WEBVTT - Disney Tops Estimates and a New AI Pin 0:00:01.240 --> 0:00:04.880 From the Heart where Innovation, money and power Collie in 0:00:05.000 --> 0:00:06.520 Silicon Valley, NBN. 0:00:06.840 --> 0:00:10.879 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:24.560 --> 0:00:27.040 I'm Caroline Heide a Bloomberg's World headquarters in New York. 0:00:26.880 --> 0:00:29.280 And I met Loudload. This is Bloomberg Technology. 0:00:29.360 --> 0:00:29.720 Coming up. 0:00:29.760 --> 0:00:32.040 We'll kick off our earnings coverage with a breakdown of 0:00:32.080 --> 0:00:35.879 Disney's results as the Mousehouse beats expectations, but is it 0:00:36.000 --> 0:00:36.920 enough to fend off. 0:00:36.760 --> 0:00:37.720 The activist investor. 0:00:37.920 --> 0:00:41.000 Passier's coverage continues as we sit down for interviews with 0:00:41.080 --> 0:00:44.519 the CEOs of lift, Arm and Affirm and Airbnb has 0:00:44.520 --> 0:00:45.600 some AI news. 0:00:45.920 --> 0:00:48.199 And talking AI news. We're going to be joined by 0:00:48.200 --> 0:00:51.120 Bethany Bongiono, the CEO of Humane. 0:00:50.640 --> 0:00:53.600 As her company unveils it's hotly anticipated aipin. 0:00:54.080 --> 0:00:55.360 We're going to replace the need for an. 0:00:55.240 --> 0:00:58.880 iPhone, a product she helped build. That and so much 0:00:58.920 --> 0:00:59.959 more coming up throughout the South. 0:01:00.400 --> 0:01:05.279 The big earning story Disney. The story continued cost cutting 0:01:05.280 --> 0:01:08.080 two billion dollars of additional savings, narrowing losses on the 0:01:08.080 --> 0:01:12.200 streaming business. The Bobbeiger effect is working, but there some 0:01:12.240 --> 0:01:13.480 activism still top of mind. 0:01:13.520 --> 0:01:14.880 Carrect that is and has. 0:01:14.720 --> 0:01:17.640 This been enough to asswage Of course, mister Pelts, when 0:01:17.640 --> 0:01:20.240 it comes to the focus on this company disney earnings, 0:01:20.240 --> 0:01:23.200 we want to dig in deep need of senior entertainment 0:01:23.200 --> 0:01:24.160 and Internet analyst. 0:01:24.400 --> 0:01:26.319 I'm very pleased to welcome Laura Martin Nora. 0:01:27.040 --> 0:01:30.200 Ultimately, the cost saving strategy, the fact that he's pulling 0:01:30.200 --> 0:01:32.840 back on spending on content and maybe even shedding yet 0:01:32.880 --> 0:01:35.680 more jobs, is it enough to assuage some of those concerns? 0:01:36.959 --> 0:01:39.680 You know, I don't think so, because they just did 0:01:39.760 --> 0:01:42.840 twenty seven billion of content spending and it should have 0:01:42.840 --> 0:01:45.520 been thirty because we had strikes most of their fiscal 0:01:45.600 --> 0:01:48.080 year at the Walt Disney Company. Now he's saying I 0:01:48.240 --> 0:01:50.240 you're saying he's going to cut another two billion out 0:01:50.240 --> 0:01:53.040 of content. If you're a content company, first, how do 0:01:53.120 --> 0:01:56.560 you cut spending lower than a strike year? So I 0:01:56.560 --> 0:01:59.520 think either he won't be successful or the subsequent year 0:01:59.520 --> 0:02:00.760 he's going to have to spend a. 0:02:00.680 --> 0:02:02.240 Lot more to try to catch up. 0:02:02.520 --> 0:02:05.000 Otherwise it's going to start. He had very nice subscriber 0:02:05.040 --> 0:02:07.880 growth for his direct to consumer business, seven million subs, 0:02:08.080 --> 0:02:11.120 the most of any streaming company adds in the September quarter. 0:02:11.840 --> 0:02:12.400 If he doesn't. 0:02:12.480 --> 0:02:15.120 If he cuts content costs again, he's suddenly gonna have 0:02:15.160 --> 0:02:18.120 a horrible direct to consumer sub number. And so I 0:02:18.160 --> 0:02:21.440 actually don't think I don't think this will assuage Nelson Peltzenordo. 0:02:21.480 --> 0:02:23.359 I think this is a long term strategy to cut 0:02:23.360 --> 0:02:24.400 your content costs. 