WEBVTT - Lyft Earnings and Bret Taylor's New AI Product 0:00:01.520 --> 0:00:05.200 From Marhart where Innovation of Money and Power Collie in 0:00:05.320 --> 0:00:06.800 Silicon Valley, NBN. 0:00:07.120 --> 0:00:11.160 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.640 --> 0:00:27.080 I'm Caroline Heinde at Bloomberg's worldad quarters in New York, 0:00:27.440 --> 0:00:29.320 Alaned Ludlow in San Francisco. 0:00:29.560 --> 0:00:31.600 This Bloomberg Technology coming up. 0:00:31.640 --> 0:00:34.600 We sit down with the CEO of Lift to run 0:00:34.640 --> 0:00:38.000 through the company's results. Break down that all important clerical 0:00:38.159 --> 0:00:40.560 error that led to at one point a sixty seven 0:00:40.560 --> 0:00:42.040 percent surge in its shares. 0:00:42.840 --> 0:00:43.120 Class. 0:00:43.159 --> 0:00:46.479 Will be joined by Open Ai chair and former Salesforce 0:00:46.479 --> 0:00:49.199 CEO Brett Taylor as he raises one hundred and ten 0:00:49.240 --> 0:00:53.000 million dollars to bring AI agents to business. 0:00:53.120 --> 0:00:57.040 And fighting talk from Mark Zuckerberg as he personally reviews 0:00:57.080 --> 0:00:58.120 Apple's Vision. 0:00:57.880 --> 0:01:00.600 Pro whereas takeaways not good. 0:01:00.880 --> 0:01:03.520 We'll discuss that and so much more throughout this hour, 0:01:03.840 --> 0:01:06.720 but first let's check in on these markets. Uber giving 0:01:06.760 --> 0:01:08.640 money back to the investor base. Remember they had a 0:01:08.640 --> 0:01:10.960 really strong quarter, they posted it last week, and then 0:01:11.000 --> 0:01:14.319 today after an investor meeting, they're giving us a share buyback. 0:01:14.440 --> 0:01:17.319 We're driving that stock up almost twelve percent on the 0:01:17.319 --> 0:01:19.920 back of that, as they managed to be bringing profitability 0:01:20.080 --> 0:01:22.520 and therefore capital back to the investor base. Let's have 0:01:22.560 --> 0:01:25.039 a look at what's happening though with the rival Lift. 0:01:25.520 --> 0:01:29.720 I mean, what an extraordinary day we had yesterday earning's 0:01:29.760 --> 0:01:33.560 posted but an extra zero crept into the margin forecast 0:01:33.600 --> 0:01:36.920 five hundred bits. That was clerical error, they called it. 0:01:37.120 --> 0:01:39.880 We rose up to sixty seven percent in after ours trading. 0:01:39.880 --> 0:01:41.920 We then sunk back down. Now we are still trading 0:01:42.000 --> 0:01:44.880 higher on Lift for that five hundred margin becomes a 0:01:44.920 --> 0:01:47.920 fifty margin. Overall, we've got to dig into the growth 0:01:47.960 --> 0:01:50.200 of this business and actually how they're giving back to 0:01:50.240 --> 0:01:53.400 the consumer. A key conversation that we're about to have now. 0:01:54.920 --> 0:01:58.360 Welcome to our TV and radio audiences worldwide. Joining us 0:01:58.400 --> 0:02:02.400 now on the company's fourth quarter is Lift CEO David 0:02:02.440 --> 0:02:04.840 Risher and David a clerical error? 0:02:05.560 --> 0:02:06.240 What happened? 0:02:06.800 --> 0:02:08.760 Well, look, first of all, it's on me. There are 0:02:08.760 --> 0:02:10.320 a lot of eyes on this press release. But at 0:02:10.320 --> 0:02:12.520 the end of the day, my bad. But look, I 0:02:12.520 --> 0:02:15.480 don't want it to take anything away from the butt 0:02:15.760 --> 0:02:19.280 kicking performance that the business did thanks to all of 0:02:19.280 --> 0:02:21.880 our employees and thanks to millions of drivers. I mean, look, 0:02:21.880 --> 0:02:25.960 we had our financially strongest quota we've ever had, and 0:02:26.000 --> 0:02:26.920 I'm super excited about. 0:02:28.440 --> 0:02:33.680 To be clear, this was simply a mistake, human error. 