WEBVTT - Tech's Ad Problem and Airbnb's Disappointing Outlook 0:00:02.240 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:27.760 Emily jay I remember the check in San Francisco, and 0:00:27.760 --> 0:00:31.200 this is Bloomberg Technology coming up in the next hours. 0:00:31.520 --> 0:00:35.040 Some of the world's most recognizable brands, from Apple to 0:00:35.080 --> 0:00:38.400 Coca Cola, are being worn to pull advertising from Twitter, 0:00:38.440 --> 0:00:42.280 depending on how Elon Musk moderates content or not. But 0:00:42.479 --> 0:00:44.960 it's not just Twitter that has an ad problem. All 0:00:45.320 --> 0:00:48.400 major social networks are re link from fewer AD dollars 0:00:48.680 --> 0:00:51.280 will even go to social media in the future or 0:00:51.360 --> 0:00:55.480 fleet to streaming we'll discuss. Plus Airbnb gets a reality 0:00:55.560 --> 0:00:58.400 check as consumers shift away from higher cost rentals that 0:00:58.560 --> 0:01:01.840 thrived in the pandemic. CEO Brian Chesky joins us to 0:01:01.880 --> 0:01:05.360 talk about his outlook on travel and address those high 0:01:05.480 --> 0:01:09.039 cleaning fees, and as tensions between the US and trying 0:01:09.040 --> 0:01:13.200 to persist, how do businesses change their strategy? Plus where 0:01:13.400 --> 0:01:17.840 is Jack mob? A former Ali Baba Exact will join us, 0:01:18.200 --> 0:01:21.560 but first a little bit more about Twitter and advertising. 0:01:21.560 --> 0:01:24.280 Elon Musk taking over Twitter at one of the most 0:01:24.319 --> 0:01:27.320 precarious moments for big tech companies that have built massive 0:01:27.400 --> 0:01:32.120 businesses based on ad revenue. Platforms we've taken for granted, 0:01:32.240 --> 0:01:36.559 like Twitter, Facebook, Instagram have been free to users thanks 0:01:36.560 --> 0:01:39.479 to those ads. But that I'm beginning to change and 0:01:39.560 --> 0:01:42.520 could continue to change fast from where I want to 0:01:42.520 --> 0:01:45.760 bring in Bloomberg's Kurt Wagner. Kurt, before we go any farther, 0:01:45.920 --> 0:01:50.240 what's actually happening with Twitter's ad products right now? We've 0:01:50.400 --> 0:01:54.240 there's been talk about a potential advertiser boycott elon musks, 0:01:54.280 --> 0:01:57.880 but some ideas out there about a subscription. Where do 0:01:57.920 --> 0:02:00.960 we stand right now? Yeah, I mean right now everything 0:02:01.040 --> 0:02:03.600 is sort of where was, you know, last week, But 0:02:03.880 --> 0:02:07.000 you just mentioned there's some looming things that could be 0:02:07.120 --> 0:02:11.960 incredibly impactful. The first is this potential boycott, right like 0:02:12.000 --> 0:02:15.520 this idea that advertisers are going to say, hey, we're 0:02:15.520 --> 0:02:17.800 not going to spend money on this platform and unless 0:02:17.840 --> 0:02:21.239 you do certain things around speech or or policing of speech. 0:02:21.280 --> 0:02:23.120 And we saw that with Facebook a few years ago, 0:02:23.160 --> 0:02:26.000 Emily you probably remember, and it was a big deal. 0:02:26.200 --> 0:02:29.000 But Facebook was able to weather that storm um for 0:02:29.040 --> 0:02:30.560 a couple of reasons, and one of them was that, 0:02:30.720 --> 0:02:32.679 you know, they had Cheryl Stamberg out there talking to 0:02:32.720 --> 0:02:36.239 advertisers and other senior leaders. Now all the senior leaders 0:02:36.240 --> 0:02:38.880 that Twitter who would be having those conversations are gone. 0:02:39.080 --> 0:02:41.440 And so that's why I feel like an advertising boycott 0:02:41.480 --> 0:02:44.400 at Twitter could be kind of dicey um. If indeed 0:02:44.560 --> 0:02:47.000 that is the route that some people go, which you know, 0:02:47.040 --> 0:02:48.600 as we've seen they'd be willing to do it before, 0:02:48.600 --> 0:02:53.320 I wouldn't be surprised if that something like that happens again. Meantime, 0:02:53.360 --> 0:02:55.919 you know, Twitter is grappling with the fact that advertisers 0:02:56.120 --> 0:02:59.280 are potentially going elsewhere in general, and also facing a 0:02:59.280 --> 0:03:03.919 massive econom mic slowdown. How