WEBVTT - Qualcomm Earnings, Musk $1 Trillion Pay Vote 0:00:02.520 --> 0:00:13.119 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a 0:00:13.160 --> 0:00:16.920 live from Coast to coast with Caroline Hide in New 0:00:17.000 --> 0:00:19.479 York and Eva low intend Francs go. 0:00:23.600 --> 0:00:25.119 This is Bloomberg Tech coming up. 0:00:25.200 --> 0:00:28.440 Qualcom gives an upbeat forecast, but it fell short of 0:00:28.480 --> 0:00:32.080 investor expectations. We'll discuss why with the CEO. 0:00:31.880 --> 0:00:35.200 Plus the earnings don't stop their executives from Figma, Robin Hood, 0:00:35.280 --> 0:00:36.040 Chime and Lift. 0:00:36.240 --> 0:00:38.320 They join us after important results. 0:00:38.720 --> 0:00:41.879 And all eyes on Tesla as we await the outcome 0:00:42.040 --> 0:00:44.880 of a shareholder vote on a one trillion dollar pay 0:00:44.920 --> 0:00:46.200 package for Elon. 0:00:46.000 --> 0:00:47.120 Musk and Tesla. 0:00:47.280 --> 0:00:49.320 It weighs on the broader market said, let's get to 0:00:49.360 --> 0:00:52.400 those broader markets on the day, because well, overall, we've 0:00:52.400 --> 0:00:54.440 got a lot of macro data to be digesting, and 0:00:54.480 --> 0:00:56.720 that feeds in the angst that we've been seeing in 0:00:56.800 --> 0:00:59.400 tech stocks. More broadly, we're of by one point on 0:00:59.400 --> 0:01:00.440 the NASDAK one one hundred. 0:01:00.440 --> 0:01:01.840 We're still questioning valuations. 0:01:01.920 --> 0:01:04.440 It's interesting that the AI play moves into the macro 0:01:04.520 --> 0:01:07.720 in terms of jobs data not coming from the federal departments, 0:01:07.840 --> 0:01:10.080 but it is coming from Challenger Gray and Christmas and 0:01:10.080 --> 0:01:12.280 they're saying, we've never seen in October as bad as 0:01:12.319 --> 0:01:15.000 this in twenty years in terms of one hundred and 0:01:15.000 --> 0:01:18.840 fifty three thousand jobs losses, AI automation being blamed Bitcoin 0:01:19.120 --> 0:01:20.319 of by one point seven percent. 0:01:20.440 --> 0:01:21.600 We got some risk aversion ed. 0:01:22.440 --> 0:01:22.640 Yeah. 0:01:22.680 --> 0:01:24.920 In the chip sector, we have two very similar stories 0:01:25.000 --> 0:01:27.800 with two very different reactions. ARM has given us a 0:01:27.800 --> 0:01:31.040 bullish outlook for the current period, which basically suggests they're 0:01:31.040 --> 0:01:31.639 making traction. 0:01:31.720 --> 0:01:32.240 In AI. 0:01:32.520 --> 0:01:34.440 The shares that opened a lot higher, we're now down 0:01:34.440 --> 0:01:38.080 two percent. Qualcomm again giving a pretty bullish outlook for 0:01:38.120 --> 0:01:41.920 the current period, traction in traditional markets, diversifying revenue, but 0:01:42.000 --> 0:01:44.440 that stock is down four percent at the high end 0:01:44.440 --> 0:01:48.320 of high end of estimates. They didn't quite get there. 0:01:48.560 --> 0:01:50.920 Then there's in the media and entertainment space, Warner Brothers 0:01:51.000 --> 0:01:54.600 Discovery actually missed estimates on revenue in the quarter, but 0:01:54.680 --> 0:01:57.840 amid plans for a sale or some kind of transaction, 0:01:58.160 --> 0:02:00.760 that's really all the street really cared about, it is, and. 0:02:00.800 --> 0:02:03.760 Let's dig into that street reaction, the stock reaction. 0:02:03.840 --> 0:02:05.560 Hannah Miller's here to covering. 0:02:05.240 --> 0:02:08.640 All things media, and really almost these numbers vindicated the 0:02:08.680 --> 0:02:11.840 decision by David Zazov to be separateing out the businesses 0:02:11.919 --> 0:02:12.520 talk us through it. 0:02:12.760 --> 0:02:15.640 Yeah, so this morning we heard David Zaslov really play 0:02:15.720 --> 0:02:18.120 up the strength of the studio segment. They had some 0:02:18.160 --> 0:02:21.640 big blockbuster hits this summer with Superman and Weapons. 0:02:21.880 --> 0:02:23.440 He wants buyers to. 0:02:23.480 --> 0:02:27.640 Look at the movie business, not the street the TV network's. 0:02:27.280 --> 0:02:29.519 Business, of course. 0:02:29.680 --> 0:02:32.400 Mister Sarsluff was asked about what happens next, and his 0:02:32.520 --> 0:02:36.720 response was pretty straightforward. We have an active process underway. 0:02:36.960 --> 0:02:38.800 Are you able to tell us any more, Hannah, about 0:02:38.840 --> 0:02:40.640 what an active process underway means. 0:02:41.000 --> 0:02:41.200 Yeah. 0:02:41.560 --> 0:02:44.120 They want to move quick on this, and we're expecting 0:02:44.200 --> 0:02:48.600 to get more news in December about this deal. You know, 0:02:48.720 --> 0:02:50.840 the bids have to come in. They have to consider 0:02:51.160 --> 0:02:55.040 all the interests they're getting from players like Netflix, Comcast, 0:02:55.160 --> 0:02:58.119 and Paramount. It's going to be really interesting to see 0:02:58.120 --> 0:02:58.799 how it plays out. 0:02:59.080 --> 0:03:01.600 But Hannah, are they the names that we're limited to, 0:03:02.240 --> 0:03:04.720 or could we see big tech throw it's had in 0:03:04.760 --> 0:03:07.640 the ring? Who else might be interested in a CNN 0:03:07.720 --> 0:03:09.760 on one side or more of the studios on the 0:03:09.760 --> 0:03:10.360 other side. 0:03:10.480 --> 0:03:10.679 Yeah. 0:03:10.720 --> 0:03:13.600 We're also you know, hearing whispers about Amazon. You know, 0:03:13.639 --> 0:03:15.880 they could come in as they try to continue building 0:03:15.919 --> 0:03:19.560 out their prime video streaming service. You know, there are 0:03:19.639 --> 0:03:22.840 these valuable assets. You know, there is the focus on 0:03:22.919 --> 0:03:25.400 the movie business HBO, but we have to remember that 0:03:25.520 --> 0:03:29.720 their CNN, there's a valuable sports portfolio. There are some 0:03:29.760 --> 0:03:31.519 really nice assets up for grabs here. 0:03:32.400 --> 0:03:34.600 Blom Bogs, Hannah Miller, thank you very much. Let's get 0:03:34.600 --> 0:03:38.000 back to the chip sector. ARM gave a bullish revenue forecast, 0:03:38.040 --> 0:03:41.520 helped by rising interest in designing chips to run AI 0:03:41.640 --> 0:03:45.640 data centers. Congenser Barney, senior analyst at Bloomberg Intelligence, writing, 0:03:46.040 --> 0:03:50.680 operating expenses remain elevated on AI investments and full chip initiatives, 0:03:50.920 --> 0:03:54.680 but long term share gains and rising royalty content continue 0:03:54.680 --> 0:03:58.480 to support its outlook. Conngenser Barni joins us now on 0:03:58.680 --> 0:04:01.840 mix money. In two ways, it licenses the blueprints the 0:04:01.920 --> 0:04:04.920 underlying technology for a chip, and then it gets royalty 0:04:04.960 --> 0:04:08.000 in each unit of that chips that's sold. The story 0:04:08.080 --> 0:04:11.120 here is about what ARM is offering in the AI 0:04:11.240 --> 0:04:13.600 accelerator space or in the data center context. 0:04:14.000 --> 0:04:15.920 Explain what you saw in the numbers that they gave. 0:04:17.480 --> 0:04:20.240 Yeah, the data center strength was really the highlight, as 0:04:20.240 --> 0:04:24.720 you mentioned ed when you look at the royalty revenues 0:04:24.720 --> 0:04:27.200 from the data center. Last fiscal year it was about 0:04:27.240 --> 0:04:30.240 ten percent of royalties. We expect this now to get 0:04:30.240 --> 0:04:33.440 to almost eighteen to twenty percent, so a two x 0:04:33.480 --> 0:04:36.520 increase in one year by the end of fiscal twenty six. 0:04:36.760 --> 0:04:39.720 What's really driving here In the quarter, they signed a 0:04:39.720 --> 0:04:43.960 lot of CSS license deals. Basically, they're licensing their IP 0:04:44.160 --> 0:04:46.320 to a lot of data center customers, whether it's been 0:04:46.400 --> 0:04:51.040 the merchant customers, the ACIC designers, soft Bank, and even 0:04:51.160 --> 0:04:54.359 Chinese customers. A lot of these licenses when eventually you 0:04:54.400 --> 0:04:58.320 get converted into royalty revenues, hence creating a tailwind for 0:04:58.560 --> 0:05:00.400 layering more and more royalty debsues. 0:05:00.560 --> 0:05:02.520 Their share is significantly. 0:05:01.920 --> 0:05:05.320 Increasing quarter over quarter and is as we know. And 0:05:05.480 --> 0:05:07.760 Media is going to launch their service with the Blackwell. 