0:02:34.560 --> 0:02:37.239 The stock rose as much as six seven percent in 0:02:37.280 --> 0:02:40.720 after hours. As Caroline pointed out, it's significantly hard this morning, 0:02:40.919 --> 0:02:42.800 and we can talk about the performance in the quarter 0:02:42.880 --> 0:02:45.960 gone and the performance in the current period. This may 0:02:46.040 --> 0:02:48.200 sound bizarre to you, but I think it's a real question. 0:02:48.760 --> 0:02:52.440 Did you guys use AI to write that press release seriously? 0:02:52.880 --> 0:02:55.120 Or is this as simple as you are? Calling it 0:02:55.160 --> 0:02:56.000 a clerical error? 0:02:56.000 --> 0:02:57.079 Now it was a clerical error. 0:02:57.200 --> 0:02:59.240 Yeah, Now we're not at the point where press releases 0:02:59.240 --> 0:03:01.919 can be written by at least not financial pressure releases. 0:03:02.000 --> 0:03:02.280 No way. 0:03:03.200 --> 0:03:07.799 I hate to ask it because real people's jobs are 0:03:07.840 --> 0:03:09.799 now on the line, I'm sure, David, and I want 0:03:09.800 --> 0:03:12.600 to ask, is a cfo's role safe? Is this going 0:03:12.680 --> 0:03:17.120 to have repercussions from across your membership and employee. 0:03:16.560 --> 0:03:20.960 Base the cfo's or is one hundred percent safe? One 0:03:21.040 --> 0:03:23.280 hundred percent safe? Look, she and the team are taking 0:03:23.280 --> 0:03:26.520 this incredibly seriously, and you have to understand. I mean, 0:03:26.560 --> 0:03:29.240 we go through hours and hours of checking and double 0:03:29.320 --> 0:03:33.160 checking before something like this goes. It's an unacceptable error. Again, Ultimately, 0:03:33.160 --> 0:03:34.640 it's on me. I'm the CEO. 0:03:34.920 --> 0:03:37.400 Buck stops with me, but the team is taking it. 0:03:37.400 --> 0:03:40.560 Super seriously, and I know that you want to be 0:03:40.640 --> 0:03:44.080 talking ultimately about how you're seeing growth in the business. 0:03:44.120 --> 0:03:46.640 And I'm sure that that's something that in a way, 0:03:46.800 --> 0:03:48.680 the salt in the wound is even greater because you 0:03:48.680 --> 0:03:50.560 had a great story to tell and it got marred 0:03:50.640 --> 0:03:52.680 by this particular error. But people are going back and 0:03:52.680 --> 0:03:54.400 saying that you've never seen anything like. 0:03:54.360 --> 0:03:55.400 This in history. 0:03:55.480 --> 0:03:58.800 David, what would you do differently in the next stannings? 0:03:58.840 --> 0:04:01.440 How can you make sure that it investors feel confident 0:04:01.520 --> 0:04:03.880 in the statements that you put out to them in 0:04:03.920 --> 0:04:05.200 the foreseeable future. 0:04:06.200 --> 0:04:08.200 Yeah, I mean, look, I would look at our record 0:04:08.320 --> 0:04:10.520 and look at the growth, look at the fundamentals of 0:04:10.520 --> 0:04:13.040 the financials. And to be very clear, this was it 0:04:13.160 --> 0:04:15.520 was a bad error, but it was one zero in 0:04:15.560 --> 0:04:18.760 a press release and you know a lot of other pages, 0:04:19.120 --> 0:04:21.479 and of course we corrected it within seconds of finding it. 0:04:21.600 --> 0:04:23.920 So I think, you know, like with any mistake, I 0:04:23.960 --> 0:04:26.280 think it's not so much about the mistake itself, it's 0:04:26.279 --> 0:04:28.520 also about how you correct for it. And we've corrected 0:04:28.520 --> 0:04:30.919 for it obviously in the moment putting out new materials, 0:04:30.960 --> 0:04:34.160 but also doing a really deep process type including having 0:04:34.160 --> 0:04:36.560 our own internal ardit team, a separate team look and 0:04:36.600 --> 0:04:38.120 figure out how we can make sure we never make 0:04:38.160 --> 0:04:38.760 a mistake. 0:04:38.560 --> 0:04:39.080 Like this again. 0:04:39.240 --> 0:04:42.120 Okay, if you're listening on Bloomberg Television and radio worldwide, 0:04:42.160 --> 0:04:44.599 we're joined by the CEO of Lift, David Risher, and 0:04:44.880 --> 0:04:47.200 I go back to the current stock performance. You are 0:04:47.240 --> 0:04:50.160 still up thirty two percent in the session, and there 0:04:50.160 --> 0:04:52.560 are so many stories within that, but I zero in 0:04:52.600 --> 0:04:55.160 on the gross booking outlook strong. 