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AnswerAngela Hwang: So, it'snot just COVID. And maybe I should just add that. So, we're notbecause if we talked about COVID, that could be the entire day.

AnswerBernie Clark: That's right, that's right. AnswerJonathan M. Craig: We do hear that much less and less. Analyst:Brian Bedell QuestionBrian Bedell: Thanks. Brian Bedell again. Just go back to the USAA referral agreement, 13 million members. Can you just talk about maybe some expectations about the potential win after that closes to convert some of those users that are not currently on the Schwab platform over to Schwab ? I don't know that we've shared or have specific numbers. What I can tell you is we are the exclusive referral partner for USAA. And what I can tell you is with that, we have a common interest financially and just in terms of serving their members to get their members to Charles Schwab, if they're looking for wealth management or brokerage / investing services. The values thatworking with USAA has just been a fantastic experience. We've had a lot of work with them. And I have complete confidence. They said to us early in the relationship that, in their words, didn't really want to exit the business. Many, many times if someone wants to exit, they just want to sell it. That was not the case with USAA. So we'll have to deliver. I don't have numbers that I can share with you today. But I think it'steed up for us to be a pretty significant opportunity, just based on the size of the membership, the number of new members they add every year, and the strength of I think the Schwab offer for those members. QuestionBrian Bedell: And is the staffing going to be increased I guess for that opportunity right after the deal close ?

AnswerCarlos A. Rodriguez: Sure, I'll take the first part, and I'll let Maria take the second part. On kind of the HRO business within ES, which as you know is kind of our full outsourcing solutions or without the coemployment, the growth there has been quite robust on bookings which obviously then is driving really robust growth in revenues. Retention rates are holding up, not just holding up. I think they are up versus the prior year which was already a strong year. The PEO obviously is doing incredibly well also, and you can see that as a separate segment. It's a little harder to see the HRO business. It's also getting big. I think if I'm not mistaken it's, I've probably never publicly disclosed it, but it's getting close to... AnswerDon McGuire: $1 billion. AnswerCarlos A. Rodriguez:...$1 billion in revenues so that's a pretty solid business with, again, withoutprobably not right to give you too much detail, but revenue growth is strong doubledigits, very strong doubledigits with a 2 in front of it, say, and bookings growth is incredibly robust as well, retention is strong. It's just a really performing very well. AnswerMaria Black: With respect to the new user experience, so I mentioned a bit about it during my prepared remarks. Very excited obviously about the impact of the user experience across the entire portfolio. However, we definitely believe in what we've developed and the impact it's going to make. So just to give a tiny bit more color, the new user experience is really based on a researchdriven design. That researchdriven design included our clients as well as our prospects to create a user experience, that's very actionoriented in its navigation. What that means specifically is the ability to move through the process, payroll, if you will, or to your question, the ability to buy and attach in a very actionoriented navigation, which means you don't really need to know what's next in order to move throughit So the other part that we're very excited, I mentioned rolling out the new user experience across the ADP mobile app. The mobile experience, one of the things that will really become a competitive advantage for us is the fact that the mobile experience will be not just for the end user such as that person that would actually purchase Wisely, but also for the practitioner. QuestionPeter Christiansen: Thank you. Thank you, both.

And then, Ernie, any color on where the customer traffic is coming from ? Any general views on, again it'shard to do, but segmenting the traffic growth between new and returning customers ? AnswerErnie L. Herrman: Yeah, very broad. In fact, we talk about those. We believe we're attracting newer customers to our business just generally speaking. Which I think you were just asking about as well. QuestionSimeon Siegel: Perfect. Thanks a lot, guys. Best of luck for the rest of the year and happy holidays to you and your families. AnswerErnie L. Herrman: Same to you and thank you. Operator And for the final question of the day, we'll go to the line of Ed from Piper Sandler. Analyst:Edward Yruma QuestionEdward Yruma: Hey. It seems like that's getting some traction. Would love to just kind of think broadly about the opportunity there, if you've been kind of making some of those explosions as you've called them within the category and kind of what the relationship has been like with those vendors given that that hasn't historically been an area of focus for offprice ?

Of course, we knew there would be a lot of interest here. Obviously, we need to further test that in Phase 2, since the Phase 1 trial only included up to three doses.

And so I think it's a story thatit's very positive from a market share position.

Lars Moravy Vice President, Vehicle Engineering at Tesla I mean, beyond that, Elon, like in the vehicle space, even though the market is shrinking, we'regrowing and EVs have doubled almost yearoveryear.

And for my followup, Devinder, maybe one for you on gross margins, how much of the writeoffs and pricing actions that you are taking in -- that you took in Q3 and are taking in Q4, how much are they recoverable in Q1 ?

Now to Dynamics 365, we are taking share as companies in every industry turn to new business applications to grow. Our customer data platform, Customer Insights, leads its category and has helped customers unify over 2 billion customer profiles, providing a single view of interactions across marketing, sales, and ecommerce to deliver more personalized experiences.

Inc. and for instance, usually I'm speaking to you from the top of Salesforce Tower, but today I'm speaking to you from my home, as I suspect many of you are in your homes as well.

I think we've always had the credibility. We have the infrastructure as well, some of the things we've done with our partnership with Trade Desk and other things like that. It's more automated, more self service than we've had in the past. The credibility has always been there in that space. We've been a little selflimiting on this the past few years. And we've gotten comfortable that we can do that and still grow a sizable advertising business. And I think there were some people, it was a little larger than they anticipated. QuestionMichael Lasser: Yeah. AnswerBrett M. Biggs: But I think you can sit back and look at it and say there's definitely room to go in that business. And you talk about the number of levers increasing. What I'm excited about is they have increased, particularly with some of the newer businesses that we have, but it'snot like I'm talking about 100 levers.

And from the point of view of income, it is expensive to be poor in the United States. When you look abroad, of course, the challenges are evident.

It's, I mean, this has been unprecedented as you know. All of our plants are now at or near our preCOVID levels of production. In fact, we're at 97% of preCOVID levels.

My second question is actually on M&A and just consolidation. And if you think back over the last few years, you've had a great track record, the Noble deal in 2020, REGI more recently. I wonder if you can talk a little bit more about how you'reviewing the landscape for further acquisitions, Upstream, Downstream, and even New Energies going forward. AnswerMichael K. Wirth: Sure, Devin. So, we're always looking. And so, we watch companies. We watch sectors. We watch opportunities. We've had a pretty high bar, which is why we've only done a few deals. And as you say, we feel like the deals we've done are likely to turn out well. We've got a strong portfolio. We've got a really strong base case. Otherwiseso, I would just say we'redoing to continue to be very disciplined. We've sold assets out of our portfolio at well times. You need fewer and stronger companies. That normally happens at the bottom of the cycle rather than at the top of the cycle.

So a couple of things. I think you raise a very good point. So what goes into packaging, and so that has been something that we've been doing for several years now. The point you make in X1 is game changing in that as we look at and we aggregate all the different apps and all the content that's available and the ability to connect all these assets through the great voice recognition capability delivered 9 billion voice commands last year. So X1 just gives us strategic flexibility with programming options. And we look at it very broadly that way and we provide, I think, the best live, the ondemand in terms of DVR and then now with all this new content that comes on, I think, it just gives us the strategic flexibility. So I think it's a very good point and we look at it that way. AnswerJason S. Armstrong: Thank you, Rich. Can we have the next question please ? Operatory: Your next question will come from the line of Craig Moffett with MoffettNathanson.

QuestionVivien Azer: My followup question, then, is on the Swedish Match margins, which came in quite nicely. I was just curious, given the incremental inventory benefit that you saw in California, like how should we think about the 1Q margin in context of a normalized margin ? Was there an incremental margin benefit that we should be backing out mentally as we think about what the appropriate level of profitability is for that business ?