our advertisers thinking about whether 0:03:03.960 --> 0:03:07.000 to spend their dollars on social media or look to 0:03:07.160 --> 0:03:12.079 things like streaming. I mean, this sounds so obvious, but 0:03:12.240 --> 0:03:15.320 if you're an advertiser, especially right now, when budgets are 0:03:15.320 --> 0:03:18.160 a little bit tighter, when there's this massive inflation issue 0:03:18.200 --> 0:03:20.840 that's going on, You're only going to spend money where 0:03:20.919 --> 0:03:23.320 you can see a return on that investment, Right. So 0:03:23.680 --> 0:03:27.800 that historically has been places like Google and Facebook, places 0:03:27.840 --> 0:03:31.160 with really strong direct response businesses. Right. So I put 0:03:31.160 --> 0:03:34.000 a dollar in and I know, with some you know, consistency, 0:03:34.000 --> 0:03:36.760 I'm going to get a dollar fifty and sales out now. 0:03:37.120 --> 0:03:40.400 Twitter is always been different than that. They've always specialized 0:03:40.400 --> 0:03:42.240 in what's called brand advertising, right. It's the kind of 0:03:42.240 --> 0:03:43.800 stuff you see around the super Bowl or on a 0:03:43.800 --> 0:03:47.200 billboard or whatever that is not necessarily something that is 0:03:47.240 --> 0:03:49.520 easy to measure for r O. I, it's not the 0:03:49.600 --> 0:03:51.880 kind of thing that I think when uh, you know, 0:03:52.560 --> 0:03:55.120 times are tough and money is that you want to 0:03:55.160 --> 0:03:56.600 go spend a bunch of money on that. So I 0:03:56.600 --> 0:03:59.520 do think, regardless of what's going on with Ellen, I 0:03:59.520 --> 0:04:01.520 just think aending money on Twitter right now is probably 0:04:01.560 --> 0:04:04.320 a tough you know, sell, just given the environment that 0:04:04.360 --> 0:04:09.200 we're in economically. We heard a little bit from Kathy Would, 0:04:09.360 --> 0:04:13.320 who seems excited about Elon Musk's plans per usual. Let's 0:04:13.320 --> 0:04:15.480 take a quick listen to what she had to say 0:04:15.480 --> 0:04:20.680 on Bloomberg earlier today. This subscription advertising model is a 0:04:20.800 --> 0:04:23.279 very smart move if he goes in that direction. The 0:04:23.440 --> 0:04:26.720 verification that little check is very important to people and 0:04:26.960 --> 0:04:32.640 could help clean up the platform considerably. You know, it's 0:04:32.640 --> 0:04:35.320 not surprising that someone like Kathy Would would be excited 0:04:35.320 --> 0:04:39.120 about Elon Musk's plans, But you know, what do you 0:04:39.160 --> 0:04:42.520 make of her support and whether you know there will 0:04:42.600 --> 0:04:46.760 be a wave of advertisers and and people out there 0:04:46.880 --> 0:04:50.359 who like what Ellen is doing. Yeah, I'm smiling, not 0:04:50.520 --> 0:04:54.760 because you know, I I necessarily disagree that the blue 0:04:54.839 --> 0:04:58.120 check has value. I'm just not sure that this idea 0:04:58.120 --> 0:04:59.800 that it's going to clean up the service of FO 0:05:00.279 --> 0:05:02.200 really makes a whole lot of sense. We've seen Elon 0:05:02.320 --> 0:05:04.719 talk about this as well, right that, well, once I 0:05:04.760 --> 0:05:08.080 start charging for the blue check, you know, bots won't 0:05:08.120 --> 0:05:09.839 pay for the blue check, and then we'll know who's 0:05:09.920 --> 0:05:13.520 real and who's not. Well, that implies, emily that regular 0:05:13.600 --> 0:05:15.880 people are going to pay for a blue check mark 0:05:15.920 --> 0:05:19.000 two and eight dollars a month. Uh, is not, you know, 0:05:19.600 --> 0:05:22.760 necessarily something that people are willing to fork over for 0:05:23.000 --> 0:05:25.200 you know, proven to Elon Muskata that they are a 0:05:25.279 --> 0:05:28.360 human being. And so I'm curious to see how this works. 