0:04:55.360 --> 0:04:58.600 Yeah, what is the story there? For me? 0:04:58.720 --> 0:05:01.200 I'm trying to make sense of the gig economy more broadly, 0:05:01.520 --> 0:05:04.200 on both the demand and supply side. But if you 0:05:04.240 --> 0:05:06.599 look at the consumer, you look at corporates spending, you 0:05:06.600 --> 0:05:09.479 guys are adding to this narrative that things are quite 0:05:09.560 --> 0:05:10.400 rosy out there. 0:05:11.040 --> 0:05:13.560 And when does that stop? How long does it last? 0:05:14.160 --> 0:05:15.880 Well, look, I don't know when it stops. That's the 0:05:15.880 --> 0:05:17.720 shricky thing to predict. But here's what I can tell you. 0:05:18.240 --> 0:05:21.640 We've had now four quarters of growth, increasing growth, and 0:05:21.680 --> 0:05:24.039 we had our biggest growth year last year of our 0:05:24.080 --> 0:05:27.080 company's history. And by the way, we're talking about billions 0:05:27.080 --> 0:05:29.040 of dollars, by the way, billions of dollars that end 0:05:29.120 --> 0:05:31.520 up going in drivers pockets. So you can see this 0:05:31.560 --> 0:05:33.880 is a really important part of the economy because it's 0:05:33.880 --> 0:05:35.560 a really important part of people's lives. 0:05:35.720 --> 0:05:37.320 When people take the seven. 0:05:37.080 --> 0:05:39.840 Hundred million trips they took last year on lift, they're 0:05:39.880 --> 0:05:42.119 going to see their parents, they're going to a tailor 0:05:42.160 --> 0:05:44.680 swift concert, they're going to work every day, they're coming 0:05:44.720 --> 0:05:46.600 home from work, they're going to see their doctor. 0:05:46.880 --> 0:05:48.760 This is an important part of people's lives. 0:05:48.880 --> 0:05:51.520 And then when drivers are driving, they're earning to save 0:05:51.600 --> 0:05:53.760 for a house, they're earned to save for tuition. They're 0:05:53.760 --> 0:05:56.560 earning because maybe they lost a W two job and 0:05:56.680 --> 0:05:58.480 they're three weeks away from picking up a new job 0:05:58.520 --> 0:06:00.719 and they need something to bridge them. So it doesn't 0:06:00.760 --> 0:06:04.200 surprise me that the gig economy is becoming increasingly es 0:06:04.240 --> 0:06:07.239 central part of people's lives and people's economic lives. 0:06:07.640 --> 0:06:12.159 Your bigger competitor, Uber succeeded by adding new products to 0:06:12.240 --> 0:06:17.040 the app, diversifying even within ride hailing, and it proved 0:06:17.080 --> 0:06:20.880 that its algorithm is working in matching riders with efficient 0:06:20.960 --> 0:06:24.120 routes and drivers. Do you feel that you're going to 0:06:24.160 --> 0:06:25.839 be competitive in those domains. 0:06:26.240 --> 0:06:26.560 I do. 0:06:26.760 --> 0:06:27.000 I do. 0:06:27.200 --> 0:06:29.200 Look, our focus is a huge strength. We are one 0:06:29.320 --> 0:06:32.080 hundred percent focused on ride share. You know, just yesterday 0:06:32.120 --> 0:06:34.720 we launched women plus Connect that allows a woman rider 0:06:34.760 --> 0:06:37.560 to pick a woman driver all across the United States 0:06:37.600 --> 0:06:40.120 two hundred and seventy markets. It's been a huge success 0:06:40.160 --> 0:06:42.080 over the first six months when we've been kind of 0:06:42.080 --> 0:06:45.000 trialing it. We launched a new driver standard that allows 0:06:45.080 --> 0:06:48.000 drivers to get a guarantee that they'll never earn less 0:06:48.000 --> 0:06:51.280 than seventy percent of what rider pays them after us 0:06:51.279 --> 0:06:53.200 some fees. So, you know, this is the sort of 0:06:53.240 --> 0:06:55.760 innovation that we can do because we're focused on ride share. 