This is ait's pretty dynamic, fluid situation, obviously. The industry did not drop probably as deeply as some might have expected. If we use China's as a template, what we saw there was that the business atone point had dropped off to roughly 90% versus prior year. Herein the US, we never dropped that far. And the recovery seems to be happening at a perhaps a slightly faster rate as well. Interest rates are at alltime lows. Fuel prices also are very low. There's been a ton of stimulus money that's been put into the economy. And so, as we sit here today with roughly a 12 million unit SAAR, we do believe in the balance of the year, as we go into the second half, Q3, Q4, we do anticipate that the industry will continue to improve. How much of this is pentup demand versus recovery that has legs ? What some of those challenges might be is increased production. I think the situation is a function of both demand and production. Obviously, that's a big determinant of our ability to produce and keep things running. The supply chain, we've talked about a bit as well, which will alsothe stability of the supply chain and their ability to keep up will be a critical determinant of (00:10:14) levels of production. So those are all things that we'reworking on and keeping an eye on. AnswerMichael P. Ward: How do you view a Clunkers 2 program ? And does that change your outlook at all ? AnswerBarry L. Engle: Look, we welcome any initiative that would stimulate the economy and including the auto industry. We think there's a variety of programs or ways to do that. From the customer research that we've done, we know that customers are interested in any kind of direct stimulus that would improve the terms of the deal. In fact, I don't think we need to look any further than what we've been able to do over the last number of months with the zero percent interest for 84 months. AnswerMichael P. Ward: Turning to strategy, GM has been able to hold its breakeven level in North America despite inflationary pressures in material and labor.

Our next question comes from Harlan Sur with JPMorgan. Analyst:Harlan Sur QuestionHarlan Sur: Good afternoon, and congratulations on the acquisition. I think this Avera team has a great track record of advanced custom ASIC designs. Matt, in response to the prior question, if you look at most of the advanced ASICs currently being designed, they're on 7 nanometer and a few on 5 nanometer. So, I guess the question is, when you answered the prior question, does Avera already have 7 nanometer and 5 nanometer qualified ASIC design flows at any other foundries ? And if so, what specific foundries ? AnswerMatthew J. Murphy: Sure, Harlan. So, great question. So, here's the way to think about it. So, last, call it, summer, right, or in the early fall, GLOBALFOUNDRIES made the decision tostrategic decision at their company level to stop investing in the bleeding edge, and made a strategy pivot and they've announced all kinds of very, I think, positive moves since then to really reinforce their strategy. Part of that was by not having the leading edge, obviously, their customers needed a solution, so that's where Avera Semi was born. So this team has already forsince probably more than six months, since last fall, let's call it, engaged with TSMC. They have active programs with TSMC today and they're well underway, as are we as well. I mean, we've got our first tapeout coming in 7 nanometer. I'm talking about now, this is all 7 nanometer. Our first tapeout in Marvell is coming July timeframe. So the two of us are, I think, well aligned and they already have a running start, so that's the first point. And then the second is, you're right, the world is also moving to 5 nanometer, we've also begun work in that area. And the way I think about it at a high level strategically is if we're able to leverage more designs, right, on each of these process technology platforms with the combination of the Marvell business with the Avera business, it has all kinds of benefits, right ? It's justthere's all kinds of benefits. So that's another reason to do this, because quite frankly, we've got a big lift, right, to go do all of the things we do need to do at 7 nanometer and 5 nanometer. Now, we've got access to a whole multibillion dollar market where I think there's going to be significant demand for our products. They designed in a GLOBALFOUNDRIES, IBM environment and they've really done a good job of accelerating the transition to advanced node. And we look forward to working with them and hopefully, with the Marvell team in place, actually accelerating their progress. QuestionHarlan Sur: Thanks for the insights there. And then on the press release, you discussed a number of radio head ASICs that will be deployed into a leading wireless networking OEM. Are these mixedsignal ASIC chips, in other words digital, analog and RF blocks all in the same chip ? And then when do these first ASICs start shipping ?

QuestionChris Shibutani: With PAXLOVID, you guys have been particularly attentive to updating the community, the world about sort of what your manufacturing capacity is and it's changed even from at the end of December when you had that Analyst Meeting on the 17, it's continued to increase. What are the key gating factors for determining what the actual supply can be from a manufacturing standpoint ?

Like Glenn, I can't resist. And it's a longwinded way to ask this question, I'm sorry. Your peers seem to be settling on a midteens RoTCE or a little bit higher on a normalized level. And as you think about the wonderful franchise that you already have and the opportunities that you have to improve upon it, do you think that Citi can get to that level eventually, whenever that normalized period arrives ?

Analyst:Tim Long QuestionTim Long: Thank you. Was hoping you could talk a little bit more. You talked about edge compute a little bit in your prepared remarks. Could you just kind of update us on how you'rethinking about kind of the business model for AMT ? And obviously this is a longer term trend. Anymore views on data center investments and how you think you might monetize that ? AnswerThomas A. Bartlett: Okay. No, I mean let me take a step back a little bit. First of all, this whole market is in fact developing. With regards to specific to the edge, we are at kind of the beginning. And we're seeing certain elements align, if you will. But we're really starting to and trying to participate in those. But we really are at the beginning side of it. If you start to think about kind of, first of all. the CRAN impact, what the cloud impact is. We just saw some recent announcements in the market relative to somethe cloud players aligning with some of the MNOs. And we've seen Verizon doing that over the last year or so. What we'restarting to see is, if you think about kind of the 4G low, midband power market and what it looks like, at the site level. As we move into 5G and the low band, midband, what we'restarting to see at the site, for example, is a lot of MIMO is going to be starting to be deployed, a lot of antenna arrays, a lot of new fiber that's going up the poles themselves. Five to 10 times more fiber strands needed, higher power, more heat. And so now what we'restarting to see is we're seeing cloud RAN and ORAN. From an ORAN perspective, it's just different types of equipment that our customers are able to put together to be able to load onto the site. And at thekind of at the base level, at the base band unit, which is where the data center element comes in, we'restarting to see disaggregation at the base band unit level into the DU and into the CU levels. And that's giving our customers the abilityand usto be able to look at wherein fact we might be able to expand and be able to enjoy some of this additional compute capability that's going to exist at theout at the edge, as the 5G experience becomes more prevalent throughout the country. So we continue and expect to see this incremental convergence of this wireline and wireless network. We think it stresses the importance of that firstmile network architecture. It's a shared neutral host solution. And we actually are exploring it and going down the path of really two elements, right ? Two waves, if you will.

The year has started off strong and we count them one day at a time. And the year's started off strong, the markets are active. The economies are recovering globally. The new administration has come in. It looks like we had a peaceful transition hopefully today.

When we started the company, we were building a piece of software that we'rethinking okay, how many companies will this ever serve at once ? And it's all the way down to first principles of the architecture on how would you multiplex apiece of software. Multitenancy in and of itself I believe was important for us when we started the company; I still think it's very important. There are new models now with cloud computing, with infrastructure service where Kubernetes has taken over the world by storm, a lot of people using containers. You could take a piece of software like an onpremise software and you could scale it outwith millions of containers and they all have the same piece of software. And you could run that one piece of software and maybe get away with it for awhile. The complexity comes in innovation.

The story initially had been by having a slightly different mix of specificity and maybe one can get away from bleeding or other complications that we feel strongly are on mechanism for BTK inhibitor. So it's important to manage patient safety and they should be managed appropriately. AnswerMichael E. Severino: And if you look at how the field has developed, I think you see that playing out. So the initial -- the initial hope was that there would be no bleeding, you see bleeding rates that are the same, as the rates with IMBRUVICA now in later stage trials, people have focused on AFib, fora while people thought perhaps there would be no AFib, now you see AFib rates look very, very similar to ours which is all very consistent with our hypothesis that these are on mechanism, adverse experiences that they need to be managed carefully. But they're going to be part and parcel of a BTK inhibitor. So we have multiple long term Phase 3 studies that show impact on PFS, impact on OS. At a time period where the following agents try and catch up, so we're going to make sure we take advantage of that lead in data generation that lead in time on the market to drive the success of IMBRUVICA.

And we think technologies exist to do that. The other one is this issue of variability. How do you help people become more consistent ? How do we make sure that all the surgeons if I use a tennis playing analogy, everybody can hit it as well as Serena can hit it ?

AnswerCarolina Dybeck Happe: Good morning. QuestionC. Stephen Tusa: Congrats on the strong finish on cash. Just curious on this GE Capital change. When did that start, and is there any impact on working capital trends ? AnswerSteven Winoker: Hey, Steve, just for clarity, you mean the change in how we account for it on an equity basis... QuestionC. Stephen Tusa: Yes. AnswerSteven Winoker:...that we just announced today ?