0:05:28.400 --> 0:05:31.320 To me, it feels relatively rushed. Um, maybe there's more 0:05:31.400 --> 0:05:33.080 nuanced to it that we just haven't learned yet, right 0:05:33.120 --> 0:05:35.120 because a lot of this he's just conveying via his 0:05:35.160 --> 0:05:37.800 own tweets. So perhaps there's a much broader plan that 0:05:37.839 --> 0:05:40.159 we're just not seen. But at least on the surface, 0:05:40.200 --> 0:05:42.880 I feel like this idea of you know, we're suddenly 0:05:42.880 --> 0:05:45.200 gonna know who the humans are and who the bots 0:05:45.240 --> 0:05:47.440 are because the humans are the ones who are gonna pay. 0:05:47.839 --> 0:05:50.479 It just doesn't feel realistic when you have, you know, 0:05:50.560 --> 0:05:52.720 hundreds of millions people on the service, Not that many 0:05:52.760 --> 0:05:54.960 people are gonna want to pay for this? All right? 0:05:55.320 --> 0:05:59.480 Uh so much more, tv D, Blueworks, Kart Wariner, thank you. 0:05:59.560 --> 0:06:02.799 Of course, all of your reporting on Twitter will continue 0:06:02.839 --> 0:06:15.080 to follow. Uh your stuff. Let's get back to earnings now, 0:06:15.160 --> 0:06:18.560 with Airbnb reporting big revenue and net income numbers, but 0:06:18.640 --> 0:06:22.640 shares falling after the company gave a disappointing outlook for 0:06:22.760 --> 0:06:26.560 bookings in the fourth quarter, closing down more than I 0:06:26.600 --> 0:06:29.480 want to bring in see O Brian Chesky to address 0:06:29.520 --> 0:06:32.000 it all now, Brian, thank you as always for joining us. 0:06:32.080 --> 0:06:35.120 So one point to billion in net income, two point 0:06:35.320 --> 0:06:38.960 nine billion in revenue. These are big numbers, um, but 0:06:39.480 --> 0:06:44.039 investors still pretty disappointed. What's your response to this big 0:06:44.080 --> 0:06:46.840 stock plunge. I believe it's the biggest stock market job 0:06:46.920 --> 0:06:50.479 for Airbnb since going public. Well, you know, I've tried 0:06:50.520 --> 0:06:52.919 to make sure that we focus on what we can 0:06:53.000 --> 0:06:56.320 deliver in your ami, we delivered a record quarter a 0:06:56.480 --> 0:06:59.440 billion and a half of ibada, nearly a billion dollars 0:06:59.520 --> 0:07:02.480 in freak ash flow, three point three billion dollars in 0:07:02.520 --> 0:07:05.039 the trailing twelve months. I think that you know, people 0:07:05.080 --> 0:07:07.200 in the world, this is a very uncertain time and 0:07:07.279 --> 0:07:10.520 everyone's really looking for indications of what the future holds. 0:07:11.080 --> 0:07:13.320 Um We've tried to make very clear on the call 0:07:13.440 --> 0:07:15.920 that we're actually feeling very confident about Q four. So 0:07:16.560 --> 0:07:19.600 people are traveling, that's why results were really good in 0:07:19.680 --> 0:07:21.720 Q three, and we're actually feeling really confident. I don't 0:07:21.720 --> 0:07:23.560 want to make sure people know that. So let's hold 0:07:23.560 --> 0:07:26.920 on in on this moderating of booking growth that you see. 0:07:27.080 --> 0:07:31.080 If we are heading into a long term recession, who's 0:07:31.120 --> 0:07:33.680 to say that that consumers aren't going to cut back 0:07:34.080 --> 0:07:36.960 on travel or aren't going to choose to stay in cheaper, 0:07:37.160 --> 0:07:40.720 closer places rather than splurge on that trip abroad, and 0:07:40.760 --> 0:07:43.520 that that's going to add up for Airbnb. Well, this 0:07:43.600 --> 0:07:45.640 is a great point, Emily. One of the things I 0:07:45.760 --> 0:07:47.200 just say, though, is that one of the things we 0:07:47.360 --> 0:07:49.960 learn in the pandemic is that we have a very 0:07:50.080 --> 0:07:54.920 adaptable business model. For example, member recall in air bing 0:07:54.960 --> 0:07:58.400 b was the first company to rebound in all of travel. 0:07:58.600 --> 0:08:00.400 That's partly why we had such a six sus y 0:08:00.480 --> 0:08:02.280 p O. And the reason why is we are a 0:08:02.360 --> 0:08:05.000 more affordable option. We have never nearly every type of 0:08:05.000 --> 0:08:07.680 space in nearly every community, so if people cut back 0:08:07.920 --> 0:08:10.880 cross border travel, they might start working more from Airbnb. 