0:05:09.000 --> 0:05:11.360 The Blackwell service or the CPU in that service are 0:05:11.400 --> 0:05:13.320 going to be based on the RP. And you look 0:05:13.320 --> 0:05:16.640 at Amazon ramping its grivet and chip that's based on 0:05:16.680 --> 0:05:19.200 the RP, Google sexim chip based on the RP. So 0:05:19.240 --> 0:05:22.760 they're seeing significant share games here, which eventually sets them 0:05:22.839 --> 0:05:25.680 up to have strong royalty growth in the future from 0:05:25.720 --> 0:05:26.640 the data center. 0:05:26.440 --> 0:05:29.479 Segmentunjin, you mentioned SoftBank course, soft Bank is the main 0:05:29.520 --> 0:05:34.920 owner of some of it trades on the public markets, 0:05:34.960 --> 0:05:39.320 big player in just the broader AI space Stargate for example. 0:05:39.680 --> 0:05:42.159 Did you get enough detail from Rene Has the CEO 0:05:42.160 --> 0:05:44.680 of arm about their role in Stargate in the big 0:05:44.720 --> 0:05:45.120 build out? 0:05:46.520 --> 0:05:48.200 We did like So if you look at the numbers 0:05:48.200 --> 0:05:51.280 this quarter, Software brought in somewhere about one hundred and 0:05:51.320 --> 0:05:55.479 eighty million in royalty revenues, fifty million jump from just 0:05:55.560 --> 0:05:58.160 last quarter. Also, when we look at revenues by GEO, 0:05:58.279 --> 0:06:02.479 Japan is becoming now almost fifteen to twenty percent of revenue, 0:06:02.480 --> 0:06:05.120 which until a few quarters ago Japan was merged into 0:06:05.240 --> 0:06:06.320 small category other. 0:06:06.640 --> 0:06:08.000 So that tells you that. 0:06:08.440 --> 0:06:11.640 The amount of revenue both from royalty side and licensing 0:06:11.680 --> 0:06:14.719 that Softmaen is bringing into this company and going to 0:06:14.720 --> 0:06:17.719 become a significantly big concentrated. 0:06:17.120 --> 0:06:18.160 Customer going forward. 0:06:18.320 --> 0:06:21.680 Software has a lot of portfolio companies that acquired Graphcore 0:06:22.920 --> 0:06:26.080 mper so you can imagine it's a leading indicator of 0:06:26.120 --> 0:06:28.800 where they would be using arm IP. Also, there's news 0:06:28.839 --> 0:06:32.360 about Software working with Armed sort of develop their own chips. 0:06:34.080 --> 0:06:38.440 Qualcom strong outlook for the current period suggests strengthen Android 0:06:38.640 --> 0:06:42.400 and efforts to diversify revenue sources doing well. We're sharing 0:06:42.400 --> 0:06:44.920 your research on the screen. Conjen, very quick, give us 0:06:44.920 --> 0:06:45.440 your react. 0:06:46.880 --> 0:06:48.000 Yeah, it was a good quarter. 0:06:48.200 --> 0:06:51.600 But the concern here is that the fear that they 0:06:51.640 --> 0:06:53.880 would go back to seventy five percent of share at 0:06:53.880 --> 0:06:55.240 Samsung comes to be coming true. 0:06:55.320 --> 0:06:57.120 So that's I think what investors didn't like. 0:06:57.400 --> 0:07:00.039 We think that Apple share is higher than what we 0:07:00.080 --> 0:07:02.360 feared seventy it's close to eighty to eighty five percent, 0:07:02.560 --> 0:07:05.640 but that goodness got offset by the Samsung share drop. 0:07:06.360 --> 0:07:09.200 Conjin Savani, always great research from you and the team. 0:07:09.360 --> 0:07:18.160 We appreciate it. Of Blomberg Intelligence shares a quil Com. 0:07:18.200 --> 0:07:20.200 We check in on them because they're reported last night. 0:07:20.760 --> 0:07:22.800 They're training a little bit lower today. But the chip 0:07:22.800 --> 0:07:25.760 maker actually really delivered an upbeat forecast. They had sales 0:07:25.760 --> 0:07:28.640 and profits handily topping Wall Street expectations. 0:07:29.040 --> 0:07:30.760 But maybe the market got ahead of itself. 0:07:30.840 --> 0:07:32.800 Let's talk about it all and the real fundamentals with 0:07:32.880 --> 0:07:35.560 Christiano Ammon's quill Com CEO. And I'm sure it's really 0:07:35.600 --> 0:07:38.200 frustrating to start on the start on the stock market reaction, 0:07:38.320 --> 0:07:40.680 But what do you think investors had done ahead of this? 0:07:40.760 --> 0:07:41.960 Have they got over excited. 0:07:42.000 --> 0:07:43.400 We're seeing this play out with a few of the 0:07:43.480 --> 0:07:44.040 chip sector. 0:07:45.360 --> 0:07:47.600 Look, it is really hard to predict the market right now, 0:07:48.080 --> 0:07:51.800 but we're We're incredibly happy about the company. I think 0:07:51.840 --> 0:07:55.760 we're executing very well our strategy, explaining out perfectly. Everything 0:07:55.800 --> 0:07:58.960 we said we're going to do, we're actually doing better. 0:07:59.440 --> 0:08:02.520 And like I could not be more excited about so 0:08:02.560 --> 0:08:04.920 many things that are going well at Qualcomm right now 0:08:04.920 --> 0:08:07.640 and the new opportunities we have in the future. I 0:08:07.640 --> 0:08:11.880 think the company is very different. We had expanded beyond 0:08:12.520 --> 0:08:14.480 handsets into a number of different markets. 0:08:14.520 --> 0:08:16.000 The results are showing. 0:08:15.960 --> 0:08:19.640 And there are very few companies like wealcom that can 0:08:19.680 --> 0:08:23.160 go from five watts chips for earbuds all the way 0:08:23.240 --> 0:08:26.280 to now five hundred watts chips for a data center. 0:08:26.320 --> 0:08:28.720 And I think that's how we think about the opportunity. 0:08:28.880 --> 0:08:30.720 We can't wait to get into more on the detail 0:08:30.760 --> 0:08:33.000 of how you're jumping into the AI accelerator offering, but 0:08:33.080 --> 0:08:34.880 just going to the smartphone business, which. 0:08:34.720 --> 0:08:35.440 Is the bread and butter. 0:08:35.559 --> 0:08:37.520 What are you seeing at the moment and particularly what 0:08:37.559 --> 0:08:38.920 inroads you're making an Android? 0:08:39.920 --> 0:08:44.880 Yes, so, you know, I think this is a very 0:08:44.920 --> 0:08:48.360 interesting and it's you know, every quarter we see this. 0:08:48.559 --> 0:08:51.040 I know there's a lot of conversation about it, but 0:08:51.440 --> 0:08:54.160 it's a trend that has happened to qualkom over the 0:08:54.200 --> 0:08:57.319 past several years. I want everybody to step back and 0:08:57.720 --> 0:09:01.000 look at what's happening with the hands and marketingneral they 0:09:01.160 --> 0:09:05.360 hants it. Smartphone is the most important consumer electronic purchase 0:09:05.360 --> 0:09:09.000 in the world. It's aren't separable device and people want 0:09:09.240 --> 0:09:11.520 always to get a better device when they buy a 0:09:11.559 --> 0:09:14.679 new device. What we see right now is the expansion 0:09:14.800 --> 0:09:18.280 of the premion teer. So the market Caroline didn't. The 0:09:18.679 --> 0:09:21.880 units of hands and market is still smaller in an 0:09:21.880 --> 0:09:25.560 annual basis than used to be before COVID. But what 0:09:25.720 --> 0:09:28.160 has happened and is driving a lot of growth from 0:09:28.200 --> 0:09:32.560 Qualkan and Android over the past several years is the 0:09:32.720 --> 0:09:36.000 premium teer is expending in size. So if you look 0:09:36.000 --> 0:09:38.920 at a United States market, most devices are premionteer. Most 0:09:38.920 --> 0:09:41.920 people will buy like an iPhone or Galaxy. That's now 0:09:41.960 --> 0:09:44.800 happening everywhere in the world. It's happening in China's happening 0:09:44.800 --> 0:09:48.800 in India. So we see premionteer expending. That makes you 0:09:48.960 --> 0:09:51.840 a much richer market for us, and then we see 0:09:52.080 --> 0:09:56.200 phones becoming more capable, more compute, more AI. That is 0:09:56.280 --> 0:10:00.680 driving silicon content. That's why Android continues to grow with 0:10:00.800 --> 0:10:04.080 Snapdragon eight. And I think the upside that we have 0:10:04.200 --> 0:10:09.720 seen above expectations is really Android expansion for Qualcom. 0:10:10.880 --> 0:10:11.880 Christiano, good morning. 