WEBVTT - SoftBank Left Millions on Table in Arm IPO 0:00:01.360 --> 0:00:05.680 This is Bloomberg Business Wait inside from the reporters and 0:00:05.880 --> 0:00:09.440 editors who bring you America's most trusted business magazine, plus 0:00:09.520 --> 0:00:13.680 global business finance and tech news. The Bloomberg Business Week 0:00:13.720 --> 0:00:19.000 podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:20.200 --> 0:00:22.840 Look, it was the week of the IPO of the 0:00:23.000 --> 0:00:28.640 largest IPO this year, ARM, and it went off pretty successfully, 0:00:29.120 --> 0:00:32.640 shares rallying almost twenty five percent yesterday, but they're down 0:00:32.680 --> 0:00:35.800 about a percent and a half today, so twenty two 0:00:35.880 --> 0:00:40.280 percent higher than the fifty one dollars per share price 0:00:40.320 --> 0:00:43.080 that they set for the IPO. Now. Launching a successful 0:00:43.080 --> 0:00:46.320 IPO was also important for the parent, soft Bank, which 0:00:46.320 --> 0:00:49.720 had bought the company in twenty sixteen for thirty six 0:00:49.840 --> 0:00:55.040 billion dollars but had had flameouts like we were DoorDash. However, 0:00:55.200 --> 0:00:57.960 SoftBank did leave a whole lot of money on the table. 0:00:58.200 --> 0:01:01.080 Bloomberg reporters Ryan gould Amy or Ian King wrote a 0:01:01.080 --> 0:01:05.240 play by play of how the final day wrapped up 0:01:05.520 --> 0:01:09.120 and why it matters. Ryan, I'm pleased to say joins 0:01:09.200 --> 0:01:12.640 us now via zoom Ryan, thanks so much for joining us. 0:01:13.160 --> 0:01:17.919 ARMS ipo was, by your reporting, ten times oversubscribed. I believe. 0:01:18.640 --> 0:01:22.440 How did bankers settle on fifty one dollars a share? 0:01:24.319 --> 0:01:26.880 Jess, thanks for having me. It was quite the week 0:01:26.920 --> 0:01:31.080 it turned out, particularly that final pricing meeting. I mean, 0:01:31.600 --> 0:01:34.160 all being said, I think probably what ended up happening 0:01:34.240 --> 0:01:37.280 was a fairly normal meeting. Bearing in mind obviously as 0:01:37.280 --> 0:01:40.800 we say this was a soft bank. IPO Massa probably 0:01:40.800 --> 0:01:42.800 felt that there was much to sort of write the 0:01:42.840 --> 0:01:45.680 record on, given what had happened with a few of 0:01:45.680 --> 0:01:48.080 the other names you mentioned at the top there. But yeah, 0:01:48.120 --> 0:01:51.120 you know that that Wednesday meeting, that was something that 0:01:51.560 --> 0:01:53.880 you know, there was the case laid out for sort 0:01:53.880 --> 0:01:56.480 of fifty two dollars a share, there was the case 0:01:56.520 --> 0:01:58.920 laid out for fifty one dollars a share, and ultimately 0:01:58.960 --> 0:02:02.600 it was left to to to son Tanessa to decide 0:02:02.640 --> 0:02:05.920 that actually he wanted to play this one safe, play 0:02:05.920 --> 0:02:08.720 it smart so and might argue and leave sort of 0:02:08.880 --> 0:02:11.519 basically one hundred or so million dollars on the table 0:02:12.520 --> 0:02:15.600 by choosing the fifty one a share. That being said, 0:02:15.639 --> 0:02:17.840 you know, fifty one dollars a share was still the 0:02:17.880 --> 0:02:20.880 top of the marketing range. This is something that you know, 0:02:20.919 --> 0:02:24.560 he felt could set the company up for success come yesterday, 0:02:24.720 --> 0:02:28.040 Thatursday it started trading, and you know, as you mentioned, 0:02:28.040 --> 0:02:32.519 we're still up to twenty two percent on from yesterday. 0:02:32.600 --> 0:02:35.959 So I think he's probably looking towards you know, today 0:02:36.000 --> 0:02:37.880 being Friday, at the end of the week for trading, 0:02:38.280 --> 0:02:42.040 you know, they've really they're they're in a good position. 