0:06:55.839 --> 0:06:57.960 And look, I expect Uber to do pretty well. I 0:06:57.960 --> 0:06:59.400 think we'll do pretty well too. I think this is 0:06:59.440 --> 0:07:00.400 a really strong sector. 0:07:01.160 --> 0:07:03.680 I'm going to go back to the drivers, David, because 0:07:03.960 --> 0:07:06.280 what's interesting on this day is there is strike action. 0:07:06.640 --> 0:07:09.680 There is on Valentine's Day, whether you're going to be 0:07:09.680 --> 0:07:11.960 flying to Miami, where they're going to be flying to Chicago, 0:07:12.080 --> 0:07:13.800 there might well be issues trying to get a new 0:07:13.840 --> 0:07:15.880 but or indeed a lift. And also in the UK 0:07:16.000 --> 0:07:19.920 as well, I'm interested as to what's happening when you 0:07:19.960 --> 0:07:23.840 are offering seventy percent guarantee, why still do they want 0:07:23.880 --> 0:07:26.680 to demand more even if you say, look, i'm giving 0:07:26.720 --> 0:07:27.480 you flexibility. 0:07:28.480 --> 0:07:31.760 Yeah, I mean, first on the strike itself, Carolyn, It's 0:07:31.760 --> 0:07:34.040 been in the works for weeks, you know, so it 0:07:34.080 --> 0:07:37.640 predates the announcement of this new seventy percent guarantee. If 0:07:37.680 --> 0:07:40.000 you look at what the drivers are asking for, and 0:07:40.040 --> 0:07:42.400 I think these are reasonable things to bring up. They 0:07:42.440 --> 0:07:45.440 want more transparency on their pay. We've given it to them. 0:07:45.520 --> 0:07:47.880 We give them a very very clear weekly breakdown that says, 0:07:47.880 --> 0:07:49.720 this is how much riders paid you, this is how 0:07:49.800 --> 0:07:51.360 much we took, this is how much you get. 0:07:51.520 --> 0:07:54.040 They've asked for a guarantee right so that they don't, 0:07:54.160 --> 0:07:56.240 you know, so that there's a floor to their earnings. 0:07:56.240 --> 0:07:59.120 We've given them that too. They've asked for better visibility 0:07:59.120 --> 0:08:01.960 and deactivation. You know, if you, as a writer raise 0:08:01.960 --> 0:08:03.760 a complaint about about a driver, we. 0:08:03.720 --> 0:08:06.560 Have a whole process we go through, and drivers, of course. 0:08:06.400 --> 0:08:08.200 Don't want to be off the platform, particular if they 0:08:08.240 --> 0:08:10.840 think it was an unfair accusation. And now we cover 0:08:10.960 --> 0:08:13.360 something like seventy percent of those in less than twenty 0:08:13.400 --> 0:08:15.360 four hours. And there's a new one click button that 0:08:15.400 --> 0:08:18.120 allows drivers to sort of appeal the deactivation. So what 0:08:18.160 --> 0:08:21.000 we're doing is we're focused on drivers because we're obsessed 0:08:21.040 --> 0:08:23.720 over customers. That's kind of our thing, and by doing that, 0:08:23.760 --> 0:08:25.520 we think we can address a lot of their issues 0:08:25.960 --> 0:08:26.600 that they're raising. 0:08:27.000 --> 0:08:29.240 JP Morgan actually completely in line with some of the 0:08:29.240 --> 0:08:31.680 words that you use there. The customer obsession is something 0:08:31.680 --> 0:08:34.280 they point out. The marketplace health is something they see 0:08:34.320 --> 0:08:36.880 to continuing to improve on supply tailwinds. 0:08:36.920 --> 0:08:38.280 So really, drivers are not your. 0:08:38.160 --> 0:08:39.160 Issue in the moment. 0:08:39.160 --> 0:08:43.000 Compared to JP Morgan, another analyst, Opram from Nathan Nathanson, 0:08:43.080 --> 0:08:45.880 those saying ultimately are at the mercy of Uber when 0:08:45.920 --> 0:08:48.840 it comes to pricing power and take rates. Do you 0:08:48.880 --> 0:08:51.000 feel that way that you're in the mercy of Uber 0:08:51.040 --> 0:08:51.560 in some way? 0:08:52.520 --> 0:08:55.760 No, I mean it's a competitive marketplace, so I think, 0:08:55.840 --> 0:08:57.600 you know, to a certain extent there at our mercy, 0:08:57.640 --> 0:08:59.439 like we're at theirs, right, we can't do things that 0:08:59.480 --> 0:09:02.319 are completely different and expect to have, you know, kind 0:09:02.320 --> 0:09:05.680 of reasonable results. But at the same time, you know, 0:09:05.880 --> 0:09:08.520 for example, let's again look at this driver Earn's guarantee. 