0:10:12.280 --> 0:10:12.640 It's ed. 0:10:13.400 --> 0:10:15.880 What you've tried to do is diversify away from mobile 0:10:16.559 --> 0:10:18.959 and away from Apple. Right, but there are so many 0:10:19.000 --> 0:10:23.840 categories now data center, but auto, mixed reality. Which of 0:10:23.920 --> 0:10:26.640 those is the fastest moving for you? 0:10:26.880 --> 0:10:27.400 Right now? 0:10:28.320 --> 0:10:31.480 Look right now you probably see in terms of the 0:10:31.720 --> 0:10:38.800 speed it's automotive. I think we have been growing significantly 0:10:39.840 --> 0:10:42.280 on an ear of a year basis, and most of 0:10:42.320 --> 0:10:45.680 our growth, again, like the conversation with Hints, it has 0:10:45.720 --> 0:10:47.920 nothing to do about the market side. It's just us 0:10:47.960 --> 0:10:51.840 gaining share those cars becoming really computer on wheels, and 0:10:51.880 --> 0:10:54.959 we build a digital platform for the core industry, which 0:10:55.000 --> 0:10:58.760 is the Snapdragon Digital chassis. So when you talk about 0:10:58.760 --> 0:11:03.240 diversification away from hintst in an Apple, a couple of 0:11:03.280 --> 0:11:06.280 things that actually came out in those results. They are 0:11:06.400 --> 0:11:10.080 incredible and show what we've been saying we're doing it. 0:11:10.440 --> 0:11:15.079 We just close our fist career the non Apple related 0:11:15.120 --> 0:11:17.920 growth in the company about eighteen percent, and when you 0:11:17.960 --> 0:11:22.960 look at segments like automotive, we're actually doing significantly higher 0:11:23.000 --> 0:11:25.520 than that. And that's also the other segment as well. 0:11:25.640 --> 0:11:29.199 The other part of the question is what's moving faster, 0:11:29.840 --> 0:11:34.400 and we are incredibly optimistic about those new category of 0:11:34.440 --> 0:11:39.079 mobile devices, which we call personal AI devices, as AI 0:11:39.160 --> 0:11:44.600 models and agent applications started to appear for consumers. That's 0:11:44.720 --> 0:11:49.440 materializing with devices that people wear like US glasses for example, 0:11:49.600 --> 0:11:54.520 really becoming agenta glasses, and we said two billion of 0:11:54.760 --> 0:11:56.520 revenue by fiscal twenty nine. 0:11:56.679 --> 0:11:58.000 We're way ahead of that. 0:11:58.440 --> 0:12:02.600 Just looking of how to performing right now, especially with Meta. 0:12:04.400 --> 0:12:06.400 This is the first opportunity we've had to speak to 0:12:06.440 --> 0:12:09.560 you since the Big Data Center News AI two hundred 0:12:09.600 --> 0:12:12.560 to start, and the question that I've had most often 0:12:12.720 --> 0:12:17.120 for you from the audience is what is quite different 0:12:17.160 --> 0:12:21.200 about Qualcom's approach, particularly to inference. You have this AI 0:12:21.280 --> 0:12:25.200 accelerator family or MPU. How is it different from an 0:12:25.280 --> 0:12:29.920 nvideo or AMD GPU, a broad coom, Marvel XPU, or 0:12:29.960 --> 0:12:33.080 this large body of startups that are basically chasing rack 0:12:33.160 --> 0:12:34.640 scale solutions for AI. 0:12:35.760 --> 0:12:39.480 Yes, so I'll start answering the question by saying the following. 0:12:40.559 --> 0:12:43.480 There's a lot of people that will love Qualcom. There 0:12:43.480 --> 0:12:45.920 are people they're not gonna like Qualcom. But one thing 0:12:45.960 --> 0:12:49.520 everybody's probably going to say, don't bet against Qualcom being 0:12:49.559 --> 0:12:53.760 a technology competent company. I think look just last year 0:12:53.800 --> 0:12:56.200 with the number one company in America in terms of 0:12:56.240 --> 0:12:59.800 patent applications and every market that we actually enter, we 0:13:00.240 --> 0:13:03.800 developed something very unique from a technology leadership. So now 0:13:03.840 --> 0:13:07.120 to answer your question, what are we doing, We're actually 0:13:07.480 --> 0:13:10.840 were very focus on the next phase of data center, 0:13:10.880 --> 0:13:14.240 the next phase of data center. If you expect all 0:13:14.320 --> 0:13:17.520 of those projections to materialize and all of those companies 0:13:17.559 --> 0:13:22.080 investing in data center ANDAI to deliver the profitability the 0:13:22.160 --> 0:13:24.240 market expects they're going to have to do. 0:13:24.320 --> 0:13:24.760 Inference. 0:13:24.880 --> 0:13:29.520 Inference is wreactly when you put AI into production at scale. 0:13:30.160 --> 0:13:33.480 And if you see just some of the conversations you're 0:13:33.480 --> 0:13:36.680 seeing the market right now about concerns of growth rates. 0:13:36.840 --> 0:13:39.439 Power is one of the concerns. You need a lot 0:13:39.440 --> 0:13:44.000 of energy. So we're coming from our DNA of building devices. 0:13:44.040 --> 0:13:46.560 They're very efficient in power, and we think about what 0:13:46.600 --> 0:13:51.319 are the architecture that is dedicated for inference, especially for 0:13:51.360 --> 0:13:54.640 the post GPU. I think architecture, and I think that's 0:13:54.679 --> 0:13:57.320 what we're doing. I think we're developing an architecture that 0:13:57.440 --> 0:14:01.559 is optimized to the highest possible compute density you can 0:14:01.600 --> 0:14:04.520 put on a data center for a very efficient power 0:14:05.000 --> 0:14:07.200 and people are interested, and we're. 0:14:07.000 --> 0:14:09.160 Just busy executing. I think the other part. 0:14:08.960 --> 0:14:12.640 Of the answer, ED is will you why you not 0:14:12.760 --> 0:14:15.760 think the potcom will have an opportunity to participate? The 0:14:15.880 --> 0:14:18.400 market is so big we don't have to get a lot. 0:14:18.559 --> 0:14:21.240 Everything we get is multiple or billions of dollars. 0:14:21.360 --> 0:14:25.920 Christiana, you brought up a really interesting if if some 0:14:25.960 --> 0:14:29.800 of the big numbers that are being bounded about by 0:14:29.800 --> 0:14:32.720 the big players come to light, three trillion dollars by 0:14:32.760 --> 0:14:35.040 twenty twenty eight is what Morgan Stanley thinks is going 0:14:35.040 --> 0:14:36.320 to be needed in data centers. 0:14:37.000 --> 0:14:38.840 What if it doesn't, is there. 0:14:38.720 --> 0:14:41.320 A risk that we actually innovate because we have to 0:14:41.320 --> 0:14:43.600 invade because there isn't enough power and suddenly that data 0:14:43.600 --> 0:14:44.880 center demand just isn't going. 0:14:44.800 --> 0:14:45.960 To live up to that expectation. 0:14:47.000 --> 0:14:49.200 Now for quockcom for us is oh upside. 0:14:49.720 --> 0:14:51.800 So do you think can I just get a take 0:14:51.800 --> 0:14:54.080 on whether you think that three trillion dollars figure if 0:14:54.120 --> 0:14:58.120 it is reasonable. Do you have any negative worries, any concerns. 0:14:58.600 --> 0:14:59.720 Look, I don't. 0:15:00.520 --> 0:15:04.200 I believe that the need for compute is very clear. 0:15:04.280 --> 0:15:07.440 That's not only also not only on the data centers, everywhere. 0:15:07.480 --> 0:15:09.600 I think we see that on phones, we see that 0:15:09.640 --> 0:15:13.280 on cars, we see that on PCs. AI needs a 0:15:13.280 --> 0:15:16.760 lot more computing power, and I think I believe what 0:15:16.800 --> 0:15:20.280 that will actually do is create opportunity for innovation, and 0:15:20.320 --> 0:15:23.640 there'll be competition. Right now, everybody's playing to win, everybody's 0:15:23.640 --> 0:15:25.800 building data centers to win, and then there's going to 0:15:25.800 --> 0:15:28.280 be competition. And I think that's what our focus is. 0:15:28.320 --> 0:15:31.520 But I don't believe the trend and the need for 0:15:31.560 --> 0:15:34.640 a computer. You can have an argument about the timing, 0:15:34.960 --> 0:15:37.120 but the trend is very clear. Here's one way I'll 0:15:37.120 --> 0:15:39.560 describe it to you, and I'll be very careful. 0:15:39.160 --> 0:15:40.240 With my words. 0:15:40.720 --> 0:15:43.400 The Internet, when we thought about what the Internet will 0:15:43.440 --> 0:15:46.880 be back in nineteen ninety nine, is bigger today. It's 0:15:47.040 --> 0:15:49.840 much d Internet's much bigger today than people thought. So 0:15:49.840 --> 0:15:54.800 I think on the long run, AI is probably underestimated. 0:15:54.880 --> 0:15:55.920 It's going to be bigger. 0:15:56.160 --> 0:15:59.320 The question is always going to be about timing, and 0:15:59.440 --> 0:16:02.520 we're prepared for when there's going to be competition. 