0:02:42.400 --> 0:02:44.080 I know that the arm the armed folks will be 0:02:44.160 --> 0:02:45.679 will be feeling good as well. 0:02:46.680 --> 0:02:50.359 Especially when you were thinking about this year's biggest IPO, 0:02:51.040 --> 0:02:54.320 when we're looking ahead to what this can potentially mean 0:02:54.960 --> 0:03:00.799 for other IPOs coming down the pipeline. It's been so challenging, 0:03:01.080 --> 0:03:03.640 especially over the past year obviously the correlation when you 0:03:03.680 --> 0:03:06.360 think about what was happening with the Fed's most aggressive 0:03:06.480 --> 0:03:09.720 hiking cycle in decades, what is it shaping up like 0:03:09.800 --> 0:03:12.160 do you think moving forward in the near term whenever 0:03:12.240 --> 0:03:14.760 you're speaking with your sources as far as what this 0:03:14.840 --> 0:03:17.320 means for other companies that could potentially go public. 0:03:17.360 --> 0:03:21.359 Now, yeah, I mean, make a mistake, this is this 0:03:21.400 --> 0:03:23.799 is a huge event for the rest of the market. 0:03:24.320 --> 0:03:26.600 I don't think we're in a position just yet where 0:03:26.600 --> 0:03:29.040 we could say, you know, the floodgates will open, but 0:03:29.200 --> 0:03:30.800 certainly through the end of this year, through the end 0:03:30.840 --> 0:03:32.919 of twenty twenty three. We're in a position that now 0:03:33.040 --> 0:03:36.520 you could probably start to see premium assets, you know, 0:03:36.600 --> 0:03:40.120 marketing names coming out and thinking okay, well we'll we're 0:03:40.120 --> 0:03:42.360 going to push push the button. I mean, just to 0:03:42.440 --> 0:03:45.200 name one, you know, birkin Stock, the German footwear maker, 0:03:45.920 --> 0:03:49.240 they are, they filed, they are looking to go probably 0:03:49.320 --> 0:03:52.040 you know, we could see them setting a price range 0:03:52.120 --> 0:03:55.680 later this month. People know Berkinstock, people will know how 0:03:55.880 --> 0:03:59.680 you know, the their heritage, their their brand, and they 0:03:59.760 --> 0:04:02.960 feel confident enough. And I think, you know, seeing arm 0:04:03.000 --> 0:04:05.240 getting up to such a great start yesterday and today 0:04:05.240 --> 0:04:08.480 in trading, it's it's a boon. It's definitely a shot 0:04:08.520 --> 0:04:12.240 in the arm. That being said, not every company is 0:04:12.280 --> 0:04:14.000 going to be able to come out and think, you know, 0:04:14.080 --> 0:04:17.320 this is the time for them. There many sources are 0:04:17.360 --> 0:04:20.800 saying to me and others that you know, twenty twenty four, 0:04:20.920 --> 0:04:22.880 the first quarter of twenty twenty four, as soon as 0:04:22.920 --> 0:04:25.920 you get that sort of full year audited results, and 0:04:25.960 --> 0:04:28.720 probably no later the end of February will give you 0:04:28.760 --> 0:04:31.520 a better chance so you can put audited results in 0:04:31.560 --> 0:04:34.880 front of potential investors. On the virtuo versus the nine 0:04:34.880 --> 0:04:36.480 months that you would only be able to provide as 0:04:36.520 --> 0:04:41.200 of now. That I think should give some investors as well, 0:04:41.240 --> 0:04:43.240 you know, much more comfort to think about. You know, 0:04:43.320 --> 0:04:46.040 Let's see how ARM plays out, Let's see what happens 0:04:46.040 --> 0:04:48.520 to working stock once it starts trading. And obviously I 0:04:48.560 --> 0:04:54.239 haven't mentioned yet Clavier or Instagram right popular trade next week, 0:04:54.360 --> 0:04:58.400 So yeah, I mean, obviously I would caution and say that, 0:04:58.720 --> 0:05:01.000 you know, ARM is you know, Instacart. It is clearly 0:05:01.040 --> 0:05:03.919 not like on and Clavio is not like Instacart. So 0:05:04.400 --> 0:05:06.479 you know, when you're thinking about these things, it's all 0:05:06.520 --> 0:05:08.200 a little bit relative, and I do think you have 0:05:08.240 --> 0:05:10.680 to be a bit cautious. But there are some good 0:05:10.720 --> 0:05:13.479 signs that in the next week we could be in 0:05:13.480 --> 0:05:16.359 a position where three IPOs in you know, in a 0:05:16.440 --> 0:05:19.720 fortnight could could get off to you know, Aurora. 