WEBVTT - Big Tech Earnings, Reid Hoffman and the Election 0:00:01.440 --> 0:00:05.720 From Mahart where Innovation, Money and power collie in Silicon 0:00:05.840 --> 0:00:10.280 Valley NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.520 --> 0:00:11.559 Ed Ludlove. 0:00:25.400 --> 0:00:26.799 Live from New York and San Francisco. 0:00:26.920 --> 0:00:30.440 This is Bloomberg Technology coming up Microsoft and Meta results 0:00:30.560 --> 0:00:33.120 drag the market lower. We'll take a deep dive into 0:00:33.120 --> 0:00:36.440 how the AI story is playing out for them. 0:00:36.159 --> 0:00:39.239 And door dash posts its first operating profit since the 0:00:39.240 --> 0:00:42.440 pandemic as it grows outside restaurant deliveries. 0:00:42.479 --> 0:00:44.640 We speak to the CFO. 0:00:44.680 --> 0:00:47.360 And we will sit down with Graylock partner and LinkedIn 0:00:47.479 --> 0:00:50.920 co founder Reed Hoffman to discuss the impact of the 0:00:50.960 --> 0:00:54.360 election on Silicon Valley. But first we check in on 0:00:54.400 --> 0:00:57.360 these markets that are to the downside the NASDAC as 0:00:57.360 --> 0:00:59.320 I shine a light off by more than two percent 0:00:59.680 --> 0:01:03.120 of this is as the earnings come thick, come fast, 0:01:03.120 --> 0:01:04.840 and Ed's going to be describing some of the key 0:01:04.880 --> 0:01:07.920 point contributors to the downside. But I highlight Uber, one 0:01:07.920 --> 0:01:10.399 of the latest ones out this morning, down the most 0:01:10.400 --> 0:01:11.399 in two years. 0:01:11.720 --> 0:01:14.880 Why gross bookings just not as high as market had 0:01:14.920 --> 0:01:15.679 wanted to see. 0:01:15.720 --> 0:01:19.520 We're seeing forty one billion dollars for their quarter just reported, 0:01:19.800 --> 0:01:21.400 but the market wanted to see higher and they wanted 0:01:21.440 --> 0:01:23.800 a better forecast as well. Is it being crimped back 0:01:23.840 --> 0:01:26.199 by perhaps a slightly slower growth in the United States. 0:01:26.200 --> 0:01:27.759 We're seeing California and. 0:01:27.760 --> 0:01:30.440 New Jersey perhaps pushed back a little bit by the 0:01:30.480 --> 0:01:33.440 cost of insurance, for example. But also there's an FX 0:01:33.440 --> 0:01:36.840 headwind that's happening even though we saw record operating profit 0:01:37.000 --> 0:01:38.480 eds so uber to the downside. 0:01:38.480 --> 0:01:39.800 What else are you watching on the micro. 0:01:39.720 --> 0:01:42.800 Basis, Yeah, emphasis on forecast when it comes to the 0:01:42.840 --> 0:01:46.280 megacaps and members of the mag seven that reported Meta 0:01:46.480 --> 0:01:49.480 narrowly beaten the quarter gone on the advertising business, but 0:01:49.520 --> 0:01:52.680 it's warning of greater losses in reality labs as it 0:01:52.760 --> 0:01:56.320 continues to invest in AI and capital expenditures growth into 0:01:56.360 --> 0:01:59.440 twenty twenty five. Microsoft is similar story. In fact, the 0:01:59.440 --> 0:02:01.400 stocks down by the most or on track to be 0:02:01.560 --> 0:02:04.720 dropped by the most since October of twenty twenty two, 0:02:04.880 --> 0:02:07.520 as your growth in the next three month period will 0:02:07.520 --> 0:02:10.200 be thirty one to thirty two percent, but that's a 0:02:10.280 --> 0:02:13.239 declined sequentially from the thirty four percent in the court 0:02:13.240 --> 0:02:17.280 of just Gone. Unbelievably, they're saying that their supply constrained 0:02:17.440 --> 0:02:20.760 or capacity constrained on the data center side. 0:02:20.800 --> 0:02:21.880 In other words, they. 0:02:21.720 --> 0:02:25.400 Don't have the compute capacity needed to meet the demand 0:02:25.400 --> 0:02:27.360 that's out there for AI, which is like a really 0:02:27.680 --> 0:02:31.560 fascinating predicatiment to be in there. But also record spending 0:02:31.639 --> 0:02:34.200 right in the course just gone. The themes are quite consistent. 