0:16:03.560 --> 0:16:05.800 Christiano Iman of Qualcom, great to have you back on 0:16:05.840 --> 0:16:09.520 the show, Thank you very much. Figma delivered an upbeat outlook, 0:16:09.560 --> 0:16:12.880 projecting stronger than expect to coally revenue and profit, citing 0:16:12.960 --> 0:16:16.080 strong demand and growing adoption of its new products. I 0:16:16.120 --> 0:16:18.960 sat down with CEO Dylan Field, who began by explaining 0:16:19.000 --> 0:16:22.240 the impact to growth from acquiring Weav, a startup focused 0:16:22.440 --> 0:16:25.600 on generating imagery with AI within a web browser. 0:16:27.800 --> 0:16:30.960 Weav is this amazing product where you can bring in 0:16:31.320 --> 0:16:33.280 a whole sorts of models, you can compose them in 0:16:33.280 --> 0:16:37.440 a notebase system, which basically means drag and draw visual programming, 0:16:37.920 --> 0:16:40.560 and from there you can really start to explore what's 0:16:40.560 --> 0:16:43.800 possible with various models. So for us, it's a bet 0:16:43.840 --> 0:16:47.360 that the starting prompt is just the starting prompt, it's 0:16:47.400 --> 0:16:50.160 not the end. What you need to do is shape 0:16:50.200 --> 0:16:54.080 these outputs almost like a medium like clay, rather than 0:16:54.280 --> 0:16:56.760 try to go for the one shot and then the 0:16:56.760 --> 0:17:01.320 final destination should be what you get through throughout this process. 0:17:01.680 --> 0:17:04.159 The team itself is incredible. I mean they've managed to 0:17:04.200 --> 0:17:08.080 really balance simplicity with power so that they're able to 0:17:08.119 --> 0:17:12.359 achieve an incredible environment for creative exploration and process and 0:17:12.359 --> 0:17:15.920 workflow building, and really excited to work with them and 0:17:16.440 --> 0:17:17.280 build this out further. 0:17:17.720 --> 0:17:20.320 It brings me back to the customer behavior question. So 0:17:21.040 --> 0:17:23.920 revenue for the full year will be one point zero 0:17:24.000 --> 0:17:27.119 four four billion to one point zero four six billion dollars. 0:17:27.359 --> 0:17:30.560 But I guess it's is this existing customers using more 0:17:30.600 --> 0:17:33.960 products or is it a custom account growing higher because. 0:17:33.680 --> 0:17:35.640 You're offering a wider range of products. 0:17:35.760 --> 0:17:39.720 Yeah, I mean definitely both, and also new customers adopting. 0:17:40.280 --> 0:17:44.760 We are seeing an acceleration all that, and our NDR 0:17:44.880 --> 0:17:47.440 for example, from one twenty nine to one thirty one 0:17:47.440 --> 0:17:54.879 percent this quarter, and that's on over ten k err customers. 0:17:55.640 --> 0:18:00.320 The way that we look at just what's going on 0:18:00.400 --> 0:18:04.600 overall is people really like the platform aspect of Figma, 0:18:05.240 --> 0:18:08.200 and that is something that drives adoption. But also the 0:18:09.480 --> 0:18:12.800 interoperability between the different products we have is really important 0:18:13.160 --> 0:18:16.119 and something that we're trying to make all the better. 0:18:15.920 --> 0:18:16.480 All the time. 0:18:17.560 --> 0:18:21.080 In the quarter gone, net losses were driven by stock 0:18:21.119 --> 0:18:21.960 based compensation. 0:18:22.240 --> 0:18:25.920 Yeah, the one from event related to the IPO in particular. 0:18:25.560 --> 0:18:29.080 Related to the IPI particular, but you know, stock based 0:18:29.119 --> 0:18:31.400 comp is part of this business in the world of technology, 0:18:31.400 --> 0:18:34.200 but it's also like part of the fabric and culture 0:18:35.119 --> 0:18:38.440 of the technology industry, particularly now where we have this 0:18:38.920 --> 0:18:42.399 fixation on AI talent. What is your strategy going to 0:18:42.400 --> 0:18:45.600 be from this point, Dylan, just less stock comport or 0:18:45.600 --> 0:18:47.120 you just have to manage it differently. 0:18:47.520 --> 0:18:49.879 Well, I think that, first of all, it starts with 0:18:50.160 --> 0:18:53.640 making sure that you see and everyone sees stock based 0:18:53.680 --> 0:18:59.040 compensation as a natural expense, and I think that as 0:18:59.080 --> 0:19:03.240 we build out we will see that number normalize on 0:19:03.280 --> 0:19:06.280 a nine gap basis. This is a profitable quayer for us, 0:19:06.480 --> 0:19:11.760 and we continue to invest heavily in the short term 0:19:11.800 --> 0:19:16.000 in order to drive long term platform growth and capabilities 0:19:16.080 --> 0:19:18.840 for our customers. I think that every customer wants that, 0:19:19.480 --> 0:19:21.520 and our investors want that as well. 0:19:22.280 --> 0:19:25.320 Dylanfield, Figma CEO with you, Ed. I mean, while Robin 0:19:25.320 --> 0:19:28.639 Hood also reported earnings yesterday, shares actually falling them this morning. 0:19:28.720 --> 0:19:32.159 Though the company's crypto earnings they were lower than expected, Meanwhile, 0:19:32.160 --> 0:19:35.480 operating costs they were higher. Now, Robinhood, CEO of lad Tenev, 0:19:35.720 --> 0:19:38.680 sat down with us yesterday and discussed the trading platform's 0:19:38.720 --> 0:19:40.600 plan to expand its offering. 0:19:42.800 --> 0:19:47.200 The interesting thing about prediction markets is it rounds out 0:19:47.600 --> 0:19:53.399 the offering in sort of like complete the time at 0:19:53.440 --> 0:19:57.280 which Robinhood customers can continue to engage with the platform. 0:19:57.840 --> 0:20:02.080 For a while, we were offering prominantly US equities, which 0:20:02.119 --> 0:20:07.120 is very much at US East Coast working hours type 0:20:07.160 --> 0:20:10.440 of event markets are open, you know, nine to four 0:20:11.320 --> 0:20:14.240 East Coast hours, and then we've expanded that over time 0:20:14.359 --> 0:20:18.160 with US introducing twenty four hour market, We've added crypto 0:20:18.640 --> 0:20:21.640 and now prediction markets. A lot of the events, particularly 0:20:21.640 --> 0:20:26.080 in sports, are happening nights and weekends, so robin Hood 0:20:26.160 --> 0:20:31.359 is becoming increasingly a twenty four seven platform where you 0:20:31.359 --> 0:20:36.480 can trade and invest in global markets at all. 0:20:36.320 --> 0:20:37.160 Times of the day. 0:20:37.920 --> 0:20:42.119 And I think our customers do tend to be digitally 0:20:43.000 --> 0:20:48.280 native and quite savvy. That tends to lean younger, but 0:20:48.359 --> 0:20:50.680 we also have customers that are, you know, in their 0:20:50.720 --> 0:20:52.040 seventies and eights. 0:20:52.560 --> 0:20:54.040 And as long as you're. 0:20:53.880 --> 0:20:57.520 Comfortable doing your finances on a mobile device and you 0:20:57.560 --> 0:21:00.200 want to be at the frontier of technology, I think 0:21:00.200 --> 0:21:02.680 it's something that transcends. 0:21:02.080 --> 0:21:02.760 Just young people. 0:21:02.840 --> 0:21:04.480 Of course, we always want to be relevant to the 0:21:04.520 --> 0:21:08.399 next generation, but Robinhood I feel like you should be 0:21:08.440 --> 0:21:11.760 at a disadvantage if you're using any other platform. 0:21:12.160 --> 0:21:14.560 That was Robin Hood, CEO of lad Tenev, speaking after 0:21:14.600 --> 0:21:17.560 the company's earnings call yesterday and now coming up. AI 0:21:17.880 --> 0:21:20.520 seems to be taking a toll on US jobs. We'll 0:21:20.560 --> 0:21:24.480 talk about the October labor cuts next. This is Bloomberg Tech. 0:21:30.920 --> 0:21:33.280 I'm now for Talking Tech and first time Apple is 0:21:33.280 --> 0:21:36.919 turning to Google for help overhauling his Story Voice assistant. Now, 0:21:36.960 --> 0:21:38.920 the iPhone maker is planning to pay about a billion 0:21:38.960 --> 0:21:41.960 dollars a year for an ultra powerful one point two 0:21:42.200 --> 0:21:45.520 trillion parameter AI model, according to sources, and the hope 0:21:45.520 --> 0:21:48.000 is to use the technology as an interim solution until 0:21:48.040 --> 0:21:51.520 Apple's own models are powerful enough. Plus, AI looks to 0:21:51.520 --> 0:21:54.280 be making its mark on the US labor market. Last 0:21:54.280 --> 0:21:56.760 month saw the most job cuts by US firms for 0:21:56.800 --> 0:21:58.440 October in two decades. 0:21:58.520 --> 0:21:59.440 It's all according to. 0:21:59.520 --> 0:22:01.200 Data from Challenge of Gray and Christmas and at the 0:22:01.240 --> 0:22:04.399 firm point to AI reshaping industries. We're also acknowledging the 0:22:04.400 --> 0:22:08.760 impact of cost cutting and right sizing post pandemic dead. 0:22:09.320 --> 0:22:10.080 Okay, coming up. 0:22:10.200 --> 0:22:14.360 Tesla shareholders have voted on the proposed one trillion dollar 0:22:14.480 --> 0:22:18.760 pay deal for Elon Musk and his future at the company. 