0:05:20.200 --> 0:05:22.760 Yeah, and it's not like every soft bank ipo has 0:05:22.800 --> 0:05:25.800 always done extraordinarily well, even you know, if they had 0:05:26.040 --> 0:05:27.960 a bit of a share pop on the first day. 0:05:29.000 --> 0:05:31.200 You know, you have been reporting on Instacurt as well. 0:05:31.240 --> 0:05:33.960 I believe you broke the news that the company was 0:05:34.120 --> 0:05:38.839 raising its price range for its upcoming IPO, which may 0:05:38.880 --> 0:05:42.320 it sounds like price on Monday. What are the big 0:05:42.400 --> 0:05:47.800 questions that you're asking your sources right now around how 0:05:48.000 --> 0:05:49.440 this IPO is going to go. 0:05:51.080 --> 0:05:54.120 Instacart is interesting one, and we you know, we reported 0:05:54.120 --> 0:05:57.279 this morning that they are looking to price Monday, price 0:05:57.320 --> 0:06:01.440 Monday evening, start trading on Tuesday. Much of the question 0:06:01.520 --> 0:06:04.119 in I think around Instacart is not so much around 0:06:04.120 --> 0:06:07.000 the business model. It's more around, you know, as an 0:06:07.040 --> 0:06:10.719 ipa process like this unfolds, how are companies and their 0:06:10.800 --> 0:06:14.480 executives And perhaps in other cases sponsor backer is thinking 0:06:14.520 --> 0:06:17.760 about pricing. Just how aggressive can you be on valuation 0:06:18.200 --> 0:06:21.880 in a very sort of valuation sensitive environment, Just exactly 0:06:21.920 --> 0:06:24.599 how far can you push the boat and not sort 0:06:24.600 --> 0:06:27.800 of scare off investors Because I think when you think 0:06:27.800 --> 0:06:30.480 about going on a road show, you're wanting to say 0:06:30.560 --> 0:06:33.800 you've already identified maybe one hundred or so accounts that 0:06:33.839 --> 0:06:36.800 you absolutely want in your book. I mean, there are 0:06:36.880 --> 0:06:40.279 always going to be instances where your top five, top six, 0:06:40.360 --> 0:06:42.560 maybe one or two of those won't actually agree to 0:06:42.760 --> 0:06:45.680 come in. So I think it's a case of thinking 0:06:45.720 --> 0:06:47.960 about how can we please as many people as possible. 0:06:48.200 --> 0:06:51.279 One of those things is not pushing the valuation too hard. 0:06:51.760 --> 0:06:54.080 It's clearly a sign of strength in Instacart's case that 0:06:54.120 --> 0:06:55.760 they are able to come out this morning with that 0:06:55.839 --> 0:06:58.600 two dollars hike to the range. It was always sort 0:06:58.600 --> 0:07:00.960 of seen as an opportunity even the beginning at the 0:07:01.040 --> 0:07:03.520 road show last week that you know, perhaps it was 0:07:03.640 --> 0:07:07.080 very attractively priced. There was perhaps some little riggle room, 0:07:07.440 --> 0:07:10.480 and clearly they taken advantage of that. But I think 0:07:10.840 --> 0:07:13.320 as a collective sort of set, when we look at 0:07:13.360 --> 0:07:15.720 this IPA window that we're currently in through to the 0:07:15.760 --> 0:07:19.160 sort of Thanksgiving period, the massive question is around how 0:07:19.200 --> 0:07:23.400 far can you push pricing just given how sensitive investors 0:07:23.440 --> 0:07:26.920 are in this higher rates environment. You know, perhaps with 0:07:27.080 --> 0:07:31.360 anticipation of a softer landing into into next year, you know, 0:07:31.840 --> 0:07:34.600 we'll we really don't want to be thinking about scaring 0:07:34.640 --> 0:07:39.680 off investors even further or again from from IPOs right, and. 0:07:39.640 --> 0:07:42.640 I mean especially with a consumer that may fray. I mean, 0:07:42.760 --> 0:07:45.040 isn't that what we've heard all earning season? The consumer 0:07:45.040 --> 0:07:46.160 could fray a little bit here? 0:07:47.200 --> 0:07:50.480 Yeah, exactly. I think you know, even even there are 0:07:50.520 --> 0:07:53.560 in Instacrat's case in arms, you know that there was 0:07:53.760 --> 0:07:57.080 there has been significant interest even from retail investors, so 0:07:57.200 --> 0:07:59.920 to speak. And when you think about ARM yesterday was 0:08:00.040 --> 0:08:03.200 one of the sort of most highly