WEBVTT - Tech Stocks Flirt With Worst Week Since 2022 0:00:02.440 --> 0:00:08.960 Bloomberg Audio Studios, Podcasts, radio news from. 0:00:08.800 --> 0:00:13.360 Mark Hard We're Innovation, Money and Power Collie in Silicon. 0:00:12.960 --> 0:00:13.840 Valley, NBN. 0:00:14.160 --> 0:00:17.440 This is Bloomberg Technology with Caroline Hyde and. 0:00:17.640 --> 0:00:18.480 Ed Love Love. 0:00:32.080 --> 0:00:34.440 Live from New York and San Francisco. This is Bloomberg 0:00:34.479 --> 0:00:39.400 Technology Broadcom. It's falling hard after a disappointing forecast despite 0:00:39.560 --> 0:00:41.519 robust demands for AI products. 0:00:42.040 --> 0:00:44.760 Tech stocks flirting with their worst week since twenty twenty 0:00:44.800 --> 0:00:47.680 two ahead of Apple's big launch event, and the. 0:00:47.640 --> 0:00:51.080 White House is targeting China again, planning a fresh round 0:00:51.120 --> 0:00:54.360 of chip related export controls. We discussed, but first we 0:00:54.480 --> 0:00:57.560 have some macro breaking news from the Federal Reserve and 0:00:57.600 --> 0:01:00.760 the Mann To bring us the details is one McKee Bluemost, 0:01:00.800 --> 0:01:04.360 Chief International Economic Suppose, the correspondent coming from FED speak. 0:01:04.680 --> 0:01:07.240 Well, this is what everybody's been waiting for all day. 0:01:07.520 --> 0:01:10.200 The job's number comes in at one forty two and 0:01:10.360 --> 0:01:12.840 unemployment falls back to four point two. What will the 0:01:12.880 --> 0:01:15.360 Fed do fifty or twenty five? We get a hint 0:01:15.400 --> 0:01:18.360 from Chris Waller, the Federal Reserve governor, often seen as 0:01:18.440 --> 0:01:22.840 the leading guide to FED activity, and he says today's 0:01:22.920 --> 0:01:26.600 data show it's time to cut rates. Determining the pace 0:01:26.640 --> 0:01:29.480 of rate cuts and ultimately the total reduction in the 0:01:29.480 --> 0:01:32.880 policy rate are decisions that lie in the future. As 0:01:32.920 --> 0:01:35.640 of today, I believe it is important to start the 0:01:35.720 --> 0:01:39.600 rate cutting process at our next meeting. If subsequent data 0:01:39.600 --> 0:01:43.360 show a significant deterioration in the labor market, the FOMC 0:01:43.480 --> 0:01:48.280 can act quickly and forcefully to adjust monetary policy. Now, 0:01:48.360 --> 0:01:51.040 while Waller says we are not in recession and it 0:01:51.080 --> 0:01:53.760 doesn't necessarily look like we are going into recession, the 0:01:53.800 --> 0:01:56.760 economy looks pretty strong. He says the risks are now 0:01:56.880 --> 0:02:01.960 tilted towards the downside on growth, Inflation has gotten better. 0:02:02.280 --> 0:02:04.720 He doesn't say whether it'll be fifty or twenty five, 0:02:04.760 --> 0:02:08.200 but says that's a decision that's coming up team. 0:02:08.240 --> 0:02:10.240 Once we get through the yield, show me the Nasdaq 0:02:10.280 --> 0:02:12.400 one hundred, or show me the S and P five hundred, 0:02:12.400 --> 0:02:15.000 and let's show our audience that the market's kind of 0:02:15.040 --> 0:02:18.399 changed direction on those headlines. Mike, I want to read 0:02:18.440 --> 0:02:20.280 one specific bit back to you, which is the current 0:02:20.280 --> 0:02:24.040 batch of data no longer requires patients. It requires action, 0:02:24.800 --> 0:02:27.400 but there's no size and scope to what action means. 0:02:27.440 --> 0:02:31.360 We don't have a basis points number do we. 0:02:30.720 --> 0:02:32.360 We don't, And that's a little bit odd. 0:02:32.440 --> 0:02:35.000 And in the sense that Chris Waller goes on to 0:02:35.160 --> 0:02:39.280 say that he was an advocate of front loading rate 0:02:39.400 --> 0:02:43.120 increases when inflation went up, and if the data supported 0:02:43.520 --> 0:02:46.840 he would be an advocate of front loading rate cuts. 0:02:47.760 --> 0:02:49.160 What data is he talking about. 