0:22:19.720 --> 0:22:22.359 After the market today, we'll find out the results of 0:22:22.400 --> 0:22:23.040 that vote. 0:22:23.320 --> 0:22:25.000 Stay with us. 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Visit www dot app lights dot 0:25:20.920 --> 0:25:23.480 com or get yours today at Walmart. 0:25:26.720 --> 0:25:30.040 Let your feet take you wherever your spirit wants to go. 0:25:30.760 --> 0:25:34.639 The redesigned Hurricane helps you navigate any surface, so it 0:25:34.680 --> 0:25:37.919 truly stands alone. Scan the code now or go to 0:25:38.000 --> 0:25:46.400 Hurricane dot com. 0:25:46.600 --> 0:25:50.800 I do not believe any company anywhere near this size 0:25:51.680 --> 0:25:57.720 has ever delivered a compound annual rate of growth for 0:25:58.080 --> 0:26:01.720 ebit dot which is a bottom line number of forty 0:26:01.800 --> 0:26:05.159 one percent over ten years. No company has done that. 0:26:05.400 --> 0:26:09.199 So yes, indeed the incentives are aligned. If he and 0:26:09.280 --> 0:26:13.800 his team are able to deliver on that number, the 0:26:14.040 --> 0:26:16.679 stock is going to outperform enormously. 0:26:17.359 --> 0:26:21.680 Kathy, if by chance this proposal is rejected, would you 0:26:21.800 --> 0:26:23.639 consider shedding some of your Tesla position. 0:26:26.119 --> 0:26:30.480 So I'm happy that the prediction markets are at ninety 0:26:30.600 --> 0:26:33.560 to ninety five percent in terms of this is going through, 0:26:33.600 --> 0:26:35.880 so we don't have to think about that. 0:26:36.720 --> 0:26:37.080 Clearly. 0:26:37.119 --> 0:26:40.800 If Elon left, we think about it in two ways. 0:26:40.880 --> 0:26:46.240 One we think robotaxis he has them at the starting 0:26:46.320 --> 0:26:49.480 gate as of June and now they're rolling out and 0:26:50.080 --> 0:26:54.800 that AI project is well underway. If he had left 0:26:55.320 --> 0:26:58.520 five years ago, three years ago, it probably. 0:26:58.080 --> 0:26:59.800 Wouldn't be anywhere near where it is. 0:27:00.840 --> 0:27:04.879 What we now think though, is in order to capitalize 0:27:04.880 --> 0:27:09.400 on humanoid robots, which that's a much more difficult project. 0:27:10.640 --> 0:27:15.080 That yes, Elon's brilliant and the team he has attracted 0:27:16.400 --> 0:27:19.000 around him are going to be necessary to. 0:27:19.000 --> 0:27:19.760 Pull that off. 0:27:21.640 --> 0:27:24.800 That was our CEO and testa shareholder Kafe would her 0:27:24.880 --> 0:27:29.560 firm voting yes on Elon Musk's one trillion dollar compensation package? 0:27:29.840 --> 0:27:34.040 What about firms that voted no. Kalper's, the largest public 0:27:34.080 --> 0:27:37.280 pension fund in the US, voted against the pay passage, 0:27:37.480 --> 0:27:40.240 citing the fact that the deal was far larger than 0:27:40.359 --> 0:27:44.399 CEO pay packages at comparable companies. Drew Hambley is their 0:27:44.440 --> 0:27:48.880 investment director and joins US now. Woods argument there, Drew, 0:27:48.920 --> 0:27:52.200 which you heard, is that if they continue and achieve 0:27:52.240 --> 0:27:55.720 the ebit DAR goals that this proposed package is set 0:27:55.720 --> 0:27:58.840 from us by the board, then the outperformance of the 0:27:58.920 --> 0:28:01.600 stock will make it in the interest of shareholders. 0:28:01.920 --> 0:28:02.920 You don't agree with that. 0:28:03.160 --> 0:28:08.640 Why well, thanks, Ed. So you know, we can't predict 0:28:08.880 --> 0:28:12.560 what the market's going to do, and we're evaluating pay packages. 0:28:12.720 --> 0:28:15.800 We look at them vis a vis other comparable company. 0:28:15.920 --> 0:28:18.679 So let's say he does achieve all those goals, but 0:28:19.119 --> 0:28:22.440 say the market does as well too, Are we really 0:28:22.480 --> 0:28:26.159 paying for alpha or you know, is that a market beta. 0:28:26.760 --> 0:28:29.960 When we looked at the last eight years of returns, 0:28:29.960 --> 0:28:32.639 going back to when the original package was put into place, 0:28:33.440 --> 0:28:35.840 Tesla was one of our best performers. 0:28:35.880 --> 0:28:38.200 It wasn't our best, but it was in our top ten. 0:28:38.680 --> 0:28:42.600 And then when we compared you know, the annualized pay 0:28:42.600 --> 0:28:44.520 of the ninety six million they want to give him 0:28:44.520 --> 0:28:46.880 in the restricted sack award that vests in two years, 0:28:48.080 --> 0:28:49.719 and then we looked at medium pay of these other 0:28:49.800 --> 0:28:53.960 high performers in our portfolio, and that piece of the 0:28:53.960 --> 0:28:57.480 package alone is seventy three times the median of other 0:28:57.560 --> 0:29:00.960 high performing companies and CEOs and our portfolio, and we 0:29:01.080 --> 0:29:03.480 just let that multiple gap was too high. 0:29:04.160 --> 0:29:04.400 Drew. 0:29:04.640 --> 0:29:06.840 The board is going to argue, they have argued on 0:29:06.840 --> 0:29:10.640 this program that Tesla is not comparable to other companies. 0:29:10.680 --> 0:29:13.520 Elon Musk is the only person on the planet who 0:29:13.560 --> 0:29:16.760 has the skill set. Is what Robin Denholm told us. 0:29:16.960 --> 0:29:20.120 The real point of tension that you have with others 0:29:20.760 --> 0:29:24.680 is the concentration of voting power. You said at the 0:29:24.720 --> 0:29:27.640 time that you cast the vote or confirmed it, that 0:29:27.760 --> 0:29:30.000 it put too much concentration. 0:29:29.480 --> 0:29:30.880 Of power in a single shareholder. 0:29:31.320 --> 0:29:35.280 That's exactly the rationale that Elon Musk is proposing investors 0:29:35.400 --> 0:29:37.400 vote in favor of the package. He wants the voting 0:29:37.480 --> 0:29:41.800 power in order to achieve the goals that the board 0:29:41.800 --> 0:29:44.680 have set him. How do you reconcile that going forward? 0:29:46.120 --> 0:29:48.120 Well, we look back and at one point he owned 0:29:48.160 --> 0:29:50.400 twenty five percent of the company and then sort off 0:29:50.440 --> 0:29:53.080 half of it, and they've achieved gause with him being 0:29:53.120 --> 0:29:56.440 a twelve or thirteen percent shareholder. So I don't see 0:29:56.480 --> 0:30:01.240 deluding shareholders by another twelve or thirteen percent and changes 0:30:01.280 --> 0:30:04.920 the dynamic. He also is a person with a huge 0:30:04.960 --> 0:30:07.120 stake in this company. I don't see why he would 0:30:07.640 --> 0:30:09.680 you want to do anything that would damage it. So 0:30:09.720 --> 0:30:13.240 I don't see why he needs any extra control over 0:30:13.280 --> 0:30:15.440 what he already has. I mean, he and the board 0:30:15.520 --> 0:30:20.480 together on about sixteen percent of the company, and you know, 0:30:20.520 --> 0:30:24.680 we don't think diluting ourselves by another potentially trillion dollars, 0:30:25.240 --> 0:30:26.600 you know, changes that dynamic. 0:30:27.360 --> 0:30:31.240 I suppose Elon's argument has been there at this inflection point, 0:30:31.640 --> 0:30:33.640 and it's moving not just from cars and they still 0:30:33.680 --> 0:30:35.600 want to have what twenty million cars on the roads, 0:30:35.720 --> 0:30:37.840 but it's going into the era of AI and into 0:30:37.920 --> 0:30:38.840 humanoid robots. 0:30:38.880 --> 0:30:41.120 The army of robots is going to be producing. 0:30:41.720 --> 0:30:44.440 Would you want him to have the most say over 0:30:44.560 --> 0:30:46.080 an army of humanoid robots? 0:30:47.800 --> 0:30:50.120 Well, I think he already has tremendous say as the 0:30:50.200 --> 0:30:54.640 largest shareholder of the company. You know, as a you know, 0:30:54.840 --> 0:30:58.880 governance person, do we want so much risk in one person? 0:30:59.400 --> 0:31:01.800 You know, maybe he is the visionary that the board 0:31:01.840 --> 0:31:04.280 thinks he is, but we don't know what could. 0:31:04.120 --> 0:31:05.360 Happen to anybody. 0:31:05.720 --> 0:31:08.400 And to have this much risk placed in one person 0:31:08.520 --> 0:31:11.600 and to dilute ourselves just to one person. There's tens 0:31:11.600 --> 0:31:14.400 of thousands of people work in a tesla creating value 0:31:15.400 --> 0:31:19.440 and if it is you know, so key on just 0:31:19.520 --> 0:31:22.480 one person, key person risk, you know, that's a worry 0:31:22.520 --> 0:31:23.959 for me as a shareholder. 