WEBVTT - Figma Goes Public, CEO Field Sets Eyes on Growth 0:00:02.520 --> 0:00:12.880 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.960 --> 0:00:16.720 from coast to coast with Caroline Hyde in New York 0:00:17.040 --> 0:00:19.040 and Eva Low in San Francisco. 0:00:22.079 --> 0:00:24.280 This is Bloomberg Tech coming up. 0:00:24.320 --> 0:00:27.240 Figma CEO joins us live from the NYC Shares a 0:00:27.320 --> 0:00:30.880 due to start trading in one of the year's biggest IPOs. 0:00:31.320 --> 0:00:34.159 Plus Microsoft and Meta sore on the back of earnings 0:00:34.320 --> 0:00:38.320 and their big bets on AI. We'll also dive deep 0:00:38.600 --> 0:00:41.320 into the latest chip earnings. We speak with the CEOs 0:00:41.360 --> 0:00:45.600 of ARM and Qualcomm. We have a massive show for you. 0:00:45.640 --> 0:00:48.560 This is what the technology earning story looks like right 0:00:48.600 --> 0:00:51.280 now and last night, Microsoft are Meta dominating. 0:00:51.960 --> 0:00:52.720 Actually some of. 0:00:52.640 --> 0:00:54.600 The games have called off a little bit but very 0:00:54.600 --> 0:00:58.160 simple equation. We see AI fueled growth. The capex commitment 0:00:58.280 --> 0:01:00.360 is there, but on the top line, you're really starting 0:01:00.440 --> 0:01:03.720 to see AI maker contribution. Apple and Amazon are after 0:01:03.800 --> 0:01:06.440 the bell and that is a big focus because some 0:01:06.480 --> 0:01:08.319 of the themes are similar to Matter and Microsoft. 0:01:08.520 --> 0:01:09.000 Some are not. 0:01:09.200 --> 0:01:12.479 Tariffs a big equation, but Amazon under pressure to show 0:01:12.520 --> 0:01:14.840 it's keeping pace with the games. We saw in cloud 0:01:15.000 --> 0:01:18.720 from Microsoft last night, but remember Alphabet last week. Then 0:01:18.920 --> 0:01:22.199 there's the chip makers. Right shares of ARM under pressure 0:01:22.240 --> 0:01:25.600 as the chip maker posted second quarter results with we 0:01:25.720 --> 0:01:30.000 can then expected outlook for profit. Some were surprised by that. 0:01:30.120 --> 0:01:32.200 In an investor base, this is the company says they're 0:01:32.200 --> 0:01:36.000 going to increase spending to better capitalize on the AI 0:01:36.080 --> 0:01:38.600 boom for more delighted to say that. Were joined by 0:01:38.720 --> 0:01:41.680 Armed CEO Renee has Renee, good morning to you, welcome 0:01:41.680 --> 0:01:44.480 back to Bloomberg Technology. That there's actually like a lot 0:01:44.480 --> 0:01:47.840 of granular questions about what you're spending on, whether it's 0:01:47.880 --> 0:01:50.720 a kind of shift to offer more in the AI 0:01:50.800 --> 0:01:53.800 domain beyond the core CPU. Could you just explain a 0:01:53.800 --> 0:01:55.480 little bit of where that's based. 0:01:57.000 --> 0:01:59.840 Yeah, happy to and good morning Ain. Thanks for thanks 0:01:59.880 --> 0:02:02.440 for having me this morning. So a few things going 0:02:02.440 --> 0:02:05.120 on with our business. We just came off our first quarter. 0:02:05.200 --> 0:02:08.080 We're in our first fiscal year. We've never actually in 0:02:08.120 --> 0:02:10.560 the first quarter ever had a billion dollars in revenue. 0:02:11.160 --> 0:02:14.560 That that's a record. Our royalties are our way up 0:02:14.840 --> 0:02:18.520 twenty five percent year on year. But also what's fueling 0:02:18.760 --> 0:02:21.960 growth for us are these compute subsystems that we've talked about. 0:02:21.960 --> 0:02:25.560 We now have five customers shipping we had three customers 0:02:25.560 --> 0:02:28.519 in the last quarter that have taken on that product, 0:02:28.560 --> 0:02:32.080 two in the data center, one in PCs, and we 0:02:32.120 --> 0:02:35.680 also announced our automotive compute subsystems. All of that is 0:02:35.720 --> 0:02:39.120 fueling demand for more and more ARM technology across the board. 