0:02:34.240 --> 0:02:37.520 Carroc, the themes are and so is the movement across 0:02:37.680 --> 0:02:40.839 most of the market. Let's bring in bloomberg'sjes menton who 0:02:40.840 --> 0:02:43.280 helps really focus in on a drag lower for the 0:02:43.360 --> 0:02:46.880 NASDAC and all eyes really have been on AI capacity 0:02:47.000 --> 0:02:47.880 and AI spending. 0:02:47.919 --> 0:02:50.520 That's right, and especially with Microsoft because they've ramped up 0:02:50.560 --> 0:02:52.280 so much spinning, and especially I know you cover the 0:02:52.360 --> 0:02:54.680 data center's focused as well, because that's not. 0:02:54.680 --> 0:02:56.880 Something typically a company. 0:02:56.520 --> 0:02:58.960 Like Microsoft would have done, say before twenty twenty, but 0:02:59.080 --> 0:03:01.880 especially especially if you think about the utility stocks have 0:03:01.919 --> 0:03:03.959 been taken off those types of tie to the data 0:03:03.960 --> 0:03:05.920 center biness. But that's really where it is when you're 0:03:05.919 --> 0:03:08.760 thinking about the CAPEC spending, not just for Microsoft, when 0:03:08.800 --> 0:03:11.160 it comes to these other companies too, because even say 0:03:11.200 --> 0:03:13.239 if you're looking over at Meta Mark Zuckerberg made it 0:03:13.240 --> 0:03:14.920 clear they're still going to keep up that spending for 0:03:14.960 --> 0:03:17.239 AI even though you're starting to see that is quite 0:03:17.280 --> 0:03:19.079 of a boost there too when it comes to sales 0:03:19.160 --> 0:03:21.840 tied to those types of AI losses there, but also 0:03:21.919 --> 0:03:23.560 when you're thinking about we still have in a video 0:03:23.639 --> 0:03:25.359 coming up for it's still a few weeks away, so 0:03:25.400 --> 0:03:28.040 it's November twentieth, but when you think about its core 0:03:28.200 --> 0:03:30.920 key clients here when it comes to AI spending and 0:03:30.919 --> 0:03:32.560 what it means, I mean, they're all reporting this week, 0:03:32.600 --> 0:03:35.040 so we already heard from Alphabet, obviously, we had Microsoft 0:03:35.120 --> 0:03:37.280 and of course Meta, and then we'll have Amazon after 0:03:37.320 --> 0:03:39.480 the bell. But with them raping up spending, that obviously 0:03:39.600 --> 0:03:41.760 is going to boilde well for Nvidia, and when you 0:03:41.760 --> 0:03:43.920 think about nearly half of its revenue growth when it 0:03:43.920 --> 0:03:44.960 comes to those types of addison. 0:03:45.160 --> 0:03:46.160 Yes, let me jump in here. 0:03:46.200 --> 0:03:46.400 Though. 0:03:46.560 --> 0:03:49.160 Really interesting, we're showing in videos down four percent or 0:03:49.200 --> 0:03:52.240 more than right in video right And what's so interesting 0:03:52.360 --> 0:03:54.440 is that second biggest points drag on the Nasdaq one 0:03:54.560 --> 0:03:58.400 hundred and maybe the logic here is that Microsoft one 0:03:58.440 --> 0:04:00.720 of the biggest buyers of invidious chips along with Meta, 0:04:01.240 --> 0:04:04.480 their growth outlooks are disappointing. So even though they're both 0:04:04.520 --> 0:04:08.280 saying we are committed to spending on AI if they 0:04:08.320 --> 0:04:11.600 can't sustain the growth that investors want to see in 0:04:11.640 --> 0:04:14.480 response to that, maybe those plans change. I just think 0:04:14.480 --> 0:04:17.680 that's so interesting to see that name down significantly despite 0:04:17.680 --> 0:04:19.640 its biggest customers saying yeah, we're going to spend money 0:04:19.640 --> 0:04:20.400 on them, no worries. 0:04:20.600 --> 0:04:22.080 Well, a lot of that also has to do because 0:04:22.120 --> 0:04:24.880 the lingering concerns about the black wall chips, and especially 0:04:24.920 --> 0:04:27.200 when you think of product delays and it's long term 0:04:27.240 --> 0:04:29.839 growth prospects. So a lot of that really is tied 0:04:29.880 --> 0:04:32.159 there to your point as far as what that means 0:04:32.160 --> 0:04:34.280 and as far as how long can some of these 0:04:34.279 --> 0:04:36.640 companies continue to ramp up that spending because we normally 0:04:36.680 --> 0:04:39.040 haven't seen that, Like I mentioned, when it comes to something. 