0:09:08.600 --> 0:09:11.360 That's a that's a commitment we've made. It's a leadership 0:09:11.400 --> 0:09:14.400 move we've made. You know, we'll see whether Uber followers 0:09:14.480 --> 0:09:16.040 or not. But that's an area where I would say 0:09:16.080 --> 0:09:17.439 they're going to want to look pretty closely at what 0:09:17.480 --> 0:09:19.320 we're doing and decide whether they want to follow us. 0:09:19.360 --> 0:09:21.160 But I think it should be honest. I think this 0:09:21.240 --> 0:09:24.320 is a healthy marketplace. It's got two good players in 0:09:24.360 --> 0:09:26.520 a Huber and Left, and we're both doing a good job. 0:09:26.600 --> 0:09:28.480 I like our strategy better because I think we're more 0:09:28.480 --> 0:09:30.400 focused on writers and drivers and I think that's a 0:09:30.440 --> 0:09:31.000 real strength. 0:09:31.200 --> 0:09:33.040 But you know, they're going at a versification thing. We'll 0:09:33.040 --> 0:09:33.880 see if that works from them. 0:09:34.640 --> 0:09:37.080 For our Bloomberg television and radio audience, we're speaking with 0:09:37.120 --> 0:09:39.839 LIFT CEO David Risher. And David as you know, we 0:09:39.880 --> 0:09:41.920 always go to our audience and ask what would you 0:09:42.000 --> 0:09:44.640 want to know from from David Risher? And it's the 0:09:44.640 --> 0:09:48.520 same question every time. Is LIFT and acquisition target? And 0:09:48.840 --> 0:09:52.480 many put people put forward hypotheses about the type of 0:09:52.559 --> 0:09:57.480 business you know, maybe an auto maker, maybe another convenience app. 0:09:57.800 --> 0:09:59.120 But where's your head at with that? 0:09:59.640 --> 0:09:59.959 You call? 0:10:00.040 --> 0:10:01.559 With your earnings performance? 0:10:01.920 --> 0:10:05.800 But kicking yeah, but there are still free cash flow questions. 0:10:05.840 --> 0:10:08.160 There are still scale questions with lift. 0:10:08.440 --> 0:10:09.320 Yeah, well let. 0:10:09.240 --> 0:10:11.000 Me talk about those and then and then get to 0:10:11.000 --> 0:10:11.720 the court of the question. 0:10:12.040 --> 0:10:13.480 Look, we were free cash flow. 0:10:13.400 --> 0:10:15.959 Positor for the second time in our company's history this quarter, 0:10:16.200 --> 0:10:18.319 and we've committed to investors will be free cashul A 0:10:18.400 --> 0:10:20.960 positive for the year of twenty twenty four, so you know, 0:10:21.040 --> 0:10:22.840 and we have one point seven million dollars in the bank. 0:10:22.880 --> 0:10:25.000 So from a cash perspective, from a pretty good shape. 0:10:25.160 --> 0:10:28.200 From demand perspective, we're in good shape, highest demand ever. 0:10:28.400 --> 0:10:30.920 From a supply perspective, we're in good shape, highest drivers 0:10:30.920 --> 0:10:33.360 hours since we've had since twenty nineteen, so you know, 0:10:33.400 --> 0:10:35.800 from a basic core and then again you think about it, 0:10:35.880 --> 0:10:38.400 seven hundred million rides in a year. I mean, think 0:10:38.440 --> 0:10:41.240 about a Delta air Lines that might do a couple thousand, 0:10:41.240 --> 0:10:43.520 maybe three or four thousand takeoff and landings a day, 0:10:43.760 --> 0:10:45.880 whereas we do, let's get two million a day. So 0:10:45.920 --> 0:10:47.720 our scale isn't really an issue for us. We've got 0:10:47.760 --> 0:10:50.560 pretty good scale. Ask the acquisition thing, you know, just 0:10:50.559 --> 0:10:52.160 like people ask the same question, I always give the 0:10:52.160 --> 0:10:52.760 same answer. 