We have the people, the products and the prices to deliver a great holiday season. Around the world, so many families depend onus for food, apparel, home items, TVs, and seasonal items like toys and Christmas trees. And while this year has its challenges, we'rein position to serve them. Sam's Club had another very strong quarter as did Walmart International with China, Mexico, and India leading the way.

Well... AnswerPaul A. Jacobson: It's good customer service. QuestionJohn Murphy: Yeah, you're right. AnswerPaul A. Jacobson: Okay. QuestionJohn Murphy: We're here for you. Unidentified speaker QuestionUnidentified speaker: Okay. Just to followup on the last comment you said. I'm just kind of curious for you and also the industry, like your sense of the industry, how many vehicles could you make versus how many vehicles are you making ?

It is a game of pennies. AnswerUnidentified speaker: We play it willingly. AnswerVaibhav Taneja: We play it religiously. We've done it many, many times. And even something as simple as like a sticker, like there's too many stickers internally in the car that nobody ever sees. It's something as simple as a QR code. You might think, well, putting a QR code on a part, why not just put them on there. It's like, well, are we actually going to use that QR code ?

Our business could be negatively impacted by adverse fluctuations in freight costs, fuel costs (e.g., diesel, bunker, jet), limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping infrastructure at important geographic points of exit and entry for our products. Operating in different regions and countries exposes us to numerous risks, including: * multiple and potentially conflicting laws, regulations and policies that are subject to change; * imposition of currency restrictions, restrictions on repatriation of earnings or other restraints; * imposition of new or additional tariffs or quotas; * withdrawal from or modification of trade agreements or the negotiation of new trade agreements; * imposition of new or additional trade and economic sanctions laws imposed by the U.S. or foreign governments; * war or acts of terrorism; and * political and economic instability or civil unrest that may severely disrupt economic activity in affected countries.

That'sour plans. And so to speak about the other situations, just it'snot our focus areas as of yet. QuestionRobert Muller: Right. It's been about three years since you announced the transition. Have you gotten any early indication of how these renewals have trended ? What's the customer interest been in accepting these renewals or extending their agreement ? Or conversely, are people considering that ? So, we're still in the early phases of this. I think Chuck talked about some of this on the earnings call. But the first real waves of it kind of hit in 2021 and particularly in the second half of 2021. And so you really won't hit scale until you get to what'sour fiscal year 2022. The teams and my teams, the sales teams, our CX teams are all working on this now. Like we talked about SDWANs doing exceptionally well, we're also seeing in the Enterprise that as you see the ramp of things like WiFi 6, as you seethe ramp of Catalyst 9000, and people start to do more sophisticated things with the network, they are adopting the new capabilities much faster as part of this migration to the new infrastructure. And so we're stilllike I said, we're still in the early days, but we feelgood about where we're going and where we'refocused as far as the campus refresh and the SDWAN refresh, and it's linked back into those renewals. And can you just help frame the value proposition ? Why would someone necessarily renew ? What's the real value proposition that will kind of determine ? And, again, what's the downside if people do not extend ? There's still a ton of work, don't get me wrong, but relative to some of their peers at least. And so what we're seeing is actually people really understand that, especially with the most latest pressure test that was caused by COVID. I'd say the only other piece is around security. They're just trying to disrupt your operations. Ransomware is the most obvious example of this. So I'd like to shift over to the data center, justin particular, the 400 gigahertz coming up. Why would a hyperscaler deploy 400 gigahertz as opposed to just utilizing additional 100 gigahertz products in a different setup ? Really, what is going to be the primary push ? And then with that background, why do you believe Cisco is well suited to handle these needs ? So, there's kind of two sides. So, there's the hyperscaler that flow in the 400 gigahertz, and there's the enterprise. It maybe not the next five to seven years, maybe through the next two to three years.

Capital expenditures are supporting the company growth in manufacturing in multiple geographies, including the United States and Malaysia as well as research and development infrastructure investment in California, Oregon as well as our new technology center in Korea.

Our next question is from Terence Flynn from Goldman Sachs. Analyst:Terence Flynn QuestionTerence Flynn: Hi. Congrats on the quarter from me as well. One more on the guidance front. And then, again, appreciate all the detail on the pipeline. On the slides you list six proof of concept readouts this year. AnswerRichard A. Gonzalez: Okay. Obviously, we'll be providing for calendar year 2020. Mike, do you want to cover number two ? AnswerMichael E. Severino: Sure. And if I wanted to pick some examples that will be most transformational, I think I would point to ABBV3373, our TNF / steroid conjugate. So if that plays out in the clinic in the same way it has in those model systems, that would really be transformational across a wide range of diseases, across a range of TNFmediated diseases, like RA, other rheumatologic conditions, inflammatory bowel diseases and many others. So that really has transformational potential. And one program that will have a readout at least from the monotherapy component this year is the 155, our B7H3 targeted xL delivery. AnswerElizabeth Shea: Thank you, Terence. Operator, next question, please ?

Overall, we're really confident in our ability to continue this momentum and to improve patient outcomes.

We ask that you limit yourself to two questions. Operator, may we have the first question, please ? QUESTION AND ANSWER SECTION Operator Yes, that will come from Shannon Cross, Cross Research. Analyst:Shannon Cross QuestionShannon Cross: Thank you very much for taking my question, and I hope everyone is well. Tim, you talked about seeing some improvement in the second half of April, so I was wondering if you could just talk maybe a bit more on the segment on a geographic basis, what you're seeing in the various regions that you'reselling in, and what you'rehearing from your customers. And then I have a followup.

And we'retrying to play them off -- and like I say, trying to find that person who really fell in love with us for prestige TV and then discovered Love is blind. That's a pretty common household to be honest with you..

We are looking forward to people living with diabetes, realizing the benefits of Mounjaro. At Lilly, we focus our R&D efforts at the intersection of unmet medical need and breaking science across our therapeutic areas.

But it also allows us to have capacity for increased market share gains and leveraging the balance between our internal and our foundry customers as well. And the leverage government investments we expect will be driven substantially to benefit the IFS business.

And then, just as a quick followup, I guess, market volatility has obviously picked up, how are you guys feeling about the M&A pipeline and maybe the potential for continued bolton in this sort of a macro environment ? No, as we said and it's certainly reflected in our guidance this year with respect to relatively modest share buyback that it was our intention to really prioritize M&A this year. QuestionNicole DeBlase: Thanks, Craig.

Wellso, we've had very good relationship with the STB to this point. We've maintained those relationships with the existing board members. We'restarting to build relationships with the new board members. The creation of the STB was all about making sure that railroads had an opportunity to become revenue adequate, attract capital and not face kind of the situation we were facing in the late 1970s. And it's been a home run. They do have a big docket in front of them. I'm pretty confident they're going to be prudent in how they work through it. And we've been proactive as an industry and Union Pacific as a leader in proposing some different things for them to think about as they'refacing their docket. And if we're way, way out of that box, let'shave a conversation. But if we're just competitive in that box, then let us compete. And the data shows we're basically in the middle of the pack when it comes to that comparison. And in many cases, like in comparison to the customers that are complaining to the STB, we're not earning as much against our cost of capital as they are.

QUESTION AND ANSWER SECTION Analyst:Alexander Blostein QuestionAlexander Blostein: So, why don't I jump in ? First questionand thanks, by the way, for all the incremental disclosure. That was really helpful. So, first question I have for you is around private markets and retail. Earlier this year at the Investor Day, you guys outlined a bit of anew framework, I guess, to say, look, the typical 60 / 40 portfolio equity / fixed income has to evolve into kind of 50 / 30 / 20, 20% being the private markets piece. And it sort of has to happen because, obviously, the return opportunities are just not the same in the public markets today. What's sort of the path of getting there ? Does it have to bean organic build or is that an area where you could see yourself doing acquisitions ? AnswerGary S. Shedlin: So, there's a lot there. There's no question about it.

Additionally, we expect the Inphi business to continue to perform well and grow faster than standalone Marvell.