0:31:24.880 --> 0:31:28.880 You are all about stewardship and of the pension fundholders 0:31:29.200 --> 0:31:31.440 that you report to ultimately, but you've done this job 0:31:31.480 --> 0:31:33.320 for a long time. Ever, I'm augustanding in other players. 0:31:34.320 --> 0:31:38.920 If Elon Musk was to walk, would that be in your. 0:31:38.800 --> 0:31:39.840 Role of stewardship? 0:31:39.920 --> 0:31:41.920 How do you manage to balance that out of what 0:31:42.000 --> 0:31:43.880 the risk is if indeed he did leave. 0:31:45.520 --> 0:31:48.000 Yeah, So we do think of ourselves as long term 0:31:48.040 --> 0:31:52.760 shareholders and a lot of our portfolio is indexed, and 0:31:52.840 --> 0:31:55.280 so we plan to hold this company for a long time. 0:31:55.520 --> 0:31:58.520 So we try not to worry too much about if 0:31:58.720 --> 0:32:00.520 you know, one person leaves today tomorrow. 0:32:00.560 --> 0:32:01.760 We're in it for the long haul. 0:32:01.880 --> 0:32:04.720 So if you left tomorrow, would there be a short 0:32:04.800 --> 0:32:08.239 term hit to the business. Possibly, But if we're going 0:32:08.280 --> 0:32:10.080 to hold this company for a long time and the 0:32:10.080 --> 0:32:13.400 board you know, has to replace him and get somebody in, 0:32:13.920 --> 0:32:16.440 you know, terrific, maybe not as good as Elion, but 0:32:16.480 --> 0:32:18.960 pretty terrific. We still think we're going to benefit over 0:32:19.000 --> 0:32:20.960 the long term by holding the stack. 0:32:22.080 --> 0:32:25.160 Drew, We got many many questions from our audience for you. 0:32:25.440 --> 0:32:27.800 One of them is what Caroline just asks, what happens 0:32:27.840 --> 0:32:30.520 if Elon leaves tomorrow? I think the other one is 0:32:30.560 --> 0:32:35.080 people would really appreciate an explanation of the criteria by 0:32:35.080 --> 0:32:37.160 which you cast your vote. So you explained on the 0:32:37.200 --> 0:32:42.360 comparisons historic patterns. But one way that it was put 0:32:42.400 --> 0:32:44.800 to me is in the context of CalPERS, is do 0:32:44.920 --> 0:32:48.440 you understand the company. Did you look at the mandatory 0:32:48.480 --> 0:32:51.720 goals set by the board and say, okay, this could 0:32:51.760 --> 0:32:56.320 be to the benefit of our stakeholders in our pension plan. 0:32:57.800 --> 0:33:01.360 Yeah, and we evaluate every pay plan case by case, 0:33:01.400 --> 0:33:03.560 and so we did look at those things. And what 0:33:03.600 --> 0:33:06.760 we're trying to do when we're paying a CEO is 0:33:07.160 --> 0:33:10.440 what part of that return is beta and then where 0:33:10.520 --> 0:33:13.360 is the actual skill? And so it's hard for us 0:33:13.400 --> 0:33:16.000 to predict what the bet is going to be ten 0:33:16.080 --> 0:33:18.840 years from now at the end of this award period. 0:33:19.480 --> 0:33:22.440 And you know, he might do very well. He might 0:33:22.480 --> 0:33:25.440 increase it by six times. The market could go up 0:33:25.440 --> 0:33:27.720 by six times, and that would be you know, how 0:33:27.760 --> 0:33:30.400 would he be any better than anybody else? And so 0:33:30.440 --> 0:33:33.160 to give up that much control and dilute ourselves that 0:33:33.240 --> 0:33:37.160 much for one person, we think is a risk as well. 0:33:37.760 --> 0:33:40.160 There's a risk that he might never achieve these goals. 0:33:40.200 --> 0:33:43.200 And you've seen that with other similar pay packages echoed. 0:33:43.280 --> 0:33:45.280 We've seen it an Airbnb. We've seen the other players 0:33:45.320 --> 0:33:47.720 where they haven't managed to top the goals. Do you 0:33:47.760 --> 0:33:50.320 think a million robotaxes is achievable in the time frame? 0:33:50.360 --> 0:33:52.360 Do you think the FSD is Do you think the 0:33:52.400 --> 0:33:53.000 cars are. 0:33:54.520 --> 0:33:57.320 Well, it's possible that all those things are and I 0:33:57.360 --> 0:34:01.680 think this time to the competition is greater than when 0:34:01.720 --> 0:34:03.920 Tesla came to market with their first car. In terms 0:34:03.960 --> 0:34:07.040 of EVS. You have Google working on robotax as, you 0:34:07.040 --> 0:34:09.120 have the Chinese working on them. So it's going to 0:34:09.120 --> 0:34:11.799 be a more competitive marketplace. Certainly they are in a 0:34:11.840 --> 0:34:14.359 position to be one of the key players in this, 0:34:14.800 --> 0:34:16.920 but you know, ten years from now we might be 0:34:16.960 --> 0:34:20.080 talking about, you know, three other companies that dominate robotaxes. 0:34:20.120 --> 0:34:21.680 That's hard for us to know today. 0:34:22.239 --> 0:34:24.440 True Hammley, it's been great speaking with you. Thank you 0:34:24.480 --> 0:34:24.959 for your time. 0:34:25.080 --> 0:34:28.440 Investment director for Global Public Equity Ever at Kalpers. 0:34:29.080 --> 0:34:31.280 Now, let's take a quick look at the broader markets. 0:34:31.360 --> 0:34:33.160 Right now, Tesla is actually a key drag on the 0:34:33.200 --> 0:34:35.000 NAST that one hundred off by one point eight percent. 0:34:35.040 --> 0:34:36.839 There's also the macro data, the job s data that's 0:34:36.880 --> 0:34:38.319 got people a little bit worried for the month of 0:34:38.360 --> 0:34:41.080 October coming from Challenger Green and Christmas. Let's move over 0:34:41.080 --> 0:34:43.359 though to some individual movers, because earnings have come thick 0:34:43.400 --> 0:34:45.759 and fast, and boy have they moved the stock door 0:34:45.800 --> 0:34:48.759 dash actually having a record drop at the moment. This 0:34:48.840 --> 0:34:52.280 is after their numbers came through. That really in echoing 0:34:52.320 --> 0:34:55.640 to uber, they are reinvesting in the business, reinvesting in Deliveru, 0:34:55.719 --> 0:34:58.040 but that's going to crimp margins and therefore maybe not 0:34:58.360 --> 0:35:00.719 the growth story that many head antici painted from a 0:35:00.880 --> 0:35:03.000 margin and profitability perspective. 0:35:03.000 --> 0:35:04.000 It's off by fifteen percent. 0:35:04.040 --> 0:35:05.640 Snap though it gets a little. 0:35:05.400 --> 0:35:06.200 Bit of AI love. 0:35:06.320 --> 0:35:09.120 Why because well, they've got to deal with perplexity surging 0:35:09.120 --> 0:35:12.120 on that four hundred million dollars perplexity aideal and we 0:35:12.160 --> 0:35:14.359 see it up almost ten percent. Data Dog as well 0:35:14.400 --> 0:35:18.160 having a pretty phenomenal day up twenty one percent ed. 0:35:18.400 --> 0:35:20.560 This is as a software company look managed to keep 0:35:20.560 --> 0:35:22.600 on selling even though we do see it a whole 0:35:22.640 --> 0:35:25.200 new era of AI cohorts coming for that eat their lunch. 0:35:25.480 --> 0:35:27.239 Thus far, they're not eating it. 0:35:29.800 --> 0:35:31.680 This is Bloomberg Tech and you're looking at a live 0:35:31.719 --> 0:35:35.000 shot of the principal room. Check out the Bloomberg Tech podcast. 0:35:35.160 --> 0:35:36.719 You can find it on the terminal as well as 0:35:36.760 --> 0:35:40.800 online on Apple, Spotify, and iHeart this is Bloomberg. 0:35:48.360 --> 0:35:50.000 Back to earnings now, Chime. 0:35:50.160 --> 0:35:52.800 It's just posted strong member growth, stable revenue per member, 0:35:52.840 --> 0:35:56.600 and discipline cost execution earnings. They beat expectations, it raised 0:35:56.600 --> 0:35:59.680 guidance and allow's to share buyback plan. And yet the 0:35:59.719 --> 0:36:03.239 stop fools, chime. CEO Chris Britt joins us now. And 0:36:03.320 --> 0:36:05.799 you clearly think your shares are undervalue. That's why you're 0:36:05.800 --> 0:36:09.080 thinking about to a two hundred million dollar share buyback. Chris, 0:36:09.719 --> 0:36:12.160 how do you digest this sort of market move now 0:36:12.160 --> 0:36:13.160 you're a public company. 0:36:14.960 --> 0:36:16.880 Well, thanks for having me on, guys. It's great to 0:36:16.920 --> 0:36:18.440 be with you again. I remember being with you on 0:36:18.920 --> 0:36:19.759 our IPO day. 0:36:20.960 --> 0:36:21.160 Yeah. 0:36:21.200 --> 0:36:22.919 Look, we're a recently issued stock. 