0:02:39.680 --> 0:02:41.960 We expect to be at the end of the year 0:02:42.280 --> 0:02:45.360 over fifty percent market share ARM CPUs in the data center. 0:02:45.919 --> 0:02:48.480 So as a result of all that, we are really 0:02:48.919 --> 0:02:51.679 doubling down on investing in this space. We see a 0:02:51.760 --> 0:02:55.840 huge opportunity for growth. We see huge opportunity for ARM 0:02:55.840 --> 0:02:59.640 based compute. We're the only AI compute platform that can 0:02:59.720 --> 0:03:02.560 run from very very small devices such as earbuds, milliwatts 0:03:03.120 --> 0:03:05.480 up in the data center, in the megawatts and gigawatts. 0:03:05.880 --> 0:03:10.359 So yes, we are investing more aggressively than we had anticipated, 0:03:10.680 --> 0:03:12.280 but I am very convenienced the right thing to do. 0:03:13.639 --> 0:03:18.160 You talked about Project Stargate as an opportunity, and that 0:03:18.240 --> 0:03:22.240 project uses ARM for the core CPU, right, But I 0:03:22.240 --> 0:03:24.440 think I'm right in saying you talked about there's a 0:03:24.520 --> 0:03:29.400 unique opportunity to provide solutions. Is that an expansion of 0:03:29.440 --> 0:03:32.440 the CPUIP or building on top of it, or are 0:03:32.440 --> 0:03:36.120 we talking about ARM moving into not just AI accelerators, 0:03:36.600 --> 0:03:39.840 but high performance compute systems more generally, that would represent 0:03:39.920 --> 0:03:42.360 quite a shift in the business model for you. 0:03:42.440 --> 0:03:43.680 Rene. 0:03:44.520 --> 0:03:49.040 Yeah, so Stargate is an amazing opportunity slash endeavor. I think, 0:03:49.040 --> 0:03:51.000 as you know, I'm not only the CEO of ARM, 0:03:51.000 --> 0:03:52.640 but I sit on the board of SoftBank, so I'm 0:03:52.680 --> 0:03:55.840 fairly close to what's going on with Stargate, which is 0:03:56.680 --> 0:04:00.160 a joint venture between soft Bank and open Ai about 0:04:00.200 --> 0:04:03.880 really bringing a huge amount of investment for data centers. 0:04:04.160 --> 0:04:06.880 We announced a five hundred billion dollar investment in January. 0:04:07.520 --> 0:04:09.480 I think when Mossa and Sam we're talking a couple 0:04:09.480 --> 0:04:11.680 of weeks ago, Sam had talked about expanding this out 0:04:11.680 --> 0:04:14.840 the ten gigawatts or the x number of years. That's 0:04:14.880 --> 0:04:18.479 a lot of compute and in a ten gigawatt investment 0:04:18.560 --> 0:04:21.640 or five hundred billion dollars, there's a lot of opportunity 0:04:21.640 --> 0:04:24.200 for innovation. Right now while we're talking about is the 0:04:24.240 --> 0:04:28.280 fact that we are the CPU of choice. Grace Blackwell 0:04:28.520 --> 0:04:30.760 is the device that's being used. I think, as you know, 0:04:30.880 --> 0:04:33.280 Grace is based on ARM. So right now, that's all 0:04:33.279 --> 0:04:36.200 we're saying publicly, but you can imagine with that type 0:04:36.240 --> 0:04:39.520 of investment. With those type of demands for compute and power, 0:04:39.640 --> 0:04:41.440 there's a lot of opportunity for ARM to do even 0:04:41.440 --> 0:04:42.360 more than we're doing today. 0:04:43.200 --> 0:04:45.800 But I think that's what the market is trying to understand. 0:04:45.839 --> 0:04:50.560 If more means more than enhancing the CPU IP and 0:04:50.600 --> 0:04:53.600 moving into more of the sack, basically is would that 0:04:53.680 --> 0:04:54.680 be a fair assessment. 0:04:55.760 --> 0:04:55.960 Yeah. 0:04:56.360 --> 0:04:58.400 What we said on the call yesterday is that we 0:04:58.440 --> 0:05:01.600 are now exploring those opportunity and they can come in 0:05:01.720 --> 0:05:05.120 latch and WAT shapes or forms. Doesn't necessarily need to 0:05:05.160 --> 0:05:08.719 be an end solution. There are things such as chiplets. 