Earnings Calls Unpacked

Irrespective of the numbers, financial storytelling and strategic communication play a massive role in influencing market perceptions. Hamza Fodderwala, Executive Director at Morgan Stanley, joins CJ to discuss the critical role of CFOs in shaping and communicating a company's financial story. Hamza explains the role of storytelling in driving stocks, the significance of aligning company narratives with prevailing market themes, the metrics that software investor analysts do and don’t want to see, the delicate balance of transparency in financial disclosures, and the art and science of giving good guidance. Hear how to balance long-term thinking with short-term market pressures and whether you should focus on managing expectations or results.

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LINKS:

Hamza Fodderwala on LinkedIn: https://www.linkedin.com/in/hamza-fodderwala-66997526/

Morgan Stanley:

https://www.morganstanley.com/

CJ on X (@cjgustafson222): https://x.com/cjgustafson222

Mostly metrics:

http://mostlymetrics.com

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TIMESTAMPS:

(00:00) Preview and Intro

(02:03) Sponsor – NetSuite | Planful | Subscript

(05:54) Sell-Side” Versus “Buy-Side”

(07:34) Some of the Companies Hamza Covers

(08:23) The Role of Storytelling in Driving Stocks

(12:29) How CrowdStrike Turned Its Investor Narrative Around

(16:09) Sponsor – Rippling Spend | Vanta | Tropic

(20:11) What Sets Good CFOs Apart When It Comes to Storytelling

(23:57) The Metrics That Software Investor Analysts Want To See

(25:10) Does a CFO Need To Understand the Underlying Technology

(26:14) How Often a Company Can or Should Shift Its Narrative

(28:14) How To Retire a Metric Gracefully

(33:29) The Art and Science Behind Giving Good Guidance

(37:29) Metrics That Can Be Retired

(39:25) Separating Business Fluctuations From the Broader Economy

(42:57) Long-Term Thinking Versus Market Pressures

(46:33) Managing Expectations Versus Managing Results

(47:52) An Example of Where the Market Misread a Company’s Results

(50:01) Hamza’s Most Memorable Earnings Call

(51:52) Investor Days: Net Positive or Neutral

(54:00) The Buzzword Hamza Would Ban From Earning Calls