tracked stocks. New 0:08:03.320 --> 0:08:06.200 stocks are on Fidelity. I mean people are wanting to 0:08:06.200 --> 0:08:09.320 get in on this as well in regards to you know, 0:08:09.400 --> 0:08:12.680 the actual spending of it. Yeah, Birkinstock has just put 0:08:12.680 --> 0:08:15.880 out of advice filing today with the nine months and 0:08:15.920 --> 0:08:18.320 with nine month results is through September of this year. 0:08:18.840 --> 0:08:21.160 It did not come with a price range. But you know, 0:08:21.400 --> 0:08:23.720 things are looking rosy. I mean it must be said 0:08:23.800 --> 0:08:25.480 that you know things are looking rosy, and you know 0:08:25.560 --> 0:08:28.280 they're hoping to get into a position by the end 0:08:28.280 --> 0:08:31.679 of this month where they could be pricing before pricing 0:08:31.720 --> 0:08:33.080 and trading before Columbus State. 0:08:34.120 --> 0:08:34.520 All right. 0:08:34.679 --> 0:08:38.520 Ryan Gould us IPO reporter at Bloomberg News, joining us 0:08:38.559 --> 0:08:41.160 on zoom from New York City. Always a pleasure getting 0:08:41.160 --> 0:08:44.800 your perspective on all things IPOs and especially with shaping 0:08:44.840 --> 0:08:47.040 up when it comes to Instacart and these others that 0:08:47.080 --> 0:08:48.360 are coming up shortly. 0:08:49.120 --> 0:08:52.679 You're listening to the Bloomberg Business Week podcast. Catch us 0:08:52.679 --> 0:08:56.040 live weekday afternoons from three to six Eastern Listen on 0:08:56.120 --> 0:08:59.800 Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business 0:08:59.800 --> 0:09:03.559 app or want us Live on YouTube. 0:09:03.600 --> 0:09:07.440 I don't know about you, but whenever you are in 0:09:07.520 --> 0:09:11.880 a particular checkout online, depending on whichever retailer you're using, 0:09:11.920 --> 0:09:15.040 do you ever abandon your cart? Do you keep thinks? 0:09:15.280 --> 0:09:18.200 I don't abandon it? Okay, I have to say my 0:09:18.280 --> 0:09:22.640 Amazon cart is like enormous to other retail at least 0:09:22.720 --> 0:09:25.360 it stays some other retailers. You know, I put stuff 0:09:25.360 --> 0:09:27.800 in the cart, I don't click out, and then I'm like, wait, 0:09:27.840 --> 0:09:29.000 I spent all this time looking for. 0:09:28.960 --> 0:09:31.560 Some right, and so I do something similar. Especially when 0:09:31.600 --> 0:09:34.720 I'm on Amazon too. There's things that I'm sort of eyeballing, 0:09:34.800 --> 0:09:37.280 but hey, maybe if it drops in price, maybe if 0:09:37.280 --> 0:09:39.400 it's Prime Day or going too the holidays, I'll keep it. 0:09:39.480 --> 0:09:42.559 But there is a company that's trying to remove that 0:09:42.640 --> 0:09:44.800 friction when it comes to retail and it comes to 0:09:44.840 --> 0:09:48.720 that checking out dynamic there. And who better to chat 0:09:48.720 --> 0:09:52.480 with us about this than Madu Kuavilla, CEO of Bolt 0:09:53.160 --> 0:09:56.160 And it's a payments platform in company, and he's going 0:09:56.240 --> 0:09:59.000 to talk to us about how AI can help the 0:09:59.120 --> 0:10:02.600 challenges that are facing the e commerce rule. He's actually 0:10:02.720 --> 0:10:06.240 joining us on Zoom from Seattle. It's great to have 0:10:06.280 --> 0:10:09.680 you back in speaking with us again. For those who 0:10:09.800 --> 0:10:13.640 haven't heard you yet on our program here talk to 0:10:13.720 --> 0:10:16.440 us about what Bolt is and what it does. 0:10:18.120 --> 0:10:21.840 Great to be back here. The problem you just mentioned, 0:10:22.280 --> 0:10:26.679 which is people come to an e commerce site, brows 0:10:26.720 --> 0:10:30.280 around and end up not buying something, and that is 0:10:30.320 --> 0:10:33.400 such a huge problem, Like around ninety eight percent of 0:10:33.440 --> 0:10:36.600 shopers coming to a site does not end up buying something. 0:10:37.120 --> 0:10:42.760 So Bold is simplifying that process and make it efficient 0:10:43.040 --> 0:10:46.360 so more people coming to the site end up buying. 