0:05:09.120 --> 0:05:13.559 These are essentially computer subsystems that use RP but deliver 0:05:13.600 --> 0:05:16.200 in the physical form. One of the things that we 0:05:16.279 --> 0:05:19.960 see with these data centers is that customization allows for 0:05:20.000 --> 0:05:23.200 a lot of opportunity to increase performance and power efficiency. 0:05:23.720 --> 0:05:25.919 So we have a lot of optionality in terms of 0:05:25.960 --> 0:05:28.600 what we do there, and we're looking at everything right now. 0:05:30.279 --> 0:05:32.480 The shares are down more than eleven percent and at 0:05:32.520 --> 0:05:34.560 one point in the session on track for their biggest 0:05:34.600 --> 0:05:39.600 drop since last August. What you said about new licensing activity, 0:05:39.640 --> 0:05:43.039 which I think appears to have taken a bit of 0:05:43.080 --> 0:05:46.000 a pause, is that that is a normal fluctuation that 0:05:46.040 --> 0:05:49.920 you see, But why should investors not be so concerned 0:05:49.920 --> 0:05:52.279 about that? And I'm just going off off of the 0:05:52.360 --> 0:05:55.320 share reaction as we have it to last night's print. 0:05:55.960 --> 0:05:58.480 Yeah, yeah, you know, as far as the share reaction, 0:05:58.600 --> 0:06:00.760 you know, really can't comment on that. But one of 0:06:00.839 --> 0:06:04.080 the things about our licensing activity is that it is 0:06:04.680 --> 0:06:07.680 it's pretty robust and pretty sticky. What do I mean 0:06:07.720 --> 0:06:11.279 by that? So these compute subsystems that we're licensing, we're 0:06:11.279 --> 0:06:14.040 actually now on the second generation of licensing those That 0:06:14.120 --> 0:06:18.080 means customers who have licensed the previous generation are now 0:06:18.160 --> 0:06:21.880 licensing the next generation. The reason that we have such 0:06:21.920 --> 0:06:25.880 good continuity in our licensing activity is that the software 0:06:25.960 --> 0:06:30.919 that runs on ARM is so ubiquitous that the change 0:06:31.080 --> 0:06:35.279 to a different architecture alternative, it's a pretty large lift 0:06:35.480 --> 0:06:38.440 that consumers really would not see much benefit from. So 0:06:39.120 --> 0:06:41.880 what we think we see in licensing is from quarter 0:06:41.920 --> 0:06:44.440 to quarter it may be a little bit lumpy, meaning 0:06:44.480 --> 0:06:47.160 that a deal that could have signed in June may 0:06:47.160 --> 0:06:50.000 sign in July, and that may affect the financials, But 0:06:50.080 --> 0:06:52.240 in terms of the overall health of the trajectory of 0:06:52.240 --> 0:06:55.200 the license activity, it's very very strong. We've seen record 0:06:55.279 --> 0:06:58.880 licensing revenue over the last number of years, and people 0:06:58.920 --> 0:07:02.000 have just thought, could your licensing revenue really grow given 0:07:02.040 --> 0:07:06.200 the market share is so high, But we see growth rene. 0:07:06.200 --> 0:07:08.240 Some of the math that everyone's trying to do on 0:07:08.360 --> 0:07:10.560 tariffs is how much of a pull in or pull 0:07:10.640 --> 0:07:13.800 forward there was in one age? So what were you 0:07:13.880 --> 0:07:16.160 seeing in terms of orders coming in for the first 0:07:16.200 --> 0:07:19.040 half that may not materialize in the second half if 0:07:19.040 --> 0:07:21.560 people were trying to front run the impact of tariffs 0:07:21.640 --> 0:07:23.000 in the end markets you work. 0:07:22.840 --> 0:07:27.760 With, Yeah, we're not feeling that very much. And part 0:07:27.760 --> 0:07:30.080 of the reason for that is again when we went 0:07:30.120 --> 0:07:33.320 to our new compute subsystems, that the royalty rates are 0:07:33.400 --> 0:07:37.160 much higher than what we traditionally had seen. We grow 0:07:37.240 --> 0:07:39.360 much faster than the market. You know, what does that mean? 0:07:40.280 --> 0:07:42.680 We were up twenty five percent year on year in 0:07:42.760 --> 0:07:45.120 terms of royalties. Some of the end markets that we 0:07:45.120 --> 0:07:48.160 would participate in we're up single digits in some cases 0:07:48.200 --> 0:07:52.080 one to two percent. So we're really not seeing, as 0:07:52.080 --> 0:07:55.040 far as I can tell, any effect of people pulling 0:07:55.040 --> 0:07:57.520 ahead orders because the tariffs et cetera, et cetera. I 0:07:57.560 --> 0:08:00.360 think what we're seeing is our royalty growth really being 0:08:00.400 --> 0:08:03.000 fueled by investments we made a number of years ago 0:08:03.440 --> 0:08:04.920 around these computer subsystems. 