0:08:11.040 --> 0:08:13.640 So we found a very brasilient model and that's something 0:08:13.680 --> 0:08:17.720 I'm feeling really confident about. Chris Bryant, are Bloomberg opinion columnist, 0:08:17.800 --> 0:08:20.920 had an interesting take. He suggested, if Airbnb has a 0:08:21.000 --> 0:08:24.160 problem is that you're making too much money, how do 0:08:24.240 --> 0:08:26.720 you respond to that? No one whatever told us that 0:08:26.800 --> 0:08:28.640 two and a half years ago we were losing two 0:08:28.960 --> 0:08:31.000 d fifty million dollars a year in Evada, And of 0:08:31.080 --> 0:08:33.720 course now we delivered a billion and a half dollars 0:08:33.800 --> 0:08:36.920 in Evada in the quarter. You know, we are increasingly 0:08:37.080 --> 0:08:40.520 investing more in the customer experience every year. The reason 0:08:40.559 --> 0:08:44.079 we're getting more profitable is we're more efficient. We're incredibly disciplined. 0:08:44.120 --> 0:08:46.679 We only have six thousand employees. We spent a lot 0:08:46.800 --> 0:08:49.480 less on marketing than any other travel company of our 0:08:49.559 --> 0:08:52.520 size in the online space. But you know, with air cover, 0:08:52.640 --> 0:08:55.600 we're investing a lot more in the customer experience this year. 0:08:55.880 --> 0:08:57.839 So we're going to continue to be more efficient, but 0:08:57.920 --> 0:09:00.720 we're going to continue to deliver more more for customers. 0:09:00.840 --> 0:09:03.679 And I also understand that people really care about value. 0:09:04.000 --> 0:09:06.120 They want to make sure that Airbnb is still a 0:09:06.200 --> 0:09:08.720 brand you can come to get a great value. We're 0:09:08.800 --> 0:09:11.400 known for affordable travel, and I know that people are 0:09:11.440 --> 0:09:14.520 really concerned about whether or not our our aerbans will 0:09:14.520 --> 0:09:16.800 continue to be affordable, and they will be. We're going 0:09:16.840 --> 0:09:19.479 to continue to focus and making sure our prices are competitive, 0:09:19.880 --> 0:09:21.880 and so that's what we're focused on. So let's talk 0:09:21.880 --> 0:09:25.520 about the transparency around pricing that you hinted at. I 0:09:25.600 --> 0:09:28.599 think we've all had that feeling of looking at a 0:09:28.679 --> 0:09:31.400 rental on Airbnb. Then we click all the way through 0:09:31.520 --> 0:09:33.960 and and the price change is given, all the fees, 0:09:34.080 --> 0:09:36.719 the cleaning fee, et cetera. What can we expect that 0:09:37.280 --> 0:09:41.000 transparency to look like? Well, yeah, and I think there's 0:09:41.040 --> 0:09:44.600 two things going on. The first is people, we want 0:09:44.640 --> 0:09:48.280 people to understand our pricing not be surprised. The second 0:09:48.360 --> 0:09:49.959 is we want to make sure that when they do 0:09:50.080 --> 0:09:51.880 see the final price, they feel really good about the 0:09:51.920 --> 0:09:54.599 final price and it's still a great value. So we 0:09:54.679 --> 0:09:57.560 are working on updating some of the designs for our 0:09:57.600 --> 0:10:01.000 platform to make everything even more intuitive, and we're gonna 0:10:01.000 --> 0:10:04.120 have some updates very very soon, so stay tuned. Let's 0:10:04.160 --> 0:10:06.400 talk a little bit about average daily rates. There's an 0:10:06.440 --> 0:10:08.520 expectation those are going to come under pressure in the 0:10:08.600 --> 0:10:12.160 next quarter given the strong dollar, if the bookings mix 0:10:12.520 --> 0:10:17.000 shifts to potentially cheaper rentals. Can you give us some 0:10:17.160 --> 0:10:21.080 insight on consumer preferences right now? What do consumers want 0:10:21.440 --> 0:10:25.839 that you're seeing through the holiday season and we're not 0:10:25.960 --> 0:10:28.760 seeing a major change. I mean, what I would say 0:10:28.880 --> 0:10:31.080 is the reason that price per night on abomy has 0:10:31.080 --> 0:10:33.520 gone up in the last couple of years is before 0:10:33.559 --> 0:10:37.120 the pandemic, most people were using Airbnb to cross the 0:10:37.200 --> 0:10:39.599 border and stay in a city and stay in a 0:10:39.679 --> 0:10:42.199 one bedroom, two bedroom a place. Now a lot of 0:10:42.240 --> 0:10:44.880 people are booking three, four or five bedroom homes and 0:10:44.920 --> 0:10:47.120 they're doing it because they're going with their friends, their families, 0:10:47.160 --> 0:10:49.400 their coworkers, or they're living in the house. And so 0:10:49.520 --> 0:10:52.200 now the average duol rates higher because the homes are bigger. 