0:04:38.839 --> 0:04:43.120 Like Microsoft astonishing gains going into earnings. It's an amazing 0:04:43.160 --> 0:04:46.200 and interesting market session, and we have Bloomberg's Jesmentum, we're 0:04:46.200 --> 0:04:48.600 grateful for it. Thank you. Let's get the cell side 0:04:48.600 --> 0:04:51.960 reaction and bring in Sweater Cajuria, Managing director for Global 0:04:51.960 --> 0:04:54.200 Internet at Wolf Research, And I think we've got to 0:04:54.240 --> 0:04:58.440 start with Meta. It's a really interesting company to understand 0:04:58.560 --> 0:05:02.560 because beaten, the care to gone, the social media advertising 0:05:02.600 --> 0:05:07.680 supported business reality labs will see greater losses. Capital expenditures 0:05:07.680 --> 0:05:10.240 will continue to grow. I've got a really big sense 0:05:10.279 --> 0:05:13.159 of deja vu. I don't know about you, Schweta, but 0:05:13.320 --> 0:05:14.640 what was your takeaway from that? 0:05:15.960 --> 0:05:17.880 Yeah, well, first of all, thanks for having me ed, 0:05:18.120 --> 0:05:21.920 it's good to be here. My takeaway was that there 0:05:21.920 --> 0:05:24.000 are a lot of good things that are going on 0:05:24.120 --> 0:05:27.440 for Meta and if we think about at a high level, yes, 0:05:27.480 --> 0:05:31.640 on the negative side, gapex remains unclear. They'll probably spend 0:05:31.800 --> 0:05:34.640 maybe fifty to sixty billion dollars in gapex next year. 0:05:34.720 --> 0:05:37.560 We'll see when they guide, but that's a pretty big number. 0:05:37.839 --> 0:05:40.719 And the losses in reality labs, certainly to your point, 0:05:40.880 --> 0:05:43.280 is a concern. But on the flip side, what they 0:05:43.279 --> 0:05:46.160 are doing in terms of how they are leveraging LAMA, 0:05:46.200 --> 0:05:48.400 which I believe is a stroke of genius on their 0:05:48.480 --> 0:05:53.880 part to their own advantage, is amazing. Especially as we 0:05:53.920 --> 0:05:58.800 think about engagement and monetization. Video recommendations alone are driving 0:05:58.880 --> 0:06:01.880 mid to high single dige percentage growth on time spent 0:06:02.320 --> 0:06:06.080 impression growths are highcing gole digit pricing is improving eleven 0:06:06.120 --> 0:06:09.760 percent for them and so and METAAI already has five 0:06:09.839 --> 0:06:13.560 hundred million mus and so the engagement on the platform 0:06:13.680 --> 0:06:15.800 is remarkable, and what they are trying to do is 0:06:16.080 --> 0:06:19.960 continue to be able to monetize on a go forward basis. 0:06:20.000 --> 0:06:23.120 So we expect their revenue growth to be sustained that 0:06:23.360 --> 0:06:25.719 you know, call it mid team's growth rate even at 0:06:26.000 --> 0:06:28.120 current levels. And they are probably one of the biggest 0:06:28.160 --> 0:06:31.560 beneficiaries of deploying AI for their own advantage. 0:06:31.600 --> 0:06:33.640 I mean, not half a billion monthly active use as 0:06:33.640 --> 0:06:37.640 a metter AI was arresting, but what arrested the market 0:06:38.000 --> 0:06:40.320 was the twenty twenty five promise to spend. 0:06:40.360 --> 0:06:42.080 Just take a listen to what Mark Zuckerbag said on 0:06:42.120 --> 0:06:42.400 the core. 0:06:43.200 --> 0:06:46.160 First, it's clear that there are a lot of new 0:06:46.200 --> 0:06:51.120 opportunities to use new AI advances to accelerate our core 0:06:51.160 --> 0:06:54.800 business that should have strong ROI over the next few years. 0:06:55.480 --> 0:06:58.640 So I think we should invest more there. And second 0:06:58.920 --> 0:07:03.279 are AI and continue to require serious infrastructure, and I 0:07:03.320 --> 0:07:06.000 expect to continue investing significantly there too. 0:07:06.720 --> 0:07:10.760 So in your note Shretter, you talk about the new opportunities, 0:07:10.800 --> 0:07:13.120 the new revenue avenues that we're going to see. What 0:07:13.280 --> 0:07:15.200 are they articulate that for the market. 