0:08:06.280 --> 0:08:08.320 A renee just there with me, please if you will. 0:08:08.320 --> 0:08:10.960 Have got some breaking news. The President has posted on 0:08:11.000 --> 0:08:14.200 true social that he has extended a tariff deal with 0:08:14.280 --> 0:08:18.480 Mexico for ninety days. He had a phone call with 0:08:18.560 --> 0:08:22.240 Shinebomb and is extending the tariff deal with Mexico for 0:08:22.360 --> 0:08:24.680 ninety days. Will bring more to our audience on that 0:08:24.720 --> 0:08:27.680 as we get it and more analysis Mexico to pay 0:08:27.680 --> 0:08:32.200 a fifty percent tariff on aluminum and copper. If tariffs 0:08:32.280 --> 0:08:34.280 is not that that signal for you, Rena in the 0:08:34.280 --> 0:08:36.960 second half of this year, What are the headwinds that 0:08:37.000 --> 0:08:38.839 you baked into your projections? 0:08:40.640 --> 0:08:43.600 You know, the geopolitics and tariffs and things of that 0:08:43.679 --> 0:08:46.880 nature are still something we're all learning about as an industry. 0:08:47.280 --> 0:08:50.280 So as a result, we didn't give full your guidance. 0:08:50.320 --> 0:08:53.160 We haven't didn't do that in the last quarter. So 0:08:53.880 --> 0:08:55.320 we're trying to get a handle in terms of what 0:08:55.360 --> 0:08:57.480 the next six months look like. But I would say 0:08:57.480 --> 0:09:01.360 the fundamentals are very very strong. Again when you look 0:09:01.360 --> 0:09:03.080 at the share that we're gaining in the data center, 0:09:03.120 --> 0:09:05.280 almost fifty percent by the end of the year, all 0:09:05.320 --> 0:09:09.400 the growth of AI, stargate being a huge opportunity for US, 0:09:09.960 --> 0:09:12.959 and ARM being the only compute platform that can address 0:09:13.000 --> 0:09:16.559 AI from the smallest of devices to the very largest. 0:09:17.080 --> 0:09:19.400 We're very, very bullish in terms of long term demand. 0:09:19.720 --> 0:09:21.800 The quarter to the quarter tear of things. We'll just 0:09:21.840 --> 0:09:23.320 have to say how those all settle out over the 0:09:23.320 --> 0:09:25.439 next number of months and days. 0:09:26.040 --> 0:09:27.120 Rene really really quick. 0:09:27.120 --> 0:09:31.160 You've made some gains into automotive, which I find absolutely fascinating. 0:09:31.600 --> 0:09:34.080 Just explain the outlook for that business and where the 0:09:34.160 --> 0:09:34.720 traction is. 0:09:36.320 --> 0:09:39.880 Yeah, thank you for asking. It's actually a very similar 0:09:39.920 --> 0:09:42.400 story to some of the other markets that we serve in. 0:09:42.440 --> 0:09:44.960 And by that, what do I mean? And first off, 0:09:45.040 --> 0:09:49.640 power efficiency really matters, particularly in these evs where the 0:09:49.679 --> 0:09:54.360 compute requirements for autonomous driving is very very high. There's 0:09:54.440 --> 0:09:56.679 a lot of software that's now been ported and written 0:09:56.720 --> 0:09:59.920 to ARM. If you look at the players in this area, 0:10:00.200 --> 0:10:02.640 whether it's Tesla doing their own ships or in Video 0:10:02.720 --> 0:10:05.839 or Qualcom, all those compute chips are based on ARM. 0:10:06.040 --> 0:10:10.600 ARM is the compute platform for autonomous and as more 0:10:10.679 --> 0:10:14.439 and more computer requirements go up, power efficiency being a 0:10:14.520 --> 0:10:18.000 very very big key, that's a very very good trajectory 0:10:18.000 --> 0:10:20.480 for us in the long run, and again it follows 0:10:20.480 --> 0:10:23.280 a very similar formula we see in other markets. 