1 00:00:02,200 --> 00:00:05,640 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:05,680 --> 00:00:08,720 Speaker 1: dot Com the radio plus mobile lap and on your radio, 3 00:00:09,000 --> 00:00:13,120 Speaker 1: this is a Bloomberg business flag from Bloomberg World Handquarters. 4 00:00:13,280 --> 00:00:16,079 Speaker 1: I'm Charlie Pellip. We just heard from shake Shack. It's 5 00:00:16,120 --> 00:00:19,800 Speaker 1: served up second quarter same store sales that missed analysts estimates. 6 00:00:19,840 --> 00:00:23,320 Speaker 1: Another sign of the fast food industry may be entering 7 00:00:23,480 --> 00:00:27,400 Speaker 1: a slump. Stocks fell SMP five hundred index down by 8 00:00:27,440 --> 00:00:30,480 Speaker 1: the most in more than a week. Energy producers tumbled 9 00:00:30,520 --> 00:00:33,440 Speaker 1: along with the price of crude. Bank shares sank on 10 00:00:33,600 --> 00:00:37,880 Speaker 1: speculation interest rates won't rise this year. The SMP five 11 00:00:37,920 --> 00:00:42,160 Speaker 1: hundred index down six to, a drop there of three 12 00:00:42,159 --> 00:00:45,560 Speaker 1: tenths of one percent. Dow Industrials down thirty seven points, 13 00:00:45,560 --> 00:00:48,640 Speaker 1: a drop of two tenths of one percent. Nez Stack 14 00:00:48,680 --> 00:00:51,680 Speaker 1: down twenty to fifty two oh four, a drop of 15 00:00:51,760 --> 00:00:54,880 Speaker 1: four tenths of one percent, the ten year up eleven 16 00:00:54,920 --> 00:00:58,400 Speaker 1: thirty second zeal their one point five percent, Gold up 17 00:00:58,400 --> 00:01:01,320 Speaker 1: five eight ounce to a team forty seven, a gain 18 00:01:01,360 --> 00:01:04,839 Speaker 1: of four tenths of one percent, and crude oil down three. 19 00:01:05,440 --> 00:01:10,880 Speaker 1: West Texas Intermedia down a dollar under barrel on w 20 00:01:11,000 --> 00:01:17,959 Speaker 1: T I I'm Charlie Pellett, and that's a Bloomberg Business flash. 21 00:01:18,319 --> 00:01:21,560 Speaker 1: This is taking Stock with Kathleen Hayes and Pin Box 22 00:01:21,720 --> 00:01:25,560 Speaker 1: on Bloomberg Radio. You're reading a story online and you'd 23 00:01:25,600 --> 00:01:28,959 Speaker 1: like to read even more. At the bottom, there's a 24 00:01:29,000 --> 00:01:32,560 Speaker 1: story that may be connected to what you were previously 25 00:01:32,720 --> 00:01:36,920 Speaker 1: interested in. That story is generated by a company, in 26 00:01:36,959 --> 00:01:42,440 Speaker 1: one case, by Taboula. This is a digital content recommendation company, 27 00:01:42,440 --> 00:01:45,560 Speaker 1: and the founder and the chief executive of Taboula, Adam Single, 28 00:01:45,680 --> 00:01:48,440 Speaker 1: that joins me now, Adam, thanks very much for being here, 29 00:01:48,520 --> 00:01:50,960 Speaker 1: Thanks for having me. Did I describe that correctly? Does 30 00:01:51,000 --> 00:01:53,720 Speaker 1: that make sense? Yeah? I would say it's it's content 31 00:01:53,760 --> 00:01:56,480 Speaker 1: recommendation and beyond. You know, we're really trying to be 32 00:01:56,640 --> 00:01:59,920 Speaker 1: that discovery box that helps you be connected with things 33 00:02:00,040 --> 00:02:02,800 Speaker 1: you may like and never knew existed. It could be content, 34 00:02:02,920 --> 00:02:06,040 Speaker 1: could be products, and as of last week, could be videos. 