0:10:52.920 --> 0:10:56.920 What we think is when Asia recovers, that could moderate 0:10:57.000 --> 0:10:58.640 price per night a little bit. But that's a good 0:10:58.720 --> 0:11:01.560 thing because that will actually lead to a lot more 0:11:01.640 --> 0:11:04.840 volume because you get an entire continent to be traveling 0:11:04.920 --> 0:11:06.520 a lot more. And I do think you're gonna see 0:11:06.520 --> 0:11:09.600 that grow. So we actually are expecting a pretty stable 0:11:09.800 --> 0:11:12.880 average daily rate. We're not seeing major shifts and the 0:11:12.920 --> 0:11:16.160 way people use air VnB just yet. Long term stays 0:11:16.160 --> 0:11:20.959 still hugely popular. About of nights book give us some 0:11:21.120 --> 0:11:23.800 insight on that trend, because I wonder, is it plateau 0:11:23.960 --> 0:11:25.959 ing at all? Is it slowing down? I mean, is 0:11:26.000 --> 0:11:29.120 the growth that you saw there over No? No, I 0:11:29.160 --> 0:11:32.000 mean honestly, long term stays is still the fastest growing 0:11:32.120 --> 0:11:35.439 segment by length of state on Airbnb. Now because the 0:11:35.520 --> 0:11:38.800 short term states have recovered, it's now been stable at 0:11:40.160 --> 0:11:43.240 I do expect in the coming years ahead, though, long 0:11:43.360 --> 0:11:46.559 term stage will probably increasingly grow as a percentage of 0:11:46.640 --> 0:11:49.839 a business. And the reason why is because increasingly, I 0:11:49.880 --> 0:11:53.120 think more people are gonna be flexible, fewer people have leases. 0:11:53.120 --> 0:11:55.440 I'm not saying no one will, I'm just saying enough 0:11:55.520 --> 0:11:57.760 for this market to continue to grow. So this is 0:11:57.800 --> 0:12:00.880 gonna be a huge new grows owth opportunity for us 0:12:00.920 --> 0:12:03.319 in the coming years to come. It's so fascinating just 0:12:03.440 --> 0:12:06.000 how much how people use Airbnb has changed just in 0:12:06.040 --> 0:12:08.000 the last couple of years. Do you have any concern 0:12:08.080 --> 0:12:14.160 that Airbnb is over reliant potentially on long term stays. No, because, um, 0:12:14.440 --> 0:12:15.800 you know, we just got to make sure that each 0:12:15.840 --> 0:12:18.640 segment is growing and the long term stays aren't really 0:12:18.679 --> 0:12:20.920 coming at the cost of short term stays. So as 0:12:20.960 --> 0:12:23.240 long as short term stays continue to grow, think of 0:12:23.280 --> 0:12:25.800 it as another layer. It's kind of like Amazon sales 0:12:25.880 --> 0:12:28.960 books and now they sell electronics, now they sell another category. 0:12:29.440 --> 0:12:32.240 We don't think these categories will necessarily cannibalize. These are 0:12:32.280 --> 0:12:34.800 really different use cases, and a lot of people are 0:12:34.800 --> 0:12:38.360 coming Airbnb just to list monthly stays, so this I 0:12:38.440 --> 0:12:40.800 think can open up a lot. I actually think monthly 0:12:40.880 --> 0:12:43.599 stays can make short term stays more popular because some 0:12:43.800 --> 0:12:46.120 people might book an air be for a long term 0:12:46.200 --> 0:12:48.520 stay and say, hey, that wasn't so bad staying at 0:12:48.559 --> 0:12:50.680 someone else's home. Maybe I'll do it for a short 0:12:50.760 --> 0:12:52.880 term stay. So may actually have a way of bringing 0:12:52.960 --> 0:12:55.760 more customers into Airbnb. That's at least what we what 0:12:55.840 --> 0:12:58.760 our theory is interesting. You do have some analysts out 0:12:58.800 --> 0:13:01.439 there who seem to be thinking Airbnb is priced too 0:13:01.520 --> 0:13:05.559 high compared to some of your travel peers, especially if 0:13:06.000 --> 0:13:09.280 the bookings mixes changing. What are your thoughts on that. 0:13:09.640 --> 0:13:11.599 I mean, our gusts still tell us that Aaron b 0:13:11.880 --> 0:13:14.440 is the best value. That being said, we do want 0:13:14.480 --> 0:13:18.400 to make sure that