0:10:47.440 --> 0:10:50.200 How many retailers at this point use Bold? 0:10:51.800 --> 0:10:54.839 We have hundreds of retailers using Bolt, and if you 0:10:54.880 --> 0:10:58.000 look at the last year, we historically have been very 0:10:58.000 --> 0:11:01.360 focused on small and medium business and we introduced our 0:11:01.600 --> 0:11:05.640 enterprise product last year, So now we have very large 0:11:05.800 --> 0:11:12.160 enterprise retailers using our product. For example, Revolve they start 0:11:12.280 --> 0:11:15.640 using Bolt last year. I worked closely with their leaders. 0:11:15.880 --> 0:11:20.000 They introduced both and they saw a four percent increase 0:11:20.040 --> 0:11:22.400 on revenue just after turning off Bolt. 0:11:24.240 --> 0:11:27.760 So we know that AI is all the hype right 0:11:27.800 --> 0:11:31.280 now in so many different industries that it touches. What 0:11:31.400 --> 0:11:34.720 is it particularly about AI that you think can be 0:11:34.880 --> 0:11:38.320 used to solve the friction between the issues when it 0:11:38.360 --> 0:11:40.840 comes to shoppers that might be abandoning some of their 0:11:40.880 --> 0:11:43.240 cards and the retailers on the other side that are 0:11:43.280 --> 0:11:45.240 trying to build some of that brand loyalty. 0:11:46.480 --> 0:11:49.800 Yeah, AI, as you can hear from the industry, there's 0:11:49.840 --> 0:11:53.520 a lot of progress happening from a technology perspective, and 0:11:54.160 --> 0:11:57.679 commerce E commerce especially is a great place to get 0:11:57.960 --> 0:11:59.439 a ton of value. 0:11:59.120 --> 0:12:01.240 From the A side. 0:12:01.920 --> 0:12:04.480 First and foremost, you think about if you can recognize 0:12:04.520 --> 0:12:07.360 a shopper the minute they come to your website, and 0:12:07.400 --> 0:12:10.400 if you can recognize them, can you provide a very 0:12:10.480 --> 0:12:15.840 personalized experience for that shopper and make great recommendations? And 0:12:15.920 --> 0:12:18.880 once you decide to buy something, can we make that 0:12:18.920 --> 0:12:22.760 buying process very easy and simple, avoid any kind of 0:12:22.760 --> 0:12:27.040 fraudulent charges, and make that whole process complete. So from 0:12:27.040 --> 0:12:30.680 a bold perspective, what we are looking at is the 0:12:30.800 --> 0:12:36.000 root of making all those things possible is knowing the person, like, 0:12:36.040 --> 0:12:38.679 can we identify the shopper so you can provide all 0:12:38.720 --> 0:12:42.120 this great experience. So what we are focused on both 0:12:42.360 --> 0:12:47.600 is creating this large shopper network that we can track 0:12:47.640 --> 0:12:52.280 the shoppers across different brands, especially the large brands and 0:12:53.080 --> 0:12:56.200 help the brands to identify them so they can provide 0:12:56.200 --> 0:13:00.079 this great personalized experience using the power of AI and 0:13:00.320 --> 0:13:02.960 maintain a lifelong relationship with well. 0:13:02.960 --> 0:13:07.240 I understand you just recently hired a new president new 0:13:07.280 --> 0:13:12.679 CTO and you have some new big tech initiatives for 0:13:12.800 --> 0:13:15.880 e commerce for checkout kind of in the lineup. Can 0:13:15.880 --> 0:13:17.400 you talk to me about what you're trying to do 0:13:17.440 --> 0:13:18.400 that you weren't doing before. 0:13:19.600 --> 0:13:22.960 Yeah. So, as we moved into the large enterprise retailers, 0:13:23.160 --> 0:13:26.240 what we realized is, you know, helping people at the 0:13:26.640 --> 0:13:31.400 checkout is great, but recognizing the shopper throughout their shopping 0:13:31.480 --> 0:13:34.160 journey is so important. So we are looking at the 0:13:34.360 --> 0:13:37.679 identity for e commerce across the board and using that 0:13:37.800 --> 0:13:42.600 identity to power the new capabilities like AI. So as 0:13:42.640 --> 0:13:45.360 we were looking at the new roadmap and technology, it 0:13:46.120 --> 0:13:49.040 was important to bring in like people who have done 0:13:49.120 --> 0:13:52.160 this before and have a ton of experience. So couldn't 0:13:52.200 --> 0:13:56.360 find anyone better than cal Rahman, who drove a lot 0:13:56.400 --> 0:13:59.319 of airly growth that Amazon and Walmart when they were 0:13:59.320 --> 0:14:02.360 trying to get into e commerce, and he is going 0:14:02.400 --> 0:14:06.199 to help us drive our vision forward on building one 0:14:06.200 --> 0:14:10.280 of the largest shopper network for e commerce, and then 0:14:10.600 --> 0:14:13.720 building that identity platform which will power all the AI 0:14:13.800 --> 0:14:15.720 capabilities for the commerce world. 