0:02:24.520 --> 0:02:27.200 You know, Laura, the streaming business is still such an 0:02:27.240 --> 0:02:30.799 interesting battleground. The company basically said that by the fourth 0:02:30.880 --> 0:02:35.200 quarter of the fiscal year we've entered, streaming can be profitable, 0:02:35.680 --> 0:02:39.320 which given everything you've just outlined, it's hard to see. 0:02:39.680 --> 0:02:40.360 Do you see that. 0:02:42.360 --> 0:02:44.440 You know, he's promised it for the last two years, 0:02:44.480 --> 0:02:46.600 you know, since he got there eleven months ago or 0:02:46.600 --> 0:02:48.600 twelve months. So the answer is he sort of has 0:02:48.639 --> 0:02:50.840 to make it profitable. I think the question I have 0:02:51.160 --> 0:02:54.919 is will they do transfer pricing? Because when they put 0:02:54.919 --> 0:02:57.520 a movie on the big screen like Avatar, and then 0:02:57.520 --> 0:02:59.919 they bring it to streaming, how much do they really 0:03:00.120 --> 0:03:05.119 charge the streaming entity for Avatar versus the linear TV 0:03:05.200 --> 0:03:07.760 business or the movie business. So I sort of think 0:03:07.760 --> 0:03:10.760 there's some transfer prising there that he can make streaming 0:03:10.760 --> 0:03:13.600 look like is profitable, even if technically if it was 0:03:13.600 --> 0:03:16.000 a standalone company it would not be so he'll hit 0:03:16.040 --> 0:03:17.840 it from a P and L point of view. But 0:03:17.919 --> 0:03:20.760 that sort of begs the question about returns on invested capital, 0:03:21.280 --> 0:03:23.400 and he said on the call he really needs to 0:03:23.440 --> 0:03:26.040 get better content. They make too much content, and the 0:03:26.080 --> 0:03:29.840 Marvel stuff especially isn't really working any longer. So we 0:03:29.960 --> 0:03:32.960 need to get more hit films and hit series out 0:03:33.000 --> 0:03:34.120 of the Walt Disney company. 0:03:34.200 --> 0:03:38.040 Now, timing is everything. Sometimes the big headline the actors 0:03:38.120 --> 0:03:42.720 strike ends after one hundred and eighteen days. Why is 0:03:42.800 --> 0:03:45.320 that important now for a company like Disney. 0:03:46.680 --> 0:03:49.880 So it's really important for companies like Disney, Warner Brothers, 0:03:49.920 --> 0:03:53.120 and Fox because they have this really robust linear TV 0:03:53.320 --> 0:03:58.360 payment stream coming from their broadcast television, their ABC, CBS, 0:03:58.360 --> 0:04:02.520 and NBC like Comcast, and without that, Netflix has been 0:04:02.600 --> 0:04:05.960 exactly presitioned for them. Like that's their competitive avantage over 0:04:06.000 --> 0:04:08.640 Netflix is they have these lovely TV series that are 0:04:08.960 --> 0:04:09.800 decades old. 0:04:10.120 --> 0:04:11.320 All of those have been shut. 0:04:11.120 --> 0:04:13.400 Down because the writers and then the actors went on 0:04:13.480 --> 0:04:16.800 straight so all their sort of offerings looked exactly like 0:04:16.960 --> 0:04:19.360 Netflix offerings. So that's bad for them. Now they're going 0:04:19.400 --> 0:04:22.640 back to work, They're going to get more television content. 0:04:22.800 --> 0:04:26.360 New episodes forty minute episodes that strategically is better for 0:04:26.400 --> 0:04:29.240 them compared to the Netflix competition, because Netflix has none 0:04:29.279 --> 0:04:29.440 of that. 0:04:30.240 --> 0:04:33.279 Meanwhile, they're going to be folding in Kulu testing out 0:04:33.320 --> 0:04:35.839 how it is to have it all under one over 0:04:35.920 --> 0:04:38.640 the top product being offered come December. They're also, though 0:04:39.000 --> 0:04:41.120 still eyeing what on earth they already do with ESPN 0:04:41.200 --> 0:04:43.160 to make it the digital force they want it to be. 0:04:43.520 --> 0:04:44.040 Where do you. 0:04:44.040 --> 0:04:48.800 Sit on the m and a storyline coming from CEO 0:04:48.880 --> 0:04:50.359 right now. 0:04:50.160 --> 0:04:52.400 Well, we would like to see Apple by Disney, but 0:04:52.480 --> 0:04:53.680 that's an Apple question. 