as the economy slows down, our 0:13:18.559 --> 0:13:21.199 value is even better. And we do know that hotels 0:13:21.280 --> 0:13:23.640 are starting to lower prices, and we want to make 0:13:23.679 --> 0:13:26.280 sure that our pricing is as dynamic. So what are 0:13:26.320 --> 0:13:28.599 things we're doing is we're investing a lot more in 0:13:28.760 --> 0:13:31.600 pricing tools for hosts so that they can have more 0:13:31.720 --> 0:13:34.640 dynamic pricing. And if hotels lower rates and they want 0:13:34.679 --> 0:13:37.000 to lower rates more competitive, they can do that. So 0:13:37.120 --> 0:13:39.480 I still think we'll offer a great value, but there 0:13:39.600 --> 0:13:41.520 is no question that there's a lot more we can 0:13:41.559 --> 0:13:43.400 be doing on value, and that's something we're gonna be 0:13:43.480 --> 0:13:46.200 really focused on over the next six months in time 0:13:46.240 --> 0:13:48.520 for next travel season. So longer term, I don't you know, 0:13:48.600 --> 0:13:51.600 obviously you've launched categories which I know you're really excited about. 0:13:51.720 --> 0:13:54.160 Supply is going to be key. How do you see 0:13:54.240 --> 0:13:57.319 growth in supply over the next two years compared to 0:13:57.360 --> 0:14:00.560 the growth you saw on supply over the last two years, 0:14:00.640 --> 0:14:03.160 And how do you convince all of these new would 0:14:03.240 --> 0:14:07.559 be hosts to choose Airbnb first and only potentially. I 0:14:07.640 --> 0:14:09.959 think it's a great question. Um well, let me say this. 0:14:10.200 --> 0:14:12.880 Number One, I expect a lot more new supply over 0:14:12.960 --> 0:14:15.440 the next two years than the last two years. Um. 0:14:15.480 --> 0:14:17.400 The last two years actually been pretty hard because of 0:14:17.440 --> 0:14:20.520 the pandemic. Not everyone wanted other people in their homes. 0:14:20.800 --> 0:14:22.640 I think the next two years they're gonna be a 0:14:22.720 --> 0:14:25.960 lot more interested for two reasons. Number One, the further 0:14:26.160 --> 0:14:28.680 the pandemic is behind us, the less resident they are. 0:14:29.040 --> 0:14:32.280 But more importantly, Emily, as you recall, we started during 0:14:32.320 --> 0:14:35.960 two thousand eight Airbnb during the Great Recession, and during 0:14:36.000 --> 0:14:38.840 the Great Recession a lot of people needed to make 0:14:38.960 --> 0:14:41.760 extra money and they turned to Airbnb to host for 0:14:41.800 --> 0:14:44.160 the first time. I think that's going to happen again. 0:14:44.520 --> 0:14:46.520 And the final thing I'll say, I'm gonna give a 0:14:46.600 --> 0:14:51.440 plug on November six at a a m. Eastern time. 0:14:51.680 --> 0:14:54.360 We're gonna enveil a whole new, super easy way to 0:14:54.480 --> 0:14:57.360 list your home on Airbnb, and I think that is 0:14:57.640 --> 0:15:00.360 going to be a big driver of a lot. More so, 0:15:00.640 --> 0:15:02.760 we have some really cool new products. They're going to 0:15:02.800 --> 0:15:05.040 be launching in fewer than two weeks, and I think 0:15:05.080 --> 0:15:08.360 that's going to add an acceleration. Alright, November sixteenth, we 0:15:08.480 --> 0:15:11.640 will be watching. Last question. Airbnb was started in the 0:15:11.680 --> 0:15:15.320 middle of the financial crisis. You obviously survived and thrived 0:15:15.400 --> 0:15:19.240 ultimately in the pandemic. What's your strategy on costs through 0:15:19.320 --> 0:15:22.600 this downturn? Are you considering M and A given all 0:15:22.720 --> 0:15:27.880 that cash and potentially opportunistic or advantageous valuations out there, 0:15:28.120 --> 0:15:30.480 you know, how are you mapping this out? Given we 0:15:30.600 --> 0:15:33.040 could be in this for a couple of years. That's 0:15:33.040 --> 0:15:35.680 a great question to um. Let me tell you a 0:15:35.760 --> 0:15:38.200 really important lesson I learned in the pandemic. You know, 0:15:38.720 --> 0:15:43.280 in between a February in in April of two thousand 0:15:43.560 --> 0:15:46.240 and twenty, we were one of the first companies hit 0:15:46.280 --> 0:15:49.040 by the pandemic. We lost