0:07:16.200 --> 0:07:19.360 Sure, well, in the nearer mid term it is leveraging 0:07:19.400 --> 0:07:23.080 these AI, the AI models and LAMA to their own 0:07:23.120 --> 0:07:26.360 advantage around engagement and monetizations, so they are making their 0:07:26.400 --> 0:07:32.080 recommendations better. An example would be unified videos. They're making 0:07:32.120 --> 0:07:35.160 a full screen video on their platforms across their apps, 0:07:35.360 --> 0:07:38.760 and that's going to drive engagement because it's live videos, 0:07:38.800 --> 0:07:44.000 short form videos, differentiated videos, all on one platform on 0:07:44.040 --> 0:07:47.679 a full screen, and that itself has opportunity to increase 0:07:47.720 --> 0:07:52.040 supply in terms of ad impressions in that format. In 0:07:52.040 --> 0:07:55.280 addition to that, they're using AI to make those recommendations 0:07:55.280 --> 0:07:59.000 more targeted and they have not really untapped that opportunity 0:07:59.040 --> 0:08:02.360 as much advantage, which plus is what grew their growth 0:08:02.360 --> 0:08:05.440 in twenty twenty four. In twenty twenty five is most 0:08:05.480 --> 0:08:08.559 likely going to be video recommendation platform and their video 0:08:08.600 --> 0:08:12.000 feed That will probably drive their advertising growth in the 0:08:12.040 --> 0:08:15.320 mid to long term. There are several other revenue sources 0:08:15.320 --> 0:08:18.680 that they never had before. For example, business to business 0:08:18.720 --> 0:08:21.960 messaging on WhatsApp that's probably two years out, but they're 0:08:21.960 --> 0:08:26.240 already monetizing that, and then beyond two years Meta AI 0:08:26.400 --> 0:08:30.120 in terms of adding advertising to their search feeds on 0:08:30.280 --> 0:08:33.240 Meta ai in addition to subscription. Just like Chad GPT 0:08:33.400 --> 0:08:37.280 or Gemini are completely new revenue sources for them. 0:08:37.400 --> 0:08:40.600 And they continue to see early surprise success with ray 0:08:40.640 --> 0:08:44.479 van Metas the Glasses and Swetter. You do not cover Microsoft, 0:08:44.800 --> 0:08:48.480 but you do follow Alphabet, the parent of Google and 0:08:48.600 --> 0:08:51.439 Amazon that reports after the bell and in the context 0:08:51.440 --> 0:08:54.240 of cloud, I look at what Alphabet said and last 0:08:54.280 --> 0:08:57.680 night Microsoft both seeming to suggest that the number three 0:08:57.679 --> 0:09:02.080 and two players took market share from Aws, Amazon the 0:09:02.160 --> 0:09:05.640 number one player. Do you go into Amazon's earning tonight 0:09:05.760 --> 0:09:07.760 with that analysis as well? 0:09:08.920 --> 0:09:12.720 Absolutely, I mean the top three players in the market 0:09:12.800 --> 0:09:17.840 are Amazon's AWS, Azure and Google Cloud. What we also 0:09:17.920 --> 0:09:20.360 saw with Google Cloud because I do cover it is 0:09:20.400 --> 0:09:23.840 thirty five percent cloud growth rate and in part driven 0:09:23.960 --> 0:09:27.120 by them not only gaining share, but also part of 0:09:27.280 --> 0:09:32.000 expanding markettam, which is their AI services and products are 0:09:32.040 --> 0:09:34.520 really driving that growth. If we look at their ten 0:09:34.600 --> 0:09:37.520 Q and the backlog, the demand rends that they're seeing 0:09:37.520 --> 0:09:42.760 are pretty amazing. So going into Amazon's print, our expectation 0:09:43.040 --> 0:09:47.800 is that Amazon's AWS Cloud revenue likely grew twenty to 0:09:47.840 --> 0:09:50.520 twenty one percent, and the streets looking for nineteen percent 0:09:50.559 --> 0:09:53.360 growth rate. That's our expectation and we expect that to 0:09:53.400 --> 0:09:55.200 accelerate in the fourth quarter. 0:09:56.000 --> 0:09:58.839 You have an outperform writing on Amazon allies in that 0:09:58.920 --> 0:09:59.760 after the ball Schwartzek. 