0:04:53.520 --> 0:04:55.800 Sloans alone. I think you're not the only one that 0:04:55.880 --> 0:05:00.680 thinks that, Laura, So, but I. 0:05:00.640 --> 0:05:04.119 Do think this notion of Disney plus plus Hulu into 0:05:04.120 --> 0:05:07.360 a mega app is a good idea. We saw HBO 0:05:07.480 --> 0:05:10.560 Max merge with Discovery Plus making a mega app. I 0:05:10.600 --> 0:05:13.239 do think that's where the world's going. Those mega apps 0:05:13.279 --> 0:05:18.240 are much more competitive with Netflix than standalone two different apps. 0:05:18.520 --> 0:05:21.160 And then on ESPN, what they said was they're talking 0:05:21.200 --> 0:05:23.800 to lots of partners because they want to create a 0:05:23.920 --> 0:05:27.520 new ESPN streaming app that's sort of like corners of 0:05:27.520 --> 0:05:31.560 the market on sports streaming. And so I'm very intrigued 0:05:31.600 --> 0:05:34.400 by who that might be whether it's Amazon or Apple 0:05:34.640 --> 0:05:37.440 or Verizon or they you know, they said it might 0:05:37.440 --> 0:05:41.560 be marketing support or distribution support or rights. I thought 0:05:41.839 --> 0:05:44.240 ESPN already had all the rights, but maybe not. So 0:05:44.560 --> 0:05:46.880 I'm very intrigued by ESPN. But to me, that's a 0:05:46.920 --> 0:05:49.600 little longer, he said, at the earliest, that's going to 0:05:49.640 --> 0:05:52.640 be a twenty twenty four to twenty twenty five launch. 0:05:52.720 --> 0:05:55.000 So I'm much more interested short term in the Disney 0:05:55.040 --> 0:05:58.760 Plus plus Hulu superapp and whether that drives subscriber growth. 0:05:59.000 --> 0:06:02.440 Laura, is the inner story of Disney. What makes Disney 0:06:02.839 --> 0:06:06.000 a technology company if at all it is not. 0:06:06.480 --> 0:06:09.320 It is a content company, and right now content isn't working, 0:06:09.680 --> 0:06:12.240 so it needs to get that fixed. The content is 0:06:12.279 --> 0:06:14.799 the engine. And then what Disney does best in class 0:06:15.160 --> 0:06:20.760 is drive theme park attendance, consumer product attendance, linear TV bundles, streaming, 0:06:21.080 --> 0:06:27.000 subscription revenue. It drives everything off Avatar, Marvel, Star Wars. 0:06:27.080 --> 0:06:30.599 It is a content first company, not a technology company. 0:06:31.440 --> 0:06:34.599 Needham Senior Entertainment and Internet analyst, Laura Martin bringing the 0:06:34.720 --> 0:06:37.600 energy this Thursday morning. Thank you so much for your time. Now, 0:06:37.640 --> 0:06:39.479 coming up from the show, we are going to speak 0:06:39.480 --> 0:06:43.080 to lift. CEO David Risher on the Right Sharing Company's earnings, Carora. 0:06:43.040 --> 0:06:43.479 What you got. 0:06:43.839 --> 0:06:45.720 I'm actually looking at the shares of Instacram. 0:06:45.800 --> 0:06:48.279 Now, remember they reported after the bell it was actually 0:06:48.279 --> 0:06:50.760 better than expected for this current quarter that they were 0:06:51.080 --> 0:06:54.200 really telling us the numbers on. But again they are 0:06:54.279 --> 0:06:56.800 talking about macroeconomic headwinds. They're also talking about pats and 0:06:56.880 --> 0:07:00.320 dialing back of the advertising growth with seeing the real 0:07:00.400 --> 0:07:03.600 driver for them. But ultimately they're talking about the several 0:07:03.800 --> 0:07:06.200 headwinds like the rest of the online industry you're facing. 0:07:06.240 --> 0:07:08.360 And she says, we're still very confident though in then 0:07:08.480 --> 0:07:12.280 long term opportunity of their business, particularly in Look online 0:07:12.320 --> 0:07:13.920 adoption in grocery in general. 