0:14:16.200 --> 0:14:20.320 Whenever you're tracking this, are you able to pull shopping 0:14:20.400 --> 0:14:24.440 behavior in a sense to see how Americans are spending? 0:14:26.400 --> 0:14:29.400 I mean, because we are able to see the actual 0:14:29.520 --> 0:14:32.000 shopping as well as their buying behavior. We are able 0:14:32.040 --> 0:14:34.280 to see a lot of data that allow us to 0:14:34.280 --> 0:14:36.200 see some of the trends and. 0:14:36.360 --> 0:14:39.200 What I'm curious about though, the reason I ask I 0:14:39.240 --> 0:14:40.960 want to know what do you think that tells us 0:14:41.320 --> 0:14:45.040 about the economy? Because so many people talking about the 0:14:45.040 --> 0:14:47.320 consumer and what it means and looking forward and they're 0:14:47.320 --> 0:14:49.400 thinking there's going to be a pullback. Are you actually 0:14:49.480 --> 0:14:50.200 seeing any of that? 0:14:51.680 --> 0:14:56.080 Well, even with all the views on how things can 0:14:56.120 --> 0:14:58.239 go down, what we're seeing is there is a continuous 0:14:58.400 --> 0:15:02.840 improvement on the e commerce side. Like you, there is 0:15:02.880 --> 0:15:05.800 more sales, but the price is increasing. Now the question 0:15:05.920 --> 0:15:08.720 is is a more sale coming from the increase in 0:15:08.840 --> 0:15:11.920 price or is it more people are buying. And when 0:15:11.960 --> 0:15:14.760 we look through the details, what we find is it's 0:15:14.840 --> 0:15:19.240 more sector based or category based. In certain categories people 0:15:19.280 --> 0:15:22.680 are dropping more, while some categories they are seeing less 0:15:22.680 --> 0:15:25.880 than what they saw during the pandemic peak. But one 0:15:25.920 --> 0:15:30.000 thing is very clear is consumers are still focused on 0:15:30.240 --> 0:15:33.440 deals and discounts. So there is a real high focus 0:15:33.560 --> 0:15:37.160 on that, and so the retailers who are able to 0:15:37.840 --> 0:15:41.560 meet understand that consumer behavior and provide them very targeted 0:15:41.600 --> 0:15:47.000 response or deals are seeing obviously a much higher volume 0:15:47.640 --> 0:15:48.240 than others. 0:15:49.320 --> 0:15:50.880 Can I can ask you a little bit about just 0:15:50.880 --> 0:15:54.240 what it's like being a techt startup at a tech 0:15:54.280 --> 0:15:58.720 startup right now, what are you seeing in terms of well, 0:15:58.760 --> 0:16:02.920 it's been a difficult year or two probably what are 0:16:02.920 --> 0:16:04.720 you seeing now? Just give me a lay of the 0:16:04.760 --> 0:16:08.120 land as someone who's had to deal with a tight 0:16:08.200 --> 0:16:11.760 labor market but also potentially had to lay people off 0:16:11.760 --> 0:16:12.280 in the past. 0:16:13.880 --> 0:16:16.400 I mean, it's a little bit about you back to 0:16:16.440 --> 0:16:20.520 the basics on how do you define and find sustainable 0:16:20.560 --> 0:16:23.160 growth and how can you have unit economics when you 0:16:23.280 --> 0:16:28.240 drive that growth, So really focusing on where that growth 0:16:28.280 --> 0:16:31.280 coming from. For example, for both, we found that our 0:16:31.320 --> 0:16:34.840 growth is coming from our new enterprise product helping our brands, 0:16:35.120 --> 0:16:38.440 and we found immediate market success on that product. And 0:16:38.480 --> 0:16:41.920 hence I mentioned about the Revolve case study, clearly demonstrating 0:16:41.920 --> 0:16:45.560 our products are working so we had to prioritize. We 0:16:45.600 --> 0:16:48.160 had to shift our priorities to things that are really 0:16:48.200 --> 0:16:51.320 working and clicking in the market, and then deprioritize the 0:16:51.360 --> 0:16:54.359 things that didn't really yield the results. 