35 00:02:06,120 --> 00:02:09,880 Speaker 1: All right, tell us about this new Actless acquisition, because 36 00:02:10,160 --> 00:02:14,480 Speaker 1: this has to do with video becoming in many cases, 37 00:02:14,560 --> 00:02:18,320 Speaker 1: the dominant form of online content. That's true. You know, 38 00:02:18,400 --> 00:02:21,560 Speaker 1: we we've been really taking a good look at Facebook 39 00:02:21,639 --> 00:02:24,320 Speaker 1: news feed and you've seen how in the past year, 40 00:02:24,520 --> 00:02:28,000 Speaker 1: really we used to see pictures and stories, and as 41 00:02:28,000 --> 00:02:31,000 Speaker 1: of recent we've started seeing videos and there's a great 42 00:02:31,120 --> 00:02:33,519 Speaker 1: user value in that, and we wanted to essentially bring 43 00:02:33,560 --> 00:02:35,880 Speaker 1: the power of news feed that we see on Facebook 44 00:02:36,160 --> 00:02:38,080 Speaker 1: to all over the web. So as you get at 45 00:02:38,080 --> 00:02:40,440 Speaker 1: the bottom of the article, instead of just being recommended 46 00:02:40,480 --> 00:02:43,760 Speaker 1: with stories, you could also experience videos in a way 47 00:02:43,760 --> 00:02:45,760 Speaker 1: that's relevant to you based on who you are and 48 00:02:45,760 --> 00:02:48,400 Speaker 1: what you may like. And the company that you just 49 00:02:48,480 --> 00:02:53,400 Speaker 1: purchased is called convert Media. And let me guess how 50 00:02:53,440 --> 00:02:56,280 Speaker 1: much did you pay? Maybe a hundred millions something like that. 51 00:02:56,840 --> 00:02:59,440 Speaker 1: You're smiling now we we we don't we don't share 52 00:02:59,480 --> 00:03:02,680 Speaker 1: that we diach here that the company fantastic team um 53 00:03:02,720 --> 00:03:04,360 Speaker 1: I said it a few times, but it's now one 54 00:03:04,400 --> 00:03:07,520 Speaker 1: big family. Were very excited about it, and we did 55 00:03:07,560 --> 00:03:10,760 Speaker 1: share that they generated fifty million dollars in runway at 56 00:03:10,760 --> 00:03:13,680 Speaker 1: the point we purchased them. Now you've raised what about 57 00:03:13,720 --> 00:03:16,840 Speaker 1: a hundred and sixty million, I believe, yeah, yeah, And 58 00:03:16,960 --> 00:03:21,200 Speaker 1: that you say you're currently profitable your private leon and 59 00:03:21,560 --> 00:03:25,560 Speaker 1: valuation maybe a billion already. So when we raised the money, 60 00:03:25,600 --> 00:03:27,919 Speaker 1: and of two thousand fourteen, we were on a two 61 00:03:28,280 --> 00:03:32,080 Speaker 1: million dollar revenue. Ever since then, We've grown the company 62 00:03:32,120 --> 00:03:34,440 Speaker 1: to over half a billion dollars in revenue this year. 63 00:03:34,840 --> 00:03:37,840 Speaker 1: At the time, we were shy of a billion dollars. 64 00:03:38,440 --> 00:03:41,160 Speaker 1: So we're a private company. I don't really know. I'm 65 00:03:41,200 --> 00:03:43,320 Speaker 1: trying to spend most of my time thinking instead of 66 00:03:43,320 --> 00:03:47,080 Speaker 1: what's evaluation, more about financial metrics that drove the business, 67 00:03:47,080 --> 00:03:49,560 Speaker 1: you know forward, all right. So some of those metrics 68 00:03:49,800 --> 00:03:52,640 Speaker 1: include the kinds of companies that you have in the 69 00:03:52,800 --> 00:03:56,760 Speaker 1: kinds of content recommendations that you're making. Uh A O. 70 00:03:57,000 --> 00:03:59,840 Speaker 1: L I believe is one of your customers. Conde Nast 71 