0:07:14.200 --> 0:07:16.440 They expect to expand their categygory leadership over time. 0:07:16.520 --> 0:07:20.400 So a very confident Fijisimo, even though the market doesn't 0:07:20.400 --> 0:07:21.920 seem to be buying it right now, are off by 0:07:21.960 --> 0:07:33.600 nine and a half percent. This is BLUEBG technology. It's 0:07:33.680 --> 0:07:35.040 just checking on the shares. The lift a bit of 0:07:35.080 --> 0:07:37.560 volatility today. Actually having been in the red, they're managing 0:07:37.560 --> 0:07:39.720 to push into the green. Is The Right Sharing Company 0:07:39.720 --> 0:07:42.560 reported third called revenue that actually did beat anas estimates, 0:07:42.680 --> 0:07:44.480 but Look it's the outlook once again that people are 0:07:44.520 --> 0:07:46.320 a little bit cautious around. It seemed to be a 0:07:46.320 --> 0:07:48.400 little tepid in terms of the sales outlook for the 0:07:48.440 --> 0:07:50.840 holiday period. A please to welcome to the show now 0:07:50.880 --> 0:07:53.280 lift CEO David Risher. Great to have you here, and 0:07:53.360 --> 0:07:55.720 David just spell out whether or not some of the 0:07:55.760 --> 0:07:58.280 growth that you saw, particularly Halloween being a bit of 0:07:58.280 --> 0:08:01.040 a blowout, if you can continue that and why not 0:08:01.480 --> 0:08:03.920 at the same sort of pace going into the final quarter. 0:08:05.280 --> 0:08:07.000 You know, hey, Carol, it's good to see you. I 0:08:07.040 --> 0:08:09.800 actually think it's going to accelerate, and you never really know, 0:08:09.880 --> 0:08:11.600 but I can tell you for a couple of weeks 0:08:11.720 --> 0:08:14.480 leading up to Halloween this year, we actually saw record 0:08:14.480 --> 0:08:17.840 bookings in our company's history. And what that tells us 0:08:17.960 --> 0:08:20.120 is that people are getting out, people want to be 0:08:20.200 --> 0:08:22.960 connected with each other. So we actually just introduced a 0:08:23.000 --> 0:08:26.040 feature today that for a scheduled ride to the airport, 0:08:26.360 --> 0:08:29.480 if we're not there within ten minutes, we'll actually pay 0:08:29.480 --> 0:08:30.520 you up to one hundred bucks. 0:08:30.560 --> 0:08:32.200 We'll even pay you to take an uber to the airport. 0:08:32.240 --> 0:08:34.600 We really want to reduce stress for the holidays so 0:08:34.640 --> 0:08:36.160 that people can get out and enjoy. 0:08:35.960 --> 0:08:39.880 Themselves one hundred dollars if you don't get your car 0:08:39.920 --> 0:08:43.319 on time, even if you then take a taxi or 0:08:43.360 --> 0:08:45.560 an uber. I mean, how much can you really pay 0:08:45.600 --> 0:08:48.800 on incentives to make sure that people become addicted to 0:08:48.880 --> 0:08:50.679 your product rather than the key competition. 0:08:51.720 --> 0:08:53.439 Well, I mean the truth is, we don't want to 0:08:53.480 --> 0:08:55.680 pay a dime, right because we want to have a 0:08:55.720 --> 0:08:57.160 reliable product, and we do. 0:08:57.200 --> 0:08:58.040 We focus so. 0:08:58.000 --> 0:09:00.480 Much energy on making sure that if you try to 0:09:00.520 --> 0:09:03.640 get a scheduled ride to the airport, it's going to 0:09:03.640 --> 0:09:05.640 show up a couple of minutes early, it's going to 0:09:05.679 --> 0:09:08.080 wait for you, It'll help you with your luggage if 0:09:08.120 --> 0:09:09.880 you need to. You know, that's what our drivers do 0:09:10.000 --> 0:09:12.199 so well. So you know, our goal isn't to pay 0:09:12.200 --> 0:09:14.199 out incentives. Our goal is to get you to the airport. 0:09:14.240 --> 0:09:17.240 But if for whatever reason, traffic jam or whatever things 0:09:17.280 --> 0:09:19.280 get backed up, you know we'll get you there anyway, 0:09:19.320 --> 0:09:20.440 even if you have to take an uber. 0:09:20.840 --> 0:09:22.840 David, I think we kind of learned quite a lot 0:09:22.880 --> 0:09:25.679 about Lyft last night, the new data on gross bookings 0:09:25.679 --> 0:09:28.800 and on ridership. But that really got me thinking about 0:09:28.800 --> 0:09:31.720 your cost base and the take rate, and I know 0:09:31.800 --> 0:09:35.280 that's kind of old fashioned finance speech. But you have 0:09:35.440 --> 0:09:39.679 had to incentivize heavily and supply hasn't grown. So I 0:09:39.840 --> 0:09:43.280 just interested on how long that dynamic can continue. 