0:16:54.000 --> 0:16:54.600 What we thought. 0:16:55.120 --> 0:16:58.440 And then it comes to like having the right people 0:16:58.480 --> 0:17:01.600 and the right talent around YouTube right that vision forward, 0:17:02.120 --> 0:17:04.960 and it all comes at the bottom line is and 0:17:05.119 --> 0:17:07.720 I spend an enormous amount of time to work closely 0:17:07.760 --> 0:17:10.879 with the customers and really understanding what matters to them, 0:17:10.920 --> 0:17:13.239 what are some of the top problems they have, and 0:17:13.280 --> 0:17:16.440 then aligning our product roadmap so we can work closely 0:17:16.480 --> 0:17:19.960 with them and deliver results for them that is what 0:17:20.119 --> 0:17:21.840 they are looking as. 0:17:22.640 --> 0:17:25.960 So we only have about a minute left, But what's 0:17:26.000 --> 0:17:29.399 your view on sort of the future of AI and 0:17:29.440 --> 0:17:31.800 how it impacts this business. 0:17:33.119 --> 0:17:36.359 I mean, there are you know, few two top things 0:17:36.359 --> 0:17:38.720 that a lot of retailers top of mind for retailers, 0:17:38.760 --> 0:17:42.840 one is root turns and one is like omni channel, 0:17:42.920 --> 0:17:45.720 Like a lot of people are buying online and picking 0:17:45.800 --> 0:17:49.600 up at store, and so when I think of AI, 0:17:49.800 --> 0:17:52.919 there are very tactical applications on like if you know 0:17:52.960 --> 0:17:55.879 the consumer, if you know their behavior, how can you 0:17:56.000 --> 0:17:59.360 help reduce some of the return problems, or how can 0:17:59.440 --> 0:18:03.159 you target and your customers better at a very deeper 0:18:03.240 --> 0:18:06.199 level so you can understand how much they are buying online, 0:18:06.200 --> 0:18:08.680 how much they're on a pick from store, and then 0:18:08.840 --> 0:18:13.639 providing them very targeted experience from that. But a common 0:18:13.680 --> 0:18:16.840 component if you look at both of this is knowing 0:18:16.880 --> 0:18:20.560 the consumer. So to do any kind of personalization, you 0:18:20.640 --> 0:18:23.800 got to know the person, and so at both we 0:18:23.960 --> 0:18:28.280 really focused on knowing that person, building a consumer network, 0:18:28.600 --> 0:18:33.439 and then empowering the data to bring some of that 0:18:33.520 --> 0:18:35.400 AI capability for retailers. 0:18:35.720 --> 0:18:40.800 All Right, Madu Curravilla, CEO of payments company Bolt, joining 0:18:40.880 --> 0:18:43.520 us to talk about how AI can help the challenges 0:18:43.600 --> 0:18:47.080 facing the e commerce world. Always a pleasure speaking with you, 0:18:47.119 --> 0:18:49.000 and thank you so much for being back with us. 0:18:49.000 --> 0:18:51.880 But really interesting conversation someone, especially when you think about 0:18:51.880 --> 0:18:54.080 what we were talking about when it comes to us 0:18:54.200 --> 0:19:00.000 leaving some of our favorite items there in our shopping carts. 0:19:00.000 --> 0:19:03.480 Listening to the Bloomberg Business Week podcast catch us live 0:19:03.560 --> 0:19:07.240 weekday afternoons from three to six Easter on Bloomberg Radio, 0:19:07.440 --> 0:19:10.720 the Bloomberg Business app, and YouTube. You can also listen 0:19:10.800 --> 0:19:13.920 live on Amazon Alexa from our flagship New York station, 0:19:14.359 --> 0:19:17.159 just say Alexa playing Bloomberg eleven thirty. 