00:04:00,160 --> 00:04:04,640 Speaker 1: is a customer, Microsoft, Microsoft is a customer. How do 72 00:04:04,800 --> 00:04:08,800 Speaker 1: those companies make sure that the content that you are 73 00:04:08,880 --> 00:04:12,440 Speaker 1: being sent to is first of all appropriate and that 74 00:04:12,480 --> 00:04:14,880 Speaker 1: you're actually sending a real person not just kind of 75 00:04:14,920 --> 00:04:18,520 Speaker 1: a you know, a robotic back and forth that would 76 00:04:18,520 --> 00:04:21,400 Speaker 1: take place online. Right. So, we have about five million 77 00:04:21,480 --> 00:04:25,640 Speaker 1: pieces of content index across the Tabula ecosystem, and every 78 00:04:25,640 --> 00:04:28,760 Speaker 1: piece of content, similar to a TV rating, is rated 79 00:04:28,800 --> 00:04:31,240 Speaker 1: in a way that publishers can say, for us, we'd 80 00:04:31,279 --> 00:04:34,960 Speaker 1: like to recommend things within the financial section, or they 81 00:04:34,960 --> 00:04:37,720 Speaker 1: can say, never recommend entertainment. So we really work with 82 00:04:37,880 --> 00:04:41,400 Speaker 1: all the spectrum of publishers from Microsoft, a L two, 83 00:04:41,480 --> 00:04:44,440 Speaker 1: Daily Mail, TAMZ, and anyone in the middle. We call 84 00:04:44,480 --> 00:04:47,239 Speaker 1: it the bulla choice, and that allows them to decide, 85 00:04:47,279 --> 00:04:49,920 Speaker 1: almost like the parent decides for their kids at home, 86 00:04:50,240 --> 00:04:52,680 Speaker 1: what content makes sense for them and who they want 87 00:04:52,720 --> 00:04:55,320 Speaker 1: to be. And then beyond that, we use technology to 88 00:04:55,360 --> 00:04:58,279 Speaker 1: try to do a really good job curate the best 89 00:04:58,320 --> 00:05:02,120 Speaker 1: piece of content that you may like of the entire universe. Now, 90 00:05:02,120 --> 00:05:05,560 Speaker 1: obviously this is all end up tied to advertising online 91 00:05:05,640 --> 00:05:08,119 Speaker 1: because if you click again and read the next story, 92 00:05:08,160 --> 00:05:11,600 Speaker 1: then there are ads being served. Is there a distinction 93 00:05:11,680 --> 00:05:16,159 Speaker 1: to be made between the advertising that is purchased as 94 00:05:16,240 --> 00:05:21,680 Speaker 1: part of a big plan versus advertising that is involving 95 00:05:21,760 --> 00:05:25,920 Speaker 1: real time bidding based on the traffic that they get, right, 96 00:05:25,920 --> 00:05:27,840 Speaker 1: I mean real time bidding is more of the mechanics 97 00:05:27,920 --> 00:05:30,600 Speaker 1: of how brands can buy efficiency, and we support that. 98 00:05:30,680 --> 00:05:34,080 Speaker 1: We work without public companies such as credo um, private 99 00:05:34,200 --> 00:05:37,280 Speaker 1: big companies such as the Nexus and others that you're 100 00:05:37,279 --> 00:05:39,640 Speaker 1: touching A good point, which is the transition into this 101 00:05:39,839 --> 00:05:42,960 Speaker 1: content marketing right. Traditionally, we used to monetize the web, 102 00:05:43,279 --> 00:05:47,279 Speaker 1: a hundred and fifty billion dollar market online with banners 103 00:05:47,400 --> 00:05:50,080 Speaker 1: and all of us most of us stopped clicking on those. 