0:02:49.160 --> 0:02:51.760 We really don't get much more before the next FED meeting, 0:02:51.880 --> 0:02:54.520 So I'm not sure why he wasn't more specific, other 0:02:54.600 --> 0:02:57.160 than perhaps he doesn't want the markets to get ahead 0:02:57.160 --> 0:02:58.200 of themselves in pricing. 0:02:59.160 --> 0:03:03.160 That's what markets do. They get ahead before dugging. Michael McKee, 0:03:03.440 --> 0:03:05.800 just brilliant to have you on this market moving story. 0:03:05.840 --> 0:03:09.160 We appreciate it. Let's get analysis from the market. Shannon 0:03:09.200 --> 0:03:12.240 Sicil is with us for more, CEO of Bannery and 0:03:12.280 --> 0:03:16.320 Capital Management, which helps independent advisors with alternative investing options. 0:03:16.520 --> 0:03:19.400 And currently you've got four billion dollars under advice. And 0:03:19.919 --> 0:03:23.320 I'm really interested into ultimately how much macro the FED 0:03:23.800 --> 0:03:27.280 is guiding investment choices right now, or how much you 0:03:27.360 --> 0:03:31.480 can think about AI and productivity and technology still winning out. 0:03:32.560 --> 0:03:35.040 So I think you've got to think of those things 0:03:35.080 --> 0:03:40.000 in two separate ways. Right there is the current economic 0:03:40.200 --> 0:03:45.760 environment in which the FED has been tightening, They've been 0:03:45.840 --> 0:03:48.200 raising rates for a while, they've tried to get inflation 0:03:48.440 --> 0:03:53.760 under control. The ramifications of that is that it softens 0:03:53.880 --> 0:03:58.000 labor markets, it slows growth. The goal, of course, is 0:03:58.040 --> 0:04:02.640 for it to slow growth, not growth go negative, and 0:04:02.680 --> 0:04:05.840 we're seeing that kind of play out because it's more 0:04:05.880 --> 0:04:10.160 expensive to borrow money in the capital markets are reacting accordingly. 0:04:10.880 --> 0:04:15.120 You can think of that as the current environment and 0:04:15.280 --> 0:04:22.279 still believe that technology trends like AI win longer term. 0:04:23.160 --> 0:04:26.160 And it doesn't change the fact that companies, when they 0:04:26.240 --> 0:04:28.920 look at where they're going to deploy capital and where 0:04:28.960 --> 0:04:31.400 the opportunities lies, are going to do it in the 0:04:31.480 --> 0:04:35.080 places they think they need to develop in order to 0:04:35.120 --> 0:04:39.400 compete going forward. And so as they make those capital 0:04:39.440 --> 0:04:43.480 deployment decisions, they are looking at things like AI, which 0:04:43.520 --> 0:04:46.719 is the number one thing that they need to be 0:04:46.800 --> 0:04:51.000 considering to continue to stay competitive. A great example is Apple, Right, 0:04:52.360 --> 0:04:56.760 everybody was down on the stock prior to their announcements 0:04:56.800 --> 0:04:59.640 of how they were going to be incorporating AI into 0:05:00.160 --> 0:05:06.159 their iPhone platform and into their other devices. Right before that, 0:05:06.320 --> 0:05:08.159 everybody was like, oh, there behind the eight. 0:05:08.000 --> 0:05:09.760 Ball shown on the stock. 0:05:09.600 --> 0:05:12.200 Hurt let me jump in there, and I'm sorry to 0:05:12.200 --> 0:05:13.719 cut you off. I actually want to continue with some 0:05:13.760 --> 0:05:17.120 of the real time reaction to those fed wallheadlines. One 0:05:17.160 --> 0:05:20.560 of the alternatives that you track closely is bitcoin, right, 0:05:20.640 --> 0:05:23.760 And when we got the jobs numbers, bitcoin jumped and 0:05:23.920 --> 0:05:26.920 was in positive territory for much of the session. Going 0:05:27.000 --> 0:05:29.880 into those fed wallheadlines at the top of the eleven 0:05:29.880 --> 0:05:32.760 east an hour, it was markedly lower, about two and 0:05:32.760 --> 0:05:33.440 a half percent. 0:05:33.520 --> 0:05:34.840 It came off that a little bit. 0:05:35.440 --> 0:05:38.640 Use that case study of one single session to explain 0:05:38.680 --> 0:05:40.960 why you track bitcoin so closely for your clients. 0:05:42.200 --> 0:05:46.839 So again we think bitcoin is using or even ease 0:05:46.960 --> 0:05:51.320 it's crypto in general. Art right are taking advantage of 0:05:51.360 --> 0:05:53.279 a technology of the future in blockchain. 