0:10:53.760 --> 0:10:55.679 I mean, our phone, you know, will pick up the. 0:10:55.600 --> 0:10:57.319 Phone if someone calls because that's the deal, but it's 0:10:57.320 --> 0:10:57.920 not our focus. 0:10:57.960 --> 0:10:58.640 Our focus is. 0:10:58.559 --> 0:11:03.320 Customers, right Lifts CEO David Risher on set here in 0:11:03.360 --> 0:11:04.040 San Francisco. 0:11:04.200 --> 0:11:05.400 Thank you so much for your time. 0:11:05.600 --> 0:11:06.200 For sure, thanks. 0:11:06.240 --> 0:11:12.480 I enjoyed it, Caroline, such a deep conversation. So thousands 0:11:12.559 --> 0:11:15.400 of US ride haaling workers. They're striking at major US 0:11:15.480 --> 0:11:18.040 airports today, also in the UK. In fact, what are 0:11:18.040 --> 0:11:21.559 they demanding been to pay benefits and in what organizers 0:11:21.600 --> 0:11:25.240 say is their largest strike yet. However, Uber has actually said, look, 0:11:25.320 --> 0:11:28.679 it won't have much impact on Valentine's Day operations. Joining 0:11:28.760 --> 0:11:31.559 us now to dig into the movement of Uber and 0:11:31.640 --> 0:11:34.000 Lyft and more notably, what's happening in the rest of 0:11:34.000 --> 0:11:36.360 the ending space. Bloom Meg's Natalie Lang is here mandep 0:11:36.400 --> 0:11:38.920 Seeing of bloue Meg Intelligence. Natalie, I start with you 0:11:39.280 --> 0:11:43.800 this sort of pressure coming from ultimately the supply side 0:11:43.880 --> 0:11:47.079 and then worry about regulatory changes. Is it something that 0:11:47.559 --> 0:11:49.240 companies and investors should be worried about? 0:11:49.240 --> 0:11:53.440 Still, It's definitely and overhang that analysts have been talking about. 0:11:53.720 --> 0:11:56.480 There's different laws that are coming up this year, such 0:11:56.520 --> 0:12:00.000 as the Supreme Court decision in California over Prop twenty two, 0:12:00.080 --> 0:12:03.920 which guarantee minimum pay for drivers. In Minnesota, people are 0:12:03.920 --> 0:12:08.000 fighting for better pay standards, and so it's definitely something 0:12:08.040 --> 0:12:11.360 that would add costs for the company. But so far, 0:12:11.760 --> 0:12:15.000 whenever regulatory changes have been made, we see the company 0:12:15.200 --> 0:12:19.040 trying to pass that cost, either maybe from the driver side, 0:12:19.240 --> 0:12:22.480 or passing that cost to customers by adding a fee, 0:12:22.559 --> 0:12:25.120 like in New York they added a courier fee after 0:12:25.200 --> 0:12:28.440 a minimum wage was implemented, So in a way, the 0:12:28.480 --> 0:12:30.880 business has a way to sort of mitigate. 0:12:30.480 --> 0:12:35.840 These Mandy, this has been a pretty astonishing week in 0:12:35.880 --> 0:12:39.920 the world of gig economy, in the world of convenience apps. 0:12:40.040 --> 0:12:41.040 Call it what you will. 0:12:41.480 --> 0:12:43.480 I guess let's go back in and zero on the 0:12:44.080 --> 0:12:48.240 Uber investor sweetener. It's an interesting one, but it's built 0:12:48.280 --> 0:12:51.320 on the back of a profitable year, and if you 0:12:51.400 --> 0:12:53.880 take that in aggregate with what David Risher of Lyft 0:12:53.920 --> 0:12:58.160 just told us, the demand side of this economy is 0:12:58.200 --> 0:12:58.880 holding up. 0:13:00.280 --> 0:13:00.439 Yeah. 0:13:00.480 --> 0:13:04.720 I mean, look, I've always felt these companies generate, you know, 0:13:05.120 --> 0:13:08.800 more value than the profitability that they have shown so far, 0:13:09.120 --> 0:13:13.200 and in this case, I think Uber has shown that 0:13:13.440 --> 0:13:16.920 it is working towards this vision of you know, becoming 0:13:16.920 --> 0:13:20.880 a super app where if you're thinking about transportation, you 0:13:20.960 --> 0:13:24.760 go to Uber, whether it's right sharing, delivery, or even taxis. 0:13:24.760 --> 0:13:26.840 I mean, we have come a full circle, you know, 0:13:26.880 --> 0:13:31.199 in terms of disrupting Taxis to having Taxis on Uber's platform. 