Let'stalk about Big Blue, core Facebook, which we still think is about 60% of the overall revenue. There's some investor concern that there's weakness or perceived weakness in core Facebook engagement and time spent. Can you give us some color on what you're seeing in North America and the rest of the world on Big Blue core Facebook users' time spent, engagement, however you look at it ? AnswerDavid M. Wehner: Yeah, sure. In North America, we've been saying for quite a while, we're at a point of more maturity for Blue. We said we expect user levels to bounce around from quarter to quarter and that's what we see in terms of DAU. So, Facebook user growth was impacted by a number of headwinds in Q4. COVID into prior quarters with markets like India and LatAm, where there were some COVID resurgences earlier in 2021 that waned in Q4. It's just worth noting that COVID has over the last two years made it hard to parse all of the trends given the surge of engagement we had during lockdowns. But kind of at the 10, 000foot level, in terms of overall engagements, we're basically where we were preCOVID in the US, and we're a bit higher internationally. AnswerDavid M. Wehner: If you kind of dive into those numbers, we have seen our engagement shift more towards video and shortform, and that's clearly been a big part of the growth in the past couple of years across the entire ecosystem. QuestionBrian Nowak: Is that transitionon the last conference call, you talked about how North America impression growth was down 6% yearoveryear. Is that why that's happening, and sort of as you think about the guide for the first quarter and the rest of the year, how are you thinking about North America impression growth ? So it's a good measure of volume across the ecosystem, and North American impressions were down 6% in Q4. There's a number of factors that are driving that. There's the general COVID lockdown effect. There's the shift to video. So that's a negative for our impression growth. And then we're seeing competitive pressure on time spent from others. As we go forward, we're hopeful that the COVID issue will become less of a factor. I think all of us are hopeful that that's the case. But at some point, as we ramp ads in Reels, we'll see that flip to being a tailwind. QuestionBrian Nowak: Got it.

When you think about insurance and healthcare and all these verticals and I know that Keith Block prior to his departure really pushed this, probably pushed Mr. Benioff a little harder on the verticalization than Mark wanted to go.

We'll continue to step forward toward our opportunities and remain fully invested in our business.

This is a highly complementary acquisition, which upon closing, will immediately add scale and breadth to our PHY business while also accelerating our reach into the fastgrowing MultiGig enterprise and automotive Ethernet areas.

Steve emphasized the critical point, however, that in particular we see great demand for our premium feebased products, with new accounts acquired on these products almost doubling yearoveryear and representing 67% of the new accounts acquired in the quarter.

Thank you, Bryan. We see signs that consumers really want to continue to consume chocolate and biscuits. Obviously, you've seen that the emerging markets area highlight in Q3 but also yeartodate with a broadbased strength from China to India to Brazil. We'redoing well in all of our emerging markets. Our margins area little bit impacted by customer disruptions in thein Europe. And that also has affected our margins a little bit. So, we're increasing our view on what the year will look like from atop line and a bottom line perspective, now, particularly that our pricing in Europe is complete and behind us. And so, yes, FX is impacting our EPS, but we are still showing real growth inor growth in real dollars. So, overall, I would say the results are good. So, if you look a little bit beyond that, what does that mean ? I'm talking about Southeast Asia, India, China, evenand so, there is a certain optimism, and the degree of strength in the consumer confidence in emerging markets for us is almost to preCOVID level. Of course, developed markets, we see a very mixed picture, challenged in Europe, as we all know, relatively optimistic in the US. We see more and more signs that consumers continue to see or increasingly see our categories as an affordable indulgence. Grocery seems to be doing overall pretty well I would say. That's part of our thinking, and I think that is helping us in our results. Pricing, of course, played a role. On pricing where we stand is that we have just gone through our second round of pricing this year in Europe. We have announced a third round of pricing in the US, which will take effect in December, and we are starting our negotiations in Europe for the typical beginning of the year 2023 pricing round. As it relates to Latin America and AMEA, the pricing that we implement is more fragmented but in most cases we are also in our third pricing round. And so far it looks like that will go well, this new pricing round. Of course, we have to see what happens in Europe where we expect more customer disruption in the beginning of the year as we. From an elasticity perspective, maybe I would say that that remains below expectations. It is lower than it was last year even, certainly lower than it was preCOVID. In our forecast, we are foreseeing higher elasticity effects because we believe that eventually there will be a bigger effect. But so far we're not quite seeing that. And then from a cost perspective, we're seeing some commodities showing signs of pulling back, but we still expect significant inflation in 2023, and hence the pricing rounds we have to go through. I think we're very wellpositioned for 2023. We have to continue to price in light of the inflation. We will increase our focus on RGM, revenue growth management. And I think as I said before, we will see some volatility in Q1 in Europe as we implement pricing. What we see is that they continue to prioritize grocery spending. They seem to be choosing that instead of spending on other discretionary items. That's where we see the decreases in Europe but not in food and not in our categories. So, the consumer results are relatively positive we see in Europe. They're very aware of the current situation, 80% But 60%, for instance, of consumers in the UK or Germany believe that six months down the road, their situation will be better. Chocolate is highly desired. Hope this gives you an idea, Bryan. QuestionBryan D. Spillane: Yeah. No, that's great.

We kind of the last timeSam'sis the smallest $60 billion business in the world, because it's a really big business. It didn't quite get as much attention, because it sits inside such a big company. But it's been apart of who we are as a company, has Sam's name on it, which matters to a lot of us. I spent time at Sam's, Doug spent time at Sam's. What I loved about this quarter is the membership growth that we're seeing. So, membership growth is growing. I mean, it's really healthy business. But I'llthey've led the company in some ways in technology, some of the things they've done with Agile teams, what they've done with Scan & Go have I've led the company in some ways from that perspective. International, there're some markets that have performed really well. Walmex is another one, Walmex gets not near enough credit for the business they are. They are one of the finest retailers in the world when you look at being multi format, the growth that they have every year, it's an amazing business, generates a ton of cash flow. The UK has been challenged with Brexit and the consumer is struggling therewith what's going to be long term in the UK. And so, that's been a bit of a challenging market. We're really excited about opportunities in China and India. There's only two countries in the world with 1.3 billion people and that's two of them. So, we'rein both of those markets. We have great growth opportunities there. And so, it'sinternational has different pieces that together makes sense. So, good opportunities for both businesses. QuestionBen Bienvenu: Maybe shifting gears to ecommerce a little bit. AnswerBrett M. Biggs: Yeah, it's evolving. And I think just like the rest of our business, we'relearning, we're seeing how customers react to different things. We probably tend to look at it more as one business than analysts and others that follows and tend to look at ecommerce versus Walmart US. What we've done with Greg Smith now leading all of the logistics functions. There's other things we'redoing to bring those businesses closer together. It's a very different business model. But it'snot just that business on a standalone basis, it'show does that business feed the stores, how do the stores feed that business. And so, certainly, we know by channel sales growth, profit and loss, we know all that by channel. But it'show do you mix it out in away that makes sense and how we make sense of it is what I spend a lot of my time on. It's what our executive team spent a lot of their time on. All the things that we want to do as a company, we can do anything which can do everything. That's kind of how we talk about it. We've got to prioritize and I think we do a better job in that we used to do. And we, as a group, have to determine what that means. We have towe listen to analysts in how you guys think about our business and where you think we should be financially, and our investors. So, it's getting all that together but setting up this business that 20 and 30 years from now is not surviving but it's thriving. AnswerBrett M. Biggs: And it's finding that balance and ensuring that we'resetting up the teams three and four and five generations from now. QuestionBen Bienvenu: You guys frankly have a culture of test and learn, pushing the boundaries, trying to learn more about your business and your customers. I think of Walmart InHome as an interesting initiative that you guys are in test mode for now.

Well, I could shift gears and just ask a question around financial technology and your bank relationships. In today's world you throw fintechs into the mix.

So we know we have to earn our share and continue to deliver great ROI and be able to measure results. Dave Wehner ExecutiveChief Financial Officer And Justin, let me make sure I got that question.