0:05:53.800 --> 0:05:55.360 You know, blockchain is. 0:05:55.320 --> 0:05:59.960 A protocol, and we've seen the revolutions of protocols throughout 0:06:00.040 --> 0:06:03.599 out the history of the Internet. You know, everything from 0:06:04.040 --> 0:06:08.800 voiceover Internet protocol to HGTP is a protocol, like these 0:06:08.800 --> 0:06:09.760 are all protocols. 0:06:09.880 --> 0:06:11.120 Blockchain is a protocol. 0:06:11.160 --> 0:06:16.039 Bitcoin works on that protocol, and that is a future 0:06:16.120 --> 0:06:18.640 technology that we believe will be great. 0:06:18.839 --> 0:06:20.320 You know, more largely adopted. 0:06:20.760 --> 0:06:24.560 What we saw in the short term reaction to information 0:06:25.000 --> 0:06:27.920 had more to do with a risk on risk off trade, 0:06:28.080 --> 0:06:31.160 not necessarily the adoption of the protocol. So you can 0:06:31.240 --> 0:06:33.880 believe two things at once. This is the difference between 0:06:33.920 --> 0:06:36.360 a trader and a long term investor. Right, you can 0:06:36.440 --> 0:06:38.520 believe that in the short term you're going to have 0:06:39.600 --> 0:06:44.279 the market movements that you can profit from, and you 0:06:44.320 --> 0:06:47.440 can also believe that, I don't care about what happens 0:06:47.440 --> 0:06:51.159 on one individual day, but the longer term trend wins 0:06:51.160 --> 0:06:52.160 out in the long term. 0:06:52.640 --> 0:06:55.320 That's what happening when we're looking at the likes a 0:06:55.440 --> 0:06:58.800 Broadcom today or in video last week, that it's the 0:06:58.880 --> 0:07:02.680 trading that said them so much lower on actually pretty 0:07:02.720 --> 0:07:06.560 fundamentally decent numbers in the long term, but they disappoint 0:07:06.600 --> 0:07:08.760 because expectations have run so far so fast. 0:07:09.600 --> 0:07:13.440 It's exactly right now. There's two different type of analysis 0:07:13.480 --> 0:07:17.320 in finance, right, there's technical and there's fundamental. So the 0:07:17.520 --> 0:07:21.600 fundamentals remain strong, but the technicals broke down, and the 0:07:21.680 --> 0:07:24.720 technicals drive a lot of the algorithms that move the 0:07:24.760 --> 0:07:28.040 markets these days, and so that's why you can see 0:07:28.080 --> 0:07:31.920 these short term price dislocations that occur even though fundamental 0:07:31.960 --> 0:07:35.640 information and the actual company itself is in good shape. 0:07:36.680 --> 0:07:39.840 Seana, you stated the line that I've been using all week, 0:07:39.880 --> 0:07:43.360 which effectively is one session a market does not make. 0:07:43.800 --> 0:07:46.520 But I just want to stick with what's happening right now. 0:07:46.600 --> 0:07:50.680 You know, we had that statement from Waller, you know, 0:07:51.240 --> 0:07:54.680 tie it all together the post mortem of Nvidia, what 0:07:54.720 --> 0:07:57.400 the expectation of what the FED will or won't do 0:07:57.520 --> 0:08:00.000 this month is, and where you go from here. 0:08:01.560 --> 0:08:05.200 So the post mortem of in Vidia is that in 0:08:05.400 --> 0:08:08.560 Vidia is a great company doing great things, and that 0:08:08.680 --> 0:08:14.000 has really attractive growth, just not the attractive growth that 0:08:14.080 --> 0:08:15.080 they had before. 0:08:15.200 --> 0:08:18.600 So when you were experienced in three four hundred percent 0:08:18.680 --> 0:08:21.880 increases in revenue and you fall to one hundred and fifty, 0:08:21.920 --> 0:08:25.800 that is a decline in your earnings momentum, but it's 0:08:25.840 --> 0:08:28.520 still one hundred and fifty percent increase in your revenue. 0:08:29.200 --> 0:08:33.240 And so overall, as a long term holder of in Video, personally, 0:08:33.880 --> 0:08:36.360 I believe that the stock wins in the long term. 0:08:36.360 --> 0:08:38.880 I follow the stock forever and the short term, what 0:08:38.920 --> 0:08:44.440 you're seeing is that disappointment and the stock coming back 0:08:44.600 --> 0:08:48.520 to reflect more closely, it's fundamentals when you start to 0:08:48.559 --> 0:08:50.360 look at price to earnings and things of that nature. 