before going there I'd highlight a simple feature that we launched in conjunction with the Chrome team which is called payment auto fill. I don't know how many of you have used it but I have my credit card that is stored on Android pay available to me whenever I am filling a credit card form on my phone, also on my desktop. And that is actually been a significant factor in making commerce easier for me and for a lot of other users. We think that's a really important thing for us to be doing. We announced partnership recently with both Visa and Master card in order to facilitate better payment credentials transfer on the web. It is a sad truth of today that in app payments on both Android and IO worked much better than the web, are those to make sure that is actually transparent across the board. We cheer Apple's effort for example to make transactions much better on the mobile web on Safari that makes mobile commerce better overall. And ends up helping everybody in the mobile ecosystem including of course Google. So I think nice progress overall in these areas.

Stephen Ju

Yes. I think at the time you showed up the product at IO I think you disclosed that the gap in a conversion rate is I think 66% versus I think the desktop.

Sridhar Ramaswamy

I don't recall that number.

Stephen Ju

I think there is pretty healthy gap that you can close and that theoretically should help ways the value and ad inventory over web okay. Got you. And another core product that we saw at IO is really didn't get that much press. I think it was like special recognition technology that you have on a phone that helps you I guess plan out or map out to your interiors of buildings. Can you talk about the potential for the commercialization of this technology?

Sridhar Ramaswamy

That's not from -- it is not from my team. I'd say that part is still early but we are definitely interested in much better location data for all the reasons that I talked about earlier because products like search advertising in general can end up driving a lot of store business. We worked extensively with many advertisers to deploy LE bluetooth low energy beacon that can be used to better detect anonymously in aggregate when users actually walk into store. We think location continues to hold a lot of promise but the killer app for location one that compels you to take your phone out when you get to locations hasn't quite happened. And we feel still optimistic about it. But it's been a slow change.

Stephen Ju

Okay. Got you. Taking a step back looking at more global perspective. Seems like in US we are shall we say a little bit overburdened with the existing infrastructure whether it's in commerce or advertising and on some cases the emerging market countries they may skip building and get physical infrastructure and go straight online so like what's your perspective in terms of whether I guess the pace of innovation internationally is faster this year, there is the international franchise going to be faster going for Google.

Sridhar Ramaswamy

Yes. I think this is a really interesting question. And one that brings many different perspective. Truly, yes, we are burdened in a number of areas the things that work pretty well. What I mean by that is when you talk about Android pay you are talking about an experience in which you have to take out your phone, unlock it and then go and tap. Compare that until very recently. We are taking out credit card, swiping it once and three second later the transaction is done, okay. That's the legacy technology except that it works really well. And so something like Android pay or person to person payment is not the math phenomenon that it is in a place like China. Similarly, when it comes to commerce as we were talking you can pretty much order from the top 100, 500, 1000 retailers within the US. And you can be pretty guaranteed of a very good experience. Things will show one time, if you don't like it. People will take it back. Not that case in emerging market. So I think it becomes a little hard to compare. There are many people that are coming online in emerging market who went straight to a mobile only experience. So they are much more comfortable doing commerce. That's a positive but you are also seeing several countries and truly this happen in China where Google doesn't really a play a role where it tends to get dominated by one or two people. And when there is one or two people dominating an area there is not much of foothold for advertising because you have to go there all the time. So I think it's a tough comparison. I think there are many advantages here with the diversified commerce world and well developed infrastructure. But then you also have a population in areas like China and India that's very, very mobile first much more ready for change.

Stephen Ju

I think lastly, Sridhar, I think your title you run all of advertising and commerce and I can't help think that within Google's product portfolio from the top of the consumer marketing funnel to pretty much the bottom, all of the underlying pieces are there for Google to help advertisers drive volume right. So can you talk about where are you in terms of that opportunity linking at all together? Broad question there but --

Sridhar Ramaswamy

Yes. That part -- it is a work in progress. I think a number of pieces are definitely in place. Truly, we do an exceptional job close to the bottom of the funnel. Search is incredibly effective as a medium. We do a pretty decent job close to the top of the funnel where YouTube brand advertising is pretty effective. We are increasingly working at torso product, for example the shopping team has done a number of nice launches to help you client say the look for a dress that you are interested in. Where you don't quite know which you know the exact the dress or shirt that you want but you are able to look at a particular designer or a particular store for collection. So we have efforts along those fronts. We are also working on personalization across these formats and here actually we have a number of products that we are rolling on that have a lot of promise because there is something like universal app campaign. An advertiser tells us here is my app and here is some assets whether its images or videos and here is the price for install that I am willing to pay, go find me all the consumers that you can. All of a sudden now we have a rich canvas in which I can show you a brand ad for this app potentially on YouTube and actually convert you on some other product like search. So we think construct like that the universal app campaign like effort are going to really deliver a product that's much more end-to-end because you now have a canvas that can stretch across all of different Google's property. That's a vision we are driving towards but it's individual pieces that are being worked out.

Stephen Ju

Great. Well, looking forward following a progress in years to come. Thank you very much, Sridhar.

Sridhar Ramaswamy

Thank you.

Question-and-Answer Session

Operator

Q -

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!