What's caused that ? AnswerJared Spataro: There are both internal and external factors. They're able to say, hey, this is anew way of doing things, there's a forum when (00:28:16), chat, meet, call, collaborate, and they say, we're going to do certain business processes this way. So it has some kind of symbolic value to companies as they change. So that was a really important set of investments we made. We certainly have worked really hard to do integration between Teams and the rest of the kind of the productivity elements that people use of the Suite. QuestionHeather Bellini: So one of your competitors in this market would highlight limitations of your product, and highlight things such as, you can't have more than 5, 000 people in a channel, otherwise you have to have multiple channels and that might defeat the purpose of trying to have seamless communication. What's fad (00:29:19) and what isn't, what's real and what'snot in terms of the back and forth in terms of functionality, and I guess why don't we start with that ? AnswerJared Spataro: As I think, again, think about the forum when we called the hub for teamwork. So there are multiple competitors. If you'retrying to do what Teams does, you're going to pull together Slack, Zoom, Dropbox and Google, that's kind of the fact of life if you choose not to use Teams. Against each of those competitors we have strengths and we have gaps. And I would just say that we are super clear on what our gaps are against the leaders in those categories, and we invest every day, everyday, everyday to close those gaps. Please don't think that we don't know what those are. QuestionHeather Bellini: So let's focus on those fora second. So you mentioned there's gaps. Like help us think through that, how the gaps have evolved and how you've been narrowing the gaps. AnswerJared Spataro: Great. Even our platform investments, as an example, the work we've been doing to make Teams a platform is far ahead of those competitors. If we then take, for instance, meetings where we have a company like Zoom, who has done really well, we have small gaps that we've seen. But over the course of the last 18 months we have done a lot for instance in quality, and we feel really good about where our quality stands today. Then as we look across the others, the gaps are small and getting smaller, is the way we feel. I'll go back to our strategy. How do people think about just the pain point of integration if you didn't go with Teams ? AnswerJared Spataro: There are two really big aspects of integration if you don't go with Teams. First you actually have to find ways to plug your workflow, and by that I mean the flow of your work together, that's everything from the details of identity and kind of who has access to what, to just like where do we put this thing and how do we reference it, (00:32:37) practical bucket of things. QuestionHeather Bellini: Last question I had was just on marketing with Teams. Your marketing strategy at the enterprise level, but also I think you've recently gotten a little bit or maybe double down or gotten more aggressive on the SMB side. Can you talk us, walk us through kind of the different ways you're attracting customers ? AnswerJared Spataro: You bet. Teams certainly popped up as one of those 12 to 18 months ago. When we started to do that, we kicked that off in the NFL prior to the Super Bowl, we'll continue to do that here in the US and we'll expand out to other markets. We have a single place for people to go and sign in. If you don't, you'll start up a new free tenant. I think we're out of time, Jared.

AnswerElon Reeve Musk: Ramp and quality and then, yeah, ramp, quality, cost. And then once that stabilizes, we can divert bandwidth to cost reduction. And so Austin and Berlin saw quite a decent amount of cost reduction on a fundamental basis from Q1 to Q2. We'll continue to do that work. Packaging is a big element to that.

I want to go to pricing just for a moment. But, Greg, I was hoping you could talk a little bit more about the recent price increases primarily in the US. I know it's still early in the UK. But I guess to what effectyou did mention slightly elevated churn in 1Q. I guess, how much was that a factor ? How is this price increase being received currently ? So, top line is that the price changes, the last several price changes we've done, are generally performing as we've seen the price changes over the last several years. So, there's no sort of fundamental difference in performance. And in some markets, we also see a marginal impact on acquisition. So, we generally plan to continue doing what we've been doing. So no major changes there, and we're keeping sort of the plan that we've got in place. AnswerSpencer Adam Neumann: One thing just... AnswerWilmot Reed Hastings: Related... AnswerSpencer Adam Neumann: Oh.

Our review of information reasonably available to us is now substantially complete. Regarding the Florida allegations, based on information in our possession, we believe that FPL would not be found liable for any of the Florida campaign finance law violations, as alleged in the media articles. With respect to the FEC complaint, you may recall that it was filed by a special interest group and primarily relies on media articles that allege certain violations of the Federal Election Campaign Act by various parties including, by implication, FPL. The FEC process is a confidential civil administrative process, with an investigation only commencing if the FEC votes to do so. We plan to file a response seeking dismissal of the FEC complaint in the next few weeks, and do not believe it is appropriate for a complaint such as this to move forward. The total amount of contributions referenced in the complaint is less than $1.3 million, and we do not expect that allegations of federal campaign finance law violations, taken as a whole, would be material to us.

And that'snow showing up. And certainly, the enterprise market is not growing at 50% a year. So you have to draw your conclusion. There's been certainly a share shift as customers have adopted our solutions. And we do believe that, this business is going to continue to grow. It will grow next year. It may not grow on the annualized basis at 50%, because you're going to start lapping at some point and we're coming off of a relatively low point from last year. But also remember, our content has gone upon each of these generations as multigig Ethernet becomes much more prevalent and especially as enterprises are spending again and implementing WiFi 6, which requires highspeed wired Ethernet connections at multigigabit we're seeing switch ports go up on multigig, which has our PHY attached to it plus our switches. So there's also a content story here, Toshi. I think between product leadership, share gain and then content increase, enterprise can continue to be a winning business for Marvell. Operator This concludes our questionandanswer session as well as our conference call for today.

For Gen 2, we focused on fewer, higher volume models in the right segments to take advantage of our strengths and knowledge of customers, even Conquest customers. For example, work vehicles, pickups for retail customers and spacious sevenpassenger SUVs.

There are some global assets and there are also some Lower 48 assets in that mix. We just expect when we see this with the expanded position that we have in the Permian basin right now, there's going to be opportunities for us to continue to high grade the portfolio, which is what we should be doing. We should betaking things out of the righthand side of the cost of supply curve. And we should expect to continue to lower that and look for assets that don't compete. And we expect we're going to find some. And Tim's here, too. He can speak.

The first thing was working with OEMs and ODMs on all of the different types of infrastructures that are being built for these industries. Omniverse is yet now another example of an important infrastructure that we have now connected all of the partners and the ecosystem. We're here to connect with those software applications Omniverse, taking the exact same work that they are doing and just moving it to 3D. So, it'snot exactly incremental. It is more of the same as we build out both our software and engagement with these partners. QuestionTimothy Arcuri: And then I guess also, how havehow have your cloud customersthey all havethey all want to buildthe metaverse to each of them means a different thing, obviously, but they also want to build their own platforms as well. So how do you view that tension between the big cloud customers also with what you'retrying to do in the Omniverse ? AnswerColette M. Kress: Our approach to accelerated computing and AI solutions has always been agnostic. We will work with just about everybody in the market as we can in assisting them. We have software applications specific to certain industries. We have, for example, right now more than 150 software development kits available for all of these markets. We support them all. We support all the different types of hardware providers that maybe there as well, whether they be a CPU hardware provider, storage, memory, these are all important things that are (44:28). And whatever we can do to put that together, we will do it.

And first, a big callout and a congratulations on your retirement. So, kudos to you as well. So thank you.

Spencer Wang ExecutiveVice President, Finance, Investor Relations and Corporate Development And Jessica, just to add to that, the good news, as you saw in the letter, is that, that branded video ad market that Greg talked about us focusing on is about $180 billion, globally ex China and Russia.

The CapEx increase was driven by the buildout of our cloud infrastructure and lower proceeds from real estate sales while deemphasizing lowervalue services content.

Look, the capital equipment environment overall is healthy, and you see that in endoscopy and instruments numbers. Even Medical, the fullyear Medical is going to be double digit growth. Obviously Q3 was a little softer than Q2, which was huge. You saw the OUS numbers for Other Ortho were very big, so Mako is really picking up in both Asia Pacific as well as EMEA, but what we areso overall just tremendous momentum across our business on the capital side. QuestionRobbie Marcus: Great. Operator The next question comes from the line of Bill Chickering (sic) [ Pito Chickering ] with the Deutsche Bank. Analyst:Pito Chickering QuestionPito Chickering: Hey, guys. It's Pito.

QuestionBrent A: To being in whatever setting you'rein, right, and again, back to digital trust. I think it is different. So that's certainly good to hear. Let's shift to internal changes at Salesforce postCOVID, because you think about internally, how muchso you're talking about external changes around digital. What about the internal changes at Salesforce postCOVID ? I mean how What are the biggest, kind of most difficult things that Salesforce had to do internally to adjust to this new world ?

So anything that is to be done would be done with an eye toward maintaining a rich flow of content to fuel our growth business and that will be streaming. There's obviously complexity as it relates to decoupling the linear nets from ESPN, but nothing that we feel we can't contend with if we were to ultimately create strategic realignment.

The responsiveness to that tailoring and adjusting of the programs has been very good and in line with our expectations, i.e. we haven't seen a falloff of usage; we haven't seen clients shutting accounts because of the adjustments we've made to rewards.