0:19:18.840 --> 0:19:22.719 Well, the COVID nineteen pandemic may be over, but unfortunately 0:19:22.760 --> 0:19:26.320 the virus hasn't vanished. Earlier this week, the CDC signed 0:19:26.359 --> 0:19:29.840 off on new vaccines from Maderna and Pfizer Beyond Tech 0:19:30.000 --> 0:19:33.520 for people ages six months in older. Major pharmacies, including 0:19:33.560 --> 0:19:37.720 CBS and Walgreens are already offering appointments for it. Jess, 0:19:37.960 --> 0:19:40.720 you you haven't gotten a vaccine in a while, have you. 0:19:40.840 --> 0:19:42.800 It's been a little bit, but I definitely have gotten 0:19:42.800 --> 0:19:45.760 probably at least four or five when you conclude all 0:19:45.800 --> 0:19:47.720 of the boosters. But I feel like it's time for 0:19:47.800 --> 0:19:49.800 another booster soon as well as a flu shot. 0:19:50.560 --> 0:19:53.400 Well that is the question, and we have doctor Ian 0:19:53.440 --> 0:19:57.120 las Bader, a clinical professor of medicine at NYU Langgone, 0:19:57.600 --> 0:20:01.040 joining us to explain. So, so, doctor, you know, the 0:20:01.040 --> 0:20:04.600 CDC recommended, and I'm quoting here, everyone six months and 0:20:04.640 --> 0:20:08.960 older get an updated COVID nineteen vaccine for the sake 0:20:09.000 --> 0:20:13.720 of hypothetical. Say you're young, healthy and maybe thirty something, 0:20:13.960 --> 0:20:16.399 and you know got some shots, all the shots that 0:20:16.480 --> 0:20:19.000 you needed two three years back. Does this mean you 0:20:19.000 --> 0:20:20.080 have to get another vaccine. 0:20:20.080 --> 0:20:24.440 Now, great question. You know, all of this is coming 0:20:24.520 --> 0:20:27.320 up because we are seeing a sort of a mini 0:20:27.320 --> 0:20:30.040 surgeon increase in the prevalence. You know, really over the 0:20:30.119 --> 0:20:33.919 last six months of COVID, slight increase in hospitalizations, but 0:20:34.000 --> 0:20:38.000 the good news is slightly decrease depths from COVID. So 0:20:38.800 --> 0:20:43.280 to your question, the majority of people in the United States, 0:20:43.400 --> 0:20:46.199 either because they've had COVID, whether they knew it or not, 0:20:47.680 --> 0:20:51.280 and or because they got vaccinated, have the antibodies and 0:20:51.359 --> 0:20:55.879 probably T cells, which really explains why we're seeing perhaps 0:20:55.960 --> 0:20:59.919 really a decreased death rate. So although the CDC did 0:21:00.200 --> 0:21:04.000 advice or did suggest that over six months of age 0:21:04.600 --> 0:21:09.199 would be appropriate, many other countries really are saying they 0:21:09.200 --> 0:21:12.520 should be targeted to specific groups, like over sixty five. 0:21:13.160 --> 0:21:16.679 And as also you're eluding, because we do see some 0:21:18.080 --> 0:21:22.640 side effects, some adverse effects that are not tiny. Perhaps 0:21:22.680 --> 0:21:26.919 the question is should we target the populations And I 0:21:26.920 --> 0:21:33.040 think everyone agrees above sixty five lung disease, pregnant women, 0:21:33.240 --> 0:21:37.400 you know, people who have compromised states. Definitely young healthy 0:21:37.440 --> 0:21:42.800 women such as Simon and Jets or we think healthy 0:21:43.840 --> 0:21:46.760 and certainly young men where we do see an increased 0:21:46.840 --> 0:21:50.760 incidence of myocarditis and some other side effects. They may 0:21:50.840 --> 0:21:55.080 not really need this as a priority. Certainly, again just 0:21:55.119 --> 0:21:59.520 for that older age group, certainly over sixty the RTSV 0:21:59.600 --> 0:22:04.520 vaccine respiratory and social virus very common cause of hospitalization 0:22:04.760 --> 0:22:10.239 and morbidity. The new vaccine recommended flu shot. You know, 0:22:10.320 --> 0:22:12.919 the efficacy varies year to year. Some years they hit 0:22:12.960 --> 0:22:15.919 it right, some years it doesn't work so well. But 0:22:16.080 --> 0:22:19.159 certainly that seems to be safe and reasonably effective. You know, 0:22:19.240 --> 0:22:23.119 a low incidence of side effects. But answer your question directly, 0:22:24.600 --> 0:22:27.080 if you've had COVID or if you've had a vaccine, 0:22:27.440 --> 0:22:32.720 the benefit of this new XBB variant, which was kind 0:22:32.760 --> 0:22:36.840 of the formula that was developed, is really sort of 0:22:36.880 --> 0:22:39.960 an older variant. We've had a lot more variant since then. 0:22:40.520 --> 0:22:43.960