0:13:31.240 --> 0:13:35.960 And I think scale and operating efficiency is what drives 0:13:35.960 --> 0:13:38.560 a mode in this business, and I think Uber is 0:13:38.640 --> 0:13:39.960 clearly demonstrating that. 0:13:40.880 --> 0:13:42.200 Okay, let's talk about Airbnb. 0:13:42.400 --> 0:13:44.880 The company gives a forecast on sales to the current 0:13:44.920 --> 0:13:47.560 quarter that even at the low end, man deep is 0:13:47.600 --> 0:13:55.920 pretty good and then or sorry, Natalie, and then tells investors, actually, 0:13:55.920 --> 0:13:58.000 things aren't going to be that good, and then tells 0:13:58.000 --> 0:14:01.320 investors We're going to be different company in the future 0:14:01.360 --> 0:14:04.280 that does other things with the parties and AI summarize 0:14:04.320 --> 0:14:05.160 that story for us. 0:14:05.679 --> 0:14:09.199 Right. A lot of this is what Brian Chesky has 0:14:09.240 --> 0:14:12.080 talked about being at an inflection point at the company 0:14:13.000 --> 0:14:16.120 that sort of the post pandemic travel trends, the post 0:14:16.200 --> 0:14:19.280 pandemic boom has sort of faded, and that's kind of 0:14:19.280 --> 0:14:22.120 shown up in the financial performance. Growth isn't as strong 0:14:22.200 --> 0:14:25.720 as coming out of Omicron last year, and at the 0:14:25.720 --> 0:14:29.440 same time they've sort of cleaned up their apps and 0:14:29.560 --> 0:14:33.880 services a bit kind of encouraging more hosts to bring 0:14:33.960 --> 0:14:37.160 down some of the cleaning fees and encouraging more people 0:14:37.160 --> 0:14:39.680 to host, getting more users on the platform to make 0:14:39.720 --> 0:14:42.200 it more reliable. So he feels this is they are 0:14:42.240 --> 0:14:45.360 at an inflection point to be able to expand beyond 0:14:45.600 --> 0:14:50.240 that core hosting service, going back to before the pandemic, 0:14:50.440 --> 0:14:52.000 more ambitious endeavors. 0:14:53.360 --> 0:14:56.840 Okay, bloomberg'st Nasi lung Man Deep seeing of Bloomberg Intelligence, 0:14:56.880 --> 0:14:59.520 great analysis of a big week in the gig economy 0:14:59.560 --> 0:15:01.160 are coming up here on the program. We're going to 0:15:01.160 --> 0:15:05.120 get into Acamai's fourth quarter numbers with their CEO, Tom Layton. 0:15:05.320 --> 0:15:07.040 Caroline more stocks to watch. 0:15:07.480 --> 0:15:10.040 Yeah, Instacart under pressure as we were just looking at 0:15:10.080 --> 0:15:12.320 a moment ago. Now this is as it falls on 0:15:12.360 --> 0:15:12.960 its fourth. 0:15:12.760 --> 0:15:13.600 Quarter revenue miss. 0:15:13.680 --> 0:15:18.160 They're also cutting jobs at the company, restructuring. Heading pretty 0:15:18.240 --> 0:15:20.680 much at a pivotal moment for this particular company. We've 0:15:20.880 --> 0:15:22.920 seen the share price under pressure. As you can see 0:15:22.920 --> 0:15:25.760 over interur day it's almost down some ten percent. Mark 0:15:25.800 --> 0:15:27.760 Kelly of rit steph for example, saying it's a mixed 0:15:27.800 --> 0:15:30.120 fourth quarter results, a miss on the top line, but 0:15:30.320 --> 0:15:32.040 better gross transaction value. 0:15:32.040 --> 0:15:32.960 And a bit dart. 0:15:33.280 --> 0:15:35.760 But this is a company that's once again having to 0:15:35.840 --> 0:15:38.920 belt titan as they cut costs, and that means people 0:15:39.440 --> 0:15:42.240 from New York, from San Francisco. This is Blomberg Technology. 0:15:49.720 --> 0:15:51.280 Let's just take a look at Achami shares at the 0:15:51.280 --> 0:15:54.280 moment under pressure. This is after the company, the infrastructure 0:15:54.320 --> 0:15:57.160 software company reported fourth quarter results and look, it was 0:15:57.320 --> 0:16:00.320 relatively mixed is what the street is interpreting. Maybe a 0:16:00.360 --> 0:16:02.800 little bit cool and then expected an injusted and things 0:16:02.800 --> 0:16:03.200 for share. 