0:09:43.559 --> 0:09:46.720 Yeah, so you know, when we think about you know, supply, 0:09:46.880 --> 0:09:49.400 that really means how many drivers we have on the platform. 0:09:49.559 --> 0:09:52.720 Our drivers are actually up forty five percent year on year, 0:09:53.160 --> 0:09:55.240 And the truth is it's actually not been a very 0:09:55.280 --> 0:09:58.240 expensive proposition for us. The incentives that you're referring to 0:09:58.600 --> 0:10:01.040 were really important during cod but of course people really 0:10:01.040 --> 0:10:04.520 didn't want to drive, as you know during COVID. But 0:10:04.840 --> 0:10:07.280 now we actually find so many drivers are coming back 0:10:07.320 --> 0:10:09.720 because it's a flexible job they can do on their 0:10:09.760 --> 0:10:11.800 own terms. They can drive when they want to and 0:10:11.800 --> 0:10:14.160 then they can stop anytime they want to. So, you know, 0:10:14.559 --> 0:10:16.800 it hasn't actually been a big problem for us, and 0:10:16.880 --> 0:10:18.560 something that we think over time is going to be, 0:10:18.720 --> 0:10:20.920 you know, even easier to do is attract more drivers. 0:10:21.559 --> 0:10:24.640 So if for twenty twenty four calendar year, what's your 0:10:24.760 --> 0:10:27.000 kind of reset goal for your company? You know, you're 0:10:27.040 --> 0:10:30.719 a relatively new CEO, You've galvanized the workforce. You know, 0:10:30.760 --> 0:10:32.480 I hear from a lot of sources that there is 0:10:32.520 --> 0:10:35.160 a good energy within the company, but you kind of 0:10:35.160 --> 0:10:36.319 have a lot of work still to do. 0:10:38.120 --> 0:10:41.640 Customer obsession. Customer obsession, you know, Customer obsession is what 0:10:41.840 --> 0:10:46.240 drives profitable growth. That's our whole thesis. And the better 0:10:46.280 --> 0:10:48.400 we can focus on our riders, the better we can 0:10:48.400 --> 0:10:50.840 focus on our drivers, you know, the more we'll grow. 0:10:50.960 --> 0:10:53.600 And we've seen this with for example, women plus Connect, 0:10:53.640 --> 0:10:56.640 which we've just launched in September, that allows women drivers 0:10:56.640 --> 0:10:58.400 and riders to request to arrive. 0:10:58.280 --> 0:10:58.800 With each other. 0:10:59.120 --> 0:11:00.400 People love that feature. 0:11:00.559 --> 0:11:02.800 Drivers love it because they can drive and feel comfortable 0:11:02.800 --> 0:11:05.440 with women drivers and riders for exactly the same reason. 0:11:05.520 --> 0:11:07.760 So these are the sorts of initiatives that are so 0:11:08.040 --> 0:11:11.040 customer focused, you know, focusing on of course fifty percent 0:11:11.040 --> 0:11:14.760 of the population, the women population that can really continue 0:11:14.800 --> 0:11:18.800 to drive, you know, satisfaction and therefore use of driving 0:11:18.800 --> 0:11:19.960 with Lyft and riding with left. 0:11:20.520 --> 0:11:23.520 David, I'm an obsessed customer when it comes to my bike, 0:11:24.200 --> 0:11:29.160 and I could send daily messages about docs not quite working. 0:11:28.840 --> 0:11:30.000 And I can imagine that. 0:11:30.040 --> 0:11:33.040 It's a really hard infrastructure to try and create a 0:11:33.080 --> 0:11:35.520 perfect scenario for every rider at the moment, particularly in 0:11:35.520 --> 0:11:38.520 New York City, for example, are you thinking of partnerships 0:11:38.520 --> 0:11:40.280 when it comes to the bikes, are you thinking of 0:11:40.360 --> 0:11:42.360 divesting in that particular part of the business. 