0:36:22.960 --> 0:36:26.359 We've had two quarters now where we've the team's done 0:36:26.360 --> 0:36:30.800 an amazing job executing. We just announced twenty nine percent 0:36:30.880 --> 0:36:35.200 revenue growth year over year, twenty one percent growth in 0:36:35.200 --> 0:36:39.200 our member base. We added four hundred thousand new active members, 0:36:39.239 --> 0:36:44.239 so and we're approving our profitability program profile at the 0:36:44.280 --> 0:36:47.400 same time. So we feel like we're executing really, really well. 0:36:47.800 --> 0:36:50.080 And I think it's incumbent upon us, as a newly 0:36:50.160 --> 0:36:54.280 minted public company to just continue to educate our investor 0:36:54.320 --> 0:36:57.040 base on the enormous opportunity ahead of us. You know, 0:36:57.080 --> 0:36:59.160 there's about two hundred million Americans that make up tow 0:36:59.200 --> 0:37:01.600 one hundred thousand dollars a year that are not well 0:37:01.640 --> 0:37:06.120 served by the incumbents, and so as a newly minted 0:37:06.280 --> 0:37:09.080 public company, there's always a little bit of volatility in 0:37:09.080 --> 0:37:09.440 the stock. 0:37:09.520 --> 0:37:10.959 But I think it's incumbent on us right. 0:37:10.880 --> 0:37:13.239 Now just to continue to execute, and if we do that, 0:37:13.760 --> 0:37:15.560 I think the share price will take care of itself. 0:37:16.120 --> 0:37:18.799 It is a macro picture that perhaps you fight here. 0:37:19.000 --> 0:37:22.000 We're suddenly worrying about fourth quarter. We're worried about a consumer, 0:37:22.080 --> 0:37:25.200 particularly perhaps a less affluent consumer. That is really the 0:37:25.280 --> 0:37:27.400 area you're trying to serve right now. What are you 0:37:27.480 --> 0:37:29.160 seeing in your customer base. 0:37:30.480 --> 0:37:34.480 Well, we actually are serving the seventy percent of America 0:37:34.520 --> 0:37:36.680 that makes up to one hundred thousand dollars a year, 0:37:36.719 --> 0:37:39.320 So this is a very large segment of the population. 0:37:39.880 --> 0:37:42.719 And if you look at our member base, the fastest 0:37:42.760 --> 0:37:45.319 growth that we're seeing is in the seventy five to 0:37:45.320 --> 0:37:47.479 one hundred k earning segment, and I think that's because 0:37:47.480 --> 0:37:49.799 of some of these new products we just launched, like 0:37:49.840 --> 0:37:52.400 our chime car our new Chime card, which is a 0:37:53.000 --> 0:37:55.399 rewards card that gives one point five percent cash back 0:37:55.400 --> 0:37:59.680 on everyday spend and three point five percent on your 0:37:59.680 --> 0:38:00.600 saving to account. 0:38:01.280 --> 0:38:02.560 But I think it is true that. 0:38:02.480 --> 0:38:06.239 There's a bit of a malaise over a lot of 0:38:06.320 --> 0:38:09.880 consumer stocks that they maybe investors, feel like are going 0:38:09.960 --> 0:38:12.840 to have a lot of pressure given the tightening of 0:38:12.920 --> 0:38:17.160 the economy. As it relates to what we're seeing, we 0:38:17.200 --> 0:38:19.600 see a very healthy consumer. We don't see an uptick 0:38:19.600 --> 0:38:23.160 in unemployment or unemployment benefits coming to our accounts. We 0:38:23.200 --> 0:38:26.440 actually are seeing an increase in discretionary spend across our 0:38:26.440 --> 0:38:30.520 member base, and people are going out there. We're seeing 0:38:30.520 --> 0:38:38.680 double digit increases in places like Costco, Amazon. We're seeing 0:38:38.680 --> 0:38:41.360 people go to restaurants more. We're seeing people use door dash, 0:38:41.480 --> 0:38:45.799 Uber eats, paying for convenience. So we're not seeing the 0:38:45.840 --> 0:38:49.920 pressure that I think some companies maybe experiencing out there. 0:38:50.360 --> 0:38:52.640 We see a fairly healthy consumer. 0:38:52.680 --> 0:38:56.560 Actually, Chris, can you talk about how you're getting new 0:38:56.600 --> 0:38:59.320 customers to use more than one product? 0:38:59.360 --> 0:39:00.359 I think was sting. 0:39:00.480 --> 0:39:03.600 Is you letting you clients who might not have a 0:39:03.640 --> 0:39:07.799 sort of direct deposit set up with you experiment with 0:39:08.000 --> 0:39:11.040 my pay for example, are you seeing evidence that they 0:39:11.080 --> 0:39:12.720 then go on to use other things? 0:39:14.239 --> 0:39:17.000 Absolutely, we continue to see if you look at our cohorts, 0:39:17.000 --> 0:39:19.680 and we have this in the supplemental portion of our 0:39:19.880 --> 0:39:22.880 of our earnings, you can see that as our cohorts age, 0:39:22.920 --> 0:39:26.720 they continue to not only adopt products at a faster 0:39:26.840 --> 0:39:29.880 clip early in the relationship, but they also continue to 0:39:29.960 --> 0:39:33.719 throughout the life cycle and over the course of you know, 0:39:33.760 --> 0:39:38.320 these are primary recurring direct deposit relationships that we've really 0:39:38.320 --> 0:39:40.680 honed in and in our business model of being able 0:39:40.719 --> 0:39:43.600 to cultivate and that leads to many, many years of 0:39:43.760 --> 0:39:48.480 recurring revenue and more engagement over time, and as a 0:39:48.520 --> 0:39:52.160 result of that you see expanding average revenue proactive member. 0:39:52.160 --> 0:39:52.919 But yes, it's true. 0:39:52.960 --> 0:39:55.279 We're you know, we're doing everything we can also to 0:39:55.360 --> 0:39:58.200 make our accounts easier to use right out of the gate, 0:39:58.880 --> 0:40:01.080 and we've seen a lot of success with getting people 0:40:01.080 --> 0:40:05.560 to fund accounts and then eventually convert to direct deposit. 0:40:05.680 --> 0:40:09.640 Later, Chris quickly to finish what's the next new product 0:40:09.719 --> 0:40:11.360 front tier for chime. 0:40:12.719 --> 0:40:15.640 Well, we announced on the call a great development for us, 0:40:15.920 --> 0:40:20.040 which is that we converted all of our processing onto 0:40:20.160 --> 0:40:23.200 our own internally built tech stack called Chime Core. 0:40:23.360 --> 0:40:24.879 This is a huge unlock not. 0:40:24.880 --> 0:40:28.279 Just a significant cost savings advantage for US, but also 0:40:28.400 --> 0:40:31.440 it will unleash a new era of innovation for US. 0:40:31.480 --> 0:40:33.960 We announced a number of new features that we're looking 0:40:33.960 --> 0:40:37.040 to launch over the course of the next year. We 0:40:37.160 --> 0:40:41.200 just launched our Chime card that I explained earlier. We're 0:40:41.200 --> 0:40:46.680 going to launch joint accounts, custodial accounts, investment services, and importantly, 0:40:46.719 --> 0:40:49.560 we're going to continue to add more tiers so that 0:40:49.640 --> 0:40:53.000 our more premium members, those that engage with us, the 0:40:53.400 --> 0:40:57.160 engage with us the most and higher earning consumers get 0:40:57.160 --> 0:40:59.440 even more when they bank and do their every day 0:40:59.440 --> 0:41:02.560 payments with Chime, so you should expect to hear more 0:41:02.600 --> 0:41:03.680 on that front as well. 0:41:04.680 --> 0:41:06.759 Chime CEO Chris Britt. Great to have you back on 0:41:06.760 --> 0:41:09.040 the program. Thank you very much. Now coming up, we're 0:41:09.040 --> 0:41:11.920 going to speak with Lift cfo Eron Brewer for the 0:41:11.920 --> 0:41:14.560 company's latest earnings results. Don't want to miss it. This 0:41:14.640 --> 0:41:31.240 is Bloomberg Tech shares them Lift up about seven percent, 0:41:31.320 --> 0:41:33.680 on track for their biggest jump since mid September. The 0:41:33.760 --> 0:41:38.520 company projected an acceleration in bookings this quarter. Easy Investor 0:41:38.520 --> 0:41:42.600 concerns about the company's global expansion efforts. Here with more 0:41:42.840 --> 0:41:45.680 is erin Brewer Lifts CFO. I think what'll be really 0:41:45.719 --> 0:41:49.360 interesting is, Okay, this current period, the outlook is strong, 0:41:49.680 --> 0:41:53.480 but what are the underlying behaviors that you're seeing driving 0:41:53.520 --> 0:41:56.200 that from riders in the different products that they're using. 0:41:56.400 --> 0:41:58.000 Absolutely, you know a couple of things. 