0:08:50.640 --> 0:08:53.200 So post mortem, I think long term and vida good 0:08:53.280 --> 0:08:56.120 short term would probably have some volatility in terms of 0:08:56.200 --> 0:08:59.960 the FED and what happens next. I think today's data 0:09:00.160 --> 0:09:02.880 and the comments that came from Waller suggests that the 0:09:03.000 --> 0:09:07.160 FED is still in line to make a rate cut 0:09:07.679 --> 0:09:10.400 this month, and it will be the first of many. 0:09:10.520 --> 0:09:13.400 And the question really becomes how big will that ratecut be? 0:09:13.920 --> 0:09:16.560 And there was nothing that came out in today's data 0:09:16.679 --> 0:09:18.959 that suggests that it should be anything more than twenty 0:09:18.960 --> 0:09:20.560 five basis points in my opinion. 0:09:21.600 --> 0:09:23.640 Shanna Sisters CEOBE, you messed up? 0:09:23.880 --> 0:09:25.840 Did I miss another question you asked? 0:09:26.160 --> 0:09:26.840 I think you have no? 0:09:27.240 --> 0:09:29.320 I mean, my goodness, you took what I asked and 0:09:29.360 --> 0:09:31.720 you really ran with it. We appreciate it. Shanna Sissl's 0:09:31.760 --> 0:09:34.760 CEO of Bandary and Capital Management, Thank you very much. 0:09:43.200 --> 0:09:46.400 Docu sign shares up in today's trading after the signature 0:09:46.400 --> 0:09:49.959 company reported second quarter results, posting revenue of seven hundred 0:09:49.960 --> 0:09:53.520 and thirty six million dollars billings growth of two percent. 0:09:53.600 --> 0:09:56.600 But it's margins where a lot of the streets focuses. 0:09:56.679 --> 0:09:59.960 Let's bring in doc you sign CEO Alan Tigerson, who 0:10:00.080 --> 0:10:03.080 here in San Francisco with me. I just want the story, 0:10:03.320 --> 0:10:06.680 the DOCU signed story, right. I think historically you've beat 0:10:06.760 --> 0:10:09.920 the market's expectations on billings, and so everyone was very excited. 0:10:10.120 --> 0:10:14.120 They're a little concerned on that. The story behind billings growth. 0:10:14.320 --> 0:10:15.480 Well, you know, so. 0:10:15.480 --> 0:10:17.120 When I joined a little out of two years ago, 0:10:17.400 --> 0:10:20.000 I think there were three questions. One, could we stabilize 0:10:20.000 --> 0:10:23.000 the business, could we become more efficient? And then could 0:10:23.000 --> 0:10:25.959 we develop our next chapter? And so this quarter I 0:10:26.000 --> 0:10:28.040 think is a nice milestone. I think we have really 0:10:28.080 --> 0:10:31.080 stabilized the business. We've made the business much more efficient, 0:10:31.160 --> 0:10:34.160 the profitability as you mentioned, and we are now poised, 0:10:34.200 --> 0:10:37.760 I think for growth. We've launched our new product line, 0:10:37.760 --> 0:10:40.200 which is much broader than the signature that everyone's so 0:10:40.240 --> 0:10:43.720 familiar with, and we saw some early, very positive results 0:10:43.720 --> 0:10:46.920 this quarter. It's still early, but we're very encouraging. 0:10:46.720 --> 0:10:51.000 Dig into those positive results. AI Infused. We're thinking about 0:10:51.080 --> 0:10:54.720 broadening out from contracts. How is it working for the 0:10:54.720 --> 0:10:55.600 companies that use it? 0:10:57.000 --> 0:11:01.000 Yes, So we launched it to North American commercial customers 0:11:01.720 --> 0:11:04.640 and we've had a number of folks that have not 0:11:04.679 --> 0:11:08.280 only ordered, but deployed, and the early results are really good. 0:11:08.640 --> 0:11:10.880 You see, what they're saying is They love the fact 0:11:10.920 --> 0:11:13.280 that we can ingest all of their agreements and give 0:11:13.320 --> 0:11:16.800 them immediate insight into every contract that they have. And 0:11:16.880 --> 0:11:19.200 this is valuable for every role in the company. Whether 0:11:19.240 --> 0:11:22.720 you're a CFO or a frontline seller or purchasing agent 0:11:22.800 --> 0:11:25.640 or an HR recruiter. You want to know the agreements 0:11:25.679 --> 0:11:27.880 that are relevant to you, what are the essential terms, 0:11:28.800 --> 0:11:30.880 and how are things going. And that's what we provide, 0:11:30.920 --> 0:11:33.040 and we can do that fairly instantaneously. 