eighty percent of our business 0:15:49.240 --> 0:15:51.840 in eight weeks, and a thousand of us gone to 0:15:51.880 --> 0:15:54.560 foxhol and we rebuilt the company fair ground up. And 0:15:54.640 --> 0:15:58.000 the company we rebuilt was a much smaller, much leaner, 0:15:58.320 --> 0:16:01.160 much more discipline company. The reason we did three billion 0:16:01.200 --> 0:16:03.400 dollars in free cash the last twelve months is because 0:16:03.440 --> 0:16:05.920 of that discipline and what I told the team is, 0:16:06.000 --> 0:16:08.600 no matter how good the economy is, no matter how 0:16:08.720 --> 0:16:10.880 bad the economy is, we are going to try to 0:16:11.040 --> 0:16:14.160 not ever run the company differently because of the economy. 0:16:14.360 --> 0:16:17.400 But you can only do that if you stay disciplined, right, 0:16:17.440 --> 0:16:19.600 You don't ever want to have to get more disciplined. 0:16:19.880 --> 0:16:22.600 So I said, we should be prepared for a storm. 0:16:22.920 --> 0:16:25.080 Whenever it comes. We're not going to change the way 0:16:25.080 --> 0:16:27.640 we're on the company. And because of that, beginning this year, 0:16:27.720 --> 0:16:30.560 we were only, for example, forecasting hiring seven percent more 0:16:30.640 --> 0:16:33.160 employees this year. When other tech comes, we're gonna hire. 0:16:34.840 --> 0:16:37.080 Now they have to pull back. We're not pulling back. 0:16:37.120 --> 0:16:38.920 In fact, we're not pulling on the brakes. We're gonna 0:16:38.960 --> 0:16:41.160 step on the gas. But stepping the gas doesn't mean 0:16:41.200 --> 0:16:42.720 we to spend a lot more money. It's just a 0:16:42.800 --> 0:16:45.760 lot more velocity to be a speed innovation and taking 0:16:45.800 --> 0:16:48.840 more market share. All right, Brian Chesky, we'll keep that 0:16:48.920 --> 0:16:51.600 in mind. CEO of Airbnb, thanks for making the time today, Brian, 0:16:51.800 --> 0:16:54.200 appreciate it. Thank you very much. We're gonna be right 0:16:54.200 --> 0:16:56.320 back with more of Bloomberg Technology after this quick break. 0:16:56.440 --> 0:17:10.600 This is Bloomberg. China is making moves that will severely 0:17:10.760 --> 0:17:14.320 curtailed shipments in and out of the world's largest iPhone factory. 0:17:14.440 --> 0:17:17.320 Beijing is imposing a seven day lockdown on the area 0:17:17.400 --> 0:17:20.760 in Jung Joe, this after the number of COVID cases 0:17:20.800 --> 0:17:25.480 in the city almost quadrupled from Monday to Tuesday. And 0:17:25.520 --> 0:17:28.399 it's a profit in sales miss for Paramount Global, the 0:17:28.440 --> 0:17:32.080 parent company of CBS, Nickelodeon, and MTV Networks, reporting earnings 0:17:32.160 --> 0:17:37.480 and the big problem continuing weakness in advertising. Still, there's 0:17:37.520 --> 0:17:40.639 been a turnaround in Paramounts Film Studio, with revenue up 0:17:40.720 --> 0:17:44.280 for in the third quarter and Top Gun Maverick is 0:17:44.320 --> 0:17:48.720 the highest grossing film so far this year. Meantime, Amazon 0:17:48.800 --> 0:17:51.440 also feeling the heat on its ad business and it's 0:17:51.480 --> 0:17:53.800 now taking more drastic measures to align expenses with a 0:17:53.840 --> 0:17:56.760 slowdown in sales. So it's just telling Bloomberg that the 0:17:56.800 --> 0:18:00.560 world's largest e commerce company is freezing staff level in 0:18:00.640 --> 0:18:04.400 its profitable ads business. Amazon will continue to fill vacancies 0:18:04.440 --> 0:18:18.159 in this unit, but won't create any new jobs. Welcome 0:18:18.160 --> 0:18:20.440 back to bloomber Technology and Emily Chang in San Francisco. 0:18:21.000 --> 0:18:24.440 The banking sector says people and businesses are paying more 0:18:24.480 --> 0:18:27.600 and more in the wake of ransomware attacks. Banks reported 0:18:27.640 --> 0:18:31.040 one point to billion dollars in ransomware payments last year alone, 0:18:31.520 --> 0:18:35.159 nearly five times as much as and that is just 0:18:35.280 --> 0:18:37.679 a taste of what Jeff Stone will explore with Bloomberg's 0:18:37.680 --> 0:18:41.840 weekly cyber Bulletin newsletter, including exclusive coverage inside the world 0:18:41.880 --> 0:18:46.160 of hackers and cyber espionage and how businesses are playing defense. 