0:10:00.559 --> 0:10:03.480 Great to have you of Wolf Research coming up. 0:10:03.880 --> 0:10:08.200 DoorDash remarks a major milestone since launching its IPO. The 0:10:08.280 --> 0:10:19.320 CFO Rabi Uconda joins us. Next, this is Blueberg Technology 0:10:29.360 --> 0:10:32.120 Time now for talking tech. First up, It's official the 0:10:32.200 --> 0:10:37.160 EU is investigating e commerce platform Temu for potentially violating 0:10:37.160 --> 0:10:40.200 the Digital Services Act. Now, the commission suspects that the 0:10:40.200 --> 0:10:42.480 company is not doing enough to combat sales of illegal 0:10:42.520 --> 0:10:44.000 products on its site. 0:10:44.200 --> 0:10:45.440 Meanwhile, Elon Musk. 0:10:45.360 --> 0:10:48.640 Was sued by the Philip Philadelphia District Attorney of his 0:10:48.720 --> 0:10:52.440 political action committees one million a day sweepstakes targeting swing 0:10:52.480 --> 0:10:55.440 state voters. Now the DA is asking a state court 0:10:55.559 --> 0:10:58.320 to stop Musk from engaging in what it calls an 0:10:58.440 --> 0:11:03.320 unlawful lottery. And Pelton has tapped Ford executive Peter Stern 0:11:03.400 --> 0:11:06.600 as its new CEO. The fitness brand has struggled to 0:11:06.679 --> 0:11:10.080 lose profitability since the pandemic. Ford Hardston last year to 0:11:10.200 --> 0:11:13.719 run a newly created technology focused division of the automaker 0:11:14.240 --> 0:11:15.720 ed Okay. 0:11:15.800 --> 0:11:19.200 Door Dash has topped Wall Street expectations in nearly every 0:11:19.320 --> 0:11:23.360 key metric. This earning season seeing its first quarterly operating 0:11:23.400 --> 0:11:26.360 profit since the start of the pandemic, generating one hundred 0:11:26.440 --> 0:11:29.280 and seven million dollars in operating income. And really it's 0:11:29.320 --> 0:11:33.240 a story about an app or platform that's shifted from 0:11:33.320 --> 0:11:36.800 restaurant deliveries to so much moreh CFO Rave in a 0:11:36.880 --> 0:11:39.320 Conda is with us here in San Francisco. Let's just 0:11:39.440 --> 0:11:42.320 focus on the future. So that was the story, right, 0:11:42.440 --> 0:11:46.720 that what's happening is success in other business lines. But 0:11:46.880 --> 0:11:50.319 so many interested about this long term future of door Dash. 0:11:50.440 --> 0:11:54.400 You hinted there would be long term investments in new areas. 0:11:54.640 --> 0:11:55.880 What are they sure? 0:11:56.080 --> 0:11:58.840 We started our business with the restaurants as the core focus, 0:11:59.160 --> 0:12:02.600 but today we are so much more than restaurants. Consumers 0:12:02.600 --> 0:12:05.199 have it an all time high. More consumers are ordering 0:12:05.240 --> 0:12:10.160 from more categories. It's grocery, its retail, it's Halloween costumes. 0:12:10.520 --> 0:12:13.439 We are partnering with every single store in your local neighborhood. 0:12:13.720 --> 0:12:16.800 Our goal is to be your local neighborhood superstore. 0:12:17.080 --> 0:12:20.800 Which areas are the most profitable potentially business lines for 0:12:20.840 --> 0:12:21.240 the app. 0:12:21.640 --> 0:12:24.560 The overall business has been gap profitable now for the 0:12:24.559 --> 0:12:26.920 first time as a public company. The way we think 0:12:26.920 --> 0:12:29.520 about it is we are trying to build scale in 0:12:29.559 --> 0:12:32.440 our business. Scale is the most important thing because scale 0:12:32.520 --> 0:12:36.400 drives efficiency, which ultimately drives profitability in the business. If 0:12:36.440 --> 0:12:39.079 you look at our restaurants business that has been profitable 0:12:39.120 --> 0:12:42.319 for a few years, we're taking the profitability and building 0:12:42.360 --> 0:12:45.679 our new categories business as well as our international business. 0:12:46.320 --> 0:12:48.960 Let's just talk about international because you made acquisitions there 0:12:49.040 --> 0:12:51.320 and I'm interested as to how the consumers stack up 0:12:51.440 --> 0:12:52.959 US versus international consumer. 0:12:53.040 --> 0:12:57.880 Right now, RABI International is seeing very good and strong growth. 