104 00:05:50,520 --> 00:05:53,080 Speaker 1: And the transition that is going on is that brands 105 00:05:53,120 --> 00:05:56,159 Speaker 1: are becoming storytellers. They invest in the YouTube channel, they 106 00:05:56,240 --> 00:05:58,960 Speaker 1: invest in the corporate blog, they want to create relationship 107 00:05:59,000 --> 00:06:03,960 Speaker 1: with consumers. We to call them infomercials. That was another age, right, advertorial, informational. 108 00:06:04,040 --> 00:06:06,960 Speaker 1: But now you see brands with thousands of pieces of content, 109 00:06:07,440 --> 00:06:11,600 Speaker 1: really high quality content. American Express is open forum. Um. 110 00:06:11,640 --> 00:06:14,400 Speaker 1: You know, red Bullets sends people to the sky to 111 00:06:14,400 --> 00:06:16,599 Speaker 1: to film that on the video and and you've seen 112 00:06:16,640 --> 00:06:19,520 Speaker 1: people invest a lot in storytelling because what we see 113 00:06:19,560 --> 00:06:21,880 Speaker 1: now and we see that in a big way, is 114 00:06:21,920 --> 00:06:24,599 Speaker 1: that when someone with a piece of content they're engaged 115 00:06:24,640 --> 00:06:27,720 Speaker 1: with that, they will consider your products over time. So 116 00:06:27,960 --> 00:06:30,800 Speaker 1: I think Facebook is the largest discovery company. We got 117 00:06:30,880 --> 00:06:33,200 Speaker 1: a Facebook to see pictures of our friends. We end 118 00:06:33,240 --> 00:06:36,000 Speaker 1: up buying things we weren't sure we needed. But that 119 00:06:36,160 --> 00:06:39,560 Speaker 1: drove eighteen billion dollars of purchases last year to bullas 120 00:06:39,600 --> 00:06:42,120 Speaker 1: over half a billion dollars a year. And I think 121 00:06:42,120 --> 00:06:46,359 Speaker 1: this category will continue to grow as display and banners 122 00:06:46,520 --> 00:06:53,039 Speaker 1: will retransform into this in feed native field storytelling that's 123 00:06:53,080 --> 00:06:56,000 Speaker 1: been paid by top brands all over the world. The 124 00:06:56,080 --> 00:06:59,280 Speaker 1: video is where we started because of the purchase that 125 00:06:59,320 --> 00:07:03,560 Speaker 1: you just made of convert If you're in mobile and 126 00:07:03,640 --> 00:07:08,040 Speaker 1: you're in content, if you're not in video, you did. 127 00:07:08,920 --> 00:07:11,440 Speaker 1: I think it's a problem because I think video will 128 00:07:11,480 --> 00:07:15,120 Speaker 1: be a significant part of how mobile is monetized um 129 00:07:15,160 --> 00:07:17,720 Speaker 1: and a lot of it because the you know, mobile 130 00:07:17,800 --> 00:07:21,360 Speaker 1: is a great consumption device for video. If we hope 131 00:07:21,360 --> 00:07:24,320 Speaker 1: to become one of the largest TV companies out there, 132 00:07:24,720 --> 00:07:27,840 Speaker 1: streaming over one billion VA views a day, that's really 133 00:07:27,880 --> 00:07:30,000 Speaker 1: where we want to be. Thank you very much. Adam 134 00:07:30,080 --> 00:07:34,320 Speaker 1: Sinolda is the founder and the chief executive of Tabula. 135 00:07:34,880 --> 00:07:37,960 Speaker 1: This is taking Stock. Thank you for listening. I'm pim Fox. 136 00:07:38,360 --> 00:07:48,000 Speaker 1: This is Bloomberg coming up. Bloomberg Laws brought you by 137 00:07:48,080 --> 00:07:51,160 Speaker 1: Jaguar Manhattan. Visit Jaguar Manhattan today, where New York goes 138 00:07:51,200 --> 00:07:55,080 Speaker 1: for luxury, conveniently located at Eleventh Avenue. Went online at 139 00:07:55,120 --> 00:07:58,960 Speaker 1: Jaguar Manhattan dot com and Jaguar Manhattan is at your service.