0:18:46.240 --> 0:18:48.679 Jeff tell us more about cyber Bulletin and what your 0:18:48.720 --> 0:18:51.280 goals are here. The goal here is to help people 0:18:51.359 --> 0:18:54.480 understand emily that cybersecurity is a lot more than ones 0:18:54.560 --> 0:18:56.959 and zeros in the latest big data breach, There's all 0:18:57.040 --> 0:19:00.320 kinds of characters involved in this world now, cryptocurrency fraud 0:19:00.359 --> 0:19:02.840 as part of this, disinformation as part of this, all 0:19:02.920 --> 0:19:07.080 kinds of influence operations, and everyone trying to monetize data. 0:19:07.160 --> 0:19:08.840 So that's what we're trying to explore here and really 0:19:08.880 --> 0:19:12.359 help people understand how they can protect themselves more urgently. Now. 0:19:12.640 --> 0:19:15.960 Cyber threats have been on the rise for a while. 0:19:16.480 --> 0:19:19.520 Why now are you launching this? We're busier than ever. 0:19:19.720 --> 0:19:21.920 Mostly we figured we'd take on one more project, but 0:19:21.960 --> 0:19:25.800 basically since since the invasion of Ukraine really has highlighted Uh, 0:19:26.080 --> 0:19:28.680 this big explosion of ransomware as you as you just 0:19:28.800 --> 0:19:32.360 alluded to, UM, it is urgent for people to get 0:19:32.440 --> 0:19:36.280 a better sense of really what these threats look like 0:19:36.720 --> 0:19:40.480 and how to respond in cyberspace. Again, I think people 0:19:40.520 --> 0:19:43.399 are used to this world of email scams and different 0:19:43.440 --> 0:19:46.400 kinds of fraud through your apps that you're still trying 0:19:46.440 --> 0:19:48.200 to get a handle on. But we're really going to 0:19:48.320 --> 0:19:51.320 dig in and help people, um straighten out how to 0:19:51.359 --> 0:19:55.800 protect themselves at a more urgent time than ever. All right, Bloomberg, 0:19:55.880 --> 0:19:59.000 Jeff Stone. You can sign up for that weekly Bloomberg 0:19:59.080 --> 0:20:02.720 cyber Bulletin newsletter at Bloomberg dot com. Thanks, Jeff. We'll 0:20:02.720 --> 0:20:05.920 stay tuned well for more on the state of cybersecurity. 0:20:05.960 --> 0:20:07.920 I want to bring in Christopher Alberg, the CEO of 0:20:08.000 --> 0:20:12.000 the cybersecurity firm Recorded Future, which is actively tracking the 0:20:12.080 --> 0:20:16.399 cybersecurity threat level in Ukraine. Uh, Chris, give us the 0:20:16.560 --> 0:20:20.159 latest there. You've been involved for for several months. Now, 0:20:20.480 --> 0:20:22.920 tell us what you're most worried about at this time, 0:20:23.240 --> 0:20:26.240 you know, it's it's really interesting. We started basically we 0:20:26.320 --> 0:20:28.359 had worked a little bit with one particular part of 0:20:28.359 --> 0:20:31.399 the Ukrainian government, their national search on the morning of 0:20:31.560 --> 0:20:34.760 the four February, we sort of stood up publicly can 0:20:34.840 --> 0:20:37.200 check out our nice tweet on that, and said, look, 0:20:37.280 --> 0:20:39.479 we would get behind these guys and and help them 0:20:39.520 --> 0:20:41.680 in every every in any way we can. And so 0:20:41.800 --> 0:20:44.440 now our our intelligence platform is in the hands of 0:20:44.560 --> 0:20:49.040 seven agencies over there, and look, it's it's been interesting, 0:20:49.480 --> 0:20:51.760 uh AT. In the lead up of the war, there 0:20:51.840 --> 0:20:54.680 was a whole bunch of Russian activity at the very 0:20:54.800 --> 0:20:58.640 sort of crossover into the war. They killed a bunch 0:20:58.640 --> 0:21:02.440 of communications and infrastructure. The Russians has taken a part 0:21:02.480 --> 0:21:05.000 a bunch of systems. They have certainly been running a 0:21:05.040 --> 0:21:11.240 whole bunch of destructive malware campaigns against uh called Ukrainian power, 0:21:11.320 --> 0:21:15.080 infrastructure and the like ongoingly. What's actually been very impressive 0:21:15.240 --> 0:21:19.119 is how the Ukrainians, together with foreign firms and foreign 0:21:19.320 --> 0:21:22.760