0:10:23.320 --> 0:10:26.679 Renee very quickly, Christiano Amon is on later in the hour. 0:10:26.960 --> 0:10:30.480 Investors want you to and are asking when you'll bury 0:10:30.520 --> 0:10:33.040 the hatchet and go back to being the important long 0:10:33.120 --> 0:10:34.199 term partners that you were. 0:10:36.320 --> 0:10:39.160 Qualcom's a great partner. They do a lot of business 0:10:39.200 --> 0:10:41.320 with ARM. As you know, we are in the litigation 0:10:41.400 --> 0:10:43.920 with them that is still ongoing, so I can't comment 0:10:43.960 --> 0:10:47.400 on that. But Qualcom is a long term partner of 0:10:47.520 --> 0:10:49.120 ARM and they have a lot of products based on us. 0:10:49.120 --> 0:10:52.760 As you know, renee Haus of ARM. Really appreciate your 0:10:52.800 --> 0:10:55.079 time on Bloomberg Tech. Thank you very much. More on 0:10:55.120 --> 0:10:57.400 the chip sector. As I said, Christiano, I'm on the 0:10:57.480 --> 0:11:00.160 Qualcom CEO will be on later in the hour with 0:11:00.200 --> 0:11:04.280 the latest on their earnings and up next, FIGMA CEO 0:11:04.440 --> 0:11:08.040 Dylan Field joins us. This is company goes public. We'll 0:11:08.080 --> 0:11:09.760 head down to the New York Stock Exchange for that 0:11:09.840 --> 0:11:11.559 conversation that's next. 0:11:11.600 --> 0:11:12.760 This is Bloomberg Tech. 0:11:17.120 --> 0:11:20.800 To our world TV and radio audiences. Hi, welcome you 0:11:20.840 --> 0:11:23.560 back to Bloomberg Tech outside the New York Stock Exchange 0:11:23.840 --> 0:11:27.959 sat with the latest listing. The CEO of Figma, Dylan Field, 0:11:28.040 --> 0:11:32.560 joins me now and to your thirteen million users, to 0:11:32.760 --> 0:11:37.160 the thousands of global employees worldwide, how's it feel tomorrow? 0:11:37.760 --> 0:11:40.160 It feels surreal And just thank you for having me 0:11:40.600 --> 0:11:43.240 and for being here with us today. It's just amazing 0:11:43.280 --> 0:11:46.480 to see the community turn out and also just to 0:11:46.559 --> 0:11:50.880 view with the team the contributions of fig Maine's past present, 0:11:51.440 --> 0:11:53.480 and also just all the things we've learned and contin 0:11:53.559 --> 0:11:55.599 to learn from our community. They all just kind of 0:11:55.600 --> 0:11:59.760 show up today in physical manifestation and I can be 0:11:59.840 --> 0:12:00.480 more grateful. 0:12:00.679 --> 0:12:03.720 I mean, the vibes, there's a like DJ there's so 0:12:03.800 --> 0:12:06.280 many of your employee base, as you say, your figmates, 0:12:06.280 --> 0:12:08.880 those who have batch you early. Why this Why does 0:12:09.200 --> 0:12:10.880 what does it show about your community? 0:12:11.520 --> 0:12:13.920 Well, I mean what we really wanted to do is 0:12:13.960 --> 0:12:17.880 involve the design community in this experience today that we're having, 0:12:18.360 --> 0:12:22.040 because I think it's not just that Figma's going public today. 0:12:22.800 --> 0:12:26.600 Design is going public today. Yeah, And if you think 0:12:26.640 --> 0:12:30.760 back several decades, you know, back, you know, twenty years ago, 0:12:32.040 --> 0:12:35.000 the sort of mindset was that design was lipstick on 0:12:35.040 --> 0:12:37.959 a pig. This is how you make it pretty, and 0:12:39.360 --> 0:12:42.559 maybe a decade ago it was design is how it works. 0:12:42.840 --> 0:12:45.280 And then today you know, twenty twenty. 0:12:45.120 --> 0:12:50.480 Five, in a world where software accomplish is increasing so much, 0:12:51.120 --> 0:12:54.719 it's easier than ever to create software. Yes, I think 0:12:54.800 --> 0:12:58.000 we're now in a world where design is the differentiator. 