Bob ? AnswerRobert E. Landry: Yeah. Salveen, that's exactly right, what Len just said. There will be a big reflection upon the repayment of the development balance, which will be dependent on timing with regards to how well we execute our current Libtayo indications, chemo combo that's coming, and then everything that George showed earlier with regards to the opportunity that's there, in addition to improving the margins and improving the profitability of Dupixent. AnswerRyan Crowe: Thank you. Our next question comes from David Risinger with SVB Securities. So, my question relates to the commentary that I'd love to just get more color on. So, there were comments on the call just a minute or two ago about how it's all about activity. Previously in the call, there was commentary that certain pipeline candidates lack monotherapy activity. AnswerLeonard S. Schleifer: David, before George answers that, I just wanted to say, welcome back. We're glad to have you back and active. AnswerGeorge Damis Yancopoulos: (00:39:53). QuestionDavid Risinger: Very kind of you. You probably don't recall, but I had first met you way back in the day at Morgan Stanley in the early 1990s. It brings back some good memories, David. It's good to have you. George, back to our regularly scheduled broadcast. AnswerGeorge Damis Yancopoulos: Okay. So, I was referring to the fact that we believe that when we'recombining our LAG3 with our PD1, we'recombining two bestinclass agents. Now, it'soften in the past been the case, when people have taken agents that have no activity and mix them with something else, that leads to no activity on top of preexisting activity. You don't get any additional benefit. But I think what you were referring to was our costimulatory pathway. And the story is, is that as we've already talked about, Signal 1 for T cells to engage and kill their target is T cell receptor recognition of that target, which in this case would be the tumor. Signal 2 is what they call costimulatory pathways, most notably the CD28 pathway. These are tightly coupled, and Signal 2 is never naturally activatedor should never naturally be activated in the absence of Signal 1. So, we created a whole new class of molecules, what we call our CD28 bispecifics, that essentially mirror what nature tries to do, because they have no activity on their own, but they have profound activity in the setting in which Signal 1 has been triggered. So, we figured out a way using these agents to mirror what nature does, which is not be able to activate Signal 2 on its own, which prevents hopefully these horrific toxicities, but does it only locally right at the tumor site where the Signal 1 is being activated. It's been very wellreceived. We were leaders in this. We're really breaking new ground. AnswerRyan Crowe: Thanks, George. QuestionDavid Risinger: All right, thank you. Operator Our next question comes from Brian Abrahams with RBC Capital Markets. Analyst:Brian Abrahams QuestionBrian Abrahams: Hey, guys. Congrats on the pending deal and thanks for taking my question. I'm curious what this increased commitment to the program says about some of the signals you maybe observing from the ongoing clinical combos like the PSMA costim and (00:45:30). Any new observations there prompting this timing ?

And then, David, I think the question was asked earlier.

And so just, Scott, in terms of your expectation around the AMA panel, your expectations are going to stratify the codes by lesion length and complexity not so much by setting ? AnswerScott R. Ward: We think that's the case.

AnswerMarion McCourt: Chris, happy to give you some characterization of the market. First, let me comment on EYLEA. And as we reported today, our performance certainly with EYLEA in a very competitive marketplace is quite strong across indications. As a reminder, in the overall market, we have about 50% of the VEGF category market share with EYLEA, and in the branded marketplace over 75% of the branded market share. I'll share that prescribers and key opinion leaders comment to us on the importance of the demonstrated safety they see with EYLEA, the efficacious profile that we have, and certainly the extensive consideration across indications and inmarket use that has been incredibly robust. As it relates to other items along pricing and things of that sort, generally we don't comment, but I certainly will say that looking ahead we see strong leadership with EYLEA and a profile that is certainly leading the category in terms of experience, uptake, and use. AnswerRyan Crowe: Thank you. Next question, Gigi. Our next question comes line of Cory Kasimov from JPMorgan. Analyst:Cory Kasimov QuestionCory Kasimov: Great. Good morning, guys. To followup on EYLEA, I wanted to ask about the highdose formulation. Is it possible that this could broadly take over from your current dose ? AnswerMarion McCourt: So, I think at this point we'll want to wait and look at product profile as the clinical data matures. So, I think more to come on specifics on uptake. We remain optimistic, but of course we need to wait and see how the clinical data matures and the profile of product is clarified. Gigi, next question, please. Our next question comes from a line of Evan Seigerman from BMO Capital Markets. Analyst:Evan David Seigerman QuestionEvan David Seigerman: Hi, guys. I'd love if you could expand on some of the rationale behind acquiring or proposing to acquire Checkmate Pharmaceuticals. And do you expect to go forward combining their asset with Libtayo versus, say, nivolumab or pembro as they had on their prior trials ?

So, I think if you look at the June quarter, the midpoint of our guidance would suggest that revenues declined about 10% yearonyear. The best explanation... QuestionHarlan Sur: Roughly flattish sequentially... AnswerDavid Pahl: That's right, and roughly flattish sequentially. The best description of why that is, is we're a little more than one quarter into just a semiconductor cycle. But we would point back to look at the macro environment and semiconductor environment, in particular, to help to explain those results. QuestionHarlan Sur: One of the areas you did point out though very clearly was your 5G cellular infrastructure business. And the question we get from the investors is what does TI mean by lumpy ? Is it on for two quarters, up for one quarter ?

Turning to slide 10, overall, we believe the favorable safety profile of Zeposia is already well understood as reflected in the multiple sclerosis label. In the True North study, the most common treatmentemergent adverse events during the induction phase were anemia, nasopharyngitis and headache.

And here's why that runway is so long. There's two factors. Farming is also a very complex logistics operation. QuestionBrent Norwood: So, over the course of the summer, we talked about a new strategy that we've rolled out as a company. It included the formation of the CTO organization. Now, a question we get quite frequently is, how is the CTO collaborating with the production systems teams to determine what the focus of our technology should be in the future and how are we prioritizing those R&D dollars and projects that we decide to begin ? AnswerDeanna Kovar: So, it's important to note that we'redoing this in really two ways. And what we're looking to do is take those opportunities to create value and collide them with the experts in the CTO organization to define the best solution to unlock that value for our customers and then accelerate it to market production as fast as we can. And this is a huge opportunity for us to think differently about how we prioritize our portfolio. And as we think about the lenses we'reusing to say what's the next best investment for John Deere to make, it really starts with this economic headroom for the farmer, how can we create new value on the farm. Our second approach and lens that we look at is product leadership. We're also looking, of course, at the business value for John Deere, and then we also look to say how does it align to our strategies going forward. And between the CTO organization and the production system organizations, we're very aligned on our focus to drive precision input placement, to drive more automation to the farm, and help farmers make better datadriven decisions. So, we talk a lot about some of the core elements of the precision strategyLet'stakeastepbackWe'reatCESrightWe'vegotalotofkeythemesthatwe'vebeenhighlightingwiththe2024, , Inc. All Rights Reserved.

Shawn M. Guertin Yeah. I would say it was really a veryit was a very good quarter, really good start to the year. All of our businesses were largely inline with where we expected them to be. We understood whatever variations were there.

AnswerC.C. Wei: Bruce, this is a very good question. Actually, let me share with you how we deal with it. In fact, between the N5, N3, the technology node, our capacity buildup and with a lot of tools can be commonly used by these two node. So, in fact, for TSMC to build capacity, we put N5, N3 and maybe in the future N2 as a total picture to look at it and we will keep our flexibility to increase or to adjust for the future so we will be better prepared. That all I can tell you. QuestionBruce Lu: Okay. That's good to hear. AnswerJeff Su: Thank you, Bruce. And our next question is come from Gokul Hariharan with JPMorgan. And Gokul, please go ahead. Analyst:Gokul Hariharan QuestionGokul Hariharan: Thanks. Happy New Year and let me state my first question on the near term 2023. So, you mentioned first half, we have seen a worst kind of environment compared to three months back. Is it mainly HPC, data center that has seen further reduction or are we seeing it across the board, including smartphone, for first half ? And also on second half, just putting in rough numbers on your guidance, looks like we are looking for a pretty sharp rebound in second half of 2023, something like 25% to 30% second half versus first half of this year. Could we have some more color on what are the areas that gives you the confidence for such a strong rebound in second half of the year to get us back to like a flattish revenue growth for the year ? So, Gokul's first question is on the nearterm outlook. He wants to understand first half, we said the inventory correction is sharper. So, he wants to understand what are we seeing indifferent end market segments. Is the sharper correction driven by data center, is it smartphone, PC ? What are we seeing across the different segments first ? Wei: Well, let me answer the question. The inventory correction actually began last year. And we did see some inventory reduce sharply recently and it will continue to be so through first half of this year, so that's why we say we have confidence that in the second half the business will rebound. But is that a very strong V shape ? We didn't know yet. QuestionGokul Hariharan: Okay. I think N3 is clearly one part of that ramp but is there anything else, that you are already seeing that strong confidence for the second half rebound in addition to the N3 rampup ? AnswerJeff Su: Sorry. So, Gokul was asking in terms of second half, why can't TSMC's business be better than the overall industry. Besides N3, are there any other factors when you think about technology leadership ?