0:11:33.160 --> 0:11:35.959 When you have an AI enabled product, or a product 0:11:36.040 --> 0:11:39.400 is made more valuable by AI, it's usually required an 0:11:39.400 --> 0:11:43.240 investment on the talent side or the compute side. What 0:11:43.360 --> 0:11:45.760 can you tell me and your investors and the audience 0:11:45.880 --> 0:11:48.240 convince us that that investment is paying off fully? 0:11:48.679 --> 0:11:52.319 Yeah, well, so as if you look at our past 0:11:52.320 --> 0:11:54.760 performance here, we've been doing AI for a long time. 0:11:54.800 --> 0:11:58.280 We've had AI embedded our products since before the allms 0:11:58.320 --> 0:12:01.080 came out, and that's been feature that we've embedded as 0:12:01.080 --> 0:12:03.840 well as charged separately for. But obviously with the advent 0:12:03.880 --> 0:12:05.800 of these new models, we were able to take a 0:12:05.960 --> 0:12:10.000 significantly forward. And the feature that I just described is 0:12:10.040 --> 0:12:15.000 AIAI enabled so we take your contract data, run it 0:12:15.040 --> 0:12:17.600 through some of these models, score them and then give 0:12:17.640 --> 0:12:20.200 you back the central data about your agreements, and we 0:12:20.240 --> 0:12:23.319 could do that in a very lightweight, instantaneous way. From 0:12:23.360 --> 0:12:26.440 an investment perspective, we have ramped up our investment in 0:12:26.520 --> 0:12:30.199 product and technology, and we are moving to the public cloud. 0:12:30.240 --> 0:12:32.679 We have a big partnership with Microsoft. But I think 0:12:32.720 --> 0:12:34.880 we're holding the line pretty well on expenses. We can 0:12:34.920 --> 0:12:36.960 do this efficiently, and of course the costs of AI 0:12:37.120 --> 0:12:39.760 continue to drop. The cost of processing and agreement has 0:12:39.800 --> 0:12:41.680 dropped tremendously to the last six months. 0:12:42.520 --> 0:12:44.760 We're looking at the moment at an interday, you're up 0:12:44.760 --> 0:12:47.440 three point seven percent. I look back over the five years. 0:12:47.960 --> 0:12:50.760 At one point your share price it clips three hundred, 0:12:51.400 --> 0:12:53.960 And I'm just wondering as to whether you think this AI, 0:12:54.000 --> 0:12:56.720 your foury, is ever going to infuse itself into the 0:12:56.760 --> 0:12:59.679 capitalization the market capitalization of your business once again on 0:13:00.040 --> 0:13:01.560 as the pandemic did once before. 0:13:02.559 --> 0:13:05.079 Well, I think you know those were days when doc 0:13:05.120 --> 0:13:07.920 time's growing at fifty sixty percent a year. So I 0:13:07.920 --> 0:13:10.120 don't know that we have a path to that yet. 0:13:11.559 --> 0:13:14.240 I certainly love that, but I'm not projecting that. I 0:13:14.280 --> 0:13:16.920 think for now we're setting ourselves a milestone and return 0:13:17.000 --> 0:13:18.720 to double digit profitable growth. 0:13:18.840 --> 0:13:19.800 I think we have a. 0:13:19.760 --> 0:13:23.560 Path to that, and the early signs here are encouraging, 0:13:24.400 --> 0:13:26.120 and we'll see how the market's response to that. We're 0:13:26.120 --> 0:13:29.000 obviously a much more profitable company now and operating at 0:13:29.000 --> 0:13:31.680 bigger scales, so I'm not going to predict where the 0:13:31.679 --> 0:13:34.520 market's going to value us, but we are really really 0:13:34.559 --> 0:13:35.800 pleased with the early progress here. 0:13:35.840 --> 0:13:36.439 It's very quickly. 0:13:36.440 --> 0:13:40.040 Something you just said, Alan, the cost of AI is dropping. 