0:16:03.640 --> 0:16:06.760 They did indeed beat some expectations. We're going to walk 0:16:06.800 --> 0:16:07.440 through the numbers. 0:16:07.720 --> 0:16:09.640 CEO Tom Naton is with us on piece to say, 0:16:09.640 --> 0:16:12.600 and just getting back to the mixed results. Weakness in 0:16:12.760 --> 0:16:16.280 core content delivery network that part of the business. What 0:16:16.480 --> 0:16:21.960 drove that weakness? Is there going to be some recovery, Tom. 0:16:21.120 --> 0:16:24.800 Yeah, you know, we're the largest content delivery provider by 0:16:24.920 --> 0:16:29.280 far and very important business for us. But today most 0:16:29.320 --> 0:16:33.640 of our revenue is now security performing very well, growing 0:16:33.640 --> 0:16:34.720 in the mid teens. 0:16:35.160 --> 0:16:37.600 And compute, which is a really. 0:16:37.280 --> 0:16:41.680 Exciting area for US, did very well, reached half a 0:16:41.680 --> 0:16:45.720 billion dollars last year with strong growth forecasted for this year. 0:16:46.600 --> 0:16:50.360 So delivery important, great business market leader by far. 0:16:50.760 --> 0:16:52.200 You know, pricing pressure there. 0:16:52.280 --> 0:16:55.400 It's a business we've been in really created twenty five 0:16:55.480 --> 0:16:59.320 years ago, so there is some pricing pressure there. But 0:16:59.440 --> 0:17:03.000 the exciting I think things about Akamai would be the 0:17:03.080 --> 0:17:06.720 security business and the compute business, which is now approaching 0:17:06.720 --> 0:17:08.160 about two thirds of our revenue. 0:17:09.080 --> 0:17:12.359 So the compute business is posting pretty solid top line growth. 0:17:12.359 --> 0:17:15.040 But what are we talking about that on the market 0:17:15.040 --> 0:17:17.879 for compute. Who are the customers you're serving and what 0:17:17.960 --> 0:17:18.800 is it that you offer? 0:17:20.400 --> 0:17:24.080 Yeah, the compute marketplace is enormous, you know today it's 0:17:24.280 --> 0:17:27.400 well north of one hundred billion dollars and growing rapidly. 0:17:28.440 --> 0:17:33.119 And what Akamai is doing is bringing compute support for VMS, 0:17:33.280 --> 0:17:35.640 for containers, for Kubernetes to. 0:17:35.720 --> 0:17:37.879 The edge and really the edge. 0:17:38.520 --> 0:17:38.720 You know. 0:17:38.760 --> 0:17:40.600 Our goal is by the end of this year to 0:17:40.640 --> 0:17:44.520 be supporting compute full stack compute in one hundred cities 0:17:44.520 --> 0:17:48.080 around the world, which nobody else does today, and that 0:17:48.160 --> 0:17:52.560 will give us a better performance, better scalability, and also 0:17:52.640 --> 0:17:56.440 because we can take advantage of our existing delivery platform, 0:17:56.480 --> 0:18:00.560 which is in four thousand locations, better economics so that 0:18:01.040 --> 0:18:04.720 our customers can get better performing compute for their applications 0:18:04.760 --> 0:18:08.920 at a lower price point, and. 0:18:10.600 --> 0:18:15.280 Structurally, Tom, when you look about your business, where are 0:18:15.359 --> 0:18:18.639 you growing the most? Internally, we've talked about this idea 0:18:18.760 --> 0:18:22.520 that companies have had to reduce cost and then reallocate 0:18:22.600 --> 0:18:27.320 either talents or simply dollars because there are different speeds 0:18:27.359 --> 0:18:30.199 happening within their business lines. That's exactly what's happening with you, 0:18:30.680 --> 0:18:32.359 and I wondered how you've responded to that. 0:18:33.840 --> 0:18:36.879 Yes, so we have shifted a lot of the resources 0:18:36.920 --> 0:18:41.800 an investment from the delivery side of the house into 0:18:42.080 --> 0:18:46.560 compute and also security, and so you see that reflected 0:18:46.640 --> 0:18:50.480