0:12:58.480 --> 0:13:02.439 The growth has been substantially faster than peers. We're gaining 0:13:02.440 --> 0:13:05.280 share virtually in every country that we operate in. All 0:13:05.320 --> 0:13:07.920 of that is being driven by the underlying product innovation. 0:13:08.520 --> 0:13:12.160 Users are growing, order frequencies growing. We launched World Plus, 0:13:12.160 --> 0:13:15.160 our subscription program in international markets, and that's off to 0:13:15.200 --> 0:13:16.079 our flying start. 0:13:16.679 --> 0:13:17.480 What's interesting is. 0:13:17.480 --> 0:13:19.439 You're doing partnerships here in the US. 0:13:19.480 --> 0:13:20.120 It is with lift. 0:13:20.600 --> 0:13:24.120 How integral is that sort of a partnership for growing 0:13:24.280 --> 0:13:26.240 your user base, which, of course your CEO is saying, 0:13:26.280 --> 0:13:28.319 you're still only a single digit fraction of the overall 0:13:28.400 --> 0:13:29.199 restaurant industry. 0:13:30.640 --> 0:13:33.120 We're excited by the partnership with Lyft. We think it's 0:13:33.160 --> 0:13:36.800 an opportunity for us to make dash Pass even more valuable. 0:13:37.280 --> 0:13:40.680 We have over eighteen million plus subscribers that have saved 0:13:40.679 --> 0:13:44.320 over ten billion dollars globally. Partnerships like this make it 0:13:44.360 --> 0:13:47.280 a little bit more attractive, help our consumers save even more. 0:13:47.600 --> 0:13:50.880 But the core focus continues to be to improve the platform. 0:13:50.920 --> 0:13:52.760 That's where we see still the majority of the growth 0:13:52.760 --> 0:13:53.160 for us. 0:13:53.240 --> 0:13:57.520 You know, Rabi combining right hailing with delivery of food 0:13:57.559 --> 0:14:01.080 and groceries sounds a lot like what Uba does, but 0:14:01.160 --> 0:14:04.640 there's an interesting analysis to be done why you're friving. 0:14:05.240 --> 0:14:09.400 But Uber also printed results that showed the consumer is 0:14:09.440 --> 0:14:11.920 a little bit tepid right now in the right hailing 0:14:12.000 --> 0:14:15.520 context in this gig economy world. Why is it that 0:14:15.559 --> 0:14:17.920 you're succeeding in the here and now? 0:14:18.320 --> 0:14:20.000 We have so much more than restaurants. I'll give you 0:14:20.000 --> 0:14:22.520 a small example. Just a couple of months ago, we 0:14:22.520 --> 0:14:25.720 were running late for back to school. We use DoorDash 0:14:26.000 --> 0:14:28.200 for back to school supplies for both of our kids. 0:14:28.240 --> 0:14:29.680 Okay, we want to. 0:14:29.640 --> 0:14:32.200 Take away the worry of having a to do list. 0:14:32.560 --> 0:14:33.840 We want DoorDash to be. 0:14:33.880 --> 0:14:36.920 Your local commerce to do list. Local commerce is a 0:14:36.960 --> 0:14:40.440 large opportunity. Delivery is the most frequent use case people 0:14:40.440 --> 0:14:42.920 need at local stores. People order from local stores more 0:14:42.920 --> 0:14:45.720 than any other activity, and we are the leaders in 0:14:45.760 --> 0:14:48.480 that space. We are providing selection, We're bringing the best 0:14:48.480 --> 0:14:50.120 of local neighborhoods to your doorstep. 0:14:51.280 --> 0:14:55.000 Let's just talk a little bit more about the geography 0:14:55.200 --> 0:14:57.600 of where you want to be expanding. I mean, is 0:14:58.360 --> 0:15:00.400 it about spending power a geography when it comes to 0:15:00.680 --> 0:15:02.840 a deal like the one that we see with Lift, 0:15:03.280 --> 0:15:06.400 and how do you then extrapolate that to potentially international 0:15:06.840 --> 0:15:09.280 geography growth as well. 0:15:09.520 --> 0:15:12.800 We operate in over thirty countries, and the interesting thing 0:15:12.880 --> 0:15:15.000 is even in all the countries that we operate in, 0:15:15.360 --> 0:15:18.720 we're not in all the cities. Our focus continues to 0:15:18.720 --> 0:15:21.160 be to build the best product possible, not just for consumers, 0:15:21.520 --> 0:15:24.640 but merchants as well as dashers. We just announced a 0:15:24.720 --> 0:15:28.520 product we call Commerce Platform for our merchants, which continues 0:15:28.560 --> 0:15:31.400 to do really well. Even in the US, we are 0:15:31.480 --> 0:15:35.080 the fastest growing from a grocery perspective. We're gaining share 0:15:35.120 --> 0:15:38.440 compared to peers. Our goal is to expand to all 0:15:38.600 --> 0:15:41.800 things within local commerce, within all the countries that we operate. 