0:41:58.040 --> 0:42:00.560 One of the nice things is this acceleration and the 0:42:00.600 --> 0:42:04.440 foundation of our performance is multifaceted. Really, So we've got 0:42:04.760 --> 0:42:07.600 we reported in the third quarter in eighteen percent growth 0:42:07.600 --> 0:42:11.240 and active riders, and yes, that does incorporate our recent acquisition, 0:42:11.320 --> 0:42:14.600 but even in North America, we're seeing the strongest active 0:42:14.680 --> 0:42:18.040 rider growth, hitting all time highs. That's led to gross 0:42:18.040 --> 0:42:21.279 bookings at all time highs, adjustin libita up twenty nine 0:42:21.280 --> 0:42:23.719 percent for the quarter, and then a billion dollars in 0:42:23.800 --> 0:42:28.200 trailing twelve month free cash flow. We've got our partnerships 0:42:28.239 --> 0:42:31.360 with the highest penetration rate ever. That's even before we 0:42:31.400 --> 0:42:34.279 announce the United Airlines deal. We've got, of course, the 0:42:34.320 --> 0:42:38.120 acquisitions flowing in, and we've got loyalty programs that are 0:42:38.520 --> 0:42:41.200 differentiated in the industry, and all of this is driving 0:42:41.520 --> 0:42:43.959 again highest retention rates ever, so your. 0:42:43.920 --> 0:42:46.320 Job's difficult, it's great to have you on the program, 0:42:46.520 --> 0:42:48.279 you know. And when we have a CFO, you have 0:42:48.320 --> 0:42:51.840 this balance, right investing for growth and then discipline. So 0:42:51.920 --> 0:42:55.160 in Europe that's been the strategy. Invest M and A 0:42:55.840 --> 0:42:58.600 in the United States are chasing uber you know, and. 0:42:58.560 --> 0:42:59.480 You need to be disciplined. 0:42:59.480 --> 0:43:01.520 Then you've very keen to talk about the bottom line 0:43:01.560 --> 0:43:04.839 performance you personally, how are you managing that right now? 0:43:05.000 --> 0:43:05.800 What's the priority? 0:43:06.160 --> 0:43:06.759 Absolutely? 0:43:06.800 --> 0:43:08.759 You know a couple things that I would say we 0:43:08.920 --> 0:43:12.120 our market is so large, right, that's what we focus on. 0:43:12.520 --> 0:43:16.040 The penetration and the opportunity to exist broadly in the market. 0:43:16.360 --> 0:43:19.480 Three hundred billion personal vehicle trips that exist across the 0:43:19.520 --> 0:43:22.600 markets we serve. We're not even close to getting, you know, 0:43:22.719 --> 0:43:25.239 as an industry even let alone lift where we can 0:43:25.280 --> 0:43:29.440 potentially be. As it relates to investment, you know, it's 0:43:29.480 --> 0:43:31.920 pretty easy when you're in a growth industry because you've 0:43:31.920 --> 0:43:34.520 got lots of opportunities. So you're right, as a CFO, 0:43:34.640 --> 0:43:36.279 you're thinking about how do you do that in a 0:43:36.320 --> 0:43:39.440 discipline manner. The great thing is is we're sitting here 0:43:39.440 --> 0:43:41.680 today in a position with the strength of our free 0:43:41.719 --> 0:43:43.759 cash flow to be able to do that, to take 0:43:43.800 --> 0:43:46.840 advantage of opportunities where we can drive shareholder value. 0:43:47.160 --> 0:43:48.720 We've also been buying back shares. 0:43:48.800 --> 0:43:51.799 We'll complete a five million dollars share we purchase in 0:43:51.840 --> 0:43:55.000 twenty twenty five, so a nice balance and we see 0:43:55.000 --> 0:43:56.480 that continuing going forward. 0:43:56.719 --> 0:43:59.719 The opportunity many see Aeron at this moment is AV 0:44:00.160 --> 0:44:02.640 and you've taken interesting partnership routes. So we're also doing 0:44:02.719 --> 0:44:04.640 things with Buydo and there's a real commitment here to 0:44:05.120 --> 0:44:07.719 almost own part of the feet of robotaxis. How does 0:44:07.719 --> 0:44:09.759 that change sort of an asset like model that you've 0:44:09.760 --> 0:44:10.319 had thus far. 0:44:11.520 --> 0:44:13.279 Yeah, you know, one of the things I think that's 0:44:13.320 --> 0:44:18.440 really interesting to highlight is that Lift today owns cars 0:44:18.480 --> 0:44:21.680 across multiple cities in the US through our subsidiary Flex Drive. 0:44:21.800 --> 0:44:25.759 Drivers can come and rent, So we really understand this model. 0:44:25.440 --> 0:44:26.440 Of owning assets. 0:44:26.440 --> 0:44:29.280 We have assets on our balance sheet today, and of course, 0:44:29.320 --> 0:44:32.280 as the AV market develops, and we've been very purposeful 0:44:32.320 --> 0:44:35.439 about the partnerships that we are entering, you know, we're 0:44:35.480 --> 0:44:39.160 absolutely going to do that in certain cities as we scale, 0:44:39.239 --> 0:44:42.120 as we learn by do, as you mentioned, is a 0:44:42.120 --> 0:44:44.640 portion of that we'll be doing a little bit of 0:44:44.640 --> 0:44:48.520 that in some of our other partnerships. So it's something 0:44:48.560 --> 0:44:51.400 again we know how to do. We still see ourselves 0:44:51.480 --> 0:44:53.600 long term as an asset like company, but as the 0:44:53.640 --> 0:44:56.440 industry develops, we're going to make some of those investments. 0:44:56.840 --> 0:44:58.960 What's interesting is, I think it's by twenty twenty seven 0:44:59.200 --> 0:45:01.200 you want some of these a these on the road. 0:45:01.239 --> 0:45:03.520 I mean, it's got a commandment for one hundred thousand 0:45:03.560 --> 0:45:05.160 car goal by twenty twenty seven. 0:45:05.400 --> 0:45:09.200 How realistic all these arein uh, you know, that's you know, 0:45:09.280 --> 0:45:12.200 I'm not going to comment on necessarily their goals, but 0:45:12.320 --> 0:45:14.799 we absolutely see if you might, you know, look five 0:45:14.960 --> 0:45:18.000 seven years down the road, you know, perhaps ten percent 0:45:18.040 --> 0:45:21.160 of the volume we serve could be served through avs, 0:45:21.560 --> 0:45:24.360 both the combination of partnerships that we're in and maybe 0:45:24.400 --> 0:45:27.680 assets that we own. So it's a huge opportunity. I 0:45:27.680 --> 0:45:30.279 think the other important thing in that stat though, is 0:45:30.320 --> 0:45:33.440 you're still going to see huge volumes served by drivers. 0:45:33.680 --> 0:45:36.919 That's why we're really focused on the hybrid network. That's 0:45:36.960 --> 0:45:39.960 what's going to make the difference and be economically viable 0:45:40.160 --> 0:45:41.000 erin very quickly. 0:45:41.040 --> 0:45:44.120 What's the timeline to integrate the chauffeuring business into the 0:45:44.160 --> 0:45:44.959 core Lift app. 0:45:45.120 --> 0:45:46.120 Yeah, if at all. 0:45:46.200 --> 0:45:49.560 Well, look that it augments what we've been growing in 0:45:49.640 --> 0:45:51.840 terms of our own business. We have high value modes, 0:45:51.880 --> 0:45:54.520 premium modes on our platform today. They're up fifty percent 0:45:54.760 --> 0:45:57.040 year over year in Q three, So this is a 0:45:57.080 --> 0:46:00.920 great extension to you know, continue to build out that 0:46:01.080 --> 0:46:04.000 offering as it relates to the way that TBR Global 0:46:04.040 --> 0:46:07.920 Schiffeering will operate. They've got incredible clients all around the world. 0:46:07.920 --> 0:46:11.279 It's an fantastic business. It's not going to be on 0:46:11.400 --> 0:46:14.280 the app and the near term, but the syn synergies 0:46:14.320 --> 0:46:17.480 that we see with the fifteen hundred independent fleet operators 0:46:17.520 --> 0:46:20.440 that they engage with across the globe, We're going to 0:46:20.520 --> 0:46:23.440 drive some synergies there, and the service capability they bring 0:46:23.480 --> 0:46:25.200 to our company is incredible. 0:46:25.600 --> 0:46:27.479 Aerin Brouh, I joyed to have you on the show. 0:46:27.520 --> 0:46:29.840 Thank you, c Thank you, Thanks Carolyn, thank you, Ed. 0:46:30.000 --> 0:46:31.879 Stay well. Meanwhile, that does have. 0:46:31.880 --> 0:46:35.120 This edition of Bloomberg Tech Earning Stick and Fast, Earning 0:46:35.160 --> 0:46:35.800 Sick and Fast. 0:46:36.000 --> 0:46:36.959 There's a lot more to come. 0:46:37.200 --> 0:46:39.399 Musk pay vote after the belt, check out the pod, 0:46:39.600 --> 0:46:40.439 Shout out the pod. 0:46:40.600 --> 0:46:42.200 Lots of you listen to the pod. You know where 0:46:42.239 --> 0:46:42.640 to find it. 0:46:42.640 --> 0:46:45.080 It's on all the Bloomberg places and on the Internet 0:46:45.160 --> 0:46:47.160 that we're listing on your screen right now, have a 0:46:47.160 --> 0:46:47.880 great afternoon. 0:46:47.920 --> 0:46:48.919 This is Bloomberg Tech.