0:11:43.120 --> 0:11:44.880 Yeah, so, I mean I love the fact that you're 0:11:44.920 --> 0:11:45.600 a big cyclist. 0:11:45.679 --> 0:11:46.400 I know that you are. 0:11:46.520 --> 0:11:48.000 And by the way, you're not alone. 0:11:48.040 --> 0:11:50.760 In New York City, we typically provide about one hundred 0:11:50.760 --> 0:11:53.600 and sixty thousand rides a day, right, I mean that's 0:11:53.640 --> 0:11:56.040 as big as a lot of public transit systems are. 0:11:56.240 --> 0:11:58.600 So it's a really significant thing for a lot of 0:11:58.600 --> 0:11:59.199 our riders. 0:11:59.400 --> 0:12:00.760 And as you say, hey, it. 0:12:00.800 --> 0:12:03.760 Is, you know, sort of a complicated business. We're actually 0:12:03.800 --> 0:12:05.360 putting in new docks in New York. I don't know 0:12:05.400 --> 0:12:07.920 if you've seen them yet. They're easier to dock. They 0:12:07.920 --> 0:12:09.920 actually charge up the electric bikes, which are a huge 0:12:09.920 --> 0:12:12.199 source of growth. But anyway to your question of. 0:12:12.160 --> 0:12:13.640 Are we looking to partner, we are. 0:12:13.760 --> 0:12:16.520 We're looking to partner with organizations that can really continue 0:12:16.559 --> 0:12:19.360 to invest in the infrastructure that's needed so that e 0:12:19.480 --> 0:12:21.400 bikes can be even more popular or tomorrow than. 0:12:21.320 --> 0:12:21.880 They are today. 0:12:23.360 --> 0:12:25.400 David, I'm sorry, I want to go back to the 0:12:25.400 --> 0:12:28.640 supply issue because I'm reading the cell side reaction and 0:12:28.679 --> 0:12:31.160 even women plus Connect, you know, I see that as 0:12:31.200 --> 0:12:34.000 kind of a driver for rider shit. But I wonder 0:12:34.040 --> 0:12:37.640 if that initiative has also brought more women drivers to 0:12:37.720 --> 0:12:40.320 your platform and made you more competitive on the supply 0:12:40.440 --> 0:12:41.199 side too. 0:12:41.840 --> 0:12:44.200 It sure has, and it's such a good point because look, 0:12:44.440 --> 0:12:47.120 only twenty three percent of our drivers are women today, 0:12:47.320 --> 0:12:50.480 and by the way, they only drive fifteen percent of hours. 0:12:50.760 --> 0:12:51.680 So what does that tell you? 0:12:51.679 --> 0:12:54.000 Even though it's a great job, right because it's flexible, 0:12:54.040 --> 0:12:55.400 you can log in when you want to, you can 0:12:55.440 --> 0:12:57.120 log off, you can pick your kids up from school, 0:12:57.160 --> 0:12:58.600 you can go to your other job, whatever it is 0:12:58.640 --> 0:13:01.840 you want to do. That tells us is we need 0:13:01.880 --> 0:13:05.200 to continue to invest in bringing more women drivers onto 0:13:05.240 --> 0:13:08.880 our platform, which increases the overall driver's supply. To your point, 0:13:09.080 --> 0:13:11.560 and that's what we see happening. We're now available in 0:13:11.600 --> 0:13:14.480 fifty markets across the United States, excuse me, fifty five 0:13:14.600 --> 0:13:16.319 across the United States, and. 0:13:16.280 --> 0:13:17.520 It's super successful. 0:13:17.520 --> 0:13:21.040 So it's a great example of a customer obsessed initiative 0:13:21.280 --> 0:13:24.720 that benefits both drivers and riders and ultimately makes it 0:13:24.760 --> 0:13:27.320 more appealing for everybody, which then, of course drives growth, 0:13:27.360 --> 0:13:28.600 which drives profitability. 0:13:28.840 --> 0:13:31.079 That's how you build a great business. David, we ask 0:13:31.160 --> 0:13:33.240 you once again. I think now for the third time. 0:13:33.960 --> 0:13:36.280 Are you opened still at this point to a sale 0:13:36.440 --> 0:13:37.319 or being acquired. 0:13:39.320 --> 0:13:41.199 I love the consistency of the question. I'll give you 0:13:41.200 --> 0:13:44.560 a consistent answer. You know, we will always answer the phone, 0:13:44.640 --> 0:13:45.960 you know, that's part of the job. 0:13:45.800 --> 0:13:46.840 But it's not our focus. 