0:15:41.600 --> 0:15:45.440 In your technology company. You just talk us about your business. 0:15:45.880 --> 0:15:49.520 Why give me one reason why it helps you stand out. 0:15:49.760 --> 0:15:51.480 You're very good at that, maybe others on. 0:15:52.080 --> 0:15:54.120 There's three legs to the stool of growth that we 0:15:54.200 --> 0:15:58.560 think about. It's selection, it's quality, it's affordability. It's not 0:15:58.720 --> 0:16:01.560 one or the other. It's a combination of all three 0:16:01.600 --> 0:16:04.680 things that consumers are looking and asking for. And we're 0:16:04.760 --> 0:16:08.440 driving same store sales growth for merchants. Over seven million 0:16:08.520 --> 0:16:11.160 dashers have dashed with us in the last year, earning 0:16:11.160 --> 0:16:14.200 over fifteen billion, and we are the fasts going from 0:16:14.200 --> 0:16:17.280 an overall consumer footprint perspective as well. 0:16:17.520 --> 0:16:19.560 Rabbi, we want to thank you for coming in spelling 0:16:19.560 --> 0:16:22.520 out the learnings and the potential door dash Cfo Ravi 0:16:22.720 --> 0:16:25.160 in Acondo there. Meanwhile, coming up, I'm going to be 0:16:25.240 --> 0:16:28.040 speaking with the Twilio CEO coming up next on the 0:16:28.080 --> 0:16:31.040 heels of the company's quarterly earnings report and what are 0:16:31.040 --> 0:16:32.280 you looking at in tess of earnings? 0:16:32.320 --> 0:16:35.520 So really quick check on eBay stockdown more than eight 0:16:35.520 --> 0:16:38.880 percent as a familiar story. The forecast for that key 0:16:38.960 --> 0:16:43.480 holiday period was lackluster, and you know, I think It's 0:16:43.480 --> 0:16:45.680 an interesting one because we're just talking about door Dash 0:16:45.720 --> 0:16:48.360 and Uber and this key final three months of the year. 0:16:48.560 --> 0:16:51.920 Everyone is giving us different as signals about consumer behavior, 0:16:51.960 --> 0:16:54.480 but investors do not like what eBay is saying about 0:16:54.560 --> 0:16:57.440 its marketplace and platform. We'll keep tracking it. This has 0:16:57.480 --> 0:17:18.640 been most technology cloud communications player. Twilio's third quarter earnings 0:17:18.720 --> 0:17:20.960 beat all street estimates and the company has now raised 0:17:21.000 --> 0:17:25.120 its full year revenue outlook. Here with more Twilio CEO 0:17:25.240 --> 0:17:29.920 Cozama Ship Chandler turnaround plan seems to be working, Margins 0:17:29.920 --> 0:17:33.560 are improving. There's been this call ay structuring since you 0:17:33.640 --> 0:17:37.000 came in as CEO or jump to CEO, which bit 0:17:37.359 --> 0:17:38.200 is working best? 0:17:38.720 --> 0:17:40.199 Yeah, I wouldn't call it a restructuring. 0:17:40.240 --> 0:17:44.520 I would say it's steady progress, really good financial discipline, 0:17:45.160 --> 0:17:48.200 operating rigor, a lot of innovation focus. And I think 0:17:48.200 --> 0:17:50.520 what you're starting to see is that show up in 0:17:50.640 --> 0:17:54.800 terms of accelerated growth, and I think increasingly we're starting 0:17:54.840 --> 0:17:57.840 to become a beneficiary of this AI wave. 0:17:58.520 --> 0:18:01.800 Let's expand on the innovation. Part of the blackstory you 0:18:01.840 --> 0:18:04.320 know with Twilio was investors who really want to see 0:18:04.400 --> 0:18:08.560 sort of discipline and a growth plan. But you're doing 0:18:08.640 --> 0:18:10.439 things in the world of technology that matter. 0:18:10.920 --> 0:18:13.639 Yeah, I mean, I think you're starting to see margins. 