0:12:58.320 --> 0:13:00.000 That's been our thesis for ten years. We've seen it 0:13:00.080 --> 0:13:03.319 play out, but it's even more clear now the design 0:13:03.840 --> 0:13:07.720 craft point of view. That's what sets companies apart, and 0:13:07.800 --> 0:13:11.559 so we're just trying to be this engine for product 0:13:11.640 --> 0:13:15.160 sign and development. And to be able to celebrate design 0:13:15.160 --> 0:13:18.480 today with all of our friends and community is such 0:13:18.480 --> 0:13:19.760 a privilege. 0:13:19.280 --> 0:13:22.360 What sets you apart to be able to enable design 0:13:22.559 --> 0:13:26.080 versus the whole plethora of generative AI startups that is 0:13:26.120 --> 0:13:29.480 suddenly hearing on these seat and making things very cheap 0:13:29.559 --> 0:13:30.040 to build. 0:13:30.040 --> 0:13:32.720 To say, as you say, design, yeah, I think that 0:13:34.120 --> 0:13:37.280 there's such an opportunity for us with Pigma Make to 0:13:37.360 --> 0:13:41.280 be able to help people go from prompt all the 0:13:41.280 --> 0:13:45.240 way to app and we're very focused on that and 0:13:45.320 --> 0:13:46.600 improving that surface area. 0:13:47.160 --> 0:13:49.800 We have so much more to come there, but already 0:13:49.920 --> 0:13:53.640 you can not only do things through prompting, but. 0:13:53.600 --> 0:13:55.199 You can also copy and paste. 0:13:54.960 --> 0:13:59.000 Things in from your Pigma design your canvas into FIGA make. 0:14:00.280 --> 0:14:02.760 There are times you want to edit via prompt. There 0:14:02.760 --> 0:14:04.840 are also times you want to edit in a more 0:14:04.840 --> 0:14:08.240 direct manipulation way where you go into the canvas and 0:14:08.240 --> 0:14:10.560 you're able to see many different options in the option space. 0:14:11.000 --> 0:14:12.720 We think both are important and both. 0:14:12.520 --> 0:14:15.280 Have to work really well together, and so that's something 0:14:15.280 --> 0:14:18.720 we're excited to uniquely enable. And I just think in general, 0:14:18.760 --> 0:14:21.040 we're kind of in this ms dos era of AI 0:14:21.720 --> 0:14:23.480 and if we're able to get to the point where 0:14:23.520 --> 0:14:26.000 we really well it was true. And if we're able 0:14:26.040 --> 0:14:28.720 to get to the point I mean I used to 0:14:28.760 --> 0:14:30.560 say tellnet era and people are like, let's tell net 0:14:30.680 --> 0:14:32.600 so you know, stop for that and went down as das. 0:14:33.040 --> 0:14:35.120 But if we're able to get to this point where 0:14:35.120 --> 0:14:39.040 people can really explore the latent space of these models 0:14:39.400 --> 0:14:42.360 and what we generated and see the entire option space 0:14:42.720 --> 0:14:47.080 of what they can do, then humans designers can add 0:14:47.120 --> 0:14:50.840 that craft yeah, and really figure out how to differentiate 0:14:51.120 --> 0:14:53.120 and also the system in their head, not just the 0:14:53.160 --> 0:14:57.120 design and the technology system, but also the business constraints. 0:14:57.400 --> 0:14:59.840 And that's why it's important to over the floor is ceiling, 0:15:00.360 --> 0:15:02.600 bring more people into the design process. 0:15:03.520 --> 0:15:06.040 So that one point two billion dollars that you raised 0:15:06.120 --> 0:15:07.560 through this process, where. 0:15:07.440 --> 0:15:07.840 Does that go? 0:15:07.920 --> 0:15:10.640 Where does that get allocated to ensure that you're building well. 0:15:10.680 --> 0:15:12.880 So one thing that was unique for the transaction was 0:15:13.320 --> 0:15:15.720 because of the cash balance we have at Pigma. 