Relatively, the majority don't have performance obligations. So the ones that are, in the majority, out of the $210 million, right, the vast majority of them don't. The $150 million technically, Micron does have a performance obligation, but thatthere's a royalty up to a cap and they're so far above the cap, that even if they never shipped another product again because we get to use any residual overages, we'd still recognize the full payment from them every quarter.

First of all, I really appreciate everybody's very thoughtful questions. We're very proud of our results and the momentum that the teams have, and we are very inspired by continuing the Power Prosperity Around the World, and we look forward to connecting with you next quarter.

Anything that you're expecting there that would be different compared to yeartodate trends ? AnswerThomas A. Bartlett: No, I mean, they've been very consistent. I mean, very steady in terms of their buildout. You've heard them kind of tweak what they expect their overall CapEx expectations are probably for the year, but for us, they've been very consistent.

We obviously operate our sort episodic care programs, we have ACO arrangements and then are expanding our episodes to selfinsured employers and health plans as well.

Marc Russell Benioff I don't know what I should do. I'm kind of not sure. Oscar Munoz So, well, listen. Marc Russell Benioff Yeah. Oscar Munoz And thank you for all in the crowd. We hope to do today is just give a little exchange of ideas and thoughts. Marc and Marc's company, which we'll talk about in a little bit, is a fascinating story of entrepreneurialship, started many years ago and the success that it'shad has been unprecedented with the degree of rise in revenue, but more importantly, there's a whole incredibly downtoearth helping others aspect that Marc has always brought to capitalism and I want to talk a little bit about that as well. And now, of course, talk about our Latinx involvement, some of the facts and data that have come out recently. Oscar Munoz But before we start, I know that some people in the room may not know what actually Salesforce does. So, maybe you could just spend just a minute in layman's terms as to what it is that you do fora living. Marc Russell Benioff Well, okay, thank you.

But we're continuing to work on ways to finetune that autologous turnaround time. I mean, now it's 16 days vein to vein, of which 8 days is manufacturing time, and we think we could bring that manufacturing time down to five days. So, we'll continue to work on that as pillar one. Pillar two is to take a look at different targets, and Bill can speak to this. But how do we get thatthe fiveyear data is extraordinary. To see 43% of patients alive and there's 44% in year four. So, you start to see this flat line, but that means there is 56%or 55% of the patients that we're not getting to. You do that bicistronic activities which we have now in the clinic with CD19, CD20 if you look at it with other technologies that might evolve there. So, as the data matures on things like allogeneic, again, understanding that the discrimination / differentiation between autologous and allogeneic is different than it istoday than it was three years ago. And we'll continue to explore in solid tumors and other areas. I don't if you want to add to that. AnswerWilliam Grossman: No, I think you covered it very well. I think there's a lot of opportunities in cell therapy. QuestionMatthew Harrison: Can I just ask a followup there ?

We've had half a dozen sales leaders, half a dozen marketing leaders, half a dozen technology engineering leaders because we're 21 years old. We've been doing this awhile. By the way, a lot of CEOs of companies that you probably have in your conference are former executives at Salesforce.

And late in the quarter, we received FDA approval for our Aurora EVICD system, a game changer for the single chamber ICD space. Now we're ramping up our training of implanting cardiologists on the Aurora technology, so Aurora delivers the benefits of a traditional ICD, including similar size, longevity, and pacing features, but without the leads in the heart or veins, and these benefits can be realized with one device and only one implant procedure.

It's more about open banking data or open data.

Maybe, Chuck, one of the other things that Cisco's been known for and used part of their strategy overtime is M&A. It's always been a core competency for the company. There's been some transitions. So you guys have certainly pivoted where you'refocused. So curious what you think the strategy is now. Obviously, you gottofightvaluationsinpartsofwhatyoumightbelookingatSojustcuriouswhereyouthinktheprioritiesYouguys So just curious where you think the priorities. You guys obviously have really good cash position and ability to do larger deals.

AnswerPeter Crawford: So when we have been having these conversations with USAA over the last several months, one of the things that became clear and one of the things that made us very excited about this is, is USAA, with this transaction, has very complementary products and services versus what we offer today. QuestionKenneth B. Worthington: Awesome.

I mean all of those specific macro factors are pointing in the right direction for us.

QUESTION AND ANSWER SECTION Operator We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Mathew Blackman with Stifel. Analyst:Mathew Justin Blackman QuestionMathew Justin Blackman: Good afternoon, everyone and thanks for taking my questions. Maybe to start on paclitaxel, I don't know Scott or Rhonda, any anecdotal feedback from the field on the impact of maybe starting on referrals and interventions, but I guess atherectomy volumes just in general ? AnswerScott R. Ward: Yeah. I'll take that Matt and good afternoon. This came out in really the first week of March. So we will see how this changes the market over the course of the next several months. For CSI, the reason I say it's probably neutral for our company is that the paradigm for treating these patients really has not changed. The other thing is that really probably 60% plus of our peripheral business is below the knee where drugcoated balloons have not been approved for use and are not widely used in the United States. Also 25% of our peripheral business is in the OBL setting where drugcoated balloons have not been reimbursed and are not widely used. QuestionMathew Justin Blackman: Okay. I appreciate the long answer. And then, I have one quick followup for Jeff. AnswerScott R. Ward: Okay, good. We compete against Medtronic and Boston Scientific and Phillips. So, we are yet to see how they react to the gaps in their pipeline now. And that has the potential to change the competitive environment going forward. We are not seeing much of an impact from any of those companies at this point in time. So, you know we do expect to see competition coming in the future. So, we continue to do very well therein terms of sales rep retention and I would say that our sales reps are very motivated and excited not only by the performance of the company thus far, but also by the future vision of our company and where we're headed. And I think you may have had one more question for Jeff. QuestionMathew Justin Blackman: Yeah, one for Jeff.

And Dean and his team are fully committed to driving scientific innovation and in efficiently allocating resources to our most promising pipeline opportunities. We have executed important business development transactions this quarter and we've made meaningful advancements in our pipeline. Frank, Caroline, and Dean will speak to this in a moment. But I'll first give you an update on where I've been focusing during this transition period. The acquisitions of Pandion and its potentially foundational immunology asset and the HIV collaboration with Gilead Sciences are great examples of transactions completed this quarter that each have significant value creation potential. Finally, we will continue to take the necessary steps to help shape Merck into a leaner, more focused, and agile company, such as the upcoming spinoff of Organon. We look forward to hosting an Investor Day on Monday, during which the full Organon leadership team will highlight its strategy and opportunities for growth. We expect to complete the spinoff on June 2, with trading in the new stock commencing on June 3. With that, I'll turn the call to Frank.

The host of the container is the kernels. And the user space of the operating system is part of the container. And so, that's really what it is, is Linux. The reason why Kubernetes could really even be developed is because Linux was open. Kubernetes' APIs touch into the Linux kernel. They touch into the Linux user space. They're very much intertwined with each other. But Kubernetes turns out to be really the substrate that hangs the compute services, the networking services, the storage services. It's really pretty lightweight actually. I meanand even the platforms out there today like OpenShift, it's much more than Kubernetes; Kubernetes is just one piece of it. And it really follows the same way as Linux, as I said. I mean, it's all And if you looked at it, I'll use Linux as an analogy because everyone's more familiar with that, same analogy, exactly the same.