0:13:40.720 --> 0:13:42.679 I don't know that I've heard many people say that 0:13:42.840 --> 0:13:44.040 to me at least, what do you mean. 0:13:44.440 --> 0:13:46.800 Well, so, if you look at the efficiency of these 0:13:46.840 --> 0:13:50.800 models and the cost per item process, whether it's an 0:13:50.800 --> 0:13:53.480 image or an our case in agreement, the cost has 0:13:53.559 --> 0:13:56.760 dropped very significantly, by a couple orders of magnitude. With 0:13:56.880 --> 0:14:00.240 that said, obviously people are taking on more ambitious tasks, 0:14:00.280 --> 0:14:03.840 the models are getting larger, and so the compute costs 0:14:04.200 --> 0:14:06.800 for the large vendors, for example, the amount of capital 0:14:06.880 --> 0:14:08.839 investment they're making is going up and up. I think 0:14:08.840 --> 0:14:12.240 it's because of the expansiveness of the opportunity that they see. 0:14:12.840 --> 0:14:15.200 But I'm telling you, as a customer on a per 0:14:15.240 --> 0:14:18.480 item process perspective, costs of dropping very. 0:14:18.400 --> 0:14:22.200 Rapidly fascinating take. We thank you so much, doctor side 0:14:22.480 --> 0:14:25.880 An anti Guison for joining us. Now let's go elsewhere 0:14:25.880 --> 0:14:28.000 in the C suite. Shares of enterprise automation and AI 0:14:28.120 --> 0:14:31.320 software company UiPath that they're down in today's training following 0:14:31.320 --> 0:14:34.560 the software companies actually ten percent revenue growth results and 0:14:34.680 --> 0:14:37.920 a small upward revision and its recurring revenue forecast. That's 0:14:37.920 --> 0:14:41.000 amid a CEO transition and job cuts. AT's bringing UiPath 0:14:41.120 --> 0:14:45.320 CFO and COO Ashim Gutta for more. You're taking on 0:14:45.440 --> 0:14:48.720 more roles and responsibilities. We're seeing an investor base that 0:14:48.880 --> 0:14:52.160 wants certainty, that wants confidence in this period of change, 0:14:52.560 --> 0:14:55.400 you're showing execution. Can you give them that at the 0:14:55.440 --> 0:14:55.960 moment issue? 0:14:56.720 --> 0:14:58.600 Yeah, And I think this quarter was a good testament 0:14:58.680 --> 0:15:00.960 to that, Caroline. We beat our mental across the board 0:15:01.280 --> 0:15:04.040 from what we got into last quarter. We raised our 0:15:04.080 --> 0:15:07.320 overall operating margin and free cash flow by twenty five 0:15:07.400 --> 0:15:11.120 million dollars, which projects our confidence in our ability to 0:15:11.240 --> 0:15:15.080 execute both efficiently and at the same time with minimum 0:15:15.240 --> 0:15:17.400 distraction on the top line results that we're going to 0:15:17.440 --> 0:15:20.680 continue to drive. And then we've also executed well against 0:15:20.720 --> 0:15:24.440 our buyback. We increased our authorization for another five hundred 0:15:24.480 --> 0:15:27.640 million dollars, bringing to a billion dollars in total. I 0:15:27.680 --> 0:15:30.000 think that really projects the confidence that we have in 0:15:30.120 --> 0:15:32.880 the company and our ability to execute, and then that's 0:15:33.000 --> 0:15:36.200 translating well in the investor discussions that we've had today. 0:15:36.920 --> 0:15:40.400 What about executing against your competition A shame Your role 0:15:40.480 --> 0:15:45.160 before was with about customer excellence and look service now salesforce, 0:15:45.200 --> 0:15:48.280 they are rolling out AI agents, they're fueling productivity aims. 0:15:48.640 --> 0:15:52.360 I'm interested to seeing your ability to compete here. 0:15:53.400 --> 0:15:54.360 Yeah, it's a great question. 0:15:54.760 --> 0:15:57.000 We feel very good about actually our position and the 0:15:57.080 --> 0:16:02.200 execution of our field competing. We close the largest test 0:16:02.240 --> 0:16:04.880 automation deal in the history of the company in one 0:16:04.920 --> 0:16:08.320 of the world's largest tech companies. We've expanded our cloud 0:16:08.360 --> 0:16:12.120 platform significantly. You saw that cross almost eight hundred and 0:16:12.120 --> 0:16:15.720 fifty million dollars of arr now into our into our 0:16:15.800 --> 0:16:18.600 overall top line results. And when you look across our 0:16:18.680 --> 0:16:21.680 customer base, we've increased our customers greater than a million 0:16:21.760 --> 0:16:25.800 dollars by fifteen percent year over year, and that cohort 0:16:25.840 --> 0:16:28.240 of customers or customers greater than one hundred thousand and 0:16:28.280 --> 0:16:30.960 two a million is expanding at one hundred twenty percent. 