0:15:16.400 --> 0:15:16.880 You know, due to. 0:15:17.000 --> 0:15:20.560 Rounds we've raised but never really used cash that we've generated, 0:15:20.600 --> 0:15:24.120 and also the break up fee, we had quite a 0:15:24.120 --> 0:15:28.520 cash balance. And so it's a transaction that is a 0:15:28.520 --> 0:15:32.200 lot of secondary and then there's some primary, but mostly 0:15:32.200 --> 0:15:35.400 for the release of RSUs and so it's more synthetic 0:15:35.720 --> 0:15:40.120 primary and the U. So I mean we already have 0:15:40.280 --> 0:15:42.760 quite the cash balance, it's more less what we're exiting 0:15:43.120 --> 0:15:44.040 the transaction with. 0:15:44.840 --> 0:15:46.600 And when we think. 0:15:46.440 --> 0:15:49.960 About the future of how to deploy that. First of all, 0:15:50.000 --> 0:15:52.120 we want to be good scom Stewart's of capital always. 0:15:52.640 --> 0:15:55.880 But I did put my founder letter in the S one. Yeah, 0:15:56.240 --> 0:15:58.560 expect us to make old moves. And I want people 0:15:58.560 --> 0:16:00.000 to know that in the US, in the community because 0:16:00.000 --> 0:16:03.160 as we're going to invest in AI, we're going into 0:16:03.160 --> 0:16:06.040 an investment cycle here and it's important people are aware 0:16:06.080 --> 0:16:06.360 of that. 0:16:06.760 --> 0:16:08.920 You are going to invest, you're not going to be 0:16:09.000 --> 0:16:11.800 focusing on profitability, you'll be focusing on growth. 0:16:11.960 --> 0:16:14.280 We are focusing on growth, and we're focusing on all 0:16:14.320 --> 0:16:15.760 the great things that we can do right now and 0:16:15.840 --> 0:16:18.240 enable for our users, the value we can create for 0:16:18.240 --> 0:16:19.360 our customers. 0:16:18.960 --> 0:16:21.200 Using the public markets are going to give you that mandwidth. 0:16:21.600 --> 0:16:24.200 Well, that's their choice. That's why I want to make 0:16:24.200 --> 0:16:26.360 sure I call it out upfront. Yeah, And another thing 0:16:26.360 --> 0:16:28.880 that I think is important to note is in terms 0:16:28.880 --> 0:16:32.120 of big swings, I can't say when or if, but 0:16:33.560 --> 0:16:35.880 my intention is to do big swings when it comes 0:16:35.920 --> 0:16:36.720 to scaled M and. 0:16:36.720 --> 0:16:41.000 A and well a lot of companies. Well, when I think. 0:16:40.840 --> 0:16:45.640 About how we approach the process, we're always surveying, we're 0:16:45.640 --> 0:16:50.840 always trying to learn, and there's so much that can 0:16:51.440 --> 0:16:53.560 be applicable of FIGMA when you think of the breadth 0:16:53.600 --> 0:16:56.600 of product design and development and that entire process which 0:16:56.880 --> 0:16:59.680 we're really trying to cover. And not all the gaps 0:16:59.720 --> 0:17:01.720 we have will be filled with us building, our buying. 0:17:01.760 --> 0:17:04.680 A lot of them will be partnerships. But I wanted 0:17:04.680 --> 0:17:05.000 to call. 0:17:04.920 --> 0:17:07.760 It out because for skilled MNA, as you do that, 0:17:08.280 --> 0:17:09.919 it is often misinterpreted by markets. 0:17:09.920 --> 0:17:11.000 It creates volatility. 0:17:12.160 --> 0:17:15.280 People get, you know, sometimes they don't understand the really 0:17:15.320 --> 0:17:19.199 good stuff and obviously will be prudent. You know, it 0:17:19.240 --> 0:17:22.840 has to be an amazing team, an amazing asset has 0:17:22.920 --> 0:17:25.800 to be something that we think that the team is 0:17:26.200 --> 0:17:30.520 culturally consistent the least, but preferably culture ad Yeah, and 0:17:30.520 --> 0:17:32.480 they're going to create new dimensionality to our culture that 0:17:32.520 --> 0:17:34.400 we didn't have before, and we're going to learn from them. 0:17:34.840 --> 0:17:37.119 But third and most importantly, it has to be a 0:17:37.160 --> 0:17:40.800 main priority going forward. That's the minimum, and we will 0:17:40.840 --> 0:17:43.640 hold a high bar for what we if and when 0:17:43.680 --> 0:17:45.400 we do that to our TV. 0:17:45.280 --> 0:17:46.160 And radio audiences. 