For example, in China, reductions and continuing volatility in that market may be caused by, among other things: store closures or modified operating hours and business model, reduced customer traffic due to illness, quarantine or government or selfimposed restrictions placed on our stores' operations, impacts caused by precautionary measures such as those related to face coverings and vaccinations and changes in consumer spending behaviors, including those caused by social distancing, a decrease in consumer confidence in general macroeconomic conditions and a decrease in consumer discretionary spending.

But how has the competitive landscape evolved over the last year, two years ? Has there's been more focus paid on a lot of these modernization efforts thanespecially now that you're bringing a different differentiator to your solution set with Mailchimp ? So, look, wefor the majority of our competition, as I said earlier, it is really non consumption. And so, we've got so many small businesses out there that are not using anything and this could be a small business, it could be a midmarket. They're still just using manual methods. And so, we want to make sure that the way we think about it is, we want to be the easiest solution for these small businesses when they first move online. It's why we work so hard in the firsttimeuse experience of QuickBooks to automate their books. Then, we want to make sure that they stay with us and grow with us. They'd leverage the integrations across our entire ecosystem. And so that's just the opportunity for us. So, I don't think a lot about the competition in the market as an example, because their We have a disruptive price point and we've got features and functionality that we just need to continue to meet their needs with and then we feel quite good. We've got just a few seconds here. Well, again, I appreciate the time today.

AnswerMarvin R. Ellison: I think it depends on the system and the function and that'snot to be evasive. When I look at the steps we put in place on merchandising and how we'rebuilding now consistent merchandising scorecards versus merchants having a series of Access and Excel spreadsheets are running the business on, I will say we'remaking progress. In Q3, we noted those e commerce initiatives will beenough of them will be online, we will see that business have a trajectory change. So, it's a tough question to answer, because this is a big complicated business with a lot of moving parts, but the good news is we have great visibility; we have a really robust project management system we put in place.

Thanks so much for the time and the effort to explain us the complexity of optical. And I did get more questions from the audience.

It is our key success drivers for the year. That'sour serve, grow, win strategy. It describes what we'retrying to accomplish. Ultimately, it starts with customer centered operational excellence. We know we are not there right now. We know we have been there. We know we will be there again; and it's going to be the actions that Eric briefly outlined that will get us there. And we anticipate that happens early in the third quarter. So, through the second quarter, recovering, doing what we need to to get excess inventory off the network and get the network spooled up, and in the third quarter, we should look like we're operating in January and early February of this year. QUESTION AND ANSWER SECTION Analyst:Scott H. Group QuestionScott H. Group: Fantastic. So, I want to spend most of the time looking forward. I thought maybe just one question looking back to maybe diagnose the problem. What changed sort of towards the tail end of the first quarter, beginning of the second quarter that got us into this problem ? And with that, then what's ultimately the fix ? We keep hearing about people ? Is it just people ? What are the other things that we need to do to really fix it ?

I would be -- yes, I'm pretty confident of that.

And some of those are (00:37:10) things we've talked about for many, many years. We have fraud rates that are a fraction of what you see on other competitive networks. That's a value for all of our card members and value for all of our merchants. We have a tremendous realtime ability to understand, from both merchant and card members' perspectives around the globe, spending trends. And when you think about the growth inor the accelerated growth in B2B payments that we've spent a good chunk of the last 38 minutes, and you're talking about here (00:38:10), one of the tremendous advantages we have is, because we are running our own proprietary network, as we seek to have more B2B transactions over the network, we have complete control of how those transactions are routed and priced. And that gives us an ability to pick a vertical. So, I'll pick on healthcare, for example, and say, boy, there's a lot of really inefficient payment transactions in that sector. Let's go work with the select set of suppliers, a select set of their customers, and find ways to route their transactions digitally over our network, but in away that the economics works for both of those parties, which means probably not using traditional card kind of economics. We're going to bring efficiency to those B2B payments, and do it in away where we think we have some unique flexibility, because we control all sides of the transaction to offer somethings that others can't. So, I could goon, but I'm mindful that we'rein our last few seconds here. So, we feel really good about the closed loop.

So, maybe just in terms of the recent trends, if we could talk about 1Q a little bit more, you lost 200, 000 subscribers or gained 500, 000, ex the Russia removal. But hoping you could kind of isolate some of those factors, and then talk to us about how that informs your 2Q guide for loss of 2 million subscribers. AnswerSpencer Adam Neumann: Sure. I'll take that, and then others can fill in. So, as you said, Doug, we've guided to 2.5 million paid net adds. We delivered 0.5 million, if you exclude Russia. So there's really a 2 million miss in our Q1 actuals versus guidance. And what's really reflected there is acquisition growth was consistent with what we expected. The difference is really some slight elevated churn throughout Q1. This is pretty small, so retention was still very good. It's a combination of factors there. We talk about interrelated factors in the letter, but one very directly, that Russia's invasion of Ukraine had some spillover effect in other parts of EMEA. We saw that in the Central and Eastern European countries. There was some elevated churn. We also saw probably somea little bit more macro strain in some countries, some parts of the world, like Latin America. So that's really what we saw in Q1, and that's really what's reflected in Q2, which is sort of the continued trends we're seeing in acquisition and that slightly elevated churn to probably continue through the quarter. AnswerGregory K. Peters: And maybe I could pick it up and talk about the first two factors you want a little bit more detail on. It's a bunch of enabling factors like broadband and smart TVs. And that was really boosted by sort of this growth at the beginning period of COVID and the lockdown. Now, that viewer penetration is made up of two groups. One is a group that'spaying us, which is great, and then there is a group of viewers that are not paying us. They have everything they need to do to get to Netflix, they know what the service is, they found titles that they want to watch. And so, now, our job is really to better translate that viewing and the value that those consumers are getting into revenue. QuestionDougAnmuth:Somaybelet'sfollowuponthatalittlebitmoreGregWe'llcomebacktosomeofthe Question Doug Anmuth: So, maybe lets followup on that a little bit more, Greg. But how do you think about rolling that out in the US ? And what will the implementation actually look like ? AnswerGregory K. Peters: Yeah. So, there's a bunch of factors that we'reworking through. That's why we've deployed the tests that we have. Frankly, we've been working on this for about almost two years. And so, just to set your expectations, my belief is that we're going to go through a year or so of iterating and then deploying all of that, so that we get that solution globally launched, including markets like the United States.

We did see a little bit of a stepback in service times because of theI think the operating environment, the challenges of just making sure that we have the staffing that we need. The reason that that's so important is when we reduce service times, we see customer satisfaction go up. Right now in the US, about 80% of our restaurants have the dining room open. Expectation is that more of those will continue to open. And again, versus 2019, we're better off than where we started in 2019, but we think there's opportunity for us to continue to be showing progress on that. AnswerMike Cieplak: Our next question is from Brian Bittner with Oppenheimer. Analyst:Brian Bittner QuestionBrian Bittner: Thanks. My question relates to the IOM segment. And obviously there's a lot of several important large markets that make up this segment. But can you update us on how much market share you believe you've taken in the overall IOM segment since the beginning of COVID ? And what's been the primary drivers of these share gains ? And how does it frame how you think about the potential strength of the IOM business in a post COVID world ? AnswerChristopher J. Kempczinski: I'll take it, and then Kevin can fill in. But I think as you mentioned, there's a lot of different markets in IOM, and it's always a little bit of a challenge to talk about them in the aggregate. And so for us as you think about then rolling out of things like shutdowns that we're dealing within Australia, we've had to deal with some of those things in Canada, Germany has been impacted. AnswerKevin M. Ozan: Yeah, the only thing I'd add is, I mean, to your point and to Chris' point, obviously IOM is a conglomeration of several different markets. So the markets are indifferent places. Markets like the UK, Canada have been really strong even throughout the pandemic, whereas some markets like France and Germany are still more in recovery mode. And as Chris mentioned, most of the major markets have gained share throughout the pandemic, and so we, again, hopefully are coming out of the pandemic in a really strong place insubstantially all of those markets.

And if you look at our sales, our top 20 deals, 15 to 16 of those deals include MuleSoft, include Tableau, we are not only talking about, but we are delivering, and customers are consuming these more complete journeys and stories, and we have the power to go deliver them as well. This last year, last point, Terry, is one thing that's very exciting for MuleSoft is given our size, preacquisition, it didn't make sense yet for us to orient ourselves around industry.