0:16:31.280 --> 0:16:34.320 That shows that we're winning in the market. There's increased 0:16:34.360 --> 0:16:40.160 competition in personal productivity, you know, smaller ROI mundane tasks 0:16:40.240 --> 0:16:44.160 type automations. But where we're competing and where where we're 0:16:44.240 --> 0:16:48.680 winning is in large scale enterprise automations and where AI 0:16:48.840 --> 0:16:52.960 and automation come together. That is what customers want, and 0:16:53.160 --> 0:16:55.880 we are winning in those types of use cases, as 0:16:55.920 --> 0:16:58.240 evidenced by the demo that we actually provided in our 0:16:58.240 --> 0:17:00.880 earnings call that shows them do we can have with 0:17:01.040 --> 0:17:04.920 healthcare customers as the across the industry for a simple 0:17:05.040 --> 0:17:06.960 use case that can save them hundreds of millions of. 0:17:06.960 --> 0:17:09.320 Dollars A shame. 0:17:09.600 --> 0:17:12.560 Congratulations on being given a second job on top of 0:17:12.600 --> 0:17:15.400 the one you've already got, CFO and COO. 0:17:15.600 --> 0:17:17.040 Now, I actually want. 0:17:16.960 --> 0:17:18.560 To talk to you about saying I think we probably 0:17:18.600 --> 0:17:20.879 looked at earlier in the year, which is this bigger 0:17:20.960 --> 0:17:25.080 picture of license to subscription. There are lots of people 0:17:25.160 --> 0:17:28.159 that watch this program where that is something that they 0:17:28.160 --> 0:17:31.400 will confront each day because they either administer software agreements 0:17:31.520 --> 0:17:34.800 or whatever. Can you just extrapolate out from your earnings 0:17:34.840 --> 0:17:37.639 of what that trend looks like for you guys going forward. 0:17:38.800 --> 0:17:39.280 Yeah, when you. 0:17:39.359 --> 0:17:41.760 Look at our you know, we really look at our 0:17:41.840 --> 0:17:46.200 annual recurring revenue as akin to our subscription model, and 0:17:46.320 --> 0:17:49.480 that is growing nineteen percent at a billion five five 0:17:49.520 --> 0:17:52.080 of skill. So we really look at that as a 0:17:52.200 --> 0:17:54.720 very good indicator of where we are as a company 0:17:54.800 --> 0:17:57.600 and how customers look at us as a long. 0:17:57.520 --> 0:17:58.959 Term part of their architecture. 0:17:59.520 --> 0:18:01.639 The second piece is our net dollar expansion rate that 0:18:01.760 --> 0:18:03.679 is still at one hundred and fifteen percent at the. 0:18:03.680 --> 0:18:04.640 Scale that we're at. 0:18:05.160 --> 0:18:07.760 So when you look at you know, customers buying in 0:18:07.960 --> 0:18:12.160 not just for one time type project, but really subscribing 0:18:12.280 --> 0:18:16.040 to us, it's because we provide continuous and long term 0:18:16.160 --> 0:18:19.800 value in their enterprise processes. So as you extrapolate that 0:18:19.960 --> 0:18:22.719 forward and you say one hundred and fifteen percent net 0:18:22.760 --> 0:18:26.280 dollar expansion rate, continuing to launch new products such as 0:18:26.320 --> 0:18:31.080 Autopilot that is that brings natural language processing for automation 0:18:31.240 --> 0:18:34.280 developers and puts that in their hands, and expanding our 0:18:34.320 --> 0:18:37.720 platform into test automation, and continuing to drive more and 0:18:37.800 --> 0:18:39.200 more complicated use cases. 