0:17:46.160 --> 0:17:48.280 We're with Dylan Field, the CEO of Figma, which has 0:17:48.320 --> 0:17:50.440 just gone public, And if we cast our minds back, 0:17:50.880 --> 0:17:53.679 the valuation that you're currently at looks at about twenty 0:17:53.680 --> 0:17:56.120 million dollars and that was the amount that Adobe wanted 0:17:56.160 --> 0:17:58.920 to pay to buy you that didn't work out. Just 0:17:58.960 --> 0:18:00.800 talking about M and A, was this the right. 0:18:00.680 --> 0:18:01.720 Path to be independent? 0:18:01.760 --> 0:18:02.720 How does that make you feel? 0:18:03.080 --> 0:18:06.479 I mean, you've been so focused on this path for 0:18:06.600 --> 0:18:10.240 years now, and I'm just really excited to be here today. 0:18:10.960 --> 0:18:15.760 The Adobe stuff kind of feels like so long ago now. Yeah, 0:18:16.280 --> 0:18:19.040 and yeah, just as we look forward, I mean, there's 0:18:19.080 --> 0:18:22.439 so much to build in such breadth of opportunity. 0:18:22.880 --> 0:18:25.280 We have, like I said the founder letter, more ideas 0:18:25.280 --> 0:18:25.640 than ever. 0:18:25.960 --> 0:18:29.160 Yeah, and it's all about prioritization and it's all about 0:18:29.200 --> 0:18:31.560 clarity for the team. And that's what we're trying to do, 0:18:31.680 --> 0:18:32.680 is to create that clarity. 0:18:33.000 --> 0:18:35.520 I mean talking about demand. You are forty times over 0:18:35.600 --> 0:18:38.679 subscribed to those retail investors that want to get in 0:18:38.720 --> 0:18:40.960 on this, what do you say for the short term 0:18:41.000 --> 0:18:41.800 if the shares pop? 0:18:43.320 --> 0:18:45.560 The only message I can give you if you're on 0:18:45.600 --> 0:18:49.359 the retail side is understand what we do. We have 0:18:49.440 --> 0:18:51.720 our s one out there. We've done our best to 0:18:51.760 --> 0:18:55.040 present it in a really readable way of read the 0:18:55.080 --> 0:19:01.280 document and look at our numbers. Understand where we're headed 0:19:01.960 --> 0:19:05.960 and what we offer. Play with a product, you know, 0:19:06.200 --> 0:19:09.720 become a designer. I think you know that's true for 0:19:09.760 --> 0:19:12.280 a lot of people and a lot of companies. If 0:19:12.280 --> 0:19:14.600 designs how you win or lose. You speak part of 0:19:14.640 --> 0:19:17.280 the process too. But the more you can dive in 0:19:17.400 --> 0:19:19.520 and the better you can understand it, the better you 0:19:19.560 --> 0:19:21.920 can make a decision on things. And that's the main 0:19:21.920 --> 0:19:24.879 advice they give anyone, whether they're joining Figma, trying to 0:19:24.920 --> 0:19:27.960 invest in Figma. Those are both investments. Yeah, of time 0:19:28.520 --> 0:19:31.360 of money, and that's important. Is so deeply understanding. 0:19:31.760 --> 0:19:35.320 Dylan Fields, CEO of Figma, on the day of their 0:19:35.320 --> 0:19:37.720 IPO from the New York Souck Exchange head back. 0:19:37.640 --> 0:19:41.520 To you, Caroline down the NYSC with still a waiting 0:19:41.560 --> 0:19:43.360 trading for Figma and it is one of the most 0:19:43.400 --> 0:19:47.280 anticipated IPOs of the year. Now some breaking news, President 0:19:47.359 --> 0:19:50.720 Trump announcing moments ago on truth Social that the current 0:19:50.800 --> 0:19:54.760 tariff rates for Mexico have been extended for another ninety days. 0:19:54.800 --> 0:19:56.280 Let's get out to Washington, d C. 0:19:56.400 --> 0:19:58.840 Blombos Tyler Kendall, And a part of this is the 0:19:58.840 --> 0:20:02.280 President explained it Tyler to allow more time for negotiation 0:20:02.480 --> 0:20:04.639 between Mexico and the United States. 0:20:05.560 --> 0:20:06.240 Right exactly. 0:20:06.359 --> 0:20:08.439 Ed. He says that there will be an additional ninety 0:20:08.520 --> 0:20:10.600 days and they'll hope to in some sort of trade 0:20:10.640 --> 0:20:13.119 agreement in that time. But he did write in that 0:20:13.160 --> 0:20:15.679 post on truth Social that it could be even extended 0:20:15.760 --> 0:20:19.040