0:13:46.880 --> 0:13:49.280 Our focus is on customers and are just obsessing over 0:13:49.320 --> 0:13:51.280 them so that they can get you know, home for 0:13:51.320 --> 0:13:53.440 the holidays, they can get to Thanksgiving stress free. 0:13:53.440 --> 0:13:54.360 That's really the focus. 0:13:54.520 --> 0:13:56.800 Licia daved Rish a greats catch up. Thank you for 0:13:56.840 --> 0:14:06.680 joining us from San Francisco. We appreciate it. A firm 0:14:06.720 --> 0:14:08.840 Sharre is absolutely surging today after the buy and now 0:14:08.920 --> 0:14:12.400 pay Lata company posted fiscal first quarter revenue and forecasts. 0:14:12.840 --> 0:14:15.160 The top testamers joining us now is a firm CEO 0:14:15.200 --> 0:14:18.199 Max left Chin and book who's here our INCHINALI best 0:14:18.200 --> 0:14:18.640 to take it away? 0:14:19.040 --> 0:14:21.080 Thanks Ed, and thank you Max for joining us. Of course, 0:14:21.120 --> 0:14:24.640 the market is reacting to the numbers, the revenue doing 0:14:24.880 --> 0:14:27.880 much better than expected. But there's a point that I 0:14:27.880 --> 0:14:30.040 want to touch on here first, and it's this idea 0:14:30.080 --> 0:14:32.760 of credit quality. Because even though you've seen a little 0:14:32.800 --> 0:14:36.080 bit of a deterioration quarter over quarter, it improved quite 0:14:36.080 --> 0:14:39.160 meaningfully from a year ago. Is that sustainable? 0:14:41.240 --> 0:14:45.080 I will point out that even the deterioration, as you 0:14:45.160 --> 0:14:48.760 put it, was something that we had predicted and deliberally 0:14:48.760 --> 0:14:51.080 communicated to the market to the quarter ago, or we said, look, 0:14:51.120 --> 0:14:51.960 we expect. 0:14:51.640 --> 0:14:55.359 A slight increase through the summer entirely see Denale. 0:14:55.080 --> 0:14:57.520 You're related, and it will normalize right after and that'll 0:14:57.520 --> 0:14:58.520 be exactly what we saw. 0:14:58.760 --> 0:15:02.760 So all of this means is we are in control 0:15:02.880 --> 0:15:03.520 of the credit. 0:15:03.400 --> 0:15:07.000 Outcomes of the loans we make, and it is in 0:15:07.040 --> 0:15:09.840 contrast to the rest of the industry. Anywhere you look, 0:15:09.880 --> 0:15:14.520 you see delinquencies creeping up and both struggling to maintain 0:15:14.880 --> 0:15:17.000 a sort of a quality credit performance. Well, we have 0:15:17.040 --> 0:15:19.680 been able to distinguish ourselves. It's not an accident and 0:15:19.720 --> 0:15:23.920 it's not a secret may behind. It's the structural advantage 0:15:23.960 --> 0:15:27.440 that we have. We write very short term transactions four 0:15:27.440 --> 0:15:28.400 and a half months. 0:15:28.520 --> 0:15:30.240 It's the way to add life below. 0:15:30.360 --> 0:15:34.800 And every transaction is individually underwritten, which means that we 0:15:34.880 --> 0:15:37.640 have an incredible degree of control over what we actually 0:15:37.680 --> 0:15:38.360 put into our book. 0:15:38.960 --> 0:15:39.200 Max. 0:15:39.200 --> 0:15:40.920 The other thing that you've been talking about more at 0:15:40.960 --> 0:15:44.200 a firm, you're a traditional buy now, pay later pioneer. 0:15:44.480 --> 0:15:47.800 But you now have the affirm card. How much does 0:15:47.800 --> 0:15:50.280 that compete with the buy now, pay later model. 0:15:52.280 --> 0:15:56.560 It's actually perfectly complementary to it. It's to me, I'm 0:15:56.600 --> 0:15:59.320 heavily biased. It's sort of my baby, but it is 0:15:59.400 --> 0:16:02.240 the for the moment at least, the key of achievement 0:16:02.320 --> 0:16:03.200 of binoculator. 0:16:03.320 --> 0:16:06.840 It's binoculator on your debit card that works. 