0:18:39.560 --> 0:18:42.160 We feel very good about the trajectory of that subscription 0:18:42.280 --> 0:18:42.840 model for US. 0:18:43.840 --> 0:18:45.879 A shame. How is your day to day going to 0:18:45.920 --> 0:18:47.920 be different now that you so as well? 0:18:48.840 --> 0:18:51.520 Look, I think I have a great team in finance 0:18:51.600 --> 0:18:56.080 that has done so much and has built a great foundation. Really, 0:18:56.280 --> 0:19:00.119 Daniel and I look at execution and driving prioritization and 0:19:00.200 --> 0:19:03.640 then dividing and conquering where he can spend time continuing 0:19:03.680 --> 0:19:06.080 to lead us into this agentic wave that is there. 0:19:06.560 --> 0:19:09.440 And agentic is such a powerful wave that requires both 0:19:09.520 --> 0:19:14.000 go to market and product innovation, and continuing our leadership 0:19:14.080 --> 0:19:16.720 in that area is great for me to be able 0:19:16.800 --> 0:19:19.520 to help Daniel and help the team by providing day 0:19:19.560 --> 0:19:23.320 to day ownership over the enabling functions that really drive 0:19:23.640 --> 0:19:26.600 our ability to execute against our broader vision. That's where 0:19:26.640 --> 0:19:28.080 I'm going to spend more and more of my time. 0:19:28.720 --> 0:19:30.760 It's frankly an honor and a really good part to 0:19:30.840 --> 0:19:32.520 be a part of the larger team of viipath. 0:19:32.960 --> 0:19:35.440 It's a hard time because you're cutting people. How much 0:19:35.560 --> 0:19:39.879 is AI able to offset and replace some of that talent? 0:19:40.960 --> 0:19:41.480 Yeah, we look. 0:19:41.520 --> 0:19:43.720 I think first, as you're right, it's never easy to 0:19:43.800 --> 0:19:46.920 part with employees. And at the same time, I think 0:19:47.040 --> 0:19:50.000 driving continuing to drive shareholder value is important for us 0:19:50.119 --> 0:19:54.200 and efficiency and making sure we have streamlined processes that 0:19:54.280 --> 0:19:54.560 are there. 0:19:54.840 --> 0:19:57.159 I think AI is a really important part of us. 0:19:57.320 --> 0:20:00.720 We actually use our platform internally than three hundred and 0:20:00.720 --> 0:20:05.520 fifty automations live doing everything from invoice processing to even 0:20:05.600 --> 0:20:07.800 complex areas like vendor engagements. 0:20:08.240 --> 0:20:10.080 That is a big part of our productivity. 0:20:10.520 --> 0:20:13.520 With autopilot, we're able to launch that into other areas 0:20:13.560 --> 0:20:16.640 such as our sales processes. And I think that efficiency 0:20:17.560 --> 0:20:21.119 gives us not just productivity and dollars, but really of 0:20:21.280 --> 0:20:24.440 mind shure to spend more time with customers and customer 0:20:24.520 --> 0:20:27.960 centricity is a really key tenant of Daniel's priority for 0:20:28.040 --> 0:20:28.480 the company. 0:20:28.520 --> 0:20:32.240 As we go forward, UIPAF CFO and now COO as well. Actually, 0:20:32.240 --> 0:20:34.080 and goodt thank you very much. Like coming up on 0:20:34.119 --> 0:20:38.240 the program, Americans are shifting their stance on a potential 0:20:38.320 --> 0:20:41.600 TikTok ban. We'll have all the details next And as 0:20:41.640 --> 0:20:45.080 we head to the break, take another look at the 0:20:45.160 --> 0:20:48.960 NASDAQ one hundred actually trading their session lows, now heading 0:20:49.000 --> 0:20:53.000 for its biggest weekly decline since November twenty twenty two, 0:20:53.480 --> 0:20:55.320 down two and a half two point four percent. In 0:20:55.359 --> 0:20:58.159 this session, you can see the little sort of spike 0:20:58.280 --> 0:21:00.960 or pair in those losses. After the faire wallerheads, we'll 0:21:00.960 --> 0:21:02.439 talk more about the markets in the hour. This has 0:21:02.480 --> 0:21:21.399 boonbo technology. It's time now for talking tech and first start. 0:21:21.480 --> 0:21:26.000 Americans are less supportive of a possible TikTok ban than 0:21:26.040 --> 0:21:28.480 they were eighteen months ago. According to a new Pew 0:21:28.600 --> 0:21:32.200 Research survey, just thirty two percent of US adults back 0:21:32.240 --> 0:21:35.000 a TikTok ban, while that number was at fifty percent 0:21:35.119 --> 0:21:38.000 back in March of last year. Plus TikTok parent Bike 0:21:38.160 --> 0:21:40.480 Dance is raising as much as six hundred million dollars 0:21:40.680 --> 0:21:44.440