0:18:13.160 --> 0:18:15.640 Really improve over the last several years, which I think 0:18:15.680 --> 0:18:18.960 has been exciting for investors, certainly been exciting for us. 0:18:19.440 --> 0:18:21.879 I think on top of that, though, we've also seen 0:18:22.040 --> 0:18:25.119 a real return to innovation. So we're making some really 0:18:25.160 --> 0:18:28.800 focused bets in terms of where that innovation lies. And 0:18:28.840 --> 0:18:32.960 for us, it's really about delivering for consumers Visa VR 0:18:33.040 --> 0:18:36.960 customers personalization at scale, and what that really means is 0:18:37.160 --> 0:18:42.280 how do we combine communications plus contextual data plus AI 0:18:42.600 --> 0:18:47.119 to deliver these amazing consumer experiences through digital interactions. 0:18:46.720 --> 0:18:49.600 Because the magic of television. Your IFB's popped out, feel 0:18:49.640 --> 0:18:51.600 free to pop it back in. And I'll point out 0:18:51.960 --> 0:18:53.760 that a lot of the cell side analysts have raised 0:18:53.760 --> 0:18:55.560 price targets on this idea. I think they see a 0:18:55.560 --> 0:18:58.080 clearer future just very quick. So I want carry to 0:18:58.080 --> 0:19:00.439 come in. I think that's fair. There's a clear longer 0:19:00.520 --> 0:19:01.160 term coffee. 0:19:01.760 --> 0:19:03.600 Yeah, I do think so, and I think we feel 0:19:03.640 --> 0:19:07.199 pretty optimistic about our long term growth ambitions. Obviously, we 0:19:07.240 --> 0:19:10.360 want to balance our ability to grow the company as 0:19:10.359 --> 0:19:14.320 well as drive ongoing profitability and free cash flow and 0:19:14.440 --> 0:19:16.399 finding that balance really is the trick. 0:19:16.760 --> 0:19:18.160 But as I look out. 0:19:17.920 --> 0:19:20.359 And see what's happening in sort of this age of AI, 0:19:20.480 --> 0:19:22.360 I think we're going to be one of the real beneficiaries. 0:19:22.560 --> 0:19:26.040 Let's talk about monetizing that AI cousmurf. You can hear 0:19:26.080 --> 0:19:28.919 me well, because Morgan Stanley says, look, it's encouraging this 0:19:29.000 --> 0:19:31.760 AI product integration, but they want to see the monetization. 0:19:31.920 --> 0:19:32.800 How do you turn that on? 0:19:34.080 --> 0:19:35.880 I mean, I think the way that it happens is 0:19:35.880 --> 0:19:38.080 is that we've got this great data asset that we 0:19:38.160 --> 0:19:41.680 bought several years ago in Segment, and on kind of 0:19:41.720 --> 0:19:45.280 a standalone basis, it's a relatively small piece of our revenue. 0:19:45.640 --> 0:19:48.520 But the long term play here is is that what 0:19:48.680 --> 0:19:53.240 Segment does is extract contextual data out of the businesses 0:19:53.240 --> 0:19:56.639 that we serve and our ability to combine that with 0:19:56.760 --> 0:19:59.919 communications capabilities and then use a little bit of a 0:20:00.280 --> 0:20:03.440 to create that awesome consumer outcome on the other side. 0:20:03.440 --> 0:20:05.320 Like, that's really what we're going for, And. 0:20:05.240 --> 0:20:07.879 What it kind of means is is that whether it's you, 0:20:08.000 --> 0:20:10.160 whether it's the two of us, or whether it's thousands 0:20:10.200 --> 0:20:13.720 of other consumers all at the same time, us being 0:20:13.720 --> 0:20:18.600 able to achieve that personalization as if a business knows 0:20:18.960 --> 0:20:21.439 every single thing about us in the way that they 0:20:21.480 --> 0:20:22.240 interact with us. 0:20:22.280 --> 0:20:23.199 That's what we unlock. 0:20:23.400 --> 0:20:26.359 It's really interesting you bring up that segment part because 0:20:26.400 --> 0:20:29.960 that was the area of the business that activist investors 0:20:30.040 --> 0:20:32.680 wanted you to shirk to sell off. There is still 0:20:32.720 --> 0:20:36.000 some weakness within it. Are you standing by the decision 0:20:36.080 --> 0:20:38.240 to keep it as part of Twilio and how do 0:20:38.240 --> 0:20:39.679 you tell that story going forward? 0:20:40.680 --> 0:20:42.840 Yeah, I mean, look, I think we've made progress in 0:20:42.880 --> 0:20:45.159 that business. We made a number of commitments at the 0:20:45.200 --> 0:20:48.200