0:16:06.600 --> 0:16:10.960 Both online and offline, entirely control into your hands. You 0:16:11.080 --> 0:16:13.640 decide it's going to be a transaction which just settles 0:16:13.640 --> 0:16:16.960 against your cash baland or becomes the bino biliad alone, 0:16:17.120 --> 0:16:21.160 as always were affirmed, entirely transparent, no lead these milk 0:16:21.200 --> 0:16:25.600 compounding interests, no gimmick key flocking schemes to contend with. 0:16:26.120 --> 0:16:29.120 It's the perfect embodiment of what we've been working on 0:16:29.160 --> 0:16:31.800 for a decade. And more so, it's just compliments and 0:16:31.840 --> 0:16:34.360 everything we've done. And we have incredible road amount of 0:16:34.360 --> 0:16:36.200 plans for their part it. We'll talk a lot about 0:16:36.240 --> 0:16:38.560 it next week in our Industrial Form event, but we 0:16:38.640 --> 0:16:40.800 have years and years to build into this thing. 0:16:40.920 --> 0:16:41.200 Max. 0:16:41.240 --> 0:16:44.000 We said here, Hi, we got Adobe analytics data this 0:16:44.080 --> 0:16:46.640 morning that showed October was a record in the US 0:16:46.720 --> 0:16:49.880 frontline spending, and the MPL was a big sort of 0:16:50.040 --> 0:16:52.720 contributing factor to that. I know you've talked about the 0:16:52.720 --> 0:16:56.640 Amazon relationship, and you just mentioned next week that what 0:16:56.680 --> 0:16:59.760 other modalities do you see by now pay later kind 0:16:59.760 --> 0:17:01.800 of growing into going forward. 0:17:03.240 --> 0:17:06.560 I think there's quite a lot more growth to cover. 0:17:06.760 --> 0:17:11.120 I think the secular shift, especially among the young consumers. 0:17:11.160 --> 0:17:14.879 We're about two thirds millennial and gen Z on our 0:17:14.920 --> 0:17:19.479 consumer base, they ask for more transparency, they want easier 0:17:19.520 --> 0:17:22.040 way to understand what it is they're going to own 0:17:22.240 --> 0:17:23.760 when they're going to be out of death and so 0:17:24.080 --> 0:17:27.720 to set pulled alone creates ample. 0:17:27.400 --> 0:17:30.400 Opportunity for company like ours to grow. 0:17:30.920 --> 0:17:35.280 We think there'll be incredible growth in offline with buyout, 0:17:35.320 --> 0:17:37.960 realiter in brink and mortar on our card, but also 0:17:38.240 --> 0:17:41.520 from our app directly. We think there are opportunities in 0:17:41.640 --> 0:17:44.440 small business lending. You've heard our announcement last week we're 0:17:44.480 --> 0:17:46.920 going into solve Props and we think there are many 0:17:47.080 --> 0:17:49.080 many small businesses we get help there. 0:17:49.640 --> 0:17:50.800 So there's just lots of. 0:17:50.840 --> 0:17:55.280 Places where this idea of honest financial products makes a 0:17:55.320 --> 0:17:55.880 lot of sense. 0:17:56.040 --> 0:17:59.360 And the consumer and consumer of this product is just longer. 0:17:59.160 --> 0:18:02.360 To work uwidstanding actually calling out how you're really communicating 0:18:02.440 --> 0:18:06.680 more clearly about the customer journey, how you can think 0:18:06.720 --> 0:18:11.120 about purchase capacity, communicate with us about your investment capacity 0:18:11.240 --> 0:18:12.959 right now? How much do you want to be investing 0:18:13.000 --> 0:18:15.440 in the business when we do have perhaps calls that 0:18:15.520 --> 0:18:17.960 an economy is going to turn, when we are thinking 0:18:18.000 --> 0:18:19.800 about how much we need to outperform in terms of 0:18:19.840 --> 0:18:22.280 the world of AI, where do you lean in on? 0:18:24.400 --> 0:18:28.200 You know, we're fundamentally a software development company. You know, 0:18:28.359 --> 0:18:31.920 everything we do we do in house and write a 0:18:31.960 --> 0:18:34.800 lot of code. The results of this quarter or speak themselves, 0:18:34.840 --> 0:18:38.320 but they're fundamentally just the sign up how well we've 0:18:38.320 --> 0:18:42.440 been executing primarily in building great software and delivery partners. 0:18:42.840 --> 0:18:45.600